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Create free accountTrade 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.
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 Erin.dufour@pwgsc.gc.ca.
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 departments. 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 conference:
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
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 response.
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 Development 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 obligations - Extra caution in applying "proven design" vs. performance obligations - Validate prior to solicitation
New Measures Specifications to be reviewed for Contract worthiness Posting of Specification to industry for comment in advance of solicitation
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 solicitation
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 Liability
- 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 solicitation
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 procurement.
Documents may be submitted in either official language of Canada.
Not stated in the notice: procurement type, procurement method, selection criteria, region of delivery, region of opportunity, expected contract period, end user
No amendments observed.
No attachments listed in the open data.
No contact listed in the open data.