Canada has officially provided detailed bidding instructions to the two competing companies responsible for constructing the navy’s new submarines, as reported by CBC News. The instructions were sent to ThyssenKrupp Marine Systems (TKMS) from Germany and Hanwha Ocean Co. Ltd. from South Korea last week.
James Rourke, a representative from the recently established federal Defence Investment Agency, confirmed the issuance of the document, which delineates the government’s expectations and the criteria for decision-making. CBC News has reviewed part of the extensive 40-page document and confirmed its authenticity.
In evaluating the bids, the federal government will emphasize the sustainment package each company can offer for the fleet of 12 submarines post-purchase, 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 to Canada and leveraging the defense industry to boost job creation and economic growth.
It is anticipated that responses from both companies will be received by March, according to two separate defense sources. Five firms initially expressed interest in the submarine construction project, which was narrowed down to two by Prime Minister Mark Carney’s government last summer.
The submarine project, aimed at replacing Canada’s aging Victoria-class submarines, is estimated to be valued at up to $24 billion for the boat purchase alone. The government aims to establish sustainment facilities on both coasts to generate job opportunities in Canada.
Alan Williams, a former high-ranking procurement official at the Defence Department, expressed initial concerns about the rapid downselection to two bidders but is content with the formal bid instructions being issued. Transparency in such a significant procurement is crucial, he noted.
The federal government, led by Industry Minister Mélanie Joly, is committed to utilizing defense spending to bolster the Canadian economy. However, caution is advised, as seen in the ongoing debate over the purchase of F-35 stealth fighters. The government is deliberating whether to proceed with the full order or adjust the quantity and purchase an alternative jet.
Williams highlighted the need for prudence in decision-making, emphasizing the importance of avoiding political maneuvering in the submarine procurement process. He cautioned against interventions that could lead to legal consequences, especially with bidding processes already in motion.
