slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Implementation of a National Shipbuilding Procurement Strategy Steve Durrell President , Irving Shipbuilding Inc. COExâ PowerPoint Presentation
Download Presentation
Implementation of a National Shipbuilding Procurement Strategy Steve Durrell President , Irving Shipbuilding Inc. COExâ

Loading in 2 Seconds...

play fullscreen
1 / 26

Implementation of a National Shipbuilding Procurement Strategy Steve Durrell President , Irving Shipbuilding Inc. COExâ - PowerPoint PPT Presentation


  • 389 Views
  • Uploaded on

Implementation of a National Shipbuilding Procurement Strategy Steve Durrell President , Irving Shipbuilding Inc. COEx…The Road Map to A Sustainable Industry. Brief History. Due to over capacity in the Mid 80’s Government introduced “Shipyard Rationalization Assistance”

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Implementation of a National Shipbuilding Procurement Strategy Steve Durrell President , Irving Shipbuilding Inc. COExâ' - Audrey


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Implementation of a

National Shipbuilding Procurement Strategy

Steve Durrell

President , Irving Shipbuilding Inc.

COEx…The Road Map to

A Sustainable Industry

brief history
Brief History

Due to over capacity in the Mid 80’s Government introduced “Shipyard Rationalization Assistance”

Shipyards Closed in

British Columbia

Ontario

Quebec

Atlantic

Company Confidential

shipyard rationalization assistance
Shipyard Rationalization Assistance

Source: Industry Canada Website

Company Confidential

shipyard capacity
Shipyard Capacity
  • Today our industry is only sustainable if we have a federal program
  • Canada can not afford any further reduction if we are to meet pent-up demand
  • Contracts are required immediately to maintain current capacity

Company Confidential

overview
Overview

Existing Marine procurement for fleet renewal requirements contains high risk elements, it is very complex, time consuming and expensive for both Government and Industry.

Stakeholders recognize the need for change given significant government shipbuilding requirements and the need to ensure capable and qualified Canadian shipyards have continuous work in order to maintain a strategic asset.

Our proposal was submitted in response to the July 27, 2009 National Shipbuilding Procurement Strategy Consultations. Most Western nations have chosen a model similar to our submission.

Company Confidential

future for canada s shipyards
Future For Canada’s Shipyards

Majority of work will be Government

Some commercial in booming markets this market is not predictable.

Perhaps some niche markets

Lake Vessels

Provincial ferries and tugs

Company Confidential

continuous procurement new builds essential to maintain ongoing viable industry
Continuous Procurement (New Builds) Essential to Maintain Ongoing Viable Industry

History of the Boom/Bust industry:

Canadian Patrol Frigate (CPF)contract signed 1983

Maritime Coastal Defence Vessel (MCDV) contract signed 1992

Next Navy MCP new build contract …?

Company Confidential

government new build solicitations
Government New Build Solicitations

Cost of bidding is very high and the time from Request for Proposal (RFP) to contract award is exceptionally long

CPF – 7 years from expression of interest to contract

Bid cost $20Million

MCDV – 4 years from expression of interest to contract

Bid cost $8Million

JSS solicitation suspended – project exceeds budget - $ million spent

MSPV bid 3 times before award

Arctic Offshore Patrol Ships (AOPS) – Awaiting communication.

Company Confidential

national shipbuilding procurement strategy nsps
National Shipbuilding Procurement Strategy (NSPS)

Consultations were held with Industry on

July 27th & 28th, 2009

Company Confidential

some of the assumptions or objectives of the nsps
Some of the Assumptions (or Objectives) of the NSPS

Federal Ships will be built in Canada

The Finite Federal demand will be over a 30 year horizon

Limited number of yards would be involved

Government ship operators will level-load the requirements (No Boom Bust)

Company Confidential

national shipbuilding procurement strategy the road map
National Shipbuilding Procurement Strategy (the Road Map)

Establish two (2) Centres of Excellence (COEx) for fleet renewal Major Crown Projects (MCP) through a competitive qualification process.

One COEx would be qualified for medium, complex combatant vessel capability.

One COEx would be qualified for large, complex, non-combatant vessel capability.

Company Confidential

faq s
FAQ’s

What is the competitive Process?

What is the Contracting Process?

What do other western countries do?

How is value for money achieved?

What are the benefits of a COEx approach?

What about the SME’s and small yards?

What is the Irving and Davie deal about?

Company Confidential

competitive process
Competitive Process

Utilize the proven and successful Procurement Strategy, recently used on other Major Marine Procurements prepared in collaboration with Industry

Competitive Solicitation of Interest and Qualification Process (SOI-Q) on MERX

Compete “Capability” not “Scope of Work”

Utilize Appropriate (risk reducing) Qualification Criteria

Adequate existing facilities

Qualified resources – skilled labour

Management strength and experience

Financial strength

Recent proven experience in ship construction

Past performance

Company Confidential

contracting procedures
Contracting Procedures

Award a Contract to the 2 Facilities emerging from the SOI-Q process

Utilize (Shipbuilding) Supply Arrangements (SSA) as basis for contracts that ensure Best Value.

Negotiate contracts by particularized project.

Build incentives into the projects, reward performance and share savings with Canada.

Company Confidential

how do other western countries do this
How do other Western Countries do this?

The COEx model of contracting is similar to other countries

U.S.A.

U.K

France

Australia

Company Confidential

value for money
Value for Money

SSA would use contract cost principles 1031-2 and include contracting templates to ensure fair value utilizing:

Annual Rate Negotiations

Contract Audits For Profit Limitation

Earned Value Performance Measurement

Continuous Improvement Incentives Through Shared Risk

Integrated Project Management Teams

Use contract incentives for continued incremental infrastructure investment

Company Confidential

benefits of a coex approach
Benefits of a COEx approach :

Canada can preserve “Sovereign Capability “ and Maintain shipbuilding as a Strategic Asset for Canada

Provide a steady work load into the future (30 Years)

Retain and develop “high value jobs” with subject matter expertise

Provide stable facilities for the cost effective delivery of all MCP’s

Allow for incremental investment to keep pace with a world wide industry

Reduce industries cost of proposals, more money for facility investment and HR development

Company Confidential

benefits of a coex approach continued
Benefits of a COEx approach : (continued)

Provide the basis for a long term shipbuilding industrial strategy

Expedite the government procurement process, while respecting contract policy

Provide earlier delivery of vessels

Reduce Canada's Project Management Office level of effort:

Reduce Canada's costs in the project definition and implementation phases

More $ available for the ship and project deliverables

Reduce risk to the program, the Contractor, and to Canada

Company Confidential

sme s and small yard benefits
SME’s and Small-yard Benefits

Facilities designated as a COEx would not be allowed to bid on non-MCP’s

Sub-contract work to small shipyards, where geographically feasible;

Provide significant contracts to Small and Medium Enterprises (SME’s); and

Include shipyards on the West Coast, Ontario and Newfoundland for participation in “In-Service Support” work based on the eventual home port location of the new vessels

Company Confidential

other shipyards non coex
Other Shipyards (non-COEx)

Facilities designated as a COEx would not be allowed to bid on non-MCP’s

Utilize National Supply Arrangements

Pre-negotiated contracts

Work competed on capability and price

Lowest priced compliant bid wins

Benefits

Creates a natural commercial balance

Win/win potential for all small shipyards in Canada

Minimum bid period, cost and risk

Stimulate economy > $100M/year potential

Company Confidential

irving shipbuilding and davie mou significant benefits to canad a
Irving Shipbuilding and Davie MOU: Significant Benefits to Canada

Technology, IP and Process sharing

Project and contract management collaboration

IRB coordination and partnership for maximum Canadian benefit

Distinct Regional Capabilities in a collaborative teaming agreement

Sub-contract where applicable

Best Practice teamwork and sharing

Value for money structure. Ensure value for money for Canada.

Company Confidential

industrial and regional benefits irb
Industrial and Regional Benefits (IRB)

Company with facilities designated as a Centre of Excellence will:

- Create immediate high value jobs

Prior to contract signing, commit to direct Industrial Regional Benefits exceeding 60% of the contract value

Guarantee to achieve indirect benefits through offsets so that the total industrial benefits to Canada meet or exceed the contract value

Company Confidential

industrial and regional benefits irb continued
Industrial and Regional Benefits (IRB) (continued)

Spread Industrial Benefits across Canada to the maximum extent possible

Include Aboriginal Business as well as Small and Medium Enterprise targets

The only thing for sure….if the vessels are not built there will be no benefits to worry about

Company Confidential

a summary of benefits form this procurement strategy
A summary of Benefits form this Procurement Strategy

Reduction in solicitation time and cost

Projects start earlier and therefore earlier delivery of vessels and earlier IRB’s

Significant reduction of up-front expenditure for Government & Industry

Significant Project / Program risk reductions

This is a win/win situation for Government and Industry

Best value for money

Company Confidential

the way ahead
The Way Ahead

Immediate action & steps required

Decision by Government on COEx concept

Qualify COEx based on overall capability

Sign long term agreement

Get on with the business of building the Federal Fleet.

Company Confidential