Ensuring Economic Benefits for Canada

November 22, 2016 – Ottawa – Government of Canada

The CF-18 replacement offers a once-in-a-generation opportunity for the Canadian aerospace and defence sectors. Together, these sectors currently provide more than 235,000 jobs for the Canadian economy. The Government of Canada is committed to leveraging the procurement and long-term sustainment of the future fleet to create high-value middle class jobs for Canadians and support innovation by Canadian industry.

The Government’s Industrial and Technological Benefits (ITB) Policy will apply to both the interim and permanent procurements. The Policy requires prime contractors to make investments in Canada equal to the value of the contract. A central part of the ITB Policy is the Value Proposition – a strategic tool used to maximize industrial outcomes that align with the Government’s economic objectives. Potential bidders are expected to provide a Value Proposition submission that will provide opportunities for Canadian companies to showcase their world-class technologies and position themselves for further growth in global markets. The Value Proposition submission, in addition to cost and technical merit, is one of the factors that will determine a winning bid. 

In the coming months, the Government will begin engaging with fighter aircraft suppliers and Canadian industry to obtain input towards the development of a Value Proposition that will:

• Maximize Canadian industrial involvement on the fighter platform – including long term in-service support work on this fleet;
• Provide supplier development opportunities – particularly for small- and medium-sized enterprises;
• Motivate investments in innovation and research and development with Canadian industry, as well as in Canadian research establishments such as post-secondary institutions; and
• Provide export opportunities on global platforms.

Should the Government proceed with the interim capability, a Value Proposition would be established to secure important economic benefits to Canada that would create middle class jobs and support innovation across the country.

In the coming weeks, the Government of Canada will engage with Boeing and Canadian industry to identify and refine potential aspects of a Canadian Value Proposition.

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 Related Products

• News Release: Canada announces plan to replace fighter jet fleet
• Backgrounder: The Role of Canada’s CF-18 Fighter Fleet
• Backgrounder: Engagement with Industry and Allied Partners
• Backgrounder: The Procurement Process Defined: Replacing Canada’s CF-18 Fleet

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