Department of National Defence

Department of National Defence

June 08, 2012 14:35 ET

Minister Fantino Highlights Support for Canadian Army and Canadian Workers

Welcomes milestone in delivering armoured patrol vehicles for the Canadian Forces

CFB GAGETOWN, NEW BRUNSWICK--(Marketwire - June 8, 2012) - The Honourable Julian Fantino, Canada's Associate Minister of National Defence, today welcomed the decision by the Government of Canada that Textron Systems Canada Inc., of Ottawa, Ontario, has been selected to provide the Canadian Army with 500 Tactical Armoured Patrol Vehicles (TAPV). This successful awarding of two contracts resulted from a fair, open and transparent competitive process. These contracts will support the Canadian Army by providing them with the new equipment they need, while creating jobs across our country.

"Today's milestone once again demonstrates our commitment to supporting our brave men and women in uniform, while creating and supporting skilled jobs across Canada," said the Honourable Julian Fantino, Associate Minister of National Defence. "Our investments in the Canadian Army now will provide our troops with the modern equipment they need to conduct their missions safely and effectively for decades to come."

The TAPV project is one of four Family of Land Combat (FLCV) projects announced at CFB Gagetown in July 2009. These new vehicles represent an improvement over our Canadian Army's LAVII (Coyote) and the Armoured Patrol Vehicles (RG-31) with the delivery of a strengthened degree of survivability to its crew. Once in service, these vehicles will perform a number of critical roles, including reconnaissance and surveillance, command and control, and cargo and armoured personnel carrier.

"Today's announcement is great news for our soldiers," said Brigadier-General C.C. Thurrott, Commander of Land Force Atlantic Area (LFAA). "These vehicles will provide the men and women of the Canadian Army with an excellent multi-role combat capability, protecting them from a variety of threats, while enabling them to remain mobile and agile when executing a wide variety of missions."

Today's announcement is subject to the Government of Canada's Industrial Regional Benefits policy, supporting skilled Canadian workers and economic growth. One hundred per cent of the value of these contracts must be re-invested by Textron Systems Canada Inc. in the Canadian economy - a total of $708.7 million.

This agreement commits the contractor to re-investing at least 25 per cent of the acquisition contract of $603.3 million and 40 per cent of the sustainment contract of $105.4 million in the creation of new skilled work in the manufacture and long-term support of the TAPV in Canada. Total project costs associated with this procurement approved by Treasury Board is $1.25 billion.

"Our government is delivering results on its objectives of giving the Canadian Forces the tools they need, while creating skilled jobs," said Minister Fantino. "Canada currently has over 60 major procurements subject to our industrial regional benefit policy, with over $22 billion in industrial regional benefit activity underway."

There are approximately five years of in-service support included in the support contract, with options extend by 20 one-year periods to cover the life expectancy of the vehicle, estimated at 25 years.

First deliveries of the TAPV are expected in 2014. Full Operational Capability is expected in 2016. Announcements of Canadian companies whose skilled workers are benefitting from additional work created by this important investment in the CF will be forthcoming in due course.

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