Textron Systems Canada has awarded a C$205m ($205.14m) subcontract to Rheinmetall Canada for the national army's tactical armoured patrol vehicle (TAPV) programme.
The contract includes funding of C$152m ($152.10m) for the programme's production phase, while the remaining C$53m ($53.03m) will fund its in-service support (ISS) phase, as well as fulfilling a portion of Textron's participation in Canada's industrial and regional benefits (IRB) policy.
Rheinmetall Canada president and CEO Dr Andreas Knackstedt said the partnership will deliver advanced equipment to the army, while also providing value for taxpayers.
Under the production phase, Rheinmetall Canada will carry out the critical task of vehicles' final assembly and testing at its facility in Saint-Jean-sur-Richelieu, Quebec.
Additional responsibilities include integration of essential sub-systems, such as the remotely controlled weapon station (RCWS), as well as vehicle navigation and driver vision enhancement systems, from July 2014 to March 2016.
The company will deliver ISS for the entire TAPV fleet, beginning with initial operational capability (IOC) of the initial batch of 47 vehicles, expected in 2014.
Work will be carried out from its Quebec facility and is scheduled to continue until 2021, five years following delivery of the last vehicle.
Textron Systems Canada was selected as prime contractor of the C$603.4m ($603.81m) TAPV programme for supplying some 500 vehicles to the Canadian Army in June 2012.
The award also includes an option for supply of an additional 100 TAPVs, while the ISS will be delivered under a separate five-year C$105.4m ($105.47m) contract.
The TAPV team also includes Kongsberg Protech Systems Canada and Engineering Office Deisenroth Canada (EODC), with additional local companies expected to join the supply chain as the project moves ahead.
Designed to replace Canada's existing fleet of armoured patrol vehicles (APV) and Coyote reconnaissance vehicles, the TAPV will ensure that the army remains capable of effective training, supporting domestic operations and sustaining deployed forces as part of Canada's first defence strategy.