SHORT & MIDDLE WAVE INFRARED (SWIR & MWIR) SENSOR MODULE

Trade Agreement: Agreement on Internal Trade (AIT) Tendering Procedures: Generally only one firm has been invited to bid Attachment: None Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: SCD SemiConductor Devices P.O. Box 2250 Israel Nature of Requirements: SHORT & MIDDLE WAVE INFRARED (SWIR & MWIR) SENSOR MODULE

1. Purpose of an Advance Contract Award Notice (ACAN) An Advance Contract Award Notice (ACAN) allows a department to post a notice, for no less than fifteen calendar days, indicating to the supplier community that it intends to award a contract to a pre-identified contractor. If no other supplier submits during the fifteen calendar day posting period, a statement of capabilities that meets the requirements set out in the ACAN, the competitive requirements of the government's contracting policy have been met. Following notification to suppliers not successful in demonstrating that their statement of capabilities meets the requirements set out in the ACAN, the contract may then be awarded, using the Treasury Board's electronic bidding authorities.

If other potential suppliers submit statements of capabilities during the fifteen calendar day posting period, and meet the requirements set out in the ACAN, the department must proceed to a full tendering process on either the government's electronic tendering service or through traditional means, in order to award the contract.

2. Definition of requirements and sole source justification Public Works and Government Services Canada, on behalf of its client Defence Research and Development Canada (DRDC), Valcartier, intends to negotiate with SCD Inc., for the supply and delivery at Quebec City of one (1), commercially available, SWIR-MWIR sensor module, with all components correctly adjusted, calibrated and serviced, such that the module is optically and electronically ready for testing.

Under its Researh and Development projects, DRDC need to investigate and evaluate novel wide band imaging technology for future capability. SCD Kinglet SWIR-MWIR imaging module is the only product having the desire spectrum coverage in a single imaging module and without switching between two or more spectral bands.

DRDC requires equipment that satisfies the following technical criteria : Spectral response band: 1.0 to 4.2 microns minimum Quantum efficiency: 30% at 1.0 microns minimum without cold filter Resolution: 640 x 480 minimum Detector pitch: 15 microns x 15 microns maximum Sensitivity or Noise Equivalent Temperature Difference (NETD): Less than 23mK A/D resolution: 12 bit minimum at up to 120 frames per second at full frame F-Number of detector: F/3 or larger

Consequently, in accordance with government contracting policy, it is proposed that a contract be awarded to SCD Inc., which is, to our knowledge, the only firm capable of supplying the products.

3. Trade Agreements The article 506.12(b) of the AIT is applicable on the basis of "where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists;". This procurement is exempted of the NAFTA application.

4. Government Contracts Regulations Exception This contract is subject to subsection 6(d) of the Government Contracts Regulations, in that only one person or company is capable of performing the contract.

5. Ownership of Intellectual Property Rights No new intellectual property will be created during the course of this contract.

6. Proposed Contractor SCD Inc.. P.O. Box 2250, Haifa 31021. Israel

7. Submission of Statement of Capabilities by Suppliers Suppliers, who consider themselves fully qualified and available to provide the services described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before October 16, 2013. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

8. Departmental Contact Person Suppliers may address inquiries or submit their statement of capabilities to:

Name: Bertrand Carrier Position: Procurement Specialist Tel.: (418) 649-2774 Fax: (418) 648-2209 E-mail: bertrand.carrier@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.