The government led by Carney has quietly scrapped the second phase of a long-running competition to supply the army with light utility vehicles. Instead, they plan to directly invite a limited number of Canadian suppliers to bid, as per information obtained by CBC News.
Public Services and Procurement Canada (PSPC) issued a notice late on Friday, indicating a shift to an updated procurement approach. This notice, acquired by CBC News, cancels the invitation for interested companies to qualify for bidding on the Light Utility Vehicle (LUV) program, which is valued at up to $4.9 billion according to the Department of National Defence website.
Previously, 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 appears to be narrowing down the competition even further.
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 mentions 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 to be chosen have not been disclosed yet. This decision to exclude foreign bidders comes in the context of the recent multibillion-dollar announcement to purchase 12 submarines for the navy from German shipbuilder ThyssenKrupp Marine Systems (TKMS).
The PSPC notice emphasized that refocusing the LUV program would help in strengthening Canada’s defense industrial base. Additionally, Carney’s office revealed a contract worth $800 million with Norwegian company Kongsberg Defence and Aerospace for joint strike missiles (JSM) and an agreement involving the Enhanced Satellite Communications Project – Polar (ESCP-P) to utilize the Telesat Lightspeed system for military satellite communications in the Arctic. The ESCP-P program is estimated to be valued at up to $5 billion based on the department’s website.