Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Canada Will Not Re-tender Sub Maintenance Contract

News reports indicate that the Canadian federal government will not re-tender a $1.5 billion submarine contract to repair and maintain Canada's four Victoria-class submarines.

Following a request for proposal issued in July of 2006, Canadian government identified the Canadian Submarine Management Group ("CSMG"), a British-Columbia based consortium headed by Victoria Shipyards, as the successful bidder.

The decision to award the maintenance contract to CSMG was challenged in court by Irving Shipbuilding Inc. ("Irving"), who had entered into a Teaming Agreement with an unsuccessful bidder, BEA Systems Projects (Canada) Ltd.  Irving alleges that the procurement selection process was flawed in that one of the members of the CSMG consortium participated in the development of the statement of work and evaluation criteria for the contract.  In a decision of September 2007, the Federal Court rejected the Government of Canada's attempt to have Irving's challenge set aside.

Despite this continuing court case, news reports indicate that the Government of Canada has decided to finalize a contract with CSMG rather than re-submitting the project to tender.  In so doing, the Government is choosing to avoid further delays in repairing and maintaining Canada' s submarine fleet, at the risk that its initial decision to award the contract to CSMG might be overturned by the Court at a later date.

http://www.theglobeandmail.com/servlet/story/RTGAM.20080103.wsumbarine0103/BNStory/National/home

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