JSS Programme Procurement Terminated
The Department of Public Works and Government Services Canada has effectively cancelled the Joint Support Ship Programme in light of the two consortiums bidding for the project having been unable to satisfy government requirements. Those consortiums have stated that the $2.9 billion alloted for the construction of three ships is not enough to pay for the design that the Department of National Defence wants. The federal government was unwilling to allocate more funding, resulting in the rejection of the two bids, and the subsequent termination of the procurement process.
It is unclear at this time what the next step will be in the replacement of the HMCS PROTECTEUR and HMCS PRESERVER, both of which, according to many sources, may be retired as early as 2010 after four decades of service as the Navy’s supply ships. Both vessels are currently operating on borrowed-time given that the technology used in the ships propulsion systems, among other systems, is quickly no longer becoming maintainable due to a lack of spare parts.
The termination of the procurement process for the JSS will result in additional delay, as the JSS design must now be reworked to produce compliant bids from industry, or the number of ships to be built reduced from three to two. There is also the possibility (albeit remote due to politics) that multi-role ships similar in nature to the JSS may be acquired/built overseas to meet the Navy’s operational requirement for new supply ships.
The official PWGSC press release follows:
Gatineau, August 22, 2008 – The Minister of Public Works and Government Services Canada (PWGSC), the Honourable Christian Paradis, today announced the termination of two procurement processes involving the shipbuilding industry.
After receiving and evaluating the mandatory requirements for the Joint Support Ship Project from the bidders, the Crown has determined that the proposals were not compliant with the basic terms of the Request for Proposals (RFP). Among other compliance failures, both bids were significantly over the established budget provisions. This project was initiated to replace the Protecteur Class Auxiliary Oiler Replenishment vessels with three multi-role ships to be delivered to the Canadian Forces between 2012 and 2016.
In addition, PWGSC has also announced the cancellation of a competitive process for the acquisition of twelve mid-shore patrol vessels on behalf of the Canadian Coast Guard. A Request for Proposal was issued in December 2007. However the bid prices exceeded the anticipated costs.
“These vessels are a key priority of the Government of Canada. However, the government must ensure that Canadian taxpayers receive the best value for their money”, said Minister Paradis. The Department of National Defence and the Department of Fisheries and Oceans are currently considering the next steps. The government is committed to procure, repair and refit vessels in Canada according to the government’s Buy Canada policy.
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