Today brought a number of Simultaneous announcements about the Coast Guard.
The Prime Minister Announced in Vancouver an investment of $15.7B to renew the CCGS fleet, investing in up to 18 large ships to be built by Canadian shipyards. The Minister for Nova Scotia announced the 2 rumored AOPS for the Coast Guard at BIO. Those ships are to be built as fisheries patrol vessels. A role it is suited for
From the Release:
The Government of Canada is investing in two new Arctic and Offshore Patrol Ships, which will be adapted for the Coast Guard to perform tasks including offshore patrols. These ships will be built by Irving Shipbuilding in Halifax.
The Government of Canada is investing in up to 16 Multi-Purpose Vessels to support a variety of missions, including light icebreaking, environmental response, and offshore search and rescue. These ships will be built by Vancouver Shipyards.
The Government of Canada will also proceed through a competitive process with the design of a new class of smaller ships, the new Mid-Shore Multi-Mission Ship, which would complement the work of the large fleet in shallow areas and deliver mid-shore science activities.
Repairs, refits, and vessel life extension work will be carried out on the existing fleet until the new ships are delivered, with over $2 billion to be invested on a competitive basis for this purpose.In addition to funding for shipbuilding, the Government of Canada is also providing over $351 million to support ongoing Canadian Coast Guard capacity enhancements such as strengthening management oversight and promoting innovation and greener practices.
So besides the 2 AOPS – they are committing to Replacing the 1100 class. These ships are a big win for the Vancouver shipyard, but will take years to deliver given to volume of work that is needed now by the Coast Guard. Its unclear what the design of these vessels will be, though VARD has been commissioned to study this. the design is likely several years out.
the reference to the Midshore vessels is interesting, as that is a less well defined project, and there is no vessel count assigned to it. However the announcement also included the line
the Government of Canada intends to add a third Canadian shipyard as a partner under the NSS. The Government of Canada will move forward with a competitive process to select the third shipyard in the coming months.
Its unclear what work will be going to that yard, though the release does mention Coast Guard work and the midshore vessels are currently unassigned. these would be an odd fit, as there smaller size could be done by a smaller yard. Davie may end up with some of the sea span work. Though the release cites an open competition, it would be a huge shock if it wasen’t Davie.
Today marks 2 milestones in the AOPS Program. ISI rolled out the Bow Mega block around 4:30 Friday afternoon, where it will join the 2/3 of the the future HMCS Margaret Brooke which rolled out in September.
Also Friday morning, construction began on AOPS #4 – the future HMCS William Hall, with the first pieces being welded together.
It was also noticed that one of the Radars on HMCS Harry DeWolf was undergoing testing, and at least one generator on board the ship was operating.
The Federal minister of Defense is scheduled to make an announcement at the Halifax Shipyard today. That announcement will probably be an order for the 6th AOPS. the original contract was for up to 6 boats, with a firm commitment for 5 ships, with the 6th a possibility depending on budget and performance. Sagin will likely announce a firm order for that 6th boat, or possibly a firm 6th, and a maybe 7th under similar terms.
Yesterday the feds announced the winners of Halifax Class repair contract. worth 7 billion dollars, over the remaining life of the ships, the work went to Victoria Shipyards for the 5 west coast frigates, and will be split between Irving Shipyard and Davie in Quebec.
The concern the Navy has is that as the ships age, two will need to be drydocked at once, and halifax shipyard only has one dry dock. Hence the need to split the work.
Haliax Shipyard did have a second drydock – however they sold it to International Ship Repair of Tampa Florida.
the federal government issued a release identifying Lockheed Martin as the preferred design for the CSC. Canada’s Combat Ship Team – composed of Lockheed Martin, BAE Systems and CAE, MDA, L3 Technologies, and Ultra Electronics – submitted a proposal based on the British Type 26 Global Combat Ship. the British are currently building this ship, though it is not yet in service.
so much for a proven off the shelf design. I covered the 3 eligible bidders in a post earlier this year.
Anyway, the release says:
The Government of Canada and Irving Shipbuilding Inc. have identified Lockheed Martin Canada Inc. as the preferred bidder to provide the design and design team for the Royal Canadian Navy’s future Canadian Surface Combatants.
While this represents a significant milestone in the competitive process, more work is required before a contract is awarded.
Lockheed Martin Canada Inc. must now go through the “due diligence process,” which includes:
- negotiations with the company on intellectual property rights
- an assessment of combat systems performance
- an assessment of the company’s financial capability to deliver the project, together with the verification of various other administrative matters
Should the preferred bidder not successfully demonstrate to Canada and Irving Shipbuilding Inc. that it meets all of the due diligence requirements, then the next highest ranked compliant bidder will become the preferred bidder. The new preferred bidder will then have to successfully demonstrate that it meets all of the due diligence requirements.
The identification of the preferred bidder follows a rigorous bid evaluation process. This process has been, and will continue to be, overseen by an independent Fairness Monitor. To date, the Fairness Monitor has submitted a series of interim reports on the Canadian Surface Combatant procurement process, and each of these reports have not identified any fairness deficiencies.
More recently, the Fairness Monitor provided the following statement to Public Services and Procurement Canada:
“As the Fairness Monitor for the Canadian Surface Combatant project, we have monitored the evaluation of proposals submitted in response to the Request for Proposals and have identified no fairness deficiencies. It is our opinion that the evaluation of proposals was conducted in a fair manner. Decisions were made objectively and free from personal favouritism or improper influence, and the process encompassed the elements of openness, competitiveness, transparency and compliance with the Request for Proposals.”
A contract award is expected this winter, with construction beginning in the early 2020s.
The Canadian Surface Combatant project is the largest, most complex procurement ever undertaken by the Government of Canada. These ships will form the backbone of our Royal Canadian Navy and will be Canada’s major surface component of maritime combat power for decades to come.
The Government of Canada remains committed to being open and transparent at each stage of the procurement process.
This week in the Herald I talk about shifting contracts for Halifax Class Frigates, and how the Shipyards own actions in the past now seem to be shooting themselves in the foot.
I also talk about their prime competition – Davie in Quebec.