The competition for constructing Canada’s upcoming fleet of submarines was prominently displayed at the Conference of Defence Associations Institute’s annual gathering in Ottawa. Germany’s ThyssenKrupp Marine Systems and South Korea’s Hanwha Ocean, the main sponsors of the event, showcased miniature models of their submarines at the Chateau Laurier hotel for attendees to view.
Highlighting the submarine contract as a success story, Canada’s secretary of state for defence procurement emphasized the government’s effort to expedite procurements and avoid delays and budget overruns. Stephen Fuhr, speaking at the event, stressed the importance of openness, fairness, and transparency in defence procurement.
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Fuhr dismissed reports suggesting a split contract between Hanwha and TKMS, emphasizing the government’s pursuit of a single partner for the submarine project.
Vice-Admiral Angus Topshee addressed the possibility of a mixed fleet, noting the efficiency of a single-class fleet for submarine acquisitions but acknowledging the potential for alternative approaches.
The Defence Investment Agency, according to Fuhr, aims to streamline procurement processes by consolidating authority and promoting risk management over risk avoidance. The agency, currently part of Public Service and Procurement Canada, will transition to an independent entity with oversight on procurements exceeding $100 million.
Both TKMS and Hanwha have submitted their final proposals for the submarine contract. TKMS expressed openness to a mixed fleet but cautioned against underestimating associated challenges, particularly in the industrial aspect.
The decision on the submarine contract, anticipated by summer, will consider the industrial and economic benefits promised by the bidders. The emphasis on local production and economic contributions is crucial in selecting the winning bid.
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