Canada on Friday announced a $2.3 billion deal to General Dynamics [GD] for delivery of 360 new combat support Light Armored Vehicles (LAV). 

The sole-source contract to GD Land Systems-Canada, which is in the final stages of negotiations, also includes a $489.6 million loan from the Canadian government and covers infrastructure projects to house the new vehicles.

Canadian Forces Light Armored Vehicle (LAV) III. Photo: Canadian Army.

“The LAV is essential to the Army’s combat fleet, and supports our women and men in uniform on a range of operations including domestic disaster relief during the widespread flooding experienced in New Brunswick, Quebec and Ontario and overseas peace support missions,” the Canadian government said in a statement. “The LAV is a tested and proven platform that meets Canada’s Army needs. Having similar combat support vehicles in the Canadian Armed Forces fleet will offer a number of operational advantages, including reduced training and sustainment costs, as well as the availability of common spare parts to fix vehicles quickly during critical operations.”

Harjit S. Sajjan, Canda’s top defense official, called the LAV “backbone of the [Canadian] Army’s combat fleet.”

Canada’s current fleet of armored support vehicles includes the LAV II Bison and the M113 Tracked LAV.