Government of Canada announces contracts for recovery vehicles to support the Canadian Armed Forces

SAINT-JEAN-SUR-RICHELIEU, QC, Nov. 14, 2024 /CNW/ - The Government of Canada is committed to supporting members of our Canadian Armed Forces (CAF) by ensuring Canada has a robust military that can defend Canada abroad and protect Canadians.

Today, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, on behalf of the Honourable Bill Blair, Minister of National Defence, announced that 2 competitive contracts have been awarded to Rheinmetall Canada Inc., located in Saint-Jean-sur-Richelieu, Quebec. These 2 contracts are for the acquisition of Enhanced Recovery Capability (ERC) vehicles, equipment and in-service support (ISS).

The acquisition contract, with an estimated value of $374 million (including taxes), is for a period of approximately 5 years and will deliver 85 ERC vehicles, 24 armoured cabs, associated ancillary equipment and integrated logistics support. The contract includes options to procure additional vehicles and armoured cabs.

The ISS contract, with an initial estimated value of $30.4 million (including taxes), will cover an initial contract period of 8 years, plus option periods of up to 16 years. Work will include repair and overhaul, major repairs, spares replenishment and additional work requests once the vehicles are delivered.

The ERC vehicles will enable CAF members to effectively recover newer and heavier armoured and logistics vehicles that cannot be recovered by the current fleet. These new vehicles will be able to extract, winch, tow and right all CAF wheeled vehicles and lift intermodal containers, ensuring safe and effective recovery during operations, training and garrison support.

Canada's Industrial and Technological Benefits Policy applies to the ERC contracts, to leverage economic benefits for the Canadian defence industry. Rheinmetall Canada Inc. will make targeted investments and undertake business activity in Canada equal to the value of the contracts. The company's economic commitments are estimated to contribute a total of $35.5 million annually to Canadian gross domestic product and create or maintain 245 jobs annually over an 11-year period.

Quotes

"The Government of Canada is committed to supporting the CAF and investing in our country's economy through open, fair and transparent procurement processes. Today's announcement will enable the Enhanced Recovery Capability project to provide our CAF members with the essential equipment they need to serve safely and effectively during recovery operations and training. This project is also creating good paying jobs in Saint-Jean-sur-Richelieu and across the supply chain."

The Honourable Jean-Yves Duclos 
Minister of Public Services and Procurement and Quebec Lieutenant

"The members of the Canadian Armed Forces deserve modern equipment to successfully carry out missions at home and abroad. The procurement of Enhanced Recovery Capability vehicles announced today will provide better protection for our members in high-threat environments, enabling them to better defend Canada and strengthening our ability to work with our allies and partners. These vehicles are part of the investments that the Government of Canada is making through our defence policy update, Our North, Strong and Free, to invest in and further the capabilities of our military."

The Honourable Bill Blair
Minister of National Defence

"Today's announcement underscores our commitment to provide Canadian Armed Forces members with the state-of-the-art equipment and comprehensive in-service support they need, while ensuring long-term economic benefits for Canadians. Through the application of the Industrial and Technological Benefits Policy, the government aims to ensure this procurement will not only strengthen our national defence capabilities but also advance Canadian innovation in our world-class defence industry, create high-value jobs and contribute to economic growth across the country."

The Honourable François-Philippe Champagne
Minister of Innovation, Science and Industry

"The Enhanced Recovery Capability (ERC) project is an important contribution to the Canadian Army's modernization and combat effectiveness. These heavy tow trucks and other special equipment will enhance our ability to safely recover and repair vehicle casualties even in the presence of enemy forces.  By meeting allied fuel and mobility standards, the employment of ERCs will ensure we can continue to be an effective partner in multinational engagements."

Lieutenant-General Michael Wright
Commander, Canadian Army

"The Enhanced Recovery Capability project demonstrates Rheinmetall's distinct ability to leverage its global footprint and technologies to address the needs of the Canadian Armed Forces. This contract award reinforces Rheinmetall Canada's reputation as a leading systems integrator and creates high-tech career opportunities in Saint-Jean-sur-Richelieu and the Montérégie region. We are proud to provide the Canadian Armed Forces with one of the most advanced recovery solutions that is set to meet our country's needs for decades to come."

Pietro Mazzei, President and CEO
Rheinmetall Canada

Quick facts 

• The acquisition of the ERC vehicles will enable recovery tasks on many of the current and future heavier wheeled vehicles in the CAF vehicle fleet. These include the use of in-service rotator recovery booms to safely recover rolled over vehicles or lift shipping containers.
• Following an Invitation to Qualify that was issued on August 23, 2019, 5 suppliers were qualified. The Request for Proposal was released to the 5 qualified suppliers on November 25, 2022, and closed on September 20, 2023. The bid evaluation was completed on April 4, 2024.
• The ERC project was first announced as part of Canada's 2017 defence policy, Strong, Secure, Engaged, and renewed in Our North, Strong and Free, in order to support members of our CAF both at home and abroad.
• A fairness monitor was engaged to oversee all phases of this procurement process.

Associated links

• Enhanced Recovery Capability
• Our North, Strong and Free: A Renewed Vision for Canada's Defence
• Industrial and Technological Benefits Policy

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SOURCE Public Services and Procurement Canada

Contacts: Guillaume Bertrand, Director of Communications, Office of the Honourable Jean-Yves Duclos, 418-564-9571, [email protected]; Media Relations: Public Services and Procurement Canada, 819-420-5501, [email protected]