Logistics Vehicle Modernization Project (LVM)

Project summary

The Logistics Vehicle Modernization 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 things 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 3: Definition

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: Late summer 2021
  • Bid Evaluation Complete 2021/2022
4. Implementation

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

5. Close-out

  • 2029/2030

Learn more about the Defence procurement process.

Additional information

Project updates

Project updates

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.

Industry

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

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

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

The overall risk of the Logistics Vehicle Modernization project is assessed as low. Requirements and final quantities of equipment is being refined during the definition phase. Since the current in-service fleets have reached the end of their service life, it is imperative that the replacement capability schedule targets are met. The impact of COVID-19 on this procurement continues to be assessed.

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