The Canadian government has quietly halted the second phase of a longstanding competition aimed at supplying the army with light utility vehicles. Instead, they plan to directly invite a limited number of Canadian suppliers to participate in the bidding process, as per information obtained by CBC News.
Public Services and Procurement Canada (PSPC) released a notice on Friday, indicating the government’s intention to shift to a revised procurement approach. The notice, obtained by CBC News, cancels the invitation for interested companies to qualify for the Light Utility Vehicle (LUV) program procurement, which could be valued at up to $4.9 billion, according to the Department of National Defence website.
Previously, six main 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 field further.
Following the NATO summit in Turkey, the Prime Minister’s Office announced new defense investments, highlighting the updated procurement strategy for the LUV program. The statement mentioned a plan to limit the tender to two Canadian defense industry suppliers to provide a specific number of vehicles and light utility trailers for the militarized segment of the Canadian Armed Forces’ fleet.
The selected Canadian companies have not been disclosed yet. The decision to exclude foreign bidders was made just before the NATO summit in Ankara and shortly after the announcement to purchase submarines from German shipbuilder ThyssenKrupp Marine Systems.
The PSPC notice emphasized that refocusing the LUV program would help strengthen Canada’s defense industrial base. Additionally, the government revealed plans to allocate $800 million for a contract with Norwegian company Kongsberg Defense and Aerospace to acquire joint strike missiles (JSM) and to utilize the Telesat Lightspeed system for military satellite communications in the Arctic under the Enhanced Satellite Communications Project – Polar (ESCP-P), estimated to be valued at up to $5 billion.