28 janvier 2019 | Local, Naval
By David Akin
A Quebec shipyard hopeful of getting more federal work has condemned a storied Coast Guard ship as beyond repair, declining to bid on a lucrative contract to overhaul the 56-year-old CCGS Hudson on the grounds that it “presents a serious and real threat to the safety of life at sea.”
In a letter delivered Tuesday to officials with Public Services and Procurement Canada, Davie CEO Jared Newcombe said his company, based in Lévis, Que., would not bid on the contract to upgrade the Hudson as Davie believes the vessel to be beyond repair. A copy of that letter was provided to Global News.
The federal government was trying to squeeze another few years of service out of the Hudson which, having been commissioned in 1963, is the oldest ship in the Coast Guard's fleet. Bidding on the life-extension contract, expected to be worth about $20 million, ended this week.
It is the latest headache to bedevil a federal shipbuilding process that has been rife with delays. Davie's remarkable letter — procurement experts cannot recall a bidder ever recommending scrapping a major vessel when offered a chance to upgrade it — underscores the difficulties successive federal governments have had in updating an aging Coast Guard and Royal Canadian Navy fleet.
“The Coast Guard ships are in serious need of replacement now,” said David Perry, a defence procurement expert and senior analyst at the Ottawa-based think tank, the Canadian Global Affairs Institute. The average service of a Coast Guard ship is about 36 years. Canada's Maritime peers typically replace their Coast Guard vessels within 30 years of service.
The Harper government announced in 2007 that the Hudson was to be replaced by 2012 and the contract to replace her was awarded to Vancouver's Seaspan shipyard. But that project is mired in delays and it is not clear when there will be a replacement. There is not yet a confirmed date for construction to start while the projected budget of $331 million to build the Hudson's replacement is under review.
The Hudson did have a $4-million refit in Hamilton, Ont., in 2016, and has had more work done on it since it returned to its East Coast port in Dartmouth, N.S., in 2017.
But Davie told the government that, in its view, the Hudson has now reached the end of the line.
“The level of degradation to the hull, fuel tanks, onboard systems and other structural elements presents a serious and real threat to the safety of life at sea as well as the environment,” Newcombe wrote. Newcombe said his company had to consider its own liability should it have won the current life extension contract, “as well as ethical, repetitional and environmental considerations.”
Full article: https://globalnews.ca/news/4884924/coast-guard-ship-cant-be-fixed-canada-shipbuilding-problem/
6 juillet 2021 | Local, Aérospatial, Sécurité
A plan to modernize the Canadian military's search and rescue helicopters is on hold after the proposal received from the aircraft's manufacturer was deemed to'¦
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.
31 mai 2019 | Local, Aérospatial
by Ken Pole Shortly before Defence Minister Harjit Sajjan announced on May 29 that a formal request for proposals (RFP) to supply 88 new Canadian fighter jets would be delayed again — this time to mid-July — two potential contenders said that a proposal to scrap the customary industrial benefits element of the procurement is problematic. Jim Barnes, director of Business Development in Canada for Boeing Defense, Space & Security and Roger Schallom, the company's St. Louis-based vice-president of International Business Development, along with Patrick Palmer, vice-president and head of Sales at Saab Canada Inc., expressed their common concern during briefings at CANSEC, the annual Ottawa trade show organized by the Canadian Association of Defence and Security Industries (CADSI). Boeing's contender to replace the RCAF's legacy fleet of CF-188 Hornets is the F/A-18 Super Hornet, while Saab's is the JAS 39 Gripen (the company had a full-scale replica parked front-and-centre outside CANSEC's main entrance). The other contenders are Lockheed Martin's F-35 Lightning II Joint Strike Fighter (JSF) and Airbus Military's Eurofighter Typhoon. Barring any further hiccups in a program fraught with political indecision and already years behind the original schedule, the RFP process overseen by Public Services and Procurement Canada (PSPC) is expected to lead to two finalists being chosen next year with a view to making a final selection in 2022. The government had been expected to issue its RFP by May 31 after years of indecision, but that latest deadline in the troubled procurement was postponed as officials at DND, PSPC and Innovation, Science and Economic Development Canada review the industrial benefits element. “This is proof that your feedback is heard and acted upon,” Sajjan told the CANSEC audience. The proposed industrial benefits change was disclosed earlier this month by Richard Shimooka, a senior fellow at the Macdonald-Laurier Institute (MLI), an Ottawa-based think tank. He said in a report published by the MLI (May 6) that the Canadian government was yielding to pressure from the United States by changing the long-established requirement that companies bidding for contracts agree to investing an equivalent amount in Canada. The fighter procurement, including in-service support, is expected to cost at least $18 billion. Shimooka cited letters from U.S. officials that indicate “resentment and distrust towards the government of Canada had grown, particularly within the U.S. Air Force.” The letters evidently focused on the “significant strategic and economic benefits that have already been accrued from being part of the JSF program.” However, he added, the letters also contained “an implicit (but clear) threat that Canada could be kicked out of the program if Ottawa continues with its current policy of trying to obtain guaranteed industrial benefits that, by their very nature, are not allowed under the JSF Program. . . . There was a complete lack of logic of Canada's policy, which seemed to ignore basic facts about membership in the JSF program, including clear advantages in cost and capability that the F-35 provided.” In his CANSEC briefing, Barnes admitted to having been “surprised by the recommended changes” in the shift in the long-standing requirement. “That policy's been in place for decades and it's been very successful for Canadian industry,” he replied, questioning what he called the government's decision to “accommodate a competitor.” Schallom added that adhering to the historic requirement for direct industrial offsets, rather than simply offering “non-binding” bidding opportunities on future contracts, would be better for Canada's economy over the expected 30 years or more of the new fighter program. “You're probably missing out on $30 billion-plus in guaranteed work.” Saab's Palmer echoed that position 30 minutes later, saying that he is concerned that the “non-binding requirement may not necessarily give Canadians the best value over the long term,” but, “until we see the final RFP (request for proposals), I'll reserve final judgment.” However, when asked how Saab had responded formally to the proposed change on industrial benefits, he said, “We've asked them for some more information as it relates to the specifics of how items are going to be measured,” but had “definitely indicated that it doesn't necessarily encourage the best solution for Canada at the end of the day.” https://www.skiesmag.com/news/fighter-rfp-delayed-again-pending-official-review-of-industrial-benefits-policy