If the federal government cancels its orders for the new F-35 joint strike fighter aircraft, Canadian industry could lose out on untold millions worth of future contracts associated with the aerospace program.
Paul Lindahl, CEO of Vancouver’s NGRAIN, said, “As a software company in Vancouver, it’s not every day you become an integral part of one of the largest aircraft programs in history.”
The company, which gained prominence as a developer of interactive 3D simulation for the aerospace and defense industry, already has some of its software in the F-35.
NGRAIN worked with Lockheed Martin to create the software that is used to assess damage to the aircraft that could compromise its flight performance.
The company is currently negotiating a 20-year support agreement for the software with Lockheed. However, the agreement could be scuttled if the government stops participating in the program by not purchasing the jets.
“All partner countries that are buying the jets have an opportunity to have their industry participate in its development,” said Lindahl. “Anyone who isn’t a partner country doesn’t get the business.”
Lindahl could not put a dollar value on the impact such a scenario could have on his company, but it would be significant.
“There’s a huge opportunity for us within that aircraft platform that hasn’t been awarded yet. They’re only flying prototypes now.”
But the program has already provided additional business beyond the F-35 itself.
After the U.S. Air Force saw the software NGRAIN created, it decided to include it in other aircraft. NGRAIN also won work with an Australian engineering firm because of its involvement in the F-35 program.
“Outside the program there have been all sorts of indirect opportunities. For us, it means a lot of business over a lot of years.”
Delta-based Avcorp Industries Inc. (TSX:AVP), a supplier of airframe structures, has signed a deal with BAE Systems Operations Ltd. for the production of aerostructure assemblies for the aircraft carrier variant of the F-35 to be used by the U.S. Navy (See "Avcorp lands signficant fighter jet wing assembly contract " – BIV Daily edition, July 21).