A wooden mock-up of the F-35 in Canadian Forces markings, 2010
The Lockheed Martin F-35 Lightning II Canadian procurement refers to Canada's ongoing efforts to acquire the F-35 Joint Strike Fighter (JSF) to replace the aging fleet of CF-18 Hornets used by the Royal Canadian Air Force (RCAF). Canada's involvement with the F-35 program began in 1997 under a Liberal government, but the program has since become a longstanding political controversy due to questions over cost, transparency, and procurement procedures.
Canada's entry into the JSF program began in 1997 when the government contributed US$10 million to the Concept Demonstration Phase. This allowed Canadian companies to compete for contracts and gain insight into early aircraft development. In 2002, Canada deepened its involvement by becoming a Level III industrial partner during the System Development and Demonstration Phase, investing an additional US$150 million through the Department of National Defence (DND) and Industry Canada.[1][2]
On 16 July 2010, Prime Minister Stephen Harper's Conservative government announced its intention to procure 65 F-35A aircraft to replace the CF-18 fleet. The government estimated acquisition costs at C$9 billion, rising to C$16 billion when sustainment and personnel costs were included.[3]
Controversy Over Procurement
Criticism quickly emerged due to the lack of a competitive bidding process. The decision to sole-source the contract from Lockheed Martin was seen as bypassing established procurement standards. Critics in Parliament and the media raised alarms about rising costs, uncertain capabilities, and lack of transparency.[4]
In March 2011, the Conservative government was found in contempt of Parliament for refusing to disclose detailed cost estimates, marking the first time a Canadian government had been cited for contempt. This event triggered a non-confidence vote and led to the 2011 federal election.[5][6]
Industrial Participation and Partner Role
An F-35 test aircraft bearing flags of partner nations including Canada
As a Level III industrial partner, Canada was entitled to bid on contracts related to production, sustainment, and development of the F-35. According to Alan S. Williams, the primary motivation was to gain early access for Canadian industry, rather than a direct commitment to purchase the aircraft.[1]
By 2012, Canadian companies had received 144 contracts totaling over US$490 million. Industry Canada estimated potential benefits of up to US$9.9 billion through Canadian participation, though such benefits were contingent on Canada committing to buy the aircraft.[7]
Auditor General and KPMG Reports
In April 2012, Auditor GeneralMichael Ferguson released a report stating that Parliament had been misled about the true costs and that DND had understated lifecycle costs by billions.[8]
Later that year, the government hired KPMG to conduct an independent review of the procurement. The report revealed that the full lifecycle cost of the F-35 over 42 years would be C$44.8 billion — far higher than previous estimates. This led to a freeze on the project and the creation of the National Fighter Procurement Secretariat to reassess Canada’s fighter options.[9]
2015 Liberal Government Reversal
A Lockheed Martin advertisement on a bus in Ottawa in 2013.
During the 2015 federal election, Justin Trudeau’s Liberal Party promised to cancel the F-35 acquisition and launch a new open competition. The party’s platform argued that the F-35 did not meet Canada’s defence needs and represented unnecessary expense.[10]
Despite this commitment, the Liberal government permitted the F-35 to compete in a new process launched in 2017. As an interim measure, Canada purchased 18 used F/A-18 Hornets from Australia to maintain fleet readiness.
Competitive Process and Final Selection
In 2019, the government issued a formal Request for Proposals (RFP) with three contenders: the Lockheed Martin F-35A, the Boeing Super Hornet, and the Saab Gripen E. In March 2022, the government announced that the F-35A had been selected as the preferred bidder.[11]
In January 2023, the Department of National Defence confirmed that the first 16 aircraft would be delivered by 2026, with full fleet capability achieved by 2033. The total cost for 88 aircraft is expected to be approximately C$19 billion.
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