(NSI News Source Info) VICTORIA, British Columbia - March 20, 2009: Canadian Defence Minister Peter MacKay is planning to go to the Cabinet of Prime Minister Stephen Harper in the next several months for approval of a multibillion-dollar project to purchase up to 17 search-and-rescue aircraft. 
The Aeritalia G.222 is a medium-sized STOL military transport aircraft. It was originally developed to meet a NATO specification, but Italy was initially the only NATO member to adopt the type. The United States purchased a small number of G.222s, designating them the C-27A Spartan. The C-27J Spartan is a more modern development with the engines and systems of the C-130J Super Hercules.
But defense industry sources say his department is facing an uphill battle with other federal government bureaucrats who oppose what they see as a plan to hand the 3.1 billion Canadian dollar ($2.5 billion) acquisition to Alenia North America. Alenia is offering the C-27J aircraft.
That potential sole-source procurement prompted protests in December and January from Airbus Military, which offers the C-295 aircraft. And Viking Air, based here, launched a lobbying campaign, writing members of Parliament to ask why the Defence Department wanted a U.S.-built aircraft when a Canadian-made plane was available.
Viking Air has proposed that it provide new DHC-5 Buffalo aircraft built here and in Calgary, Alberta. The Buffalo is flown by the Canadian Forces on fixed-wing search-and-rescue missions.
The Defence Department has also faced increasing opposition from Industry Canada, another federal department that buys goods. There is concern that the specifications for the new aircraft favor the C-27J. Over the years, Air Force officers have never hidden their preference for that plane.
Industry sources said Industry Canada wants an open and fair competition to ensure that Canadian firms get maximum benefits from the project.
During a tour of the naval base here, MacKay said the specifications for the new aircraft have already been worked out but that no plane is favored. He said his Defence Department officials are working closely with Industry Canada representatives.
"I suspect it will be a full, open and transparent process and one that will hopefully invite bidders in the very near future," he said. "I want to take something to Cabinet this spring, but I'm going to have to get the cooperation of the other departments to ensure we're ready to proceed."
The SAR procurement and budget includes a 20-year support contract.
Martin Sefzig, director of Canadian programs for Airbus Military, said the company welcomes the chance to bid and plans to stress the C-295's low maintenance cost, its suitability for search and rescue, and the various search-and-rescue sensors it can carry.
Viking Air President David Curtis noted that the requirement to replace the present search-and-rescue fleet is not based on a lack of ability of the Buffalo to do the job, but is due to the aging of the aircraft, which are about 40 years old.
Curtis argues that buying Buffalos would also save money that could be used to buy Dash 8 aircraft from Bombardier of Montreal for search-and-rescue operations on the country's east coast. The Buffalos currently operate on the west coast because of their maneuverability in the mountains.
Both procurements would create large numbers of Canadian jobs at a time when the country's aerospace industries are hurting, according to Viking Air officials. The firm believes that restarting the Buffalo production line also could attract potential export orders from other nations interested in the plane.
In a statement, Alenia North America said it would present its C-27J proposal to the Canadian government. If accepted, Canadian aerospace firms could be brought in as potential suppliers on the U.S. military's Joint Cargo Aircraft program, which will also employ the C-27J.
In early 2008, the Canadian Forces announced it would fly its Buffalos until 2014 or 2015. But in December, MacKay said he was going to try to fast-track the fixed-wing search-and-rescue project since it was important to the military's domestic operations.
Airbus Military's C-295 and Alenia's C-27J Spartan have over the years been seen as the main contenders for the program.
In April 2004, Airbus officials complained publicly that the Canadian Air Force was pushing for a sole-source purchase of the C-27J.
Alan Williams, the Defence Department's former assistant deputy minister for materiel, later testified before a parliamentary committee that the Air Force had designed the requirements for the search-and-rescue aircraft program to favor the C-27J.
But the ongoing delays in the project have allowed Viking Air to enter the competition. Viking Air recently restarted a production line for Twin Otter aircraft and received an order for those planes from the U.S. Army.
The Aeritalia G.222 is a medium-sized STOL military transport aircraft. It was originally developed to meet a NATO specification, but Italy was initially the only NATO member to adopt the type. The United States purchased a small number of G.222s, designating them the C-27A Spartan. The C-27J Spartan is a more modern development with the engines and systems of the C-130J Super Hercules.
But defense industry sources say his department is facing an uphill battle with other federal government bureaucrats who oppose what they see as a plan to hand the 3.1 billion Canadian dollar ($2.5 billion) acquisition to Alenia North America. Alenia is offering the C-27J aircraft.
That potential sole-source procurement prompted protests in December and January from Airbus Military, which offers the C-295 aircraft. And Viking Air, based here, launched a lobbying campaign, writing members of Parliament to ask why the Defence Department wanted a U.S.-built aircraft when a Canadian-made plane was available.
Viking Air has proposed that it provide new DHC-5 Buffalo aircraft built here and in Calgary, Alberta. The Buffalo is flown by the Canadian Forces on fixed-wing search-and-rescue missions.
The Defence Department has also faced increasing opposition from Industry Canada, another federal department that buys goods. There is concern that the specifications for the new aircraft favor the C-27J. Over the years, Air Force officers have never hidden their preference for that plane.
Industry sources said Industry Canada wants an open and fair competition to ensure that Canadian firms get maximum benefits from the project.
During a tour of the naval base here, MacKay said the specifications for the new aircraft have already been worked out but that no plane is favored. He said his Defence Department officials are working closely with Industry Canada representatives.
"I suspect it will be a full, open and transparent process and one that will hopefully invite bidders in the very near future," he said. "I want to take something to Cabinet this spring, but I'm going to have to get the cooperation of the other departments to ensure we're ready to proceed."
The SAR procurement and budget includes a 20-year support contract.
Martin Sefzig, director of Canadian programs for Airbus Military, said the company welcomes the chance to bid and plans to stress the C-295's low maintenance cost, its suitability for search and rescue, and the various search-and-rescue sensors it can carry.
Viking Air President David Curtis noted that the requirement to replace the present search-and-rescue fleet is not based on a lack of ability of the Buffalo to do the job, but is due to the aging of the aircraft, which are about 40 years old.
Curtis argues that buying Buffalos would also save money that could be used to buy Dash 8 aircraft from Bombardier of Montreal for search-and-rescue operations on the country's east coast. The Buffalos currently operate on the west coast because of their maneuverability in the mountains.
Both procurements would create large numbers of Canadian jobs at a time when the country's aerospace industries are hurting, according to Viking Air officials. The firm believes that restarting the Buffalo production line also could attract potential export orders from other nations interested in the plane.
In a statement, Alenia North America said it would present its C-27J proposal to the Canadian government. If accepted, Canadian aerospace firms could be brought in as potential suppliers on the U.S. military's Joint Cargo Aircraft program, which will also employ the C-27J.
In early 2008, the Canadian Forces announced it would fly its Buffalos until 2014 or 2015. But in December, MacKay said he was going to try to fast-track the fixed-wing search-and-rescue project since it was important to the military's domestic operations.
Airbus Military's C-295 and Alenia's C-27J Spartan have over the years been seen as the main contenders for the program.
In April 2004, Airbus officials complained publicly that the Canadian Air Force was pushing for a sole-source purchase of the C-27J.
Alan Williams, the Defence Department's former assistant deputy minister for materiel, later testified before a parliamentary committee that the Air Force had designed the requirements for the search-and-rescue aircraft program to favor the C-27J.
But the ongoing delays in the project have allowed Viking Air to enter the competition. Viking Air recently restarted a production line for Twin Otter aircraft and received an order for those planes from the U.S. Army.
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