Survivability upgrades will include the introduction of double-V-hull technology as well as add-on armor protection and energy-attenuating seats to give troops greater protection against mine blasts, improvised explosive devices and other threats.
Significant work on the award will be performed at General Dynamics' facilities in London, Ontario, and Edmonton, Alberta.
"Canadian soldiers need the best tools for the job and deserve the best protection we can give them," said Danny Deep, vice president of General Dynamics Land Systems-Canada. "This contract will enhance the LAV III fleet's survivability, operational capability and long-term performance through the addition of cutting-edge technologies.
"It will also provide much-needed job stability throughout Canada's high-value defense sector."
The LAV III's automotive performance, handling characteristics and payload capacity will be optimized by the addition of mobility system upgrades such as a more powerful engine, more robust driveline and suspension, and a height management system, General Dynamics said.
The 25mm turret's crew ergonomics will be improved by incorporating larger hatches, and its capabilities will be enhanced by the addition of the latest technologies, including improved fire control, thermal, day and low-light sights and data displays.