The Carney administration has decided to halt the second phase of a longstanding competition to supply the army with light utility vehicles, opting instead to directly invite a limited number of Canadian suppliers to participate, as per information obtained by CBC News.
Public Services and Procurement Canada (PSPC) released a notice on Friday announcing the government’s plan to shift to a revised procurement method. The notice obtained by CBC News reveals the cancellation of the invitation for interested companies to qualify for the Light Utility Vehicle (LUV) program procurement, valued at potentially $4.9 billion according to the Department of National Defence website.
The notice indicated that six primary competitors were initially identified, with two from the U.S. – AM General and Oshkosh Defence, and the remaining four being Canadian companies: Armatec Survivability Group, GM Defense Canada, Roshel, and Terradyne Armoured Vehicles. The government now plans to further narrow down the field.
Following the NATO summit in Turkey, the Prime Minister’s Office highlighted new defense investments, including the updated procurement strategy for the LUV program. The statement mentioned the intention to limit the tender to two Canadian defense industry suppliers for the delivery of 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 chosen remain unspecified.
The decision to favor domestic LUV suppliers was made public in a statement from the Prime Minister’s Office at the conclusion of the NATO summit in Turkey, coinciding with the announcement to purchase 12 submarines for the navy from German shipbuilder ThyssenKrupp Marine Systems (TKMS).
The PSPC notice indicated that refocusing the LUV program is aimed at bolstering Canada’s defense industrial base. Additionally, the government announced an $800 million contract with Norwegian company Kongsberg Defence and Aerospace to procure joint strike missiles (JSM) and an agreement in principle for the Defence Department’s Enhanced Satellite Communications Project – Polar (ESCP-P) to use 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’s status during the NATO summit, mentioning a need to provide an answer later. The program has been divided into two phases, with the first phase involving the replacement of the army’s aging Mercedes G-Wagons and Chevrolet Silverados.