The Canadian government has discreetly terminated the second phase of a longstanding competition for supplying light utility vehicles to the army. Instead, they plan to directly invite a limited number of Canadian suppliers to bid on the project, as per information obtained by CBC News.
Public Services and Procurement Canada (PSPC) issued a notice on Friday indicating a shift to an updated procurement approach. The notice cancels the previous 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.
Six main competitors were initially 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 now intends to further narrow down the field.
Following the NATO summit in Turkey, the Prime Minister’s Office announced new defense investments, highlighting the updated procurement strategy for the LUV program. The plan is 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 section of the Canadian Armed Forces’ fleet.
The specific Canadian companies to be selected have not been disclosed at this point. The decision to exclude foreign bidders was made just before the NATO summit in Ankara and following the 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 strengthen Canada’s defense industrial base. Additionally, the government revealed plans to invest $800 million in a contract with Norwegian company Kongsberg Defence and Aerospace for joint strike missiles (JSM) and an agreement in principle for the Enhanced Satellite Communications Project – Polar (ESCP-P) to utilize the Telesat Lightspeed system for military satellite communications in the Arctic, estimated to be worth up to $5 billion.
Defence Minister David McGuinty refrained from commenting on the program at the NATO summit, citing the need to provide more information later. The project is divided into two phases, with the first phase involving the replacement of the army’s aging fleet of Mercedes G-Wagons and Chevrolet Silverados.