Government announces streamlined procurement approach to accelerate delivery of Canadian Surface Combatant vessels

News Release

For Immediate Release

June 13, 2016 — Halifax, N.S. — Government of Canada

The Honourable Judy M. Foote, Minister of Public Services and Procurement, and the Honourable John McKay, Parliamentary Secretary to the Minister of National Defence, representing the Honourable Harjit S. Sajjan, Minister of National Defence, today announced a streamlined and transparent procurement approach to deliver the Canadian Surface Combatant to the Royal Canadian Navy up to two years sooner than originally planned.

The refined procurement approach will allow Canada to competitively and transparently select an existing warship design to modify, rather than continuing with the previous approach of selecting a Warship Designer and a Combat Systems Integrator to custom design the Canadian Surface Combatant.

The government used input from industry and Steve Brunton, its shipbuilding expert advisor, to develop the streamlined procurement approach. Canada will continue to work closely with the industry and remains committed to generating middle-class jobs, economic benefits and industrial growth for the country through the National Shipbuilding Strategy.

Quotes

The Canadian Surface Combatant project is the most complex procurement in Canadian history. Along with the Arctic Offshore Patrol Ships project, it will create 2,400 direct shipbuilding jobs in Halifax. We continue to seek opportunities to deliver ships as quickly as possible and to ensure that this and other ship construction projects provide middle-class jobs and prosperity to hardworking Canadians. This streamlined approach is aligned with our efforts to modernize procurement and to make it easier for Canadian businesses to work with government.

The Honourable Judy M. Foote
Minister of Public Services and Procurement

I am pleased to see the refinements announced today to the Canadian Surface Combatant procurement strategy. This new streamlined and transparent process will help deliver on the government’s commitment of providing the ships the Royal Canadian Navy needs to defend Canadian sovereignty, and will support economic growth in Canada.

The Honourable Harjit S. Sajjan
Minister of National Defence

Canada is a maritime nation and has the longest coastline of any country on earth. These new ships will ensure that the Royal Canadian Navy is ready to take on maritime challenges of the 21st century.

The Honourable John McKay
Parliamentary Secretary to the Minister of National Defence

Through the application of the Industrial and Technological Benefits Policy on the Canadian Surface Combatant project, the Government of Canada will leverage economic benefits by creating opportunities for Canadian content on the vessels while generating billions of dollars in high-value investments in marine and other sectors of Canada’s economy. These large investments will help to drive innovation and growth for years to come, while greatly strengthening our shipbuilding industry.

The Honourable Navdeep Bains
Minister of Innovation, Science and Economic Development

Quick Facts

  • The Canadian Surface Combatant project will replace Canada’s aging destroyers and frigates. Ship construction is scheduled to commence after the completion of the Arctic Offshore Patrol Ships in the early 2020s and the procurement is expected to span 20 to 25 years.
  • The Canadian Surface Combatants will be the major surface component of maritime combat power for Canada. The inherent warfare capability and versatility of the fleet, either independently or as part of a Canadian or coalition task group, will allow it to rapidly deploy worldwide on short notice.
  • As part of the government priority to modernize procurement practices, Public Services and Procurement Canada is streamlining its practices to make them faster and easier for government departments to buy, and for suppliers to sell.

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Contacts

Annie Trépanier
Office of the Honourable Judy M. Foote
819-997-5421

Media Relations
Public Services and Procurement Canada
819-420-5501

Jordan Owens
Press Secretary
Office of the Minister of National Defence
613-996-3100

Media Relations
Department of National Defence
Phone: 613-996-2353
Toll-free: 1-866-377-0811
Email: mlo-blm@forces.gc.ca

Media Relations
Innovation, Science and Economic Development Canada
343-291-1777
ic.mediarelations-mediasrelations.ic@canada.ca

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Background

Streamlined procurement approach for Canadian Surface Combatant

The Government of Canada recently endorsed a streamlined procurement approach for the Canadian Surface Combatant (CSC), simplifying the procurement process so construction can start sooner and can deliver ships up to two years faster.

This new approach stems from a review of the Royal Canadian Navy’s requirements that identified an opportunity to simplify procurement and design efforts, while maintaining all project objectives.

The review, conducted over summer and fall 2015, identified requirements that correspond more closely to existing warships. Rather than continuing with the previous approach, which consisted of selecting a Warship Designer and a Combat Systems Integrator to work together to custom design the CSC, the newly endorsed approach allows Canada to select and modify an existing warship design through a single competitive process.

A Request for Proposals to select a ship design will be released in summer 2016. While the opportunity for firms to pre-qualify will be reopened, the 12 firms that have already pre-qualified will not be required to reapply.

The government remains committed to leveraging economic benefits from shipbuilding by creating opportunities for Canadian content to be included in the vessels, while generating high-value investments in the marine and other sectors of Canada’s economy. The CSC procurement approach will create middle-class jobs for Canadians and opportunities for companies in Canada to showcase their world-class technologies and position themselves for further growth in global markets.

The National Shipbuilding Strategy’s long-term plan to renew the fleets of the Royal Canadian Navy and the Canadian Coast Guard is a priority for the government. Canada has selected two centres of excellence, Irving Shipbuilding in Halifax, Nova Scotia, to build its large combat vessels and Seaspan’s Vancouver Shipyards in Vancouver, British Columbia, to build its large non-combat vessels.

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