August 26, 2005
Pacific Safety Products Inc. Receives $2.6 Million Increase in Canadian Military Fragmentation Protective Vest Contract Value
KELOWNA, BRITISH COLUMBIA - Pacific Safety Products Inc. announces it has received an amendment increasing the value of the contract with the Canadian Department of National Defence for Fragmentation Protective Vests by $2.6 million.
The increase in the contract value was due to a request by DND to make certain design modifications to the product in order to enhance its overall performance. A change in the size matrix, increasing the amount of larger vests required, also added to the total value of the contract.
"While this request for changes by the Crown has delayed our ability to get this contract into production," comments Brad Field, CEO, "more importantly it means that our Forces will get an improved product and PSP has received a significant bump in the overall value of the contract."
Production of the contract commenced in February of this year and is expected to be completed in either the middle of fiscal 2007 or the middle of fiscal 2008, depending on whether the Government exercises its option quantities for the contract. The total value of the contract now stands at between $23 million and $32 million and brings PSP's total order book with options to just over $60 million.
"As in all major contracts of this sort, it is a logistical challenge to work out the initial bugs and get them into full production," said Field. "Everyone involved in the contract including the Government's contract managers, PSP staff and suppliers have worked diligently to ensure that our Canadian Forces get the best quality products possible for keeping them safe while in harms way."
PSP was also awarded a $24 million contract, with the potential of increasing to $28 million, in August of 2004 for Chemical Warfare Coveralls. This contract is currently going through the final pre-production processes such as first-article qualification and raw material procurement and is scheduled to go into production in early summer this year.
The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely™. PSP is an established industry leader in the production, distribution and sale of high-performance and high-quality safety products. These products primarily include body armor to protect against ballistic, stab and fragmentation threats. PSP is the largest armor manufacturer in Canada and has significant international customers. The Company also produces tactical clothing and emergency medical kits. These products are marketed under the labels Pacific Emergency Products®, PROTECTED by PSP™, EXPLOSAFE®, and O2B.O.S.S.™. The Company's primary customers include military agencies, law enforcement agencies, private security companies, fire departments and emergency medical service organizations.