Warning about sole-source contracts and the 鈥渇allacy鈥� of an urgent need to buy now, Bombardier Inc. said Wednesday (May 31) that Ottawa would be erring if it opts to go with Boeing when it replaces Canada鈥檚 aging military patrol planes.
The Montreal-based business jet maker joined forces this year with U.S. rival General Dynamics on a surveillance aircraft with submarine hunting technology. The plane would be a modified version of the Global 6500 jet, equipped with tech and sensors from General Dynamics Mission Systems Canada 鈥� an Ottawa-based subsidiary of the Virginia defence contractor.
Both partners are calling on the federal government to launch an open procurement process to supplant the Armed Forces鈥� 14 CP-140 Aurora maritime patrol planes, built by Lockheed Martin and set to retire in 2030 after a half-century of service.
The federal government has said it is still weighing its options for the multibillion-dollar contract. But in March it stated that Boeing鈥檚 P-8A Poseidon is 鈥渢he only currently available aircraft that meets all of the CMMA (Canadian Multi-Mission Aircraft) operational requirements鈥� 鈥� particularly around intelligence gathering, surveillance and anti-submarine warfare.
The statement followed a letter of request for an offer on 16 Poseidons, sent via the U.S. government鈥檚 foreign military sales program. That February 2022 ask 鈥渄oes not commit Canada to purchasing the P-8A Poseidon and the project remains in options analysis,鈥� the government said. The final decision will be based on capability and pricing as well as benefits to Canadian industry, it added.
Nonetheless, Bombardier saw the letter and subsequent actions as tantamount to a sole-source bidding process.
鈥淏oeing is saying they have a much better platform. If that鈥檚 really the case, I fully encourage Boeing to tell the Canadian government we should go into competition,鈥� Bombardier Defense executive vice-president Jean-Christophe Gallagher told reporters in Ottawa on Wednesday.
鈥淥ur platform not only burns 30 per cent less fuel; it flies further, faster, higher, it delivers on all of Canada鈥檚 requirements and it does it better than the American aircraft,鈥� he claimed.
The remarks come after Boeing Defense president Ted Colbert told La Presse in an interview Tuesday that the fledgling Bombardier-General Dynamics plane is not in the 鈥渟ame class鈥� as its P-8A Poseidon.
Gallagher swung back the next day with a dose of humour, calling the comment 鈥渇ully correct 鈥� we have a modern aircraft and their aircraft is built out of a 1970s design.鈥� Taking media questions at a defence trade show, he deemed the P-8 an 鈥渆nd-of-the-line aircraft,鈥� while Bombardier spokesman Mark Masluch referred to the 鈥渦ndue urgency鈥� around securing a replacement plane as a 鈥渇allacy.鈥�
Boeing has said it may retire the plane within a couple years if Canada doesn鈥檛 place orders.
At a presentation on the tarmac of the Ottawa airport attended by U.S. ambassador David Cohen, Colbert said Tuesday that Boeing offered an aircraft that is 鈥渁lready available鈥� rather than being 鈥渋n development鈥� 鈥� though Colbert did not mention any companies by name.
Like Bombardier and General Dynamics, Boeing also sought to tout its Canadian bona fides.
The aircraft giant鈥檚 P8-A would sustain more than 2,900 jobs and generate $358 million in economic output in Canada annually, according to a Boeing-commissioned study by management consultants Doyletech Corp.
鈥淚n strong collaboration with our Canadian industry P-8 partners and our extensive supply chain in-country, we appreciate the opportunity to build upon our more than 100-year relationship with Canada and grow our Canadian partnerships and investments,鈥� Colbert said in a statement Tuesday.
The federal government has noted the P-8鈥檚 prevalence among Canadian allies.
鈥淭his platform is a proven capability that is operated by several of Canada鈥檚 defence partners including all of its Five Eyes allies 鈥� the United States, United Kingdom, Australia, New Zealand 鈥� as well as Norway, and South Korea. Germany has also recently purchased this platform,鈥� Public Services and Procurement Canada said in its March 27 statement.
Bombardier and Boeing have clashed before. In 2020, the former sold its remaining stake in the A220 jetliner program, marking the end of its failed bid to take on the commercial aircraft duopoly of Airbus and Boeing.
In 2018, a U.S. trade panel ruled that Boeing suffered no harm due to competition from Bombardier, despite the U.S. plane maker鈥檚 claim that its northern rival sold C Series jets to Delta Air Lines at 鈥渁bsurdly鈥� low prices while enjoying subsidies from the federal and Quebec governments.
The spat was spiralling upward before the decision, with Ottawa threatening to ditch plans to purchase 18 fighter jets from Boeing.
Christopher Reynolds, The Canadian Press
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