Logistics Vehicle Modernization Project (LVM)
Project summary
The Logistics Vehicle Modernization (LVM) project will acquire new fleets of light and heavy logistics vehicles, trailers, vehicle modules, and armour protection kits. These vehicles are used by the CAF to transport personnel, equipment, and supplies in support of operations at home and abroad. They will also transport modules that can be used as spaces for functions such as cargo space, troop lift, ambulances, workshops, and command posts.
This new, modern fleet will be able to carry a larger load, be more mobile, and provide increased protection to help ensure the CAF can continue meeting national and global missions. These missions will include situations such as disaster relief both in Canada and abroad during emergencies such as flooding, combat support, and peacekeeping overseas.
Project phases
Currently in Phase 4: Implementation
1. Identification
1. Identification
- N/A
2. Options analysis
2. Options analysis
- N/A
3. Definition
3. Definition
- Project approval: February 7, 2019
- Request for Proposal Released: December 9, 2021
- Bid Evaluation Complete and Preferred Bidder selected: October 2023
4. Implementation
4. Implementation
- Project approval: 2023/24
- Contract award: May 2024
- Estimated First delivery: 2027
- Estimated Initial operational capability: 2028
- Estimated Full operational capability: 2030
5. Close-out
5. Close-out
- 2031
Learn more about the Defence procurement process.
Additional information
Project updates
Project updates
May 2024
Following the completion of an open, transparent, and competitive procurement process, two contracts were awarded to General Dynamics Land Systems – Canada and Marshall Aerospace Canada, in a joint venture, for the LVM project.
An acquisition contract valued at $1.5 billion (including taxes) was awarded for the purchase of the vehicles and related equipment. A second contract with a potential total value of $1.08 billion (including taxes) was awarded for in-service support of the vehicles for up to 25 years, if all option periods are exercised. This in-service support will be in place once the fleet has reached Full Operational Capability.
January 2024
The Government of Canada announced the selection of the preferred bidder for the LVM project.
October 2023
Following the completion of the bid evaluation, General Dynamics Land Systems – Canada and Marshall Aerospace Canada, in a joint venture, was selected as the preferred bidder for the LVM project.
June 1, 2022
Bid evaluation started.
May 31, 2022
Request for Proposal (RFP) closed to Qualified Suppliers.
December 9, 2021
The Government of Canada issued the Request for Proposal to qualified suppliers.
November 29, 2021
The Government of Canada hosted an Industry Day event which was open to all interested companies.
September 2021
Navistar Defence LLC withdrew to partner with the Rheinmetall qualified supplier team.
September 2020
Daimler AG withdrew to partner with the General Dynamics Land Systems qualified supplier team.
August 5, 2020
Contract awarded to the Nevada Automotive Test Centre to conduct the bid evaluation for the technical compliance program.
July 8, 2019
The Invitation to Qualify process was completed and qualified suppliers were announced. The following supplier teams qualified (in alphabetical order):
- Daimler AG (withdrew in September 2020 to join the General Dynamics Land Systems team)
- General Dynamics Land Systems – Canada Corporation and General Dynamics Land Systems, Incorporated
- Iveco Defence Vehicles S.p.A.
- Mack Defence LLC (with ARQUUS)
- Navistar Defence LLC (withdrew in September 2021 to join the Rheinmetall Inc and Rheinmetall MAN Military Vehicles GmbH team)
- Oshkosh Defence Canada Incorporated and Oshkosh Defence, LLC
- Rheinmetall Canada Inc. and Rheinmetall MAN Military Vehicles GmbH
April 29, 2019
An Invitation to Qualify was posted on buyandsell.gc.ca.
February 7, 2019
Project approval for definition was received.
Industry
Benefiting Canadian Industry
The Industrial and Technological Benefits (ITB) Policy will apply to the LVM Project. The ITB obligation will be equal to the value of the contract. Economic Impact Assessment will apply.
Technical Requirements
Technical Requirements
The logistics vehicle modernization project will provide equipment with a minimum life expectancy of 20 years.
This procurement will include:
- new light and heavy logistics vehicles;
- trailers;
- interchangeable modules that provide a variety of specialised function;
- special-purpose containers;
- material handling systems and equipment;
- protection kits;
- initial in-service and logistic support;
- infrastructure;
- long-term in-service support.
Project costs
Project costs
The acquisition cost for this project – including project management costs, infrastructure, contracts and contingency – is between $1 billion and $4.9 billion.
Issues/Risks
Issues/Risks
As implementation activities progress, project timelines for key milestones including vehicle delivery, Initial Operational Capability, and Full Operational Capability timelines will continue to be monitored and updated as needed.
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