Canada Plans To Award $728 Million Of Contracts Due To C-130J Buy

by: Matthew Potter
January 14, 2010

Category: Boeing, Business Line, Canada, Companies, Contract Awards, Countries, Events, Lockheed Martin, logistics, Military Aviation, production program | RSS 2.0

The Royal Canadian Air Force (RCAF) purchased seventeen C-130J aircraft from Lockheed Martin (LMT) two years ago. As part of that contract offset rules require Lockheed to invest money into Canada’s economy. Because it ended up that little or no of the production money would flow into Canada it was decided that the bulk of the Contractor Logistics Support (CLS) money would go into Canada’s economy.

The Ministry of Defense announced in December that contracts valued at over $700 million would be executed through the Industrial Regional Benefits (IRB) framework. This is only the first part of the awards as it only covers support for the first seven years. Further contracts may be awarded that will provide CLS until the end of the useful life of the Hercules aircraft.

Canada is facing the cost of operations in Afghanistan which demands significant amounts of tactical lift. The U.S., Britain and Canada all are investing in new Boeing (BA) CH-47 heavy transport helicopters. The C-130J aircraft will aid this mission as well.

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