Procurement – Land

Armoured Combat Support Vehicles (ACSV)

  • In September 2019, the Government awarded a contract to General Dynamics Land Systems-Canada to acquire 360 new armoured combat support vehicles.
  • These vehicles will offer critical combat support in high-threat environments by serving as command posts, ambulances, mobile repair, vehicle recovery, and engineering support.
  • This project is helping sustain 1,650 jobs in London, Ontario, and more than 8,500 defence industry jobs in the supply chain across Canada.
  • In addition, the agreement with General Dynamics requires that the company reinvest 100% of the value of the contract back into the Canadian economy.
  • The first vehicles should be delivered as early as December 2020, with the full fleet delivered by 2025.
  • These vehicles will provide Canadian Armed Forces members with the protection and mobility needed to successfully conduct operations.  

Key Facts

  • The estimated cost range for this project is up to $3B.
    • This includes the $2B contract value for acquiring 360 vehicles, as well as other costs like project management, integrated logistics support, and infrastructure.
  • COVID-19: The project schedule has not been impacted by the pandemic, but an effect is possible given impacts seen elsewhere across the broader defence industry. We continue to closely monitor the situation.  
  • Main Estimates 2020-21 request: $269.4M
    • Funds will be used to design and develop all eight vehicle models, as well as produce and begin to deliver the vehicles.

Details

  • On August 16, 2019, the Minister of National Defence announced that the Government will acquire 360 Armoured Combat Support Vehicles from General Dynamics Land Systems-Canada. Funds for the purchase are in the approved budget for Canada’s defence policy, Strong, Secure, Engaged.
    • This announcement raised questions in the media regarding sole-sourced contracting, and increased project costs.
    • In its response, National Defence noted that the project costs include not only the vehicles, but logistics support and new infrastructure to house and maintain the equipment.
    • National Defence also explained how this approach would save costs associated with maintaining or extending the life of the current fleet.
    • Finally, the Government sole-sourced the contract because General Dynamics builds most other armoured vehicles for the Canadian Armed Forces, and having a vehicle based on the same chassis allows for savings in maintenance and training.
  • General Dynamics Land Systems-Canada, whose parent company is General Dynamics Land Systems (US), is Canada’s largest defence company. They have has an extensive supply chain in Canada, including an Indigenous-owned company providing metalwork.
  • Maximizing the economic benefits of this project for Canadians, the supplier is required to reinvest an amount equal to the value of this contract back into the Canadian economy.
  • These vehicles are based on the Light Armoured Vehicle 6.0 platform, and will replace the Tracked Light Armoured Vehicles and Light Armoured Vehicles II Bison.
  • The similarity of the Armoured Combat Support Vehicles fleet to the Light Armoured Vehicle 6.0 fleet will reduce the amount of training required for operations and maintenance and streamline logistics, so the Canadian Army can integrate the fleet into operations sooner.

Version 1 – 2020-06-10 – Source: ADM(Fin) Main Estimates note

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Light Armoured Vehicle III upgrade

  • This Government has completed upgrades to 550 of the Canadian Army’s full fleet of light armoured vehicles.
  • The last of the upgraded vehicles was delivered in July 2019.
  • Under the Industrial Regional Benefits policy, the full value of that contract has been reinvested into the Canadian economy.
  • We are now moving forward with making final component upgrades to complete the project.
  • These upgrades include new Laser Range Finders, communications cables, energy attenuating seats, and new air conditioning blower motors.
  • Taken together, these upgrades will provide Army personnel with better protection and offensive capabilities on patrol and in combat.

Key Facts

  • Contractor: General Dynamics Land Systems-Canada, located in London, Ontario.
  • Total projected cost is $1.75B, excluding taxes.
  • COVID-19: Timelines to deliver these upgrades by Spring 2020 have been delayed due to the pandemic. Revised timelines will be available once the situation has stabilized.    
  • Main Estimates 2020-21 request: $34M to pay for component updates that will ensure fleet viability to 2035.

Details

  • General Dynamics Land Systems (Canada) was awarded the original contract for a full upgrade (both turret and chassis) to the majority of the Light Armoured Vehicle (LAV) III fleet to improve protection, mobility, and lethality, while maximizing command support and improving crew ergonomics. The contract was later amended to include the full fleet, including vehicles originally scheduled to receive only turret upgrades.
  • Final upgrades to the fleet are now being developed, including 118 new Laser Range Finders, communications cables, energy attenuating seats for the command post, and new air conditioning. This program of upgrades will ensure the Light Armoured Vehicle fleet are operationally viable until 2035.
  • Timelines to deliver additional program upgrades by Spring 2020 have been pushed back partially because of the COVID-19 pandemic. General Dynamics has not committed to a new schedule yet due to the uncertainty surrounding travel restrictions, both domestically and internationally. 

Activities to date

  • October 2011: The Government announced the $1.064 billion contract, awarded to General Dynamics Land Systems – Canada of London, Ontario, for the implementation phase of the project.
  • November 2012: The contract was amended to exercise the option to upgrade 66 additional LAV III for an additional $151 million, in support of the Light Armoured Vehicle Reconnaissance Surveillance System project.
  • January 2013: Delivery ceremony for the first upgraded LAV III in London, Ontario.
  • July 2016: The Commander of the Canadian Army accepted the upgraded LAV III as the Canadian Army deployable LAV fleet. Exercise "Maple Resolve 16", held in Wainwright in May 2016 successfully fielded more than 110 upgraded LAV III.
  • February 2017: The Government announced the $404 million contract amendment (taxes included) that includes the full upgrade to the 141 Light Armoured Vehicle Operational Requirement Integration Task (LORIT) vehicles. These 141 vehicles, in the total of 550, had been scheduled to only receive a partial upgrade under the original scope of the contract.
  • July 2019: The last of the 550 vehicles was upgraded and delivered to the Canadian Army, which satisfied the requirement for Full Operational Capability. There are some outstanding contract deliverables remaining.

Version 1 – 2020-06-09 – Source: ADM(Fin) Main Estimates note

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Medium Support Vehicle System (MSVS)

  • Through the Medium Support Vehicle System Project, National Defence has acquired a new fleet of medium capacity logistics trucks.
  • The Standard Military Pattern trucks have all been delivered and distributed to bases across the country, including Montreal, Edmonton, Shilo, Gagetown, Petawawa and Valcartier.
  • These new trucks will provide lift and logistical support on the ground, and will transport equipment and supplies to where they are needed most.  
  • In the next phase of this project, National Defence will buy spare parts, tools and Armoured Protection Systems for these vehicles.
  • Under the Industrial Regional Benefits Policy, the full value of this contract will be reinvested into the Canadian economy, benefiting Canadian industry and supporting Canadian jobs.

Key Facts

  • Total budget is $1.5B, including $50M for major in-service support contracts.
  • Twelve trucks have been deployed since January 2020 for Operation REASSURANCE.
  • COVID-19: Remaining timelines are not expected to be impacted by the COVID-19 pandemic, but we continue to closely monitor the situation.
  • Main Estimates 2020-21 request: $68M
    • Funds will be used to buy spare parts, tools and Armoured Protection Systems

Details

  • The Military Support Vehicle System (MSVS) project aims to procure a new medium-sized logistics capability that will be used by both the Regular and Reserve Forces in a wide range of support roles, domestically and abroad. It will modernise and improve the Canadian Armed Forces sustainment capacity.
  • The MSVS is a multi-phased project that has five parts:
    • Phase 1: Military Commercial Off-The-Shelf (MilCOTS) trucks (completed)
    • Phase 2: Shelters (completed)
    • Phase 3: Kitting of Shelters (completed)
      • “Kitted shelters” are mobile workspaces that provide medical, dental, workshop, field kitchen, and command post capabilities, among others.
    • Phase 4: Standard Military Pattern (SMP) trucks, including load handling system trailers, armoured protection systems, and in-service support (ongoing)
    • Phase 5: Minor infrastructure upgrades (ongoing)

Activities to date

  • March 2011: 1300 MilCOTS trucks in-service and distributed across Canada.
  • February 2015: 994 shelters delivered and distributed across Canada.
  • June 2015: Contracts awarded for the acquisition of SMP trucks, Armoured Protection Systems, Load Handling System trailers, and In-Service Support.
  • November 2016: 846 shelter kits delivered and distributed across Canada.
  • April 2018 - February 2020: SMP trucks distributed to Canadian Forces Bases in Montreal, Edmonton, Shilo, Gagetown, Petawawa, and Valcartier.
  • February 2020: All 1587 trucks and 322 trailers have been delivered and are in-service across Canada.
  • June 2020: 145 of 161 armoured protection systems have been delivered thus far. The SMP In-Service Support Contract has been extended by an additional five years.

Version 0 – 2020-06-10 – Source: ADM(Fin)

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Tactical Armoured Patrol Vehicle (TAPV)

  • This Government has procured 500 new Tactical Armoured Patrol Vehicles for the Canadian Army.  
  • The last of these vehicles was delivered in December 2018.
  • This year, National Defence is procuring additional equipment and logistics products for the fleet, including:
    • Weapons Effect Simulator integration;
    • Infrastructure renovations;
    • 76mm smoke grenades;
    • Remote Weapons System simulators; and,
    • Special Tooling and Test Equipment.
  • Through the Industrial and Regional Benefits policy, this project is directly injecting $727 million into the Canadian economy through acquisition and support contracts.
  • We anticipate that the fleet will be fully operational by the end of this year.
  • These versatile and mobile vehicles will provide a high degree of protection for our Canadian Armed Forces members.

Key Facts

  • Contractor: Textron Systems Canada Inc., in Ottawa, Ontario.
  • The total approved budget is $1.25B, excluding taxes.
  • In 2019, the Tactical Armoured Patrol Vehicle was used in Exercise MAPLE RESOLVE, the most comprehensive Canadian Army training event of the year.
  • COVID-19: Timelines are not expected to be impacted by the COVID-19 pandemic, but we continue to closely monitor the situation.
  • Main Estimates 2020-21: $32.9M
    • Funds will be used to pay for additional equipment and logistics products for the fleet

Details

  • The Tactical Armoured Patrol Vehicle (TAPV) is a versatile and extremely mobile vehicle that provides a very high degree of protection for its crew.
  • In June 2012, through a competitive process, the Government awarded Textron Systems Canada Inc. an acquisition contract for 500 vehicles, as well as a long-term support contract.
  • Delivery of the TAPV began in August 2016, with the last of the 500 vehicles delivered in December 2018.
  • The project also delivered 40mm ammunition under the Munitions Supply Program.
  • In February 2020, the forecasted Final Operating Capability date was extended from December 2019 to October 2020. Project Close-Out was also extended from March 2021 to December 2021. This delay results from the need to complete infrastructure upgrades and delivering systems for the vehicle. National Defence continues to monitor whether there may be any additional project delays due to the COVID-19 pandemic.
    • There are outstanding infrastructure upgrades at the following bases:
      • Canadian Forces Base Valcartier - Completion estimated in July 2020;
      • Canadian Forces Base Shilo - Completion estimated in December 2021; and,
      • Canadian Forces Base Meaford - Completion estimated in December 2021.
    • Delivery of the following systems is outstanding:
      • Ventilated Respirator System - Delivery in October 2021;
      • 76mm Smoke Grenades - Delivery in November 2021; and,
      • Weapons Effect Simulator Integration - Delivery in May 2021.

Version 0 – 2020-06-10 – Source: ADM(Fin) note

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