Ottawa, ON, September 29, 2017 — Calian Group Ltd. (TSX: CGY) today announced that it has successfully re-won the Health Care Providers Requirements (HCPR) Contract for the provision of health support services to the Canadian Armed Forces (CAF). Two additional contracts were also awarded for the provision of health support services to the Royal Canadian Mounted Police (RCMP) and Veterans Affairs Canada (VAC). Watch the contract announcement video
The HCPR contract with CAF is a renewal of the Health Services Support Contract (HSSC) that Calian has held since 2004. The HCPR contract has an initial term of four (4) years with an initial value of $275 million and an option to extend the contract for up to eight (8) additional years, with an aggregate total contract value for the 12 years of up to $875 million.
Additional contracts with similar terms were simultaneously awarded to Calian for the provision of health support services to the RCMP and VAC with initial four (4) year term values of $19 million and $17 million, respectively, and aggregate total contract values for the full 12-year period of up to $60 million and $55 million, respectively.
The current contract with CAF (HSSC) expires March 31, 2018 and generates approximately $65-70 million of revenues per year. These new contracts are expected to begin April 1, 2018 and while the cumulative level of effort is expected to increase with these new contracts, the exact amount of increased scope has yet to be determined.
“This is a significant win for Calian Health that reaffirms our commitment to quality in the health support services we have delivered to CAF for the past 12 years. We are thrilled to have the opportunity to continue to provide our 'superior'-rated health services in support of the serving men and women of the Canadian Armed Forces as well as their comrades in the RCMP and at VAC," said Scott Murray, VP of Health Services at Calian.
In order to support the expanded scope of these contracts, Calian has partnered with Bayshore. As two of the leading health services providers in Canada, Calian and Bayshore are uniquely positioned to deliver the highest quality of care to the full complement of communities represented in these contracts.
"Bayshore strives to make a difference in people’s lives and there is none more deserving of excellent health care services than those who offer their lives to protect and serve us. I am honoured that Bayshore has been chosen to be part of the team to provide health care personnel for the Canadian Armed Forces, the Royal Canadian Mounted Police, and Veterans Affairs Canada,” states Stuart Cottrelle, President of Bayshore Healthcare Ltd., a national health care organization with over 12,000 staff across all provinces. “We look forward to the opportunity to help each department achieve their health care goals. We believe that our expertise combined with Calian’s experience over the past 12 years offers an excellent opportunity for us to further enhance the great work done by Calian in providing health care personnel and in developing auxiliary programs to support members, veterans, and their families.”
"Our commitment to delivery excellence and customer satisfaction has enabled Calian to not only retain current customers but attract several new clients in the health domain, directly supporting our corporate strategies of customer retention and diversification as well as our strategic goal of becoming the largest health services organization in Canada. This contract win provides our Health team with a solid foundation from which they will continue to grow and diversify our health services on a national scale," stated Kevin Ford, President and CEO.
Calian will hold a telephone conference call at 10:00 a.m. Eastern Time on October 2, 2017 to discuss the award of these Health Care Providers Requirements Contracts. Interested participants from the financial & media community should call 1-800-263-0877 or (613) 216-0029 at approximately 9:55 a.m. The conference ID is 6182200. Following the presentation, interested parties will be invited to participate in a question and answer session. The conference call will be available for a period of 14 days for playback and is accessible by dialing 1-888-203-1112, passcode 6182200.