P&A - TUG LEASING FOR NLT PROJECT

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P&A - TUG LEASING FOR NLT PROJECT

W8472-16NLTE/A Lamothe, Brenda Telephone No. - (819) 956-6297 ( ) Fax No. - (819) 956-7725 ( )

PRICE AND AVAILABILITY ENQUIRY FOR THE PROVISION OF ALTERNATE SERVICE DELIVERY OF LARGE TUGS FOR THE DEPARTMENT OF NATIONAL DEFENCE

This amendment #2 is to amend the closing date from January 11th, 2016 to January 25th, 2016 and to post Questions and Answers.

This amendment #1 is to amend the closing date from December 31st, 2015 to January 11th, 2016 and to post Questions and Answers.

1 - Background

The Department of National Defence (DND) is currently developing a businesscase analysis related to the replacement of its fleet of large tugs and fireboats currently deployed in both HMC Dockyards Halifax in Nova Scotia (MARLANT) and Esquimalt in British Columbia (MARPAC). The large tug fleet is comprised of the five Glen Class tugs and the two Fire Class tugs. The objective of the business case is to assess the operational and fiscal impacts of adopting alternate service delivery for tug services. The intent of this Price and Availability (P&A) enquiry is to identify the availability and budgetary costs for the provision of tug and fireboat services within the commercial market.

2 - Who should respond to this Price and Availability Enquiry

Any company that provides marine tug boat services and/or marine asset management which meet the requirements as outlined in Annex A and Section 3 of this P&A enquiry are invited to respond.

3 - Requirements

A General Statement of Operational Requirements (SOR), included as Annex A, completes this P&A enquiry which provides in general terms; a) the expected performances the tugs will have to meet, b) the availability and response times required, and c) a notional ?typical year operations? breakdown*.

*The details contained in Annex A regarding typical annual operational hours and activities is neither intended to be nor should be considered a ?minimum contractual obligation’ but has been included to allow companies to gauge the level of services required.

4 - Vessel and Operational Requirements

• Number ofSOR Compliant Tugs Required: four (4) total • Two (2) for the East Coast; and • Two (2) for the West Coast. • Twin engine/propulsion plant capable of delivering an approximate bollard pull of 40 tons or an equivalent total power of 4,000 BHP; • Firefighting capability (FiFi 1); • Full speed of at least 12 knots (fully loaded); • Draft not to exceed 6 meters; • Vessels not to exceed 5 years of age at the start of the contract. • Preferred length overall not to exceed 33 metres; • The vessels willbe operated by a civilian crew holding Transport Canada certification; • The tugs must have a Transport Canada Certificate of Registration; • The vessels must meet regulatory requirements to operate in Canada and be in full compliance with the CanadaShipping Act; and • Daily in harbour operations consisting of hot or cold moves of existing and future warships up to 25,000 tons displacement; • Assisting in closing harbour gates, delivering supplies or fresh water, buoy operations and other routineharbour tasks;

5 - Additional Information

• For purposes of responding to this P&A enquiry, the anticipated contract duration is notionally 25-years, with an initial period of 5-years and multiple option periods

• Contractual arrangements proposed by the company may include those that are currently available, or could be developed, to meet DND requirements for tug andfireboat services. Potential contract constructs may include, bareboat charter, charter for crewed tugs with dedicated exclusive use service (time charter), or some other contractual arrangements meeting the service requirements. The costs associated with each proposed contractual construct, should be presented for consideration.

• Security Requirements - Given the need foraccess to the RCN dockyards and vessels and operations with visiting warships and nuclear submarines any resulting contractual arrangement will require companies to be based in Canada and the contractor and their crews will be required to maintain an appropriate security clearance. Note that this process may take up to two years from the date of contract award.

6 - Price and Availability enquiry required information

• Respondents are asked to provide an indication of proposed contract arrangement, price and details for the following contractual constructs;

1. Bareboat Charter - Initial 5-year term with 4 x 5-year options for a total of 25 years. 2. Time Charter - Initial 5-year term with 4 x 5-year options for a total of 25 years. 3. Othercontractual constructs.

• For the Bareboat Charter, Please provide the following Pricing information: a) regular monthly/annual rates (as applicable); b) special insurance premiums, if applicable; c) upfront contract/leasing fees, if applicable.

• For the Time Charter, Please provide the following Pricing information: a)regular hourly/daily/monthly rates (known work); b)stand-by-rates, out-of-harbour, silent hour call-up, crew augmentation (unscheduled rates); c)tabular summary of associated costs for contracted tug services per requisite activity and per dedicated contract type; d)rate for provision of 24/7 firefighting; e)applicable fixed monthly/annual costs (maintenance, insurance premiums); f) special insurance premiums for specific operations, if applicable; g) additional charges associated with short notice task requests; h) typical annual rate increases (fuel rate/salary rate adjustment); i) minimum contractual obligation, if applicable; j) dedicated resources; and k) other associated indirect costs.

Note: The full price, including cost for transit times for services based in locations other than those identified above, must be included.

• Respondents are asked to provide advice on the following operational details and include any applicable impact on pricing; a. scheduling; b. any operation restrictions or limitations in the areas of operation; c. environmental parameters for operations; d. typical response times for urgent requirements; e. operationalavailability and service redundancy; f. fleet augmentation requirements for total capability provision; and g. identify whether the services would be provided to CFB Halifax dockyard and/or CFB Esquimalt dockyard.

• Respondents may also submit advice on the following: a. alternatives the RCN could consider for greater flexibility or pricing advantages; b. standard contract(s) used, c. details of liability insurance carried, and d. any circumstances that would prevent bidding.

7 - Questions and Responses

Any questions and responses to this Price & Availability Enquiry shall be forwarded by e-mail to the PWGSC Contracting Authority at brenda.lamothe@tpsgc-pwgsc.gc.ca.

8 - Requested Submission Date

Two (2) copies with the information are requested to be submitted to the Contracting Authority on or before December 31st, 2015.

Any information that will beforwarded to the Contracting Authority will be considered Commercial-in Confidence and not disclosed outside of PWGSC and DND.

This P&A enquiry is a request for information only and is neither a Letter of Interest (LOI) nor a Request for Proposal (RFP). This P&A request is not a solicitation and there is no commitment with respect to the issuance of a future LOI or RFP or contract.

Brenda Lamothe Contracting Authority brenda.lamothe@tpsgc-pwgsc.gc.ca

Or by mail to the following address

Public Works and Government Services Canada Acquisitions Branch, Marine Sector Marine Systems Directorate - Ship Construction Division (MC) 11 Laurier Street Place du Portage, Phase lll, Floor 6C2, Room 59 Gatineau, Quebec, K1A 0S5

Tel: (819) 956-6297

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.