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Leopard 2 Main Battle Tanks  –  MERX  –  CF Procurement  –  March  2008 Tank Replacement Project — Upgrade and Conversion of up to 100 Used Leopard 2  Tanks in Canada — MERX LOI Notice Update 06 Jan 2010:  Industry is being invited to inspect 42 Leopard 2A4s now in storage in Montreal prior to bidding on the refurbishment of the tanks for training. Update 28 Mar 2009:  DND now wants to rebuild at least 40 used Leopards to full 2A6M CAN standards in Germany.  These vehicles would replace loaned  German Leopards – 20 tanks going to the CF in Afghanistan, 20 going to the Bundeswehr. Still no word on who will refurbish and upgrade the 40 ex-Dutch Leopard 2s which arrived in Canada in Dec 2008 and still sitting at 202 Workshop Depot in Montreal. The Tank Replacement Project aims to replace the CF’s aging fleet of  Leopard C2 tanks and associated support vehicles. Phase 1 involves loaned  German Leopard 2 A6M deployed  to Kandahar. Phase 2 began with the purchase of  100  ex-Dutch Army Leopard 2s. This LOI Notice deals with how those 100 tanks (which were in storage for a time) will be refurbished, ‘Canadianized’ and, in some cases, re-roled. Questions have been swirling about on the exact breakdown of these 100 tanks, to what degree they will be modernized, and how support vehicles will be handled. In most cases,  the LOI answers these questions.  Two sub-types of  Leopard 2 were bought from the Netherlands –  the uparmoured, long-gunned Leopard 2 A6s and the short-barreled Leopard 2 A4s.  No support vehicles were included in this deal. As per DND’s original plan, 20 of the Leopard 2 A6s will be upgraded to the mine- protected Leopard 2 A6M standards. However, in a twist, these 20 vehicles will be offered to Germany as replacements for their loaned  tanks already in Afghanistan. These ‘loaners’ would then officially become CF Leopard 2 A6M CANs. A further twenty 2 A6s might be upgraded to 2 A6M CAN standard but a final decision has yet to be made.  Plans for  the remaining 80  Leopard 2 A4 tanks are now revealed. At least 40 (and possible 60) of  the remaining 80 Leopard 2 tanks will not be fitted with the extra 2 A6-type armour but they will be given the longer gun barrel of that later type. Leopard 2 A4+  is the designation applied  to such hybrid conversions. The choice may seem an odd one but  the extra protection is irrelevant for training. At the same time, any reserve Leopard 2 A4+ can be fitted with the extra armour to become a Leopard 2 A6M and,  thus,  be ready  for deployment into any war zone. Of the rest of the ex-Dutch Leopard 2 A4s, 12 will become Logistic Stock Vehicles (ie they will be used as sources of spares) and 6 hulls will be converted into ARVs (Armoured Recovery Vehicles) to replace the in-service, Leopard 1-based Taurus. Of the six ARVs, two will be fully-deployable, two in reserve, and two for training. Leopard 2-hulled ARVs are dubbed the Bpz ARV 3 ( from the German designation Berge- panzer 3 Büffel ). Two  ARV 3s bought from Germany  currently serve  in Afghanistan in support of  CF Leopard 2 A6M  tanks. Since the Leopards were on loan from Germany, it comes as a surprise that the two ARVs were bought as an Urgent Operational Request – there having  been  no  public notice of  this UOR  purchase  back in  August of  2007. [1] A strange aspect of the LOI is that no mention is made of replacement engineering vehicles. The CF operates two other Leopard 1-hulled support vehicles –  Badger Armoured Engineering Vehicles (AEV) and Beaver armoured bridgelayers (AVLB). Neither AEV or AVLB  replacements are mentioned  in this LOI.  Presumably, DND intends to address the Badger – currently deployed in Afghanistan – and  Beaver in a seperate project.  It is hard to imagine such useful vehicles not being replaced. The LOI Notice’s text  (as published on the MERX website)  is reproduced below: [1] At the time, all attention was on the 20 Leopard 2 A6Ms (19 of which deployed to Afghanistan). “Bpz ARV 3” as used in this LOI is a bit garbled. DND is unlikely to adopt the name Büffel since, unofficially, the Bison MRVs are dubbed ‘Buffalo’. Thanks go to Sgt Patrick Vigneault for clarifying the nature of ARV 3 procurement. ________________________________________ Tank Replacement Project  –  LOI Notice [ Upgrade and Conversion of  the ex-Dutch Leopard 2  Tanks ] ________________________________________ Reference Number                PW-$$BL-225-16850 Solicitation Number              W8476-080001/A Organization Name               Public Works and Government Services Canada Source ID                               FD.DP.QC.10077.C2 Associated Components     No Dates Published     2008-03-19 Revised        — Closing         2008-04-09  11:59 PM  Eastern Daylight Saving Time  EDT Details Category                          Special Purpose Vehicles GSINS                               N2350: "COMBAT, ASSAULT, AND TACTICAL                                           VEHICLES, TRACKED" Region of Delivery         Quebec Agreement Type             NONE Tender Type                    Letter  of  Interest  ( LOI ) Estimated Value               — Solicitation Method        — Notice Description Tank Replacement Project Trade Agreement:                                         NONE Tendering Procedures:                                 — Attachment:                                                   None Non-Competitive Procurement Strategy:  N/A - P&A/LOI Only Comprehensive Land Claim Agreement:   No Nature of Requirement LETTER OF INTEREST   TANK REPLACEMENT PROJECT 1.   GENERAL 1.1.  The Government of  Canada  (GOC)  has a requirement for the upgrade and conversion of  up to 100  Leopard 2  tanks in Canada. 2.   PROJECT DESCRIPTION 2.1.  The Tank Replacement Project will provide Canada with a long-term, sustain- able replacement of  its current main battle tank fleet  [ie: Leopard C2s],  including some variants such as recovery vehicles  [ie: Taurus ARV]. The project consists of 2 phases as follow: 2.2.  Phase 1 of  the Project, which is currently in progress [Leopard 2 A6M CANs being deployed in Afghanistan], includes the loan, support and sustainment of 20 mission-ready Leopard 2 A6M  Main Battle Tanks (MBT) and 2  [ Bergingstank 3 Büffel] armoured recovery vehicles (ARV) to meet urgent operational requirements in Afghanistan in 2007. It also includes the procurement of  100 Main Battle Tanks [from the Netherlands]  and  the restitution of  the loaned German tanks. 2.3.  An agreement was signed between the Government of Canada and The Neth- erlands Government  on 14 December 2007  for the purchase of  80  Leopard 2 A4 and  20 Leopard 2 A6  main battle tanks which will be the basis for all future work. 2.4.  The restitution  may be accomplished through a  restitution-in-kind  approach by which the Canadian government will use the 20 Leopard 2 A6 tanks purchased from the Netherlands. These tanks would  be brought to the same configuration as the tanks loaned from Germany. As a result,  the loaned  [German] Leopard 2 A6M tanks currently in Afghanistan would be retained by Canada for Phase 2. 2.5.  Phase 2 includes the upgrade and conversion of  the [ex-Dutch] tanks,  repair, and/or overhaul of  major components to be completed in Canada.  Canada is con- sidering selecting one contractor as a system integrator for the entire Phase 2 work. Canada may also consider one contractor for the work associated with the tanks and a second contractor for the work associated with the [other] variants. 3. BACKGROUND 3.1.  The intensity  and  complexity of  recent  military  operations in countries  like Lebanon, Iraq and Afghanistan have shown that main battle tanks provide military forces with  protection, mobility and  firepower that  cannot  be  matched  by  more lightly armoured wheeled vehicles. 3.2.  The capabilities provided  by Leopard 2  tanks  increase the  flexibility of  the Canadian Forces to employ  ground forces in medium to high threat environments until 2035. 4.  PURPOSE OF LETTER OF INTEREST 4.1.  The purpose of  this Letter of  Interest  (LOI)  is to communicate the Canadian Forces'   requirements  and  solicit  information  and   feedback  from  the  industry regarding possible upgrade and conversion to the MBT and/or recovery variants. The  information  may  be used  to support the Crown's  decision-making  process such as finalizing its requirement and determining its procurement strategy. 4.2.  It is anticipated that subsequent to this LOI, the government will issue a request for Price and Availability (P&A) information. 4.3.  This is not a bid solicitation and  no contract will result directly from this  LOI or subsequent  Price and Availability  (P&A)  request. 5.  PROJECT SCOPE 5.1.  The interim requirement is contained within Annex A. The Statement of Work (SOW) will  be developed  in due course based on an internal analysis of available information from various sources, including information received from industry. In general, the project scope may consist of the following: 5.1.1.  Upgrades of  up to  92  Leopard 2  tanks to a Canadian  Leopard 2 standard; 5.1.2. Conversion of up to 8 Leopard 2 A4 tanks to Canadian Leopard 2 Bpz ARV 3 recovery vehicle [ ie: Büffels, Bergepanzer 3 being German for Bergingstank 3 ]; 5.1.3.  Initial  Repair and  Overhaul  (R&O)  of  up to 100  tanks or their major com- ponents consisting of  Leopard  2 A6M  (up to 20)  and  Leopard  2 A4  (up to 80). However, the Department of  National Defence may opt to conduct the Repair and Overhaul utilizing internal resources [ie: the Workshop Depot 202, Montreal]; and 5.1.4.  Logistic support associated with the introduction of this new capability into the Canadian Forces.  Potential work  may also  include requirements for munitions & test, ancillary and  training equipments. The requirement  for  In Service Support (ISS) is not yet determined. 5.1.5.  Following the upgrade and conversion, Canada's Main Battle Tank require- ment may be as follows: Quantity   [ / ]          Vehicle                            [ / ]        Requirement 20  [ / ]     Tanks (2 A6M CAN)                      [ / ]...     Operational tanks   2   [ / ]      Armoured Recovery Vehicle...    [ / ]        Operational-Ready Level 20  [ / ]      Tanks (configuration TBD)          [ / ]        Operational Tanks   2  [ / ]      Armoured Recovery Vehicle        [ / ]        Operational Tanks... 20  [ / ]      Tanks at Training Level (2 A4+)  [ / ]        Training Tanks...   2  [ / ]      Armoured Recovery Vehicle        [ / ]         Training Tanks... 20  [ / ]      Tanks at Training Level (2 A4+)  [ / ]         Training Tanks...   2  [ / ]      Armoured Recovery Vehicle        [ / ]          Training Tanks... 12  [ / ]      Logistic Stock Vehicles                 [ / ]          TBD 5.1.6.  The upgrade and conversion will  be associated with, but  not limited  to the following issues, as detailed in Annex A: 5.1.6.1.  Primary Focus/Core Requirements: i.     Canadian Communications; ii.    Recovery Vehicle; iii.   Survivability/Protection Technologies; iv.   Electric Turret Drive; v.    Climate control including crew cooling; Integrated Logistic Support (ILS); and vi.   Repair and Overhaul. 5.1.6.2.  Secondary Focus / Longer Term Requirements: i.     Component Obsolescence; ii.    Firepower; iii.   Fire Control System; iv.   Turret Ergonomics and Configuration; v.    Mobility; vi.   Tank Mounted Implements (mine rollers, mine ploughs and dozer blade); and vii.  Miscellaneous. 6.  PROCUREMENT MILESTONES 6.1. In providing responses the following schedule should be utilized as a baseline Milestones Projected Timeline LOI closing   9 April 2008 Price and Availability release   June 2008 Price and Availability closing   September 2008 Draft Request for Proposal   April 2009 Request for Proposal release   June 2009 Request for Proposal closing   September 2009 Contract Award (CA)   November 2009 Initial delivery of 20 tanks and 2 recovery vehicles   2011 Project Closeout   TBD 7.  SECURITY 7.1.  Respondents  are  requested  to  indicate  their  ability, and  that of  any  sub- contractors,  to accommodate  personnel  and  facility  security  requirements,  to- gether  with controlled  goods  restrictions (e.g. International Traffic in Arms Reg- ulations (ITAR)), export licenses and 3rd party release requirements. Respondents are  to  clearly  identify  any implications  that may affect delivery of  the proposed project  in accordance  with the  Industrial  Security Program of  Public Works and Government Services Canada (PWGSC) requirements. 8.  INDUSTRIAL AND REGIONAL BENEFITS (IRB) 8.1.  The work  is to be  performed in  Canada  to the maximum  extent possible,  in such a manner as to not put at risk  the operational requirement. In all aspects, the maximization of  Direct work in Canada should make business sense. 8.2.  The  eventual  contractor  will  be required  to provide  high-quality  Industrial and  Regional Benefits (IRB) equivalent  to  100% of  the contracted value. All IRB requirements will  be negotiated  and  accepted  by Industry Canada ( IC ) and  the regional development agencies prior to Contract Award. 9.  REQUESTED INFORMATION 9.1.  Based on the requirements detailed in this document,  the LOI seeks potential suppliers to provide the following information: 9.1.1.  Capability  of  the respondents  to have access  to the  Intellectual  Property (IP)  Rights of  the Leopard 2 A6M, Leopard 2 A4 and recovery vehicle and  other upgrades.  Respondents are requested  to demonstrate  their ability  to access and use  the  Intellectual  Property of  the vehicle systems, sub-systems and  any com- ponents. 9.1.2. The respondent's interest and capability for the different aspects of the work addressed  at  Annex A.  Respondents  are invited  to provide  their comments and concerns on the technical aspect, feasibility and  reasonability of  the requirement. Respondents  should   feel   free  to   provide  alternative  recommendations  where applicable.  Respondents should explain  their rationale for a change or addition to the requirement. 9.1.3.  In responding to this LOI,  respondents should clearly identify all assumpt- ions with clear explanations for why those assumptions were made. 9.1.4.   Industrial capacity and  infrastructure requirement for this work and if such capacity and infrastructure are in place in Canada. 9.1.5.  A statement of  the delivery capability.  Indicate  whether or not  the initial... delivery of  20  tanks and  2 recovery vehicles in 2011 can be achieved. If not, then provide  the best possible  delivery  schedule.  The  respondents should  highlight any critical areas that will impact  the schedule either positively or negatively. 9.1.6.  Information on any controlled goods restrictions  (e.g.  International  Traffic in  Arms  Regulations  ( ITAR ),  Controlled  Goods  Regulations), export  licenses, security and 3rd party release implications that may affect delivery of the solution, and constraints and assumptions associated with  the proposed upgrade and con- version. 9.1.7.  Company point of contact for future communications. 10.  NOTE TO POTENTIAL RESPONDENTS 10.1.  This is not a bid solicitation and a contract will not result from it. 10.2.  The Statement of Operational Requirement (SOR) is currently being develop- ed and is subject to change based on the evolution of the requirement, which may be as a result of information provided by industry. 10.3.  Potential respondents are advised that any information submitted to Canada in response to this LOI  may be used  by Canada in the development of  a competi- tive Request For Proposal (RFP). 10.4.  The issuance of this LOI does not create an obligation for Canada to issue a Price and Availability (P&A) and  Request For Proposal (RFP), and  does not bind Canada legally or otherwise, to enter into any agreement or to accept or reject any suggestions. 10.5.  Canada assumes  no responsibility  or obligation with respect  to the cost of preparing a response to this LOI. 10.6.  Participation in this LOI  is not a condition or prerequisite for participation in any subsequent Price and Availability (P&A) or Request For Proposal (RFP). As a result of this LOI there will be no short  listing of  firms for the purposes of  under- taking future work. 10.7.  Respondents to this LOI should clearly identify all submitted information as to whether or not it must be considered as confidential and/or proprietary. Inform- ation provided  in response to this LOI will  be divulged only to ... officials author- ized to participate in this pre-procurement activity. However, respondents must be aware  that  aspects of  their response  may be used  as a basis  for  modifying  the draft documents, as any future procurement for this requirement is prepared. 10.8.  PWGSC reserves the right  to meet  with  industry  concerning the  feedback, suggestions or alternative approaches related to the project scope. 11.  ENQUIRIES 11.1. All enquiries, clarification requests and other communications related to this LOI shall be directed exclusively to the point of contact named below. 11.2.  Interested  suppliers that  intend to respond to this LOI are requested  to ad- vise PWGSC by email so that questions and answers, clarification or changes may be promulgated if required. 12.  CLOSING DATE 12.1.  Responses to this LOI are to be submitted to the point of  contact  identified below, on or  before  the close of  business  on 9 April 2008.  You are requested  to submit  fourteen  (14)  hard and electronic copies of  your response to the point of contact. 13.  CONTRACTING AUTHORITY 13.1  The single point of contact for this LOI is: Céline Lajoie Public Works and Government Services Canada Land, Aerospace and Marine Systems & Major Projects Sector Place du Portage, Phase III, Floor 6C1 11 Laurier Street Gatineau, Quebec K1A 0S5 Tel.: (819) 956-6181 Fax.: (819) 956-0648 E-mail: celine.lajoie@pwgsc.gc.ca 14. ANNEX A Annex A is available upon request. Please communicate with the point of contact. Delivery Date: 15/04/2008 The Crown retains the right to negotiate with suppliers on any procurement. Documents may be submitted in either official language of Canada. Lajoie, Céline 11 Laurier St./11, rue Laurier Place du Portage Phase III 6C1 Gatineau Québec K1A 0S5 (819) 956-6181 ( ) Contacts Contracting Authority Name                    Céline Lajoie Address               11 Laurier St./11, rue Laurier  Place du Portage  Phase III  6C1 City                       Gatineau State / Province   Québec Country                Canada Postal Code         K1A 0S5 Phone                   (819) 956-6181 ( ) Fax                        (819) 956-0648