9. Opportunities for Canadian Industry - Joint Strike Fighter Program
Industrial Participation Report - Fall 2014
Q1. Are industrial participation values
contingent upon Canada procuring the F-35?
Yes. The 2006 Memoranda of Understanding between the Government of Canada and the prime contractors (Lockheed Martin and Pratt & Whitney) state that
continued access to industrial opportunities is contingent upon the Government of Canada remaining a partner in the Program and procuring the Joint Strike Fighter (F-35) aircraft.
Q2. How is Canadian industry benefiting from the Joint Strike Fighter Program? How many companies are involved?
According to the most recent numbers received from the prime contractors, companies in Canada have secured US $637 million in contracts, an increase of US $50 million over the results reported in the Canadian Industrial Participation in the F-35 Joint Strike Fighter Program report tabled in Parliament in Summer 2014. Currently, 33 companies have active contracts.
New skills and technologies gained through the F-35 Program have helped position Canadian industry to take advantage of other advanced aerospace and defence projects. For instance, GasTOPS of Ottawa, Ontario developed debris sensors for the F-35's engine. As a result, their sensors were chosen by Pratt & Whitney for inclusion on the new geared turbofan engines that will power the Bombardier CSeries and Airbus' A320neo.
Q3. Contracts have increased by US $50 million since the Summer 2014 Report. Will contracts continue to increase?
The growth of contracts reported by the prime contractors depends on several factors, including the best value competitive nature of the opportunities and the JSF Program production, which is expected to remain constant in the short-term.
Q4. What are the potential long-term benefits for companies in Canada?
Given Canada's early involvement in the Program, companies in Canada are directly involved in the global supply chain of the F-35 aircraft.
If Canada decides to purchase the F-35, companies that currently have contracts will have the opportunity to increase their level of participation as the Program moves into a higher rate of production.
In addition, there are other opportunities identified in the industrial participation plans for which companies in Canada will have the opportunity to compete. Taken together, these opportunities plus current contracts could total up to US $10.808 billion. It should be noted that there are significant opportunities in areas such as sustainment, maintenance, repair, training and simulation that have yet to be identified.
Q5.
Is the work guaranteed? Are prime contractors obligated to put work in Canada?
There are no guarantees since companies are awarded
contracts on the basis of 'best value', and that these
are contingent on the acquisition of the F-35.