Airlift Capability Project – MERX ACAN – CF Procurement –
Canadian Forces Medium- to Heavy-Lift Helicopter (MHLH)
MERX Boeing CH-47 Chinook ACAN
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
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. By the time contract
details were revealed, total airframe numbers dropped to 15.
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
Associated Components No
Closing 2006-08-04 02:00 PM Eastern Daylight Saving Time EDT
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
Estimated Value —
Solicitation Method —
Medium to Heavy Lift Helicopter (MHLH)
Tendering Procedures: All interested suppliers may
submit a bid
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
United States 19142-0858
Nature of Requirements: Medium to Heavy Lift Helicopters (MHLHs)
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.
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
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
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,
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
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
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
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.
Telephone No.: (613) 991-5009 ( )
Facsimile No.: (613) 998-6711