The Canadian government has discreetly terminated 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 announcing the federal government’s decision to shift to a revised 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 could involve expenditures of up to $4.9 billion as stated on the Department of National Defence website.
Six main competitors were previously identified, with two being U.S. companies – 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 appears to be further narrowing down the field of competitors. Following the conclusion of the NATO summit in Turkey, the Prime Minister’s Office highlighted new defense investments, including a reference to the updated procurement strategy for the LUV program.
According to the statement released, the plan is to immediately 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, although the selected Canadian companies remain undisclosed.
The exclusion of foreign bidders was executed just before the NATO summit in Ankara, coinciding with the announcement to procure 12 submarines for the navy from German shipbuilder ThyssenKrupp Marine Systems (TKMS) worth billions of dollars.
The PSPC notice emphasized that refocusing the LUV program would also bolster Canada’s defense industrial base.
At the NATO summit, Defence Minister David McGuinty refrained from commenting on the program’s status and mentioned its division into two phases, the first of which involves replacing the army’s aging Mercedes G-Wagons and Chevrolet Silverados fleet.
Additionally, it was announced that Canada would enter an $800 million contract with Norwegian company Kongsberg Defence and Aerospace for joint strike missiles (JSM) to equip F-35 stealth fighters. The statement also unveiled an agreement involving the Defence Department’s Enhanced Satellite Communications Project – Polar (ESCP-P) to utilize the Telesat Lightspeed system for military satellite communications in the Arctic, valued at up to $5 billion according to the department’s website.