Navistar Defense LLC received its first Canadian military contract, to provide the Canadian Department of National Defense with Military Commercial off the Shelf vehicles.

The vehicles are the first element of Canada's Medium Support Vehicle System (MSVS) project, which will invest in medium-sized logistics trucks to support domestic operations and sustain deployed forces. The C$275 million ($231 million) award will provide up to 1,300 vehicles and will use the Canadian organization and dealer network of Navistar Canada for training, delivery, parts and maintenance support.

This award positions the company for future opportunities under MSVS such as the replacement of Standard Military Pattern (SMP) medium lift trucks and trailers. As part of the MSVS project, SMP replacement is estimated to be more than 1,500 units.

The MILCOTS order will allow the Canadian military to customize vehicle variants based off the International WorkStar platform. Optional upgrades and additional military components will let Canada further tailor its vehicles for domestic mission use. Under the multi-year contract, six vehicle variants will be provided including General Troop Transporters, ISO (International Organization for Standardization) container transporters, as well as additional equipment such as augers and cranes.

Navistar's Canadian dealer network includes 93 dealerships. Approximately 600 units of the MILCOTS order will be delivered during fiscal year 2009 with the remaining units to be delivered in fiscal year 2010.