Solicitation number EN558-14LOI1/B

Publication date

Closing date and time 2013/06/27 14:00 EDT

    Trade Agreement: NONE
    Tendering Procedures: All interested suppliers may submit a bid
    Attachment: None
    Competitive Procurement Strategy: N/A - P&A/LOI Only
    Comprehensive Land Claim Agreement: No
    Nature of Requirements: 
    Draft Second Communication to Industry Regarding the Procurement
    Outlook Conference
    June 11, 2013
    Procurement planning is underway for Fleet Renewal requirements
    for the Canadian Coast Guard.  Consistent with the principles of
    smart procurement, our intent is to engage industry and to seek
    advanced information regarding requirements, procurement
    strategies, and schedules prior to finalizing the approach.
    This engagement will take place in a Procurement Outlook
    Conference schedule for the morning of June 26, 2013, in
    Halifax, Nova Scotia, and with an opportunity for one-on-one
    engagement of the procurement team by  interested industry
    representatives during the day and a half following.
    There are  two themes for the conference:
    1.	Lessons Learned from earlier engagements and resulting
    changes to the procurement 	approach,
    2.	The Canadian Coast Guard Vessel Life Extension work,
    announced by the Minister of Fisheries and Oceans (DFO) in
    February 2013,
    Important announcement regarding new shipbuilding opportunities
    related to the $5.2 B announced in Canada's Economic Action Plan
    2012.  The planned vessel acquisitions and the schedule of
    vessels under 1000t will be announced and discussed at the
    Mari-Tech conference. 
    To register for the conference, and for one-on-one engagements,
    please contract Erin Dufour at 
    Further particulars follow.
    The Procurement Outlook Conference Agenda (Preliminary)
    1. Introduction - Mr. Mark Seely, PWGSC
    2. Opening  Address - TBD
    3. Peter Cairns, Canadian Shipbuilding Association.
    4. Lessons Learned - Mr. Mark Seely
    	- review results from earlier engagements per the summary below.
    5. New Vessels less than 1000 tonnes at CCG (announced at
    Maritech)- Mr. Robert Wight, CCG 
    	- overview of the new ship requirements planned in CCG.
    6. Vessel Life Extensions at CCG - Mr. Michel Cecire, CCG
    	- overview of the life extensions planned in CCG.
    7. Latest from other departments - Stan Ouimet
    	- brief overview of procurements underway or planned in these
    8. Question and Answer - Mark Seely et al
    	- open forum for questions, comments.
    Industry Engagement
    For the one-on-one engagement, 30 minute sessions by interested
    parties on the both the Vessel Life Extension program and build
    of Small Vessel procurements.  The sessions will be held on the
    afternoon of June 26 and all day June 27.  Please specify who
    will attend, your interest, and whether you want to discuss
    Vessel Life Extensions or the new vessels announced at the
    conference. Should there be anyone not accommodated within this
    schedule, sessions will be booked soon after at a time and place
    suitable to Canada and the interested party.  PWGSC will strive
    to accommodate everyone and thus provide equal access.  
    Industry will be free to raise questions of interest during the
    sessions.  Of particular interest to Canada is the following:
    For the construction of the new CCG vessels announced at the
    General Procurement Issues
    -	Budget
    -	Schedule
    -	IPR
    -	Designer / Shipyard Availability
    Procurement Requirement Issues
    -	Use of Proven Designs
    -	 Design and Build versus Design then Build 
    -	 Long Lead Items 
    -	3D Production Modelling 
    For the Vessel Life Extensions (VLE's):
    General Procurement Issues
    -	Budget
    -	Schedule
    -	Intellectual Property Rights
    -	Shipyard Availability
    -	Total System Responsibility
    Procurement Requirement Issues
    -	Ship Availability
    Lessons Learned
    The following provides the summary lessons learned from earlier
    industry engagements and new measures that have been taken in
    1. Budget
    	- Fair for work and risk
      	- Contingency should be provided for Risk
    	- For Innovative requirements, Management Reserve for evolution
    	- Validate prior to solicitation
    	New Measures
    	Pricing models reviewed and adjusted
    	Complexity and Risk Assessments conducted
    	Engagement of Industry in advance of procurements
    	Vessel quantities priced as options
    	Design Then Build
    2. Approach
    	- For Innovative requirements, provide adequate focus on System
        	Methodology and Change Control Procedure.
    	- Basis of payment 	
    	- Mature proven technology - Firm Price
    	- Innovation - Flexible Basis of Payment
      	- Avoid Build to Budget on innovative procurements (Level 3)
      	- Avoid Enterprise Solutions on Marine procurements (Level 4)
    	- Fair Risk Share 
    	- Mature proven technology - Design Then Build
    		- Innovation - Design and Build, gating, early down select.
    	New Measures
    	Canada as the intermediary between designer and constructor.
    	Procurement Streaming - Routine, Standard, Complex.  
     3. Specification
    	- Avoid excessive mandatories
    	- Avoid conflict between functional, performance and design
    	- Extra caution in applying "proven design" vs. performance
    	- Validate prior to solicitation
    	New Measures
    	Specifications to be reviewed for Contract worthiness
    	Posting of Specification to industry for comment in advance of
    4. Schedule
    	- Reasonable and practical
    	- Omnibus requirements to be resource levelled, avoid gaps to
    enable continuity
    	- Validate prior to solicitation
    	New Measures
    	Schedules adjusted by PWGSC for appropriate phasing
    	Posting of Schedule to industry for comment in advance of
    5.  Method of Payment
    	- Reasonably aligned with costs incurred
    	- Avoid excessive Holdback
    	New Measures
    	Milestone payments to ensure alignment with the work
    	Holdbacks to be reduced by the Contracting Authority
    	Warranty milestones reduced from 5% to 3%
    6.  Price Adjustment
    	- EPA To be considered on projects of long duration
    	- FEA to be applied on projects where significant foreign
    content is expected
    	New Measures
    	Price adjustments to be considered by the Contracting Authority
    in larger and
      longer-term procurements.
    7.   Liability 
    	- Use standard models where applicable for Limitation of
    	- Liquidated Damages applied only on mature proven technology
    (Level 2)
    	New Measures
    	New risk model implemented maximizing liability to the
    contractor on a per 	             incident, per annum and
    contract basis.
    8.  Qualification
    	- Ensure adequate proven track record on engineering,
    financial, facility, insurance.
    	New Measures
    	Posting of prequalification criteria to industry for comment in
    advance of   
    9.  Process Simplification
    	- Consider streaming procurements based on complexity.
    	New Measures
    	Complexity and Risk based streaming now in place
    	Standard contract models now in place
    	Work still required on standardizing information requirements
    Delivery Date: Above-mentioned
    The Crown retains the right to negotiate with suppliers on any
    Documents may be submitted in either official language of Canada.

    Contract duration

    Refer to the description above for full details.

    Trade agreements

    • No trade agreements are applicable to this solicitation process

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    Contact information

    Contracting organization

    Public Works and Government Services Canada
    11 Laurier St, Phase III, Place du Portage
    Gatineau, Quebec, K1A 0S5
    Contracting authority
    Dufour(025md), Erin
    (819) 956-8292 ( )
    (819) 956-0897
    11 Laurier St. / 11, rue Laurier
    6C2, Place du Portage
    Gatineau, Québec, K1A 0S5

    Buying organization(s)

    Public Works and Government Services Canada
    11 Laurier St, Phase III, Place du Portage
    Gatineau, Quebec, K1A 0S5
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    Summary information

    Notice type
    Request for Information
    English, French
    Region(s) of delivery
    Nova Scotia
    Commodity - GSIN
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