The federal government has announced a $225 million defence contract for Abbotsford's Cascade Aerospace Inc. – the amount for which took the company by surprise.
The contract is to provide maintenance on the avionics system (navigation and communications) for Canada's CC-130H Hercules fleet.
"The industrial and regional benefits policy encourages high-quality and advanced technology business opportunities for Canadian companies," Industry Minister Christian Paradis said in a government press release.
"It exposes our firms to global markets and fosters the development of long-term business relationships. These contracts are more great examples of how our procurement system brings economic benefit to regions across the country and continues to support our industry as a global leader."
Reached for comment, a Cascade spokesperson expressed surprise at the contract amount cited.
The funding is under a five-year contract that can be renewed out to 2035. The company had expected the first five years of funding to be announced, but the government's announcement of $225 million is for the full period extending to 2035, which means the contract is expected to be renewed.
