GATINEAU, QUEBEC -- (Marketwire) -- 12/17/12 -- The Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, and the Honourable Bernard Valcourt, Associate Minister of National Defence, Minister of State (Atlantic Canada Opportunities Agency) (La Francophonie), today announced more support for the Canadian Armed Forces through a $10.8-million (taxes included) definition phase contract with General Dynamics Land Systems - Canada for the Light Armoured Vehicle Reconnaissance Surveillance System Upgrade Project.

"This announcement is good news for our Canadian Armed Forces, for Canadian workers, and for the Canadian economy," said Minister Ambrose. "In turn, this upgrade will help to protect our women and men in uniform while they are working in land combat vehicles."

"Our Government is delivering on its commitment under the Canada First Defence Strategy by giving our troops the tools they need, while benefitting Canadian industry," said Minister Valcourt. "Through this investment for our soldiers, our Government is contributing to the economic health of communities and industries across Canada."

On November 9, 2012, the Government of Canada announced a contract amendment to General Dynamics Land Systems - Canada for the upgrade of 66 additional Light Armoured Vehicle (LAV) IIIs under the LAV III Upgrade implementation phase contract to support the Canadian Forces' reconnaissance and surveillance capability.

Under this definition phase contract for the Light Armoured Vehicle Reconnaissance Surveillance System Upgrade Project, General Dynamics Land Systems - Canada will define, analyse and select an enhanced surveillance suite for integration onto the LAV III Upgrade vehicle.

Following the successful completion of the definition phase contract, Canada will negotiate an implementation phase contract with General Dynamics Land Systems - Canada for the delivery of 66 Upgraded Light Armoured Reconnaissance Vehicles, which will be fully integrated onto the upgraded Light Armoured Vehicle platforms.

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Background

Light Armoured Vehicle Reconnaissance Surveillance System Upgrade Project

The current Coyote reconnaissance fleet is a one-of-a-kind system designed and deployed in the early 1990s that is facing serious obsolescence issues. The Coyote has formed the backbone of the Land Force reconnaissance and surveillance capability and has been deployed on every major Canadian Armed Forces operation, both in Canada and overseas. The conflict in Afghanistan has reconfirmed that modern operations are complex and dangerous, characterized by larger areas of responsibility that necessitate greater surveillance capabilities, increased speed of action and more effective transfer of information to build and maintain situational awareness with respect to enemy locations and intentions. Aging technologies, growing obsolescence and susceptibility to battlefield damage have emphasized an immediate need to take advantage of improved technologies so that the Canadian Armed Forces are able to maintain a credible and relevant ground surveillance capability during future operations.

The Light Armoured Vehicle Reconnaissance Surveillance System Upgrade Project will procure 66 vehicles, which will be referred to as the Upgraded Light Armoured Reconnaissance Vehicle, and will replace 70 per cent of the current Coyote fleet. The surveillance system will consist of electro-optic sensors for long-range day/night visibility, thermal imagery, range detection and the integration of radar. The Operator Control Station is envisaged as cutting-edge technology that will provide crew members with a digital human-machine interface to exploit battlefield sensors. The Upgraded Light Armoured Reconnaissance Vehicles will be "dual capable," which means that sensors can be mounted on a vehicle's integrated and extendable mast or mounted on a tripod up to 200 metres away from the vehicle. The crew will also have the ability to conduct reconnaissance operations while on the move or in a silent watch mode.

The Light Armoured Vehicle Reconnaissance Surveillance System Upgrade Project has recently utilized an existing contract option in the Light Armoured Vehicle Upgrade Project's contract with General Dynamics Land Systems - Canada to upgrade an additional 66 Light Armoured Vehicle III platforms, which will be purpose-built for their ground surveillance role. The upgraded Light Armoured Vehicle III platform will ensure the reconnaissance vehicle remains highly protected, operationally mobile, and tactically agile for the Land Forces domestic and expeditionary task forces. This $151-million (taxes included) contract amendment was announced by the Government of Canada on November 9, 2012.

On December 17, 2012, the Government of Canada awarded a $10.8-million (taxes included) contract to General Dynamics Land Systems - Canada. This definition phase contract will include engineering studies, trials, integrated logistics, and a joint industry-Government of Canada-run competition to select and integrate a new state-of-the-art surveillance system onto the upgraded Light Armoured Vehicle platform. To ensure a fair competitive process, the contract includes provisions detailing General Dynamics Land Systems - Canada's responsibilities with respect to subcontracting and provides Canada with equal participation and approval of the competitive procurement process.

Following a successful definition phase, Canada will negotiate an implementation phase contract with General Dynamics Land Systems - Canada for the delivery of 66 Upgraded Light Armoured Reconnaissance Vehicles.

The Industrial and Regional Benefits Policy applies to both the Light Armoured Vehicle III Upgrade Project and the Light Armoured Vehicle Reconnaissance Surveillance System Upgrade Project, with the exception of the definition phases for both projects. The Industrial and Regional Benefits Policy ensures that economic benefits flow to Canada as a result of defence procurements, which means that General Dynamics Land Systems - Canada will be required to re-invest 100 per cent of the contract value in business activities in the Canadian economy, further expanding the economic benefits of this procurement in regions across the country.