Government will review towing vessel contract after procurement process questioned by trade tribunal

DAVID PUGLIESE, OTTAWA CITIZEN

The federal government will review a contract awarded last year for emergency towing vessels after the Canadian International Trade Tribunal raised questions about its procurement process.

In early January, the Canadian International Trade Tribunal recommended the government review the key performance requirements used in the procurement of two emergency towing vessels for the west coast from an Irving firm.

Heiltsuk Horizon, a partnership of majority partner Heiltsuk Nation of Bella Bella, British Columbia and Horizon Maritime Services Limited, a Canadian marine services company, complained to the CITT last August that the winning supplier did not meet important safety requirements of the tender process.

“We're confident with the new, state of the art vessels we've submitted, and we want to ensure the right emergency response vessels are in place to protect the vital coastal economies and fragile ecosystems of British Columbia's coast,” Chief Councillor Marilyn Slett of the Heiltsuk Nation said Thursday about the decision to review the contract.

At the time, the CITT recommended Public Services and Procurement Canada re-evaluate some of its mandatory requirements and that no further expenditure under the contact be undertaken. However, the tribunal also recommended that the contract remain with the winning bidder, Atlantic Services Limited/Atlantic Towing, until the evaluation can be completed.

In August, the federal government announced the firm had been awarded a three-year contract worth $67 million for the lease of two emergency offshore towing vessels that would operate in the waters off the coast of British Columbia. The vessels were to be capable of towing large commercial ships in distress, such as tankers and container ships, before they get too close to shore, according to the federal government.

As part of the contract, the firm, which is an Irving company, would also provide training in offshore emergency towing to Canadian Coast Guard personnel and partners, including Indigenous communities, involved in marine safety.

But Heiltsuk Horizon challenged that award, pointing out that the contract was awarded without the required proof the vessels met the mandated towing power. The firm noted that the procurement process was flawed.

In a letter to Heiltsuk Horizon, the CITT recommended Public Services and Procurement Canada reevaluate the “bollard pull” (towing power) of the vessels in all bids received. The CITT also awarded Heiltsuk Horizon costs incurred in submitting the complaint.

Mary Keith, vice president of communications for Irving, issued a statement at the time from Atlantic Towing, pointing out that the tribunal did not declare the firm's bid non-compliant. “This is good news and reaffirms the integrity of the rigorous and transparent award process by PWGSC that also involved a third party fairness monitor,” the statement added. “The Tribunal has requested verification of one item and we are confident in our full compliance. The Bollard Pull on our vessels are verified and certified by one of the world's leading marine certification companies.”

https://ottawacitizen.com/news/national/defence-watch/government-will-review-towing-vessel-contract-after-procurement-process-question