Rheinmetall wins €160 Million Contract for Production of Armoured Patrol Vehicles for the Canadian Armed Forces

Rheinmetall AG and Textron Systems Canada Inc., announced that they have signed a €160 million ($205 million CAD) contract for work on the Canadian Forces Tactical Armoured Patrol Vehicle (TAPV) project, performed by Rheinmetall Canada Inc., Saint-Jean-sur-Richelieu, Quebec.
Rheinmetall Canada will earn €120 million ($152 million CAD) during the TAPV program’s production phase – performing critical engineering and production work at its facility in Saint-Jean-sur-Richelieu, Quebec.
The contract includes €40 million ($53 million CAD) Rheinmetall Canada will earn developing Integrated Logistics Support (ILS) products and as the primary in-service support hub for the vehicle fleet during its service life. It also fulfills a portionof Textron’s participation in Canada’s Industrial and Regional Benefits (IRB) Policy arising from the government’s purchase of 500 Textron TAPVs.
During the production phase of the TAPV fleet, Rheinmetall will perform the critical final assembly and test of the vehicles. Rheinmetall will also integrate essential sub-systems such as the Remotely Controlled Weapon Station, the Vehicle Navigation System and the Driver Vision Enhancement System.
The production phase of the acquisition contract is expected to span from July 2014 to March 2016.
Once fielded, Rheinmetall will provide In-Service Support (ISS) for the entire TAPV fleet, also at its facility in Saint-Jean-sur-Richelieu, Quebec.
ISS will start with Initial Operational Capability when the first 47 vehicles are delivered, planned for 2014, and is expected to end in 2021, five years after the last vehicle is delivered.
In June 2012, the Textron TAPV Team, led by Textron Systems Canada, was selected to manufacture 500 Canadian Forces Tactical Armoured Patrol Vehicles (TAPV) with options for up to 100 more.
The TAPV contract has a value of$603.4 million CAD, with an additional five-year in-service support contract of $105.4 million CAD.
Ottawa-based Textron Systems Canada, as prime contractor, will provide overall TAPV program and configuration management, act as design authority for change management, coordinate vehicle integration activities by Canadian subcontractors, and manage the In-Service Support contract.
Textron Systems Canada will also be implementing a pan-Canadian Industrial and Regional Benefits program designed to bring new expertise and opportunities to Canadian companies