Government of Canada Awards Contracts for Leading-edge Technology to Support Our Troops

SAINT-JEAN-SUR-RICHELIEU, QUEBEC--(Marketwired - July 27, 2015) - Public Works and Government Services Canada/National Defence

The Honourable Jason Kenney, Minister of National Defence, on behalf of the Honourable Diane Finley, Minister of Public Works and Government Services, today announced the awarding of contracts worth potentially more than $493 million to Rheinmetall Canada Inc. of Saint-Jean-sur-Richelieu, Quebec, to provide much-needed equipment for the Canadian Armed Forces-an Integrated Soldier System and a Medium Range Radar System.

The Integrated Soldier System Project is a suite of military equipment that is vital to the effectiveness and protection of frontline soldiers on a modern battlefield. It includes weapon accessories and electronics that allow soldiers to stay connected with their teams after exiting vehicles on the battlefield. It also features a radio, a smartphone-like computer to run battle management software, a global positioning system and a communications headset. Rheinmetall Canada Inc. has won a contract for an initial $8.5 million to test a new capability. Once the Government declares the system fully acceptable, it may exercise options under this contract to buy up to 4,144 of these systems and to award a second contract for related support. The total value of both contracts could reach $250 million, creating and maintaining 51 jobs in Saint-Jean-sur-Richelieu, Quebec.

The Medium Range Radar Project will give the Canadian Armed Forces 10 radar systems that can be transported into an operation by truck. These radar systems will give Canadian Armed Forces soldiers the ability to detect the point of origin of indirect weapons fire, such as mortars, artillery or rockets. They will also allow soldiers to track multiple airplanes, helicopters or other airborne threats in and around where troops are operating. This can help save the lives of soldiers and civilians. The Government has awarded two contracts to Rheinmetall Canada Inc. The first contract is to procure 10 Medium Range Radar Systems within three years, and a second contract is for related in-service support. The potential value of both contracts is $243.3 million; they are expected to create and maintain 30 positions in Saint-Jean-sur-Richelieu, Quebec.

These contracts were awarded as a result of competitive procurement processes.

Quick Facts

- The Integrated Soldier System Project contracts include the requirement to invest 100 per cent of the value of the contracts as per the Industrial and Regional Benefits Policy.

- Rheinmetall Canada Inc. will complete the testing of the new soldier systems by spring 2016. Once testing has been completed, and if options are exercised, the delivery of the new soldier systems should begin in late 2016.

- The Integrated Soldier System Project and the Medium Range Radar procurement were the first to successfully test pilot a new two-step bid evaluation process. This process aims to eliminate the disqualification of proposals due simply to administrative errors.

- The Medium Range Radar contracts are aligned with the Defence Procurement Strategy, which has three objectives: ensuring our men and women in uniform get the equipment they need at the right price for taxpayers; leveraging the purchase of defence equipment to create domestic jobs and growth; and streamlining defence procurement processes.

- The Medium Range Radar procurement was one of the first procurements to successfully implement the new Defence Procurement Strategy by using the Industrial and Technological Benefits Policy's Value Proposition to rate and weight bid proposals.

- The delivery of the radar systems is expected to begin in 2017.

Quotes

"Our Government is proud to provide leading-edge technology to our troops so they can effectively deliver their missions, while remaining focused on what matters to Canadians-jobs, growth and economic prosperity. These contracts will create and maintain more than 80 jobs for skilled workers in Saint-Jean-sur-Richelieu, Quebec."

The Honourable Diane Finley, Minister of Public Works and Government Services

"I'm pleased to announce that we're moving forward with yet another procurement of key equipment for the brave men and women of the Canadian Armed Forces. Both the Integrated Soldier System Project and the Medium Range Radar Project will be responsible for bringing new technology to the battlefield and for providing commanders the information they need in order to fight and to win."

The Honourable Jason Kenney, Minister of National Defence

Associated Links

National Defence's Integrated Soldier System Project

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