Some DND ships could be built outside Canada, government says
Some of the smaller ships that could be supplied in future to the Canadian Forces won’t have to be built in Canada, the federal government has confirmed.
The move appears to undercut the National Shipbuilding Procurement Strategy, designed to acquire replacement ships for Canada’s naval and coast guard fleets while creating jobs at home.
But in a new response to companies, Public Services and Procurement Canada has confirmed that tugs and fireboats that might be provided to the Department of National Defence in future don’t have to be Canadian-made.
Under the National Shipbuilding Procurement Strategy, or NSPS, brought in by the Conservative government, small Canadian shipyards were supposed to build these support ships. That was seen by the government as ensuring contracts were spread around the domestic industry, since the two large yards, Irving on the east coast and Seaspan on the west coast, were receiving the lion’s share of billions of dollars in projects.
But the Department of National Defence is now looking at privatizing its tug and fireboat fleets.
“There is no requirement for the tugboats to be Canadian built,” noted Public Services and Procurement Canada in answer to a question from one of the firms interested in the project. In addition, there is no requirement for companies supplying such services under a contracting-out scheme to be Canadian.
Union officials representing the workers who operate such vessels for DND hope to meet with Royal Canadian Navy senior officers on the east coast Tuesday to find out more about the privatization scheme.
Industry representatives worry the proposal is the first serious challenge to the National Shipbuilding Procurement Strategy. If DND acquires ships that are built overseas, it could have a ripple effect on the overall proposed $36-billion shipbuilding procurement strategy, they warn.
Public Services and Procurement, which is responsible for the NSPS, did not comment on how this development would affect the shipbuilding strategy. It referred questions to DND.
DND spokesman Evan Koronewski said the department was providing information only at this point. “The intent is to identify the availability and budgetary costs for the provision of tug and fireboat services within the commercial market,” according to the information document provided to companies.
The Public Services documents point out that the potential contract would run for 25 years. Companies have until Jan. 25 to respond to Public Services with information on privatized tug and fireboat services they could offer.
source: Some DND ships could be built outside Canada, government says | Ottawa Citizen
Some of the smaller ships that could be supplied in future to the Canadian Forces won’t have to be built in Canada, the federal government has confirmed.
The move appears to undercut the National Shipbuilding Procurement Strategy, designed to acquire replacement ships for Canada’s naval and coast guard fleets while creating jobs at home.
But in a new response to companies, Public Services and Procurement Canada has confirmed that tugs and fireboats that might be provided to the Department of National Defence in future don’t have to be Canadian-made.
Under the National Shipbuilding Procurement Strategy, or NSPS, brought in by the Conservative government, small Canadian shipyards were supposed to build these support ships. That was seen by the government as ensuring contracts were spread around the domestic industry, since the two large yards, Irving on the east coast and Seaspan on the west coast, were receiving the lion’s share of billions of dollars in projects.
But the Department of National Defence is now looking at privatizing its tug and fireboat fleets.
“There is no requirement for the tugboats to be Canadian built,” noted Public Services and Procurement Canada in answer to a question from one of the firms interested in the project. In addition, there is no requirement for companies supplying such services under a contracting-out scheme to be Canadian.
Union officials representing the workers who operate such vessels for DND hope to meet with Royal Canadian Navy senior officers on the east coast Tuesday to find out more about the privatization scheme.
Industry representatives worry the proposal is the first serious challenge to the National Shipbuilding Procurement Strategy. If DND acquires ships that are built overseas, it could have a ripple effect on the overall proposed $36-billion shipbuilding procurement strategy, they warn.
Public Services and Procurement, which is responsible for the NSPS, did not comment on how this development would affect the shipbuilding strategy. It referred questions to DND.
DND spokesman Evan Koronewski said the department was providing information only at this point. “The intent is to identify the availability and budgetary costs for the provision of tug and fireboat services within the commercial market,” according to the information document provided to companies.
The Public Services documents point out that the potential contract would run for 25 years. Companies have until Jan. 25 to respond to Public Services with information on privatized tug and fireboat services they could offer.
source: Some DND ships could be built outside Canada, government says | Ottawa Citizen
