The NSPS Experience Presentation to the PBO 11 Dec 2012. Establish a long-term, strategic relationship with 2 Canadian shipyards to build $33B worth of ships One shipyard to build the Combat Vessels Package Arctic / Offshore Patrol Ship, Canadian Surface Combatant
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Establish a long-term, strategic relationship with 2 Canadian shipyards to build $33B worth of ships
One shipyard to build the Combat Vessels Package
Arctic / Offshore Patrol Ship, Canadian Surface Combatant
The other to build the Non-Combat Vessels Package
Offshore Oceanographic Science Vessel, Offshore Fisheries Science Vessel, Polar Icebreaker, Joint Support Ship
Set-aside the individual projects for $2B worth of smaller vessels for competition by other than the 2 selected yards and their affiliates
Repair, maintenance and refit – Business as usualWhat is the NSPS?
The Government has recognized a once-in-a-generation opportunity to leverage its fleet renewal investment to foster a stronger, more sustainable Canadian marine industry.
The Canadian Association of Defence and Security Industries (CADSI) has estimated that the renewal of the federal fleet will support 15,000 jobs annually in communities across Canada over the next 30 years. (Sovereignty, Security and Prosperity – Government Ships, May 2009)
Canada’s marine industries are broader than the ship construction that occurs in shipyards and involves many hundreds of Canadian companies, most of them small and medium enterprises.
The Industrial and Regional Benefits Policy will ensure that the full value of the resulting contracts (both shipyard and non-shipyard related work) is leveraged back into the Canadian economy.
NATIONA SHIPBUILDING PROCUREMENT STRATEGY
STRATÉGIE NATIONALE D’APPROVISIONNEMENT EN MATIÈRE DE CONSTRUCTION NAVALE
NSPS Process - What Did We Do? Canadian shipyards to build $33B worth of ships
Project Contract Negotiations
Basis of Selection:
The Best Overall Score from the combination of Capabilities & Improvements, Cost to Canada, Financial Situation and Value Proposition
Mandatory Requirements grouped into 4 areas:
Reference: Evaluation Plan Figure 1
For the combat work package:
Irving Shipbuilding Inc. is the selected shipyard with a score of 82.8%. Cost to Canada is $0.
For the non-combat work package:
Vancouver Shipyards Co. Ltd. is the selected shipyard with a score of 76.8%. Cost to Canada is $0.
Leadership / Governance / Decision-Making
Use of Independent Third Parties to validate process
Extensive consultation with bidders took place on the concept, the requirements and the evaluation process and criteria
The procurement process was driven by transparency and collaboration
Pro-active communication throughout the procurement process
No Political Involvement
Deputy Ministers’ Governance Committee made key decisions in an open and transparent manner
Unique dispute avoidance and issue resolution processes
Used the governance structure to resolve issues
No legal disputes or challenges of the process or the results
Internationally recognized experts were engaged to:
Assess Capability and Performance Benchmarking
Provide Expert Advice
Assess Financial Proposals
Attended governance meetings to answer DM & ADM questions directly
Provided written attestations that processes, actions and decisions were fair, reasonable and prudent
Simplified Solicitation of Interest & Qualification
Keeping the Results Secret
National Shipbuilding Procurement Strategy Secretariat
Secrétariat de la stratégie nationale d’approvisionnement en matière de construction navaleThe New Approach to Procurement