Canada has officially provided clear bidding instructions to the two competing companies tasked with constructing the navy’s upcoming submarines, as revealed by CBC News. The instructions were sent to ThyssenKrupp Marine Systems (TKMS) of Germany and Hanwha Ocean Co. Ltd. of South Korea last week. James Rourke, an official in the recently established federal Defence Investment Agency, confirmed the delivery of the document outlining the government’s expectations and the criteria for decision-making to both eligible bidders.
A section of the extensive 40-page document has been reviewed by CBC News to verify its authenticity. The government will prioritize the sustainment package offered by each company for the fleet of 12 submarines post-purchase, with this aspect accounting for 50% of the evaluation score. Additionally, 20% of the decision will consider the platform itself, while the financial strength of the company will contribute 15%, and the remaining 15% will focus on the economic benefits related to the contract.
Rourke refrained from disclosing specific details but emphasized the importance of maximizing economic benefits for Canada and utilizing the domestic defence industry to generate high-quality jobs and foster economic growth. Two defense sources indicated that responses from both companies are anticipated by March.
Following initial interest from five firms to construct submarines for Canada, Prime Minister Mark Carney’s government narrowed down the selection to ThyssenKrupp Marine Systems and Hanwha Ocean Co. Ltd. The project aims to replace Canada’s aging Victoria-class submarines and could potentially amount to a $24 billion investment solely for the procurement of the submarines. The government is keen on establishing sustainment facilities on both coasts to create job opportunities.
Former top procurement official at the Defence Department, Alan Williams, expressed initial concerns regarding the rapid downselection to two bidders but acknowledged the importance of transparency in the process, given the magnitude of the purchase. The government’s commitment to leveraging defence spending to bolster the Canadian economy has been underscored by Industry Minister Mélanie Joly. However, caution has been advised to avoid controversies similar to the debate surrounding the plan to acquire F-35 stealth fighters from Lockheed Martin.
The bidding process for the submarine program is underway, with a focus on impartiality and adherence to legal protocols. Political negotiations surrounding defense procurement projects, such as the submarine program, are cautioned against to ensure a fair and transparent process.