Equipment Procurement

Acquisition

F-35 Home Page
  • The F-35 can only be acquired in two ways:
    • By exercising our options under the Memorandum of Understanding (MoU)
    • Or through the Foreign Military Sales (FMS) program of the US Department of Defense (US DoD).
  • By exercising our options under the MoU, Canada will actually avoid costs currently estimated between $850-900 million (which would be incurred if purchased through the FMS process). In short, buying the F-35 under the MoU is the least costly way to obtain the F-35.
  • As a partner in the Joint Strike Fighter program since 1997, Canada was consulted as part of extensive and rigorous US-led competitive process, which led to the selection of Lockheed Martin and its partners as the Joint Strike Fighter manufacturer in 2001.
  • Since the May 2008 Canada First Defence Strategy announcement:
    • The Director of Air Requirements (DAR) has generated the Statement of Operational Requirements (SOR);
    • The Next Generation Fighter Capability (NGFC) office has conducted a thorough assessment of different options against the requirements detailed in the SOR; and
    • ADM (Materiel) personnel have costed the options based on costing data obtained on a government-to-government basis.
  • In July 2010, the Government of Canada announced its decision to acquire the F-35 to meet its NGFC requirements.
  • By acquiring a next generation fighter aircraft through the JSF program, Canada will see a significant reduction in the cost of acquisition and savings throughout the life-cycle of the aircraft, due to the collaborative approach to the sustainment and follow-on development.
  • In order to run a second competition, the Department of National Defence (DND) would no longer be able to take advantage of the benefits of the MoU. We would be required to purchase the aircraft through the FMS program and pay approximately $850-900 million more for the aircraft.
  • If Canada withdrew from the MoU, there would be costs associated with that withdrawal. Theses costs would have to be negotiated with the other partners.
  • If Canada backed out on its commitment to purchase the F-35:
    • Canada would forfeit investments;
    • Canada would not realise the benefits of its investments. To date, Canada has contributed a total of just over $200 million USD to support MoU participation and $78 million CAD to support industry; and
    • The Industrial Participation Plan would be invalidated as it is contingent on PSFD MoU participation and F-35 purchase.