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Canada : Govt. to move forward with $700M plan to build interim supply vessel for Royal Canadian Navy
Publish Date : 01-Dec-2015
In spite of the sole-source nature of the project, the government will move forward with a $700-million plan to build an interim supply vessel for the Royal Canadian Navy.
Procurement Minister Judy Foote and Defence Minister Harjit Sajjan have jointly announced that the government has entered into a deal with Quebec-based Chantier Davie Canada Inc. to proceed with Project Resolve.
The announcement has been made less than two weeks after the Liberal government said it was stalling the agreement for two months to examine several factors surrounding the deal, resulting in worries the program would be scrapped.
The approval for the project was granted despite the fact the former Conservative government entered into the deal with Davie after an expression of interest, absent of any sort of a competitive process, and after amending long-standing procurement rules for interim defense needs.
After careful deliberation the government said it will honor the deal as the process is already at an advanced stage and restarting it would mean increasing the time Canada’s navy is without critical support capabilities. Furthermore, a ship has been bought by Davie and is already being converted, leading to the hiring of several hundred employees. Cancelling the program would also mean the government would be on the hook for $89 million in expenses.
The release said, "Project Resolve is the most viable course of action to provide the navy’s at-sea oil replenishment capability until the joint support ships, to be built by Seaspan’s Vancouver Shipyards, are operational. The Government of Canada is committed to ensuring that competitions for major military procurements stand up to the highest standards of openness and transparency."
