Logistics Vehicle Modernization Project (LVM)

1. Identification

• N/A

2. Options analysis

• N/A

3. Definition

• Project approval: February 7, 2019
• Request for Proposal Released: December 9, 2021
• Bid Evaluation Complete 2021/2022

4. Implementation

• Project approval: 2022/23
• Contract award: 2022/23
• First delivery: As early as 2025/26
• Initial operational capability: As early as 2026/27
• Full operational capability: As early as 2029/30

5. Close-out

• 2029/2030

Project updates

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.

August 14, 2021
Release of updated draft RFP to qualified suppliers.

May to June 2021
Virtual engagement sessions with qualified suppliers to review their feedback on the latest draft RFP documents.

December 2020 to July 2021
Subsequent releases of second portion of draft Request for Proposal (RFP) documentation to qualified suppliers.

September 2020
Daimler AG withdrew to partner with the General Dynamics Land Systems qualified supplier team.

July to September 2020
Release of first portion of draft Request for Proposal (RFP) documentation to qualified suppliers.

August 5, 2020
A contract was 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)
• General Dynamics Land Systems – Canada Corporation and General Dynamics Land Systems, Incorporated
• Iveco Defence Vehicles S.p.A.
• Mack Defence LLC
• Navistar Defence LLC
• 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.

Benefiting Canadian Industry

Industry engagement so far includes:

• Kick-off teleconferences with Qualified Suppliers took place in August as part of the Review and Refine Requirements (RRR) phase.
• Between August 2019 and April 2021, the Request for Proposal documentation was released to qualified suppliers to solicit feedback.
• Ongoing engagement with the qualified suppliers to refine solicitation documents continue.

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 may apply.

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 (for heavy vehicles only);
• initial in-service and logistic support;
• infrastructure upgrades;
• new buildings to house and maintain the vehicles at bases;
• long-term in-service support contract.

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

COVID-19 has had an impact on all procurement projects in some form. Challenges may impact the project schedule or cost to varying degrees, as the full impacts continue to be assessed. We continue to monitor the situation closely and update the project page should any information change. In collaboration with our industry partners, we are continuing to work on mitigation measures where possible, while keeping our respective workforces safe.