The warship that will form the backbone of the country’s future maritime force was originally rejected by Canada’s defence department years ago as not capable of meeting the needs of the navy, according to documents obtained by Postmedia.
The Liberal government announced Friday that it had entered into a contract with Irving Shipbuilding to acquire new warships based on the Type 26 design being built in the United Kingdom.
Procurement minister Carla Qualtrough said at the announcement the Type 26 meets Canada’s requirements and the government feels it is the best design for the navy. Government officials say the design will be modified for Canadian needs and ultimately 15 of the ships will be constructed in the $60-billion Canadian Surface Combatant program.
The embrace of the Type 26 is a change from the Department of National Defence’s earlier examination of the vessels as it was being developed by the United Kingdom’s defence ministry. The DND had its eye on the Type 26 as far back as 2011 but rejected taking part in the program as well as any interest in the design as it did not meet Canadian needs, according to briefings obtained by Postmedia through the Access to Information law.
An examination into the Type 26 by the DND noted that the design could be modified for Canadian needs but concluded the “technical and programme risk would be high.”
The DND also gave serious consideration in 2010 and 2011 to join the U.K. on the Type 26 program but decided against that because of the cost, risk, and potential that Canadian firms would not get enough work out of a joint venture.
The 2011 review also highlighted issues with the Type 26 including crew size and speed. “Meeting tactical speed requirements, having sufficient crew to meet the projected Canadian operational tempo and ensuring relevance for thirty plus years of service are distinct Canadian requirements,” the review noted.
“While the T26 GCS design could be evolved to meet these needs, this would entail additional cost … and still include significant risks,” it added.
Over the years the original capabilities of the ship examined by the DND were further reduced by the U.K.
But the Canadian government has now completely reversed its opinion of the ship. With Canada ordering 15 of the warships, the Royal Canadian Navy will be the number one user of the Type 26 in the world.
The U.K. had planned to buy 13 of the ships but cut that down to eight.
Australia plans to buy nine of the vessels designed by BAE of the United Kingdom.
The Liberal government’s announcement Friday provides for an initial $185 million to Irving Shipbuilding for design work on the Type 26.
Canada’s purchase is the most complex and costly government acquisition in the country’s history, according to federal officials. Negotiations for the deal took place over a three-month period, a record considering the massive scope and risk of the project, according to industry observers.
The entry of the BAE Type 26 warship in the Canadian competition was controversial from the start and sparked complaints the procurement process was skewed to favour that vessel. Previously the Liberal government had said only mature existing designs or designs of ships already in service with other navies would be accepted, on the grounds they could be built faster and would be less risky. Unproven designs can face challenges as problems are found once the vessel is in the water and operating.
But the requirement for a mature design was changed and the government and Irving accepted the BAE design, though at the time it existed only on the drawing board. Construction began on the first Type 26 frigate in the summer of 2017 for Britain’s Royal Navy, but it has not yet been completed. Company claims about what the Type 26 ship can do, including how fast it can go, are based on simulations or projections.
The two other bidders in the Canadian program had ships actually in service with other navies so their capabilities are known.
Both Irving and the federal government have insisted the procurement was conducted in a way that ensures all bidders are treated equally, with no unfair advantage given to any individual bidder.
Qualtrough said during her announcement Friday the government has done its due diligence. “This process was essential to ensure the eventual winning bidder is financially capable of delivering on the project, meets combat systems performance requirements and offers intellectual property rights that support our ability to operate and maintain the ships in the long run,” she said.
Last year, Alion, one of the companies that submitted a bid on the project, filed a complaint with the Canadian International Trade Tribunal alleging the process was flawed and that BAE’s Type 26 can’t meet Canadian requirements. Alion has also filed a legal challenge in federal court, asking for a judicial review of the decision by Irving and the government to select the BAE design. Alion argued the Type 26 cannot meet the stated mandatory requirements, including speed, that Canada set out for the new warship, so it should be disqualified.
The CITT, however, rejected that complaint on Jan. 30, saying the U.S. firm did not have the standing to file a complaint before the tribunal. The CITT offered no other explanation.
