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ACAN s 
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Airlift Capability Project  –  MERX ACAN  –  CF Procurement  –  August  2006 Canadian Forces Strategic Airlift — MERX C-17 ACAN Notice In early July 2006, the Canadian government issued an ACAN (Advance Contract Award Notice) announcing its intention to place orders for four C-17 Globemaster III  transport aircraft from Boeing. Although the ‘National Security Exception’ was invoked, the notice took pains to exclude trade and various other agreements. The purpose of  the ACAN was to allow potential competitors to challenge the Boeing order and  thereby  avoid allegations that  the government was “single-sourcing”. A challenge was received. On 04 Aug 2006, PWGSC announced that “at least one supplier has submitted a  Statement of  Capabilities  to demonstrate  how they can meet all the advertised requirements” for the “strategic airlift requirement” ACAN. It was later revealed that two companies issued challenging for the ACP-Strategic (one challenger was Airbus Military, the other firm’s names hasn’t been released). However, on 11 Aug 2006, Michael Fortier, Minister of PW&GSC, announced that “... the Statements of  Capabilities  were reviewed ... [but] did not demonstrate that the challengers could meet the mandatory requirements published in the ACANs”. As a result, the way appears clear for the Harper government to place orders with Boeing for four C-17 Globemaster IIIs in the Spring of 2007 (likely in March, 2007). The text of the ACAN  (as published on the MERX website)  is reproduced below: ________________________________________ Strategic Airlift Capability Project (ACP-S) ACAN [ the Boeing C-17 Advance Contract Award Notice] ________________________________________ Reference Number                PW-$SSC-004-13706 Solicitation Number              W8475-07HA01/A Organization Name               Public Works and Government Services Canada Source ID                               FD.DP.QC.10077.C2 Associated Components     No Dates Published     2006-07-05 Revised         — Closing         2006-08-04 02:00 PM Eastern Daylight Saving Time EDT Details Category                          Aerospace GSINS                               N1510: AIRCRAFT, FIXED WING Region of Delivery         Ontario Region of Opportunity   — Agreement Type             NONE Tender Type                    Advance Contract Award Notice (ACAN) Estimated Value               — Solicitation Method        — Notice Description Airlift Capability Project   —   Strategic ACP-S Trade Agreement:                                         NONE Tendering Procedures:                 Generally only one firm has been invited to bid Attachment:                                                   None Non-Competitive Procurement Strategy:  Government Objectives                 Representing Best Interests/Value to Govt                 Comprehensive Land Claim Agreement: No Vendor Name and Address:         The Boeing Company         2401 E Wardlow Road         MC c078-0825         Long Beach California         United States         90807-5309 Nature of Requirements:  Airlift Capability - Strategic File Number:                       W8475-07HA01 1.  An Advance Contract Award Notice  (ACAN) Notwithstanding the usual requirement to post a notice for fifteen (15) calendar days, in this case, the ACAN will be posted for thirty (30) calendar days. 2.  Requirement: The Department of National Defence has a requirement to procure four (4) new Strategic Airlift Aircraft, sufficient to provide requisite strategic airlift to enable the operational flexibility to permit the conduct of multiple tasks in supporting domestic and deployed operations. You are hereby notified that the Crown intends to solicit a bid for four strategic airlift aircraft and  negotiate with The Boeing Company, the only known source of supply capable of meeting the technical mandatory requirements. There will be a requirement  to provide Canadian Industrial Benefits equivalent to 100 percent of the contract value. The Technical Mandatory requirements are listed below.  Suppliers,  in addition to submitting a  statement of capabilities,  shall be prepared to demonstrate that their proposed aircraft meets the Technical Mandatory capabilities through a Test Flight if so requested by Canada. The Aircraft: shall have sufficient unrefuelled range & payload ( 6,482 km / 3500nm with 39,000 kg / 85,980 lbs ) to support domestic and  internationally deployed operations; shall be capable of  supporting Canadian Forces domestic and global operations, in areas that may pose a threat  to transport aircraft. To provide the required flex- ibility in a theatre of operations, capable [of] take off  and  landing from unpaved, short  runways  4000 ft x 90 ft ( 1219 m x 27.4 m ) and  airdrop of  personnel and/or equipment; shall have  adequate cargo compartment size  to transport  NATO standard pallet- ized equipment (88 in x 108 in / 2.235 m x 2.743 m ), CF Helicopter assets  that are in the current CF inventory, and wheeled equipment in a combat ready configuration. The aircraft  must have  the ability  to load and  unload  palletized cargo at austere operating  locations  without  the  use  of  specialized  loading  equipment; shall be certified  to aviation certification standards  recognized by Canada by the contract award date [ie: Transport Canada, US FAA, or European JAA rules]; and shall be delivered as soon as possible but the first aircraft no later than 18 months after  contract  award  and  the  last  within  48  months  of  contract  award. 3.  Trade Agreements: The following Trade Agreements are not applicable: Comprehensive Land Claims Agreement (CLCA) North American Free Trade Agreement (NAFTA) World Trade Organization Agreement on Government Procurement (WTO-AGP) Agreement on Internal Trade (AIT) Set aside under the Procurement Strategy for Aboriginal Business Note: This procurement is exempt from the Agreement on Internal Trade as the National Security Exception was invoked. 4.  Government Contract Regulations and Limited Tendering Reason: Research indicates that the  Boeing C-17 Globemaster III  is the only aircraft  that meets the technical mandatory requirements above. Therefore, in accordance with the Government Contract Regulations (GCR) exception,  Part 1,  Section 6, (d) only one  person  or  firm  is  believed  to  be  capable  of  performing  the  contract. 5.  Period of contract and/or Delivery date: It is anticipated that a Contract will be awarded by March 2007. Delivery is expect- ed  to  commence  no  later  than  18  months  after  contract  award. 6.  Proposed Contractor: Name:  The Boeing Company   Address:  2401 E Wardlow Road,  MC C078-0825, Long Beach,  CA,  USA,  90807-5309 7.  Statement of Capabilities: Suppliers that have submitted a statement of capabilities will be notified in writing of PWGSC's decision whether or not to continue with the aforementioned procure- ment  or  to  open  the  requirement  for  competition. 8.  Closing Date for a submission of a statement of capabilities:  4 August 2006. 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. Roberge, Marie-Hélène System Support Contracting Office/Bureau de projet pour le Soutien des Systemes 400 Cumberland St. / 400, rue Cumberland, 11th Floor/11e étage Ottawa Ontario K1A 0S5 Telephone No.: (613) 998-9479 ( )     Facsimile No.: (613) 998-7245 Contact(s)   Contracting Authority Name  Marie-Hélène Roberge Address  [as above]