The Canadian Department of National Defence (DND) has cancelled a plan to purchase armoured vehicles for the Canadian Special Operations Forces Command (CANSOFCOM).
Under the $60m domestic and arctic mobility enhancement (DAME) project, the DND planned to purchase 17 marginal terrain vehicles (MTVs) for use in the Arctic region. The agreement also included an option to buy five more at a later date.
Canadian Department of National Defence spokesperson Dan Blouin was quoted by the Ottawa Citizen as saying: "After a thorough examination of the MTV's capabilities and limitations, training requirements, acquisition and sustainment costs, it was determined that it is not an essential requirement for CANSOFCOM.
"As a result, it was decided to no longer pursue this procurement."
Blouin also added that the department will consider other alternatives to the MTV. However, unidentified industry sources said funding issues were behind the department's decision to cancel the project.
The companies were scheduled to submit proposals in August, while MTV deliveries had been planned for 2016.
Operating in snow and desert terrain, the MTVs were expected to protect soldiers from explosive devices and gunfire.
Canada was planning to use the vehicles to fill the vacuum created by the absence of in-service armour vehicles that are capable of operating in extreme global environments, ranging from the Arctic to Arid regions.
The CANSOFCOM is currently using a small fleet of BV-206 vehicles purchased from BAE Haggulands in the 1980s for northern operations.
Command purchase plans include the acquisition of a fleet of multi-role vehicles at a cost of $100m to $249m.
However, a contract for the project will not be awarded until 2018, according to the government's defence acquisition guide.