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Lockheed Martin (NYSE: LMT) announced successful completion of contracted Industrial and Regional Benefits (IRB) in Canada — valued at just over $1.5 Billion USD — associated with three Canadian defence procurement programs:
- Canada’s Halifax Class Modernization Design and Build program for the Royal Canadian Navy. (Economic impact valued at over $1.14 Billion)
- Canada’s P-3 Aircraft Service Life Extension Program (ASLEP) for the Canadian Forces’ CP-140 Aurora aircraft fleet. (Economic impact valued at over $265 Million)
- Canada’s procurement of the Advanced Multi-Role Infrared Sensor (AMIRS) to upgrade the Canadian Forces CF-18 aircraft fleet. (Economic impact valued at over $160 Million)
“These investments made across Canada demonstrate how defence procurement serves as a catalyst for innovation, research and economic development,” said Lorraine Ben, chief executive, Lockheed Martin Canada. “We’re proud to support the Canadian Armed Forces while simultaneously creating opportunities where local businesses and academic institutions can innovate and build their expertise.”
Lockheed Martin Canada was the prime systems integrator for the Halifax Class Modernization project, a seminal program for the Royal Canadian Navy, focused on upgrading a suite of systems onboard the 12 Halifax Class frigates, including the Canadian-developed combat management system CMS 330. Modernized ships have returned to the fleet and are now conducting Canada’s important missions.
The ASLEP contract was awarded to Lockheed Martin in 2008 and provides Life Extension Kits to the CP-140 Aurora fleet, which includes 14 aircraft. The Life Extension Kits increase the average service life of the aircraft by an additional 20-to-25 years and greatly reduces the maintenance costs over the aircraft’s lifetime.
Lockheed Martin’s AMIRS targeting pod is an externally mounted reconnaissance and targeting device that enables a very capable airframe to perform multi-missions.
Guided by Canada’s original IRB Policy, now evolved to Canada’s Industrial and Technological Benefits (ITB) policy, Lockheed Martin generated robust economic activity in Canada associated with these programs that involves a wide range of academic institutions and small-and-medium sized businesses. On the AMIRS program alone, the economic impact valued at over $160 Million overachieved the IRB contract obligation six fold.
A total of 93 Canadian organizations benefited from their inclusion in these programs, either through direct involvement across the supply chain or through investments made by Lockheed Martin:
- For HCM DAB this includes several Canadian products and systems; Tactical Data Links, Infrared Design, Electronic Warfare Upgrades, and HCM capable simulators and adaptors to name a few. This program enabled significant exports, university investments and internal research and development.
- For ASLEP this includes detailed parts assembly, software assurance and other manufacturing needs. The University of New Brunswick, Conestoga College, the University of Northern British Columbia, the University of Toronto and the British Columbia Institute of Technology are among the academic institutions that benefited from research investments made by Lockheed Martin.
- For AMIRS this includes procurement of a diverse array of products from Canada including precision castings, electro-optical turrets, satellite payloads, ruggedized embedded computers, laser detector chips, underwater robotics, and more. Quebec and Atlantic province firms were outstanding suppliers and enabled Lockheed Martin to exceed its IRB commitment.
This press release was prepared and distributed by Lockheed Martin Canada
