24 septembre 2018 | Local, Naval
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.
25 août 2022 | Local, Aérospatial, Naval, Terrestre, C4ISR
Today, Defence Minister Anita Anand and General Wayne Eyre, Chief of the Defence Staff (CDS), visited 5 Wing Goose Bay in Newfoundland and Labrador, where they met with members of the Canadian Armed Forces stationed at the base, and thanked them for their important work and dedication to protecting Canada.
17 avril 2024 | Local, Terrestre
The new federal budget sets aside $2.72 billion in loans and donations for Ukraine in the current fiscal year, most of which is aimed at helping President Volodymyr Zelenskyy's government keep the embattled country’s finances afloat. And a lot of that money is already out the door.
28 novembre 2018 | Local, Naval
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/