The Canadian government has quietly scrapped the second phase of a longstanding competition to supply the army with light utility vehicles and plans to directly invite a limited number of Canadian suppliers to bid, as per information obtained by CBC News. Public Services and Procurement Canada (PSPC) released a notice on Friday announcing a shift to an updated procurement approach, canceling the invitation for interested companies to qualify for bidding on the Light Utility Vehicle (LUV) program, which could amount to $4.9 billion, according to the Department of National Defence website. The notice revealed that six primary competitors were identified, including two U.S. companies – AM General and Oshkosh Defence, and four Canadian companies – Armatec Survivability Group, GM Defense Canada, Roshel, and Terradyne Armoured Vehicles.
The government appears to be narrowing down the field further. Following the NATO summit in Turkey, the Prime Minister’s Office highlighted new defense investments, mentioning the revamped procurement strategy for the LUV program. The statement indicated a move to restrict the tender to two Canadian defense industry suppliers to provide 1,600 to 2,100 vehicles and 400 to 500 light utility trailers for the militarized segment of the Canadian Armed Forces’ fleet. The selected Canadian companies have not been disclosed yet.
The decision to favor domestic LUV suppliers was announced at the end of the NATO summit in Turkey, coinciding with a substantial announcement to purchase 12 submarines for the navy from German shipbuilder ThyssenKrupp Marine Systems (TKMS). The PSPC notice emphasized that refocusing the LUV program would help bolster Canada’s defense industrial base.
Defense Minister David McGuinty refrained from commenting on the program’s status during the NATO summit, indicating a need to follow up with reporters. The program is divided into two phases, with the first involving the replacement of the army’s aging fleet of Mercedes G-Wagons and Chevrolet Silverados.
In a separate development, Canada is set to allocate $800 million for a contract with Norwegian company Kongsberg Defence and Aerospace to procure joint strike missiles (JSM), advanced anti-ship and land-attack missiles designed for use with F-35 stealth fighters. Moreover, an agreement in principle was mentioned regarding the Defense Department’s Enhanced Satellite Communications Project – Polar (ESCP-P) to utilize the Telesat Lightspeed system for continuous military satellite communications in the Arctic, a program estimated to be valued at up to $5 billion.