HCLOS AN/GRC-245 UPG. TO BAND IV

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: ULTRA ELECTRONICS TCS INC. 5990 CH DE LA COTE DE LIESSE MONT-ROYAL Quebec Canada H4T1V7 Nature of Requirements:

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 to the proposed vendor.

2. Requirement

The Department of National Defence (DND) has a requirement to procure sixty Band IV Radio Frequency Units (RFUs) from Ultra Electronics in order to upgrade existing High Capacity Line of Sight (HCLOS) AN/GRC-245B (V) 5 Broadband Units (BBUs) from Band I and III+ that were originally supplied by Ultra Electronics. DND's intent is to upgrade the existing sixty in-service BBUs to Band IV capability by purchasing Band IV RFUs that will plug into the original BBUs. The Band IV RFUs is a "plug and play" module that can simply be connected to the existing BBUs by using a single coaxial cable. The upgraded BBUs are known as the AN/GRC-245B (V) 5. The upgraded HCLOS system will provide high throughput at long range for the line-of-site communication equipment.

This procurement will consist of the following components in quantities of sixty each:

· Amplifier, Radio Frequency Unit (RFU) Band IV · Antenna Band IV · Cable Assembly, Special Purpose, Electrical · Adapter, Mast · Case Electronic, Communication Equipment Transit Case for RFU Band IV · Band IV Software - V79a.0

The Contractor may be required to provide the Engineering Services including training to carry out the following work:

2.1 provide sixty HCLOS Radio Frequency Units capable of Band IV frequencies that must be "plug and play" compatible with Ultra's existing HCLOS BBUs;

2.2 upgrade Ultra firmware/hardware of existing HCLOS BBUs and be able to interface with existing antennas and other ancillaries;

2.3 provide upgraded Band IV HCLOS system while ensuring minimum downtime and conduct system acceptance testing;

2.4 provide Manuals, As-built drawings and pertinent documentation for all equipment upgrades in both official languages, as necessary;

2.5 provide Operator "Train the Trainer"/Administrator training and training material to DND personnel for the new functionality of equipment in both official languages, as necessary; and

2.6 provide disposal services at the end of life cycle for its equipment, ancillaries, cables and conduits etc. as applicable, in accordance with government's disposal guidelines.

3. Criteria for assessment of the Statement of Capabilities

Any interested supplier must demonstrate and substantiate by way of submitting a statement of capabilities that it has the following mandatory capabilities:

3.1 It has technical know-how of Ultra's proprietary HCLOS equipment that will be utilized to upgrade DND's currently in-service BBUs;

3.2 It is authorized by Ultra to upgrade Ultra's proprietary BBUs and ancillaries that were originally supplied by Ultra Electronics TCS Inc;

3.3 It is authorized by Ultra to upgrade proprietary firmware such that the legacy BBUs and ancillaries are compatible with the new components that will be supplied by the vendor;

3.4 It is capable of delivering complete plug and play system that will upgrade Ultra's existing BBUs to Band IV capability with minimal disruption and downtime;

3.5 It has the technical know-how, resources and equipment to upgrade the legacy BBUs, ancillaries and make them fully functional.

3.6 It is financially capable to undertake and deliver this initiative.

3.7 It is capable of delivering all aspects of the requirements listed under Para 2 of this document;

3.8 It has carried out similar work in the recent* past for its other customers, whereby it has successfully upgraded Ultra's proprietary equipment and delivered fully upgraded Band 4 radio system.

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

4. Trade agreements and/or other obligations

Canada's intent is to award a contract on sole source basis to Ultra Electronics TCS Inc, the Original Equipment Manufacturer (OEM) of the existing radios, who owns the intellectual property rights to the radios and its software/firmware. Ultra is the only supplier capable of performing the work, meeting the justification for sole source procurement in accordance with Government Contracting Regulations, Part 1, article 6(d), where only one person is capable of performing the contract. Canada does not have a "right for use" that would allow for upgrades to the radios without the vendor's involvement.

This procurement pertains to excluded goods (Federal Supply Classification 59, Electrical and Electronic Equipment Components) and, as such, is exempt from:

(a) The North American Free Trade Agreement (NAFTA), under Chapter 10, Annex 1001.1b-1 Goods, Section A, General Provisions; and

(b) The World Trade Organization Agreement on Government Procurement (WTO AGP) in accordance with Appendix 1 since the client is DND.

This procurement is subject to the Agreement on Internal Trade (AIT). The limited tendering provisions are applicable as per Article 506 of AIT, paragraphs 12 (a) and (b):

(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 it's representative; and

(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 exists.

This requirement is exempt from Comprehensive Land Claims Agreements, as no deliveries will be made to any of the Land Claim Settlement areas.

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.

5. Government Contracts Regulations Exception and Limited Tendering Reason

Canada intends to award this contract to Ultra Electronics TCS Inc. as it has been identified as a Sole-source vendor that can provide the goods and services required. Ultra Electronics TCS Inc. is the Original Equipment Manufacturer (OEM) and has the intellectual property rights for the software, firmware and the legacy equipment that is currently in service at DND. 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 intellectual property (IP) developed under this contract. Ultra Electronics TCS Inc. holds the Intellectual Property (IP) rights for its equipment, software and firmware and the IP rights will reside with the supplier.

7. Period of performance of the proposed contract

The contract period will be from the contract award date until all deliverables have been completely satisfied.

8. A cost estimate of the proposed contract Total cost of this contract is estimated at $3,909,931.83 CDN, GST and QST Included.

9. Name and address of the proposed contractor

Ultra Electronics TCS 5990 Côte de Liesse Montreal, Québec H4T 1V7, 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. Ricky Anand Public Works and Government Services Canada Acquisitions Branch Electronics, Munitions and Tactical Systems Procurement Directorate Defence Communications Division (QD) 11 Laurier Street Place du Portage, Phase III, 8C2 Gatineau, Quebec, Canada K1A 0S5

Telephone: (819) 956-1075 Facsimile: (819) 956-0636 E-mail: Ricky.Anand@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.