Mobile Health Units: SNC-Lavalin sets the record straight

MONTREAL: March 5th 2021 – Following recent articles regarding a federal government contract, SNC-Lavalin Group Inc. (TSX: SNC) would like to set the record straight. Mobile Health Units (MHUs) have been ordered on a preventive basis to increase patient capacity for medical treatment and to support the evolving needs of provinces and territories in their fight against COVID-19. 


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Background facts

  • Like many Canadian companies, SNC-Lavalin has answered the governments’ call to help fight the COVID-19 pandemic.
  • Drawing on its experience deploying mobile medical and logistical support units, including to the Canadian Armed Forces in Bosnia, Kabul and Kandahar, and the recent pandemic-related projects at U.K.-based NHS Nightingale Hospital and the Miami Beach Convention Center, SNC-Lavalin sought to make this global expertise available to Canadians.
  • For this project as in many others, SNC-Lavalin and PAE, a U.S. company with world-renowned expertise, have joined forces to create safe environments featuring all the equipment needed to keep patients healthy.

Contract facts

  • Two service providers were selected, including the SNC-Lavalin/PAE joint venture, based on processes established by the Government of Canada. Note that the second supplier has recently been called upon to deploy two MHUs, each comprising about 100 beds.
  • The maximum potential value of the contract for the SNC-Lavalin/PAE joint venture is $150M.
  • The contract’s objectives include:
  • Organizing the delivery, construction, storage and maintenance of up to five 100-bed mobile respiratory care units and support services as part of Canada’s efforts to control the read of COVID-19.
  • Planning the design and delivering innovative and progressive solutions using best practices to adapt to large and small urban settings, as well as remote areas. 
  • Ensuring advanced medical and logistical integration within a single program management framework that can respond quickly to evolving needs to support the fight against the pandemic.
  • Proposing solutions to increase agility, flexibility and responsiveness in providing needs-based logistic services to support the MHUs’ relief mission.
  • Making the SNC-Lavalin/PAE joint venture’s expertise available in a fair, open and transparent manner, in accordance with the code of ethics of both the joint venture and SNC-Lavalin. 
  • Since the contract has been awarded, the SNC-Lavalin/PAE joint venture has received approximately $50 million, of which more than 68% has been used to purchase specialized equipment to be owned by the Government of Canada for its future needs.
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Ethical facts

  • Last January, SNC-Lavalin was awarded its second Ethisphere Compliance Leader Verification. This recognition reflects the company’s ongoing commitment to developing and implementing a world-class integrity and compliance program. As part of the assessment, SNC-Lavalin was compared to 21 publicly traded companies from similar sectors, as well as 132 companies representing the world’s most ethical companies in 2020, according to Ethisphere.
  • SNC-Lavalin publishes on its website all documents explaining the measures it implements to prevent, detect and respond integrity issues. The integrity and compliance program’s elements align with the principles of international organizations such as Transparency International, the Organisation for Economic Co-operation and Development, the United Nations Global Compact, the World Bank and the African Development Bank, as well as the guidelines of the U.S. Department of Justice’s Foreign Corrupt Practices Act.
  • For nearly 10 years, SNC-Lavalin has been constantly strengthening its practices and keeping abreast of the latest global trends to ensure that the incidents of the past do not happen again. The individuals concerned left the company several years ago and a renewed team makes up the Board of Directors and Executive Committee. 
  • Today, SNC-Lavalin Group’s integrity and compliance program is one of the most comprehensive in its industry.

Administrative agreement

The administrative agreement signed in December 2015 with Public Services and Procurement Canada under the new Integrity Regime allowed SNC-Lavalin to continue to be able to contract with or supply the Government of Canada. An independent monitor was named to ensure that the Company complied with the terms of the agreement, which it did. Since December 2020, SNC-Lavalin is no longer subject to an administrative agreement with Public Services and Procurement Canada. 

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Quote 

“Like many Canadian companies, we answered the call to fight COVID-19. We have the expertise and experience of these unpredictable and complicated situations. Our teams are ready for rapid deployment as soon as they’re needed. The information circulating about our company is sometimes inaccurate and confusing. On behalf of our thousands of employees in Canada and around the world, we reaffirm our commitment to do our part to support Canadians in these difficult times. With the road travelled and the changes put in place, we will no longer let the events of the past define what we are today and what we intend to achieve tomorrow”, said Dale Clarke, President, Infrastructure Services, SNC-Lavalin.

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About SNC-Lavalin

Founded in 1911, SNC-Lavalin is a fully integrated professional services and project management company with offices around the world. SNC-Lavalin connects people, technology and data to help shape and deliver world-leading concepts and projects, while offering comprehensive innovative solutions across the asset lifecycle. Our expertise is wide-ranging — consulting & advisory, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and sustaining capital – and delivered to clients in four strategic sectors: EDPM (engineering, design and project management), Infrastructure, Nuclear and Resources, supported by Capital. People. Drive. Results. News and information are available at www.snclavalin.com or follow us on Twitter @SNCLavalin

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