A report in the National Post states that rumours of the federal government’s cancellation of a $2 billion tendering process for close combat vehicles are being denied by government officials:
The Conservative government is said to be intent on avoiding another military procurement embarrassment, as it prepares a Throne Speech expected to overhaul the way Canada buys military equipment. At the centre of the latest potential procurement controversy is the $2-billion contract to purchase 108 Close Combat Vehicles (CCVs) for the Canadian Army. The speculation in Ottawa is that the government has been urged by the army to cancel the deal to buy the armoured vehicles so that it can use the money to offset budget cuts. However, senior government officials confirm that the process is still alive and there have been no talks between the departments of Public Works and National Defence to cancel it.
The story also notes that the procurement process is currently about two years behind schedule.
