On 16 January 2008, the Government of Canada announced an order for 17 C-130J Hercules aircraft to satisfy the drawn-out Airlift Capability Project – Tactical project. Lockheed Martin will receive about $1.44B for the purchase of the 17 new 'J-model Hercules. The cost of a separate in-service support contract has yet to be released although details of its conditions were announced.
When the ACP-T was announced in June 2006, the aircraft cost was listed at $3.2B "plus an estimated contract value of $1.7 billion for 20 years of in-service support to be carried out by Canadian industry". Active Canadian participation in ISS has now been removed in favour of unrelated Industrial Regional Benefits (set at 75% of the value of the contract). Naturally, the Canadian aviation industry is less than pleased with IRBs but it is odd that Government Ministers were not crowing about an apparent drop of more than half the purchase cost of the 17 x C-130J airframes.
For more information visit CASR - Canadian American Strategic Review website
