[xoxoxoBruce]

On the Boeing web today;

Has tentative contract with Ottawa Tories want firm's Chinooks, C-17s
Toronto Star 06/23/2006
Author: Bruce Campion-Smith
Copyright (c) 2006 The Toronto Star

OTTAWA--Despite public claims that no decisions have been made, the federal government is negotiating tentative contracts to buy four mammoth C-17 Globemaster transport planes and 15 Chinook helicopters from aerospace giant Boeing.

In return for the lucrative deals, worth upwards of $7 billion, Boeing is ready to promise Ottawa a "robust" industrial benefits package to ensure Canadian aerospace companies reap a share of the windfall, especially those in Quebec.

The Chinooks and C-17s are key components of a military spending spree worth an estimated $17 billion that will be unveiled by the Conservatives next week.

The federal cabinet is expected to give its final blessing to the ambitious program when it meets today in Quebec City. And officials are putting the final touches on the logistics of a publicity campaign that will see cabinet ministers fanning out to tout the spending blitz.

The "mobility" package will promise the military new aircraft, trucks and choppers to move troops and equipment on missions around the globe and is meant to tackle some of the most pressing problems facing the armed forces.

Just this week, military officials in Afghanistan warned that Canadian troops travelling in convoys were being hurt in roadside attacks because they didn't have Chinook helicopters to move by air.

Prime Minister Stephen Harper said yesterday the government is still "finalizing" its procurement plans for the armed forces but made clear he would act soon on campaign pledges to rebuild the military.

"This government, in our campaign, laid out that we would correct 13 years of Liberal neglect, that we would move forward with major military purchases including new supply ships, new trucks, new helicopters, and strategic and tactical airlift," he told the Commons.

However, in at least two of those deals, the government has already made its choice, industry sources confirm.

For both the C-17 and Chinook, the government will announce that it's done what's called an advanced contract award notification, which means officials have already negotiated contracts with Boeing.

Competing firms will have 30 days to submit a proposal, but the award notification signals the government has made up its mind on aircraft it thinks fits its requirements.

The government will start its military road show Monday in Halifax with the announcement it is moving ahead with the design of three new joint support ships. New trucks for the army will be announced in Quebec on Tuesday, and the Chinooks on Wednesday. On Thursday, Defence Minister Gordon O'Connor will be in Trenton to announce plans for new transport aircraft.

Related Stories
Boeing: C-17 money OK'd; program still at risk - Seattle Times 06/23/2006
Boeing to get deal worth billions for military transport planes - Ottawa Citizen 06/21/2006
Ottawa to spend $15-billion to boost military - The Globe and Mail (Canada) 06/23/2006

It looks like Canada is getting serious about gearing up for their role as UN peacekeepers......at least.