The Canadian government has silently axed 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, according to information obtained by CBC News. Public Services and Procurement Canada (PSPC) issued a notice late on Friday indicating the government’s intention to shift towards an updated procurement approach.
The notice obtained by CBC News reveals the cancellation of an 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 aiming to further narrow down the field. A statement released by the Prime Minister’s Office at the conclusion of the NATO summit in Turkey highlighted new investments in defense, including the updated procurement strategy for the LUV program. The statement mentions the immediate limitation of 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 segment of the Canadian Armed Forces’ fleet.
While it remains uncertain which Canadian companies will be chosen, the decision to favor domestic LUV suppliers was made public in the statement from the Prime Minister’s Office following the NATO summit in Ankara. This move to exclude foreign bidders occurred just before the NATO summit and in the wake of the announcement to purchase 12 submarines for the navy from German shipbuilder ThyssenKrupp Marine Systems (TKMS).
According to the PSPC notice, refocusing the LUV program is expected to strengthen Canada’s defense industrial base. Defence Minister David McGuinty refrained from commenting at the margins of the NATO summit, indicating a need to return with an update on the program’s status. The program has been split into two phases, with the first phase involving the replacement of the army’s aging fleet of Mercedes G-Wagons and Chevrolet Silverados.
Additionally, Canada is set to allocate $800 million towards a contract with Norwegian company Kongsberg Defence and Aerospace for the procurement of joint strike missiles (JSM). These advanced, long-range anti-ship and land-attack missiles are designed to be carried within the weapons bay of an F-35 stealth fighter, offering low-observable characteristics to evade modern radar and air defense systems.
The statement from Carney’s office also highlighted an agreement in principle regarding the Enhanced Satellite Communications Project – Polar (ESCP-P) within the Defence Department. This agreement involves utilizing the Telesat Lightspeed system to provide sovereign, reliable, continuous military satellite communications in the Arctic, with the program estimated to be valued at up to $5 billion.