Calian Re-Wins Two Multi-Year Contracts for Long-Term DND Customers With A Combined Potential Ceiling Value of $29 Million
Ottawa, ON Sept. 6, 2016 — Calian Group Ltd. (TSX:CGY) is pleased to report that it has re-won two long-term DND contracts for a combined ceiling value of $29 million with the Military Personnel Generation (MilPersGen) and the Royal Canadian Electrical and Mechanical Engineers (RCEME) Schools.
The initial contract for the Military Personnel Generation contract is valued at $7 million over a period of 12 months with two one-year options, which if exercised, could increase the total contract value to $21 million. Since 2010, Calian has been providing training services to the MilPersGen (formerly Canadian Defence Academy), at schools such as the Canadian Army's Leadership and Recruit School, the Fire Fighter and CBRN Academy, the Chaplain School and the Logistics Training Centre. This new contract expands the scope of work to include additional schools such as the Canadian Forces Health Services Training Centre, School of Military Intelligence, School of Meteorology, Military Policy Academy, Language School and the Canadian Forces Naval Operations School.
The initial contract for RCEME is valued at $5 million over a period of 2.5 years with two one-year options, which if exercised, could increase the total contract value to over $8 million. The scope of the work has been expanded from the vehicle technician training that Calian has performed for the RCEME School since 2008 and now includes Weapons, Material and Electronic-Optronic technician training. The inclusion of these additional services means that the RCEME School now has even more flexibility to meet their increased training demands forecasted over the next three years.
"We are extremely pleased to continue our long-term relationship with the MilPersGen and RCEME organizations. Our ability to re-win with the expanded scope of these contracts is a testament to the quality of the training professionals on the Calian team as well as the skills and dedication of our management staff," stated Jerry Johnston, Vice President, Training & Engineering Services.
"Customer retention is the first pillar of Calian's growth strategy. The re-win of these two contracts is yet another example of our long-standing relationship with the Canadian Army and we appreciate the continued trust in our ability to support their training needs," stated Kevin Ford, President and CEO.
About Calian Training
Calian provides a full-suite of specialized training services to both public and private sector organizations, including many elements of the Canadian Armed Forces. Services range from needs analysis through to courseware design, development and delivery, and include the development and execution of collective training exercises which allow customers in both emergency management and military domains to validate their plans and team performance.
About Calian
Calian employs over 2,500 people with offices and projects that span Canada, U.S. and international markets. The company's capabilities are diverse with services delivered through two divisions. The Business and Technology Services (BTS) Division is headquartered in Ottawa and includes the provision of business and technology services to industry, public and government in the health, training, engineering and IT services domains. Calian's Systems Engineering Division (SED) located in Saskatoon plans, designs and implements complex communication systems for many of the world's space agencies and leading satellite manufacturers and operators. SED also provides contract manufacturing services for both private sector and military customers in North America.
For further information, please visit our website at www.calian.com, or contact us at [email protected] Kevin Ford President and Chief Executive Officer 613-599-8600 Jacqueline Gauthier Chief Financial Officer 613-599-8600
Disclaimer
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as "intend", "anticipate", "believe", "estimate", "expect" or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company's most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.