On Thursday, a Canadian Government source said Canada is now softening the rules of its multi-billion dollar competition for 88 new fighter jets to allow Lockheed Martin Crop to submit a bid following a complaint by Washington.
Due to the sensitivity of the situation, the source requested to remain his identity anonymous. It said Ottawa was acting in accordance with the US order. The US told Canada the regulations would exclude F 35 fighter jet of Lockheed Martin. The Canadian air force wants to have this plane.
This trouble plagued process is continuing from a decade or more. The complaint was the latest challenge to this process.
Bidders for the contract of worth C$15billion & C$19billion will have to give 100% value of the deal in economic benefits to Canadian businesses. Nevertheless, it contradicts the consortium rules which develop F 35.
Last December, the F35 office of the US military wrote a letter to Ottawa. The letter says it would not bid unless it undergoes required changes.
The source said, “The U.S. government told us they were unable to offer contractual guarantees of economic benefits.”
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Henceforth, Ottawa is dropping the requirement of legally binding promise. Previously, the firms would have to spend the value of the fighter contract in Canada.
All the planes will be judged on calibre. It makes 20% each of price and benefits along with the 60% of the points available. Further, the final requirements for the jets are due out in July.
The changes in the policy, however, could encourage protests from other three contenders i.e. Airbus SE, Saab AB and Boeing Co. Lockheed Martin rivalry was pre-destined as Ottawa was tilting the race in favour of the F-35.
Further, the source said Canada made changes that benefited the other firms. E.g. Ottawa initially insisted the European planes be fully compliant with the strict US rules on exchanging secure data.
But according to new rules, European bidders need only outline a plan of meeting the U.S. security requirements.
Talking about the rivals, Boeing didn’t respond to comment request immediately. However Lockheed, Airbus and Saab declined to comment.
