Armoured vehicles purchase hits Defence Department speed bump
By David Pugliese, Ottawa CitizenDecember 17, 2009 12:43 AM
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The Canadian military will purchase $5 billion worth of new-generation armoured vehicles to combat 'equipment fatigue,' Walt Natynczyk has announced.
The Canadian military will purchase $5 billion worth of new-generation armoured vehicles to combat 'equipment fatigue,' Walt Natynczyk has announced.
Photograph by: Shah Marai, AFP/Getty Images
Five months after Defence Minister Peter MacKay announced a multibillion-dollar project to buy new armoured vehicles, the program has run into trouble as government officials question the value of the purchase in the wake of the looming 2011 troop pullout from Afghanistan.
Military officers privately acknowledge the Defence Department's program to buy more than 100 Close Combat Vehicles (CCVs) has fallen about a year behind schedule and there are concerns within the Canadian Forces the project might be scuttled.
In addition, a Dec. 2 letter from Public Works, obtained by Canwest News Service, confirms the timetable for the program has slipped at least six months.
Although details on the cost of the project haven't been released, some estimates have the price tag at as high as $2 billion. According to the CCV schedule, a contract would be in place by next September.
But the Dec. 2 letter written by Public Works official Kristen Ward points out that because of ongoing delays, the Canadian Forces would only be getting around to testing various candidate vehicles at that point.
Also delayed is the release to industry of what is known as a statement of interest and qualifications, or SOIQ. That document outlines further details of the project and is a key step in identifying what companies might be interested in bidding.
In her letter to industry, Ward noted the SOIQ "will be released in the near future" but she did not provide any date. The SOIQ was originally supposed to be issued Sept. 15.
Industry representatives and military officers say the delay is because of an internal battle in government and the Defence Department over the project.
The army argues that the vehicles, which would accompany its Leopard tanks into battle, are a priority.
But others at the Defence Department question whether the project is the best way to spend defence dollars when other, more important equipment is needed. Some in government have questioned whether the vehicles are still a priority since the military mission in Afghanistan finishes in July 2011 and a large-scale mission requiring close combat vehicles likely would not be planned anytime soon after.
Some Conservative government aides have questioned the type of industrial benefits the project would have for Canadian firms.
But various companies interested in bidding have assured the government they would do much of the work in Canada.
The Defence Department stated in an e-mail that the close combat vehicle project is still of high importance. "The acquisition of new land combat vehicles is a key step in the implementation of the Canada First Defence Strategy, the government's commitment to renewing the Canadian Forces' core equipment platforms," according to an e-mail from spokeswoman Lynne Rattray.
The e-mail noted the SOIQ would be released as soon as possible after it received government approval. Rattray did not give details on when that might happen.
MacKay announced the close combat vehicle project in July.
Stephen Priestley, an analyst with the Canadian-American Strategic Review, noted the Afghan pullout in 2011 would make the project difficult to move forward. Priestley said the concept makes sense but added, "Where was the urgency for these vehicles three years ago?"
In addition, the Defence Department is asking for bids to repair and overhaul Leopard 2 training tanks. But the first of those tanks won't be delivered for at least another 18 months.
In March, army commander Lt.-Gen. Andrew Leslie expressed his frustration during a Senate defence committee hearing that Leopard 2 tanks purchased from the Netherlands had been sitting in storage for nearly two years. "Quite frankly, it's taking an awfully long time," Leslie said.
Dan Ross, the Defence Department's assistant deputy minister of materiel, declined to authorize tank project staff to do an interview with Canwest News Service about the program.
© Copyright (c) The Ottawa Citizen



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