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Canada is on the brink of finalizing a major defense acquisition, with plans to award a significant sole-source contract to Boeing for its P-8 Poseidon maritime patrol aircraft. This decision is aimed at replacing the nation’s aging military surveillance planes, as confirmed by a senior government source who spoke to Reuters under the condition of anonymity.

This imminent announcement, expected on Thursday, will bring an end to the prolonged period of speculation surrounding this deal. This development emerges amidst calls for an open competition by Canadian private planemaker Bombardier, who expressed interest in submitting a bid using its Global business jets.

Bombardier’s version of a surveillance aircraft. 

In March, the Canadian government indicated its preference for Boeing’s P-8A Poseidons to upgrade its fleet of CP-140 Aurora aircraft. The government’s position was that the P-8 Poseidon was the only available aircraft that meets all its operational needs.

While Bombardier has reserved its comments until an official notification from the government, Boeing has not yet provided any comments on this development. The contract, once finalized, is set to be a substantial investment for Canada’s defense capabilities, marking a significant step in modernizing its military surveillance and patrol fleet.