Replacing Canadas aging naval eet, which has some vessels that are almost 40 years old, has

proved as challenging as turning a supertanker in a bathtub.

Canadas Halifax class frigates were built by Irving Shipbuilding Inc. HMCS Montreal (left), HMCS Charlottetown and HMCS Fredericton participate in a task group exercise in the Atlantic last November. (www.navy.forces.gc.ca)

The $33-billion National Shipbuilding Procurement Strategy, which led to the awarding of a $25-billion contract to Irving Shipbuilding and the Halifax Shipyard on Oct. 19, was the federal governments long-term response to a complicated and often politically sensitive process that had been anything but smooth sailing. The transparent, politically hands-off strategy, announced on June 3, 2010, was developed after industry bids for the construction of three navy supply ships announced by the government in 2006 came in well over their projected $2.9-billion budget. The imbroglio embarrassed the PROPOSED ARCTIC OFFSHORE PATROL SHIP navy, which had asked for more capabilities than are typically found on supply ships, and left federal vessel replacement plans in disarray. Before the procurement strategy was announced in 2010, (stx Canada Marine) Canada was the only NATO country without a shipbuilding plan. HMCS Iroquois, the navys 38-year-old destroyer, is among the oldest front-line warships in the western world. The new strategy was designed to involve two Canadian shipyards one to build large combat vessels and another to build non-combat vessels chosen after a comprehensive selection process monitored for The combat package includes fairness by independent consultants.

Summer 2010 Ottawa contracts

PROCUREMENT STRATEGY TIMELINE A step-by-step look at the largest naval procurement process since the Second World War:
Dec. 4, 2010 Third meeting with
short-listed shipyards to discuss next steps in procurement process, including terms and conditions of the request for proposals.

the Royal Canadian Navys Arctic offshore patrol ships and the Canadian surface combatants ships.

KPMG to provide advice on the strategys framework, Knowles Consulting Services Inc. and Hill International Inc. to monitor the fairness of the shipyard selection process, and First Marine International, a division of Haskoning UK Ltd., to assess each pre-quali ed shipyards capability and benchmark their performance.

June 14, 2011 Federal o June 23, 2011 Federal o

cials briefed representatives of the Quebec government. cials briefed representatives of the British Columbia government. Shipbuilding Procurement Strategy Secretariat received two requests from eligible bidders to extend the bid period for building large vessels from July 7, 2011 to Sept. 12, 2011. the bid period is denied. A two-week extension to July 21, 2011 is granted. change of bidder from 7731299 Canada Inc. (Davie Canada) is received prior to bid closing. The request for proposal bid submissions for the National Shipbuilding Procurement Strategy closes at 2 p.m.

The projected schedule for the combat vessel package, based on current projections and subject to negotiations with the federal government:
Negotiation of umbrella agreement (strategic sourcing arrangement) To be concluded by the end of 2011. Negotiation of Arctic o shore patrol ships contract To start in early 2012 and conclude by the end of 2012. Arctic o shore patrol ships design and engineering From 2012 to 2013. Arctic o shore patrol ships production (six vessels) From 2013 to 2020. Canadian surface combatants ships design and engineering From 2015 to 2018. Canadian surface combatants ships production (15 vessels) From 2018 to 2041. Construction of 116 small vessels worth an estimated $2 billion will be set aside for competitive procurement involving Canadian shipyards other than the yards selected to build large vessels. Regular maintenance and repair, valued at $500 million annually, will be open to all shipyards through normal procurement processes.
(Sources: Public Works and Government Services Canada and Irving Shipbuilding Inc.) (compiled by BRUCE ERSKINE / Sta reporter)

shipyards completed.

Dec. 15, 2010 Benchmarking of Jan. 7, 2011 Fourth meeting with

short-listed shipyards to discuss shipyard selection framework and evaluation methodology.

June 23, 2011 The National

solicitation of interest and quali cations.

Sept. 1, 2010 Release of draft Sept. 20, 2010 Release of

solicitation of interest and quali cations.

Oct. 8, 2010 Five shipyards are

short-listed to build large vessels: Irving Shipbuilding Inc. of Saint John, N.B.; Vancouver Shipyards Co. Ltd., North Vancouver, B.C.; Davie Yards Inc., Levis, Que.; Seaway Marine & Industrial Inc., St. Catharines, Ont.; and Kiewit O shore Services, Milton, Ont.

Jan. 27, 2011 Fifth meeting with short-listed shipyards to discuss updated shipyard selection framework and evaluation methodology Feb. 7, 2011 Request for proposals to
build large vessels released to ve short-listed shipyards.

June 30, 2011 The request to extend July 21, 2011 An application for a

short-listed shipyards. short-listed shipyards.

Oct. 12, 2010 First meeting with Oct. 13, 2010 Benchmarking of

Nov. 10, 2010 Second meeting with short-listed shipyards to review initial draft procurement documents and evaluation methodology.

March 9, 2011 Capability and benchmark performance reports are released to short-listed shipyards. One of the components used in the selection of the two shipyards chosen to build the large vessels, the reports will be used by shipyards to develop plans to upgrade their facilities and improve their shipbuilding practices. May 30, 2011 Federal o
cials briefed representatives of the Nova Scotia government on the procurement strategy.

July 27, 2011 A change of bidder

application received from 7731299 Canada Inc (Davie Canada) on July 21, prior to bid closing, is accepted. named winner of a $25-billion contract to build 21 combat vessels over 20 to 30 years.

Oct. 19, 2011 Irving Shipbuilding is

(MATT DEMPSEY / Herald graphics)