Canadian government in court to challenge ruling it bungled $830-million Mack army truck purchase

[kscarbel2]

National Post  /  September 24, 2017

Last year the Canadian International Trade Tribunal ruled that the process, which awarded the truck contact to Mack Defense of the U.S., was flawed

The Canadian government has gone to court to overturn a trade tribunal ruling that it bungled the $830-million purchase of new trucks for the military.

Last year the Canadian International Trade Tribunal (CITT) ruled that the process, which awarded the truck contact to Mack Defense of the U.S., was flawed.

The CITT found in favor of Mack’s rival, Oshkosh, and called on Public Services and Procurement Canada to conduct a new evaluation of the trucks to be bought for the Canadian Forces.

The ruling was yet another blow to the program, which had been trying new trucks since 2006.

But instead of complying, the federal government has decided to challenge the CITT decision.

Public Services and Procurement Canada declined comment as the matter is before the Federal Court of Appeal. “The contracts with Mack Defense LLC have not been cancelled and the project is moving forward as planned,” department spokesman Nicolas Boucher stated in an email.

Department of National Defence spokeswoman Jessica Lamirande said the first delivery of the trucks is expected sometime in late fall. The final delivery is expected in mid-2019, she added.

The Conservative government announced in 2015 that [shell company] Mack Defense had won the $834-million contract to provide 1,500 trucks [re-badged Renault Kerax 8x8 trucks].

Oshkosh then challenged the award before the CITT, arguing that there were significant errors in the evaluation of the vehicles.

The CITT, which reports to Parliament, provides Canadian and international firms with a process to investigate complaints against federal government procurement. At the time of the CITT ruling, Oshkosh issued a statement that while it was “disappointed in the significant errors found in the conduct of the evaluation process, we look forward to a fair and timely implementation of the Tribunal’s recommendations.”  

The company has declined to comment on the federal government’s appeal of the CITT findings.

But industry representatives point out that if the federal government loses its court case, it will likely have to pay significant penalties to Oshkosh since the trucks being provided by Mack will have already been delivered.

Mack Defense, of Allentown, Pa., has been awarded two contracts to provide standard military pattern trucks and related equipment for the Canadian Forces. Assembly will take place in a Sainte-Claire, Que., plant operated by [Volvo Group bus subsidiary] Prevost, one of the firms partnered with Mack.

The project to replace 1980s-era military transport trucks was originally announced in 2006 by then Conservative defence minister Gordon O’Connor. It was considered a priority because the vehicles they were to replace had become a safety hazard, with faulty brakes and excessive rust.

But the truck program has been plagued by problems and missteps by the DND.

At one point the Conservative government stopped the procurement process entirely after DND tried to spend hundreds of millions of dollars without permission.

The department had received government approval to move forward with a $430-million purchase of 1,500 trucks. But in subsequent years, department and military officials began adding more capabilities to what they wanted in the vehicles, bumping the estimated cost to more than $800 million.

And in an unprecedented move, DND officials continued on with the acquisition without getting government approval to cover the extra hundreds of millions of dollars.

When Treasury Board and Conservative government officials discovered in 2012 what was happening, they intervened, shutting down the project, just minutes before bidding was to close.

It was restarted in 2013.

In addition, the Ottawa Citizen reported that in 2008 and 2009, infighting between army and DND officials over the requirements for the trucks led to further delays. At the time, the DND issued an email statement: “The project is not in trouble.”

Related reading - https://www.bigmacktrucks.com/topic/40960-volvo-group’s-mack-defense-unit-to-supply-1500-re-badged-renault-kerax-8x8-trucks-to-canadian-armed-forces/?tab=comments#comment-296894

http://www.renault-trucks-defense.eu/Defense/KERAX/KERAX-8x8

[HeavyGunner]

So what part of these $550k trucks does Mack build?  Why didn't Renault just go for the bid instead of letting Mack rebadge their trucks?  Interesting to see we aren't the only country that spends out of control with no regard to who the represent or answer to. 

[kscarbel2]

1 hour ago, HeavyGunner said:

So what part of these $550k trucks does Mack build?  Why didn't Renault just go for the bid instead of letting Mack rebadge their trucks?  Interesting to see we aren't the only country that spends out of control with no regard to who the represent or answer to. 

The Mack brand's involvement in manufacturing now only includes Macungie, and that facility has no involvement with this matter.

The Renault Kerax 8x8s are sent over in KD (knocked down) form from Renault in France, and assembled at Volvo's Prevost coach plant in Canada.......with a Mack emblem.

Mack Defense was set up as a shell company to sell to the US military, as foreign truckmakers have little chance of getting orders. Renault Trucks Defense builds a great truck, but the US and Canada should buy North American trucks. Oshkosh units are every bit as good.

[james j neiweem]

Go Oshkosh. Is Mack defense all done?

[fjh]

We have no more beaver pelts to trade so we have to go with the absolute cheapest thing possible ! 

[kscarbel2]

Hurting for cash, Volvo is selling its military business which goes under the low key name Government Sales.

The business unit includes Acmat, Mack Defense, Panhard, Renault Trucks Defense and Volvo Defense .

https://www.bigmacktrucks.com/topic/47595-volvo-gets-rid-of-the-arms-merchants/

 

[mrsmackpaul]

bugger me this whole thing appears a joke from the outside, but it is good to see that this style of constant cock ups arent restricted just the Australian government ! It appears governments the world over are pretty good at making a absolute mess of the simplest of things

lucky for us they dont do anything important other than running our respective countries 

Paul