Canadian Manufacturing

Feds confirm decision to ditch $2.1B armoured vehicle program

by Canadian Manufacturing Daily Staff   

Canadian Manufacturing
Operations Procurement Public Sector defence Manufacturing politics Public procurement

Department of National Defence statement said LAV IIIs will suffice; do a better job than predicted

OTTAWA—The Department of National Defence has confirmed plans to bail on a $2.1-billion armoured vehicle procurement program it launched in 2009 at the behest of top military officials.

The DND released a statement early Dec. 20 confirming the decision to scrap the Close Combat Vehicle (CCV) procurement project that was in the market for 108 36-tonne vehicles.

“After a careful review of priority military requirements and given improved capabilities across the Canadian Armed Forces due to significant government investment, the Canadian Armed Forces recommended that the government not proceed with this acquisition,” Defence Minister Rob Nicholson said in the statement.

“We accepted the military’s recommendation.”

According to the DND, the decision was made in part due to the capabilities of the upgraded Light Armoured Vehicle III program, which are “far superior” to what the department initially estimated.

“Based on this assessment, and the fundamental principle that the Canadian Armed Forces do not procure capabilities unless they are absolutely essential to the attainment of our mandate—the mandate outlined in the Canada First Defence Strategy—we recommended that the government … not proceed with the procurement process for the Close Combat Vehicle,” read a statement issued on behalf of Gen. Tom Lawson.


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