Interim Ferry Solution

Trade Agreement: CETA/WTO-AGP/CPTPP/CFTA/FTAs with Peru/Colombia/Panama/Korea/UK
Tendering Procedures: All interested suppliers may submit a bid
Non-Competitive Procurement Strategy: Exclusive Rights
Comprehensive Land Claim Agreement: No
Vendor Name and Address: 
Nye Fanafjord AS
Strandavegen 15
Post boks 356 6905 Florø,
nr. 983 47 2583
Norway
6905
Nature of Requirements: 

Interim Ferry Solution for Transport Canada

Replacement for the MV Holiday Island


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.

Canada will not entertain any requests for an extension to the 15-day ACAN period due to the timelines and the requirement for a replacement vessel to be in service (i.e., commissioned) on May 1, 2024.

2. Background

The Government of Canada provides funding to private operators to support three inter-provincial ferry services in Eastern Canada, including service between: (i) Îles-de-la-Madeleine, Quebec (QC) and Souris, Prince Edward Island (PEI); (ii) Saint John, New Brunswick (NB) and Digby, Nova Scotia (NS); and (iii) Wood Islands, PEI and Caribou, NS operated by Northumberland Ferries Ltd (NFL). The services are collectively known as the Eastern Canada Ferry Services.

The Wood Islands - Caribou service is an essential transportation link that plays an important role in the regional economy. Service on this route begins on May 1st and typically ends around December 20th. Peak season begins in mid-June and ends in early September. Traffic in peak season is comprised of tourism and commercial traffic with demand being primarily related to tourism. Service in the spring and fall shoulder seasons is more focused toward commercial users. 

Service on the Wood Islands - Caribou route has historically been provided by two vessels: (i) the MV Confederation; and (ii) the former MV Holiday Island, which was removed from service in summer 2022 due to an onboard fire, and is being disposed of in an environmentally conscious manner.

Budget 2019 made a commitment to procure two new vessels to replace the MV Holiday Island and MV Madeleine, which was used to provided service on another route -  between Îles-de-la-Madeleine, QC and Souris, PEI, as both vessels were nearing the end of their service lives at that time. The new replacement ferry for the MV Holiday Island is not expected to be in service until Fall 2028 at the earliest.

Transport Canada (TC) is seeking to purchase a turnkey interim replacement vessel for the MV Holiday Island to ensure a two-vessel service between Wood Islands and Caribou that meets peak season traffic demand. The vessel needs to be ready for the 2024 operating season, which begins on May 1, 2024. The interim vessel will ensure safe and reliable service until the new replacement ferry to be built is ready for service.

3. Definition of the Requirement

TC has a requirement for a vessel meeting all of the minimum essential requirements detailed in section 4 below. 

This procurement includes crew familiarization, all technical data (including drawings and manuals), and key spare parts needed to operate and maintain the vessel in Class under TC’s Delegated Statutory Inspection Program.

The vessel must be delivered as a turnkey solution and ownership must be transferred to Canada by March 1, 2024, to allow for the vessel to enter into service (i.e., commissioned) by May 1, 2024. Any modifications to the vessel and certification by Class for operation between Wood Islands and Caribou must be completed before Canada takes possession of the vessel. No additional modifications by the seller will be permitted to be performed after ownership of the vessel is transferred to Canada. 

The interested supplier (hereafter referred to as supplier(s)) must be the owner of the proposed vessel and must submit a statement of capabilities demonstrating that it and the proposed vessel meet the minimum essential requirements. 

Except where expressly provided otherwise, the experience and capabilities must be the experience and capabilities of the interested supplier itself: the experience and capabilities of the supplier's identified subcontractors or "affiliates", as defined in the Canada Business Corporations Act, R.S.C. 1985 c. C) (collectively referred to as "Subcontractors") will not be considered. However, for the requirements of providing crew familiarization as provided in Section 4C (2) below, or, should the proposed vessel require modifications to meet the requirements as provided in Sections 4B below, the supplier may rely on, and demonstrate, the experience and capabilities of a Subcontractor. Where a supplier relies on the experience and capabilities of a Subcontractor in regard to the applicable requirements, the supplier must provide a signed statement from the Subcontractor which confirms the following: 
o the Subcontractor is aware of the supplier submitting a Statement of Capabilities to this ACAN which relies on the experience of the Subcontractor; 
o the statements regarding the Subcontractor’s experience and qualifications are accurate; and
o the Subcontractor is available to provide the work relating to the experience submitted for evaluation in a resulting contract. 

Canada will also consider as a supplier a joint venture whose collective experience and capabilities meet the requirements set out in this ACAN, provided that the owner of the proposed vessel is a member of the joint venture. Accordingly, where the supplier is a joint venture, the following is required:
o each member of the joint venture must be identified and must sign the statement of capabilities;
o one member of the joint venture must be the owner of the proposed vessel; and
o the statement of capabilities must demonstrate how the members collectively meet the requirements set out in this ACAN and must indicate which member meets each individual requirement.

Given the requirement for the vessel to be ready for service in May 2024, Canada intends to enforce the schedule with contractual clauses to ensure that the transfer of ownership occurs no later than March 1, 2024. 

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

A. Any interested supplier must demonstrate by way of a statement of capabilities that the proposed vessel, to be sold to Canada, meets the following minimum essential requirements: 

1) The proposed vessel must have the following characteristics: (a) length overall of 115 - 130 metres; (b) molded beam of not more than 19.5 metres; (c) fully laden draft of not more than 4.75 metres; and (d) built in 2004 or later (the vessel must not be more than 20 years of age).

2) The proposed vessel must operate on diesel fuel and ensure safe operations for passengers and crew in the North Atlantic Region, including: 
o outside air conditions ranging from +25 degrees Celsius (C) in summer and -15 degrees C in winter; and  
o sea water conditions ranging from +24 degrees C to -2 degree C in winter. The vessel must have appropriate insulation for the operating conditions. 

3) The proposed vessel must be Canadian flagged and comply with Canadian regulatory requirements, including meeting the requirements for near coastal voyage, Class 2,meaning a voyage: 

a. that is not a sheltered waters voyage or an inland voyage; and

b. during which a vessel is always:
(i) 25 nautical miles or less from shore in waters contiguous to Canada, the United States (except Hawaii) or Saint Pierre and  Miquelon, and
(ii) 100 nautical miles or less from a place of refuge.

4) The proposed vessel must be a double-ended ferry; allowing for roll-on roll-off vehicle traffic with a maximum 15-minute turnaround for full loading and unloading. An ocean-going vessel / non-double ended ferry is not acceptable due to limitations associated with turning around at the ports and in the channel.

5) The proposed vessel’s visors, ramps, and doors must be fully self-contained and be operable from the ship without the assistance of any shore side personnel and machinery. Vessel ramps and vehicle decks must be able to accommodate vehicles load of up to at least 15,000 kilograms per axle.

6) The proposed vessel must have an operational speed of not less than 15 knots with the ability for self-sufficient (unassisted) manoeuvring in port in prevailing winds up to at least 35 knots.

7) The proposed vessel must be suitable for use with the existing berth arrangements and ramps at Caribou and Wood Islands terminals. The vessel must be capable of having the existing terminal ramps land on the deck of the vessel when the vessel is in final position. The resulting position of the ramps is to be within a workable inclination through all tide and loading conditions. Technical documents and drawings of the existing berth arrangements and ramps are being referenced for guidance purposes only and copies will be provided upon request.

8) For full manoeuverability within the confines of the vessel’s intended ports, the proposed vessel must be equipped with either of cycloidal propellers thrusters or azimuth pod type thrusters. The cycloidal propellers thrusters or azimuth pod thrusters must be in an arrangement of either one or two thrusters installed at each end of the vessel for a total of two or four thrusters, respectively.

9) The proposed vessel must accommodate at least 400 passengers.

10) The proposed vessel must have a minimum of 700 useful lane metres for vehicles with a 2.6 metre lane width.

11) The proposed vessel must be capable of loading at least 16 standard 50-foot tractor trailer rigs on a roll on - roll off and per sailing basis. The vessel must have a minimum overhead clearance of 5m from truck deck level throughout the length of the vessel. 

A proposed vessel that does not meet the requirements Section 4A 1, 4, 5, 6, 8, 10, and 11,  above at the time that the statement of capabilities is submitted to Canada, will not be considered by Canada.
 
A proposed vessel that does not meet any of the requirements at Sections 4A 2, 3, 7 and/or 9, could be considered by Canada in accordance with Section 4B below.  

B. If the proposed vessel does not meet all the requirements under Section 4A 2, 3, 7 and/or 9 above, the interested supplier must demonstrate by way of a statement of capabilities that it meets the following requirements. 

1) Should the proposed vessel not meet the requirements at Section 4A 2, 3, 7 and/or 9 above, any interested supplier must demonstrate by way of a statement of capabilities that it (or an identified Subcontractor, if any) has the required experience and capability as follows to ensure the proposed vessel meets the minimum essential requirements at Section 4A by March 1, 2024:

a. The supplier must provide documentation describing the proposed modifications to the vessel, and how the work would be performed, including:
(i) location and a detailed schedule of main procurement and modification activities;
(ii) a plan to address gaps and obtain regulatory approvals; and
(iii) changes to the vessel to meet operational constraints of the route and shore-based infrastructure (technical documents and drawings will be provided upon request).

b. Demonstrate that the supplier (or identified Subcontractor, if any) has managed projects of a similar modification as the proposed modification during the last five years for at least two similar vessels.  A "similar vessel" is defined as a vessel of similar size or series as the proposed vessel.

c. The supplier must provide a description of the work that was completed, timelines and costs. 

In addition, the supplier must also provide documentation :
(i) detailing that the supplier (or identified Subcontractor, if any), as an operator and as prime contractor or principal contract/project manager, modified at least two similar vessels in order to mobilize the vessel for service within the last five years; 
(ii) identifying the shipyard that would conduct the modifications and demonstrate that the shipyard has completed similar modifications to those being proposed for at least two vessels within the last five years; and 
(iii) detailing that the supplier (or identified Subcontractor, if any) obtained class approvals, and successfully commissioned and operated at least two similar vessels after having completed modifications within the last five years.

It should be noted that a proposed major conversion will not be considered by Canada. A major conversion means a conversion that meets, but is not limited to, one or more of the following: (i) substantially alters the dimensions or carrying capacity of the vessel; (ii) changes the type of the vessel; or (iii) is intended to substantially prolong the life of the vessel.

C. The supplier must demonstrate, by way of a statement of capabilities that it or, with respect to C2, an identified Subcontractor, if any, meets the following requirements:

1) The supplier must provide evidence of ownership of the proposed vessel; and

2) The supplier, or an identified Subcontractor, must provide evidence of its knowledge of, and familiarity with, the proposed vessel for the purposes of providing crew familiarization, including its operation of the vessel for at least three years within the last five years.

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

The requirement is subject to the provisions of the Canadian Free Trade Agreement (CFTA), the World Trade Organization Agreement on Government Procurement (WTO-AGP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the Canada-Chile Free Trade Agreement (CCFTA), the Canada-Columbia Free Trade Agreement, the Canada-Honduras Free Trade Agreement, the Canada-Korea Free Trade Agreement, the Canada-Panama Free Trade Agreement, the Canada-Peru Free Trade Agreement (CPFTA), the Canada-Ukraine Free Trade Agreement (CUFTA), and the Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA).

6. Justification for the Pre-Selected Supplier

Following third party surveys in 2022 and 2023, the proposed MV Fanafjord passenger ferry vessel owned by Nye Fanafjord AS, a wholly-owned subsidiary of Fjord1, is the only known vessel available for purchase that can meet TC’s interim ferry capability within the required timeframes. 

There is only one supplier capable of performing the work because: 
o Nye Fanafjord AS owns the only known vessel that is capable of meeting the requirements for the route from both a regulatory and operational perspective (e.g., Near Coastal Voyage, Class 2, vehicle and passenger capacities, speed, maneuverability, interaction with TC’s existing infrastructure without significant changes, etc.); 
o Nye Fanafjord AS, and its Subcontractors, have demonstrated experience and capacity to manage projects of similar complexity; and 
o Nye Fanafjord AS is the only known supplier that can provide the vessel and transfer ownership to Canada by March 1, 2024.

7. Government Contracts Regulations Exception 

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

8.  Exclusions and/or Limited Tendering Reasons

The following exclusion(s) and/or limited tendering reasons are invoked under the: 

o Canadian Free Trade Agreement (CFTA),  Article 513 (b)(iii);
o the World Trade Organization Agreement on Government Procurement (WTO-AGP), Article XIII, para 1 (b) (iii) ;
o the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), Article 19.12(b)(iii) ;
o the Canada-Chile Free Trade Agreement (CCFTA), Article Kbis-09(b);
o the Canada-Columbia Free Trade Agreement, Article 1409, para 1 (b)(iii);
o the Canada-Honduras Free Trade Agreement, Article 17.11, para 2 (b)(iii);
o the Canada-Korea Free Trade Agreement, refers to WTO-AGP Article XIII, para 1 (b) (iii);
o the Canada-Panama Free Trade Agreement, Article 16.10 (iii);
o the Canada-Peru Free Trade Agreement (CPFTA), Article 1409 (b)(iii);
o the Canada-Ukraine Free Trade Agreement (CUFTA), Article 10.13 (b)(iii), and 
o the Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA), refers to CETA, Article 19.12(b)(iii).

9. Period of the proposed contract or delivery date

The vessel is required to be ready for operations starting in May 2024. The transfer of ownership of the vessel to Canada must occur by March 1st, 2024. 

10. Name and address of the pre-identified supplier

Nye Fanafjord AS
Strandavegen 15 
6905 Florø, 
Norway
nr. 983 47 2583

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 Minimum Essential Requirements.

Section 4A Requirements 

1) (Minimum Essential Requirement) = The proposed vessel must have the following characteristics: 
(a) length overall of 115 - 130 metres; 
(b) molded beam of not more than 19.5 metres; 
(c) fully laden draft of not more than 4.75 metres; and 
(d) built in 2004 or later (the vessel must not be more than 20 years of age)

Information to be provided in the Statement of Capability:

- General Arrangement (GA) drawings;
- Vessel particulars/data sheet;
- Vessel certificate of class; and
- Vessel load line certificate and conditions of assignment.

2) (Minimum Essential Requirement) = The proposed vessel must operate on diesel fuel and ensure safe operations for passengers and crew in the North Atlantic Region, including:
o outside air conditions ranging from +25 degrees Celsius (C) in summer and -15 degrees C in winter; and  
o sea water conditions ranging from +24 degrees C to -2 degree C in winter. 

The vessel must have appropriate insulation for the operating conditions. 

Information to be provided in the Statement of Capability:

- Engine type, manufacturer and confirmation of propulsion fuel; and
- Insulation drawing.

3) (Minimum Essential Requirement) = The proposed vessel must be Canadian flagged and comply with Canadian regulatory requirements, including meeting the requirements for near coastal voyage, Class 2,meaning a voyage: 
a. that is not a sheltered waters voyage or an inland voyage; and
b. during which a vessel is always:
(i) 25 nautical miles or less from shore in waters contiguous to Canada, the United States (except Hawaii) or Saint Pierre and  Miquelon, and
(ii) 100 nautical miles or less from a place of refuge.

Information to be provided in the Statement of Capability:

- Provide ship certificate demonstrating the vessel is flagged Canadian, and complies with Canadian regulatory requirements. 

4) (Minimum Essential Requirement) = The proposed vessel must be a double-ended ferry; allowing for roll-on roll-off vehicle traffic with a maximum 15-minute turnaround for full loading and unloading. 

*An ocean-going vessel / non-double ended ferry is not acceptable due to limitations associated with turning around at the ports and in the channel.

Information to be provided in the Statement of Capability:

- Cargo stowage plan;
- Drawings / manuals indicating arrangement and operation of any hoistable vehicle decks; and
- A cargo loading/unloading plan which includes elapsed times for the various stages, including those applicable to when decks/ramps must be deployed or re-configured.  

5) (Minimum Essential Requirement) = The proposed vessel’s visors, ramps, and doors must be fully self-contained and be operable from the ship without the assistance of any shore side personnel and machinery. Vessel ramps and vehicle decks must be able to accommodate vehicles load of up to at least 15,000 kilograms per axle.

Information to be provided in the Statement of Capability:

- Drawings and photos/video of the arrangement and operation of bow and stern doors and ramps; and
- Design details of decks and loading ramps and which includes their approved weight limits.  

6) (Minimum Essential Requirement) = The proposed vessel must have an operational speed of not less than 15 knots with the ability for self-sufficient (unassisted) manoeuvring in port in prevailing winds up to at least 35 knots;

Information to be provided in the Statement of Capability:

- Report of vessel sea trials;
- Summary of vessel speeds under different operating scenarios when vessel has multiple options for machinery arrangements; and
- Report of maneuvering characteristics including circular diagram of thrust capabilities through 360 degrees relative to vessel vertical Centerline.

7) (Minimum Essential Requirement) = The proposed vessel must be suitable for use with the existing berth arrangements and ramps at Caribou and Wood Islands terminals. The vessel must be capable of having the existing terminal ramps land on the deck of the vessel when the vessel is in final position. The resulting position of the ramps is to be within a workable inclination through all tide and loading conditions. 

Information to be provided in the Statement of Capability:

- Drawings and photos/video of the arrangement and operation of bow and stern doors and ramps. 

8) (Minimum Essential Requirement) = For full manoeuverability within the confines of the vessel’s intended ports, the proposed vessel must be equipped with either of cycloidal propellers thrusters or azimuth pod type thrusters. 

The cycloidal propellers thrusters or azimuth pod thrusters must be in an arrangement of either one or two thrusters installed at each end of the vessel for a total of two or four thrusters, respectively.

Information to be provided in the Statement of Capability:

- Thrusters data sheet; and
- Thrusters configuration

9) (Minimum Essential Requirement) = The proposed vessel must accommodate at least 400 passengers.

Information to be provided in the Statement of Capability:

- Vessel’s safety equipment certificate for a passenger ship.

10) (Minimum Essential Requirement) = The proposed vessel must have a minimum of 700 useful lane metres for vehicles with a 2.6 metre lane width;

Information to be provided in the Statement of Capability:

- Cargo stowage plan (plan view of vehicle decks which has been superimposed with a standard outline of vehicles and which shows how they are loaded to achieve the required capacity).  

11) (Minimum Essential Requirement) = The proposed vessel must be capable of loading at least 16 standard 50-foot tractor trailer rigs on a roll on - roll off and per sailing basis. The vessel must have a minimum overhead clearance of 5m from truck deck level throughout the length of the vessel. 

Information to be provided in the Statement of Capability:

- Drawings and photos/video; and
- A cargo loading/unloading plan which includes elapsed times for the various stages, including those applicable to when decks/ramps must be deployed or re-configured.  

Section 4B Requirements

1) (Minimum Essential Requirement) = Should the proposed vessel not meet the requirements at Section 4A 2, 3, 7 and/or 9 above, any interested supplier must demonstrate by way of a statement of capabilities that it (or an identified Subcontractor, if any) has the required experience and capability to ensure the proposed vessel meets the minimum essential requirements at Section 4A by March 1, 2024.

Information to be provided in the Statement of Capability:

a. The supplier must provide documentation describing the proposed modifications to the vessel, and how the work would be performed, including (i) location and a detailed schedule of main procurement and modification activities,(ii) a plan to address gaps and obtain regulatory approvals, (iii)  changes to the vessel to meet operational constraints of the route and shore-based infrastructure (technical documents and drawings will be provided upon request).

- The schedule must be reasonably achievable and must demonstrate that the modifications will be completed by March 1, 2024; and

- The schedule should be based on facts demonstrating comparable timelines on previous projects where similar modifications have been undertaken (i.e., modifications similar to those proposed in the statement of capabilities).

b. Demonstrate that the supplier (or identified Subcontractor, if any) has managed projects of a similar modification as the proposed modifications during the last five years for at least two similar vessels. A "similar vessel" is defined as a vessel of similar size or series as the proposed vessel. 

c. The supplier must provide a description of the work that was completed, timelines and costs. 

In addition, the supplier must also provide documentation :
(i) detailing that the supplier (or identified Subcontractor, if any), as an operator and as prime contractor or principal contract/project manager, modified at least two similar vessels in order to mobilize the vessel for service within the last five years; 
(ii) identifying the shipyard that would conduct the modifications and demonstrate that the shipyard has completed similar modifications to those being proposed to at least two vessels within the last five years; and 
(iii) detailing that the supplier (or identified Subcontractor, if any) obtained class approvals, and successfully commissioned and operated at least two similar vessels after having completed modifications within the last five years.

Section 4C Requirements

1) (Minimum Essential Requirement) = The supplier must provide evidence of ownership of the vessel.

Information to be provided in the Statement of Capability:

- The supplier must provide ship certificate or other official document demonstrating its ownership of the vessel.

2) (Minimum Essential Requirement) = The supplier (or an identified Subcontractor, if any) must provide evidence of its knowledge of, and familiarity with, the proposed vessel for the purposes of providing crew familiarization, including its operation of the vessel for at least three years within the last five years.

Information to be provided in the Statement of Capability:

- Familiarity with the proposed vessel must be demonstrated by providing evidence of the supplier’s (or, if any, an identified Subcontractor’s) operation of the vessel, including:
(i) description of where the vessel was operated, including sailing schedule;
(ii) vessel’s certificate of class;
(iii) class record of continuous survey for hull and machinery; 
(iv) abstract of vessel operational history (any gaps must be no longer than what would typically be required for performing a typically drydocking of 4-6 weeks); and
(v) stability booklet of the vessel in relation to area of operation (damage and intact stability).

12. Inquiries and submission of statements of capabilities 

Inquiries and statements of capabilities are to be directed to: 

Maude Girard
Contracting Authority
Major Marine Construction Services (MMCS)
Telephone:  418-571-4028
E-mail: Maude.Girard@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.