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“CANADA FIRST” DEFENCE PROCUREMENT – MEDIUM-SIZED LOGISTICS TRUCKS

Identifying the needs of the Canadian Forces
The Department of National Defence is procuring new medium-sized logistics trucks for Canadian Forces. The new fleet of five-tonne trucks will be used by the Regular Forces and the Reserves in a wide range of roles – from support during domestic emergencies, to deployed operations. They will replace the current Logistics trucks, which have been in use since the 1980s and are reaching the end of their service life.

Canada First at home and abroad – how we’ll meet needs moving forward
With a fleet of modernized and improved logistics trucks, fewer vehicles will be required to get the job done. The new fleet will enhance mission flexibility and global deployability by using standardized containers and palletized load-handling systems, allowing materials to be transferred easily among many modes of transportation. The vehicles will be the Army’s logistics backbone, getting supplies where they are needed in the most efficient way possible.

The project aims to procure approximately:
- 1500 standard military pattern vehicles (designed specifically for military use) with up to 300 load-handling system companion trailers;
- 800 commercial vehicles adapted for military use;
- 1000 specially equipped vehicles kits (such as mobile kitchens, offices and medical or dental stations); and,
- 300 armour protection systems.

The commercial vehicles will be used in Canada for training and administrative support functions. Their maintenance and repair will be supported commercially through a well-established local dealer network, benefiting Canadian industry and local economies. For the Canadian Forces, this will also lower support costs and increase availability. This is especially important to the Reserves, who will be the main user.

A fair open and transparent process
A competitive procurement process will select the contractor for new trucks for the Canadian Forces with requests for proposals being released to industry for all elements of the project. The acquisition contracts will also have full economic benefits for Canadian industry – this means that for every contract dollar awarded, the contractor will commit a corresponding dollar in economic activity in Canada.

The in-service support contract for the standard military pattern vehicle will include support for an initial period of 2 - 3 years. A follow-on support contract for the remainder of the 20-year total life of the vehicles will be negotiated or competed separately. The estimated in-service support cost is $100 million, representing a substantial income for Canadian industry. The requirement for this equipment is urgent. Delivery is expected as soon as possible and will continue until the requirement is fully met.

A good deal for Canadian industry
The procured Medium-Size Logistics Trucks will have full economic benefits for Canadian industry as well as, an in-service-support agreement. This represents a substantial benefit for the Canadian economy and ensures future industry support and profit.

Canada's new government will ensure that the acquisition of these trucks delivers maximum high-quality industrial benefits to Canadians and that Canadian industry is well positioned to play a significant role as this project proceeds.

This acquisition will create long-term industrial development for Canadians. The Government's policy requires that prime contractors on defence procurements undertake business activities in Canada, usually in an amount equal to the value of the contract they have won. This helps Canadian companies maintain globally competitive operations in the country and effectively support future national security requirements.

  Copyright 2006 © FrontLine Magazine & Beacon Publishing Inc.