Liberals move to get a handle on shipbuilding procurement program – Canadian Government Executive

NEWS

SEARCH

GovernmentPerformanceProcurement
Minister Judy Foote (centre) at Cansec 2016
May 27, 2016

Liberals move to get a handle on shipbuilding procurement program

Work is underway to determine a new costing approach to shipbuilding procurement, according to Minister of Public Service and Procurement Judy Foote.

The Liberal government is taking steps to rein in the National Shipbuilding Procurement Strategy (NSPS) which has gone over budget.

As part of its new game plan, the government will not release estimates of the costs associated with what is possibly the military’s largest looming maritime purchase to date until it has the government has signed an actual contract, according to Minister of Public Service and Procurement Judy Foote.

This, she said, will cut down confusion and speculations.

“We will not be announcing a new cost estimate for the Canadian Surface Combatant until we have signed a build contract,” she told a crowd of defence contractor Thursday at the Cansec 2016 conference in Ottawa. “Given the number of variables that can change and the very long planning periods involved, we have seen how these estimates cause confusion.”

“We have seen how these estimates cause confusion. We will be developing procedures to ensure that accurate and timely costing information is provided to Canadians,” said Foote.

The agreement to build the warships is not expected to be signed until 2019.

RELATED CONTENT

Canadian shipbuilders decry lack of competition in NSPS

Smooth sailing: A model procurement

The minister said the move to keep a lid on the cost estimates concerning the CSC is part of a new game plan her office is adopting keep the NSPS under control. She also said that “work is underway to determine a new costing approach” and that she intends to double the number of staff working on the NSPS.

Foote said more details will be released in the following weeks.

The CSC is the procurement project to replace the Royal Canadian Navy’s Iroquois class and Halifax class frigates with up to 15 new warships beginning in the mid-2020s as part of the $39-billion NSPS. The replacement vessels are envisioned to be larger than the Halifax class and will likely provide wide-area air defence and anti-submarine warfare capabilities. The actual number of ships will depend on the budget allocated for the program.

The NSPS was launched by the Conservative government in 2010. The strategy was broken into three sections; the combat package, the non-combat package, and the smaller vessel package. Companies that won one of the larger ship packages were not able to bid on the smaller vessel package.

The Conservatives abandoned the traditional competitive procurement process and instead conducted a stringent method of choosing providers for the vessels which ended up committing the government to deal with the country’s three largest shipbuilders, Irving Shipbuilding Inc., Seaspan and Chantier Davie

Irving won the largest chunk of the NSPS which is the CSC. Seaspan of Vancouver got the smaller Arctic Offshore Patrol Ship (AOPS) program. Quebec’s Chantier Davie ended up with the much smaller $587 million civilian tanker retrofit program.

The NSPS has been dogged by delays and controversies. The price of the 15 warships that were to be procured for the Royal Canadian Navy’s (RCN) Single Class Surface Combatant Project has more than doubled from the initial $14 billion price tag to more than $30 billion, according to a report by the Canadian Broadcasting Corp. (CBC) News. This means the total cost $26.2 million approved by the government for the purchase of those 15 ships and an additional six Arctic Patrol Ships, will cost about $16 billion more and balloon to $42 billion.

Foote noted that the NSPS went through a period of “growing pains.”

For instance, Foote said, the Conservatives did not update their initial shipbuilding cost estimates to take into account for inflation, exchange rates and changes in material cost.

“This is the main reason why projects appeared to be vastly over budget when actual contracts were signed,” the minister said.

 

About this author

Nestor Arellano

Nestor is a Toronto-based journalist who specializes in writing about technology and business. He is the editor of Vanguard Magazine and the associate editor of IT in Canada and a regular contributor to CGE.

0 comments

There are no comments for this post yet.

Be the first to comment. Click here.

Government
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Cost estimation is becoming an extremely important skill within government due...
 
In this special episode of CGE Radio, your host John Jones...
 
In this episode J. Richard Jones examines the rise in international...
 
Please to view this Content. (Not a member? Join Today! )...
 
The North Atlantic Treaty Organization, with its 28 independent member countries...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
In this episode, hear from Carl Hammersburg, Manager, Government and Healthcare...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
An Interview with Larry Ostola, Toronto’s Director of Museums and Heritage...
 
Please to view this Content. (Not a member? Join Today! )...
 
The arrival of President Trump in the White House marks a...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
While the incoming administration of President-elect Donald Trump is being buffeted...
 
Mental health problems are increasingly recognized today. By some calculations, one...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
In the world that we are living in today, free and...
 
Please to view this Content. (Not a member? Join Today! )...
 
While government watchers tend to concentrate on the big policy issues,...
 
The RCMP adopted a new media strategy earlier this month by...
 
Please to view this Content. (Not a member? Join Today! )...
 
There is already a surging literature on the application of design...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
The results-driven work ethics of Michael Barber, a top British political...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Deliverology is fast becoming a buzzword in the Canadian government scene....
 
For several months now, the Liberal government ministers have been using...
 
Ontario’s provincial government needs to act fast in building a coordinated...
 
The bootleg fentanyl overdose crisis that is sweeping across Western provinces...
 
Terrorism operates with deadly regularity. In June 2016, a gunman who...
 
It’s a common notion that young workers born in the mid-1990s...
 
BC Hydro said it is pushing through with it $9-billion, hydroelectric megaproject on...
 
Canadian doctors were told that climate change impacts human health and...
 
Even as talks between the government and federal workers affected problems...
 
At last the the nostalgic fun of the CNE decends upon...
 
Just as the federal government has begun consultations on cyber security,...
 
The association representing more than 42,000 physicians and medical students in...
 
Please to view this Content. (Not a member? Join Today! )...
 
Following three months of little change in the employment numbers, Statistics...
 
Regardless of whether you are an elected official, a public servant,...
 
Ottawa has overhauled the process by which justices are picked for...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
The local electric vehicle industry just got a boost from Ontario...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
On June 7, over 40 senior executives from within the public...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
The government has to move quickly in replacing its fleet of...
 
As much a 20 per cent of grade seven students in...
 
The Liberal government is taking steps to rein in the National...
 
Canada is severely in need of a maritime vessel that can...
 
The actions and decisions of public servants have consequences for the...
 
Please to view this Content. (Not a member? Join Today! )...
 
He is often referred to as the federal government’s first “chief...
 
Upon receiving numerous complaints regarding add-on fees that turn making economy...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Conservation efforts in the Canadian Arctic will be obstructed and sensitive...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
In this episode, Richard talks with Alex Willner, Assistant Professor from...
 
Now more than ever, organizations in both the public and private...
 
Things just get curiouser and curiouser. Lewis Carroll (1865): ’s Adventures...
 
Laid off workers in Canada will soon get some relief with...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Eight years ago, the always prolific University of Chicago Law School...
 
Please to view this Content. (Not a member? Join Today! )...
 
The ambitious immigration plan of the Liberal government promises to zero...
 
Nearly half of Canadian organizations are falling behind on implementation of...
 
Please to view this Content. (Not a member? Join Today! )...
 
The Ontario government and telecom gear maker Huawei Canada yesterday announced...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Prime Minister Trudeau is off on one of the most intense...
 
Please to view this Content. (Not a member? Join Today! )...
 
Some title Some author
Some excerpt
 
Some title Some author
Some excerpt
 
Some title Some author
Some excerpt
 
Some title Some author
Some excerpt
Please to view this Content. (Not a member? Join Today! )...

Member Login

Forgot Password?

Join Us

Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.