The Canadian government has quietly scrapped the second phase of a longstanding competition to supply the army with light utility vehicles. Instead, they plan to directly invite a limited number of Canadian suppliers to bid on the project, according to information obtained by CBC News.
Public Services and Procurement Canada (PSPC) issued a notice on Friday announcing the government’s intention to shift to a revised procurement approach. The notice, obtained by CBC News, cancels the previous call for interested companies to qualify for bidding on the Light Utility Vehicle (LUV) program, which is valued at up to $4.9 billion, as per the Department of National Defence website.
Originally, six primary competitors were in the running, 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 plans to further narrow down the competition.
Following the NATO summit in Turkey, the Prime Minister’s Office highlighted new defense investments, including a revised procurement strategy for the LUV program. The statement indicated the government’s intention to limit the tender to two Canadian defense industry suppliers to deliver a specified number of vehicles and light utility trailers for the militarized segment of the Canadian Armed Forces’ fleet.
The specific Canadian companies to be chosen for the project are yet to be disclosed. The decision to exclude foreign bidders was made just before the NATO summit in Ankara and following the announcement to purchase submarines from German shipbuilder ThyssenKrupp Marine Systems (TKMS).
The PSPC notice mentioned that refocusing the LUV program is aimed at bolstering Canada’s defense industrial base. Additionally, Prime Minister Mark Carney’s office revealed a separate $800 million contract with Norwegian company Kongsberg Defence and Aerospace for joint strike missiles, along with an agreement involving the Enhanced Satellite Communications Project – Polar (ESCP-P) utilizing the Telesat Lightspeed system for military satellite communications in the Arctic, which could be valued at up to $5 billion. Defense Minister David McGuinty refrained from commenting on the program’s status during the NATO summit, promising to update reporters later.
