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🇨🇦🍁💵 Government of Canada Announces Contract Award for Maintenance of Leopard 2 Tanks

Tuesday, 01 October 2024 12:00.PM
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As part of Canada's defence policy, Our North, Strong and Free, the federal government is committed to supporting members of our Canadian Armed Forces (CAF) with the modern equipment they need to complete their missions and keep Canadians safe.

Today, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement, and the Honourable Bill Blair, Minister of National Defence, announced that the federal government has awarded a contract to KNDS Deutschland GmbH & Co. KG (KNDS) for the long-term sustainment of the Leopard 2 Family of Vehicles (FoV).

The Leopard 2 is the main battle tank of the CAF. Ensuring our fleet has a consistently high level of operational availability for Canada's military operations is essential to our national security.

The contract is for an initial period of 6 years and 7 months, and includes 4 option periods that could extend the contract until March 2036. The contract has an estimated value of $2 billion (including taxes).

In addition to providing crucial services to the fleet, KNDS will establish a Regional Maintenance Centre located near Edmonton, Alberta, and undertake business activity in Canada as part of the Industrial and Technological Benefits (ITB) Policy. KNDS' economic commitments are estimated to create or maintain 295 well-paying jobs annually in the Canadian economy and contribute a total of $32.5 million annually to Canada's GDP over the initial contract period.

"The Government of Canada is committed to providing members of our Canadian Armed Forces with the necessary equipment to carry out missions and protect Canadians. Today's announcement underscores our commitment to meeting North Atlantic Treaty Organization requirements, while ensuring economic and security benefits for Canada."
- The Honourable Jean-Yves Duclos , Minister of Public Services and Procurement

Quick facts

• The Leopard 2 FoV are the main battle tanks of the CAF, as well as several North Atlantic Treaty Organization (NATO) countries. This FoV includes the Armoured Engineer Vehicles and Armoured Recovery Vehicles, and are capable of supporting a wide range of operations.
• These heavily armoured and highly protected vehicles provide soldiers with a tactical advantage on the battlefield, thanks to their excellent mobility, firepower, and survivability.
• The CAF currently operates a fleet of 103 Leopard 2 vehicles in 5 variants, which are anticipated to remain operational until 2035.
• KNDS has the experience and technical expertise, and also owns and has access to the intellectual property rights and supply chains for the Leopard 2 FoV. This makes KNDS the only candidate to become Canada's single prime contractor providing long-term sustainment services.
• This contract will allow for the transition of multiple support services into a single long-term sustainment contract to ensure the vehicles continue to be available and relevant for their remaining life. The contract includes program management, maintenance, technical services, supply support, engineering support, and other forms of support as required.
• A significant portion of the Leopard 2 FoV vehicles are maintained at high readiness for short-notice operational deployment. This ensures Canada will meet its commitments to NATO.
• Canada's ITB Policy, including the Value Proposition (VP), applies to this contract. The ITB Policy will leverage mandatory in-country work to ensure that Canada delivers a domestic sustainment solution and maintains supply chain partnerships for Leopard 2 FoV components and systems.

SOURCE: Public Services and Procurement Canada

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