Government of Canada extends contract to maintain mission-critical equipment for Canadian Armed Forces
Press Release
May 15, 2026 - Ottawa, Ontario
Today, the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), announced that the Government of Canada has signed two amendments to an existing contract with Lockheed Martin Corporation for maintenance and upgrades on the CC‑130J Hercules fleet.
The first amendment, valued at $462.5 million (USD), will prolong in-service support for the fleet until June 2029. The second amendment, valued at an estimated $684.3 million (USD), will integrate the RCAF 105 upgrades to the entire fleet.
With these amendments, the contract will continue to create and maintain high-skilled, well-paying jobs and generate growth for Canadian industry. The amendments are also critical to ensuring that the Royal Canadian Air Force (RCAF) can continue to maintain its wide range of missions, including troop transportation, tactical airlift and aircraft maintainer training, safeguarding its capability to maintain global airlift capabilities.
The in-service support amendment will be primarily completed by Lockheed Martin and its subcontractors at various facilities in Canada and the United States, including Trenton, Ontario. In‑service support work is also expected to continue at the Cascade Aerospace facility in Abbotsford, British Columbia, and the Standard Aero facility in Winnipeg, Manitoba, annually contributing $85 million to Canada’s gross domestic product (GDP) and creating or maintaining 620 Canadian jobs.
The RCAF 105 upgrades will provide the Canadian Armed Forces (CAF) with new technologies to enhance the efficiency and safety of air traffic management. Continuous updates in navigation, communication, flight management and avionics systems are essential for compliance in both civil and military airspace. The RCAF 105 upgrades will support 525 Canadian jobs and contribute $70 million to Canada’s GDP annually. In addition, Lockheed Martin will ensure Canadian industry is a key partner to install these upgrades on Canada’s fleet, creating further economic benefits at home.
Since 2009, this contract has positioned Canadian industry well for export opportunities. Companies such as Cascade Aerospace have developed partnerships with Lockheed Martin and have long been engaged in this type of work, demonstrating longstanding capability and competitiveness in global markets. This project elevates existing strengths and enables Canada to further leverage domestic expertise for national benefit, while simultaneously enhancing visibility and credibility abroad.
The Government of Canada is modernizing and improving defence procurement through the newly established Defence Investment Agency (DIA). By streamlining decisions and centralizing expertise, the Agency is accelerating the delivery of mission-critical equipment to the CAF.
The Agency’s mandate includes engaging industry earlier in the procurement process, supporting innovation and aligning procurement strategies with partner nations to deliver results faster.
Through these efforts, Canada is demonstrating leadership in building resilient defence industrial partnerships that strengthen our alliances, diversify our partnerships and create opportunities for Canadian industry to innovate and compete globally.
The changes will help ensure that CAF members have the tools they need to fulfill their missions and keep Canadians safe, while creating good-paying jobs and generating better economic value for Canadians.
Quotes
“Today’s announcement is a testament to the Government of Canada’s commitment to supporting members of the Canadian Armed Forces. The amendments to the CC‑130J contract will ensure that our members have the advanced equipment they need to do their jobs and keep Canadians safe, while maintaining highly skilled jobs here in Canada.”
The Honourable Stephen Fuhr
Secretary of State (Defence Procurement)
“The CC-130J Hercules is a critical part of the Canadian Armed Forces’ transport fleet. These contract amendments will help ensure the aircraft remains operational and mission-ready for years to come, while supporting skilled jobs and industrial expertise across Canada.”
The Honourable David J. McGuinty
Minister of National Defence
“This contract will support high-skilled jobs across Canada and strengthen our defence industrial base, delivering real economic benefits to communities. Our government is committed to ensuring the brave women and men in the Canadian Armed Forces have the reliable, modern capabilities they need to defend Canada’s sovereignty, support our allies, and carry out their missions at home and abroad.”
The Honourable Mélanie Joly
Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
Quick facts
On December 20, 2007, the Government of Canada awarded a $1.44 billion (USD) contract to Lockheed Martin Corporation to acquire 17 CC‑130J aircraft to replace its aging CC-130 Hercules E-model fleet.
In-service support for the fleet was added through a contract amendment on December 18, 2009.
Full commitment to the Industrial and Technological Benefits Policy applies to the contract values of both the in-service support of the CC‑130J Hercules fleet and the RCAF 105 upgrades, which will ensure strong economic benefits equal to the value of these contract amendments.
Lockheed Martin Corporation has achieved all targets to date and remains on track to fulfill the remaining obligations.
Noah Note: Another contract that fell under the DIA banner, and one that was desired to be completed. Notice how quickly the DIA is aiming to complete its initial tranche of projects that it was set out to complete.
Now keep in mind that AEWC and CPSP are one of the few remaining on their OG docket (note: the dia has added more projects since)
DIA's really striking against the delivery KPIs set out for it. Other government agencies should be brought up to similar standards before the end of the year if things are to change.