Marshall and Power Team awarded contract for Canada’s flagship vehicle logistics project

Marshall and Power Team awarded contract for Canada’s flagship vehicle logistics project

Canada's Department of National Defence today announced that it has formally awarded the Logistics Vehicle Modernization (LVM) contract to the Power Team, a consortium led by General Dynamics Land Systems-Canada (GDLS-Canada) and Marshall Canada.

The announcement was made in Ottawa by the Honourable Bill Blair, Minister of National Defence, at an industry and media gathering on the opening day of CANSEC, the nation’s largest security and defence show.

The Power Team, made up of GDLS-Canada, Marshall Canada, Mercedes Benz, Soframe and Manac, will provide the replacement for the Canadian Armed Forces’ (CAF) existing fleet of logistics vehicles - an essential capability for transferring resources, personnel and military assets during domestic and international operations and training exercises.

The LVM project is being awarded in two contracts: one for vehicle acquisition to provide over 1,000 light trucks and approximately 500 heavy trucks valued at CAD$1.5 billion (including taxes), and one for in-service support for a total potential value of CAD$1.08 billion (including taxes) over 25 years.

With GDLS-Canada serving as prime integrator, Marshall will produce a range of interchangeable light and heavy 10ft and 20ft mission modules capable of being mounted onto Mercedes-Benz Zetros trucks, which will provide the common vehicle chassis across all configurations.

“We are incredibly proud to be supporting this flagship logistics project for the Canadian Armed Forces as part of the Power Team," said Marshall Chief Growth Officer Bob Baxter.

“The LVM contract award demonstrates the strength of our partnership with General Dynamics and reflects the level of confidence some of the world’s largest governments have in our ability to deliver high volume, multi-year contracts.”

Production of the mission modules will be carried out at Marshall’s new site in Moncton, New Brunswick. The 82,000 sq ft (7,600 sq m) production facility opened its doors last October as part of Marshall’s strategic plan to broaden its global reach and availability to meet the scaling needs of a growing global customer base.

"Delivering LVM will bring a new level of growth and maturity to Marshall’s presence in New Brunswick,” said Marshall Canada Executive Vice President Sam Michaud.

“This is an unprecedented opportunity to further strengthen the industrial base that continues to thrive in Atlantic Canada, while hiring and training to secure a pipeline of talent into the future.”

By 2028, the LVM project is expected to create over 500 new direct employment opportunities in eastern Canada. Production from Marshall’s Moncton facility is expected to boost New Brunswick’s fabricated metal manufacturing sector GDP by as much as 15 per cent by 2026, while driving export revenues to help address the province’s trade deficit in the sector.