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Coastal Patrol – Canadian Coast Guard – CCG Procurement – February 2009

Mid-Shore Patrol Vessels  –  the CCG's On-Again, Off-Again
37-43m  MSPVs  –  PWGSC Press Release and a MERX  NPP

[ Update: 03 Sept 2009  –  Fisheries & Oceans awarded a contract to Irving Ship- building for 9 MSPVs. These MSPVs are based on Dutch Damen Stan Patrol 4207.]

The Canadian Coast Guard may lower performance requirements for the proposed Mid-Shore Patrol Vessels to allow bids to come in on budget.  In August 2008, the federal government quietly put the MSPV project on hold when all received MSPV bids came in "significantly over the established budget provisions". But MSPV is being put out to tender yet again but with less stringent demands on performance.

The reduced performance requirements are also intended to allow the CCG to buy the planned twelve MSPVs under the existing budget (around $340M ). An earlier option considered  was reducing  the total purchase  to ten hulls according to The Chronicle Herald of  Halifax. Under the new plan, the MSPVs will sacrifice engine life in exchange for a less expensive propulsion system. (This suggests a savings that permits the purchase of the desired number of hulls, transfering the program's overall costs on to the later burdens of increased engine maintenance and repairs.)

Notable by its omission from both the MSPV press release and  NPP is the related companion ship, the two Off-Shore Fisheries Research Vessels. The obvious need for fisheries patrols aside, this affects the overall budget for the new CCG vessels. When announced by the Liberals back in 2005, the combined MSPV (12)/ OSFV(2) coast guard fleet was to cost $276M.  In 2007, the Conservatives budgeted $324M for the project. Now, "up to 12" (but perhaps less) MSPV alone are to cost $340M.

It should be noted though, that neither PWGSC press release nor NPP make any mention of  the actual cost of the MSPVs (that $340M price tag is supposition). PWGSC does make a great deal of  IRBs  while  the  National Security Exception is invoked in NPP –  both are odd emphases for what, presumably, will be Canadian-made ships.

The Public Works & Government Services Canada press release and NPP follows:

Public Works & Government Services Canada – Press Release

Canadian Government Takes Steps to Obtain Vessels for Coast Guard [CCG]

GATINEAU, Quebec, February 26, 2009 - The Honourable Christian Paradis, Min- ister of  Public Works and Government Services Canada and  the Honourable Gail Shea,  Minister of  Fisheries and Oceans, today announced  that  the Government of  Canada has taken the next step towards procuring mid-shore patrol vessels on behalf  of  the  Canadian Coast Guard.

The government plans to procure up to twelve new mid-shore patrol vessels (MSPVs) to provide support for the Fisheries Conservation and Protection Program, as well as Maritime Security.

PWGSC has launched a process, and to provide industry with the opportunity for input, PWGSC issued a draft Request for Proposals (RFP) [see below] on Merx on February 26, 2009. The input received from industry will be taken into account when the government issues the final RFP in early Spring 2009.

"These vessels are a key priority [for] the Government of  Canada," said Minister Shea. "We have launched a procurement process which demonstrates the Govern- ment's commitment  to getting  the right equipment  for  the Canadian Coast Guard at  the right price for Canadians, with the right benefits  for Canadian industry."

Through industrial and regional benefits, this contract will boost the Canadian economy by providing for 100 percent of the contract in direct and indirect [IRBs]. This means that the contractor will generate one dollar of economic activity in Canada for every dollar it receives from the contract. The vessels will have the capacity to sail out over 200 nautical miles [370 km]. ________________________________________

Notice of  Proposed  Procurement  ( NPP ) –
MID-SHORE PATROL VESSELS
[ MSPV ]
________________________________________

Reference Number                PW-$$NQ-002-18390
Solicitation Number              F7045-060001/D
Organization Name               Public Works and Government Services Canada
                                                 Travaux publics et Services gouvernementaux Canada
Source ID                               FD.DP.QC.10077.C2
Associated Components     Yes

Dates

Published     2009-02-26
Revised         —
Closing         2009-03-13  02:00 PM  Eastern Daylight Saving Time  EDT

Details

Category     Marine
GSINS          N1925:  SPECIAL SERVICE VESSELS
Region of Delivery            Newfoundland and Labrador, Nova Scotia, Quebec,
                                             Ontario, British Columbia
Region of Opportunity     —
Agreement Type                NONE
Tender Type                       Notice of Proposed Procurement (NPP)
Estimated Value                  —
Solicitation Method           —

Notice Description

MID-SHORE PATROL VESSELS

Trade Agreement:  NONE
Tendering Procedures:  All interested suppliers may submit a bid
Attachment:  None
Competitive Procurement Strategy:  Best Overall Proposal
Comprehensive Land Claim Agreement:  No
Nature of  Requirements: MID-SHORE PATROL VESSELS

W6399-08AD02/A
Kirkpatrick, Gregg
Telephone No. - (819) 956-0233
Email: Gregg.Kirkpatrick@pwgsc.gc.ca
Fax No. - (819) 956-5650

Notice of Proposed Procurement (NPP) for the Mid-Shore Patrol Vessel

This is NOT a formal solicitation for proposals nor a pre-qualification process. This NPP is to advise to the Canadian Shipbuilding Industry that Canada intends to advertise on the Government Electronic Tendering Service (GETS), a require- ment to receive proposals to build Mid-Shore Patrol Vessels (MSPV). To this end, it has prepared a draft Request for Proposal (RFP), and is seeking interest and in- viting Industry to comment on it. The deadline for providing written comments will be fifteen (15) calendar days after the draft RFP is first made available on GETS.

Although Canada is seeking comments and all comments are welcome, Canada reserves the right not to incorporate any comments or to incorporate some or all comments. Canada further reserves the right to change in whole or in part any of the RFP documents posted both in content and format. The formal RFP will be posted on GETS at a later date.

The Canadian Coast Guard has a requirement for up to twelve (12) Mid-Shore Patrol Vessels (MSPV). These vessels shall have a length overall between 37 and 43 metres, and be subject to specific criteria to be described in the RFP. These vessels, which are to be used for Marine Security and Conservation and Protect- ion, are to be capable of sustained operations out to 120 nautical miles offshore. The vessels are to be produced in Canada in accordance with The Canadian Ship- building Policy. The proposed vessel shall be a steel mono-hull based on an exist- ing proven parent design. The proven parent design shall have been used in the construction of vessels that have been in service for a minimum of  two (2) years and a minimum of 1,000 hours in-service operation.

As this requirement concerns the procurement of goods to be used for the nation- al security of  Canada, a National Security Exception [NSE] has been invoked, and as such trade agreements do not apply.

Bidders will be required to demonstrate in their proposals that they will have the intellectual property rights from the owner of the proven parent design to produce these vessels and that they have the intellectual property rights to modify the proven parent designs for the Canadian Coast Guard's specific requirements. Bid- ders will be required to obtain the intellectual property rights for Canada to have access to relevant background information for its use and any third party's use for the maintenance, repair and operation of the MSPVs for the life of the vessels.

Interested bidders are requested to submit their comments in writing via email to Charlene Whittaker at charlene.whittaker@pwgsc-tpsgc.gc.ca.

Delivery Date: Above-mentioned

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.

Whittaker, Charlene
200 Elgin Street, 3rd floor   200 rue Elgin, 3ième étage
Ottawa Ontario
K1A 0E6
(613) 949-9131 ( )


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