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, according to information obtained by CBC News.
Public Services and Procurement Canada (PSPC) recently issued a notice indicating a shift towards an updated procurement approach. The notice revealed the cancellation of the invitation for interested companies to qualify for bidding on the Light Utility Vehicle (LUV) program, estimated to be valued at up to $4.9 billion by the Department of National Defence website.
Among the six primary competitors identified, two are U.S. companies – AM General and Oshkosh Defence, while the remaining four are Canadian – Armatec Survivability Group, GM Defense Canada, Roshel, and Terradyne Armoured Vehicles. The government is now looking to further narrow down the pool of competitors.
During the NATO summit in Turkey, the Prime Minister’s Office highlighted new investments in defense, including a revised procurement strategy for the LUV program. The statement mentioned the plan 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 segment of the Canadian Armed Forces’ fleet.
The specific Canadian companies selected 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 12 submarines for the navy from German shipbuilder ThyssenKrupp Marine Systems (TKMS).
The PSPC notice emphasized that refocusing the LUV program aims to strengthen Canada’s defense industrial base. Additionally, the government also revealed plans to invest $800 million in a contract with Norwegian company Kongsberg Defence and Aerospace for joint strike missiles (JSM), designed for advanced anti-ship and land-attack capabilities.
Furthermore, there was mention of an agreement in principle related to the Defence Department’s Enhanced Satellite Communications Project – Polar (ESCP-P), which will utilize the Telesat Lightspeed system to provide secure military satellite communications in the Arctic region. The ESCP-P program is estimated to have a value of up to $5 billion, as per the department’s website.