New ferry vessels

Trade Agreement: Canadian Free Trade Agreement (CFTA)
Tendering Procedures: Generally only one firm has been invited to bid
Non-Competitive Procurement Strategy: Exclusive Rights
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: 

Construction of two Roll-on Roll-off (ROPAX) ferry vessels
for Transport Canada

1. Advance Contract Award Notice (ACAN)
An 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

Through the Ferry Services Contribution Program, Transport Canada (TC) supports three inter-provincial ferry services in Atlantic Canada and Eastern Quebec, including service between: 
(i) Îles-de-la-Madeleine, Quebec (QC) and Souris, Prince Edward Island (PEI); and
(ii) Wood Islands, PEI and Caribou, Nova Scotia (NS); and 
(iii) Saint John, New Brunswick (NB) and Digby, Nova Scotia. 

TC's current fleet of ferry vessels includes: the MV Madeleine (38 years old) which is used to provide service between Îles-de-la-Madeleine and Souris; the MV Holiday Island (48 years old) and MV Confederation (26 years old) that are used to provide service for the Wood Islands - Caribou route; and the MV Fundy Rose (20 years old) which is used to provide service between Saint John and Digby. The MV Madeleine and the MV Holiday Island are nearing the end of their service lives and need to be replaced as soon as possible.

In this context, Budget 2019 indicated that the Government of Canada would procure two ferries to replace the MV Madeleine and the MV Holiday Island to maintain safe and reliable ferry services.

This ACAN is being issued to confirm that no other Canadian shipyard is capable of designing and constructing replacement vessels for the MV Madeleine and MV Holiday Island, based on the criteria identified below.

3. Definition of the Requirement

TC has a requirement to design and build two ferries: (i) a single ice-strengthened vessel to replace the MV Madeleine; and (ii) a largely identical non-ice-class vessel to replace the MV Holiday Island. The vessels will have the following general requirements subject to the preparation of concept, preliminary and final vessel designs: approximately 130 m in length; the ice-strengthened vessel to be Super 1A; closed car vehicle decks; maximum speed of approximately 21 knots; maximum draft of approximately 5.5m; maximum beam of approximately 24m; passenger capacity of 1500; vehicle capacity of approximately 280 automobile equivalent units (AEUs); hybrid propulsion systems; and gross tonnage of vessels will be in the 5000-7500 tonne range. 

Canada may vary this requirement without further notice, and all related work is included in this requirement, including procurement of the design and build.


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 can meet the following essential requirements. Where a contract is specified below to be all or part of the required proof of compliance, unless the requirement expressly provides otherwise, the supplier must be the signatory to the contract, and in each case must identify the nature of the contract, its date of execution, and confirm that the supplier is the signatory: 

4.1 Capacity Requirements

a) The supplier must be a Shipyard that is incorporated and its lands and premises where work will be performed must be geographically located in Canada.

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

b)    The supplier must demonstrate a cash flow for labour and material averaging $5M per month on a single Marine Construction or Government Level Three (3) Maintenance contract *, with a duration of no less than 12 months occurring within the last five (5) years.
 
*Marine Construction is defined as:
Construction of marine vessels, of which at least 90% is constructed in the Contractor’s shipyard, of a size not less than 80 metres and not less than 4,000 tonnes; 

*Government Level Three (3) Maintenance is defined as:
Marine 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.

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

c) The supplier must have access to a production labour force of at least 350 workers (including, but not limited to: fitters, welders, electricians, riggers, machinists, painters, laggers, and carpenter trades, etc.) with experience in executing a single  Marine Construction or Government Level Three (3) Maintenance project, implemented within the past five (5) years.

Proof of Compliance: Provide a list with the number of workers for each trade used on a Marine Construction contract or Marine Level Three (3) Maintenance contract.  

d) The supplier must be fully operational with year-round access to an existing certified dry dock that has the capability to dry dock vessels 5000 to 7500 tonnes or greater displacement and that exceed 130 m in length and 24 m in breath.  

Proof of Compliance: Provide evidence as to how the supplier will have access to a year round certified dry dock with the above listed capabilities.

e) The supplier must have existing on-site capabilities that include but are not limited to: (i) Outfitting; (ii) Steel fabrication workshop; (iii) Machine workshop; (iv) Pipe fitting workshop; (v) Electrical workshop; (vi) Blasting and painting facilities; and (vii) Stores facilities.

Proof of Compliance: Provide a description of the on-site capabilities for each of the above manufacturing capabilities within the shipyard.

f) The supplier must have a Project Manager with no less than seven (7) years of Marine Project Management experience in vessel design and construction within the last twelve (12) years. This experience must include the management of at least one Marine Construction, or Government Level Three (3) Maintenance contract of no less than 400,000 hours. 

Proof of Compliance: Provide evidence that the Project Manager who meets the requirements above, is employed by or currently under contract by the supplier to perform Project Management services.  Provide a summary of the Project Management experience.  Describe the scope of the work, the project(s) team size, total dollar value, and duration of each contract, including evidence that the Project Manager performed the work of Project Manager for the contract(s).  Provide the name of the signatories to the contract(s), describe the nature of the contract(s), and date(s) of execution.     

g) The supplier must demonstrate that it has the capacity to design and construct at its shipyard two new ROPAX ferry vessels as described in this ACAN within the proposed timelines indicated in Section 9, Period of the proposed contract or delivery date.

Proof of Compliance: Provide evidence as to how the supplier will have the dry dock capacity and workforce to meet this criterion during the required timelines. Evidence can be demonstrated by providing the anticipated work in the selected dry dock with proof of access to the required workforce.   

4.2 Experience Requirements

a) Construction Experience:  

a) The supplier must demonstrate experience in the construction of at least one (1) vessel of 80m in length or greater constructed by the supplier within the last 10 years.

Proof of Compliance: Provide the details of the applicable contract signed by the supplier, a description of the vessel with details on how it meets the requirement, including the name of the vessel and the date it was delivered.

ii) The supplier must demonstrate experience in the construction of at least one (1) ice-strengthened vessel that the supplier has constructed within the last 10 years.

Proof of Compliance: Provide the details of the contract signed by the supplier, a description of the vessel with details on how it meets the requirement, including the name of the vessel and the date it was delivered.

iii) The supplier must demonstrate experience in the construction of at least one (1) vessel within the last 10 years that has dual fuel propulsion capabilities, such as diesel-electric or diesel-LNG.

Proof of Compliance: Provide the details of the contract signed by the supplier, a description of the vessel with details on how it meets the requirement, including the name of the vessel and the date it was delivered.

iv) The supplier must demonstrate experience in the delivery of at least one (1) vessel, within the last 10 years, that (i) was deployed into service in Canadian waters; (ii) complies with applicable Canadian Regulatory requirements; and (iii) has been or is eligible to be enrolled in the TC Delegated Statutory Inspection Program.

Proof of Compliance: Provide details of the contract under which the vessel was delivered, a description of the vessel with details on how it meets the requirement, including the name of the vessel and the date it was delivered. 


a) Design Experience:   

a) The supplier must demonstrate experience in the (i) design or adaptation of an existing design; and (ii) the build by the supplier from such design.

Proof of Compliance: Provide the details of the contract signed by the supplier, a description of the vessel with details on how it meets the requirement, including the name of the vessel and the date it was delivered.


5. Applicability of Trade Agreements

Shipbuilding is exempt from International Trade Agreements. As such, this procurement will not be subject to the provisions of the North American Free Trade Agreement (NAFTA) or its replacement agreement, the World Trade Organization Agreement on Government Procurement (WTO-AGP) and 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, and the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). 
This procurement is subject to the provisions of the Canadian Free Trade Agreement (CFTA).


6. Economic Benefits

Canadian Shipbuilding and Industrial Marine Industry Policy Framework (Buy-in-Canada Shipbuilding Policy)

a) The Buy-in-Canada Policy states that “The government will continue to procure, repair, and refit vessels in Canada subject to operational requirements and a competitive domestic marketplace”. This longstanding policy is a significant measure that Canada uses to generate economic activity and sustain domestic shipbuilding, ship repair, and broader marine industry capabilities.

b) Canada wants to ensure that its investments in shipbuilding and industrial marine-related goods and services generate benefits to Canada’s marine industry. 

c) More details on the Shipbuilding and Industrial Marine Policy Framework can be found at: https://www.ic.gc.ca/eic/site/sim-cnmi.nsf/eng/h_uv00053.html

d) Transport Canada will work with its federal partners in order to maximize economic benefits.

e) Economic benefits for this project cannot be used for other economic benefit obligations to Canada.


7. Justification for the Pre-Selected Supplier

An in-depth analysis of the Canadian domestic shipbuilding capacity to support large vessel procurement was undertaken by PSPC, supported by independent subject matter experts. From that analysis, it was concluded that Chantier Davie Canada Inc. is the only Canadian shipyard with the capacity and capability to design and build two vessels of more than 80m in the required timeframe.


8. Government Contracts Regulations Exception 

The following exception(s) to the Government Contracts Regulations is (are) invoked for this procurement under subsection 6(d) - ‘only one person is capable of performing the work.’ 


9. Period of the proposed contract or delivery date

Proposed Activity               Proposed Timelines

Contract(s) awarded to Canadian shipyard to design                    2020  
and construct two new ferry vessels

Completion / confirmation of designs of new vessels  18 months after
         contract award

Completion of construction and sea trials for    48 months after
MV Madeleine replacement      contract award

Completion of construction and sea trials for    60 months after 
MV Holiday Island replacement     contract award


10. Name and address of the pre-identified supplier

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


11. Suppliers' right to submit a statement of capabilities 

Suppliers who consider themselves fully qualified and available to provide the goods, services or construction 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 statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.


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

The closing date and time for accepting statements of capabilities is June 7th, 2019 at 2:00 p.m. EDT.


13. Inquiries and submission of statements of capabilities 

Inquiries and statements of capabilities are to be directed to: 

Yves Lortie
Procurement Manager
Marine Chartering Services
Telephone:  819-420-0834 
E-mail:  Yves.Lortie@tpsgc-pwgsc.gc.ca

Delivery Date: Above-mentioned

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.