Today, the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), announced that the Government of Canada has signed two amendments to an existing contract with Lockheed Martin Corporation for maintenance and upgrades on the CC‑130J Hercules fleet.
The first amendment, valued at $462.5 million (USD), will prolong in-service support for the fleet until June 2029. The second amendment, valued at an estimated $684.3 million (USD), will integrate the RCAF 105 upgrades to the entire fleet.
With these amendments, the contract will continue to create and maintain high-skilled, well-paying jobs and generate growth for Canadian industry. The amendments are also critical to ensuring that the Royal Canadian Air Force (RCAF) can continue to maintain its wide range of missions, including troop transportation, tactical airlift and aircraft maintainer training, safeguarding its capability to maintain global airlift capabilities.
The in-service support amendment will be primarily completed by Lockheed Martin and its subcontractors at various facilities in Canada and the United States, including Trenton, Ontario. In‑service support work is also expected to continue at the Cascade Aerospace facility in Abbotsford, British Columbia, and the Standard Aero facility in Winnipeg, Manitoba, annually contributing $85 million to Canada's gross domestic product (GDP) and creating or maintaining 620 Canadian jobs.
The RCAF 105 upgrades will provide the Canadian Armed Forces (CAF) with new technologies to enhance the efficiency and safety of air traffic management. Continuous updates in navigation, communication, flight management and avionics systems are essential for compliance in both civil and military airspace. The RCAF 105 upgrades will support 525 Canadian jobs and contribute $70 million to Canada's GDP annually. In addition, Lockheed Martin will ensure Canadian industry is a key partner to install these upgrades on Canada's fleet, creating further economic benefits at home.
Since 2009, this contract has positioned Canadian industry well for export opportunities. Companies such as Cascade Aerospace have developed partnerships with Lockheed Martin and have long been engaged in this type of work, demonstrating longstanding capability and competitiveness in global markets. This project elevates existing strengths and enables Canada to further leverage domestic expertise for national benefit, while simultaneously enhancing visibility and credibility abroad.
The Government of Canada is modernizing and improving defence procurement through the newly established Defence Investment Agency (DIA). By streamlining decisions and centralizing expertise, the Agency is accelerating the delivery of mission-critical equipment to the CAF.
The Agency's mandate includes engaging industry earlier in the procurement process, supporting innovation and aligning procurement strategies with partner nations to deliver results faster.
Through these efforts, Canada is demonstrating leadership in building resilient defence industrial partnerships that strengthen our alliances, diversify our partnerships and create opportunities for Canadian industry to innovate and compete globally.
The changes will help ensure that CAF members have the tools they need to fulfill their missions and keep Canadians safe, while creating good-paying jobs and generating better economic value for Canadians.
