Government of Canada announces preferred bidder for Logistics Vehicle Modernization project in support of Canadian Armed Forces

GATINEAU, QC, Jan. 10, 2024 /CNW/ - The Government of Canada is committed to providing members of our Canadian Armed Forces (CAF) with the modern vehicles, equipment and services they need to keep Canadians safe. To support domestic and international exercises and operations, the CAF requires a robust logistics supply chain. An important part of this chain consists of logistics vehicles used to transport materiel, munitions, personnel and other supplies between and within areas of operation.

Following an open, fair and transparent procurement process, including multiple engagements with industry, Public Services and Procurement Canada (PSPC) has identified General Dynamics Land Systems?Canada as the preferred bidder to provide the CAF with a new fleet of light and heavy logistics vehicles, equipment and in-service support. The modernized fleet and new equipment will increase mobility and protection, supporting the CAF in accomplishing missions in Canada and abroad.

Through the Logistics Vehicle Modernization (LVM) project, the Government of Canada is replacing its existing fleet of logistics vehicles, which can be used to transfer resources, personnel and military assets during domestic and international operations and training exercises. 

The identification of General Dynamics Land Systems?Canada as the preferred bidder represents a significant milestone in the competitive procurement process and follows a rigorous bid evaluation process. A contract is anticipated to be awarded to the company in spring 2024, conditional on final government approvals.

Canada's Industrial and Technological Benefits Policy applies to this procurement and requires the supplier to make investments in Canada equal to the value of the acquisition.

To support Indigenous participation in the delivery of the project, the preferred bidder is required to submit an Indigenous Participation Plan after contract award. This plan aims to commit up to 5% of the contract value to support the employment of Indigenous Peoples and the procurement of goods and services from Indigenous businesses and entrepreneurs. The plan will also implement training and skill development programs, in collaboration with the Indigenous partners of the preferred bidder.

"The identification of General Dynamics Land Systems?Canada as the preferred bidder for the Logistics Vehicle Modernization project marks a significant milestone in the procurement process to modernize the Canadian Armed Forces' existing fleet. This will ensure members of the CAF are equipped with the vehicles, equipment and services they need to continue to fulfill combat, disaster relief and peacekeeping missions in Canada and abroad."

The Honourable Jean-Yves Duclos
Minister of Public Services and Procurement

"Through the Logistics Vehicle Modernization project, we are investing to provide the Canadian Armed Forces with modern logistics vehicles that will be used to transport personnel, equipment and supplies in support of operations at home and abroad. Today's milestone is an important step forward in this project. This decision brings the Canadian Army closer to receiving the vehicles that it needs to continue to protect Canadians."

The Honourable Bill Blair 
Minister of National Defence

"The Canadian Armed Forces members deserve the modern equipment required to effectively perform their duties at home and abroad. This project will provide military members with the needed vehicle fleet while also creating and maintaining highly skilled jobs and contributing to economic growth in Canada."

The Honourable François-Philippe Champagne
Minister of Innovation, Science and Industry

• National Defence has a requirement to acquire a new fleet of light and heavy logistics vehicles, trailers, vehicle modules, armour protection kits, logistics support and initial in-service support.
• The LVM equipment will be used in a variety of missions, including emergency disaster relief in Canada and abroad, and during combat support and peacekeeping activities overseas.
• Engagement with qualified suppliers has been an integral part of this procurement process. Through this engagement, the Government of Canada defined its requirements, and industry representatives had the opportunity to provide feedback.
• To ensure the fairness and integrity of this procurement, PSPC engaged the services of an independent fairness monitor to oversee the process, including upcoming discussions with General Dynamics Land Systems?Canada. The fairness monitor will provide an impartial report, inclusive of opinions and observations made throughout the monitored procurement activities.
• The competitive procurement process began on March 18, 2019, with the publication of a draft Invitation to Qualify (ITQ). The formal ITQ was published on April 26, 2019, and a list of qualified suppliers was released on July 8, 2019.
• The final draft Request for Proposal (RFP) was provided to qualified suppliers in August 2021 in 2 phases, to allow suppliers the opportunity to review and provide feedback on the primary requirements of the LVM project. The final RFP was released in December 2021 and closed in May 2022.

• Logistics Vehicle Modernization project
• Defence purchases and upgrades process
• Canada's industrial and technological benefits

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SOURCE Public Services and Procurement Canada