IN JUNE 2006, just before the government issued a tender for four strategic aircraft to carry military gear to far-off airports, the Canadian Forces changed the size of its payload requirement to 37 tonnes from 19.5 tonnes.
Only one aircraft in the world — the Boeing C-17 Globemaster — met the new requirement. Boeing’s biggest competitor in the class, the Airbus A400, can carry only 37 tonnes.
In July, the government issued an advance contract award notice, a document asking any (mythical) competitor to step forward with another offer before Ottawa bought four Boeings...
Defence Department internal e-mails about the purchase unearthed by the Ottawa Citizen suggest DND made the change to eliminate Airbus as a competitor...
This procurement raises several other, tougher questions [actually two only]:
Do we need these airplanes?..
Instead of buying them, we could have joined 15 NATO countries that are negotiating to buy several C-17s to share or signed a contract with a commercial provider guaranteeing us access whenever we want it...
At the same time that the military is buying these Boeings, it is looking at retiring two supply ships and a destroyer. It also plans to replace long-distance maritime surveillance aircraft with drones.
Retired naval officers are screaming blue murder about these cuts to the navy, a sure sign that their colleagues still in the service are muttering darkly into their rum...
Is this the best way to buy an airplane?..
By changing the payload requirement, DND appears to have manipulated the procurement process to steer the work to Boeing.
"Sure, this is an open competition, but we’ll only accept companies whose names start with a ‘Boe’ and end with an ‘ing,’ " says Steve Staples, a defence analyst with the left-leaning Rideau Institute [emphasis added--at least "left-leaning" is noted]...
Of the $3.4 billion DND will spend on these Boeings, about $1.9 billion will be spent in Canada.
The contracts haven’t been announced, but some are worried that Canadian firms may not get as much high-end work as we would like. Without intellectual property rights to aerospace technology, Canadian firms can’t use their know-how to win other work...
And buying so many aircraft from one supplier looks bad.
Mr. O’Connor is a former defence lobbyist [emphasis added--why not mention that he, er, lobbyied for Boeing competitor Airbus?--talk about innuendo], one of the guys who used to make his living by helping defence contractors land contracts.
Under his watch, the government is steering $13 billion to Boeing, without competition...