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Harper government wastes taxpayer funds with sole-sourced $16-billion contract

OTTAWA – The Harper Conservatives are wasting taxpayer funds by hastily forging ahead with a sole-sourced military aircraft contract worth up to $16 billion - without a shred of accountability to the people of Canada, Liberal National Defence Critic Ujjal Dosanjh said today.

"This wasteful government is giving away $16 billion in taxpayer money without a transparent bidding process," said Mr. Dosanjh. “It's outrageous, particularly from a government that has already racked up a record $54-billion deficit and blew more than $1 billion on a 72-hour G8/G20 meeting.” 

Last month it was revealed that the government was planning to use an Advance Contract Award Notice (ACAN) to advise the public that it intends to contract with one particular supplier, since National Defence officials only want the F-35 Joint Strike Fighters made by Lockheed Martin.

At that time, the estimated cost of the contract was upwards of $9 billion, not including maintenance costs. Media reports are now pegging the total cost with maintenance at up to $16 billion.

A 2007 report by Auditor General Sheila Fraser condemned the practice of using ACANs to expedite the purchase of military equipment, saying it is not a competitive process. As recently as a few weeks ago, Defence Minister Peter MacKay was talking about a more open and transparent process, and the absence of any public debate about the Forces' needs.

“Even the minister has reservations about this,” said Mr. Dosanjh. “How can we evaluate value for money without knowing the Forces’ operational needs or even the real price of the aircraft?

“Once again, I am calling for a competitive and transparent bidding process to select the next generation of fighter aircraft. We need to evaluate our needs and see what other companies may have to offer before making a decision of this magnitude,” he concluded.


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