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ACAN s 
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Airlift Capability Project  –  MERX ACAN  –  CF Procurement  –  August  2006 Canadian Forces Medium- to Heavy-Lift Helicopter (MHLH) MERX   Boeing CH-47 Chinook   ACAN Notice In early July 2006, the Canadian government issued an ACAN (Advance Contract Award Notice) announcing its intention to place orders for sixteen Boeing CH-47 Chinook transport helicopters. As with the C-17 ACAN, an ‘National Security Ex- ception’ was invoked, taking pains to exclude trade and various other agreements. The ACAN’s purpose 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 “Medium- to Heavy-Lift Helicopters” ACAN. (The name of the company which issued that challenge was not released). Update: 07 July 2009 – David Pugliese reports that an announcement is expected that a contract with Boeing Rotorcraft Systems for 16 CH-147Fs has been signed. The text of the ACAN  (as published on the MERX website)  is reproduced below: ________________________________________ Medium to Heavy Lift Helicopter  (MHLH)  – ACAN [the Boeing CH-47 Advance Contract Award Notice] ________________________________________ Reference Number                PW-TALC-002-13708 Solicitation Number              W8475-06HL01/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        2006-08-02 Closing         2006-08-04 02:00 PM Eastern Daylight Saving Time EDT Details Category                          Aerospace GSINS                               N1520: AIRCRAFT, ROTARY WING Region of Delivery         Newfoundland, Prince Edward Island, Nova Scotia, New                                           Brunswick, Quebec, National Capital Region, Ontario,                                           Manitoba, Saskatchewan, Alberta, British Columbia,                                           Yukon, Northwest Territories, Nunavut Region of Opportunity   — Agreement Type             NONE Tender Type                    Advance Contract Award Notice (ACAN) Estimated Value               — Solicitation Method        — Notice Description Medium to Heavy Lift Helicopter  (MHLH) Trade Agreement:                                         NONE Tendering Procedures:                 All interested suppliers may submit a bid Attachment:                                                   None Non-Competitive Procurement Strategy:  National Security                 Comprehensive Land Claim Agreement: No Vendor Name and Address:         The Boeing Company         P.O. BOX 16858  MC P1-43         PHILADELPHIA  Pennsylvania         United States  19142-0858 Nature of Requirements:  Medium to Heavy Lift Helicopters (MHLHs) File Number:                       W8475-06-HL01/A 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 a minimum of sixteen new MHLHs and  their long-term in-service support that covers a period of 20 years with options to be exercised at Canada's sole discretion, to extend for the life of the helicopters. You are hereby notified that the Crown intends to solicit a bid for the above requirement and negotiate a contract with The Boeing Company, the only known source of supply capable of meeting the high level mandatory capability require- ments There will be a requirement  to provide Canadian Industrial Benefits [replaced by "Industrial and Regional Benefits" on 02 August 2006] equivalent to 100 percent of the contract value. The high level mandatory capability requirements are listed below.  Suppliers, in addition to submitting a statement of capabilities, shall be prepared to demon- strate that their proposed aircraft meets the high level mandatory capability re- quirements through a Test Flight if so requested by Canada. HIGH LEVEL - MANDATORY CAPABILITY REQUIREMENTS The helicopter must provide the capability for the safe and effective movement of personnel and equipment in all CF operating environments. The aircraft must meet mandatory requirements in the following areas: Internal Lift: Cabin space to accommodate an infantry platoon (30 soldiers) with full combat equipment including weapons, body armour, rucksacks, rations and communications (4,763 kg); External Lift: Lift multiple loads, including a Light Weight Field Howitzer  [ie: the CF's new 155mm M777] and associated equipment (a minimum of 5,443 kg); Temperature and Altitude: Power and endurance to accomplish the lift and range parameters defined above, at altitudes and temperatures found in the most likely CF theatres of operations (1,220 m above sea level and [+] 35 degrees Celsius); Certification: Aircraft must be certified to aviation certification standards recog- nized by Canada by the contract award date [ie:  'mil-spec', FAA, or JAA rules]; Fleet Size: Minimum fleet of 16 aircraft, sufficient to sustain a minimum of three deployed helicopters in addition to maintenance, test and evaluation, and training at two main operating bases; and Delivery: Delivery date of first aircraft to be no later than 36 months after contract award and final aircraft delivery no later than 60 months after 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 CH-47 Chinook is the only aircraft that meets the high level mandatory capability requirements above. Therefore, in accordance with the Government Contract Regulations (GCR) exception, Part 1,  Section 6, (d) only one person  or firm  is believe[d]  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 July 2007. Delivery is expected to  commence  no  later  than  36  months  after  contract  award. 6.  Proposed Contractor: Name:  The Boeing Company   Address:  P.O. Box 16858  MC P1-43,  Philadelphia PA,  19142-0858,  USA. 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. 9. Inquiries and Submission of Statements of Capabilities: Suppliers may inquire or submit a statement of capabilities to: Mr. Maurice Chow, Manager Land, Aerospace and Marine Systems & Major Project Sector Public Works and Government Services Canada 6C1, Phase III, Place du Portage 11 Laurier Street, Gatineau, Quebec, K1A 0S5 Telephone: (613) 991-5009 Maurice.chow@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. Chow,  Maurice Telephone No.: (613) 991-5009 ( ) Facsimile No.: (613) 998-6711