STANAG 4586 COMPLIANT UAV CTRL SYST

Trade Agreement: Agreement on Internal Trade (AIT) Tendering Procedures: Attachment: None Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: CDL SYSTEMS LTD #269 3553 31 Street NW Calgary Alberta Canada T2L2K7 Nature of Requirements: STANAG 4586 COMPLIANT UAV CONTROL SYSTEM W8476-123719/A

Advance Contract Award Notice

1. General An Advance Contract Award Notice (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 this ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award.

2. Requirement The Department of National Defence (DND) has a requirement under the Family of Unmanned Air Vehicles (FUAV) sub-project of the Land Force Intelligence Surveillance, Target Acquistion, and Reconnaissance (LFISTAR) project to procure STANAG 4586 Compliant Aircraft Control Software Suite.

The mandatory requirement is that the sofware suite must be STANAG 4586 compliant, and have been field proven through a minimum of 10,000 sorties and 25,000 hours of operations conducted within the past five years. The software function will concentrate on the operation of the STANAG 4586 compliant aircraft and management of data to ensure the provision of persistent Electro-Optical and Infrared surveillance of the quality required to clearly identify Canadian Forces or other units. The software will also have the capability to manage additional payloads including, but not limited to, laser rangefinder, Night Vision Goggle compatible laser pointers, Synthetic Aperture Radar, Tactical Radio Relay, Electronic Support Measure, Chemical, biological, radiological and nuclear and additional payloads as and when they are developed and introduced for the small tactical unmanned systems.

The Contractor shall deliver 2 developmental software suites/licenses for three years of operations of UAS employed aircraft with a Gross Maximum Take-Off Weight not to exceed 150kg. Each suite shall be accompanied by all publications and documentation required for the installation and operation of the development suites. The Contractor shall also deliver 26 perpetual operational software suites for the operation of the UAS with a Gross Maximum Take-Off Weight not to exceed 150kg. Each suite shall be accompanied by all publications and documentation required for the installation and operation of the development suites.With an option to procure an additional 4 Developmental and 20 Production Licenses.

PWGSC intends to issue a contract to CDL Systems Ltd., the Original Equipment Manufacturer (OEM).

3. Criteria for assessment of the Statement of Capabilities Any interested supplier must demonstrate and substantiate by way of a statement of capabilities that has the following mandatory capabilities:

3.1 It's sofware suite is STANAG 4586 compliant, and has been field proven through a minimum of 10,000 sorties and 25,000 hours of operations conducted within the past five years

3.2 It has technical know-how of CDL Systems Ltd proprietary software.

3.3 It is authorized by CDL Systems Ltd to upgrade proprietary sofware.

3.4 It is capable of delivering complete software suites with minimal disruption and downtime;

3.5 It has the technical know-how to resolve software related issues and deliver the solutions on "as and when requested basis";

3.6 It has following capabilities

· System Design and Development · System Testing and Quality Assurance · System Maintenance and Support · Training personnel on CDL Systems Ltd proprietary software

3.7 It is financially capable to undertake and deliver this program.

3.8 It is capable of delivering all aspects of the requirements listed under Para 3 of this document;

3.9 It has carried out similar work in the recent* past for its other customers, whereby it has successfully installed CDL Systems Ltd proprietary software.

Note: Recent is defined as in the last five years.

4. Trade agreements and/or other obligations

This procurement is excluded from the following Trade Agreements: NAFTA: The services required are related to FSC 5820 - GSIN JI5820C, which are excluded in accordance with North American Free Trade Agreement (NAFTA) Annex 1001.1b-2, Section B, Item J; WTO-AGP: The services required are excluded in accordance with the World Trade Organization - Agreement on Government Procurement (WTO-AGP) Appendix 1, General Notes 1(c); CLCA: The Comprehensive Land Claims Agreements (CLCA) do not apply because the delivery points do not fall within the geographic areas covered by the CLCAs. This procurement is subject to the Agreement on Internal Trade (AIT): The Agreement on Internal Trade applies to this procurement. The limited tendering strategy is in accordance with Article 506.12. (a) as there is only one supplier who is able to meet the requirements of the procurement. Specifically, in order to ensure compatibility with STANAG 4586 Compliant Unmanned Aircraft Control Software, the software can be supplied by only a particular supplier due to the Exclusive Rights of the supplier.

5. Government Contracts Regulations Exception and Limited Tendering Reason Canada intends to award this contract to CDL Systems Ltd as it has been identified as a Sole-source vendor that can provide the required software. CDL Systems Ltd. is the Original Equipment Manufacturer (OEM) and has the intellectual property rights for the software.

This meets the requirements for sole source procurement in accordance with GCR, part 1, article 6(d), where only one person/company is capable of performing the contract.

6. Ownership of Intellectual Property There will not be any intelectual property (IP) developed under this contract. CDL Systems Ltd holds the IP rights for software and the IP rights will reside with CDL Systems Ltd.

7. Period of performance of the proposed contract The contract period is for (four) 4 years from contract award date.

8. A cost estimate of the proposed contract Total cost of this contract is estimated at $1,200,000.00 CDN, HST Included.

9. Name and address of the proposed contractor CDL Systems Ltd. 3553 31 Street NW Calgary, Alberta T2L-2K7 Canada

10. Suppliers' right to submit a statement of capabilities Suppliers who consider themselves fully qualified and available to provide the services and/or 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.

11. Closing date for a submission of a statement of capabilities The closing date for a submission of a statement of capabilities is on the covering page of this notice.

12. Inquiries and submission of statements of capabilities Please submit statements of capabilities or inquiries to:

Mr. Brent Sprigings Public Works and Government Services Canada Acquisitions Branch Electronics, Munitions and Tactical Systems Procurement Directorate Defence Communications Division (QD) 11, rue Laurier, Portage III, 8C2 #60, Gatineau (Québec), K1A 0S5 brent.sprigings@tpsgc-pwgsc.gc.ca Telephone (819) 956-7889 Fax (819) 956-0636

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.