Department of National Defence

Department of National Defence

August 11, 2009 09:02 ET

Government of Canada Contract Award to Benefit Economy

MIRAMICHI, NEW BRUNSWICK--(Marketwire - Aug. 11, 2009) - The Honourable Peter MacKay, Minister of National Defence and Minister for the Atlantic Gateway, today announced that the Government of Canada has awarded a $130 million contract to DEW Engineering and Development ULC for the provision of Special Equipment Vehicle (SEV) Baseline Shelters.

The SEV Baseline Shelters are being purchased for use with Militarized Commercial Off-the-Shelf (MilCOTS) Vehicles and Standard Military Pattern (SMP) Vehicles. All are elements of the Medium Support Vehicle System (MSVS) Project, which is providing replacements for the current fleet of medium logistics trucks and ancillaries.

"These made-in-Canada shelters are critical to conducting daily operations," said Minister MacKay. "Our government is committed to providing modern, reliable equipment to our people in uniform and this contract is another fulfillment of the Canada First Defence Strategy."

The $130 million contract was awarded to DEW Engineering following a competitive procurement process. DEW Engineering will be providing 895 Baseline Shelters, which will be transformed into workshops, offices, and medical and dental facilities, under a separate contract to be opened for competition in 2010.

In commenting on the announcement, the Honourable Christian Paradis, Minister of Public Works and Government Services Canada, said, "This contract will provide equipment to the men and women of our Forces that can be used in operations around the world. It will generate benefits for local businesses, providing jobs for Canadians and concrete results for our economy."

The vast majority of the work to construct the shelters is being done by a team of Canadian companies. This contract award under the SEV Baseline Shelters project will create and/or maintain over 200 jobs in British Columbia, New Brunswick, Nova Scotia, Ontario, and Quebec.

The Honourable Tony Clement, Minister of Industry, added, "The Industrial and Regional Benefits Policy applies to this contract, which means that DEW Engineering will generate one dollar of economic activity in Canada for every dollar it receives from the contract."

Under the MSVS project, a contract for the acquisition of 1300 MilCOTS Vehicles was awarded in January 2009. The Canadian Forces received the first MilCOTS Vehicles in July 2009.

The MSVS project also involves the acquisition of up to 1500 SMP Vehicles, up to 150 Armour Protection Systems, and up to 300 Load Handling System Trailers. A Request for Proposal for this equipment is expected to be released in late 2009 and a contract awarded in early 2011.

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