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The Submarine Support Contract Controversy
HMCS Windsor
The VCISSC contract is seen as an important final stage in getting the Victoria Class into active service at last. It was put out for tender in September 2006, and 3 consortia bid. In January 2007, Canadian Submarine Management Group (CSMG) of British Columbia was deemed “most compliant” due to its points rating, and picked as the preferred bidder. A lawsuit by Irving Shipbuilding caused the government to break off negotiations, however, stalling the deal.
In November 2007, it was reported the government might cancel the deal, which represents about 150 of jobs in Victoria over 15 years. That drew outrage from local BC politicians. In January 2008, however, a decision was taken to re-start those negotiations with CSMG to get the deal done. DND spokesman David Martin has told the Canadian Press news agency that those negotiations are underway, and a final contract is expected in a few months.
The decision reportedly went all the way up to Prime Minister Stephen Harper’s desk. Even so, the signing of that contract is about to face rough waters again.
HMCS Victoria
At the moment, HMCS Victoria is based at Esquimalt, British Columbia on Canada’s west coast, with a target date to re-enter active duty in 2009. The other 3 submarines, including the currently-serving HMCS Corner Brook, are based/drydocked in Halifax, Nova Scotia. The rising importance of the Pacific Rim is causing calls for 2 submarines to be based at CFB Esquimalt, but this is not yet reflected in Navy plans.
Independent-minded Canadian MP Bill Casey of Nova Scotia [Cons – Cumberland Colchester Musquodoboit Valley] is known as the Canadian Parliament’s foremost authority on the Victoria Class submarines, and his investigations began long before the HMCS Chicoutimi incident. He blasted the contract award, noting that HMCS Victoria experienced problems transiting the Panama Canal because the class is not designed to operate in warm waters, and lacks adequate cooling. Barring a sharp speed-up of ice melting that clears the Northwest Passage sooner than expected, or the use of Russia’s Northern Sea Route, a deficiency of that kind would make shuttling the subs between the maintenance yard in British Columbia and their base in Nova Scotia a difficult exercise at best.
Taking Chicoutimi home
On the contractor end, one of the rival groups was led by BAE Systems (Canada) Ltd., and included the politically-connected east coast shipping giant Irving Shipbuilding, whose share of the work has been estimated at 50% if their consortium had won. Irving company Fleetway, Inc. was the 3rd member of this consortium.
Irving Shipbuilding is doing more than just protest, though they are making a public case about the costs to the taxpayer of shuttling the subs from the Atlantic to the Pacific for maintenance. The firm also says that it intends to file a lawsuit. VP Kevin Hudson called the award a “travesty,” and said that “We are proceeding with our court action and believe our case is very strong.” The firm has already been involved in 2 court actions over this contract.
Other Irving spokespeople called on the government to re-bid the contract.
Irving spokespeople point out that CSMG partner Weir Canada Inc. drew up initial plans for the contract’s statement of work and evaluation criteria, and cite that as “a grave conflict of interest and use of insider knowledge.” The company added that the winning bid failed to meet the necessary requirements, and the total estimated value of the contract’s scope of work was not included in the price evaluation.
For its part, Canada’s Navy is unwilling to re-bid, given delays to date and the needs of its submarine fleet. One “senior defence source” put it bluntly to CP: “Going back out to tender and getting it totally put to bed means three years. We can’t afford that.”
Updates and Related News
Windsor and HMCS Montreal
June 17/08: After the HMCS Chicoutimi’s fire in October 2004, many of the submarine’s 55-member crew had to breathe in the smoke and live in the ash for days as a mater of course, as they struggled to save and return their stricken submarine. Since that date, some of the crew members have reported breathing troubles and variety of neurological disorders. claims to Veteran’s Affairs have been held up, or even rejected due to lack of information.
A report covering exactly what the sailors were exposed to was expected in the 2005 board of inquiry, but the tests were not completed until just recently. The Canadian Press news service reports that a briefing on the subject is scheduled for June 18/08 in Halifax, involving Canadian vice-admiral Drew Robertson.
June 4/08: A Minister’s briefing that admits Canada will have just one operational submarine until 2009, in order to cover 3 oceans and one of the world’s longest coast lines, has put the Victoria Class submarine program back in the spotlight. Th briefing reportedly states that:
“If pressed on submarine availability [the Minister should focus on] a maintenance regime that plans for at least one submarine to be available for operations until steady state is achieved in late 2009, after which two or more submarines will usually be operational and available at all times…. and to repair Chicoutimi as part of that submarine’s already scheduled maintenance period in 2010-2012.”
A return to service in 2012 would b 2 years later than originally planned, and involve a total sideline period of about 8 years. CanWest News | CTV | Victoria Times | UPI