Harper Government Invests in Canadian Jobs and Canadian Armed Forces' Fleet of Light Armoured Vehicles (LAV) III

Government of Canada/Public Works — November 9, 2012

LONDON, ONTARIO--(Marketwire - Nov. 9, 2012) - Ed Holder, Member of Parliament for London West on behalf of the Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, today announced more support for Canadian jobs and Canadian Armed Forces through a contract amendment with General Dynamics Land Systems for 66 additional upgraded Light Armoured Vehicles (LAV) III.

"This additional support will help sustain over 2200 local jobs in London and will utilize Canadian expertise found right here in our city," said MP Ed Holder. "This will also benefit our local economy by providing good quality jobs and employment security for many families.

Canada's LAV IIIs have served the Canadian Armed Forces in Afghanistan and other areas of operation. They are state-of-the-art combat vehicles used to transport infantry on the battlefield while providing defensive protection and firepower.

"Our Government is committed to renewing and strengthening the equipment we provide our men and women in uniform," said the Honourable Bernard Valcourt, Associate Minister of National Defence, Minister of State (Atlantic Canada Opportunities Agency) (La Francophonie) and MP for Madawaska-Restigouche. "Our continued investments in the Canadian Army will provide our troops with the modern equipment they need to conduct their missions safely and effectively for many decades to come."

The LAV III Upgrade Project Implementation Phase contract is necessary to improve the protection of these vehicles against mines and improvised explosive devices, improve their mobility, improve the safety of Canadian Forces members travelling on board the LAV III, and incorporate ergonomic and information management improvements.

"This support will provide high-quality jobs and security for our families in London and will help build a prosperous future for our community," said Joe Preston, Member of Parliament for Elgin-Middlesex-London.

In October 2011, it was announced that a contract was awarded to GDLS - C for the implementation phase of the LAV III Upgrade Project at a value of $1.064 billion (taxes included) to deliver 550 upgraded LAV IIIs. This contract included an option for additional upgraded LAV IIIs. The contract is now being amended to exercise the option to upgrade 66 additional LAV IIIs at a value of $151 million (taxes included). The Harper Government intends to use this additional delivery of 66 LAV IIIs to support the Canadian Forces' reconnaissance and surveillance capability.

The Industrial and Regional Benefits (IRB) Policy will apply to this contract amendment. The IRB 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.

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Background

Light Armoured Vehicle III Upgrade Project

Canada's Light Armoured Vehicle (LAV) III-which has served the Canadian 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 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 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. These projects aim to provide the Canadian 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 IIIs, 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 Forces members travelling on board the 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 Forces' reconnaissance and surveillance capability.

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 2,400 GDLS - C personnel in London and Edmonton, as well as for the employees of the company's supplier base of 400 Canadian companies.

The Industrial and Regional Benefits (IRB) Policy will apply to this contract. The IRB 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. This contract is one of over 60 major procurements subject to the IRB Policy, which represents over $20 billion in IRB commitments from major defence contractors.

Contact Information

Amber Irwin
Office of the Honourable Rona Ambrose
819-997-5421

Media Relations
Public Works and Government Services Canada
819-956-2315