PROJECTILE-FREE FORCE-ON-FORCE TRAINING SYSTEM

Trade Agreement: NAFTA/AIT/Canada-Peru FTA/Canada-Colombia FTA Tendering Procedures: All interested suppliers may submit a bid Attachment: None Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: Setcan Corporation 1080 Kingsbury Ave. Winnipeg Manitoba Canada R2P1W5 Nature of Requirements: ADVANCE CONTRACT AWARD NOTICE (ACAN):

PROJECTILE-FREE FORCE-ON-FORCE TRAINING SYSTEM

W6399-12DG97/A Mastantuono, Ricardo Telephone No. - (819) 956-5771 Fax No. - (819) 956-5650

1. Definition of Requirement

The Department of National Defence (DND) has a requirement for a projectile-free force-on-force training system. The system must be capable of imparting shock or pain penalties to participants in order to increase their stress level and therefore more closely replicating an operational environment.

2. Criteria for Assessment of the Statement of Capabilities

2.1 Minimum Essential Requirements

Any interested supplier must demonstrate by way of a Statement of Capabilities that its system meets the following specifications:

- The training system shall be a force-on-force projectile-free training system; - The system shall induce vibration and/or a safe level of pain to an individual when a projectile-free shot is fired at the chest or back; - The stressor and pain penalties shall be adjustable; - The system shall permit a central operator to control remotely the pain inducing capabilities of the system, and administer on-demand stressor and/or pain penalties as required to any participating individual; - The system shall be able to accommodate up to 10 participants at a time. - The system shall simulate realistic shooting distances; - Any lasers shall be eye safe, without employing eye protection; - The system shall employ temporary modifications to existing weapon systems, including the C-8 rifle and Sig Sauer P226 pistol, to convert them into system training devices; - The system shall include replica training C-8 rifle(s) that are similar is weight, look and feel to a C-8 rifle but be projectile-free and capable of inducing pain penalties; - The system shall be capable of functioning in tandem with projectile-based force-on-force training systems, such as the Simunition product line of General Dynamics Ordnance and Tactical Systems Canada Inc.; - Participants shall be able to manoeuvre inside any space without the constraint of exposed wires limiting their range of movement or snagging on objects around them; - Any vests shall resemble in size and fit similarly to personal protection equipment, such as a ballistic plate carrier, and be configurable to fit personnel of different sizes; - Equipment must be able to deliver stressor and/or pain penalties when worn over Canadian Forces Army combat uniforms; - The system shall include simulated Improvised Explosive Device(s) (IED) that may be triggered remotely and/or by a tripwire, simulate an explosion and induces a stressor or pain penalty to participants in proximity; - The system shall include training knives that are capable of inducing an adjustable stressor or pain penalty; and - Instruct DND personnel on how to employ the delivered system properly and safely.

3. Applicability of Trade Agreements

This requirement comes under the Federal Supply Classification (FSC) 6910, Training Aids, and, as such, is subject to the following Trade Agreements:

- AIT; - NAFTA; - CPFTA; and - CCFTA.

This requirement is not subject to WTO-AGP due to the estimated expenditure falling below the applicable threshold.

4. Justification, Name and Address of the Proposed Contractor

It is the governemnt's intention to award a Contract to Setcan Corporation (1080 Kingsbury Ave., Winnipeg, MB, R2P 1W5) who is the only known supplier capable of performing this work.

5. Government Contracts Regulations Exception(s)

The following exception to the Government Contracts Regulations is invoked for this procurement under subsection 6(d) - "only one person is capable of performing the work").

6. Exclusions and/or Limited Tendering Reasons

The following exclusion(s) and/or limited tendering reasons are invoked under the section of the trade agreement(s) specified:

- AIT / Article 506, para. 12(a); - NAFTA / Article 10.16(b); - CPFTA / Article 1409.1(b) - iii; and - CCFTA / Article 9(b).

7. Required Delivery Date

The required delivery date

- Equipment = two (2) weeks after Contract Award. - Training = before 31 March 2012, with exact date(s) to be determined in discussions with the Bidder.

8. Intellectual Property

Ownership of any Foreground Intellectual Property arising out of the proposed contract will vest in the Contractor.

9. Inquiries and Submission of Statements of Capabilities

Ricardo N. Mastantuono Supply Team Leader PWGSC, D&MP Sector, Electronics, Simulators and Defence Systems Division - QF Portage III 8C2 - 11 Laurier Street Gatineau, QC., Canada, K1A 0S5 Tel.: (819) 956-5771 Fax: (819) 956-5650 Email: Ricardo.Mastantuono@tpsgc-pwgsc.gc.ca Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.