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, as per information obtained by CBC News.
Public Services and Procurement Canada (PSPC) issued a notice on Friday announcing the government’s intention to transition to a revised procurement approach. The notice, obtained by CBC News, cancels the previous invitation for interested companies to qualify for bidding on the Light Utility Vehicle (LUV) program, which could have a budget of up to $4.9 billion, according to 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 now aims to further narrow down the competition.
Following the NATO summit in Turkey, the Prime Minister’s Office announced new investments in defense, highlighting the updated procurement strategy for the LUV program. The statement mentioned the decision to limit the tender to two Canadian defense industry suppliers for the supply of vehicles and light utility trailers for the Canadian Armed Forces’ fleet.
The specific Canadian companies to be selected have not been disclosed. This move to exclude foreign bidders comes amidst the recent announcement to purchase submarines for the navy from German shipbuilder ThyssenKrupp Marine Systems (TKMS).
The PSPC notice emphasized that refocusing the LUV program will help strengthen Canada’s defense industrial base. Additionally, Canada is set to invest $800 million in a contract with the Norwegian company Kongsberg Defence and Aerospace for joint strike missiles (JSM) and enhance satellite communications projects worth up to $5 billion geared towards military operations in the Arctic.
