Today, George Chahal, Member of Parliament for Calgary Skyview, visited Arcfield Canada in Calgary, Alberta to announce an important investment that will support Canada's fleet of CF-18 fighter jets, and ensure that it is operationally ready and able to deliver for Canada.
On behalf of the Minister of National Defence Bill Blair and the Minister of Public Services and Procurement Jean-Yves Duclos, Mr. Chahal announced that the Government of Canada has awarded a contract valued at up to $211.6M (taxes included) to Arcfield Canada. Through this contract, Arcfield Canada will continue to help sustain Canada's fleet of CF-18 fighters. In particular, Arcfield Canada will continue to support the CF-18 fleet's Avionics weapons systems, supply parts as needed, and provide end-to-end supply chain services.
The contract will ensure that avionics spare parts will be made available to CF-18 technicians. Arcfield Canada will provide end-to-end supply chain services related to these parts including planning, purchasing, warehouse management and repair of spare parts. Arcfield Canada will also ensure, through engineering and technical services, that repairs can be executed effectively in the field, and that the users and maintainers of the CF-18 will have access to the fully maintained technical publications that they require to execute their mission.
This project also invests in Canada's defence industry - supporting skilled jobs in Calgary, and creating economic growth for the Alberta and Canadian economy. This contract will create or sustain 370 high skilled jobs annually for Canadian industry and value chain partners, and input $41 million annually into Canada's gross domestic product over a ten-year period. Through this contract, the Government of Canada is investing in Canadian excellence and knowhow, and supporting a trusted partner at Arcfield Canada, which will continue to provide optimized support to Canada's fighter fleet.
This investment will help to ensure that Canada's fighter fleet remains interoperable with that of our allies, meets civil/military aviation regulations, and effectively meets operational commitments primarily with North American Air Defence Command and the North Atlantic Treaty Organization until the permanent replacement fighter fleet of F-35 jets is expected to be fully operational in 2032.
The contract is for an initial five-year period, and five subsequent one-year options. The in-service support contract for CF-18 Avionics will come into effect on April 1, 2024 and if all options are exercised it will last until 31 March 2034.
As part of the Government of Canada's ongoing commitment to create more procurement opportunities for Indigenous businesses, Indigenous Procurement Considerations (IPC) were included in this contract. The IPC require the supplier to subcontract a portion of the work to businesses managed or led by Indigenous Peoples. This is part of the Government of Canada's commitment to create more opportunities for Indigenous businesses to succeed and grow by seeking to ensure that at least 5% of federal contracts go to businesses managed and led by Indigenous Peoples.
