PARIS — Despite a tightening defense budget, the Canadian government has decided to move forward with one segment of its ground combat vehicle modernization program, purchasing 500 armored personnel carriers from Textron in a $700 million (CAD) deal that will fulfill the requirement for the country’s Tactical Armoured Patrol Vehicle (TAPV) program. The contract also includes a five-year, $100 million support contract, as well as an option to buy 100 more vehicles. The contract has a total value of $1.25 billion, according to the Canadian government.

Based on the company’s wheeled M1117 Armored Security Vehicle—3,600 of which have been purchased by the US Army, with additional purchases coming from Iraq, Afghanistan, Bulgaria, and Colombia—the TAPV is envisioned as the replacement for the Canadian Army’s existing fleet of RG-31 and Coyote MRAPs.

The first vehicle is scheduled to be delivered to the Canadian Army in July 2014, with deliveries wrapping up in March 2016.

Textron beat out BAE’s RG35 MRAP, as well as Force Protection (General Dynamics), which offered a variant of its Cougar MRAP, and Oshkosh, which submitted a variant of its highly successful M-ATV. Nexter had dropped out of the running in July 2011. The Canadian Textron TAPV team includes Kongsberg Protech Systems, which is supplying the Dual Remote Weapon Station (DRWS), Rheinmetall Canada.

In several contracts awarded earlier this year, the company announced that it was supplying over 400 M1117 variants to the Afghan National Army for a new quick reaction force. The first 56 Mobile Strike Force Vehicles were handed off the Afghan Army’s Kabul-based Capitol Division to start training in April.