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Tactical Transport Aircraft  –  Resupply by Air  –  Dec 2007  (updated January 2008) The Rumour Mill  and  On Again/Off Again Hercules [now confirmed] [ Update:  the expected C-130J Hercules purchase was finally announced  16 January 2008.] “You may ask yourself: Well, how did I get here?” The C-130J Purchase: a Potted History The plan to replace the aging  fleet of  Canadian Forces  Lockheed  CC-130 Hercules  tactical transport aircraft seemed to lurch forward this week.  The Canadian Press published a vague report,  suggesting that  the Treasury  Board  had finally approved  funding for the Advance Contract  Award  Notification  (ACAN)  for 17 new C-130J Hercules  from  Lockheed  Martin. This sounds promising. However, the final contract for the aircraft  still  has not been signed. This is not the first time that the fortunes of the CF Hercules fleet have been left up in the air. Under the previous Liberal governments, consideration was given to options as disparate as rebuilding used ’H-model Hercules and  leasing ’J-model Hercules (either used from the RAF or brand-new from Lockheed Martin).  In the end,  the Liberal government chose to purchase 16 or more  new C-130Js.  On 22 Nov. 2005, a $4B-to-$5B deal was announced – including the obiligatory 20-year support / maintenance contract. This Liberal plan was denounced  by the Opposition which claimed the contest to be unfairly skewed in favour of  the C-130J.  Within the  week,  Paul  Martin's  Liberal  government  fell  in  the  wake  of  a  non-confidence  vote. When the Conservatives under  Stephen Harper  took power, a freeze on all defence procure- ment was imposed to allow time to review Liberal  decisions and  contracts.  Having attacked the Liberal C-130J deal while in Opposition, it was not surprising that  this Hercules purchase was a casualty of  those reviews.  In its place,  the new  Conservative government  initiated a new  'Airlift  Capability  Project – Tactical '.  In July of  2006, a  Letter of  Interest  Notice  was issued with the intention of eliminating any unsuitable candidates. This would include Snow Aviation’s  rebuild proposal and, more controversially, the as-yet-unbuilt Airbus A400M. [1] ACP-T would  require 17  new  Hercules-replacement  aircraft at a cost of  $4.9B.  Some $3.2B was for  the aircraft  themselves*  –  the rest,  $1.7B, was  for a  20-year  ' In-Service  Support ' contract. Deliveries would  begin in 2010. With all other ACP-T competition eliminated, it was obvious that  the contract would  go to Lockheed Martin for the C-130J once again. The only remaining  question:  When would  the  Government agree to place the C-130J order. [ * This changed dramatically. Each aircraft is now to cost $100M. But no details on the ISS.] Politically, this must  be rather embarassing for Prime Minister  Stephen Harper. His advisors have steered him into a corner while Air Staff procurement officers seem to be leading him in a  'merry  dance'.  After a delay of  two years and counting,  the best-case scenario is that we are back to the point of  ordering  the same  number and  type of  aircraft  for the same  price. Edited excerpts of  the CP article are presented below  [with comments by Stephen Priestley]. Controversial Hercules purchase approved / Storm brewing over $4.6B Hercules contract Murray Brewster – The Canadian Press,  20 December 2007  [from The Hamilton Spectator ] Ottawa – The Defence Department's long-awaited and controversial purchase of  the newest version of  the Hercules transport plane has been approved  by  the federal  Treasury Board, defence sources say.   A replacement  for  the Air  Force's  aging  C-130E  and  C-130H  fleets was  first  proposed  in the summer of  2006  by  former  defence  minister  Gordon  O'Connor. [ As noted above, plans to replace the CC-130E and  CC-130H began to gel  under the former Liberal governments, albeit slowly.  Ex-MND  O'Connor was among  those in the Opposition who denounced  the then-government's choice of  single-sourcing  from  Lockheed  Martin.] Sources said  the  $4.6-billion  purchase of  17  C-130Js  received  funding approval [ from the Treasury Board ] last Thursday, but a contract has yet to be signed with ... Lockheed Martin. The in-service support portion of the deal will be the subject of further discussions, said one source familiar with the agreement. [ It is made clear later in the article that the government intends to source In-Service Support directly to LM.  Earlier figures implied that the total price of $4.9B  included these ISS costs.] Officials at  National Defence declined comment, and  it's unclear whether the federal cabinet needs to review the package again.  But ... last week, Chief of  Defence Staff  Gen. Rick Hillier said he understood the cargo plane was in the final stages of  approval.  Three of  the [oldest CC-130E ] Hercules have already been retired after exceeding their flying life and "we'd like to put the other ones to bed as quickly as possible," Hillier said. [ The Air Force still list 32 Hercules in service – 19 CC-130Es and 13 'Hs – but some of  those 'E models are grounded. CC-130Es were bought in the mid-'60s  (but upgraded to 'H standard in 1987).  Most  CC-130Hs entered service in 1974 –  with 2 added in '91 and another 2 in '97.] "With  the old  C-130s,  we're spending  more to keep them flying  but their operational avail- ability is going down." [Gen. Hillier] compared the existing fleet to a 1981 Ford Taurus that is constantly  in the shop  for repairs.  "You spend ... to keep it running,  take it  back out and some thing else breaks and you put it back in," he said. "I know this ... I had a Ford Taurus." Defence sources said  the government  was running out of  time to make up its mind because Lockheed Martin's [agreed] price for the project was set to expire at the end of the year... The Defence Department refused  to explain why  in-service support for the C-130Js has been left open for discussion, but  it  is clear a storm  is brewing among Canadian defence contractors, who increasingly feel left out. As military aircraft become more sophisticated and  fewer are... purchased, many Canadian aerospace firms  have downsized and  discontinued separate pro- duction lines.  Instead  they  now rely on the Defence Department  to buy  maintenance data, such as technical drawings, up front from [aircraft-makers], most of which are foreign-owned. The government intends to contract in-service support directly [from] the aircraft-maker, but require [Lockheed Martin] to spend money in Canada on industrial offsets –  something that will generate work, but not  to the same degree as the old system.  The Conservative govern- ment decided early in its tenure that  it was going  to deal exclusively  with  Lockheed Martin for the air force's medium-lift transport planes. [ This government approach to aircraft support contracts  (ie:  foreign support contracts that are 'balanced' by industrial offsets) was mirrored by the  C-17 ACAN and  support contract.] Rival  European  aircraft-maker  Airbus  Military  complained  publicly and took  the  unusual step of putting  its case before the House of  Commons defence committee,  saying [that]  its yet-to-be-tested  [Airbus A400M]  cargo jet  was being  unfairly excluded  from  competition. [ Airbus Military entered its  turboprop  A400M design  into both  the Strategic and  Tactical components of  DND's  Airlift  Capability  Project. The A400M  ( the first prototype of  which is now being assembled) was eliminated  for not  being certified and available for test flying.] Concerns about the sole-sourcing arrangement [ for C-130Js] were also fodder for opposition parties during question period.  Critics also pointed  to a variety of  teething pains, including problems with the glass cockpit [2], radar glitches and [ the propeller blades]  that have been easily damaged [through] ordinary wear and tear.                                                                                 *   *   * The old  CC-130s are the only air assets that  Air  Staff  allowed  to be stationed  in  Afghani- stan. [3]  Those CF  Hercules  fly  supply missions,  including dangerous parachute drops to forward-based Canadian and allied ground troops. The older Hercules will have to continue those supply drops at least until  the end of  the current deployment phase.  In the C-130J, we are buying yet another aircraft type delivered  too  late to participate in any meaningful way in support of  Canadian Forces troops  risking their lives on the ground in Afghanistan. [1] Airbus claimed  that  the requirement to present a testable prototype biased the ACP-T in favour of the C-130J.  A suit  was brought  against  the Government  but was settled  out of court. The Snow Aviation proposal offered new digital cockpits and Canadian-made engines (PW150s) but in remanufactured CC-130E &H airframes. The ACP-T specified new airframes. [2]  The term  'glass cockpit'  refers  to the pilots' electronically-displayed  flight  instruments. [3]  Other Canadian aircraft fly in and out of Afghanistan (mostly Hercules but, on occasion, the CC-177 & CC-144 Challengers). The Air Force also operate the ex-Army Sperwer UAV.