The ERC contract includes the delivery of 85 ERC vehicles, 24 armoured cabs, and more. Credit: Rheinmetall.

The Government of Canada has awarded two contracts to Rheinmetall Canada for the acquisition of Enhanced Recovery Capability (ERC) vehicles and in-service support (ISS).  

This initiative aims to strengthen the Canadian Armed Forces (CAF) by enhancing its operational capabilities both domestically and internationally. 

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Canada Public Services and Procurement Minister and Québec Lieutenant Jean-Yves Duclos said: “The Government of Canada is committed to supporting the CAF and investing in our country’s economy through open, fair and transparent procurement processes.  

“Today’s announcement will enable the Enhanced Recovery Capability project to provide our CAF members with the essential equipment they need to serve safely and effectively during recovery operations and training.” 

The acquisition contract is valued at approximately C$374m ($266.30m), covering a period of five years.  

It includes the delivery of 85 ERC vehicles, 24 armoured cabs, and associated equipment, as well as provides options for additional procurement.  

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This initiative aligns with Canada’s 2017 defence policy, ‘Strong, Secure, Engaged’. 

Meanwhile, the ISS contract, valued at C$30.4m, spans an initial eight-year term with optional extensions of up to 16 years.  

It encompasses overhaul, major repairs, and spare replenishment.  

This ensures the effective maintenance and support of the ERC vehicles once delivered to the CAF. 

Rheinmetall Canada president and CEO Pietro Mazzei said: “The Enhanced Recovery Capability project demonstrates Rheinmetall’s distinct ability to leverage its global footprint and technologies to address the needs of the Canadian Armed Forces.  

“This contract award reinforces Rheinmetall Canada’s reputation as a leading systems integrator and creates high-tech career opportunities in Saint-Jean-sur-Richelieu and the Montérégie region.” 

The procurement process began with an invitation to qualify in 2019, leading to five suppliers being qualified.  

The request for proposal was issued to these suppliers in 2022 and concluded in 2023, with bid evaluations completed by April 2024.