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.