Summer 2010 — Ottawa contracts KPMG to provide advice on the strategy’s framework, Knowles Consulting Services Inc. and Hill International Inc. to monitor the fairness of the shipyard selection process, and First Marine International, a division of Haskoning UK Ltd., to assess each pre-quali�ed shipyard’s capability and benchmark their performance.

Sept. 1, 2010 — Release of draft solicitation of interest and quali�cations.

Sept. 20, 2010 — Release of solicitation of interest and quali�cations.

Oct. 8, 2010 — Five shipyards are short-listed to build large vessels: Irving Shipbuilding Inc. of Saint John, N.B.; Vancouver Shipyards Co. Ltd., North Vancouver, B.C.; Davie Yards Inc., Levis, Que.; Seaway Marine & Industrial Inc., St. Catharines, Ont.; and Kiewit O�shore Services, Milton, Ont.

Oct. 12, 2010 — First meeting with short-listed shipyards.

Oct. 13, 2010 — Benchmarking of short-listed shipyards.

Nov. 10, 2010 — Second meeting with short-listed shipyards to review initial draft procurement documents and evaluation methodology.

PROCUREMENT STRATEGY TIMELINE

The $33-billion National Shipbuilding Procurement Strategy, which led to the awarding of a $25-billion contract to Irving Shipbuilding and the Halifax Shipyard on Oct. 19, was the federal government’s long-term response to a complicated and often politically sensitive process that had been anything but smooth sailing. The transparent, politically hands-off strategy, announced on June 3, 2010, was developed after industry bids for the construction of three navy supply ships announced by the government in 2006 came in well over their projected $2.9-billion budget.

The imbroglio embarrassed the navy, which had asked for more capabilities than are typically found on supply ships, and left federal vessel replacement plans in disarray. Before the procurement strategy was announced in 2010, Canada was the only NATO

country without a shipbuilding plan. HMCS Iroquois, the navy’s 38-year-old destroyer, is among the oldest front-line warships in the western world. The new strategy was designed to involve two Canadian shipyards — one to build large combat vessels and another to build non-combat vessels — chosen after a comprehen-sive selection process monitored for fairness by independent consultants.

Replacing Canada’s aging naval �eet, which has some

vessels that are almost 40 years old, has proved as

challenging as turning a supertanker in

a bathtub.

A step-by-step look at the largest naval procurement process since the Second World War:Dec. 4, 2010 — Third meeting with short-listed shipyards to discuss next steps in procurement process, including terms and conditions of the request for proposals.

Dec. 15, 2010 — Benchmarking of shipyards completed.

Jan. 7, 2011 — Fourth meeting with short-listed shipyards to discuss shipyard selection framework and evaluation methodol-ogy.

Jan. 27, 2011 — Fifth meeting with short-listed shipyards to discuss updated shipyard selection framework and evaluation methodology

Feb. 7, 2011 — Request for proposals to build large vessels released to �ve short-listed shipyards.

March 9, 2011 — Capability and benchmark performance reports are released to short-listed shipyards. One of the components used in the selection of the two shipyards chosen to build the large vessels, the reports will be used by shipyards to develop plans to upgrade their facilities and improve their shipbuilding practices.

May 30, 2011 — Federal o�cials briefed representatives of the Nova Scotia government on the procurement strategy.

June 14, 2011 — Federal o�cials briefed representatives of the Quebec govern-ment.

June 23, 2011 — Federal o�cials briefed representatives of the British Columbia government.

June 23, 2011 — The National Shipbuilding Procurement Strategy Secretariat received two requests from eligible bidders to extend the bid period for building large vessels from July 7, 2011 to Sept. 12, 2011.

June 30, 2011 — The request to extend the bid period is denied. A two-week extension to July 21, 2011 is granted.

July 21, 2011 — An application for a change of bidder from 7731299 Canada Inc. (Davie Canada) is received prior to bid closing.

— The request for proposal bid submissions for the National Shipbuilding Procurement Strategy closes at 2 p.m.

July 27, 2011 — A change of bidder application received from 7731299 Canada Inc (Davie Canada) on July 21, prior to bid closing, is accepted.

Oct. 19, 2011 — Irving Shipbuilding is named winner of a $25-billion contract to build 21 combat vessels over 20 to 30 years.

Canada’s Halifax class frigates were built by Irving Shipbuilding Inc. HMCS Montreal (left), HMCS Charlottetown and HMCS Fredericton participate in a task group exercise in the Atlantic last November.

(www.navy.forces.gc.ca)

(MATT DEMPSEY / Herald graphics)

The combat package includes the Royal Canadian Navy’s Arctic offshore patrol ships and the Canadian surface combatants ships.

(stx Canada Marine)

PROPOSED ARCTIC OFFSHORE PATROL SHIP

The projected schedule for the combat vessel package, based on current projections and subject to negotia-tions with the federal government:

• Negotiation of umbrella agreement (strategic sourcing arrangement) — To be concluded by the end of 2011.• Negotiation of Arctic o�shore patrol ships contract — To start in early 2012 and conclude by the end of 2012.• Arctic o�shore patrol ships design and engineering — From 2012 to 2013.• Arctic o�shore patrol ships production (six vessels) — From 2013 to 2020.• Canadian surface combatants ships design and engineering — From 2015 to 2018.• Canadian surface combatants ships production (15 vessels) — From 2018 to 2041.

Construction of 116 small vessels worth an estimated $2 billion will be set aside for competitive procurement involving Canadian shipyards other than the yards selected to build large vessels.

Regular maintenance and repair, valued at $500 million annually, will be open to all shipyards through normal procurement processes.

(Sources: Public Works and Government Services Canada and Irving Shipbuilding Inc.)

(compiled by BRUCE ERSKINE / Sta� reporter)