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Status Report on Transformational and Major Crown Projects

 

Mid-Shore Patrol Vessels

Description

The Mid-Shore Patrol Vessels project will acquire nine (9) Mid-Shore Patrol Vessels (MSPV) for the Canadian Coast Guard (CCG) Fleet — five (5) for Fisheries Conservation and Protection (C&P) duties and four (4) for Maritime Security duties. This project serves two purposes: 1) Fleet Renewal — the acquisition of C&P patrol vessels represents the first step in modernization of the CCG fleet and will ensure the integrity of the fishery monitoring program and will provide the capacity for DFO to support the strategic role in fisheries enforcement; 2) Maritime Security — the acquisition of MSPV for Maritime Security will allow CCG, in conjunction with the RCMP, to respond to the Government's commitment to enhance the security of the nation's coasts and waterways.

Project Phase

The MSPV Project is currently in the Implementation phase.


Leading and Participating Departments and Agencies
Lead Department or Agency Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority Public Works and Government Services Canada
Participating Departments or Agencies Industry Canada; RCMP; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Public Safety Canada; Department of National Defence.


Prime and Major Subcontractor(s)
Prime Contractor Irving Shipbuilding Inc.
Major Subcontractor(s) International Contract Engineering, Damen, Lloyd's Register, MTU.


Major Milestones
Major Milestones Date
Preliminary Project Approval (PPA) August 2005
Effective Project Approval (EPA) June 2006
1st Request for Proposal (RFP) (cancelled) July 2007
Amended Effective Project Approval — to include 4 additional vessels identified in Budget 2007 December 2007
2nd RFP issued (cancelled) August 2008
3rd RFP issued March 2009
Contract Awarded August 2009
First Vessel Delivery Fall 2011
Final vessel delivery for MSPV 2013

Progress Report and Explanations of Variances

An RFP for MSPV detailed design and construction was issued on November 8, 2006. Federal Budget 2007 approved funding for 4 additional vessels for Conservation and Protection, for a total of 12 vessels. A review of the four submissions received in response to the RFP revealed that the understanding between bidders and the Crown concerning bid evaluation requirements was insufficient to allow the process to proceed. This initial solicitation was cancelled in July 2007.

The second RFP was issued in December 2007. Bids received in response to the second RFP exceeded the anticipated costs. As no additional funding could be made available, this second RFP was also cancelled.

A 3rd RFP was issued on March 31, 2009 and closed on June 5, 2009. Following a review of the bids, the contract was awarded to Irving Shipbuilding Inc. on August 13, 2009. During 2009-10, the MSPV design was finalized and production planning commenced. The first vessel will be delivered in Fall 2011 and the final vessel in 2013.

Industrial Benefits

Canadian industry will benefit from this project. The RFP requires overall Industrial Benefits equal to 100% of contract value. Regional allocation of industrial benefits is monitored by Industry Canada.


($ millions)
Current Estimated
Total Expenditure
Forecast Expenditures
to March 31, 2010
Planned Spending
2010-11
Future Years'
Requirements
227.0 24.3 44.3 158.4

 

Offshore Fisheries Science Vessels

Description

The Offshore Fisheries Science Vessels (OFSV) project will acquire three (3) OFSV for the Canadian Coast Guard (CCG) Fleet. The OFSV will replace three (3) ageing Coast Guard ships on the East and West Coasts of Canada that provide a platform from which critical scientific research and ecosystem-based management can be performed.

Project Phase

The OFSV Project is currently in the definition and design phase.


Leading and Participating Departments and Agencies
Lead Department or Agency Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority Public Works and Government Services Canada
Participating Departments or Agencies Industry Canada; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.


Prime and Major Subcontractor(s)
Prime Contractor To be determined
Major Subcontractor(s) n/a at this time


Major Milestones
Major Milestones Date
Preliminary Project Approval (PPA) October 2005
First Amended PPA November 2006
Second Amended PPA June 2009
Effective Project Approval (EPA) and Authority to Contract Fall 2010
Contract Award Spring 2011
First Vessel Delivery 2013
Delivery of last OFSV 2014

Progress Report and Explanations of Variances

Federal Budget 2005 allocated funding for two Offshore Fisheries Science Vessels (OFSV). Subsequently, Budget 2007 announced additional funding for one additional vessel, for a total of three OFSV.

In 2008, it was determined that the initial OFSV design exceeded the allocated budget. The OFSV project sought a second amendment to the PPA in order to conduct a "design to cost" exercise and develop a cost effective design so as to obtain Effective Project Approval (EPA).

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.


($ millions)
Current Estimated
Total Expenditure
Forecast Expenditures
to March 31, 2010
Planned Spending
2010-11
Future Years'
Requirements
244.0 6.3 2.7 235.1

 

Offshore Oceanographic Science Vessel

Description

The Offshore Oceanographic Science Vessel (OOSV) project will acquire a replacement vessel for the Canadian Coast Guard's largest science vessel — CCGS Hudson. This vessel was built in 1963 and its replacement is critical to fulfillment of the Department's science mandate as well as mandates of other government departments and agencies. The vessel currently operates on the East Coast of Canada.

Project Phase

The OOSV Project is currently in the definition and design phase.


Leading and Participating Departments and Agencies
Lead Department or Agency Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority Public Works and Government Services Canada
Participating Departments or Agencies Industry Canada; Environment Canada; Natural Resources Canada; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.


Prime and Major Subcontractor(s)
Prime Contractor To be determined
Major Subcontractor(s) n/a at this time


Major Milestones
Major Milestones Date
Preliminary Project Approval July 2008
Amended Preliminary Project Approval June 2009
Design Contract Award Winter 2010
Effective Project Approval and Contract Award Authority Spring 2011
Delivery of Offshore Oceanographic Science Vessel 2013

Progress Report and Explanations of Variances

Federal Budget 2007 allocated funding for the replacement of the CCGS Hudson with a new Oceanographic Science Vessel (OOSV). The OOSV project is currently preparing for detailed design phase.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.


($ millions)
Current Estimated
Total Expenditure
Forecast Expenditures
to March 31, 2010
Planned Spending
2010-11
Future Years'
Requirements
144.4 2.5 2.6 139.3

 

Polar Icebreaker Project

Description

The Polar Icebreaker project will replace the Coast Guard's largest, most capable heavy Arctic icebreaker, the CCGS Louis S. St-Laurent. The new polar icebreaker will help to strengthen Arctic sovereignty and will be able to operate in the Arctic in more severe weather conditions and for a longer period of time — 3 seasons instead of the current 2 seasons.

Project Phase

The Polar Icebreaker Project is currently in the project definition phase and vessel concept development work in ongoing in preparation for the detailed design work to follow.


Leading and Participating Departments and Agencies
Lead Department or Agency Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority Public Works and Government Services Canada
Participating Departments or Agencies Industry Canada; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Environment Canada; National Defence.


Prime and Major Subcontractor(s)
Prime Contractor To be determined
Major Subcontractor(s) n/a at this time


Major Milestones
Major Milestones Date
Preliminary Project Approval June 2009
Effective Project Approval — Target Date Summer 2013
Contract Award (Construction) Fall 2013
Vessel Delivery 2017

Progress Report and Explanations of Variances

Federal Budget 2008 allocated funding for the replacement of the Canadian Coast Guard's largest, most capable heavy Arctic icebreaker, the CCGS Louis S. St-Laurent. Following preliminary Project Approval in 2009, project activities have included completion of the mission profile, broad stakeholder engagement and validation of operational requirements.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.


($ millions)
Current Estimated
Total Expenditure
Forecast Expenditures
to March 31, 2010
Planned Spending
2010-11
Future Years'
Requirements
800.0 7.8 8.0 784.2