Kraken Robotics Awarded Over $50 Million Contract for Canadian Navy Minehunting Systems

Kraken Robotics Inc. announced on December 7, 2022, that it has been awarded a significant contract with the Government of Canada to provide Remote Minehunting and Disposal Systems (RMDS) for the Department of National Defense. The contract includes an estimated 24-month acquisition program followed by an initial five-year Integrated Logistics Support (ILS) program, with options for further equipment, spares, training, and technical support.

The RMDS will be delivered to His Majesty’s Royal Canadian Navy on both the East and West Coasts. The system comprises two classes of Autonomous Underwater Vehicles (AUVs) equipped with Kraken’s AquaPix synthetic aperture sonar, alongside mine disposal systems (MDS), transportable command centers (TCC), and computer-based trainers (CBT).

Kraken is collaborating with key partners on this project, including Kongsberg Maritime Canada Ltd., HII Mission Technologies (supplying REMUS AUVs), and thyssenkrupp Marine Systems Canada Ltd. (providing SEAFOX mine disposal vehicles). These partners highlight the system's capability to enhance the Navy's ability to safely detect and neutralize underwater threats.

The full value of the contract, if all acquisition and ILS options are exercised, is expected to exceed $50 million, with approximately $40 million allocated for acquisition and $10 million for ILS. Kraken anticipates that the program's margins will align with its historical corporate averages. The acquisition program is scheduled to formally commence in January 2023, with progress payments to be made over its 24-month term.