Questions and Answers
Q: Exactly what is being offered for sale by Canada through the marketing contract with Smith Consulting Group?
Q: Can someone buy this equipment directly from Canada?
Q: You mentioned selling directly to governments. What if I am a surplus dealer and I want to buy this equipment to resale to a government, can I do so?
Q: If I am a surplus dealer or anyone with experience in selling to a government is there a way that I can still participate in the process?
Q: What prices have you set on each classification of vehicle?
Q: What if the OTP is rejected?
Q: What if the OTP is accepted?
Q: What is the year or range of manufacture for the M113s, M548s and the M577s?
Q: What type of armor exists on the armored vehicles?
Q: What is the current mechanical condition of the Canadian MSAs currently being offered for sale in as-is where-is condition?
Q: Are spare parts available for the M113 from the Canadian Government?
Q: Can you offer additional spare and support parts?
Q: You limit sales of Canada’s MSAs to AS-IS and WHERE-IS only. What if the buying country requires the vehicles to be ready to operate?
Q: Who arranges for and handles the logistics of shipping and handling to effect transport?
Q: Who handles the export documentation, import documentation, and the complicated things such as customs, transporting to the ship, loading this ship. In other words, how can the buying country be assured these complicated matters will be handled properly?
Q: Exactly what is being offered for sale by Canada through the marketing contract with Smith Consulting Group?
A: The quantities will be constantly changing as units are sold and others are retired and declared as surplus by Canada. Find current quantities on our inventory page.
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Q: Can someone buy this equipment directly from Canada?
A: No. Canada restricts the sale of these MSAs to Government to Government (G2G) sales only.
We have been authorized and instructed by the Government of Canada to market and sell surplus military armaments, ammunition and military equipment. "Canada has contracted with Smith Consulting Group, LLC (SCG) to remarket these military surplus assets (MSAs) directly to governments. SCG represents Canada much like a real estate agent representing the home owner in the sale of property. SCG has the right to sell these vehicles on behalf of Canada. "All Department of National Defence Surplus Assets are sold on an “AS IS - WHERE IS” basis, and no warranty is offered, either expressed or implied”.
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Q: You mentioned selling directly to governments. What if I am a surplus dealer and I want to buy this equipment to resale to a government, can I do so?
A: No. See our comments under the immediately preceding Q&A.
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Q: If I am a surplus dealer or anyone with experience in selling to a government is there a way that I can still participate in the process?
A: Yes. You may contract directly with Smith Consulting Group as a sales agent. You will be required to submit a marketing plan (view sample marketing plan) that details your plan to market and sell to an accepted country. Once this plan is approved by SCG, you will be given marketing rights for that country.
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Q: What prices have you set on each classification of vehicle?
A: At present we have not set a minimum reserve value. The way it works is that a country must submit a legitimate Offer to Purchase (OTP) to Smith Consulting Group. SCG will submit the OTP to Canada along with their recommendations. Final decision to accept or reject the OTP is up to Canada.
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Q: What if the OTP is rejected?
A: SCG will notify the customer and the customer can decide to make a counter offer or not. SCG will attempt to bring the buyer and seller together on terms acceptable to both parties. If no deal can be finalized the deposit will be returned by Canada.
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Q: What if the OTP is accepted?
A: Upon receipt of notification from the CAD Project Authority that the offer(s) is acceptable, SCG will advise the successful bidder(s) of the acceptance of their offer(s) per article 3.3.24 in the statement of work, and seek 10% security deposit. Such deposits will be forwarded directly to the DND Project Authority. The customer will have 30 days to make secure payment arrangements. SCG must charge and account for the Gross Sale Proceeds, and applicable GST/HST and PST on all sales of Surplus Assets. Payments by the purchaser of the amount owing for the Surplus Assets, shall be made by wire transfer deposited directly into a specified Receiver General for Canada account or certified cheque, which shall be mailed to the DND Project Authority.
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Q: What is the year or range of manufacture for the M113s, M548s and the M577s?
A: Vehicles were manufactured between 1964 and 1965, but all vehicles (except for the M548 which is A1 upgrade status) were upgraded to M113A2 standard between 1982 to 1984.
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Q: What type of armor exists on the armored vehicles?
A:The armor is aluminum. Those vehicles indicating armor have spall liners installed and the bolt inserts to attach add on armor. They do not, and will not, have the actual add on armor.
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Q: What is the current mechanical condition of the Canadian MSAs currently being offered for sale in as-is where-is condition?
A: The vehicles were "runners" i.e. they were driven off the low bed trailer and parked in storage. So most if not all of these vehicles would require some level of inspection and refurbishing prior to be put into service. The general condition is good as it relates to mechanically and visually. Inspection is required to determine the actual condition.
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Q: Are spare parts available for the M113 from the Canadian Government?
A: Some spare parts are being made available for sale. At this time there will be approximately 130 engines (without containers), approximately 150 transmissions, approximately 300 transfer cases and approximately 300 differentials.
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Q: Can you offer additional spare and support parts?
A: Our business alliance partner, SECO Augusta http://www.secoaugusta.com/ has 4 acres of warehouse space filled with one of the largest supplies of spare parts for military surplus vehicles in the world.
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Q: You limit sales of Canada’s MSAs to AS-IS and WHERE-IS only. What if the buying country requires the vehicles to be ready to operate?
A: The buying country would close the AS-IS deal with the Canadian Government, but in the OTP—Offer to Purchase—provisions will be made to do one of the following under a totally separate contract with our business alliance partner, SECO Augusta http://www.secoaugusta.com/
- Contract with SECO for refurbishment updates to the customer's specifications at the SECO Augusta's rebuilding facility in Augusta, Georgia, USA.
- Contract with SECO for in-country technicians to meet the MSAs upon arrival in the buying country. The technicians would train local personnel in the proper updating necessary, as well as train their maintenance staff for proper upkeep and maintenance programs according to specifications.
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Q: Who arranges for and handles the logistics of shipping and handling to effect transport?
A:Since the MSAs are sold WHERE-IS, the transportation arrangements and cost are the responsibility of the buying country. We recommend the buying country use our business alliance partner Smith Transport & Logistics, Inc., www.smithtandl.com to handle the shipping.
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Q: Who handles the export documentation, import documentation, and the complicated things such as customs, transporting to the ship, loading this ship. In other words, how can the buying country be assured these complicated matters will be handled properly?
A: Smith Consulting Group, LLC and Smith Transport & Logistics, Inc. are experienced with this process and could work with Canada, Customs, and the US State Department to arrange for the shipment under separate contract with the buying country.
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