Minister told industry upgrades to Aurora aircraft a 'Canadian success story' but cautioned not to tell Boeing

Multiple defence industry sources say they expect the Liberal government to announce the deal with Boeing in the coming week to buy the P-8.

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Published Nov 28, 2023 • Last updated 7 hours ago • 4 minute read

The Canadian government appears ready to do business with Boeing to replace the Canadian Forces CP-140 Aurora, shown above. Photo by Sgt Frank Hudec

Industry Minister François-Philippe Champagne was briefed that high-tech equipment developed for the Canadian Forces Aurora aircraft was world-class and a Canadian innovation success story—but he was cautioned about pointing that out to U.S. aerospace giant Boeing, according to newly released documents.

The information gathered for Champagne about the surveillance and anti-submarine warfare equipment developed by Ottawa-based General Dynamics Mission Systems and other domestic firms, meanwhile, runs counter to the claims being made by top National Defence bureaucrats and officers.

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Bill Matthews, deputy minister at National Defence, told MPs on the House of Commons Standing Committee on Government Operations on Oct. 17 that the CP-140 Aurora was “losing relevance rather quickly.” Matthews was making the pitch for the immediate purchase of Boeing P-8 aircraft, which defence officials claim is the only plane that can meet their requirements in replacing the CP-140. The potential purchase of the 16 Boeing planes, to be built in Seattle, as well as associated equipment is worth around $7.8 billion. The overall project cost is expected to be closer to $9 billion.

But Canadian firms calling on the Liberal government to reject the sole-source deal to Boeing—and allow a competition—recently pointed out Matthews failed to mention the Canadian Forces is in the midst of spending $400 million to modernize the Aurora into a state-of-the-art surveillance aircraft. Those 14 planes will be delivered by next summer as part of what is known as the Aurora Block IV upgrade. That modernization program includes installation of a system that will make them interoperable with the US and other NATO nations. The upgrades include new air defence systems and sensors, making the Auroras among the most advanced anti-submarine warfare aircraft currently flying.

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Briefing materials gathered for Champagne on the Aurora aircraft replacement project, as well as for his meeting with then Boeing International president Michael Arthur in September 2022, back up the arguments from domestic firms.

“The modernization of the CP-140 Aurora is a Canadian innovation success story, delivering world-class capability sourced primarily from Canadian industry with companies such as General Dynamics Mission Systems Canada, MDA, L3Harris and IMP Aerospace,” Simon Kennedy, deputy minister of Innovation, Science and Economic Development told Champagne.

In another note for his Boeing meeting, Champagne was also informed that “Canada has developed significant maritime patrol aircraft and multi-mission aircraft capabilities as a result of upgrades Canadian industry has undertaken to the current CP-140 fleet.”

But Champagne was advised that this message should be “responsive only” – a term indicating he should only provide that information if specifically asked about it by Boeing.

The documents were released through the Access to Information law.

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Neither Champagne nor his department responded to a request for comment.

Boeing stated it has no comment.

Multiple defence industry sources say they expect the Liberal government to announce the deal with Boeing in the coming week to buy the P-8.

That has sparked anger among Canadian firms and demands by the premiers of Ontario and Quebec that the Liberals stand up for domestic aerospace firms and at least allow Bombardier and General Dynamics Mission Systems a chance to bid on the project to replace the CP-140 Aurora surveillance aircraft. They argue that Canadian expertise developed in surveillance and anti-submarine warfare will be wasted if the contract goes to the U.S. firm.

MPs and domestic aerospace firms have also raised questions about why standard procurement rules were altered for such an expensive project.

On Nov. 9, the House of Commons committee on national defence called on the federal government to hold a competition for the CP-140 replacement instead of awarding a sole-source contract to Boeing.

Matthews did not respond to a recent request for an interview, but he did provide a statement: “I am proud of the work DND/CAF experts and maintainers continue to do on the CP-140, which continues to perform its duties exceptionally well despite its age. While the Block IV upgrades will ensure the CAF have sufficiently advanced equipment to conduct required operations until 2030, a complete replacement will still be required as the aircraft is losing relevance, while adversaries get more complicated.”

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The Canadian Forces originally planned a competition starting next year to replace the CP-140 aircraft. The Canadian Multi-Mission Aircraft Project, as it was called, outlined the acceptance of bids in 2027. A total of 23 Canadian and international firms submitted material in response to the federal government’s initial request.

But in the fall of 2022, the approved procurement plan was thrown out the window and National Defence and Public Service and Procurement Canada (PSPC) bureaucrats began pushing the Boeing P-8 as a sole-source deal.

In recent parliamentary hearings, government officials acknowledged they did not examine other potential aircraft in depth or engage in discussions with firms other than Boeing.

PSPC stated in March the Boeing P-8 was the only aircraft to meet the military’s needs, and Canada made a formal request to the U.S. government to offer a fleet of the aircraft.

Over the years, Canadian governments have spent significant amounts of money developing a domestic anti-submarine warfare industry, largely centred on General Dynamics Mission Systems.

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General Dynamics Mission Systems originally tried to convince Boeing to install the Canadian-built equipment on the P-8s, but that proposal was rejected.

The U.S. government has pressured Canada to boost defence spending, in particular, acquiring more American-built equipment. In response, the Liberal government has highlighted Canada’s ongoing military equipment projects to U.S. lawmakers, noting Canada is buying the U.S.-built F-35 stealth fighter and will spend tens of billions on joint U.S.-Canadian radar systems and defences. In addition, many of the armaments and ammunition Canada is providing to Ukraine come from U.S. industry via the American government.

David Pugliese is an award-winning journalist covering Canadian Forces and military issues in Canada. To support his work, including exclusive content for subscribers only, sign up here: ottawacitizen.com/subscribe

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