Federal Marine Procurement Outlook Session

1. Federal Marine
Procurement Outlook
Session
Mari-Tech Conference
Montréal, Québec
April 19-20-21, 2017

2. 2
Agenda
Time Subject Name of presenter Department
13:00-13:05 Introduction Ms. Lisa Campbell, ADM Defence and Marine
Procurement
PSPC
13:05-13:15 Opening remarks Mr. Mathew Crawley, DG Marine Services and Small
Vessels
PSPC
13:15-13:35 Federal Contracting Overview Mr. Martin Desnoyers, Director Logistiques, Refit and
Small Vessles
PSPC
13:35-14:00 Leveraging procurement for
industrial benefits in support of
the marine sector
Ms. Sharon Irwin, Senior Director Space, Marine and
Defence Directorate
Ms. France Pitre, Director Marine Engineering
ISEDC
14:00-14:15 RCMP Outlook Mr. Darren Mierau, National Marine Fleet Manager RCMP
14:15-14:30 Break
14:30 -15:00 CCG and DFO Outlook Ms. Tracey Clarke, Director Marine Engineering
Mr. Robert Samson, Program Manager Vessel Life
Extension – Mid Life Modernization
CCG
15:00-15:30 DND Outlook Cmdre. Simon Page, DG Maritime Equipment Program
Management
DND
15:30-16:15 Panel - Questions & Answers
16:15-16:30 Wrap-up Mr. Mathew Crawley DG Marine Services and Small
Vessels
PSPC

3. 3
Why This Meeting and Why Now?
 Sustainment Initiative
 Value for Money, Performance, Flexibility, Industrial Benefits
 National Shipbuilding Strategy
 Renewing and Sustaining the Fleets of the Coast Guard and Navy while supporting
and industry
 Defence Procurement Strategy
 Leveraging, key industrial capabilities, improving defence procurement
 Procurement Modernization
 Making federal procurement more accessible and effective
 SMART Procurement
 Expert advice, early and ongoing engagement, whole of Government decision making
 Capacity Building
 Recruitment, Learning and Professional Development

4. 4
Why This Meeting and Why Now?
 Marine Procurement is a Priority!
 Constructive and open dialogue with industry is key
 Inform industry of the upcoming Marine requirements
 Provide industry what is needed to successfully plan and fully
participate in Government of Canada procurement processes
 Provide an opportunity for feedback and respond to queries
Canada looking for industry feedback to streamline and improve
federal marine procurement and make it more accessible

5. 5
Desired Outcome
The purpose of this presentation is to:
Provide an update on the National Shipbuilding Strategy
Educate participants on the type of contractual agreements
and sourcing strategies used by the Federal Government to
meet its marine requirements
Set the stage for other government departments’
presentations later this afternoon
Receive valued Industry feedback in the Government to
Business meetings Thursday and Friday

6. 6
The National Shipbuilding Strategy (NSS)
 The NSS was launched in 2010. It provides a new program approach to
meeting the Canadian Coast Guard’s and the Royal Canadian Navy’s
shipbuilding requirements
 The NSS objectives are:
 Deliver timely and affordable ships for the RCN and CCG
 Sustain a strong and viable Canadian marine industry
 Maximize economic benefits for Canadians
 Six years since its launch, the NSS has resulted in:
 Significant new investment in the Canadian marine sector
 The start of construction on two new classes of large vessels (first since the mid-
nineties)
 Numerous new small vessel projects underway
 Contracts awarded to date are generating economic benefits in Canada

7. 7
National Shipbuilding
Strategy
Large Vessels:
Combat
Large Vessels:
Non-Combat
Small Vessels
Vessel Refit,
Repair and
Maintenance
Other Marine
Procurements
Vessel
Chartering
Vessel
Disposal and
Emergency
Response
Equipment
Procurement
Engineering
Services

8. 8
Marine Achievements for 2016-17
 Several key marine service contracts
 Halifax-class Modernization/Frigate Life Extension (HCM/FELEX) project
(underway) – $4.3B
 All 12 frigates, five on the West Coast and seven on the East
Coast, have completed the refit portion of their modernization as of
November 2016.
 AOPS/JSS In-Service Support (AJISS) contract (negotiations closed) –
est. $5.2B
 Negotiations with top bidder concluded March 2017, contract award
expected later in 2017
 Construction and delivery of small vessels is
underway
 CCG contract awarded to Kanter Marine in St. Thomas for 7 Hydrographic
Survey Vessels. All 7 will be delivered by Fall 2017.
 Construction of 12 Search and Rescue (SAR) Lifeboats is underway at 2
Canadian shipyards - Hike Metal Products from Wheatley, Ontario and
Chantier Naval Forillon in Gaspé, Québec. Delivery of first 2 vessels
expected later this year.
 CCG contract for 2 Channel Survey Sounding Vessels awarded to Kanter
Marine in St. Thomas, ON, on October 31st
The HCM/FELEX project includes both the
modernization of the combat systems and a planned
mid-life ship refit to ensure the frigates remain effective
throughout their service life
Chantier Naval Forillon (Gaspé, Quebec) was one of
two Canadian shipyards awarded contracts to build the
SAR Lifeboats

9. 9
Marine Achievements for 2016-17 Cont
 Canadian Coast Guard Interim Icebreaking and Towing capabilities
 Industry Engagement. Responses being analysed this spring and will inform the
Canadian Coast Guard Fleet Renewal Plan.
 Disposals
 HMCS PROTECTEUR and HMCS ALGONQUIN.
 HMCS IROQUOIS (awarded October 11, 2016)
 Upcoming Disposals
 HMCS Preserver and CFAV Quest (March 14, 2017).
 MV Princess of Acadia ( March 23, 2017)
 MV Kathryn Spirit ( upcoming 2017-2018)

10. 10
Expected Impact of Marine Contracts Awarded in 2016

11. 11
Significant Progress has been made
Disposal of HMCS
Proptecteur
5 Hydrographic Survey Vessels
were delivered by Kanter Marine
Ltd. (St. Thomas, Ontario) to
DFO-CCG
Completion of all Halifax Class
Modernization…
AJISS
Negotiations
with top bidder
closed
(March 2017)
OFSV
Cut Steel of OFSV 3
(February 2017)
Mari-Tech 2017
Engagement with
Canadian Industry on
federal procurement
outlook
(April 2017)
CCG Interim Capability
Request for Information closed
(February 2017)
AOPS
AOPS 2 keel laying
ceremony
(May 2017)
NSS
Annual Report
released (Spring 2017)
CANSEC 2017
Engagement with
Canadian Defence
Industry and public
update on Enhancements
to NSS
(May – June 2017)
Small
Vessels
Delivery of 5
Hydrographic
Survey Vessels to
CCG
(as of March 2017)
JSS
$230M
Design and
Engineering contact
award announcement
(February 2017)
CSC
Request for
Proposal closes
(Summer 2017)
Conversion of MS Asterix to Interim
Auxiliary Oiler Replenishment Ship
Kanter Marine to
construct 2 Channel
Survey Sounding Vessels

12. 12
• Contracts awarded across the country
 Since 2012, the Government has signed $3.92
billion in NSS contracts
 In 2016, the Government signed approximately
$454.5 million in contracts
• Canadian industry participation in 2016
(Data provided by shipyards)
 129 Canadian suppliers awarded over $194
million in contracts
 99 small and medium-sized enterprises across
Canada afforded over $134.6 million in new
contract activity
• Industrial and Regional Benefits
 From 2012-2016, over $791 million of Industrial
and Regional Benefits commitments were
completed.
 Approximately one-third of that work was
performed by small and medium-sized enterprises
Economic Benefits to date

13. 13
NSS Annual Report to be Released in
Spring 2017
 The NSS Annual Report is aligned with the Government’s pledge to be open and
transparent.
 Content
 Government Statement
 Year in Review: Dec. 30, 2015 to Dec. 30, 2016
NSS Enhancements, rebuilding shipbuilding industry,
economic benefits and updates on projects for all
three NSS pillars.
 NSS in Action: Success stories highlighting
the positive impacts on Canadian communities.
 Year Ahead

14. 14
PART II
Federal Contracting Overview

15. 15
Roles and Responsibilities
Departments (National Defence, Fisheries and Oceans,
Royal Canadian Mounted Police, Transport)
 Responsible to define the requirements and to participate in the
elaboration of procurements strategies taking into consideration their
fleet renewal plan
Public Services and Procurement Canada (PSPC)
 Responsible to manage the overall procurement process on behalf of
departments including all industry engagement activities
Innovation, Science and Economic development (ISED)
 Responsible to maximize economic benefits to Canada in marine
procurement strategies

16. 16
Sourcing Strategies
 Competitive:
 Request For Proposals (RFP)
 Invitation to Tender (ITT)
 Standing Offers and Supply Arrangements
 Pre-Qualified Source-List (Open to pre-qualified suppliers)
 Non-Competitive

17. 17
Sourcing Strategies - Competitive
 Request for Proposals (RFP)
 Issued using Federal Government’s Electronic Tendering Service (GETS), e.g.
BuyandSell website.
 Bids are evaluated using the bid evaluation methodology contained within the RFP (usually
using a combination of mandatory and point-rated criteria)
 Contract is awarded to a responsive bidder in accordance with the contractor selection
methodology identified within the RFP (for example, the responsive bid offering best value
to Canada)
 Invitation to Tender (ITT)
 Issued using Federal Government’s Electronic Tendering Service (GETS), e.g.
BuyandSell website.
 All requirements are mandatory including the date of delivery. Bids need to be 100%
compliant with the requirements criteria of the ITT to be considered
 Contract is awarded to the lowest-priced compliant bidder

18. 18
Sourcing Strategies - Competitive
• Standing Offers and Supply Arrangements:
 A Standing Offer is issued when one or more departments repetitively order the same goods or
services, and actual demand is not known in advance and delivery is to be made when a requirement
arises.
 A Supply Arrangement (SA) is a method of supply that establishes a framework to solicit bids from
prequalified suppliers and permit the expeditious processing of legally binding contracts for goods
or services. SA’s include a minimum set of terms and conditions which would apply to each
contract.
 An SA is not a contract and neither party is legally bound as a result of the signing of this
document alone.
 Use of a Pre-Qualified Source-List
 A Notice of Proposed Procurement (NPP) is issued on BuyandSell to inform suppliers of an
upcoming requirement for which suppliers must pre-qualify prior to obtaining a copy of the formal
RFP. The NPP identifies the pre-qualification criteria potential bidders must achieve and invites
suppliers to submit a Statement of Capabilities demonstrating how they meet the identified criteria.
 Responses are evaluated against the pre-qualification criteria identified in the NPP to determine
eligibility. Only suppliers meeting the pre-qualification terms will receive a copy of the RFP.

19. 19
Engagement with Industry
 Key component in the development of procurement strategies
 Engagement with industry may take many forms such as:
 Letter of Interest (LoI)
 Request For Information (RFI)
 One-on-one consultations with suppliers
 Industry days
 Bidders Conference
 Engaging industry through early and ongoing consultation and dialogue
enables the identification of the various complexities and risks
associated with a particular requirement, enabling the development of
mitigation strategies
 Acquiring the knowledge of the requirement and its related complexities
and risk better positions for all stakeholders for a successful
procurement process

20. 20
Buyandsell.gc.ca is Open
Buyandsell.gc.ca is the platform for the Government
Electronic Tendering Service (GETS)
Free access to federal tenders and other procurement
related information, available as open data (machine
readable)
Buyandsell.gc.ca supports the GC, Industry and the
Public

21. 21
Buyandsell.gc.ca/tenders
 Buyandsell.gc.ca/tenders is the Government Electronic Tendering
Service (GETS) where the Government of Canada posts bid
solicitations and allows suppliers to search for bid opportunities on-line
 Buyandsell.gc.ca/tenders is the official site for Canada to meet its trade
agreement obligations and the authoritative source for Government of
Canada tenders
 Any visitor can access Buyandsell.gc.ca/tenders free of charge and
without restrictions, including access to all Government of Canada
tender notices and information on previously awarded contracts by
Public Works and Government Services Canada

22. 22
Support and Information from the Office
of Small and Medium Enterprises
 PSPC’s Office of Small and Medium Enterprises (OSME) assists SMEs in
better understanding how the government buys goods and services by
raising awareness of opportunities and by providing the following
information services:
 Buyandsell.gc.ca which provides access to federal procurement information and open
data including bid opportunities (tenders), standing offers and supply arrangements,
and contract history;
 Free seminars and webminars and one-on-one sessions to assist suppliers in
understanding federal procurement;
 a 1-800 InfoLine for suppliers who have questions about the procurement process and
related tools.
 OSME has a network of six regional offices across Canada. Contact the
OSDME regional office nearest you or call the InfoLine at 1-800-811-1148.
 Additional information at: https://www.tpsgc-pwgsc.gc.ca/app-acq/pme-
sme/index-eng.html

23. 23
The Federal Marine Requirements
for 2017-2018 are:
 Construction to replace current or add new vessels
 In-Service-Support / Maintenance
 Repair and Overhaul
 Vessel Life Extension and Mid-Life Modernization
 Leasing / Chartering
 Disposal

24. 24
Departments with Marine Requirements
 The Department of Fisheries and Oceans/The Canadian Coast
Guard:
The Canadian Coast Guard (CCG) owns and operates the federal government’s civilian
fleet, and provides key maritime services to Canadians. As a Special Operating Agency
of Fisheries and Oceans Canada (DFO), the CCG helps DFO meet its responsibility to
ensure safe and accessible waterways for Canadians. The CCG also plays a key role in
ensuring the sustainable use and development of Canada’s oceans and waterways
 The Fleet:
115 Boats and 33 vessels from which:
 13 Heavy, Medium and Light Icebreakers
 5 Medium Endurance Multitasked Vessels
 11 Offshore and Mid Shore Patrol Vessels

25. 25
Departments with Marine Requirements
 The Royal Canadian Navy
The RCN supports the protection of Canadian sovereignty, defends North America, and
contributes to international peace and security, including through a renewed commitment
to United Nations (UN) led conflict prevention and peace support.
 The Fleet:
 Canadian Patrol Frigates - 12;
 Long Range Patrol Submarines – 4;
 Maritime Coastal Defence Vessels – 12;
 Destroyer – 1; and,
 Patrol Craft Training Vessels – 8.

26. 26
Departments with Marine Requirements
 Transport Canada
Transport Canada is responsible for developing regulations, policies and services of
transportation in Canada.
 The Fleet:
 Ferries over 1000 tonnes – 4
 Royal Canadian Mounted Police (Marine Mission)
The RCMP is responsible for the enforcement of the Criminal Code and Provincial
Statutes and Federal Operations including Shiprider, Integrated Border Enforcement,
National Underwater Recovery Team (URT) Training and Operations, National
Emergency Response Team (ERT) Training and Operations and Maritime Port Security
 The Fleet:
409 active vessels across the country.

27. 27
The roll-out of the Afternoon Session
 Innovation, Science and Economic Development to present leveraging
procurement for industrial benefits in support of the marine sector
 Department of Fisheries and Oceans and the Canadian Coast Guard,
Department of National Defence, Royal Canadian Mounted police to
present their requirements
 Panel Questions and Answers
 Closing Remarks

28. 28
PART IV
Closing Remarks

29. 30
Questions