Major Helicopter Purchase Lands Important Work in Canada

September 24, 2009 – The Honourable Tony Clement, Minister of Industry, announced that The Boeing Company has signed an agreement with L-3 Wescam Inc. to manufacture mechanical parts in support of Boeing CH-147 Chinook cargo helicopters, including 15 purchased by the Government of Canada for the Canadian Forces.

The Boeing CH-147 Chinook aircraft is part of the government’s implementation of its Canada First Defence Strategy. Due to Industrial Regional Benefits (IRB) requirements in the $1.2-billion CH-147 acquisition contract previously announced, Boeing will be re-investing at least the full contract amount into the Canadian economy, creating jobs and stimulating regional markets.

“L-3 Wescam’s work in the Chinook demonstrates how Canada’s IRB Policy can work with the Canada First Defence Strategy to draw significant investments to our economy and create high-quality local jobs,” said Minister Clement. “The projects from this contract will help advance the capabilities of Canadian aerospace companies.”

Medium- to Heavy-Lift Helicopter Procurement

The new fleet of medium- to heavy-lift helicopters (MHLH) will take on the role of tactical insertion of platoon-strength armed troops and equipment into hostile situations. Domestically, they will allow the Canadian Forces to support first responders in disaster situations by facilitating the movement of people and supplies when transportation networks are disrupted or access to airfields by fixed-wing aircraft is not possible.

The Government of Canada approved the acquisition of the new MHLH fleet in June 2006. The following month, an Advance Contract Award Notice (ACAN) established the Boeing CH-47 Chinook as the only Western-certified aircraft in production able to deliver the capabilities required by the Canadian Forces.

Boeing was required to provide an aircraft that met the high-level mandatory requirements of the ACAN and the required Canadian configuration for flight test at 36 months after contract award. Upon successful test and evaluation of this aircraft, the delivery of an operational MHLH will begin with the final aircraft delivered no later than 60 months after a contract is awarded.

This procurement is not being undertaken to meet the government’s short-term requirements in Afghanistan  this is being done through a separate process  but rather to re-equip the Canadian Forces over the longer term with its requirements for MHLHs. It was announced by the government in July 2006.

For more information on Canada’s IRB Policy, a description of ongoing and future federal procurements subject to the IRB Policy, and the phase-in plan for the enhancements to the IRB policy, please visit the IRB website.

 

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