Canada’s Associate Minister of National Defence Julian Fantino on June 8 welcomed the government’s decision to award about $688.4 million in two contracts–for acquisition and sustainment–to Textron Systems Canada Inc. [TXT] to provide the Canadian Army with 500 Tactical Armored Patrol Vehicles (TAPV).

Fantino said: “Our investments in the Canadian Army now will provide our troops with the modern equipment they need to conduct their missions safely and effectively for decades to come.”

“The Textron TAPV will deliver an unmatched blend of survivability, crew protection, power, mobility and payload versatility,” Neil Rutter, general manager of Textron Systems Canada, said in a statement. “Our program team is ready to move forward to produce this modern and upgradable 4 x 4 armored vehicle, which will serve the Canadian Army extremely well for the next 25 years.”

The selection is subject to the Government of Canada’s Industrial Regional Benefits policy, supporting skilled Canadian workers and economic growth. One hundred per cent of the value of the two contracts must be re-invested by Textron Systems Canada Inc. in the Canadian economy–a total of approximately $688.4 million.

This agreement commits Textron to re-investing at least 25 per cent of the acquisition contract of about $586 million and 40 per cent of the sustainment contract of approximately $102.3 million in the creation of new skilled work in the manufacture and long-term support of the TAPV in Canada. There are approximately five years of in-service support included in the support contract, with options extend by 20 one-year periods to cover the life expectancy of the vehicle, estimated at 25 years.

The total project costs associated with this procurement approved by Treasury Board is approximately $1.21 billion.

Previously, Canada pre-qualified Textron, BAE Systems, Force Protection Inc.[GD], Nexter, Oshkosh Corp.[OSK] and Thales Australia via Thales Canada. Also prequalified were a total of nine vehicles provided by the companies.

The TAPV project is one of four Family of Land Combat (FLCV) projects determined in July 2009. These new vehicles represent an improvement over the Canadian Army’s LAVII Coyote and the Armored Patrol Vehicles (RG-31) with the delivery of a strengthened degree of survivability to its crew.

The Commander of Land Force Atlantic Area (LFAA) Brig.-Gen. C.C. Thurrott said, “These vehicles will provide the men and women of the Canadian Army with an excellent multi-role combat capability, protecting them from a variety of threats, while enabling them to remain mobile and agile when executing a wide variety of missions.”

The first deliveries of the TAPV are expected in July 2014. Full Operational Capability is expected in 2016.

Engineered over five years to meet or exceed Canadian requirements, the Textron TAPV is a Technology Readiness Level 8 vehicle that has successfully completed extensive testing to confirm its ballistic, blast, mobility and reliability levels, the company said in a statement.

The Canadian Textron TAPV team includes Kongsberg Protech Systems Canada, Rheinmetall Canada, and EODCEngineering Office Deisenroth Canada.

As the program ramps up, Textron officials said Canadian companies including Michelin, General Kinetics, Evraz North America, SED Systems, Ontario Drive and Gear, Mobile Climate Control and others are expected to join the supply chain.