A Canadian Army procurement project worth up to $1 billion has run into serious technical problems and could be facing cancellation.

The program to develop and build the Light Armoured Vehicle Reconnaissance Surveillance System or LRSS has been underway for more than a decade.

Defence industry sources have warned that the problems affecting the new vehicle fleet could be insurmountable and the end result might be a cancellation of the project.

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The Department of National Defence did not respond to questions about whether the LRSS project will be cancelled. But it did confirm the information provided to the Ottawa Citizen that the LRSS, built by General Dynamics Land Systems – Canada (GDLS-C), is facing significant problems.

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