Competitive process launched to select design of Canadian Surface Combatant
For Immediate Release
Request for Proposal issued to pre-qualified companies
October 27, 2016 — Gatineau, Que. — Government of Canada
Through the National Shipbuilding Strategy, the Government of Canada is creating new jobs, generating major economic benefits across the country, and providing the women and men of the Royal Canadian Navy with the equipment they need to do their work.
The Honourable Judy M. Foote, Minister of Public Services and Procurement, the Honourable Harjit S. Sajjan, Minister of National Defence, and the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, today announced that pre-qualified companies are invited to submit proposals for the design of Canada’s Canadian Surface Combatant (CSC) fleet. The Request for Proposal (RFP) for this key deliverable was released by Irving Shipbuilding Inc., the government’s prime contractor for this project.
As announced on June 13, 2016, the Government of Canada is moving forward with a streamlined procurement approach to select an existing warship design. The design team will work with the Government of Canada and Irving Shipbuilding Inc. to design and construct the CSC ships.
The Government of Canada and Irving Shipbuilding Inc. consulted extensively with industry to develop the RFP and will jointly evaluate the bids. The government set the specific requirements and evaluation criteria for the ship design based on the Royal Canadian Navy’s operational needs. The design is expected to be selected by summer 2017.
“The Honourable Judy M. FooteThe Canadian Surface Combatant is the largest and most complex procurement project in recent history. This Request for Proposal was carefully developed in consultation with industry and highlights how our government is implementing innovative and proven procurement approaches to simplify the competitive process, increase job stability, and deliver the ships we need, sooner. The CSC procurement approach will create middle-class jobs for Canadians and provide opportunities for companies in Canada to showcase their world-class technologies and position themselves for further growth in global markets.”
Minister of Public Services and Procurement
“The Honourable Harjit S. SajjanI am proud to be announcing this milestone in the Canadian Surface Combatant project, one of the most significant projects undertaken by the Government of Canada to date. This Request for Proposal brings us one step closer to being able to provide our brave women and men of the Royal Canadian Navy with the equipment they need to defend Canadian waters and make significant contributions to international naval operations.”
Minister of National Defence
“The Honourable Navdeep BainsThe Canadian Surface Combatant project will result in high-value work for Canadian firms over the life of this long-term procurement project, support the growth of a sustainable marine industry in Canada, and attract meaningful new investments to support the growth of other sectors of our economy.”
Minister of Innovation, Science and Economic Development
“Kevin McCoyDelivering the right Canadian Surface Combatant capabilities to the Royal Canadian Navy, on time and on budget, is a priority for Irving Shipbuilding. Our shipbuilders are hard at work building Canada’s future naval combatant fleet and we look forward to this next phase of the National Shipbuilding Strategy as we continue to grow Canada’s shipbuilding and marine industry, and strengthen the capacity of our men and women in uniform.”
President, Irving Shipbuilding Inc.
- The CSC project will replace Canada’s aging destroyers and frigates. Up to 15 ships are scheduled to be built after the Arctic and Offshore Patrol Ships are complete in the early 2020s.
- The CSC ships 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.
- The Industrial and Technological Benefits Policy will apply to this project, requiring the successful bidder to invest an amount in Canada equal to the totality of the value of the contract it is awarded. At least 10% of this obligation will involve work with Canadian small and medium-sized companies.
- The value proposition, containing the bidders’ commitments to invest in Canada, will be evaluated as part of the bid selection process. This will result in meaningful work for Canadian firms on the CSC, opportunities for Canadian suppliers beyond the CSC project, and investments in research, development and advanced manufacturing. It will also generate new export opportunities for Canadian firms.
- The CSC project, along with the Arctic and Offshore Patrol Ships project, will create 2,400 direct shipbuilding jobs in Halifax and many more thousands of jobs across the country through sub-contracting.
- The first CSC ship is anticipated to be delivered in the mid-2020s.
- Backgrounder: Streamlined procurement approach and release of Request for Proposal for Canadian Surface Combatant
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Office of the Honourable Judy M. Foote
Public Services and Procurement Canada
Office of the Minister of National Defence
Department of National Defence
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Streamlined procurement approach and release of Request for Proposal for Canadian Surface Combatant
On June 13, 2016, the Government of Canada announced a streamlined procurement approach for the Canadian Surface Combatant (CSC) to simplify the procurement process, to allow for construction to start sooner, and to deliver ships up to two years faster.
Following a review of the Royal Canadian Navy’s (RCN) requirements, the Government of Canada identified an opportunity to simplify procurement and design efforts while maintaining all project objectives.
The review, conducted during the summer and fall 2015, identified requirements that correspond more closely to existing warships than originally envisioned. 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 streamlined approach allows Canada to select and modify an existing warship design through a single competitive process.
Over the last few months, the government has engaged industry to ensure that the Request for Proposal (RFP) would meet the RCN’s requirements and be well understood by industry.
Irving Shipbuilding Inc., selected in 2015 as the government’s prime contractor for the CSC, released the RFP to pre-qualified bidders on October 27, 2016, to select a ship design and design team.
In summer 2017, after the bid evaluation and contract award, Irving Shipbuilding Inc. will start working with the selected subcontractor to modify the ship design. Once the design work has been completed, the government will award a contract to Irving Shipbuilding Inc. to build the ships. It is expected that the construction of the first CSC ship will begin in the early 2020s.
The Government of Canada is committed to growing the economy through shipbuilding by creating design, engineering and integration work for Canadians, increasing Canada’s existing capacity to produce the systems and equipment needed for ships, and generating high-quality investments in Canada's marine sector and other sectors of the economy. The bidders will be evaluated on price, technical considerations, and their value proposition, which contains commitments to perform high-value work in Canada.
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