The Canadian government has quietly scrapped the second phase of a longstanding competition for supplying light utility vehicles to the army, opting instead to directly invite a limited number of Canadian suppliers to bid, according to information obtained by CBC News. Public Services and Procurement Canada (PSPC) issued a notice indicating a shift to an updated procurement approach late Friday.
The canceled invitation sought companies to qualify for bidding on the Light Utility Vehicle (LUV) program, estimated to be around $4.9 billion, as per the Department of National Defence website. Initially, six primary competitors were identified, including two U.S. companies, AM General and Oshkosh Defence, along with Canadian firms Armatec Survivability Group, GM Defense Canada, Roshel, and Terradyne Armoured Vehicles.
The government now plans to further narrow down the competition by limiting the tender to two Canadian defense industry suppliers. The goal is to deliver 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 are yet to be disclosed.
This decision to favor domestic LUV suppliers was highlighted in a statement released by the Prime Minister’s Office following the NATO summit in Turkey. The move to exclude foreign bidders came just before the summit and after the recent announcement to purchase 12 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, recent investments in defense include 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, estimated to be a $5 billion program. Defense Minister David McGuinty refrained from commenting on the LUV program status during the NATO summit.