Key events that led to government’s decision on aircraft …
1990s — U.S. military begins looking for single next-generation jet fighter design to become mainstay fighter of the future.
1997 — Canada signs on as partner as first phase begins, with U.S. defence giants Lockheed-Martin and Boeing competing to become prime contractor.
2001 — Lockheed-Martin’s design is chosen and designated F-35. Program enters second phase, involving the system development and demonstration work. Treasury Board approves $171 million for Canada’s continued participation.
2002 — Canada officially signs onto F-35 program’s second phase and National Defence assigns a Canadian representative to the Joint Strike Fighter program office in Washington, D.C.
2003 — Technical, costing and manufacturing review leads to first F-35 program adjustment, entailing revised costs and production schedules.
2006 — The F-35 program enters third and most critical phase. National Defence completes preliminary options analysis of five candidate aircraft and recommends to Cabinet that Canada continue its participation in the F-35. Treasury Board approves $192 million (to 2013) for Canada’s continued involvement. National Defence signs onto the third phase in December, stating that it plans to purchase 80 F-35s.
2007 — Second F-35 program adjustment.
2008 — National Defence identifies 14 “high-level mandatory capabilities,” the aircraft meant to replace the current CF-18 fleet must meet, and completes an analysis of three contender replacements. The government releases its Canada First Defence Strategy, which calls for the purchase of 65 “next-generation fighter aircraft.”
2009— DND asks the federal government for permission to buy the F-35, but process is put on hold.
2010 — Public Works gives National Defence permission in June to purchase the F-35 without a competition based on a 160-word letter in which stealth figures prominently. Defence Minister Peter MacKay announces in July that Canada would be purchasing 65 F-35s for $9 billion, plus $7 billion in maintenance and support costs over 20 years.
2011 — Parliamentary Budget Officer Kevin Page releases report predicting F-35 program will cost $30 billion over 30 years. National Defence says price is $14.7 billion. Federal election is triggered two weeks later after Conservative government is found in contempt of Parliament for refusing reveal full costs of programs, including the F-35. Conservatives reelected to majority.
March 2012 — Government suddenly reverses course and says it has not committed to purchasing the F-35.
April 2012 — auditor general Michael Ferguson releases scathing report in April that identifies major problems with the procurement process and finds the full cost to be closer to $25 billion. Government unveils plan to review F-35 program, promising full transparency and consideration of other options. Government also admits it knew full cost was $25 billion before 2011 election.
September 2012 — Government hires auditing firm KPMG to review F-35 costs.
December 2012 — Government receives final KPMG report, which reportedly shows cost of F-35 program topping $30 billion. Reports say Cabinet operations committee has pulled plug on the program, restarting the process to replace Canada’s CF-18 fleet.