Logistics Vehicle Modernization Project

Explore the project to modernize and improve the light and heavy vehicle capability of the Canadian Armed Forces (CAF).

Project at a glance

Overview: The Logistics Vehicle Modernization (LVM) Project is modernizing and improving the CAF’s light and heavy logistics vehicle capability
Procuring: Light and heavy logistics vehicles, ancillary equipment and initial in-service support; Minor fleet of heavy engineer support vehicles; Long-term in-service support, infrastructure upgrades and construction services
Project status: 2 contracts were awarded on May 23, 2024 to General Dynamics Land Systems–Canada and Marshall Canada in a joint venture
Contracts value: $1.5 billion (including taxes) for the purchase of the vehicles and associated equipment; $1.08 billion (including taxes) for long-term in-service support
Next steps: The first deliveries of the LVM project are anticipated to occur in the 2026 to 2028 timeframe with Initial Operational Capability (IOC) by 2027 to 2029, and Full Operational Capability (FOC) by 2029 to 2031

Project description

The project seeks to revitalize and replace Canada’s light and heavy logistics vehicle capabilities. Modernizing the CAF’s logistics vehicle fleet is an initiative outlined in Canada’s defence policy: Strong, Secure, Engaged. The Industrial and Technological Benefits Policy, including the Value Proposition, applies to this procurement.

Procurement progress and engagement

The procurement was completed through an open, fair and transparent competitive process.

2011 and 2014

Industry engagement began with the publication of letters of interest in 2011 and 2014 to seek industry feedback on the procurement strategy.

2019 and 2020

February 7, 2019: Approval was received for project definition
March 18, 2019: A draft invitation to qualify (ITQ) was released to industry for feedback and comments
April 29, 2019: Using the feedback from the draft ITQ, a formal invitation to qualify was released
July 8, 2019: A list of qualified suppliers, who demonstrated the technical ability to develop and propose solutions for the project, was released. The list includes:
- Daimler AG (September 11, 2020: Notified Canada of their intent to partner with General Dynamics Land Systems—Canada)
- General Dynamics Land Systems: Canada Corporation and General Dynamics Land Systems, Incorporated
- Iveco Defence Vehicles S.p.A.
- Mack Defense LLC (with ARQUUS)
- Navistar Defense LLC (September 13, 2021: Notified Canada of their withdrawal as a qualified supplier)
- Oshkosh Defense Canada Incorporated and Oshkosh Defense, LLC
- Rheinmetall Canada Inc. and Rheinmetall MAN Military Vehicles GmbH

Only these suppliers were invited to participate in the next phases of engagement and were allowed to submit bids in response to the request for proposal (RFP).

2021

Engagement continued with qualified suppliers to review and finalize the RFP
August 2021: The last draft RFP was released to qualified suppliers in 2 phases, to allow suppliers the opportunity to review and provide feedback on the LVM primary requirements
November 29, 2021: A virtual industry briefing took place
December 2021: The formal RFP was released to qualified suppliers

2022

May 2022: Proposals were received from qualified suppliers in response to the RFP process
The evaluation process began

2023

End of October 2023: Evaluation of bids was completed

2024 and beyond

January 17, 2024: The preferred bidder was announced
May 23, 2024: 2 contracts were awarded to to General Dynamics Land Systems–Canada and Marshall Canada, in joint venture, for the Logistics Vehicle Modernization (LVM) Project

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