ARCHIVED - Government of Canada to Renew Fleet of Land Combat Vehicles

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News Release / July 8, 2009 / Project number: NR - 09.055

OROMOCTO, NBThe Government of Canada today announced plans to procure the next generation of land combat vehicles, renewing a core capability of the Canadian Forces and providing our uniformed men and women with the equipment required to do their jobs safely and effectively.

The announcement was made by the Honourable Peter MacKay, Minister of National Defence and Minister for the Atlantic Gateway, along with the Honourable Keith Ashfield, Minister of State (Atlantic Canada Opportunities Agency), and Lieutenant-General Andrew Leslie, Chief of the Land Staff.

The Family of Land Combat Vehicles (FLCV) projects, valued at approximately $5 billion, including an estimated $1 billion to upgrade the current fleet of Light Armoured Vehicles (LAV) III, will deliver the next generation of land combat vehicles, providing the Army with a flexible, multi-purpose capability that will enable the Canadian Forces to respond effectively and successfully to the full spectrum of military operations.  The renewal of land combat vehicles is a key commitment of the Canada First Defence Strategy.

“The Government is committed through its Canada First Defence Strategy to renewing the Canadian Forces’ core equipment,” said Minister MacKay.  “In addition to a renewed commitment to domestic security, this defence investment creates jobs, brings economic benefits to Canadian industry, and creates and sustains long-term employment for Canadians.”

As part of this initiative, the current fleet of LAV III vehicles will be upgraded and three new fleets of land combat vehicles will be acquired, including Close Combat Vehicles (CCV), Tactical Armoured Patrol Vehicles (TAPV), and the Force Mobility Enhancement (FME) vehicles. 

“These vehicles will provide the Army with the modern and robust equipment needed to fulfill its role in today’s increasingly dangerous operating environment,” added Lieutenant-General Leslie. “They will also ensure that we are ready to take on the challenges of the future.”

All FLCV projects are now entering the definition phase, which analyses procurement strategies and specific requirements.  As part of this phase, the Government of Canada will partner with General Dynamics Land Systems – Canada (GDLS-C) to develop a solution for the upgrade of the LAV IIIs.  When this contract is awarded, it will generate significant early economic benefits to the country, including sustaining employment

The four projects will deliver significant economic benefits across Canada, with Canadian firms potentially participating in the manufacturing and assembly of vehicles as well as the engineering and support services over the next 25 years as part of long-term in-service support contracts.  Contract awards for the acquisition of all four fleets are expected for 2011.  Specific acquisition costs will be determined as the procurement process proceeds.  Incremental in-service support costs are still being determined.

“I am thrilled that our Government is providing vehicles that will directly benefit the lives of soldiers at CFB Gagetown and across the country," said Minister Ashfield, who is also Member of Parliament for Fredericton. "The Canada First Defence Strategy is ensuring the Canadian Forces gets what it needs to do the jobs we require of our men and women in uniform.”

The Department of National Defence works closely with Public Works and Government Services Canada and Industry Canada to develop strategies for major defence procurement, ensuring that Canadians get best value for money spent, and maximum benefits to industry.

The Industrial and Regional Benefits (IRB) Policy, administered by Industry Canada, will be applied to all projects.  Winning contractors will be required to undertake business activities in Canada at 100% of the contract values.  This means that one dollar of economic activity will be generated in Canada for every contract dollar awarded.

In commenting on the planned announcement, the Honourable Tony Clement, Minister of Industry, said:  “The Government of Canada remains committed to capitalizing on its major purchases to generate the greatest amount of economic benefit to Canadian industry and the economy at large. Canada’s Industrial and Regional Benefits Policy is in place to ensure that prime contractors generate long-term and significant economic activity in Canada.”

“The Government of Canada is determined to provide our forces with the best possible equipment while delivering the transparency and accountability Canadians expect,” added the Honourable Christian Paradis, Minister of Public Works and Government Services. “The project announced today will help our forces fulfill their specific and unique tasks and provide significant economic benefits for Canadian businesses here at home.”

The next steps for the CCV, FME, and TAPV projects will be the publishing of a combination of solicitations of interest qualification (SOIQ), requests for proposal (RFP), letters of interest (LOI) or price and availability (P&A) on the MERX site in the coming weeks.  The Canadian Forces will start using the new land combat vehicles by 2012, with a fully operational fleet intended for 2015.

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Backgrounders are available on the Land Combat Vehicles (LCV) projects, please click here.

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