MICRO UNMANNED AIRCRAFT SYSTEMS

Trade Agreement: World Trade Organization - Agreement on Government Procurement (WTO-AGP) Tendering Procedures: Generally only one firm has been invited to bid Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: Prox Dynamics AS Nye Vakaasvei 56 Norway N-1395 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 requirement

The Department of National Defence has a requirement for the supply of quantity three (3) Military-off-the-shelf (MOTS) Micro Unmanned AircraftSystems (Micro-UAS) to perform Testing and Evaluation (T&E) activities by various communities of the Canadian Armed Forces (CAF). The T&E is required in order to develop the future technical requirement for that type of system and to develop a Concept ofOperation (CONOPS).

3. Criteria for assessment of the Statement of Capabilities: Minimum Essential Requirements Any interested supplier must demonstrate by way of a statement of capabilities that its product/system meets the following minimum mandatory physical and performance requirements:

• Requirements

(1) Three (3) units of Unmanned Aircraft System (Personal Reconnaissance System with Black Hornet); Training; Rental; and Simulation. (2) Option for additional quantity that maybe exercised during the contract period: Three (3) units of the UAS (Personal Reconnaissance System with Black Hornet); training; rental; and simulation.

• Manufacturer Offered: Prox Dynamics AS • Model Number Offered: 1550-25-161-8513 • General Minimum Requirements: (1) Military operational maturity: The current version of the Ground Control System (GCS) and propulsion system, avionics and structural components of the Micro-UAS shall be a Military-off-the-shelf product in recent (less than one year) active service with an allied military force (i.e. Five Eyes or NATO member countries). A new version or modified micro-UAS based on an operational system configuration shall be considered acceptable. (2) Visual Line-of-Sight (VLOS) range: Minimum1km (3) Beyond Visual Line-of-Sight (BVLOS) range: Minimum 500 meters Beyond Visual Line-of-Sight (BVLOS) operation with at least one concrete or brick wall separating the Micro-UAV and its operator. (4) Endurance: Minimum 15 minutes within -10° C to+49° C (5) Launch and recovery system: No additional equipment needed for launch or recovery (6) RF control and data frequencies: Certifiable by Industry Canada in 355-380 MHz range (7) Radio link robustness: Resistant to jamming, interference and loss of signal (8) System when carried on person: Comprised of all major components necessary for soldier in load bearing vest to prepare for and conduct autonomous operational combat flights and operator level field maintenance. At a minimum, includes 2 UAV's (with payloads), GCS, storage case, charger with battery (9) Total system weight: Maximum 2kg with 2 UAV's ready for deployment (10) Minimum number of UA: Two (2) (one EO and one IR payloads)

• Unmanned Aircraft (UA) Requirements: (1) UA Length and width: Maximum 25cm (2) UA Weight: Maximum 50g (3) UA Payloads: Meet both requirements on separate UA’s: High-res EO; and Combination of EO and IR

• Ground Control System (GCS) Requirements: (1) Data display: Provide video window with uninterrupted real time video from the payload while the operator is using System, Micro-UAV and payload control functions. (2) Mission planning: System Operator tools shall include the capability to program mission flight plans with the use of waypoints using MGRS gridding system. (3) Flight modes: Programmed route, assisted manual flight, loiter modes. All of which are modifiable in-flight. (4) Video: Recordable, playable on GCS, extractable for use on other systems and STANAG 4609 compliant.

3. Applicability of the trade agreement(s) to the procurement

This procurement is subject to the following trade agreement(s)

• Agreement on Internal Trade (AIT) • World Trade Organization - Agreement on Government Procurement (WTO-AGP) • North American Free Trade Agreement (NAFTA)

4. Justification for the Pre-Identified Supplier

Prox Dynamics is the Original Equipment Manufacturer (OEM) and retain full intellectual property rights and is the sole manufacturer for the proposed UAS as well as currently being the only company to produce Military-Off-the-Shelf (MOTS) Micro-UAS.

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:

Agreement onInternal Trade (AIT) - Article(s) 506 - 12(b) 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 exist.

North American Free Trade Agreement (NAFTA) - Article(s) 1016 - 2(b) where, for works of art, or for reasons connected with the protection of patents, copyrights or other exclusive rights, or proprietary information or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists.

World Trade Organization - Agreement on Government Procurement (WTO-AGP) - Article(s) XIII- 1(b) where the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute goods or services exist for any of the following reasons: i. the requirement is for a work of art; ii. the protection of patents, copyrights or other exclusive rights; or iii. due to an absence of competition for technical reasons;

7. Period of the proposed contract and delivery date

• Contract Period: Two (2) Years from contract award with no option period. • Delivery Date: The system must be delivered by March 17, 2017.

8. Cost estimate of the proposed contract and option

• The estimated value of the contract is $386,567.20 (GST/HST extra). • The estimated value of the option: $389,567.20 (GST/HST extra)

9. Name and address of the pre-identified supplier

Prox Dynamics AS Nye Vakas vei 56 N-1395 Hvalstad, Norway

10. Suppliers' 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.

11. The closing date for a submission of a statement of capabilities is November 14, 2016 at 2:00 p.m. EST.

12. Inquiries and submission of statements of capabilities are to be directed to

Inwon Lee Supply TeamLeader Acquisition Branch, Public Services and Procurement Canada (PSPC) 11 Laurier Ave, Gatineau PQ Telephone: (819) 420-0232; Facsimile: (819) 934-0610 E-mail: inwon.lee@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.