8.4MM INSPECTION PROBE FOR EVEREST XLG3 SYSTEM

Trade Agreement: NAFTA/AIT/Canada FTAs with Peru/Colombia/Panama Tendering Procedures: Generally only one firm has been invited to bid Attachment: None Non-Competitive Procurement Strategy: Interchangeable Parts Comprehensive Land Claim Agreement: No Vendor Name and Address: Trikon Technologies Inc. 389 Joseph Carrier Vaudreuil-Dorion Quebec Canada J7V5V5 Nature of Requirements: 1. ADVANCE CONTRACT AWARD NOTICE (ACAN) An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.

2. DEFINITION OF THE REQUIREMENT Defence R&D Canada Valcartier (DRDC-Valcartier) has a requirement for the supply of one (1) 8.4mm inspection probe for Everest XLG3 System.

3. CRITERIA FOR ASSESSMENT OF THE STATEMENT OF CAPABILITIES (MINIMUM ESSENTIEL REQUIREMENTS) - Trikon Technologies Inc. is the authorized channel partner for all GE (General Electric) products for Quebec and Eastern Canada.

-Since we already own an Everest XLG3 hore scope system, other brand or types of inspection probe would not be compatible.

-We own an Everest XLG3 bore scope and the required 8.4mm probe fits on this equipment.

-If we had to purchase another brand of inspection probe, it would also be requried to by the entire kit. The cost would then be over $70 000.00 CAD.

-Any interested supplier must demonstrate by way of a statement of capabilities that its system meets the following requirements: The 8.4mm fiber optic inspection probe must address the following requirements:

- Must be portable and flexible so it can be used either in the lab or in the field.

- Must be compatible with the Everest System.

- Must be rapidly interchangeable and must be reconfigured with the Everest XLG3 almost instantly.

- Must not require an external power source and it must work with the Everest XLG3 to ease work load in field operations.

- Must have high-resolution to view the detail of parts or gun barrels.

- Must have a built in temperature warning sensor in the camera head for protection against high temperature.

- Must be able to function properly at temperatures between -13° to 176°F.

- Must be able to operate in closed area.

- The camera head must be motorized allowing all-way tip articulation for optimum investigation examination. MTEC needs as much control of the tip as possible and the safety of slip clutches, to prevent over-torque of the tip control cables.

- The head must be made of titanium and must be durable against metal to metal contact in order to increase its life expectancy.

- Must have a threaded head in order to quick change lenses.

- Must be capable to make measurements. This will allow for the flexibility according to needs.

- The inspection probe must update itself with the Everest XLG3 module. The system will automatically recognize the type of probe being used

4. APPLICABILITY OF THE TRADE AGREEMENTS TO THE PROCUREMENT This procurement is subject to the following trade agreements: .1 Agreement on Internal Trade (AIT) .2 North American Free Trade Agreement (NAFTA)

5. JUSTIFICATION FOR THE PRE-IDENTIFIED SUPPLIER We believe that the 8.4mm Inspection probe for Everest XLG3 System is the only product able to perform the work or comply with government requirements.

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

7. EXCLUSIONS AND/OR LIMITED TENDERING REASONS The following exclusions and/or limited tendering reasons are invoked under the trade agreements specified: .1 Agreement on Internal Trade (AIT) - Article 506: Procedures for Procurement 12. Where only one supplier is able to meet the requirements of a procurement, an entity may use procurement procedures that are different from those described in paragraphs 1 through 10 in the following circumstances: (a) to ensure compatibility with existing products, to recognize exclusive rights, such as exclusive licences, copyright and patent rights, or to maintain specialized products that must be maintained by the manufacturer or its representative; and

.2 North American Free Trade Agreement (NAFTA) - Part Four: Government Procurement - Chapter Ten Article 1016: Limited Tendering Procedures 2. An entity may use limited tendering procedures in the following circumstances and subject to the following conditions: (d) for additional deliveries by the original supplier that are intended either as replacement parts or continuing services for existing supplies, services or installations, or as the extension of existing supplies, services or installations, where a change of supplier would compel the entity to procure equipment or services not meeting requirements of interchangeability with already existing equipment or services, including software to the extent that the initial procurement of the software was covered by this Chapter.

8. PERIOD OF THE PROPOSED DELIVERY DATE The system must be delivered on March 31, 2014.

9. COST ESTIMATE OF THE PROPOSED CONTRACT The estimated value of the contract is between $30,000 $ to $60,000 including taxes.

10. NAME AND ADDRESS OF THE PRE-IDENTIFIED SUPPLIER Trikon technologies Inc 389 Joseph Carrier Vaudreuil-Dorion, Quebec J7V 5V5

11. SUPPLIER ' RIGHT TO SUBMIT A STATEMENT OF CAPABILITIES Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN 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.

12. CLOSING DATE FOR A SUBMISSION OF A STATEMENT OF CAPABILITIES The closing date and time for accepting statements of capabilities is December 17, 2014 at 2:00 p.m. Eastern standard time (EST).

13. INQUIRIES AND SUBMISSION OF STATEMENTS OF CAPABILITIES Denise Larouche Supply Officer Public Works and Government Services Canada (PWGSC) CFB Bagotville, P.O. Box 380 Building 71, Room 115 Alouette, Quebec, G0V 1A0

For English communication please contact: Marial Tremblay Telephone: (418) 677-4000, Ext.: 4159 E-mail: marial.tremblay@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.