OTTAWA and SAINT-JEAN-SUR-RICHELIEU, Que.—Rheinmetall Canada’s piece of the pie on a $700-million Canadian Forces patrol vehicle deal will total $205-million, the company announced.
According to the company, it will earn $152-million for its part in the production phase of the tactical armoured patrol vehicles (TAPV) deal awarded to Textron Systems Canada in June.
As a member of the Textron TAPV team, Rheinmetall Canada will perform “critical engineering and production work” on the 500 heavily armoured vehicles ordered by the military at its facility in Quebec about 40-kilometres south of Montreal.
Rheinmetall Canada’s contract includes an additional $53-million for the development of “Integrated Logistics Support (ILS) products.”
During the production phase of the TAPV fleet, Rheinmetall Canada will perform the final assembly and test of the vehicles.
It will also integrate sub-systems like the remotely controlled weapon station and the vehicle navigation and driver vision enhancement systems.
The production phase of the deal is expected to span from July 2014 to March 2016, the company said.
Once the vehicles are delivered, Rheinmetall Canada will provide in-service support (ISS) for the entire TAPV fleet at its facility in Saint-Jean-sur-Richelieu, Que.
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.
According to Textron Systems Canada general manager Neil Rutter, a number of similar agreements will be signed with other TAPV team members as production ramps up.
“In the coming months, we will be signing many more agreements with other best-in-class Canadian suppliers who will help us deliver a fleet of Textron TAPVs that will provide Canadian soldiers with unmatched performance and protection for decades,” he said in a statement.
The Textron TAPV team also includes Kongsberg Protech Systems Canada (London, Ont.) and Engineering Office Deisenroth Canada (Ottawa, Ont.).
As the program is ramped up, many other Canadian companies are expected to figure prominently in the Textron TAPV supply chain.
The TAPV contract includes an option for up to 100 more of the armoured personnel carriers.