Canada is terminating $55 million tactical-control radar units to support CF-18 fighter jet contract due to delays and cost over-runs.
The Canadian government decided to terminate the November 2010 contract awarded to Thales Canada which was to supply two new tactical-control radar units that support CF-18 fighter jets. Thales won the tender over one other bidder.
The defense department documents show costs had risen by more than 50 per cent by 2013.
"In February 2015, Canada and Thales reached agreement in principle to terminate this contract by mutual consent," Public Works spokeswoman Annie Trepanier was quoted as saying by CBC news Sunday.
"Public Works is working with DND (Department of National Defense) to identify an appropriate path forward to meet their long-term capability needs on this project," Trepanier said.
National Defense documents indicate the military had spent at least $6.5 million on the doomed project by 2013.
The botched deal is yet another military procurement gone sour, alongside the more high-profile F-35 Stealth Fighter project, the Cyclone helicopter purchase to replace the aging Sea Kings, and used British submarines that have been sinkholes for maintenance and repair dollars.
The deal for two Ground Master 400 air-defense radars, a product launched by Thales in 2008, was to replace existing equipment acquired in 1991.
The France-based parent of Thales Canada, Thales Group, said its Ground Master 400 systems have been sold to Germany, Finland and Malaysia, among others.
Canada's existing tactical radar systems are designed to be mobile, and have been deployed to Germany in 2000, Florida in 2008, and to Resolute Bay, Nunavut, in May this year, among other locations. Most of the time, they support Norad fighter-jet training at their home bases by providing a comprehensive picture of the skies up to 450 km away.