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AUGUST 2008 ISSUE

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August 24, 2008

Canadian government cans two shipbuilding procurements

Canada's Conservative government has ended the procurement processes for two major shipbuilding programs: the $2.9 billion Joint Support Ship program and the acquisition of twelve midshore patrol vessels for the Canadian Coast Guard.

Minister of Public Works and Government Services Canada (PWGSC) Christian Paradis, announced the termination of the procurements in a statement issued late Friday. If Paradis thought the timing of the statement meant it would escape public attention--he was wrong. It appears to have received plenty of adverse press and comment over the weekend! The CBC report of the cancellation attracted over 200 comments.

"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," said a statement.

PWGSC also announced the cancellation of a competitive process for the acquisition of the 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," said Minister Paradis. "However, the government must ensure that Canadian taxpayers receive the best value for their money. 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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