Liberals launch negotiations to buy F-35 fighter jets

The Canadian government has chosen the F-35 as its preferred replacement for the air force's four-decade-old CF-18 fighters and will open negotiations with the stealth jet's manufacturer, Lockheed Martin.

Public Services and Procurement Minister Filomena Tassi and Defence Minister Anita Anand made the announcement Monday.

The decision to open negotiations is the latest step in a process that has been underway for more than a dozen years. It also represents a major reversal for the Liberal government — which pledged in 2015 to never buy the F-35.

"It is the most significant investment in the RCAF in more than 30 years," Tassi said.

"Our government promised Canadians a competitive procurement process to ensure we are getting the right aircraft at the right price while maximizing economic benefits to Canadians. We committed to running an open, fair and competitive process and we are delivering on that promise."

Tassi listed the steps the government took — such as hiring an independent fairness monitor — and insisted that politics played no role in the decision. The minister said that she and Anand were not informed who the winning bidder was until just before the announcement.

That didn't stop the Opposition Conservatives from wondering aloud whether entering contract negotiations is another way for the government to delay making a final decision.

"After losing so many years for purely political reasons, we want to have a real response," said Conservative MP Pierre Paul-Hus in question period. "Will the F-35 be Canada's final choice or is this yet another time-stretching announcement?"

The decision Monday all but guarantees Lockheed Martin the $19 billion contract for 88 of the ultra-modern fighters. 

Under the federal government's procurement system, Ottawa chooses an aircraft and then tries to negotiate a contract with the manufacturer. If that negotiation fails, the government turns to the second-place bidder — in this case the Swedish aircraft-maker Saab, which offered the latest version of its Gripen fighter jet to the competition.

The project to replace Canada's fighter jet fleet has been a political football for more than a decade.

The government of former prime minister Stephen Harper signalled its intention to sole-source a contract to buy 65 F-35s in the summer of 2010. The bid collapsed following criticism from both the auditor general and the parliamentary budget officer — both of whom questioned the cost and whether the Conservative government had done enough homework to ensure that the stealth fighter was indeed the right choice.

As a result of that criticism, the Liberals vowed in 2015 to never buy the F-35. Prime Minister Justin Trudeau went even further; shortly after being elected, he questioned whether the stealth fighter — which has had a number of development glitches — actually worked.

Tassi tried to square that earlier opposition by arguing the Liberal government did its homework and held an open competition to the benefit of all involved, including the defence industry.