Boeing, with its wholly owned subsidiary Insitu, has announced the first U.S. $25 million in contracts to Canadian companies as part of a government order for small unmanned aerial vehicle (SUAV) services.

The Canadian government in April awarded a $30 million contract to Insitu, manufacturer of the ScanEagle SUAV, for services in support of the Canadian Forces' intelligence, surveillance and reconnaissance (ISR) operations in Afghanistan.

Boeing agreed to match the contract value with dollar-for-dollar investments back into the Canadian economy through the Industrial and Regional Benefits (IRB) policy maintained by Industry Canada. If the Canadian government exercises additional contract options, the contract could provide a total of nearly $61 million in opportunities for Canadian industry and universities.

"The ScanEagle has proven itself as a long-endurance unmanned aircraft system, and Boeing continues to prove itself as a long-endurance partner to Canada," said Insitu SUAV Program Manager Greg Davis.

"The reinvestments we make as a part of the ScanEagle program will result in long-term business relationships for Canadian firms," said Gwen Kopsie, director of International Industrial Participation and Alliances for Boeing Integrated Defense Systems.

Boeing is on track to meet the Canadian government's IRB policy. To date, Boeing and Canadian businesses have signed several contracts tied to the ScanEagle program. Partners include:

+ ING Engineering Inc. (Ontario, Northern Ontario, Quebec and Alberta): Unmanned vehicle systems field services

+ MKS (Ontario): MKS Integrity software and consulting services for SUAV program life-cycle management

+ NovAtel (Alberta): ScanEagle Global Positioning System.

These supplier agreements complement Boeing's already significant involvement in Canada. Boeing is a major contributor to the Canadian economy, generating approximately $1 billion in business annually.

Canada is home to one of the company's largest international supplier bases, with industry and university partnerships in every region of the country that provide a diverse mix of high-value goods and services to Boeing and its customers.

Boeing also employs more than 1,600 highly skilled workers in Ontario, Quebec, British Columbia and Manitoba who support the company's major business units + Boeing Commercial Airplanes and Boeing Integrated Defense Systems.

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