C-130J Hercules Maintenance Contract to Provide High-Value Work for Canadian Industry
(Source: Government of Canada; issued January 13, 2010)
The first C-130J Super Hercules produced for Canada leaves Lockheed’s paint facility in Marietta, Georgia. Lockheed will deliver 17 new C-130J to Canada over the next two years. (LM photo)
GATINEAU --- The Government of Canada recently adopted a support package for the C-130J Hercules, creating high-value work for Canadian industry through Industrial Regional Benefits (IRBs) while providing the Canadian Forces (CF) with maintenance for one of its most valuable fleets.

A contract amendment valued at $723 million was signed with Lockheed Martin on December 18, 2009 for an initial period ending June 30, 2016. The amendment also includes a mechanism to extend the period of in-service support until the end of life expectancy of the C-130J fleet.

“The support contract is in line with the government’s Canada First Defence Strategy to provide the men and women of the Canadian Forces with the tools they need to do the jobs asked of them,” said Minister MacKay. “These aircraft will enable our Canadian Forces personnel to conduct more effective operations, at home and abroad.”

In addition, this support package for the C-130 Hercules will result in high-value work for Canada’s defence industry.

“The Industrial Regional Benefits Policy is a key element of the government's defence procurement process," said Minister Clement. “The IRB activities arising from this contract, notably broader global business transactions which are enabled by the updated IRB policy announced in September 2009, will yield economic benefit across Canada and continue to drive investment in our aerospace and defence sectors.”

Lockheed Martin is required to provide IRBs, equal to 100 per cent of the contract value. The IRB policy has recently changed focus to provide Canadian companies with high-value work and enable an important role in global supply and value chains. The results of this C-130J Hercules support strategy will be lasting economic activity and jobs in Canada.

The contract for 17 C-130J Hercules aircraft was originally awarded to Lockheed Martin in December 2007 and valued at approximately $1.4 billion. The tactical airlift fleet will be introduced into the Canadian Forces in June 2010, six months ahead of schedule. This aircraft provides the Canadian Forces with an essential means to deploy personnel both at home and abroad, as well as supporting Canadians in distress at home. The C-130J Hercules will be based at CFB Trenton.


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