Production of Armoured Combat Support Vehicles Begins
“These vehicles will form the backbone of the Army’s combat support fleet, and be used on a wide range of operations including domestic disaster relief and international peace support missions. Thanks to the flexibility found in our defence policy, Strong, Secure, Engaged, work on the vehicles has started years earlier than expected and ensures that we continue to support well-paying Canadian jobs and critical innovation in communities across the country.”
- The Honourable Harjit S. Sajjan, Minister of National Defence
“Our government has ensured that this contract supports Canadian jobs and provides benefits to Canadian industry, including small and medium-sized businesses. Through the Industrial and Technological Benefits Policy, this project will continue to strengthen key industrial capabilities that support the Canadian Armed Forces and help to keep Canada’s economy strong.”
- The Honourable Navdeep Bains, Minister of Innovation, Science and Industry
The current fleet of armoured support vehicles is comprised of the LAV II Bison and the M113 Tracked LAV, which have already been reconfigured and life-extended.
A contract was awarded to General Dynamics Land Systems-Canada on September 5, 2019. This contract has a value of approximately $2 billion (taxes included) for 360 ACSV, initial spare parts, technical manuals, and training.
Subcontracts have been awarded to companies in seven provinces, and vary in value from $38,800 to $24,000,000. Key investments include:
- $335,000 in Atlantic Canada to companies like L & A Metalworks Inc. and IMP Group Limited
- $26,000,000 in Quebec to companies like Terminal & Cable TC Inc. and Thales Canada Inc. Optronics BU
- $89,000,000 in Ontario to companies like Abuma Manufacturing Limited, Cornell Welding & Fabricating Ltd., and J/E Bearing & Machine Ltd.
- $20,000,000 in Western Canada to companies like Analytic Systems Inc. and JNE Welding
The CAF’s Armoured Combat Support Vehicles will be available in eight variants, providing services such as: ambulances, vehicle recovery, engineering, mobile repair, electronic warfare, troop carrying, and command posts.
This fleet can be used in a wide variety of roles, such as part of Canada’s contribution to NATO’s assurance and deterrence measures in Central and Eastern Europe, or in the Canadian Armed Forces’ response to natural disasters in Canada.
Canada’s defence policy, Strong, Secure, Engaged, included a commitment to integrate Gender-Based Analysis Plus (GBA+), in all defence activities across the Canadian Armed Forces and Department of National Defence. This ensures that every activity is informed by GBA+, and was done for this procurement.
The Industrial and Technological Benefits Policy is the government’s main tool for ensuring economic benefits from large defence procurements, and it means that the supplier will reinvest an amount equal to the value of this contract – dollar-for-dollar – back into the Canadian economy. In addition, Canada required General Dynamics to provide a gender and diversity plan outlining the company’s efforts to promote workforce diversity and gender equality within its corporate and supply chain operations.
The Industrial and Technological Benefits Policy applies to this contract, ensuring that General Dynamics will invest 100 percent of the value of the contract back into the Canadian economy, providing opportunities for Canadian small and medium businesses, and supporting innovation and skills development for Canadian workers.
Office of the Minister of National Defence
Department of National Defence
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