Ottawa, Dec. 2 (BNA): Canada on Wednesday excluded Boeing (BA.N) from a multi-billion-dollar race to supply 88 new combat aircraft, and indicated that a previous clash between the American company and a Canadian aircraft maker affected this. resolution.
The move means that only Lockheed Martin Corp (LMT.N) and Sweden’s Saab AB (SAABb.ST) are able to compete. Ottawa says it plans to make a decision next year on a contract that could be worth up to C$19 billion ($14.8 billion).
Reuters reported the decision to ground the Boeing F-18 Super Hornet on November 25, citing a defense source. The official announcement came from the Federal Department of Procurement and did not mention Boeing, Reuters reported.
Boeing said it was “disappointed and deeply concerned” by the announcement. “We are working with the US and Canadian governments to better understand the decision, seek the earliest date to request a debriefing, and then determine our way forward,” she said in a statement.
Defense analysts predicted that Ottawa would rule out Saab’s Gripen aircraft, given that Canada and the United States fly only US military aircraft. Unlike Canada, Sweden is not a member of NATO or NORAD, the North American defense organization.
Saab said in a statement that Gripen passed all aspects of the assessment, including security and interoperability requirements.
Canada belongs to the consortium that developed the Lockheed Martin F-35, which defense sources say is the Air Force’s preferred choice.
The Department of Procurement explained that one reason for the decision was Boeing’s formal complaint in 2017 to the US Department of Commerce that Ottawa was unfairly subsidizing a passenger plane made by Montreal-based Bombardier.
Canada responded by saying that it would appear less favorable to an offer from a company that had a negative economic impact on Canada’s interests.
The procurement ministry said on Wednesday that the proposals were evaluated on the basis of elements of capacity, cost and economic benefits.
“The evaluation also included an economic impact assessment,” she added. A spokesman for Procurement Minister Philomena Tassi declined to comment.
The procurement department said it could now decide which bidder presented the best aircraft, or offer Lockheed Martin and Saab an opportunity to improve their bids.
“As a cornerstone of interoperability with NORAD and NATO, the F-35 will enhance Canada’s operational capability with our allies,” Lockheed Martin said.