Title Publication Date Department News type Teaser Minister Blair announces $40 million to provide Ukraine with artillery ammunition at the 20th meeting of the Ukraine Defense Contact Group

On the same subject

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  January 9, 2019 | Local, Naval, Security

  Trade tribunal calls for review of west coast vessel contract

  DAVID PUGLIESE, OTTAWA CITIZEN The Canadian International Trade Tribunal is recommending a review of key performance requirements used in the procurement of two emergency towing vessels for the west coast. 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 in August that the winning supplier did not meet important safety requirements of the tender process. The CITT has 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 welcomed the CITT ruling. “From day one, we stated the procurement process was flawed,” Chief Councillor Marilyn Slett, Heiltsuk Nation, Bella Bella, BC, said in a statement Tuesday. In a letter to Heiltsuk Horizon, the CITT recommends 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. In a statement late Tuesday, Public Services and Procurement Canada noted it is currently reviewing the CITT's reasons and recommendations in order to determine its next steps. “The contract with Atlantic Towing remains in place,” it added. “Given the importance of the services provided by the Emergency Offshore Towing Vessels in the context of Canada's Oceans Protection Plan, these services will continue. It is important to note that one of the two vessels has already been used in an emergency situation.” Mary Keith, vice president of communications for Irving, issued a statement 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/trade-tribunal-calls-for-review-of-west-coast-vessel-contract

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  November 5, 2024 | Local, Security

  Trade, defence spending top of mind for government on U.S. election day

  “Rest assured, this government is going to be able to address issues that are important to Canadians, notwithstanding who the American people decide,” said Foreign Affairs Minister Melanie Joly ahead of the weekly cabinet meeting.

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  January 18, 2019 | Local, Naval

  Overcoming ‘Boom and Bust’? Analyzing National Shipbuilding Plans in Canada and Australia

  by Jeffrey F. Collins CGAI Fellow Executive Summary While both Canada and Australia share similar constitutional frameworks and imperial histories, they are also no stranger to procurement challenges. Cost overruns, delays, regionalism, and protracted intellectual property disputes have all been part of major defence acquisition projects in recent decades. This Policy Paper analyzes the largest and most expensive procurement projects undertaken by either country, Canada's $73 billion (estimated) National Shipbuilding Strategy (NSS), launched in 2010, and Australia's A$90 billion Naval Shipbuilding Plan (NSP), launched in 2017. Each project represents an attempt to implement a rational, multi-decade approach to naval acquisition. Driven by a desire to overcome previous boom-and-bust cycles, the NSS and NSP aim to create a sustainable shipbuilding sector capable of meeting the immediate and future naval demands of Ottawa and Canberra. Neither country has attempted a shipbuilding plan on this scale before. The NSS and NSP are still in their early stages but some common themes have emerged. On implementation challenges, old problems persist. For one, the rational approach to naval shipbuilding is not devoid of procurement politics and regionalism. Determining which province or state will be home to billions in contracts over many years remains a zero-sum game no matter how arms-length the process of yard selection. Cost increases also remain a reality. Building domestically can carry a 30 per cent to 40 per cent premium. Project delays increase this premium, something Canada has already experienced when initial NSS acquisition costs, pegged at $37.7 billion nearly a decade ago, jumped to an estimated $73 billion today. Australia's delays in securing an agreement with France's Naval Group on its $A50 billion future submarine project could mean additional cost increases. In this context, schedule is king and avoiding cost increases requires keeping to planned shipbuilding schedules. Failure to do so opens production gaps and necessitates going with alternative options including building overseas (Australia) or converting commercial vessels for naval and coast guard use (Canada). Prolonged cost sensitivities raise the consideration of trade-offs on committing more money to continuous shipbuilding at the expense of acquiring other military capabilities. Canada, for instance, will need to make decisions at some point on whether to spend billions on replacing the North Warning System in the country's North. Australia will have to grapple with an Indo-Pacific region proliferating with relatively cheaper but lethal anti-ship missiles. In this context, money spent on surface combatants may be perhaps better spent on other capabilities. None of this is to say that progress has not occurred in either the NSS or NSP. Ships are getting built, including Arctic Offshore Patrol Ships in Canada, and Offshore Patrol Vessels in Australia. In 2018, both countries selected the British Type-26 as their preferred design for a new generation of surface combatants. It is very possible that these respective strategies will achieve their goals of bypassing the boom-and-bust eras, but ongoing challenges serve as a reminder that even with the best-laid plans, naval shipbuilding is a complicated affair. 1 https://www.cgai.ca/overcoming_boom_and_bust_analyzing_national_shipbuilding_plans_in_canada_and_australia