Canada: Bidders Fail to Meet Budget Requirements

Canada: Bidders Fail to Meet Budget Requirements (NSI News Source Info) GATINEAU - August 25, 2008: The Minister of Public Works and Government Services Canada (PWGSC), the Honourable Christian Paradis, today announced the termination of two procurement processes involving the shipbuilding industry. Canada has canceled two naval programs because bids were over budget, including that for three Joint Support Ships to replace Protecteur-class fleet oilers.

After receiving and evaluating the mandatory requirements for the Joint Support Ship Project from the bidders, the Crown has determined that the proposals were not compliant with the basic terms of the Request for Proposals (RFP). Among other compliance failures, both bids were significantly over the established budget provisions. This project was initiated to replace the Protecteur-Class auxiliary oiler replenishment vessels with three multi-role ships to be delivered to the Canadian Forces between 2012 and 2016. In addition, PWGSC has also announced the cancellation of a competitive process for the acquisition of twelve mid-shore patrol vessels on behalf of the Canadian Coast Guard. A Request for Proposal was issued in December 2007. However the bid prices exceeded the anticipated costs. “These vessels are a key priority of the Government of Canada. However, the government must ensure that Canadian taxpayers receive the best value for their money”, said Minister Paradis. The Department of National Defence and the Department of Fisheries and Oceans are currently considering the next steps. The government is committed to procure, repair and refit vessels in Canada according to the government’s Buy Canada policy.