Government of Canada announced major investments in Canadian Armed Forces

News Release / April 11, 2013 / Project number: NR 13.099

TRENTON, Ont. – Today, Mr. Chris Alexander, Parliamentary Secretary to the Minister of National Defence, on behalf of the Honourable Kerry-Lynne D. Findlay, Q.C., Associate Minister of National Defence and Member of Parliament for Delta – Richmond-East, accompanied by Mr. Rick Norlock, Member of Parliament for Northumberland-Quinte West, announced two significant contract awards representing over $300 million in investments in equipment and maintenance for the Canadian Armed Forces.

Specifically, Mr. Alexander announced that Cascade Aerospace Inc. of Abbotsford, B.C. has been awarded a contract worth up to $225 million for maintenance services on Canada’s CC-130H Hercules fleet’s avionics system.

He also announced the Government has awarded a $75.5 million contract to Cassidian, the defence and security division of the European Aeronautic Defence and Space Company (EADS) of Munich, Germany, for new surveillance radar and secondary surveillance radar systems at six Royal Canadian Air Force airstrips, including two located at Trenton.

“These contracts are the latest examples of our Government’s commitment to ensuring that our men and women in uniform have the proper resources to conduct their important missions”, said Mr. Alexander.

“Our government is proud of its ongoing investment in defence equipment,” said Minister Findlay. “At the same time, these investments are also contributing to the economic footprint in communities across Canada, either directly or through industrial regional benefits, and bringing economic benefits to Canadian industry.”

The performance-based contract for the CC-130H is a cost-effective solution that allows National Defence to leverage military and Canadian industry resources to ensure the highest level of effectiveness and efficiency for the Hercules legacy fleet.  It bundles several smaller contracts under a broader framework, making Cascade Aerospace the prime service provider for various elements of the avionics systems. These elements include the program management, engineering support, maintenance support, materiel support and technical information support.

The radar replacement project will see the installation, over the next three to four years, of seven new area surveillance radar and secondary surveillance radar systems at 3 Wing Bagotville, Quebec; 4 Wing Cold Lake, Alberta; 5 Wing Goose Bay, Newfoundland and Labrador; 8 Wing Trenton, Ontario (one system at an operational site, and a second system as a technical training site for the Aerospace and Telecommunications Engineering Support Squadron); 14 Wing Greenwood, Nova Scotia; and 19 Wing Comox, British Columbia. When used together, the area surveillance radar and secondary surveillance radar provide air traffic control with the optimal position and tracking data for each aircraft in the coverage area.

Both the CC-130H avionics contract and the surveillance radar contract were awarded competitively.

“Our Government is committed to acquiring and maintaining necessary equipment for the Canadian Armed Forces, at the most reasonable price for Canadians, with the greatest benefits for Canadian companies and workers,” said the Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women. “This contract will ensure that our Royal Canadian Air Force sites continue to meet operational requirements.”

Both contracts are subject to Canada’s Industrial Regional Benefits (IRB) Policy, under which Cascade Aerospace and Cassidian are required to place business activities with Canadian industry. The IRB Policy provides Canadian companies with an opportunity to develop and apply their own strengths and competitive solutions, and to take advantage of real business opportunities that will last years beyond the initial IRB commitment. 

“The Industrial and Regional Benefits policy encourages high-quality and advanced technology business opportunities for Canadian companies. It exposes our firms to global markets and fosters the development of long-term business relationships,” said the Honourable Christian Paradis, Minister of Industry. “These contracts are more great examples of how our procurement system brings economic benefit to regions across the country and continues to support our industry as a global leader.”

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