Canada has scrapped an open competition for a $4.9 billion army vehicle contract and will instead invite only Canadian suppliers to bid, sidelining two American contenders.
Public Services and Procurement Canada issued a notice canceling the qualification phase for the Light Utility Vehicle program, with the government intending to “immediately limit the tender to two Canadian defence industry suppliers” for 1,600 to 2,100 vehicles and 400 to 500 trailers.
Six companies had originally qualified to compete: American firms AM General and Oshkosh Defence, and Canadian companies Armatec Survivability Group, GM Defense Canada, Roshel, and Terradyne Armoured Vehicles. It’s not yet clear which two Canadian suppliers will be chosen.
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The vehicles are meant to replace the army’s aging fleet of Mercedes-Benz G-Wagons and Chevrolet Silverados. PSPC’s notice justified the shift on domestic-industry grounds, saying the refocused program will help strengthen Canada’s defense industrial base.
Defence Minister David McGuinty declined to comment on the decision while at the NATO summit in Ankara this week, saying he’d need to follow up with reporters.
The vehicle decision came the same week as Canada’s newly finalized $4.5 billion submarine deal with Germany’s TKMS over South Korea’s Hanwha Ocean. Norway’s Kongsberg Defence and Aerospace won an $800 million contract for joint strike missiles designed for the F-35, and Canada reached an agreement in principle to use Telesat‘s Lightspeed satellite system for sovereign Arctic military communications, a program valued at up to $5 billion.
