Bombardier calls for 'fair competition' as Ottawa eyes solesource contract for surveillance planes

The Quebec-based jet man‐ ufacturer Bombardier is calling on the federal gov‐ ernment to launch a "fair competition" to replace the Royal Canadian Air Force's surveillance planes.

The federal government signalled in March it's consid‐ ering sole-sourcing the con‐ tract to American aviation gi‐ ant Boeing.

Public Services and Pro‐ curement Minister Helena Jaczek told a parliamentary committee this week that while the project is not a done deal, the Department of Na‐ tional Defence has said the Boeing P-8A Poseidon is the only aircraft available that meets its needs.

Bombardier says it wants an open competition that would allow it to compete di‐ rectly with Boeing for the con‐ tract.

'May the best win'

"I have a very specific mes‐ sage for Boeing," JeanChristophe Gallagher, Bom‐ bardier's executive VP for air‐ craft sales and defence, told CBC News.

"They claim they have the best aircraft, so I'm sure they're not afraid to go into competition. So we welcome the competition with Boeing and may the best win."

Sean Liedman, Boeing's di‐ rector of international busi‐ ness development for mobili‐ ty and surveillance aircraft, said a competition seems un‐ necessary because Boeing's plane "is the only aircraft that meets the requirements."

"I'm not sure there's a need for competition," he added.

This isn't the first time the two aerospace companies have butted heads over mar‐ ket share.

Six years ago, Boeing launched a trade challenge against Bombardier with the U.S. Department of Com‐ merce claiming Bom‐ bardier's CSeries jets were heavily subsidized by Ottawa. The department hit Bom‐ bardier with heavy antidumping duties that were lat‐ er overturned by the United States International Trade Commission.

The ensuing battle prompted a frustrated Liberal government to later shelve a plan to sole-source the pur‐ chase of Boeing Super Hornet jet fighters.

Canada made a formal re‐ quest to the U.S. in March for an offer for "up to 16 P-8A Po‐ seidon aircraft and associated equipment and initial serv‐ ings, as well as access to intel‐ lectual and technical data."

Jaczek told a parliamentary committee this week the pro‐ ject is in the "options analysis" stage and the government hasn't committed at this point to purchasing the P-8A Poseidon.

"Having said that, the De‐ partment of Defence has told us that at this point in time the P-8A Poseidon is the only currently available aircraft that meets all of the Canadian multi-mission aircraft opera‐ tional require‐ ments," Jaczek said Mon‐ day. "That's what they're telling us."

CBC News asked Boeing if it was worried about Bom‐ bardier derailing a sole-source contract. Boeing didn't an‐ swer directly, saying instead that Canada has an "opportu‐ nity" to "capitalize on an offthe-shelf airplane."

Boeing flew one of its P-8A Poseidons to Ottawa to put on display this week outside CANSEC, Canada's global de‐ fence and security trade show.

Boeing has delivered 160

P-8A Poseidons to six cus‐ tomers around the world, and those aircraft have logged more than half-a-million flight hours in a decade of service, said Liedman.

"We also think it's an af‐ fordable option for Canada as well," he said. "This is truly a proven, off-the-shelf platform that requires no investment in development."

Bombardier said Boeing's plane comes from a 1970s de‐ sign and argues that its pro‐ posed rival — the Global 6500 — would contain cutting-edge technology.

Bombardier and its part‐ ner General Dynamics threw a press conference at CANSEC this week to unveil a mock-up of that proposed surveillance aircraft and its submarinehunting technology.

"This plane burns 30 per cent less fuel than its closest competitor," said Gallagher. "It flies higher, it flies faster, it stays longer on target."

Bombardier and General Dynamics said their pitch would keep jobs in Cana‐ da. The planes would be large‐ ly built in Toronto and then head to Montreal for final as‐ sembly, said Gallagher.

"If they go and move that work outside of Canada through a sole-source compe‐ tition, some of those jobs will actually disappear. And this work will actually generate thousands of jobs in Canada as a result of it being awarded here and built in Cana‐ da." said Joel Houde, vice president and general manag‐ er of General Dynamics Mis‐ sion Systems-International.

Boeing said its aircraft al‐ so would create spinoff em‐ ployment in Canada because the planes require commer‐ cial services for training and maintenance, along with re‐ pairs that would be beyond the capabilities of air force technicians.

Defence procurement ex‐ pert Dave Perry said there's an "interesting dynamic" at play here.

On one hand, he said, the P-8A Poseidon is "so mature the production line is appar‐ ently close to the end." On the other hand, he said, the military has talked about en‐ hancing its "interoperability" and "interchangeability" with close allies — and several of Canada's key defence part‐ ners, including the U.S. and Australia, use the Posei‐ don.

"If you were to buy the same platform that many of your allies are operating, you would get not just interoper‐ ability and an ability to work closely together, but you would get genuine inter‐ changeability," said Perry, vice president of the Canadian Global Affairs Institute.

Bombardier is proposing to build a plane with sensors and integrated systems it has yet to "fully assemble" togeth‐ er in one of its products, Perry said.

"So there's an interesting juxtaposition between desires for interoperability on one hand and past Canadian eco‐ nomics and industrial strength and focus on the other," Perry said.

The government has said its final decision will be based on price, availability and im‐ pact on Canadian industry.