Canada has officially provided clear bidding instructions to the two competing companies interested in constructing the new submarines for the navy, as per information obtained by CBC News. The instructions were sent to ThyssenKrupp Marine Systems (TKMS) from Germany and Hanwha Ocean Co. Ltd. from South Korea last week. James Rourke, a representative from the recently established federal Defence Investment Agency, confirmed the issuance of the document, which details the government’s expectations and the criteria that will influence the decision process, to both eligible bidders.
A portion of the extensive 40-page document has been reviewed by CBC News to validate its authenticity. The government will heavily weigh the sustainability package that each company can provide for the 12-submarine fleet post-purchase, with this factor accounting for 50% of the evaluation score. The platform itself will carry a 20% weight in the decision-making process, while the financial stability of the company will contribute 15%. The remaining 15% will focus on the economic benefits associated with the contract.
Rourke refrained from commenting on specific details but emphasized the government’s stance on maximizing economic benefits for Canada, promoting the defense industry to create quality jobs and spur economic development. Due to the sensitive nature of procuring advanced submarine capabilities, no further comments were provided concerning national security and sovereignty aspects.
According to sources within the defense sector, the Canadian government anticipates receiving responses from both contenders by March. Initially, five firms expressed interest in the submarine construction project for Canada, but Prime Minister Mark Carney’s administration narrowed it down to the current two contenders last summer.
Carney has personally visited the shipyards and inspected the facilities and submarine models offered by both companies. The project aims to replace Canada’s aging Victoria-class submarines and carries an estimated value of up to $24 billion solely for the boat procurement. The government intends to establish sustainment facilities on both coasts to generate employment opportunities in Canada.
Alan Williams, a former senior procurement official at the Defence Department, initially raised concerns about the swift downselection to two bidders but expressed satisfaction with the formal issuance of instructions. Given the magnitude of the purchase, he stressed the importance of transparency in the process.
The federal government, led by Industry Minister Mélanie Joly, has expressed a commitment to leveraging defense spending to boost the Canadian economy. However, Williams cautioned against political maneuvering, citing the contentious debates surrounding the procurement of F-35 stealth fighters from Lockheed Martin for the air force.
The government is deliberating whether to proceed with the full order of submarines or reduce the quantity and explore alternative acquisitions. Joly has engaged in discussions with Swedish defense company Saab regarding their Gripen E fighter jet as an alternative to the F-35. Williams emphasized the need for a transparent and fair process in the submarine program and discouraged political interference at this stage.
“The fact that we were having ministers going out is really fearful to me,” Williams remarked, advising ministers to exercise caution to avoid legal repercussions from undue interventions.
