Canada has officially provided clear bidding instructions to the two competing companies for constructing the new submarines for the navy, as reported by CBC News. The instructions were sent to ThyssenKrupp Marine Systems (TKMS) of Germany and Hanwha Ocean Co. Ltd. of South Korea last week.
James Rourke, a representative from the recently established federal Defence Investment Agency, confirmed the issuance of the document, which details the government’s expectations and the criteria for decision-making, to both qualified bidders. CBC News has reviewed a portion of the extensive 40-page document and confirmed its authenticity.
The federal government will heavily consider the sustainment packages offered by each company for the fleet of 12 submarines post-purchase, with this factor accounting for 50% of the evaluation score. Additionally, 20% of the decision will be based on the platform itself, 15% on the financial stability of the company, and the remaining 15% on the economic benefits related to the contract.
Rourke refrained from providing specific comments but emphasized the importance of maximizing economic benefits for Canada and leveraging the defense industry to create jobs and foster economic growth. The government expects responses from both companies by March, with the selection process having narrowed down from five initial interested firms to the final two.
Prime Minister Mark Carney has personally visited the shipyards and inspected the facilities and submarine models offered by both contenders. The project aims to replace Canada’s aging Victoria-class submarines and has an estimated value of up to $24 billion for the boat purchase alone. The government aims to establish sustainment facilities on both coasts to generate employment opportunities in Canada.
Alan Williams, a former top procurement official at the Defence Department, initially expressed concerns about the quick downselection process to two bidders but is now satisfied with the formal issuance of bidding instructions. Transparency is crucial given the magnitude of the procurement, he emphasized.
The federal government, led by Industry Minister Mélanie Joly, is keen on utilizing defense spending to boost the Canadian economy. However, caution is warranted, especially in light of previous debates surrounding defense procurement decisions. The government is deliberating on whether to proceed with the full submarine order or reduce the quantity and explore alternative options.
Joly has engaged in discussions with Swedish defense company Saab regarding the Gripen E fighter jet as an alternative to the F-35. Williams cautioned against political maneuvering in the submarine bidding process, emphasizing the need for a fair and legal procurement process free from external influences.
