Feds select Boeing in sole-source deal for military planes, bypassing Bombardier

The federal government has landed on Boeing Co. to replace the military's aging patrol planes in a multibillion-dollar sole-source deal, closing the door on Quebec-based business jet maker Bombardier Inc., which had been pushing for an open bid.

Last week, cabinet green-lit the purchase of 16 P-8A Poseidon surveillance aircraft from the U.S. manufacturing giant to replace the half-century-old CP-140 Auroras, according to three sources who were not authorized to speak publicly on the matter.

Two of the sources, including a senior government official, said the Treasury Board held a special meeting Tuesday night and approved the contract, which a U.S. agency has listed at US$5.9 billion (C$8 billion). The rubber stamp came days before the offer was set to expire at the end of the month.

Defence Minister Bill Blair, Procurement Minister Jean-Yves Duclos and Industry Minister François-Philippe Champagne are expected to make the announcement Thursday, sources said.