Canada short-lists yards to build large ships"

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October 12, 2010

Canada short-lists yards to build large ships

Five Canadian shipyards are scheduled to meet today with the National Shipbuilding Procurement Secretariat. The have been short-listed to build large ships under the procurement strategy. They are:

Davie Yards Inc., Levis, QC

Irving Shipbuilding Inc., Saint John, NB

Vancouver Shipyards Co. Ltd., North Vancouver, BC

Kiewit Offshore Services - a division of Peter Kiewit Infrastructure Co., Milton, ON

Seaway Marine & Industrial Inc., St. Catharines, ON

The five shipyards will be invited to participate in the Request for Proposal (RFP) process. Canada will establish a strategic relationship with two of the shipyards: one yard will be selected to build combat vessels while the other yard will build non-combat vessels, creating jobs in various regions of the country.

The selection of the two winning shipyards is expected in spring 2011

Canada has engaged the services of the following independent third parties to assist in the implementation of the NSPS for the construction of large ships:

KPMG will provide expert advice to Canada on the framework relating to the long-term strategic sourcing arrangement, including risk management and value for money. KPMG will validate the soundness of the criteria and methodology to be used in the selection of the two Canadian shipyards to build large ships.

Knowles Consultancy Services Inc. and Hill International Inc. in Joint Venture will provide fairness monitoring of the shipyard selection process to ensure that the two Canadian shipyards will be selected in a fair, open and transparent manner and that equal treatment will be accorded to all competitors.

First Marine International (FMI), a Division of Haskoning UK Ltd. will assess each pre-qualified shipyard's capability and benchmark its performance. The report will be used by Canada as one of the inputs in the selection of two shipyards to build large ships. It is anticipated that the pre-qualified shipyards will also use the respective reports as an input towards the development of an investment plan and value proposition proposal. The impartial assessment and objective benchmarking will be repeated at regular intervals to measure the two selected shipyard's productivity improvement over time to ensure value for money over the duration of the long-term strategic sourcing relationship.


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