Public Works and Government Services Canada

Public Works and Government Services Canada

March 09, 2009 10:00 ET

Government Awards Military Procurement Contracts to Canadian Firms and Injects Millions Into the Canadian Economy

GATINEAU, QUEBEC--(Marketwire - March 9, 2009) - The Honourable Christian Paradis, Minister of Public Works and Government Services Canada, the Honourable Peter Gordon MacKay, Minister of National Defence and Minister for the Atlantic Gateway, and the Honourable Tony Clement, Minister of Industry, today announced that the Government of Canada awarded two contracts to support the Land Command Support System (LCSS).

The LCSS integrates numerous Army-wide command and control, communications and computing systems through one highly advanced tactical system. The first contract was awarded to Thales Canada Incorporated for software support, with a second going to General Dynamics Canada for engineering and integration support of the system.

"This government is delivering state-of the-art equipment for our forces and concrete results for our economy," said Minister Paradis, adding "Canadian companies are the most competitive in the world and this government is leveraging defence spending to ensure high-technology jobs are created, and kept, in Canada."

"The Land Command Support System is one of the Army's most critical tools that help to save lives and win battles," said Minister MacKay. "These contracts will ensure the Canadian Forces will continue to receive the cutting edge technology it needs to get the job done."

Both contracts are for five years, with the government having the option of exercising five additional one-year terms. They will provide the LCSS with effective and efficient in-service support and related services. Both companies will be performing the work in Canada injecting millions into the Canadian economy.

The Industrial and Regional Benefits (IRB) policy seeks to maximize economic benefits from major military procurements, notably when the potential for significant foreign sourcing is required to meet technical requirements. In this instance, the IRB policy will be applied to the LCSS contract in order to ensure that maximum economic benefit is leveraged from these purchases. This will deliver a boost to the Canadian economy by creating high-value, long term business opportunities linked directly to the procurements per se, as well as enable Canadian firms to access other high-value business prospects within the prime contractor's business portfolio.

"I am pleased that these companies will be undertaking a significant amount of the work under these contracts in Canada," said Industry Minister Clement, "It proves the Canadian suppliers can compete with the best in the world. The IRB policy ensures that this acquisition will produce a positive economic impact by guaranteeing that a significant amount of high-value work is generated in Canada."

PWGSC news releases are also available on our Internet site at:

Media can download footage of elements of the LCSS in use from the Combat Camera website: under the title "Army Land Command Support System."


The Government of Canada is providing the Canadian Forces with the equipment they need to operate at home and abroad, while creating jobs and supporting our home-grown industries.

The Land Command Support System (LCSS) is a highly integrated tactical system composed of many sub-systems that support Army-wide command. It forms a part of every platform-based Army weapon system and is made up of numerous hardware, firmware and software elements.

The LCSS brought the capabilities delivered under three separate legacy projects: 1) Tactical Command Control and Communications System, 2) Land Force Command System, and 3) Position Determination and Navigation for Land Forces. The LCSS will continue to evolve over time thanks to initiatives such as the Intelligence Surveillance Target Acquisition and Reconnaissance Project, the planned LCSS Life Extension Project, and other related endeavors.

The software contract, with an estimated value of $184 million (GST included), will provide long-term software support, replacing four short-term support contracts with a software suite of commercial off the shelf military software and client-developed applications.

This engineering and integration contract, with an estimated value of $341 million (GST included), provides for in-service support, primarily consisting of engineering and integration related services along with life-cycle materiel management support services.

Through industrial and regional benefits, the engineering and integration contract will also boost the Canadian economy by providing for 100 percent of the value of the contract in direct and indirect industrial and regional benefits. This means that under the terms of the contract, General Dynamics Canada is required to invest in the Canadian economy, dollar for dollar, what it receives from the contract.

LCSS will continue to provide the men and women of the Canadian Forces with the highly integrated command and control communications system they need.

Ce texte est egalement disponible en francais.

Contact Information

  • Office of the Honourable Christian Paradis
    Minister of Public Works and Government Services
    Mary-Ann Dewey Plante - Press Secretary
    Public Works and Government Services Canada
    Media Relations
    Office of the Honourable Peter MacKay, Minister of National
    Defence and Minister for the Atlantic Gateway
    Jay Paxton - Press Secretary
    Department of National Defence
    Media Liaison Office
    Office of the Honourable Tony Clement
    Minister of Industry
    Pema Lhalungpa - Press Secretary
    Industry Canada
    Media Relations