Class of three AHTS Icebreakers

Trade Agreement: NONE Tendering Procedures: Generally only one firm has been invited to bid Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: Chantier Davie Canada Inc. 22 rue George-D.-Davie Lévis Quebec Canada G6V0K4 Nature of Requirements:

Class of three AHTS Icebreakers

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. Background

The Canadian Coast Guard (CCG) has a requirement for purchasing a class of three existing, Anchor Handling Tug Supply (AHTS) icebreakers that are urgently required in order to fill interim capability gaps and maintain critical icebreaking services.

A class of three existing sister AHTS icebreakers are currently available for sale to the Government of Canada to meet Coast Guard’s operational requirements, including: year round availability exclusive of regulatory/scheduled maintenance periods; ice class equivalent to Arctic Class 3 (ASPPR 1972); level icebreaking performance of 1.0 m with proven escort icebreaker capability; a beam and draft less than St. Lawrence Seaway maximums and comparable to those of both CCG’s Type 1100 and Type 1200 class vessels (maximum load draft between 6.1 - 7.5 m); full interoperability and interchangeability in the Arctic and southern Canadian waters; and, a robust propulsion and steering system designed for astern operations in ice.

The AHTS icebreakers will be used to backfill for CCG vessels while they are undergoing maintenance, refit and Vessel life Extension (VLE) work. The three AHTS will cover off critical icebreaking duties for the Southern wintertime program and are to be deployed as needed in support of Arctic summertime programs. The first AHTS icebreaker is required on a priority basis for icebreaking during the upcoming 2018-19 season (between December 2018 and June 2019).

The AHTS icebreakers will provide icebreaking capacity in Atlantic Canada and the St. Lawrence/Great Lakes region, to ensure that Canada’s maritime economy remains open for business year-round, and in order to meet overall increasing demands for icebreaking services. The AHTS icebreakers will ensure Coast Guard continues to provide reliable service, giving confidence that Canadian ports will remain open and accessible.

All three ships are of the same type or class (identical design) which results in streamlined operational planning, maintenance, sparing and crew training while providing full interoperability and interchangeability.

3. Definition of the Requirement

The CCG has a requirement for the acquisition of a class of three existing AHTS icebreakers, delivered (including any and all required maintenance, refit and conversion to meet Coast Guard needs and Transport Canada regulations before final delivery to Canada) meeting all of the minimum essential requirements detailed in section 4 below. This procurement includes all aspects required for CCG to fully integrate these vessels into current fleet operations including crew familiarization and training along with all technical data (including drawings and manuals) and spare parts needed to operate and maintain these vessels in Class under Transport Canada’s Delegated Statutory Inspection Program.

4. Criteria for assessment of the Statement of Capabilities (Minimum Essential Requirements)

Any interested supplier must demonstrate by way of a statement of capabilities that it can provide a family of three identical vessels that meet the following requirements:

1) Upon delivery ships are to be deployable and able to undertake Coast Guard program requirements, be fully compliant with applicable Canadian Regulatory requirements and eligible for enrollment in the Transport Canada Delegated Statutory Inspection Program in accordance with the timelines described in paragraphs 10 and 11 below; 2) A class of three vessels offering interoperability and interchangeability, common spares and facilitation of training/ familiarization of crew; 3) Year round availability for deployment across all Canadian operational areas on an as needed basis; 4) Ice class equivalent to Arctic Class 3 (ASPPR 1972); 5) Level icebreaking performance of 1.0 m at 3.0 knots; 6) Proven escort icebreaker capability (having been specifically designed for operation in close quarters with escorted vessels with demonstrable track record of success in that role); 7) Beam less than St. Lawrence Seaway maximum; 8) Draft less than St. Lawrence Seaway maximum and comparable to those of both CCG’s Type 1100 and Type 1200 class vessels (maximum load draft between 6.1 - 7.5 m); 9) Robust propulsion and steering system designed for sustained astern operations in ice; 10) At least one vessel (meeting regulatory requirements) delivered to the CCG to conduct winter icebreaking tasks and integrated into CCG Fleet operations no later than December 2018; 11) The second and third vessels must have all conversion/refit work (to meet all regulatory and operational requirements) completed and delivered to the CCG by summer 2019 and winter 2019/2020 respectively.

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

The requirement is not subject to the provisions of the Canadian Free Trade Agreement (CFTA), the North American Free Trade Agreement (NAFTA), the World Trade Organization Agreement on Government Procurement (WTO-AGP) and the Canada-Chile Free Trade Agreement (CCFTA), the Canada-Peru Free Trade Agreement (CPFTA), the Canada-Colombia Free Trade Agreement (CColFTA), the Canada-Panama Free Trade Agreement (CPanFTA) if it is in force, the Canadian Free Trade Agreement (CFTA) and The Canada-European Union Comprehensive Economic and Trade Agreement (CETA). This is in accordance with the national security exemptions provided in CFTA, Article 801, NAFTA ­ Article 1018 (1): Exceptions, section 1, and WTO­AGP Article III : Security and General Exceptions, subparagraph 1.

6. Economic Benefits

Canada’s Industrial and Technological Benefits (ITB) policy, including Value Proposition, will be a mandatory element of the refit and conversion of the interim icebreaking capability requirement. The ITB policy is administered by Innovation, Science and Economic Development with the support of the Regional Development Agencies. The start of the ITB Achievement Period will begin on the date of release of the initial RFI, 16 November 2016. To obtain information about Canada’s ITB policy, visit www.ic.gc.ca/itb.

7. Justification for the Pre-Selected Supplier

Following an extensive Request for Information process and additional third party survey of the icebreakers global market, this class of three sister vessels is the only one known to fill the immediate CCG interim capability gap while meeting the operational and schedule requirements.

8. Government Contracts Regulations Exception

The following exception(s) to the Government Contracts Regulations is (are) invoked for this procurement under subsection 6(d) : ?only one person is capable of performing the work.’

9. Period of the proposed contract or delivery date

Summer 2018

10. Name and address of the pre-identified supplier

Chantier Davie Canada Inc. 22 rue George-D.-Davie Lévis, Québec G6V 0K4

11. Suppliers' right to submit a statement of capabilities

Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the 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.

12. Closing date for a submission of a statement of capabilities

The closing date and time for accepting statements of capabilities is July 11 at 2:00 p.m. EST.

13. Inquiries and submission of statements of capabilities

Inquiries and statements of capabilities are to be directed to

Yves Lortie Procurement Manager Marine Chartering Services Telephone: 819-420-0834 E-mail: Yves.Lortie@tpsgc-pwgsc.gc.ca 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.