DAVID PUGLIESE, OTTAWA CITIZEN
DND officials warned that committing to a specific time to start cutting steel on the warships 'will add additional risk'
Irving Shipbuilding is pushing federal officials to announce a firm date to begin construction on Canada's new fleet of warships, arguing that will help drive the project along. But the company is facing resistance from federal officials concerned about missing a publicly announced start date, as happened with the Arctic patrol ships now under construction, according to documents released to Postmedia.
Federal officials have continued to say that construction of the Canadian Surface Combatant fleet would begin sometime in the early 2020s but no specific date had been set.
Irving representatives tried last year to convince federal bureaucrats of the need to set a specific date to begin construction. “(Irving) noted that hard dates is what drives the work,” according to the report from the Jan. 17, 2017 meeting of deputy ministers overseeing the national shipbuilding plan.
But the firm faced pushback from Department of National Defence officials.
“DND cautioned against setting a hard production date to work towards, noting the challenges this approach caused on AOPS,” the report noted. DND officials warned that committing to a specific time to start cutting steel on the warships “will add additional risk.”
The AOPS were announced in 2007 by then prime minister Stephen Harper and were supposed to be in the water by 2013. But construction didn't start until 2015. The first ship was launched on Sept. 15 and won't be operational until 2019.
Three consortiums have submitted bids for the surface combatant program and those are still being evaluated. The project will see 15 warships buiilt by Irving Shipbuilding in Halifax. A winning bid is expected to be selected sometime this year.
The ships will form the backbone of the future Royal Canadian Navy.
Scott Leslie, director general of large combat ship construction at Public Services and Procurement Canada, said that a more precise construction date can't be provided now because a winning design has yet to be selected.
“There are a lot of variables around it, one of the main ones being which design is chosen and how much work is required to get that design evolved and buildable at Irving Shipyards,” Leslie explained.
Irving is worried about the gap after building of the Arctic Offshore Patrol Ships but before construction of the surface combatants. If the two projects are not aligned, workers could face layoffs and Irving is worried it will lose skilled personnel.
The government has already faced delays and rising costs with the warships. In 2008, it estimated the total cost to be about $26 billion. But in 2015, then navy commander Vice Admiral Mark Norman voiced concern that taxpayers may not have been given all the information and predicted the cost alone for the ships would be around $30 billion.
Cost estimates for the entire project are now between $55 billion and $60 billion. About half is for systems and equipment on the 15 ships, according to federal documents obtained by Postmedia through the Access to Information law. “Approximately one-half of the CSC build cost is comprised of labour in the (Irving's) Halifax yard and materials,” the documents added.
Last year, Jean-Denis Fréchette, the Parliamentary Budget Officer, estimated the CSC program would cost $61.82 billion. He also warned that every year the awarding of the contract is delayed beyond 2018, taxpayers will spend an extra $3 billion, because of inflation.
The first ship will be delivered in the mid 2020s.
In November, in a surprise twist, a French-Italian consortium declined to formally submit a bid and instead offered Canada a fleet of vessels at around $30 billion. Officials with Fincantieri of Italy and Naval Group of France said they don't believe the procurement process as currently designed will be successful.
https://ottawacitizen.com/news/canada/federal-officials-dont-want-to-be-pinned-down-on-a-date-to-start-building-new-navy-documents-show/wcm/eaace91c-ece6-4a5a-b130-e1d96b7ff261
