As part of Canada's defence policy, Our North, Strong and Free, the federal government is committed to supporting members of our Canadian Armed Forces (CAF) with the modern equipment they need to complete their missions and keep Canadians safe.
Today, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement, and the Honourable Bill Blair, Minister of National Defence, announced that the federal government has awarded a contract to KNDS Deutschland GmbH & Co. KG (KNDS) for the long-term sustainment of the Leopard 2 Family of Vehicles (FoV).
The Leopard 2 is the main battle tank of the CAF. Ensuring our fleet has a consistently high level of operational availability for Canada's military operations is essential to our national security.
The contract is for an initial period of 6 years and 7 months, and includes 4 option periods that could extend the contract until March 2036. The contract has an estimated value of $2 billion (including taxes).
In addition to providing crucial services to the fleet, KNDS will establish a Regional Maintenance Centre located near Edmonton, Alberta, and undertake business activity in Canada as part of the Industrial and Technological Benefits (ITB) Policy. KNDS' economic commitments are estimated to create or maintain 295 well-paying jobs annually in the Canadian economy and contribute a total of $32.5 million annually to Canada's GDP over the initial contract period.
