Project Resolve: Shipbuilding Association Fires back at Irving

Originally Published by David Pugliese,

Now this statement was issued Monday by the Shipbuilding Association of Canada after Irving put out a statement that suggested it would have been in a position to build the interim supply ship:

In December 2014, Canada sought proposals for the provision of At-Sea Support Services. These were published on the government’s procurement portal, where the entire Canadian and international marine industry were invited to offer solutions to Canada’s urgent operational requirement for an interim Auxiliary Oiler Replenishment ship service.

Subsequently, the Royal Canadian Navy, the Department of National Defence, and Public Works and Government Services Canada issued a detailed set of requirements from which bidders would present their proposals. Multiple Canadian and international proposals were received. Following an extensive consultation period lasting for six months and subsequent evaluations by those departments, Canada selected the Davie proposal on its merits ahead of other domestic and international bids.

The Resolve-Class AOR design will provide a full replacement of the legacy Protecteur-class AORs. At a reported build cost of around $400m, the Resolve-Class AOR represents great value-for-money compared to a new ship at around $1.5bn. Davie’s pan-Canadian supply chain provides significant economic benefits for the entire shipbuilding industry, including Aecon Pictou, a first tier subcontractor who will build multiple sections of the ship in Nova Scotia.

This was a fair process open to all industry, which followed common sense and resulted in one of the most successful shipbuilding procurements for decades. It demonstrated that Canada is indeed able to fast-track programs when vital for national security. The urgency of the situation required the Department of National Defence and Public Works and Government Services Canada to react expeditiously, efficiently and fairly which they did during the six months of deliberations and evaluations prior to contract award.

The Shipbuilding Association of Canada is surprised and disappointed at claims emanating from certain shipyards – which claim to be at maximum capacity with their federal shipbuilding programs – that they could in some form contribute to the solution in a timely manner and which would not impact further their existing programs.

With claims of being at maximum capacity, Seaspan Ferries placed an order for two ferries for use in Canadian waters, to be built in Istanbul, Turkey. Similarly, Atlantic Towing – a JD Irving company – has recently resorted to building their own ships, for use in Canada, in Galati, Romania.

The association strongly recommends that the government do not delay the signing of the contract for this urgent operational requirement. It has been awarded fairly and with due process.

The association is encouraged by statements from the new government of Canada, late on Friday, that there would be no delay and a positive outcome is expected according to the relevant agreement.