Defence and Marine Procurement—General Accomplishments

Context

Suggested responses and background information is provided on defence and marine procurement accomplishments.

Suggested responses

• Canada’s Defence Policy: Strong, Secure, Engaged, reaffirms the Government’s commitment to ensure that Canada has an agile, multi-purpose military and that members of the Canadian Armed Forces are well equipped. . We are delivering on this commitment
• Over the last 18 months, significant progress has been achieved on major defence and marine procurement projects and activities. This includes:
  • In February 2019, through our National Shipbuilding Strategy, the Government of Canada selected Lockheed Martin Canada for the design of 15 new Canadian Surface Combatants that will be built at Irving Shipbuilding’s Halifax Shipyard
  • In May 2019, we announced a $15.7 billion investment to renew the Canadian Coast Guard fleet, which will include 16 multi-purpose vessels and two Arctic Offshore Patrol Ships
  • In June 2019, the first Offshore Fisheries Science Vessel, the CCGS Sir John Franklin, was delivered to the Canadian Coast Guard, marking the first delivery of a large ship under the National Shipbuilding Strategy
  • In summer 2019, contracts worth a combined total of $1.5 billion were awarded to Chantier Davie, Seaspan’s Victoria Shipyards and Irving Shipbuilding for the maintenance and engineering work on the 12 Halifax-class frigates until the replacement Canadian Surface Combatant ships are delivered
  • In addition, we also launched a process to select a third shipyard under the National Shipbuilding Strategy. The selected shipyard will build six new program icebreakers for the Canadian Coast Guard
  • In July 2019, we released the formal Request for Proposals for the future fighter jet procurement process, after working with eligible suppliers on its development.
  • In September 2019, we awarded a contract to acquire up to 360 armoured combat support vehicles that will integrate with and support the existing platform currently in use by the Canadian Armed Forces

Background

Major progress on defence and marine procurements over the last 18-months include:

Design selection for Canadian Surface Combatant

• The Canadian Surface Combatant project is the largest, most complex procurement undertaken by the Government of Canada, with a total estimated project budget of $56 billion to $60 billion
• In February 2019, the Government of Canada and Irving Shipbuilding Inc. selected Lockheed Martin Canada for the design of 15 new Canadian Surface Combatants that will be built at Irving Shipbuilding’s Halifax Shipyard. The Canadian Surface Combatant (CSC) design will be an evolution of the United Kingdom Type 26 Global Combat Ship
• The Government of Australia has also selected the Type 26 design as the basis for its Hunter class warships
• In early November 2019, Irving Shipbuilding Inc. and Lockheed Martin Canada were authorized to progress to the Preliminary Design phase of the design process. Preliminary Design is the second of the four design phases

Acquisition of 360 light armoured vehicles

• On August 16, 2019, in support of Canada’s defence policy Strong, Secure, Engaged, the Government of Canada announced its intention to acquire up to 360 armoured combat support vehicles (ACSVs) and that it was in the advanced stages of negotiating a contract, through a non-competitive process.
• On September 5, 2019, PSPC, on behalf of National Defence, awarded a contract to with General Dynamics Land Systems—Canada (GDLS-C) valued at approximately $2 billion for 360 ACSVs, initial spare parts, technical manuals, and training.

Release of the request for proposals for the Future Fighter Capability Project

• This procurement is a once in a generation opportunity to support the growth of Canada’s aerospace and defence industries for decades to come
• The Government has delivered on its promise to launch an open and transparent competition to replace Canada’s fighter fleet and continues to make progress on its purchase of 88 advanced jets
• On July 23, 2019, Public Services and Procurement Canada (PSPC) released the formal Request for Proposals to eligible suppliers. Suppliers have until early 2020 to submit their initial proposals.
• A contract award is anticipated in early 2022, and the first replacement aircraft delivered as early as 2025

Two Transport Canada ferries to be built at Chantier Davie

• On June 19, 2019, the Government of Canada announced that we are entering into contract negotiations with Chantier Davie of Lévis, Quebec, for the construction of two new ferries for Transport Canada
• This follows an Advance Contract Award Notice (ACAN) issued on May 22, 2019, signaling the Government of Canada’s intention to enter into a contract with Chantier Davie for the construction of the ferries. Other interested suppliers had 15 calendar days to submit a Statement of Capabilities to show they met the requirements laid out in the ACAN. None were submitted
• The contract value and construction timelines will be determined once negotiations with the shipyard are completed

Invitation to qualify for a third Canadian shipyard under the National Shipbuilding Strategy to build 6 program icebreakers for the Canadian Coast Guard

• In order to respond to evolving federal shipbuilding requirements, PSPC is carrying out a process to select a third partner shipyard under the NSS. This includes keeping an open dialogue with interested suppliers and listening to their feedback during solicitations
• The ITQ closed on August 30, 2019, and we are currently evaluating the two responses that were received. Shipyards that pre-qualify through the ITQ will be invited to participate in the Request for Proposals (RFP) and evaluation stage
• We expect to have an umbrella agreement in place with a third shipyard in 2020

16 multi-purpose vessels for the Canadian Coast Guard to be built at Vancouver Shipyards

• On May 22, 2019, the Government of Canada announced a $15.7 billion investment to renew the Canadian Coast Guard fleet, in order to ensure capacity to deliver important services for Canadians. This includes building up to 16 Multi-Purpose Vessels (MPVs)
• The expected start of construction of the MPVs is in the mid-2020’s, following the completion of the second JSS. Delivery dates will be identified as construction contracts are awarded
• A run of 16 vessels will provide an opportunity for VSY to generate efficiencies and economies of scale, as well as ensure greater workforce stability and minimize gaps in production

Sixth arctic and offshore patrol ship for the navy and a seventh and eighth arctic offshore patrol ship for the Coast Guard

• On November 8, 2018, the Government of Canada announced that the Royal Canadian Navy will receive a sixth Arctic Offshore Patrol Ship (AOPS), which will help sustain hundreds of highly-skilled middle class jobs at Irving Shipbuilding and mitigate the production gap between the AOPS and the Canadian Surface Combatant
• On May 22, 2019, the Government of Canada announced a $15.7 billion investment to renew the Canadian Coast Guard fleet, in order to ensure capacity to deliver important services for Canadians. This include building 2 AOPS customized for the Canadian Coast Guard needs
• The two new AOPS (7&8), which will be built by Irving Shipbuilding will be adapted for the Coast Guard to perform a range of critical missions, including Northwest Atlantic Fisheries Organization patrols

Resequencing of the non-combat package

• The Government of Canada has made a decision to re-sequence construction of the Joint Support Ships (JSS) and Offshore Oceanographic Science Vessel (OOSV) at Seaspan’s Vancouver Shipyards
• Under the revised sequencing, Seaspan will complete construction on JSS 1, followed by the OOSV and then JSS 2. This will allow for uninterrupted transition from early block construction to full production on JSS 1. Additional details on project schedules will be provided in the coming months
• Given the complexity of this build, this change in sequencing will ensure focused engineering resources on each of the projects, while allowing for time between construction of the first and second JSS to incorporate lessons learned. Moreover, this allows for uninterrupted work at the shipyard, mitigating the risk of potential layoffs and production gaps between builds. This decision makes good sense, and is a prime example of how the NSS allows us to be flexible in meeting Royal Canadian Navy and Canadian Coast Guard requirements, while finding efficiencies at shipyards

Acquisition and conversion of 3 medium icebreakers for the Canadian Coast Guard

• On December 14, 2018, the Canadian Coast Guard accepted into service the first of the three medium icebreakers being refit by Chantier Davie, the CCGS Molly Kool
• The second and third vessels will be in service by winter 2019 to 2020 and summer 2020 respectively. The names of the second and third icebreakers were announced on April 30, 2019: the CCGS Jean Goodwill and the CCGS Vincent Massey

Invitation to qualify for the Future Aircrew Training Program

• Through an open and transparent competition, the Government of Canada is taking the necessary steps to renew its existing aircrew training services
• In December 2018, Canada established a list of Qualified Suppliers that demonstrated their ability to meet Canada’s needs, as defined in the Invitation to Qualify
• Only the eligible suppliers will be invited to participate in the next phases of engagement and to submit proposals in the competition

Invitation to qualify for the Victoria-class In-Service Support Contract II

• Through an open and transparent competition, the Government of Canada is renewing the in-service support (ISS) contract for the Royal Canadian Navy’s Victoria Class submarine fleet
• Canada has a fleet of 4 submarines that were purchased, used, from the UK in the early 2000’s
• The ITQ closed on October 31, 2019 and we are beginning the process to evaluate the responses received. Successful ITQ respondents will be part of the industry consultation group that will lead to the finalization of the RFP
• Babcock Canada Inc. is the current prime contractor and the current contract may continue until June 2023, if all option years are exercised. Victoria Shipyards Limited of Victoria, B.C. is one of the principal subcontractors to Babcock

Invitation to qualify for Remotely Piloted Aircraft Systems

• Through an open and transparent competition, the Government of Canada is taking the necessary steps to procure an armed Medium Altitude Long Endurance Remotely Piloted Aircraft System (RPAS)
• This new capability will provide intelligence, surveillance, target acquisition, reconnaissance and precision strike capabilities to the Canadian Armed Forces in support of operations domestically and abroad
• In May 2019, Canada established a list of Qualified Suppliers that demonstrated their ability to meet Canada’s needs, as defined in the Invitation to Qualify
• Industry engagement will continue until summer 2021 to refine the requirements
• A draft RFP is expected in summer 2020
• The formal RFP is expected in spring 2021

Invitation to qualify for Logistics Vehicle Modernization Project

• Through an open and transparent competition, the Government of Canada is taking the necessary steps to revitalize and replace Canada’s light and heavy logistics vehicle capabilities
• In July 2019, Canada established a list of Qualified Suppliers that demonstrated their ability to meet Canada’s needs, as defined in the Invitation to Qualify
• Industry engagement will continue until spring or summer 2021 to refine the requirements
• A draft RFP is expected in spring or summer 2020
• The formal RFP is expected in spring or summer 2021

Delivery of the first offshore fisheries science vessel

• Three Offshore Fisheries Science Vessels (OFSV) are being built by Seaspan’s Vancouver Shipyards (VSY) under the National Shipbuilding Strategy
• The first OFSV, the CCGS Sir John Franklin, was delivered on June 27, 2019. The second vessel was launched on June 5, 2019 and is expected to be delivered in late 2019. Delivery of the third vessel is expected in 2020

Halifax-class frigates work period contracts awarded

• The Royal Canadian Navy currently operates 12 Halifax-class ships: seven ships are assigned to Maritime Forces Atlantic and five are assigned to Maritime Forces Pacific. The Navy intends to continue operating these ships for approximately another two decades, until the Canadian Surface Combatants are delivered
• In 2016, a Request for Information was issued regarding a forthcoming requirement for maintenance services for the Navy’s Halifax-class frigates. Extensive industry engagements, along with market survey processes, identified three Canadian shipyards capable of performing the level of maintenance services needed to support the frigates through to the end of life
• As a result, Advance Contract Award Notices were issued to Irving Shipbuilding, Chantier Davie, and Seaspan’s Victoria Shipyards in November 2018
• In July 2019, two contracts totalling $1 billion were awarded to Victoria Shipyards and Chantier Davie. In August 2019, a $500-million contract was awarded to Irving Shipbuilding
• Work is planned to begin in the early 2020s and the contracts are expected to rise in value as additional work packages are added

Date modified:

2023-05-10