L O I s
Leopard 2 Main Battle Tanks – MERX – CF
Procurement – March 2008
Tank Replacement Project — Upgrade and Conversion of
up to 100 Used Leopard 2 Tanks in Canada — MERX LOI Notice
Updates Oct 2010/Apr 2011: DND has issued NPPs for converting
spare Leopard 2A4 hulls into 13 Leopard 2 AEVs + 5
options and 8 Leopard 2 ARVs + 4 options. The
numbers don't match spare hulls, hence the purchase of surplus Swiss Leo 2s.
Update 06 Jan 2010: Industry is being invited to inspect 42
Leopard 2A4s now in storage in Montreal prior to bidding on the refurbishment of the tanks for training.
Update 28 Mar 2009: DND now wants to rebuild at least 40 used
Leopards to full 2A6M CAN standards in Germany. These vehicles would replace loaned German
Leopards – 20 tanks going to the CF in Afghanistan, 20 going to the Bundeswehr. Still
no word on who will refurbish and upgrade the 40 ex-Dutch Leopard 2s which arrived in Canada in Dec 2008 and
still sitting at 202 Workshop Depot in Montreal.
The Tank Replacement Project aims to replace the CF's aging fleet of Leopard C2 tanks and associated support vehicles. Phase 1 involves loaned German Leopard 2 A6M deployed to Kandahar. Phase 2
began with the purchase of 100 ex-Dutch Army
Leopard 2s. This LOI Notice deals with how those 100 tanks (which were in storage for a time) will be
refurbished, 'Canadianized' and, in some cases, re-roled.
Questions have been swirling about on the exact breakdown of these 100 tanks, to what degree they will be modernized,
and how support vehicles will be handled. In most cases, the LOI answers these questions. Two sub-types
of Leopard 2 were bought from the Netherlands – the uparmoured, long-gunned Leopard
2 A6s and the short-barreled Leopard 2 A4s. No support vehicles were included in this deal.
As per DND's original plan, 20 of the Leopard 2 A6s will be upgraded to the mine- protected
Leopard 2 A6M standards. However, in a twist, these 20 vehicles will be offered to Germany as replacements
for their loaned tanks already in Afghanistan. These 'loaners' would then officially become CF
Leopard 2 A6M CANs. A further twenty 2 A6s might be upgraded to 2 A6M CAN standard but a final
decision has yet to be made. Plans for the remaining 80 Leopard 2 A4 tanks are now revealed.
At least 40 (and possible 60) of the remaining 80 Leopard 2 tanks will not be fitted with the extra
2 A6-type armour but they will be given the longer gun barrel of that later type. Leopard 2 A4+ is
the designation applied to such hybrid conversions. The choice may seem an odd one but the extra
protection is irrelevant for training. At the same time, any reserve Leopard 2 A4+ can be fitted with
the extra armour to become a Leopard 2 A6M and, thus, be ready for deployment into any war
Of the rest of the ex-Dutch Leopard 2 A4s, 12 will become Logistic Stock Vehicles (ie they will be used as
sources of spares) and 6 hulls will be converted into ARVs (Armoured Recovery Vehicles) to replace the in-service,
Leopard 1-based Taurus. Of the six ARVs, two
will be fully-deployable, two in reserve, and two for training.
Leopard 2-hulled ARVs are dubbed the Bpz ARV 3 ( from the German designation Berge- panzer 3
Büffel ). Two ARV 3s bought from
Germany currently serve in Afghanistan in support of CF Leopard 2 A6M tanks. Since
the Leopards were on loan from Germany, it comes as a surprise that the two ARVs were bought as an Urgent
Operational Request – there having been no public notice of this UOR purchase
back in August of 2007. 
A strange aspect of the LOI is that no mention is made of replacement engineering vehicles. The CF operates two other
Leopard 1-hulled support vehicles – Badger
Armoured Engineering Vehicles (AEV) and Beaver armoured bridgelayers (AVLB). Neither AEV or AVLB
replacements are mentioned in this LOI. Presumably, DND intends to address the Badger –
currently deployed in Afghanistan – and Beaver in a seperate project. It is hard to imagine
such useful vehicles not being replaced.
[ Update: DND published an NPP for Leopard 2A4 AEV conversions in Oct 2010. This was part of the Force Mobility Enhancement project. No mention of
The LOI Notice's text (as published on the MERX website) is reproduced below:
 At the time, all attention was on the 20 Leopard 2 A6Ms (19 of which deployed to Afghanistan). "Bpz
ARV 3" as used in this LOI is a bit garbled. DND is unlikely to adopt the name Büffel since,
unofficially, the Bison MRVs are dubbed 'Buffalo'. Thanks go to Sgt Patrick Vigneault for
clarifying the nature of ARV 3 procurement.
Tank Replacement Project – LOI Notice [ Upgrade and Conversion of the ex-Dutch
Leopard 2 Tanks ]
Reference Number PW-$$BL-225-16850
Solicitation Number W8476-080001/A
Public Works and Government Services Canada
Associated Components No
Closing 2008-04-09 11:59 PM Eastern Daylight Saving Time EDT
Special Purpose Vehicles
N2350: "COMBAT, ASSAULT, AND TACTICAL
Region of Delivery Quebec
Agreement Type NONE
Tender Type Letter of Interest
( LOI )
Estimated Value —
Solicitation Method —
Tank Replacement Project
Non-Competitive Procurement Strategy: N/A - P&A/LOI Only
Comprehensive Land Claim Agreement: No
Nature of Requirement
LETTER OF INTEREST TANK REPLACEMENT PROJECT
1.1. The Government of Canada (GOC) has a requirement for the upgrade and conversion of
up to 100 Leopard 2 tanks in Canada.
2. PROJECT DESCRIPTION
2.1. The Tank Replacement Project will provide Canada with a long-term, sustain- able replacement of its
current main battle tank fleet [ie: Leopard C2s], including some variants such as recovery
vehicles [ie: Taurus ARV].
The project consists of 2 phases as follow:
2.2. Phase 1 of the Project, which is currently in progress [Leopard 2 A6M CANs being deployed in
Afghanistan], includes the loan, support and sustainment of 20 mission-ready Leopard 2 A6M Main Battle
Tanks (MBT) and 2 [ Bergingstank 3 Büffel] armoured recovery vehicles (ARV) to meet urgent
operational requirements in Afghanistan in 2007. It also includes the procurement of 100 Main Battle Tanks
[from the Netherlands] and the restitution of the loaned German tanks.
2.3. An agreement was signed between the Government of Canada and The Neth- erlands Government on 14
December 2007 for the purchase of 80 Leopard 2 A4 and 20 Leopard 2 A6
main battle tanks which will be the basis for all future work.
2.4. The restitution may be accomplished through a restitution-in-kind approach by which
the Canadian government will use the 20 Leopard 2 A6 tanks purchased from the Netherlands. These tanks would
be brought to the same configuration as the tanks loaned from Germany. As a result, the loaned
[German] Leopard 2 A6M tanks currently in Afghanistan would be retained by Canada for Phase 2.
2.5. Phase 2 includes the upgrade and conversion of the [ex-Dutch] tanks, repair, and/or overhaul
of major components to be completed in Canada. Canada is con- sidering selecting one contractor as a
system integrator for the entire Phase 2 work. Canada may also consider one contractor for the work associated with
the tanks and a second contractor for the work associated with the [other] variants.
3.1. The intensity and complexity of recent military operations in countries
like Lebanon, Iraq and Afghanistan have shown that main battle tanks provide military forces with
protection, mobility and firepower that cannot be matched by more lightly
armoured wheeled vehicles.
3.2. The capabilities provided by Leopard 2 tanks increase the flexibility
of the Canadian Forces to employ ground forces in medium to high threat environments until 2035.
4. PURPOSE OF LETTER OF INTEREST
4.1. The purpose of this Letter of Interest (LOI) is to communicate the Canadian
Forces' requirements and solicit information and feedback from the
industry regarding possible upgrade and conversion to the MBT and/or recovery variants. The information
may be used to support the Crown's decision-making process such as finalizing its
requirement and determining its procurement strategy.
4.2. It is anticipated that subsequent to this LOI, the government will issue a request for Price and
Availability (P&A) information.
4.3. This is not a bid solicitation and no contract will result directly from this LOI or
subsequent Price and Availability (P&A) request.
5. PROJECT SCOPE
5.1. The interim requirement is contained within Annex A. The Statement of Work (SOW) will be developed
in due course based on an internal analysis of available information from various sources, including
information received from industry. In general, the project scope may consist of the following:
5.1.1. Upgrades of up to 92 Leopard 2 tanks to a Canadian Leopard 2
5.1.2. Conversion of up to 8 Leopard 2 A4 tanks to Canadian Leopard 2 Bpz ARV 3 recovery vehicle [ ie:
Büffels, Bergepanzer 3 being German for Bergingstank 3 ];
5.1.3. Initial Repair and Overhaul (R&O) of up to 100 tanks or their major
com- ponents consisting of Leopard 2 A6M (up to 20) and Leopard 2
A4 (up to 80). However, the Department of National Defence may opt to conduct the Repair and Overhaul
utilizing internal resources [ie: the Workshop Depot 202, Montreal]; and
5.1.4. Logistic support associated with the introduction of this new capability into the Canadian Forces.
Potential work may also include requirements for munitions & test, ancillary and training
equipments. The requirement for In Service Support (ISS) is not yet determined.
5.1.5. Following the upgrade and conversion, Canada's Main Battle Tank require- ment may be as
Quantity [ / ] Vehicle
[ / ] Requirement
20 [ / ] Tanks (2 A6M CAN)
[ / ]... Operational tanks
2 [ / ] Armoured Recovery Vehicle... [ / ]
20 [ / ] Tanks (configuration TBD) [ / ]
2 [ / ] Armoured Recovery Vehicle [ / ]
20 [ / ] Tanks at Training Level (2 A4+) [ / ]
2 [ / ] Armoured Recovery Vehicle [ / ]
20 [ / ] Tanks at Training Level (2 A4+) [ / ]
2 [ / ] Armoured Recovery Vehicle [ / ]
12 [ / ] Logistic Stock Vehicles
[ / ] TBD
5.1.6. The upgrade and conversion will be associated with, but not limited to the following
issues, as detailed in Annex A:
22.214.171.124. Primary Focus/Core Requirements:
i. Canadian Communications;
ii. Recovery Vehicle;
iii. Survivability/Protection Technologies;
iv. Electric Turret Drive;
v. Climate control including crew cooling; Integrated Logistic Support (ILS); and
vi. Repair and Overhaul.
126.96.36.199. Secondary Focus / Longer Term Requirements:
i. Component Obsolescence;
iii. Fire Control System;
iv. Turret Ergonomics and Configuration;
vi. Tank Mounted Implements (mine rollers, mine ploughs and dozer blade); and
6. PROCUREMENT MILESTONES
6.1. In providing responses the following schedule should be utilized as a baseline
LOI closing 9 April 2008
Price and Availability release June 2008
Price and Availability closing September 2008
Draft Request for Proposal April 2009
Request for Proposal release June 2009
Request for Proposal closing September 2009
Contract Award (CA) November 2009
Initial delivery of 20 tanks and 2 recovery vehicles 2011
Project Closeout TBD
7.1. Respondents are requested to indicate their ability, and that
of any sub- contractors, to accommodate personnel and facility security
requirements, to- gether with controlled goods restrictions (e.g. International
Traffic in Arms Reg- ulations (ITAR)), export licenses and 3rd party release requirements. Respondents are
to clearly identify any implications that may affect delivery of the proposed project
in accordance with the Industrial Security Program of Public Works and Government
Services Canada (PWGSC) requirements.
8. INDUSTRIAL AND REGIONAL BENEFITS (IRB)
8.1. The work is to be performed in Canada to the maximum extent possible,
in such a manner as to not put at risk the operational requirement. In all aspects, the maximization of
Direct work in Canada should make business sense.
8.2. The eventual contractor will be required to provide high-quality
Industrial and Regional Benefits (IRB) equivalent to 100% of the contracted value. All IRB
requirements will be negotiated and accepted by Industry Canada ( IC ) and the
regional development agencies prior to Contract Award.
9. REQUESTED INFORMATION
9.1. Based on the requirements detailed in this document, the LOI seeks potential suppliers to provide
the following information:
9.1.1. Capability of the respondents to have access to the Intellectual
Property (IP) Rights of the Leopard 2 A6M, Leopard 2 A4 and recovery vehicle and
other upgrades. Respondents are requested to demonstrate their ability to access and use
the Intellectual Property of the vehicle systems, sub-systems and any com-
9.1.2. The respondent's interest and capability for the different aspects of the work addressed at Annex
A. Respondents are invited to provide their comments and concerns on the technical aspect,
feasibility and reasonability of the requirement. Respondents should feel free
to provide alternative recommendations where applicable. Respondents should explain
their rationale for a change or addition to the requirement.
9.1.3. In responding to this LOI, respondents should clearly identify all assumpt- ions with clear
explanations for why those assumptions were made.
9.1.4. Industrial capacity and infrastructure requirement for this work and if such capacity and
infrastructure are in place in Canada.
9.1.5. A statement of the delivery capability. Indicate whether or not the initial...
delivery of 20 tanks and 2 recovery vehicles in 2011 can be achieved. If not, then provide
the best possible delivery schedule. The respondents should highlight any critical
areas that will impact the schedule either positively or negatively.
9.1.6. Information on any controlled goods restrictions (e.g. International Traffic in
Arms Regulations ( ITAR ), Controlled Goods Regulations), export licenses,
security and 3rd party release implications that may affect delivery of the solution, and constraints and assumptions
associated with the proposed upgrade and con- version.
9.1.7. Company point of contact for future communications.
10. NOTE TO POTENTIAL RESPONDENTS
10.1. This is not a bid solicitation and a contract will not result from it.
10.2. The Statement of Operational Requirement (SOR) is currently being develop- ed and is subject to change
based on the evolution of the requirement, which may be as a result of information provided by industry.
10.3. Potential respondents are advised that any information submitted to Canada in response to this LOI
may be used by Canada in the development of a competi- tive Request For Proposal (RFP).
10.4. The issuance of this LOI does not create an obligation for Canada to issue a Price and Availability
(P&A) and Request For Proposal (RFP), and does not bind Canada legally or otherwise, to enter into any
agreement or to accept or reject any suggestions.
10.5. Canada assumes no responsibility or obligation with respect to the cost of preparing
a response to this LOI.
10.6. Participation in this LOI is not a condition or prerequisite for participation in any subsequent
Price and Availability (P&A) or Request For Proposal (RFP). As a result of this LOI there will be no short
listing of firms for the purposes of under- taking future work.
10.7. Respondents to this LOI should clearly identify all submitted information as to whether or not it must
be considered as confidential and/or proprietary. Inform- ation provided in response to this LOI will be
divulged only to ... officials author- ized to participate in this pre-procurement activity. However, respondents
must be aware that aspects of their response may be used as a basis for
modifying the draft documents, as any future procurement for this requirement is prepared.
10.8. PWGSC reserves the right to meet with industry concerning the feedback,
suggestions or alternative approaches related to the project scope.
11.1. All enquiries, clarification requests and other communications related to this LOI shall be directed
exclusively to the point of contact named below.
11.2. Interested suppliers that intend to respond to this LOI are requested to ad- vise
PWGSC by email so that questions and answers, clarification or changes may be promulgated if required.
12. CLOSING DATE
12.1. Responses to this LOI are to be submitted to the point of contact identified below, on or
before the close of business on 9 April 2008. You are requested to submit
fourteen (14) hard and electronic copies of your response to the point of contact.
13. CONTRACTING AUTHORITY
13.1 The single point of contact for this LOI is:
Public Works and Government Services Canada
Land, Aerospace and Marine Systems & Major Projects Sector
Place du Portage, Phase III, Floor 6C1
11 Laurier Street
Tel.: (819) 956-6181
Fax.: (819) 956-0648
14. ANNEX A
Annex A is available upon request. Please communicate with the point of contact.
Delivery Date: 15/04/2008
The Crown retains the right to negotiate with suppliers on any procurement.
Documents may be submitted in either official language of Canada.
11 Laurier St./11, rue Laurier
Place du Portage Phase III 6C1
(819) 956-6181 ( )
Name Céline Lajoie
Address 11 Laurier St./11, rue Laurier Place du Portage
Phase III 6C1
State / Province Québec
Postal Code K1A 0S5
Phone (819) 956-6181 ( )
Fax (819) 956-0648