Naval Materiel Regulation Framework

Trade Agreement: NONE
Tendering Procedures: 
Attachment: None
Non-Competitive Procurement Strategy: National Security
Consideration
Comprehensive Land Claim Agreement: No
Vendor Name and Address: 
Lloyd's Register Canada Limited
441 MacLaren Street
Suite 404
Ottawa Ontario
Canada
K2P2H3
Nature of Requirements: 
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.	Definition of the requirement
The Department of National Defence (DND) has a requirement for
the services of a Classification Society to support, develop,
and implement DND`s Naval Materiel Regulation framework. This
requirement includes the provision of classification and
certification services to the Royal Canadian Navy's combatant
ships.
For this requirement, combatant Ships are defined as
commissioned vessels characterized by a significant offensive
capability, designed to withstand exposure to extreme threats,
severe operating environments and manned by a military crew
operating in accordance with naval doctrine.  Canada`s fleet of
ships deemed to be combatants by the Naval Materiel Regulatory
Authority includes all existing Halifax Class vessels, 
submarines, and the planned vessels that will be procured under
the Canadian Surface Combatant Project.
Work to support the Naval Materiel Regulatory Authority will
include: the development of a flag state requirements file;
competency development; advice and research; naval materiel
regulation framework support. Work to support in service
combatant ships will include: specialist support, advice and
technical services; acceptance into naval class (advice, plan
appraisal and vessel surveys); maintenance in-class (advice and
vessels surveys).  Work to support the Canadian Surface
Combatant project will include: advice and technical services
for the design and build phases; plan appraisal; naval
classification and certification; and materiel and equipment
certification.
3.	Criteria for assessment of the Statement of Capabilities
(Minimum Essential Requirements)
Any interested supplier must demonstrate by way of a statement
of capabilities that its services meet the following
requirements:
a.	That the supplier is currently a member of the International
Naval Safety Association (INSA) and has been for at least 5
years;
b.	That the supplier is a Recognized Organization (RO) under
Transport Canada's Delegated Statutory Inspection Program (DSIP)
and has been for at least 1 year;
c.	That the supplier must demonstrate their Naval Ship Rules
have been validated against the Allied Naval Engineering
Publication 77 - Naval Ship Code. This must be demonstrated in
the statement of capabilities by the submission of a report that
details the regulations of the Naval Ship Code (edition D or
newer) that are met by the supplier's naval ship rules;
d.	The supplier has 5 years of demonstrated experience
developing and working within the United Kingdom`s Ministry of
Defence (MoD) naval ship assurance program which provides
materiel safety assurance for the UK MoD. This experience must
be related to the UK MoD frigates and destroyers;
e.	That the supplier has demonstrated experience with the design
and build of frigates or destroyers using their naval ship
rules. In order to demonstrate this experience, the supplier
must have issued naval classification certificates in areas
covered by their firm's naval rules for the design and build of
frigates or destroyers; and  
f.	That the supplier has demonstrated experience maintaining
frigates or destroyers in naval class. In order to demonstrate
this experience, the supplier must have issued naval
classification certificates for areas covered by their firm`s
naval ship rules as part of maintaining frigates or destroyers
in class.   

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

A National Security Exemption has been invoked for this
procurement therefore it is not subject to the trade agreements.
5. Non-Competitive Procurement Strategy
Government Objectives Representing Best Interests/Value to Govt

6. Set-Aside Under the Procurement Strategy for Aboriginal
Business

Not Applicable

7.	Comprehensive Land Claim Agreement(s) 

Not Applicable

8.	Justification for the Pre-Identified Supplier

The Naval Materiel Authority for the Royal Canadian Navy is
establishing a structured Naval Materiel Regulatory (NMR)
framework based on the MoD UK naval ship assurance program.  The
development of a NMR framework is essential to meet DND's
mandate to self-regulate the naval materiel safety of its ships.
 The NMR framework is required now because the traditional
approach to naval materiel safety assurance, which involves a
robust internal DND structure for oversight and standards
maintenance, is no longer sustainable.

By virtue of their involvement in the UK MoD's naval regulatory
framework, Lloyd's Register developed and implemented the model
on which DND's Naval Materiel Regulation Framework has been and
will continue to be based.  Lloyd's retention of information
related to that proprietary model places it in the unique
position of having the required information, knowledge and the
experience to develop a similar regulatory framework with DND.

A key requirement of adopting the UK MoD approach for DND's
certification processes within their new regulation framework is
the procurement of Classification Society services based on the
UK MoD's naval regulatory framework. This is required to provide
to DND materiel authorities a high level of confidence in the
framework's suitability for use in Canadian warships.

As a self-regulating entity, DND and its naval materiel
authorities must have a reasonable degree of confidence in all
elements of its regulatory framework to have accountability for
its certification process. Ultimately, this includes taking
technical ownership of the standards that it prescribes,
including classification rules, and certifying all supporting
services.  There would be great risk in directly engaging a
classification society without that society having access to the
proprietary model of another navy that has naval rules that have
been developed with a pedigree similar to Canadian naval
practices. This situation further emphasizes the need for a
collaborative approach with the UK MoD, another organization
would not provide to another supplier the benefit of the unique
arrangement that has been established between the UK MoD and
Lloyd's Register to support the UK MoD regulatory construct.

9.	Government Contracts Regulations Exception(s)

The following exception to the Government Contracts Regulations
is invoked for this procurement under subsection 6(d) - "only
one person is capable of performing the work" 
10.	Intellectual Property

Canada has determined that any intellectual property arising
from the performance of the Work under the resulting Contract
will belong to Canada, on the grounds of national security.
11.	Contract Period

The proposed contract is for a period of 15 years, from 1 April
2015, to 31 Mar 2030 including a five-year initial contract
period and two five-year option periods.  
12.	Contract Value

The estimated value of the contract, including option(s), is
$60M to $90M (GST/HST extra). 
13.	Contract Information
Name and address of the pre-identified supplier:
Lloyd's Register Canada Limited
441 MacLaren Street, Suite 404
Ottawa, Ontario
K2P 2H3

14.	Supplier's Right to Submit a Statement of Capabilities

Suppliers who consider themselves fully qualified and available
to provide the services described in this 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.
15.	Closing Date for a Submission of a Statement of Capabilities

17 February 2015
16.	Contact Information
Inquiries and statements of capabilities are to be directed to:

Angela Cowie
Marine Directorate
6C2-31, Phase III, PDP
Gatineau, Qc K1A 0S5
Telephone number: (819) 956-8259
Facsimile number: (819) 956-0897
E-mail address: Angela.Cowie@tpsgc.pwgsc.gc.ca

17.	Note

The PWGSC file number, W8482-134150 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, or in the subject line of
the e-mail.

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 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.

GSIN: C216A

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.