An artist’s rendering of the Type 26 Global Combat Ship, Lockheed Martin’s proposed design for Canada’s $60-billion fleet of new warships. COURTESY LOCKHEED MARTIN CANADA

Legal challenge filed over high-stakes competition to design $60B warships

The federal government had originally said it wanted a “mature design” for its new warship fleet, which was widely interpreted as meaning a vessel that has already been built and used by another navy.

The $60-billion effort to build new warships for Canada’s navy has hit another snag, this time in the form of a legal challenge by one of three companies in the competition to design the vessels.

The federal government announced last month that U.S. defence giant Lockheed Martin beat out two rivals in the long and extremely sensitive competition to design replacements for the navy’s frigates and destroyers.

Lockheed’s design was based on a brand-new class of frigates for the British navy called the Type 26. The company is negotiating a final contract with the government and Halifax-based Irving Shipbuilding, which will build the ships.

But one of the other two bidders, Alion Science and Technology, has asked the Federal Court to quash the government’s decision, saying Lockheed’s design did not meet the navy’s stated requirements and should have been disqualified.

Two of those requirements related to the ship’s speed, Alion said in court filings, while the third related to the number of crew berths.

The rules of the competition required the federal procurement department and Irving, which helped evaluate the bids, “to reject Lockheed’s bid because of its non-compliance,” Alion added. Instead, they selected it as the preferred design.

Alion added that its own proposed design, which was based on a Dutch frigate, met all of the navy’s requirements. It also said that it has received no information about why Lockheed’s bid was selected over its own, despite requests for answers.

Lockheed Martin, Irving and Public Services and Procurement Canada declined to comment because the matter is before the courts. The third company involved in the design competition, Spanish firm Navantia, has remained largely silent on Lockheed’s successful bid.

The government is planning to build 15 new warships starting in the next three or four years, which will replace Canada’s 12 aging Halifax-class frigates and already-retired Iroquois-class destroyers. They’re to be the navy’s backbone for most of the century.

Read more: Feds aiming to select preferred design for $60B warships by end of month

Read more: Potentially hazardous mould found in Canadian warship

The bid by Lockheed, which also builds the F-35 stealth fighter and other military equipment, was contentious from the moment the design competition was launched in October 2016.

The federal government had originally said it wanted a “mature design” for its new warship fleet, which was widely interpreted as meaning a vessel that has already been built and used by another navy.

But the first Type 26 frigates are only now being built by the British government and the design has not yet been tested in full operation.

There were also complaints from industry that the deck was stacked in the Type 26’s favour because of Irving’s connections with British shipbuilder BAE, which originally designed the Type 26 and partnered with Lockheed to offer the ship to Canada.

Irving, which worked with the federal government to pick the top design, also partnered with BAE in 2016 on an ultimately unsuccessful bid to maintain the navy’s new Arctic patrol vessels and supply ships.

That 35-year contract ended up going to another company.

Irving and the federal government have repeatedly rejected such complaints, saying they conducted numerous consultations with industry and used a variety of firewalls and safeguards to ensure the choice was completely fair.

But industry insiders had long warned that Lockheed’s selection as the top bidder, combined with numerous changes to the requirements and competition terms after it was launched — including a number of deadline extensions — would spark lawsuits.

Government officials acknowledged last month the threat of legal action, which has become a favourite tactic for companies that lose defence contracts, but expressed confidence that they would be able to defend against such an attack.

Lee Berthiaume, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Temporary solution for Grasmere Post Office, future uncertain

Kootenay-Columbia Member of Parliament Rob Morrison says he’s hoping for a positive outcome

The Fernie Ghostriders trample Osoyoos

The Fernie Ghostriders trampled the Osoyoos Coyotes 7-1 Saturday night at Memorial… Continue reading

Ghostriders defenseman commits to North Dakota university

Ghostriders defenseman commits to North Dakota university

Fernie Public Works facility hosts grand opening.

The City of Fernie held the grand opening of its new $6.9… Continue reading

Ghostriders climb Rockies in nail biting home victory

The Ghostriders took a nail biting 6-5 victory at home against the… Continue reading

Fashion Fridays: Holiday outfits on a budget

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

University of Victoria threatens any athletes who speak about rowing coach probe

Barney Williams has been accused of harassment and abuse

B.C.’s largest catholic archdiocese names 9 clergymen in sex abuse report; probes ongoing

Vancouver Archdioces presides over 443,000 parishoners in B.C.

Columbia River Treaty: ‘It is going to get tough’

B.C. negotiator tells Nelson meeting that talks are cordial, so far

Smudging in B.C. classroom did not affect Christian family’s faith, says school district lawyer

Lawyers make closing arguments in a Port Alberni case about the Indigenous cultural practice

Canadian Forces member charged with possessing magic mushrooms in Comox

Master Cpl. Joshua Alexander, with the 407 Maritime Patrol Squadron, facing two drug related charges

Most B.C. residents, including those hit by 2018 storms, not prepared for outages: report

Create an emergency kit, BC Hydro says, and report all outages or downed lines

Study finds microplastics in all remote Arctic beluga whales tested

Lead author Rhiannon Moore says she wasn’t expecting to see so many microplastics so far north

Services needed in B.C. for early-onset Alzheimer’s disease patients: doctor, advocates

More patients are being diagnosed with Alzheimer’s at an earlier age

Most Read