120MM GUN BARRELS (LEOPARD 2 MBT)

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.

Definition of the requirement

The Department of National Defence has a requirement for the
supply of Qty. 35 of the 120MM Main Gun Barrels (Qty. 24 of
version L44 (NSN: 1015-12-323-7565) and Qty.11 of version L55
(NSN: 1015-12-356-2467)) in support of the Leopard 2 Main Battle
Tank (MBT).

Main Gun Barrel Version L44

NSN:1015-12-323-7565
Part Number: 2500194-321110.01.0
NSCM: D2396

Main Gun Barrel Version L55

NSN:1015-12-356-2467
Part Number: 2500273-321100.00.0
NSCM: D2396

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 Main Gun Barrels meet the following
requirements:

Commonality and compatibility are major considerations. The
Canadian Leopard 2 Fire Control Systems are already programmed
with the ballistic characteristics of the Rheinmetall Waffe
Munition (RWM) gun tubes. Additionnally, fit form function of a
substitute equipment such as the gun tube thermal shrouds and
muzzel reference system cannot be guaranteed.

Introduction of any other barrel will not be considered as it
will require re-qualification of the complete armament system on
the Leopard 2 MBT Fleet.

DND is currently managing 2 versions of the 120 MM (L44 and L55).

Applicability of the trade agreement(s) to the procurement

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

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

Justification for the Pre-Identified Supplier

It is intended to award a sole source contract to Rheinmetall
Waffe Munition (RWM), Unterluess, Germany, who is the only known
qualified source of supply in the world to provide the 120MM
(L44 and L55 versions) Main Gun Barrels in support of the
Leopard 2 Main Battle Tank (MBT). RWM is the only company
capable of performing the work as it is the Original Equipment
Manufacturer (OEM), has the technical expertise and owns the
Intellectual Property Rights for the Gun Barrels.

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".

Exclusions and/or Limited Tendering Reasons

As this procurement falls under FSC 10 (GSIN 1015 Guns, 75mm
through 125mm), it is excluded from the North American Free
Trade Agreement (NAFTA) in accordance with NAFTA Chapter 10,
Annex 1001.1b-1, Section A, General Provisions, Note 5 (h) of
Section "A" and from The World Trade Organization - Agreement on
Government Procurement (WTO-AGP) with Appendix 1, "General
Notes" of Annex 1.

Delivery date

The Main Gun Barrels must be delivered in 2014/2015.

Cost estimate of the proposed contract

The estimated value of the proposed contract is $11,000,000.00
CDN (including GST/HST)

Name and address of the pre-identified supplier

Rheinmetall Waffe Munition
Heinrich-Ehrhardt-Str.2
Unterluess, 29345
Germany

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.

Closing date for a submission of a statement of capabilities

The closing date and time for accepting statements of
capabilities is May 10, 2013 at 2:00pm
Daylight Saving Time (DST).

Inquiries and Submission of Statement of Capabilities

Suppliers may inquire or submit a statement of capabilities to:

Michel Mentor
Supply Team Leader
6C1 - Place du Portage,
11 Laurier Street,
Hull, Quebec
K1A 0S5
Telephone:(number on the official notice)
E-mail: (email on the official notice)

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.