On Monday, Thales Canada of Saint-Laurent announced that it has been awarded a $12.4 million subcontract from American defense contractor General Dynamics (NYSE:GD), which is hiring Thales to supply 400 sets of infrared camera sensors and display modules for the Light Armoured Vehicle III Upgrade Project.

LAV III is described as "one of four Family of Land Combat Vehicle projects announced by the Government of Canada," and one that aims to "improve the protection, mobility, and lethality of the Light Armoured Vehicle III fleet." By modernizing a portion of Canada's LAV III fleet, the country's Ministry of National Defence says it hopes to extend the operational usefulness of the vehicle through 2035.

Canada awarded General Dynamics Land Systems' Canadian subsidiary a $1.1 billion contract in October 2011, ordering 550 upgraded LAV IIIs, conditioning the contract award on General Dynamics' reinvesting 100% of the contract value "in business activities in the Canadian economy." By awarding the present subcontract to Thales -- itself a subsidiary of a French defense firm -- General Dynamics is fulfilling part of its promise.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.