2023-07-10 18:04:57
Bombardier would rely on the integration of General Dynamics systems to its Global 6500 platform in a possible call for tenders from the Canadian government. (Photo: Bombardier)
Canada could benefit from economic spinoffs of $5.2 billion if Bombardier obtained the Canadian Multi-Mission Aircraft (AMC) contract from the Department of Defense of Canada, according to figures presented by the Quebec aircraft manufacturer.
These figures are taken from a study by the firm PricewaterhourseCoopers (PwC) prepared for the Quebec aircraft manufacturer. The document is part of Bombardier’s move to get the Canadian government to open a call for tenders to replace the CP-140 Auroras currently in use by the Royal Canadian Air Force (RCAF) rather than simply giving out a mutual agreement contract. a sum of $9 billion with the American manufacturer Boeing for the purchase of Poseidon P-8A aircraft.
The study calculates that the spinoffs directly linked to the AMC contract would be $2.8 billion in gross domestic product (GDP) if an eventual call for tenders were won by Bombardier and its partner, General Dynamics Mission Systems Canada (GDMS). The number of jobs supported would be 22,650, and additional tax revenue for the government is estimated at $800 million.
Bombardier insists in particular that there would be advantages in the contract being awarded to a Canadian company rather than to the American. The expertise developed would enable them to “potentially export” 40 AMCs to international markets, which would represent a total GDP of $5.2 billion during the period required to build the devices.
“It is important to understand all the economic ramifications of this decision,” said Bombardier’s Vice President of Government and Industrial Affairs, Pierre Pyun. We are once again calling for a competitive, fair and transparent process to be put forward, with a call for tenders process so that the government has a choice. For us, this is a generational occasion, because the government does not often replace its devices. »
Difficult to compare
Boeing recently put forward the figure of nearly $360 million per year in terms of Canadian benefits related to its Poseidon P-8A aircraft.
However, it remains difficult to compare the benefits put forward by Boeing and Bombardier and which would be the most advantageous.
“We haven’t seen what was published by Boeing,” says Pierre Pyun. But if I’m not mistaken, they don’t indicate the duration of the program or its cumulative impact. »
Similarly, not having all the details that a call for tenders would provide, it becomes difficult for Bombardier to provide an accurate price for the aircraft they intend to deliver if selected.
“We are not supposed to be there in the process because all that has been published are high-level requirements,” says Pierre Pyun. In order to be able to put forward a price, there would have to be a tendering process and specific requirements. Despite that, we are absolutely convinced that we would be competitive. »
Benefits
Bombardier took the opportunity of the presentation of the PwC report to put forward what it considers to be the advantages of the aircraft it is proposing to the ARC, in addition to the economic benefits.
First of all, the Director of Contract Acquisition at Bombardier Defense, Anne-Marie Thibodeau, remarks that the selection of the consortium of Bombardier and GDMS would make it possible to offer the ARC a “fully Canadian” solution.
“We’re building on existing Canadian content,” she notes. The product and labor would be local, and there would be direct benefits for the economy. »
Another aspect to consider is that of “sovereign capabilities”, which means, explains Pierre Pyun, that it would not have to ask another nation to make modifications to the devices.
“With the platform and the systems made in Canada, and I think very few nations have the ability to develop an aircraft from A to Z,” he says. This is strategic expertise that can be used as leverage to become leaders in the field. »
Bombardier also maintains that its modified Global 6500s would be modern aircraft compared to Boeing’s P-8A or the CP-140, which dates from the 1970s.
“What we would do is take the GDMS system and put it on the Global 6500 platform,” explains Anne-Marie Thibodeau. Our platform is modern, reliable and it is still in production, whereas Boeing offers rather an end-of-life product. »
Boeing has effectively let it be known that it will cease production of the P-8A after 2025 if it does not receive new orders.
Abilities
Bombardier also wanted to set the record straight about the “misperceptions” it hears.
The government is aiming for a first delivery in 2032 and a last in 2037. Several observers seem to doubt the ability of the Quebec aircraft manufacturer to be able to deliver its new military aircraft on time because of the delays that the integration of GDMS systems into the Global 6500. However, Pierre Puyn says he is “totally convinced that we are within these timeframes”.
Another perception that has reached Bombardier’s ears is that the aircraft proposed by Boeing is already in service, while that of the Quebec company should go through all the stages of integration of GDMS systems to its aircraft.
Bombardier defends itself by claiming to reuse “fully compatible” technologies and believe that, on the technical side, it offers the best solution to meet the requirements of the ARC.
“We rather offer a low-risk solution,” says Anne-Marie Thibodeau. We take the same systems (as those of the CP-140) and we integrate them on a modern platform. »
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