New Canadian contract for small unmanned aerial vehicles (SUAV) will boost economy

The Minister of Public Works and Government Services, the Honourable Christian Paradis, and the Minister of National Defence and Minister for the Atlantic Gateway, the Honourable Peter Gordon MacKay, as well as the Minister of Industry, the Honourable Tony Clement, today announced that the Government of Canada has awarded a contract to Insitu Inc. of Bingen, Washington, USA, to provide small unmanned aerial vehicle (SUAV) services to support the Canadian Forces.

“As a result of a fair, open and transparent competition, we now have a contract to provide SUAV services that our Canadian Forces will be able to use in Afghanistan and beyond,” said Minister Paradis. “We moved quickly last summer to meet our short term needs,” he added. “This procurement will not only add to the SUAV fleet for our Forces, but will provide best value for Canadian taxpayers while stimulating our economy.”

“The Canadian Forces’ UAV capability directly contributes to the safety and protection of our troops deployed on operations,” added Minister MacKay. “The awarding of this contract will help ensure that the men and women of the Canadian Forces are provided with the necessary support to sustain this important capability in current operations in Afghanistan, and into the future.”

As part of the Request for Proposal, Insitu Inc. must provide 100 percent industrial and regional benefits. This means that Insitu Inc. will boost the Canadian economy by generating one dollar of economic activity in Canada for every dollar it receives from the contract.

Canada’s Industrial and Regional Benefits Policy applies to this procurement. As such, Insitu Inc. is required to undertake high quality and advanced-technology business activities in Canada in an amount equal to 100 percent of the contract value. This means that the company will invest one dollar of economic activity in Canada for every dollar it receives from the contract.

“The Government of Canada remains committed to generate the greatest amount of economic benefit to Canadian industry and the economy at large through its major defence procurements,” said Minister Clement. “Canada’s Industrial Regional Benefits Policy is in place to ensure that prime contractors encourage long-term industrial development and generate significant economic activity in Canada.”

Background

The Government of Canada is actively procuring the equipment needed to support urgent operational requirements in Afghanistan. On April 3, 2009, on behalf of DND, PWGSC awarded a contract to Insitu Inc. of Bingen, Washington, USA, to provide the Canadian Forces with services for Small Unmanned Aerial Vehicles (SUAVs).

This contract, awarded for one year, with two one-year options, provides for SUAV turnkey services that include: training Forces personnel; maintenance personnel; repair, technical and engineering support; and integrated logistics support. The services also include launching the SUAVs and performing post takeoff checks before providing them to CF personnel for operational missions. Once the missions are complete, the contractor will recover the SUAVs to prepare them for their next mission.

This contract, with an estimated value of US $30 million for the initial one-year period, is in addition to two other separate earlier procurements announced in August 2008. These procurements were undertaken to ensure that the Canadian Forces deployed in Afghanistan would have the equipment they needed, well in advance of the February 2009 deadline to meet recommendations of the Independent Panel on Canada's Future Role in Afghanistan, also known as the Manley Report.

First, the Government awarded a contract to The Boeing Company to provide SUAV services on an interim basis. This contract provided for a turnkey service spanning less than one year. This equipment has been in the field since July 2008.

Second, PWGSC worked closely with DND on a competitive procurement called Project NOCTUA to lease Unmanned Aerial Vehicle (UAV) services for a two-year period, with an additional one-year option. The contract was awarded to MacDonald Dettwiler and Associates LTD as a result of an open, transparent and competitive process.

This allowed for the approach resulting in today’s contract. The government obtained the equipment it needed as quickly as possible to protect Canadian troops, while this new competitive process was undertaken to ensure best value for Canadian taxpayers and ensure continued capability with the new contract being awarded today.

The Industrial and Regional Benefits (IRB) Policy is an important component of the Government of Canada’s overall procurement process for major Crown purchases. The IRB Policy enables the Government of Canada to leverage major government procurements to create long-term industrial development and to generate significant economic activity in Canada. The Policy ensures that successful prime contractors undertake high-quality, high-technology work in Canada, equivalent to 100 percent of the contract value, with lasting economic benefit.