UPDATE 1-Canada changing rules for fighter jet competition to allow Lockheed Martin bid -source
The source, who requested anonymity given the sensitivity of the situation, said Ottawa was acting after the United States complained the original rules would exclude Lockheed Martin's F-35 fighter, the plane the Canadian air force wants. Canada initially said bidders for the contract - worth between C$15 billion and C$19 billion ($11.1 billion-$14.1 billion) - must commit to give Canadian businesses 100 percent of the value of the deal in so-called economic benefits. But that contradicts rules of the consortium that developed the F-35 fighter, a group of which Canada is a member.
The source said Ottawa would drop the requirement that firms give a legally binding guarantee they would spend the money in Canada. The planes will be judged on three criteria - capability, price and benefits. "A bidder that is not willing and able to sign a contract and guarantee them (the benefits) can still bid and still be competitive but they will get less points in the economic benefits category" than firms that do offer a watertight commitment, said the source.
The U.S. military's F-35 office wrote to Ottawa last December to say the plane would not take part in the competition unless Canada dropped the demand for benefits. (Reporting by David Ljunggren; Editing by Peter Cooney)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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