Canada is poised to buy 65 Lockheed Martin Corp F-35 Joint Strike Fighter jets, sources familiar with the process told Reuters, marking a major renewal of Canada's fighter fleet and helping contain costs of the expensive defense program.
An 18-month review of Canada's fighter jet needs has concluded that the government should skip a new competition and proceed with the C$9 billion ($8.22 billion) purchase, three sources said.
The decision must still be finalized by Prime Minister Stephen Harper's cabinet. The government is likely to face fierce criticism from opposition politicians concerned that the contract is being awarded without an open competition. Similar concerns over sole-sourcing and costs derailed the purchase two years ago.
A spokesman for Harper's office said there was nothing to announce yet.
However, the sources said the recommendation was expected to lead to formal approval of the F-35 purchase. They said Harper and key cabinet members supported the decision.
Canada's planned purchase is the 6th-largest by a country and would further safeguard the $399 billion program. Its rising costs had sparked fears of a "death spiral," in which countries cut plane orders, driving up the price of remaining planes and triggering further cancellations.
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