2016 CF-18 Replacement Industry Consultation Questionnaire

Part A: Instructions to Respondents

The 2016 CF-18 Replacement - Industry Consultation process will be led by Public Services and Procurement Canada (PSPC) and supported by the Department of National Defence and the Canadian Armed Forces (DND/CAF) and Innovation Science and Economic Development Canada (ISEDC).

1.0 Purpose

Canada has identified five (5) companies in allied and partner countries that have fighter aircraft currently in production or scheduled to be in production: Boeing, Saab, Dassault, Aviation, Eurofighter, and Lockheed Martin. These five companies are being provided with a copy of the 2016 CF-18 Replacement - Industry Consultation Questionnaire (hereafter Questionnaire).

The purpose of the Questionnaire is to provide prime fighter aircraft manufacturers in partner and allied nations who have a fighter aircraft currently in production or scheduled to be in production with an opportunity to present Canada with up to date information on their fighter aircraft.

The Questionnaire seeks information on issues such as costs, delivery times, interoperability with NORAD, readiness, and the potential benefits for the Canadian economy. Specific information being sought includes up-to-date information on:

  • Capabilities
  • Readiness
  • Availability
  • Infrastructure compatibility
  • Acquisition costs
  • Sustainment/maintenance
  • Life-cycle costs
  • Economic benefits
  • Methods of Procurement

Canada’s focus under this consultation process is on consulting with prime fighter aircraft manufacturers. Prime manufacturers are encouraged to engage with their supply chain and their respective partner governments as appropriate in order to provide a fulsome response to questions.

Respondents should note that information received in response to this 2016 Industry Consultation Questionnaire will also be supplemented with information already in the public domain or in Government repositories in order to support the Government of Canada in assessing risks and analyzing options for the replacement of Canada’s fleet of CF-18s.

2.0 Background

The Government of Canada remains committed to building a more agile, better- equipped military, while ensuring best value for Canadians.

Canada requires a fighter aircraft to contribute to the safety and security of Canadians and protect the sovereignty of one of the largest expanses of airspace in the world.

In today’s complex global environment, Canada requires a first-class, modern military that is flexible, agile, and capable of responding to a variety of unforeseen situations.

Recent events demonstrate that the Canadian Armed Forces have to be ready and capable to respond to threats to Canada and North America, and to protect Canadian values and interests abroad.

Through skilled and prudent management Canada is currently risk managing the ability to simultaneously meet NORAD and NATO commitments given the number of aircraft available at any given time. This also leaves us limited flexibility for unforeseen events in an unpredictable world.

New aircraft must be acquired as soon as possible so Canada can remain a credible and dependable ally.

No decision has been made at this time and all procurement options are being considered.

Why Canada Needs a Fighter Aircraft

  • Looking ahead to the end of the CF-18 era, Canada’s future fighter must be a guardian of our vast landmass, maritime approaches and airspace all while ensuring we remain a dependable ally in support of international commitments.
  • Recent global events have clearly demonstrated that international security can be volatile.  Canada must continue to be ready to defend itself and to contribute meaningfully to coalition efforts.
  • Canada’s participation in multinational training exercises in response to NATO’s reassurance measures, Baltic Air-Policing, and recent missions in Iraq, Syria, and Libya to protect civilians are reminders that the Canadian Armed Forces must be prepared with the right equipment to deal with unforeseen circumstances as they emerge.

Current Fleet

  • The CF-18s have been in service since the early 1980s. At the time, the Government bought 138 fighters with a plan to fly them for 20 years.
  • Over the past several years, the fleet has undergone a two-phased modernization program. Further upgrades are now underway to extend the fleet to 2025.
  • This fleet has served Canada well, but even with a number of modernizations and upgrades, these jets are old and are running out of life.
  • Even with the series of upgrades, not all aircraft will be flyable until 2025. Some aircraft could begin to be retired beginning in 2023.

Threat Environment and the Capability Gap

  • Recent events demonstrate the Canadian Armed Forces have to be ready and capable to respond to threats to Canada and North America, and to Canadian values and interests abroad. The reality is our fighters should have been replaced years ago.
  • Through skilled and prudent management we are risk-managing a gap between our NORAD and NATO commitments and the number of fighters available for operations.
  • As the existing fleet gets older, and aircraft are retired, the capability gap only gets worse.

3.0 Requested Information

3.1  General Information

Respondents are requested to answer the questions as precisely and directly as possible in the answer format provided in Part B to this document.

The respondent is requested to provide references to the source of the information provided.

If the Respondent has identified risks or uncertainties in the provided information, these risks and/or uncertainties should be described in further detail including any mitigation known.

3.2  Unclassified Information

Canada has drafted the questions contained in the Questionnaire with the intention that responses will be Unclassified in nature and transmittable via email, however the final determination of classification of responses will be the responsibility of Respondents.

Respondents are requested to provide Unclassified responses to the Questionnaire attached at Part B in readable PDF or 2010 Microsoft Office Compatible format to TPSGC.PCFAC-FFCP.PWGSC@tpsgc-pwgsc.gc.ca no later than the date specified in Section 6.0 below.

3.3  Sensitive, Classified and Controlled Goods Information

Companies should identify sensitive information at the earliest possible opportunity following receipt of the 2016 Industry Consultation Questionnaire. In addition, any obstacles to releasing information should be brought up as early as possible during the proposed consultation period.

In the event that Respondents have determined that responses contain classified information, sensitive or export controlled information or information that cannot be transmitted via email, alternative arrangements should be made as per below:

Respondents are requested to proceed with the necessary release processes that would allow the following information to be shared with the Government of Canada.

  • controlled Goods information
  • defence articles and defence services subject to US International Traffic in Arms (ITAR)
  • subject to foreign export controls or restrictions that is not immediately releasable

A government-to-government Memorandum of Understanding (MOU) is in place between Canada and respective respondent’s countries to facilitate the transfer of CLASSIFIED information. Your company's Chief Security Officer should contact your country’s National Security Authority/Designated Security Authority (NSA/DSA) who will in turn coordinate with his/her counterpart at the Canadian International Industrial Security Directorate (CIISD).

The CIISD is Canada's Designated Security Authority for Industrial Security and will liaise with your country’s NSA/DSA to facilitate the transfer of CLASSIFIED information to Canada

For further details on submitting CLASSIFIED information please contact:

Canada’s Designated Security Authority
C/O Scott St. Louis
International Operations Division
International Industrial Security Services Directorate
Public Services and Procurement Canada


When submitting information that is not immediately releasable or is sensitive, Classified or export controlled and cannot be emailed, Canada requests that Respondents provide:

Three (3) paper copies and three (3) electronic copies of their questionnaire responses in readable PDF or 2010 Microsoft Office Compatible format (on USB key) to Canada’s

Designated Security Authority as per above. Responses submitted in any other manner than that outlined above may not be accepted.

4.0 Treatment and Use of Information Received

In the event of any discrepancies between the information contained in this Questionnaire and the information contained in Canada’s July 7, 2016 Webex Presentation exist; the Questionnaire will take precedence.

There will be no short listing or pre-qualification of suppliers for the purposes of undertaking any future work as a result of the Questionnaire.

The Questionnaire is neither a call for Tenders nor a Request for Proposal (RFP).

No agreement or contract will be entered into with any person or entity based on the Questionnaire.

The issuance of the Questionnaire is not to be considered in any way a commitment by the Government of Canada or as authority to undertake any work, which could be charged to Canada.

Responses to the Questionnaire will support the Government of Canada in assessing

risks and analyzing options for the replacement of Canada’s fleet of CF-18s.

All information submitted from industry to Canada during the Summer of 2016 including any information re-submitted from the 2012-14 Market Analysis under the Government’s Seven Point Plan will be used to support the Government of Canada in assessing risks and analyzing options for the replacement of Canada’s fleet of CF-18s.

Review Teams: The Department of National Defence and the Canadian Armed Forces will lead the review process and will participate as appropriate. Review teams composed of representatives of DND/CAF, PSPC and ISEDC will also review the Responses. Canada reserves the right to engage any independent consultant or third party, or use any Government resources that it considers necessary to review any Response. Not all members of the review team will necessarily review all Responses.

Canada also reserves the right to seek clarifications to responses received and to ask follow-up questions.

Written Responses will become the property of Canada and will not be returned. Respondents should clearly mark any portions of their response that they consider proprietary or confidential or if the response contains controlled goods or information that could be considered classified information. Responses will be handled in accordance with the provisions of the Access to Information Act (R.S. 1985, c. A-1) the Privacy Act (R.S., 1985, c. P-21), and the Defence Production Act (R.S. 1985, c. D-1).

Respondents may be required to sign a Non-Disclosure Agreement at Canada’s sole discretion.

5.0 Response Costs

Respondents will not be reimbursed for any cost incurred to provide a response to the Questionnaire. Any and all expenses incurred by industry in responding to this request are at its sole risk and expense.

6.0 Closing Date

Responses will be due under accelerated timelines in order to support the Government of Canada in assessing risks and analyzing options for the replacement of Canada’s fleet of CF-18s.

Responses to this Questionnaire will be accepted at any time until July 29, 2016.

Canada may, in its sole discretion, also review Responses received after the closing date.

7.0 Point of Contact for Enquiries

Questions regarding this 2016 Industry Consultation Questionnaire must be directed to TPSGC.PCFAC-FFCP.PWGSC@tpsgc-pwgsc.gc.ca

Companies are to assume all responsibility for the successful delivery of all questions.

To ensure the consistency and quality of information provided to Industry, significant enquiries received and the replies to such enquiries will be provided simultaneously to all industry representatives to whom the Questionnaire has been sent, without revealing the sources of the enquiries. Questions of a proprietary nature, if indicated as such, will not be shared.

Canada will respond to questions/clarifications in a timely manner as appropriate.

Part B - Industry Consultation Questionnaire

General Assumptions and Description of Cost Elements

General Assumptions:

The life-cycle cost estimate will cover development, acquisition, operating, sustainment and disposal costs.

All year references refer to calendar years.

All costs are to be stated in 2016 prices, in the Supplier’s national currency. No foreign exchange is to be applied within the Supplier’s responses.

Suppliers are to assume the aircraft are purchased by Canada and not leased.

Suppliers are asked to return the provided Excel-templates with their completed responses in electronic format.

To enable a better understanding of Supplier costs, as well as to enable incremental analysis, Suppliers are asked to break down all costs into variable and fixed cost categories. Any assumptions made by Suppliers in the calculation of the costs are to be explained in the “Additional Details & Assumptions” column of the Excel tables.

In determination of aircraft quantity, suppliers are asked not to account for aircraft attrition.

Descriptions of Cost Elements:

1. Development Costs

To include any Research and Development recoupment fees, test and evaluation, studies, industrial participation costs, access to technologies and data, any cost to be shared among clients related to program administrative support, or other pre-production costs.

2. Acquisition Costs

One-time costs associated with bringing new equipment into service. The acquisition cost estimate includes:

  • Unit-Recurring Flyaway Cost: to include
    • airframe
    • propulsion system (i.e. engines)
    • latest available mission systems as follows:
      1. AESA Radar. Multi Role, Multi Mission, Electronic Attack (if able);
      2. Offensive/Defensive systems: integrated jammers (internal or podded) including towed decoys (if available);
      3. Hardened Cyber Counter Measure Systems;
      4. RF/IR countermeasures systems;
      5. Radar Warning Receivers, Missile Warning Receivers (if available);
      6. EO/IR Targeting systems (internal or podded);
      7. SATCOM (internal or podded);
      8. ADS-B, RNAV, CIT (all modes including Mode 5 and S);
      9. Link 16: MIDS JTRS compliant; and
      10. Fighter to Fighter discreet data link (if available).
    • vehicle systems ( landing gears, flaps, ailerons, etc.) 
    • engineering change orders (non-recurring engineering (NRE) production modification costs)
  • Concurrency Modifications: Cost associated with the implementation of post-acceptance modifications.
  • Diminishing Manufacturer Sources: Cost associated with the loss of a source of supply for parts or raw materials needed in the development, production or post-production support of an aircraft or equipment.
  • Ancillary Equipment: helmet mounted displays, external fuel tanks, weapons launchers, racks and pylons necessary for question CAP-1 profile 3 aircraft configuration. Also to include Aviation Life Support Equipment (ALSE) such as harnesses, flight suits, immersion suits, winter suits, etc.
  • Sustainment Set-Up:
    • Simulators: 8 flight simulators and 2 sets of aircraft maintenance training aids, and any related unique infrastructure
    • Mission Planning: software, hardware required pre-mission
    • Post Mission Debriefing system: software, hardware required to conduct full visual debrief of missions
    • Support Equipment: Aircraft support equipment and tooling, such as aircraft ground power units, hydraulic test stands, aircraft cooling units, and specialized aircraft maintenance tools, and test equipment necessary to meet the support requirements associated with operations while in Canada and deployed.
    • Logistics / Maintenance Information System: Costs of any systems, consisting of computers, network infrastructure and software programs, delivered as part of the Weapon System, required to provide integrated maintenance, logistics, training management, and operations support to the new aircraft;
    • Logistics Setup Labour: Contracted labour costs associated with the procurement and delivery of the sustainment solution. This encompasses resources necessary to plan and coordinate the introduction of the new fleet into service, including the supply chain, sustaining engineering, Logistics Information System support, or software maintenance, that may not be included in other cost elements.
    • Depot Stand-up:  to include costs of aircraft and equipment repair beyond the capability of Canadian operational bases which need to be performed at Government or commercial depot facilities. Includes the cost associated with developing unique depot repair procedures and tools necessary for sustainment of the new aircraft fleet.
  • Initial Spares: Initial spares: initial acquisition of spare parts is required, as well as consumable items such as tires and lubricants. The specific quantity of parts is determined by currently anticipated reliability and maintenance information, as well as operational parameters, such as the number of aircraft and operating locations, and the operating environment such as cold-weather operations.
  • Reprogramming Capability: The new aircraft is likely equipped with sensors (e.g. radar, electro-optical, infra-red, communication, etc.) that must be reprogrammed so that they continue to recognize and properly categorize what they are detecting. In the case of advanced aircraft, programming also ensures that the output of the full suite of sensors is reconciled, or integrated into a single source of information for the pilot. The software reprogramming effort, the equipment, and the facilities required to support an advanced system may exceed the Canadian Forces’ current capabilities. The estimate should include any costs, whether wholly Canadian, or Canada’s contribution if the cost is shared among other partners, for any required software reprogramming capability.
  • Weapons & Ammunition: Weapons currently in the Canadian Forces inventory that can be employed on the new aircraft will be retained.  If the current CF-18 gun ammunition, deployable countermeasures (e.g. chaff/flares), missiles and bombs, are incompatible with the new aircraft this item should include the cost of an initial stock of such items.  If current CF-18 weapons are compatible with the new aircraft, the cost of certifying their use on the new aircraft should also be included under this item.
  • Initial Training: Costs associated with the establishment of initial training for the transition of aircrew and support personnel, including any fees for service that will be charged to Canada for participating in any group training. Initial training should be provided to 100 pilots and 250 technicians. For purpose of determining associated costs, assume the longest conversion training time is applicable to all Canadian Forces aviation technician trades (AVN, AVS, ACS and AWS, see ISS-8 for definition of trades).
3. Sustainment Costs

For the purpose of determining sustainment costs, assume the following sustainment construct. Regarding location of the work performed, the below construct shall be in agreement with your proposed sustainment arrangement in question IB-3 a.

  • 1st Line maintenance (O Level): Performed by military personnel and supported by limited 1st line contracted field service representatives (technical experts).
  • 2nd Line maintenance (I Level): 2nd line maintenance activities deemed necessary (deployed) for expeditionary operations performed by military personnel. All other maintenance activities performed by industry outside DND facilities.
  • 3rd Line maintenance (Depot Level): Performed by industry at industry facilities.
  • Sustaining engineering: Performed by industry.
  • Management support:  A mix of industry and military personnel where military resources perform strategic & performance oversight of the contracted sustainment enterprise.
  • Supply chain management: Performed by industry where parts are delivered/exchanged at 1st line facilities. In deployed scenario, parts delivered to a DND facility for forward deployment by military supply system.
  • Spare parts: Owned by DND and maintained by industry, consumables procured by industry.
  • Maintenance training: Initial training performed and delivered by industry in industry facilities. For sustainment training, assume contracted led in government facilities.
  • Operator training: Initial training performed and delivered by industry in industry facilities. For sustainment training, assume contracted led in government facilities.
  • System upgrades and modification:  Performed by industry.
  • Electronic Information Environment: Provided and supported by industry.

The Canadian maintenance support concept is envisioned as a 1st (O Level) to 3rd Line (Depot Level) maintenance approach with limited 2nd Line (I Level). The majority of on-aircraft maintenance will be done at the O Level and will consist of the replacement of Line Replaceable Components (LRC)/Line Replaceable Units (LRU) and the return of unserviceable items to the supply chain.

The sustainment cost estimates should include contracted labour and material costs related to:

  1. Maintenance Cost: Planned and unplanned activities intended to keep the system in (or to return it to) a given state. Costs are to be broken down into the three maintenance levels:
    • 1st Line (O Level): maintenance includes preventive maintenance and corrective maintenance tasks of a minor nature. Maintenance includes corrective maintenance by repair or replacement of parts and assemblies limited only by time (usually 24 hours).
    • 2nd Line (I Level): maintenance includes corrective maintenance of longer duration than level 1, reconditioning of assemblies, rebuild of minor components, and limited calibration.
    • 3rd Line (Depot Level): Maintenance includes the complete overhaul of equipment normally performed at a military depot or civilian manufacturer
  2. Sustaining Support: All the costs directly associated with system-specific specialty training activities in the Operations & Sustainment phase; the costs incurred to replace or repair support equipment associated with the primary system or its major subsystems at all levels of maintenance; The government and contractor sustaining engineering to ensure the operational reliability and conformance with established specifications; Management activities associated with the program; Software Maintenance Support; Maintaining and Updating of Data and Technical Publications.; Re-provisioning for the routine replenishment and PHST (Packaging, Handling, Storage and Transportation).
  3. Continuing System Improvements: Upgrade and additional operational capabilities that occur after deployment of a system. This activity is intended to improve the system's safety and reliability. It can also be intended to enable the system to meet its basic original operational requirements.

4. Operating Costs

All operating costs will be estimated by DND. The cost of fuel will be dependent on the burn rates provided in the CAP portion of the questionnaire.

5. Disposal Costs

Include the costs of demilitarizing the aircraft and removing hazardous materials. If no Supplier-specific disposal costs are provided, disposal costs will be presumed to be the same as for the CF-18.


ACS Aircraft Structures Technician
ADS-B Automatic Dependent Surveillance - Broadcast
AESA Active Electronically Scanning Array
ALSE Aviation Life Support Equipment
AMSE Aircraft Maintenance Support Equipment
ATFLIR Advanced Targeting Forward Looking Infrared
AVN Aviation Systems Technician
AVS Avionic Systems Technician
AWS Air Weapons Systems Technician
CAN/US Canadian / United States
CIT Combined Interrogator And Transponder
DND Department Of National Defence
EO/IR Electro-Optical / Infrared
GPS  Global Positioning System
HTS  Hydraulic Test Stand
ICAO International Civil Aviation Organisation
IFF   Identification Friend or Foe
IP      Intellectual Property
ISS   In-Service Support
ITAR US International Traffic In Arms
ITB   Industrial and Technological Benefits
LRC Line Replaceable Components
LRU Line Replaceable Units
MICA RF Missile d’interception, de combat et d’autodéfense radio fréquence
MIDS JTRS Multi-Functional Information Distribution System Joint Tactical Radio Systems
MSL Mean Sea Level
NL    Newfoundland and Labrador
nm    Nautical Miles
NORAD North American Aerospace Defense
NRE Non-Recurring Engineering
NSA National Security Agency
NT    North West Territories
NU   Nunavut
OEM Original Equipment Manufacturer
OFP  Operational Flight Program
PHST Packaging, Handling, Storage And Transportation
RCAF Royal Canadian Air Force
RF    Radio Frequency
RF/IR Radio Frequency / Infra-Red
RNAV Radar Navigation
SAASM Selective Access Anti-Spoofing Module
SATCOM Satellite Communication
SIGINT Signals Intelligence
URF Unit-Recurring Flyaway
YFR Yearly Flying Rate


Industry Consultation Questionnaire (PDF, 1181 kB)

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