HALIFAX CLASS WORK PERIOD CONTRACTS

Trade Agreement: NONE
Tendering Procedures: Generally only one firm has been invited to bid
Non-Competitive Procurement Strategy: Government Objectives Representing Best Interests/Value to Govt
Comprehensive Land Claim Agreement: No
Vendor Name and Address: 
Chantier Davie Canada Inc.
22 rue George-D.-Davie
Lévis Quebec
Canada
G6V0K4
Nature of Requirements: 

Halifax-class Work Period Contracts

1. Advance Contract Award Notice (ACAN)

An Advance Contract Award Notice (ACAN) is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.

2. Background

In 2010, the Government of Canada announced the National Shipbuilding Strategy to renew and maintain Canada's federal fleet of combat and non-combat vessels over the coming decades. The third component of this strategy stipulated that Canadian shipyards could compete for repair, refit and maintenance requirements for the ships to ensure they meet their full operational life and maintain their reliability and safety for operation. 

In late 2016, Public Services and Procurement Canada (PSPC) issued a Request for Information (RFI) to inform industry of the forthcoming requirement for maintenance services for the Royal Canadian Navy’s (RCN) existing Halifax-class frigates.  

Following the RFI, the Government of Canada undertook extensive industry engagement, which included one-on-one sessions with prospective suppliers in June 2017.  These engagements, along with market survey processes, identified three shipyards (2 East and 1 West) capable of performing the level of maintenance services needed to support the Halifax-class through to the end of life.  

The volume and nature of the Halifax-class work activity is such that two yards are required on the East Coast to meet the maintenance requirements of seven ships, while one yard is assessed as sufficient on the West Coast. 

This ACAN is being issued under the National Shipbuilding Strategy to confirm that no other shipyard is capable of performing this work, based on the criteria identified herein.

The RCN currently operates twelve (12) Halifax-class ships and intends to continue operating them for approximately another 2 decades.  Seven (7) ships are assigned to Maritime Forces Atlantic and five (5) ships are assigned to Maritime Forces Pacific. The Halifax-class recently completed a Mid-Life Refit (MLR) to update/upgrade some of the platform and most of the combat systems.

The Royal Canadian Navy will continue to operate the Halifax-class for several decades and intends to establish Work Period Contracts to the Halifax-class end of life.  The contracts will provide platform maintenance support services in order to maintain long term operational capability and a seamless transition from the current Multi-ship contracts.  The Contract term will be until the end of the operational life of the Halifax-class frigates or earlier at Canada’s sole discretion. 


3. Definition of the Requirement

The Department of National Defence has a requirement to establish three (3) long term, performance based contracts to ensure that the Royal Canadian Navy (RCN) frigates are sustained to the end of their operational life. It is anticipated that the establishment of long-term work period contracts will facilitate long term planning for all stakeholders, enhance relationship building while evolving contracted services over the in-service life of the Halifax-class. It will also provide effective and efficient ship level maintenance support while meeting the RCN readiness and availability requirements and obtaining best value based on demonstrated performance and continuous improvement.
In order to effectively support the Halifax-class ships on both coasts, there will be three (3) separate Work Period Contracts, two East Coast and one West Coast, for implementing platform maintenance and sustainment work, installing Engineering Changes (ECs) as well as providing material and technical services. The key capabilities supplied by the shipyards are the work force capacity, skills and specialized facilities.  These ensure the hull, steel structures and platform equipment are maintained within acceptable standards for a frigate when docked every five (5) years in accordance with the Management Readiness Plan (MRP), a program schedule for the class.  Work periods will be aligned to meet the MRP at Canada’s discretion to meet operational requirements.

The core work activities include the following categories:

a. Engineering Changes:  This work includes additions, deletions or modifications to the ships configuration to address equipment obsolescence and/or capability enhancements;

b. Standard Planned Maintenance (PM): This work includes the execution of planned standard ship maintenance repair specifications for platform systems and ship structures; and

c. Corrective Maintenance (CM): This work includes repairs for known and unknown defects such as replacement of steel for internal, external structures and piping systems based on ship’s condition and surveys. 

4. Criteria for assessment of the Statement of Capabilities (Minimum Essential Requirements)

Any interested supplier must demonstrate by way of a statement of capabilities that it meets the following requirements as amplified in Annex A: 

a) The supplier must be a Shipyard that is incorporated in Canada.

b) The Shipyard must demonstrate a cash flow for labour and material averaging $5M per month on a single Government Marine Level Three (3) Maintenance project * with a duration of no less than 5 months occurring within the last five (5) years.

*Government Marine Level Three (3) Maintenance is defined as maintenance that can be performed by industry with specialized tools, skill sets, equipment, and facilities normally available only in a shipyard. This Level Three (3) Maintenance must include Government Marine: ship repair, and/or ship refit, and/or ship conversion.)

c) The shipyard has a production labour force of at least 250 workers (including, but not limited to: fitter, welder, electrician, rigger, machinist, painter, lagger, and carpenter trades) with experience in executing a single Government Marine Level Three (3) Maintenance project implemented within the past five (5) years.

d) i) The shipyard must be fully-operational with year round access to an existing certified dry dock that has the capability to dry dock Halifax-class ships within the ships’ area of origin**. 
 
• The particulars  of Halifax-class ship: 

a. Construction - Steel; 
b. Length Overall (LOA) - 140m; 
c. Length Between Perpendiculars (LBP) - 130m; 
d. Breadth Extreme - 20m; 
e. Displacement - 5000 t (Class Average); 
f. Bearing Length on Keel Blocks - 90m; and 
g. Linear Load - 110t/m. 

• The certified dry dock must accommodate the rudder removal and C5 dome testing for the Halifax-class. Rudder removal requires 3.582m (11.75 ft) vertical height between the vessel baseline and dock bottom.  The C5 dome requires 2.75m (9.00 ft) vertical height between the vessel’s baseline and dock bottom.

ii) The shipyard must simultaneously accommodate two (2) Halifax-class ships (at least one in dry dock and one alongside) at the contractor’s facility. 

iii) The shipyard must have existing on-site capabilities that includes Outfitting, Steel Fabrication shop, Machine shop, Pipe fitting shop, Electrical shop, Painting and Stores facilities.

**Area of Origin: 
 Eastern Canada - Atlantic Canada (Newfoundland and Labrador, Prince Edward Island, Nova  Scotia and New Brunswick), Quebec and Ontario.  
 Western Canada - All shipyards west of Ontario and those in the Yukon, Nunavut and Northwest  Territories)

e) The shipyard has a Project Manager with no less than seven (7) years of Project Management experience within the last twelve (12) years. The experience must include the management of at least one Government Marine Level Three (3) Maintenance project of no less than 400,000 hours. 

5. Applicability of the trade agreement(s) to the procurement

The requirement is not subject to the provisions of the Canadian Free Trade Agreement (CFTA), the North American Free Trade Agreement (NAFTA), the World Trade Organization Agreement on Government Procurement (WTO-AGP), the Canada-Chile Free Trade Agreement (CCFTA), the Canada-Peru Free Trade Agreement (CPFTA), the Canada-Colombia Free Trade Agreement (CColFTA), the Canada-Panama Free Trade Agreement (CPanFTA) if it is in force, the Canadian Free Trade Agreement (CFTA) or The Canada-European Union Comprehensive Economic and Trade Agreement (CETA). This is in accordance with the national security exemptions provided in CFTA, Article 801, NAFTA ­ Article 1018 (1): Exceptions, section 1, and WTO­AGP Article III : Security and General Exceptions, subparagraph 1. 

6. Economic Benefits

Canada’s Industrial and Technological Benefits (ITB) policy, including Value Proposition, will be a mandatory element of the Halifax-class Work Period Contracts. The ITB policy is administered by Innovation, Science and Economic Development with the support of the Regional Development Agencies.  To obtain information about Canadas ITB policy, visit www.ic.gc.ca/itb.

7. Justification for the Pre-Selected Supplier(s)

Following an extensive Request for Information process this shipyard is one of the two known entities that meet the Statement of Capability for the eastern area of origin and two shipyards are required to meet Halifax Class maintenance requirements on the East Coast. 

8. Period of the proposed contract or delivery date

Spring 2019 to the end of the operational life of the Halifax-class frigates or earlier at Canada’s sole discretion.

9. Name and address of the pre-identified supplier

Chantier Davie Canada Inc.
22 rue George-D.-Davie
Lévis, Québec
Canada
G6V 0K4

10. Suppliers' right to submit a statement of capabilities 
Suppliers who consider themselves fully qualified and available to provide the services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The supplier must clearly demonstrate their compliance to the statement of capability requirements as advertised in Annex A.

11. Closing date for a submission of a statement of capabilities 

The closing date and time for accepting statements of capabilities is November 16, 2018 at 2:00 p.m. EST.

12. Inquiries and submission of statements of capabilities 

Should you have any questions concerning this requirement, contact the contracting officer identified below.

Inquiries and statements of capabilities are to be directed to:

Jay Edwards
Contracting Manager
Marine Services and Small Vessels
Telephone:  819-939-3235
E-mail:  Jay.Edwards@tpsgc-pwgsc.gc.ca

The preferred method of document transmission is via e-mail. The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear in the title of the e-mail or, in the case of a letter on the outside of the envelope in block letters. 

Documents may be submitted in either official language of Canada.

The Crown retains the right to negotiate with suppliers on any procurement.

Delivery Date: Above-mentioned

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Annex A - Halifax-class Work Period Contract (WPC): Statement of Capability

a. Canadian Company - Mandatory

WPC Statement of Capability: The supplier must be a Shipyard that is incorporated in Canada.

Proof of Compliance: Provide a copy of the Certificate of Incorporation. Provide supplier information including company name, address, email address, phone number.

b. Financial - Mandatory

WPC Statement of Capability: The Shipyard must demonstrate a cash flow for labour and material averaging $5M per month on a single Government Marine Level Three (3) Maintenance project * with a duration of no less than 5 months occurring within the last five (5) years.

Proof of Compliance: Provide a summary of a Government Marine Level Three (3) Maintenance project that describes the amount of revenues and disbursements as well as the relative start and end dates of the project, complete with client contact information. Attest to having a cash flow of no less than $5M/month on the single Government Marine Level Three (3) Maintenance project *.

c. Human Resources - Mandatory

WPC Statement of Capability: The shipyard has a production labour force of at least 250 workers (including, but not limited to: fitter, welder, electrician, rigger, machinist, painter, lagger, and carpenter trades) with experience in executing a single Government Marine Level Three (3) Maintenance project * implemented within the past five (5) years.

Proof of Compliance: Provide a list with number of workers for each trade used on a Government Marine Level Three (3) Maintenance project implemented within the past five (5) years.

d. Facilities - Mandatory

d-i) WPC Statement of Capability: The shipyard must be fully-operational with year round access to an existing certified dry dock that has the capability to dry dock Halifax-class ships within the ships’ area of origin**. 
 
The Particulars of Ship: 
a. Construction - Steel; 
b. Length Overall (LOA) - 140m; 
c. Length Between Perpendiculars (LBP) - 130m; 
d. Breadth Extreme - 20m; 
e. Displacement - 5000 t (Class Average); 
f. Bearing Length on Keel Blocks - 90m; and 
g. Linear Load - 110t/m 

The certified dry dock must accommodate the rudder removal and C5 dome testing for the Halifax-class. Rudder removal requires 3.582m (11.75 ft) vertical height between the vessel baseline and dock bottom.  The C5 dome requires 2.75m (9.00 ft) vertical height between the vessel’s baseline and dock bottom.

d-i) Proof of Compliance: Provide objective evidence as to how the respondent will have access to a year round certified dry dock to dock the Halifax-class ships. 

Provide drawings/dimensions of the certified dry dock that the respondent will have access to demonstrate minimum clearances for Halifax-class rudder removal and C5 Dome Testing.

d-ii) WPC Statement of Capability: The shipyard must simultaneously accommodate two (2) Halifax-class ships (at least one in dry dock and one alongside) at the contractor’s facility.

d-ii) Proof of Compliance: Provide a description of the facility(s) showing how two (2) Halifax-class ships can be accommodated within the facility(s)

d-iii) WPC Statement of Capability: The shipyard must have existing on-site capabilities that includes Outfitting, Steel Fabrication shop, Machine shop, Pipe fitting shop, Electrical shop, Painting and Stores facilities.

d-iii) Proof of Compliance: Provide a description of the on-site capabilities for all manufacturing capability within their Shops.  

e. Project Management - Mandatory

WPC Statement of Capability: The shipyard must demonstrate they have a Project Manager with no less than seven (7) years Project Management experience within the last twelve (12) years.  The experience must include the management of at least one Government Marine Level Three (3) Maintenance project of no less than 400,000 hours. 
 
Proof of Compliance: Provide a summary of the Project Management experience from Government Marine Level Three (3) Maintenance project.

Describe the scope of the work, the project(s)’ team size, total dollar value of each project, and duration of each project.  

*Government Marine Level Three (3) Maintenance is defined as maintenance that can be performed by industry with specialized tools, skill sets, equipment, and facilities normally available only in a shipyard. This Level Three (3) Maintenance must include Government Marine: ship repair, and/or ship refit, and/or ship conversion.

**Area of Origin:
 -Eastern Canada: Atlantic Canada (Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick), Quebec and  Ontario. 
 -Western Canada: All shipyards west of Ontario and those in the Yukon, Nunavut and Northwest Territories



Delivery Date: 31/10/2018

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award.  However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.