The Canadian government has quietly terminated 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 participate, as per information obtained by CBC News.
Public Services and Procurement Canada (PSPC) issued a notice on Friday indicating a shift to an updated procurement approach. The notice revokes the invitation for interested companies to qualify for bidding on the Light Utility Vehicle (LUV) program, which could amount to $4.9 billion, according to the Department of National Defence website.
Among the identified competitors were six main companies, including two from the U.S. – AM General and Oshkosh Defence – and four Canadian companies: Armatec Survivability Group, GM Defense Canada, Roshel, and Terradyne Armoured Vehicles. The government appears inclined to further narrow down the selection process.
Following the NATO summit in Turkey, the Prime Minister’s Office highlighted new defense investments, mentioning the revised procurement strategy for the LUV program. They aim to restrict 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 section of the Canadian Armed Forces’ fleet.
The specific Canadian companies to be chosen remain uncertain. The decision to exclude foreign bidders came just before the NATO summit in Ankara and following the announcement to purchase 12 submarines from German shipbuilder ThyssenKrupp Marine Systems (TKMS).
The PSPC notice emphasized that refocusing the LUV program would contribute to bolstering Canada’s defense industrial base. Additionally, the government announced an $800 million contract with Norwegian company Kongsberg Defence and Aerospace for joint strike missiles (JSM) during the NATO summit. The missiles are designed for F-35 stealth fighters to evade modern radar and air defense systems.
Moreover, an agreement was mentioned involving the Defense Department’s Enhanced Satellite Communications Project – Polar (ESCP-P) to utilize the Telesat Lightspeed system for continuous military satellite communications in the Arctic. The ESCP-P program is estimated to be valued at up to $5 billion, according to the department’s website.