Friday, January 25, 2008

The Jerc and Globemaster III benefits' train rolls back to Ontario

Talk about a fast-moving barrage of bucks (note the "astounding coincidence" near the end):
Lockheed Martin has announced that it will be farming out $175-million-worth of work to Ontario companies in connection to the federal government's purchase of its Super Hercules aircraft.

The defence contractor said the news was one of four regional announcements which will total the first 60 per cent of the industrial benefits obligation under the $1.4-billion contract.

It has also committed $242 million to Atlantic Canada, $241 million to Quebec and $185 million to Western Canada.

The federal government last week agreed to buy 17 C-130J Super Hercules airlifters and related equipment and services. The aircraft are being used for troop and equipment resupply via ground delivery and airdrop, for air-to-air refuelling, ground refuelling and humanitarian relief.

"The addition of the C-130J program will allow us to build on what we are already doing in Canada. It is a tremendous opportunity to strengthen existing relationships in Canada, develop new ones, and work together to enhance the capabilities and expertise of Canadian industry," said Ross Reynolds Lockheed Martin's vice-president of C-130 programs.

The company said Ottawa-based Telesat Canada would be one of the Ontario companies set to benefit from the commitments to the region, with Lockheed Martin using Telesat's WAAS GCCS Signals in Space services.

Delivery for the aircraft will begin in 2010 and be completed by 2013.
That first delivery will be very late in 2010 indeed (from "1. Tactical Airlift" at link):
...The purchase contract, valued at $1.4 billion U.S. was awarded on 20 December 2007. The first aircraft is to be delivered within 36 months of contract award. The last aircraft will be delivered within 60 months of contract award.
C-17 benefits are mentioned generally in the official news release:
The Honourable Jim Prentice, Minister of Industry, along with his colleague, the Honourable John Baird, Minister of the Environment, today welcomed the news that Boeing and Lockheed Martin are providing contracts in Ontario with a Canadian content value of more than $341 million, as part of their industrial benefits commitments to Canada...
So far Quebec gets $660 million, Ontario and Western Canada each $341 million (what an astounding coincidence!!!), and Atlantic Canada $290 million (other regions' figures at this link). That's a country-wide total so far of $1.632 billion--will there be a separate B.C. binge? The overall benefits are supposed to be $2.9 billion so there's still some $1.3 million waiting to be unloaded from the gravy train:
Under Canada's industrial benefits policy, Boeing has an obligation to generate economic activity in Canada at an amount equivalent to the total value of those contracts ($1.5 billion)...

Under Canada's industrial benefits policy, Lockheed Martin has an obligation to generate economic activity in Canada at an amount equivalent to the contract ($1.4 billion).

The company has already identified $842 million in industrial benefit transactions throughout Canada...


Blogger Dave in Pa. said...

BTW, does anyone know if Canada is getting the regular C-130J or the C-130-30 Stretched Herc?

5:20 p.m., January 26, 2008  
Blogger Mark, Ottawa said...

Dave: Stretched.


5:26 p.m., January 26, 2008  

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