The Liberal government’s plan to accept bids for the navy’s future warships has been delayed because of a battle over the amount of Canadian content needed in the vessels and the decision to allow a British design that only exists on paper into the competition.
Bids were to be requested from companies in August.
But a government spokesman now says the request is expected to go out to companies sometime “in the fall” although no specific date was given.
The bid package, called a request for proposals or RFP, has gone through various drafts, the latest handed to industry representatives on Sunday for comments.
The new ships called Canadian Surface Combatants are estimated to cost more than $26 billion and will be the backbone of the Royal Canadian Navy’s future fleet.
The project has seen repeated delays with the navy at one time expecting the ships by 2015. The vessels are now planned for sometime in the early 2020s.
Procurement minister Judy Foote has said only designs from ships already in service or mature existing designs will be accepted because it means there will be less risk and vessels could be built faster.
But industry sources say the RFP has been delayed because of questions raised about the amount of Canadian content and the Liberal government’s decision to consider a British warship that has yet to be built.
Nicolas Boucher, spokesman for Public Services and Procurement Canada, said companies will have until Friday to provide their comments on the final RFP. “Once the industry feedback has been assessed and any resulting revisions made, the formal RFP will be released to the pre-qualified firms in fall 2016,” he stated.
Industry sources say the government is facing a dilemma as it wants to have the maximum amount of Canadian content on the ships but at the same time a proven, existing design.
Such designs already have on board systems functioning and suppliers selected. It becomes a challenge to take out existing working systems and replace them with Canadian ones.
Other company officials have questioned attempts by some government officials to change the bid package to allow the Type 26 ship from the British firm BAE. Under the previous rules outlined in the draft RFP, the ship design was to have been completed and reviewed by the government purchasing the vessel, in this case the United Kingdom.
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| An Artists rendering of a BAE Type-26 Global Combat Ship (GCS) |
Industry sources say that hasn’t been done.
The United Kingdom has so far balked at signing a deal for the Type 26. British defence secretary Michael Fallon said last month he won’t sign a contract for the ship until he is persuaded it’s in the best interests of UK taxpayers and will provide value for money.
The move to rewrite portions of the Canadian bid package to allow for the Type 26 have sparked concern among some competitors about whether bureaucrats favour the vessel even though it exists only on paper.
Boucher stated in an email that BAE has been pre-qualified as a warship designer. Bids will evaluated by Irving Shipbuilding Inc. and the government of Canada, he added. “Evaluation of the bids will include financial and technical performance, maturity of the design along with the economic benefits criteria,” Boucher noted in the email.
BAE official Anne Healey said the company can’t comment on the criteria used to outline the maturity of a ship design. “We are confident that we will be able to compete for the Canadian Surface Combatant and we are looking forward to competing in a fair and open competition,” she added.
“The Type 26 Global Combat Ship is the world’s newest and most advanced surface combatant design,” she added. “ We are planning to cut steel in 2017, which is ideal timing for the CSC programme; being 3 years ahead of the Canadian program.”
Sean Lewis, spokesman for Irving Shipbuilding, said in an email that the request for proposals is expected shortly after feedback is received from industry.
The United Kingdom has so far balked at signing a deal for the Type 26. British defence secretary Michael Fallon said last month he won’t sign a contract for the ship until he is persuaded it’s in the best interests of UK taxpayers and will provide value for money.
The move to rewrite portions of the Canadian bid package to allow for the Type 26 have sparked concern among some competitors about whether bureaucrats favour the vessel even though it exists only on paper.
Boucher stated in an email that BAE has been pre-qualified as a warship designer. Bids will evaluated by Irving Shipbuilding Inc. and the government of Canada, he added. “Evaluation of the bids will include financial and technical performance, maturity of the design along with the economic benefits criteria,” Boucher noted in the email.
BAE official Anne Healey said the company can’t comment on the criteria used to outline the maturity of a ship design. “We are confident that we will be able to compete for the Canadian Surface Combatant and we are looking forward to competing in a fair and open competition,” she added.
“The Type 26 Global Combat Ship is the world’s newest and most advanced surface combatant design,” she added. “ We are planning to cut steel in 2017, which is ideal timing for the CSC programme; being 3 years ahead of the Canadian program.”
Sean Lewis, spokesman for Irving Shipbuilding, said in an email that the request for proposals is expected shortly after feedback is received from industry.
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