Back to news

November 28, 2018 | Local, Naval

Ottawa’s legal bill nearly $12 million for warship work

Andrea Gunn (agunn@herald.ca)

The federal government has spent $11.8 million on legal fees relating to the Canadian Surface Combatant project over the past two years, some of that owing to a large number of amendments to the project's request for proposals.

In an answer to a written question posed last month by a Calgary Conservative MP, Public Services and Procurement Canada confirmed that 88 amendments had been made between July 1, 2016, and Oct. 2, 2018 to the request for proposals for the massive, multibillion-dollar project that aims to replace the Royal Canadian Navy's fleet of frigates.

The request for proposals — the document that interested consortiums would have crafted their bids around — was released to 12 companies that had been pre-qualified to participate in the procurement by Irving Shipbuilding in October 2016. Irving is the prime contractor for the combat portion of the National Shipbuilding Strategy, which includes the Arctic Offshore Patrol Ships and the Canadian Surface Combatant, and is tasked with building the 15 warships at its Halifax shipyard. At a projected cost of between $56 and $60 billion, it's the largest and most complex procurement in Canadian history.

There were a number of delays in the closing date for the request for proposals. Originally set for April 2017, the first bids weren't received until last November. In its many technical briefings and media releases from that period, PSPC said the delays were partially as a result of the back-and-forth between industry, government and Irving — feedback which resulted in a number of amendments to the RFP.

“A total of 88 amendments were issued by Irving Shipbuilding between November 1, 2016 and August 13 2018,” the order paper question response reads.

“These amendments were developed and issued to address inquiries from the 12 pre-qualified bidders, and to incorporate process improvements to the competitive RFP so as to maximize the opportunities for bidders to demonstrate the value of their solutions to Canada.”

The response goes on to say the $11.8 million was spent by the government of Canada on project legal fees during the amendment period, but that PSPC is not able to provide a breakdown on how much was spent on the amendments themselves.

PSPC also noted that because Irving issued the RFP, they would have also incurred legal fees.

In the end, three firms submitted bids for the Canadian Surface Combatant and last month the federal government chose a consortium of Lockheed Martin Canada and BAE Systems offering the UK navy's Type 26 global combat ship as the preferred bidder.

Full article: https://www.thechronicleherald.ca/news/local/feds-legal-bill-nearly-12m-for-warship-work-261231/

On the same subject

  • Ottawa firm develops cutting-edge radar technology to defend North America

    April 10, 2023 | Local, C4ISR

    Ottawa firm develops cutting-edge radar technology to defend North America

    D-TA Systems Inc. has already briefed U.S. military officials twice about its over-the-horizon radar technology.

  • DND launches a call to innovative thinkers for solutions to COVID-19 challenges

    June 4, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

    DND launches a call to innovative thinkers for solutions to COVID-19 challenges

    As part of the Government of Canada's commitment to refocus existing innovation programs to support the fight against the spread of COVID-19, the Department of National Defence has announced the first of a series of calls for innovations aimed at addressing some key challenges Canada is facing. With an initial commitment of $15 million, the first three challenges focus on: Viable and effective processes and methods for safely and rapidly decontaminating enclosed work environments, such as buildings and modes of transportation, containing sensitive equipment; Innovative material and designs to aid in decontamination of Personal Protective Equipment (PPE), operational clothing, and equipment for personnel responding to events involving biological hazards; and Data gathering solutions to support the early detection and community-based monitoring of outbreaks of contagious diseases. These challenges were determined by multi-departmental panels led by the National Research Council of Canada as part of the COVID-19 Challenges Procurement Program. In addition to the call for innovation, these panels are engaging Canadian small- and medium-sized enterprises to refine their near-to-market products to meet a COVID-19 related need. Promising solutions in the areas of PPE, sanitization, diagnostics and testing, therapeutics, and disease-tracking technology may receive funding to further their solutions of interest. This effort is a collaboration with the National Research Council of Canada, Public Health Agency of Canada, and Health Canada and sees an additional investment of up to $10 million. Innovators are encouraged to consult the IDEaS program website (https://www.canada.ca/en/department-national-defence/programs/defence-ideas.html) for more information on the challenges and how to apply to the program. “These are unprecedented times. We need to leverage all great minds and innovators in our efforts to combat COVID-19,” said Defence Minister Harjit Singh Sajjan. “We will invest in Canadians as we look for innovative solutions to keep not only the women and men of the Canadian Armed Forces, but all Canadians safe.” – Quick facts Call for innovation – Challenges to Canadian innovators This initiative is being led by DND's Innovation for Defence Excellence and Security (IDEaS) program, with collaboration from the Centre for Security Science Program. The call will be open until June 23, with contracts expected to be awarded this summer. COVID-19 Challenges Procurement Program DND has provided subject matter experts in the areas of public safety and security, medical response, and biology/chemistry for these panels. http://www.lookoutnewspaper.com/dnd-launches-call-innovative-thinkers-solutions-covid-19-challenges/

  • Rescuing SAR in Canada - Skies Mag

    March 27, 2023 | Local, Aerospace

    Rescuing SAR in Canada - Skies Mag

    An in-depth analysis of the issues that plague the CC-295 Kingfisher and CH-149 Cormorant aircraft upgrade initiatives to date.

All news