The Canadian government has quietly terminated the second phase of a long-standing competition to supply the army with light utility vehicles and plans to directly invite a limited number of Canadian suppliers to bid, according to information obtained by CBC News. Public Services and Procurement Canada (PSPC) issued a notice indicating the government’s intention to shift to a revised procurement approach.
The notice, which CBC News has obtained, cancels the invitation for interested companies to qualify for bidding on the Light Utility Vehicle (LUV) program, which has an estimated value of up to $4.9 billion, as stated on the Department of National Defence website. Initially, 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 further narrowing down the pool of competitors. Following the NATO summit in Turkey, the Prime Minister’s Office announced new defense investments, referencing the updated procurement strategy for the LUV program. The statement highlighted the intention to limit the tender to two Canadian defense industry suppliers to supply 1,600 to 2,100 vehicles and 400 to 500 light utility trailers for the militarized segment of the Canadian Armed Forces’ fleet.
The specific Canadian companies to be chosen are currently unknown. The decision to exclude foreign bidders was made just before the NATO summit in Ankara and amidst the announcement of a multibillion-dollar deal to purchase 12 submarines for the navy from German shipbuilder ThyssenKrupp Marine Systems (TKMS) earlier in the week. The PSPC notice mentioned that refocusing the LUV program would help reinforce Canada’s defense industrial base.
Defence Minister David McGuinty refrained from commenting on the program’s status during the NATO summit, stating that he would need to provide an answer to reporters later. The LUV program has been split into two phases, with the first phase involving the replacement of the army’s aging Mercedes G-Wagons and Chevrolet Silverados fleet.
Additionally, on Wednesday, Carney’s office announced an $800 million contract with Norwegian company Kongsberg Defence and Aerospace for the procurement of joint strike missiles (JSM), advanced long-range anti-ship and land-attack missiles. The statement also mentioned a preliminary agreement related to the Defence Department’s Enhanced Satellite Communications Project – Polar (ESCP-P) to utilize the Telesat Lightspeed system for continuous military satellite communications in the Arctic, estimated to be valued at up to $5 billion according to the department’s website.