LEOPARD 2 A4M MAIN BATTLE TANK UPG.

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: KRAUSS-MAFFEI WEGMANN GmbH & CO KG. KRAUSS-MAFFEI STRASSE 11 Germany D-80997 Nature of Requirements: LEOPARD 2 A4M MAIN BATTLE TANK UPGRADES

Advance Contract Award Notice

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 supplier. 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 officer will proceed with a full tendering process.

Requirement

The Department of National Defence (DND) has a requirement for Upgrades to the Leopard 2 A4M CAN Main Battle Tanks. The upgrade work will include the supply and integration of an updated commander's periscope, thermal imager for the gunner's sight and a tactical navigation system.

To complete this requirement, the supplier must possess the required intellectual property rights to the Leopard 2 A4M Canadian MBTs and shall be capable of maintaining and adjusting the corresponding original drawing set.

Krauss-Maffei Wegmann GmbH & Co. KG (KMW) owns the intellectual property data related to the Leopard 2 A4M CAN MBTs, as well as its associated software and Engineering Drawings. KMW, as the System Integrator, is the only company capable of performing the work as they have the technical expertise and own the Intellectual Property data of the central logic/main distribution and commander's system control unit required to fully integrate all of the upgraded subsystems of this requirement into the Leopard 2 A4M CAN MBTs.

Trade Agreements and Other Obligations

This procurement falls under military vehicles FSC 2350 and therefore is excluded from the North American Free Trade Agreement (NAFTA) and World Trade Organization - Agreement on Government Procurement (WTO-AGP) for DND with NAFTA Chapter 10, Annex 1001.1b-1, Section A, General Note 2 and WTO-AGP Appendix 1, Annex 1.

The Agreement on Internal Trade (AIT) applies with limited tendering strategy in accordance with AIT Article 506, 12 (a) for reasons of exclusive rights.

Section 6 (d), Part 1 of the Government Contract Regulations (GRC) applies, as only one firm is capable of performing the contract.

The Comprehensive Land Claims Agreements (CLCA's) do not apply as no goods will be delivered in a land claims area.

Estimated Period of Performance

The contract is to be completed by December 2014.

Estimated Cost of the proposed Contract

The estimated value of the proposed contract is $40,000,000.00 CDN (including GST/HST).

Only known source of supply Krauss-Maffei Wegmann GmbH & Co. KG Krauss-Maffei Strasse 11 Munich D-80997 Germany

Suppliers' Right to Submit a Statement of Capabilities

Suppliers who consider themselves qualified and available to provide the goods and services 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 also clearly demonstrate that the supplier has the rights, permissions and licenses necessary to complete the work on the Leopard 2 A4M CAN MBTs.

The Closing Date for a Submission of a Statement of Capabilities

The closing date for a submission of a statement of capabilities is by 14:00PM EDST on April 22, 2013.

Inquiries and Submission of Statement of Capabilities

All Inquiries and Submission of a Statement of Capabilities are to be sent to the Contract Authority:

Carol Ritchie Supply Team Leader 6C1-32 - Place du Portage, 11 Laurier Street, Gatineau, Québec K1A 0S5 Telephone: 819-956-0237 Email: Carol.Ritchie@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.