To better leverage future investments in equipment for the Canadian Armed Forces, the Harper Government will work with industry sectors and stakeholders such as the Canadian Association of Defence and Security Industries (CADSI) to identify areas of Canadian competitiveness, as well as trends in global demand and supply in defence-related industries. Further, the Harper Government will ensure that all major procurements include a plan for participation by Canadian industry prior to approving the project.
This spring, the Harper Government will expedite the analysis of the recommendations made by Mr. Jenkins with respect to selecting a series of interim key industrial capabilities to help guide immediately pending defence procurement projects. The Harper Government will also develop a refined set of key industrial capabilities for use over the long-term and will examine how existing policies and programs can be tailored to support a Government-wide strategy while remaining cognizant of Canada's international trade obligations. At the same time, the Harper Government will reform the current military procurement process to improve outcomes. This will include thorough and rigorous options analyses, a challenge function for military requirements, early and frequent industry engagement, and strengthened oversight with the use of third-party expertise.
Light Armoured Vehicle III Upgrade Project
Canada's Light Armoured Vehicle (LAV) III-which has served the Canadian Armed Forces in Afghanistan and other areas of operation-is a state-of-the-art combat vehicle used to transport infantry on the battlefield while providing defensive protection and firepower.
The recent experiences of the Canadian Armed Forces and other nations in Afghanistan and other areas of operation continue to demonstrate the ongoing requirement for a highly protected, yet highly mobile, Light Armoured Vehicle.
The LAV III Upgrade Project is one of four Family of Land Combat Vehicles (FLCV) projects announced in July 2009, and it both capitalizes on existing and evolving technology and improves the protection, mobility and effectiveness of the LAV III fleet. The other FLCV projects are the Close Combat Vehicle, the Tactical Armoured Patrol Vehicle, and the Force Mobility Enhancement. These projects aim to provide the Canadian Armed Forces with the next generation of land combat vehicles.
The upgrade project modernizes a portion of the existing LAV III fleet to ensure that it remains a highly protected and operationally mobile combat vehicle and the backbone of domestic and expeditionary task forces.
This project extends the lifespan of the LAV III to 2035.
In July 2010, General Dynamics Land Systems - Canada (GDLS - C), the original equipment manufacturer, was awarded a contract to determine the scope of the work required to upgrade the vehicle.
GDLS - C built model Risk Reduction Units, which are LAV IIIs fitted with the various planned upgrades. The Risk Reduction Units were delivered in the fall of 2010. General Dynamics Land Systems - Canada then conducted rigorous testing and validated the performance of the selected upgrade packages.
In October 2011, GDLS - C was awarded a $1.064 billion non-competitive contract to perform upgrades to 550 LAV III vehicles, with an option for additional deliveries.
The following upgrades will be performed on the LAV III:
-- upgrade of mobility systems such as the power train, suspension, running gear and brakes;-- upgrade of the weapon system;-- installation of additional armour, strengthening its protection against increased threats; and-- improved crew ergonomics.
This work is necessary to improve the protection of this vehicle against mines and improvised explosive devices; improve its mobility; improve the safety of Canadian Armed Forces members travelling on board the upgraded LAV III; and incorporate ergonomic and information management improvements.
In October 2012, GDLS - C was awarded a contract amendment for the additional delivery of 66 upgraded LAV IIIs to support the Canadian Armed Forces' reconnaissance and surveillance capability. On January 24, 2013, the Harper Government announced the delivery of its first upgraded LAV III vehicle.
General Dynamics Land Systems - Canada has facilities in both Edmonton and London. This contract will sustain high-value, high-tech jobs. This work will help to maintain employment for approximately 2,400 GDLS - C personnel in London and Edmonton, as well as for the employees of the company's supplier base of 500 Canadian companies. Approximately 40 per cent of the work will be done at GDLS-C's Edmonton facility and 60 per cent at GDLS-C's London facility.
The Industrial and Regional Benefits (IRB) Policy applies to this contract. The IRB Policy ensures that defence procurements are leveraged to generate economic benefits to Canada, which means that General Dynamics Land Systems - Canada is required to place 100 per cent of the contract value in business activities in the Canadian economy. For a list of Government of Canada procurements where the IRB Policy applies, see http://www.ic.gc.ca/eic/site/042.nsf/eng/h_00017.html.
Office of the Honourable Rona Ambrose
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