Evidence of meeting #158 for Government Operations and Estimates in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was system.
A video is available from Parliament.
3:45 p.m.
Minister of Public Services and Procurement and Accessibility
I apologize. Delivery is in 2025 or 2026; cutting steel is in 2021.
3:45 p.m.
Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services
It's in the—
3:45 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Are you sure of that?
Can I ask when you received updated information? I'm looking at the British T-26 project. They're much further ahead of us. They're not planning delivery until 2025.
3:45 p.m.
Minister of Public Services and Procurement and Accessibility
I'm sorry; it's in the early 2020s.
3:45 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
How is it that we don't even have a contract yet and we are going to leap four years ahead of where the British are?
3:50 p.m.
Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services
As you may have heard, we identified a preferred bidder in October. We are in the final throes of the negotiations, a phase that we call a “conditions precedent” phase, in which we look at intellectual property, capability.... If everything goes well, we are expecting to award the contract to the preferred bidder early in 2019.
From there, the next phase will be the design phase, which—
3:50 p.m.
Conservative
3:50 p.m.
Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services
It will be in the early 2020s.
3:50 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
If we grant the design in early 2019, when are we going to start?
3:50 p.m.
Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services
After a few years of the design phase, in the early 2020s we expect to cut steel, with the first deliveries—
3:50 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
You say “early 2020s”. I'm not asking about what part of the decade. What year can we expect to start? It's a simple question.
3:50 p.m.
Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services
As the first step, once we have awarded the contract with the ship designer, we will obviously plan the next few years of work of design. Once we have these first engagements, with the actual contract awarded, we will be able to refine the schedule.
We're expecting two to three years of design work before we can actually cut steel. Let's say early 2019 to 2022, then cut steel, with a delivery in the 2025 time frame.
Again, at this stage we have identified a preferred bidder, but we have not sat down and awarded the contract.
3:50 p.m.
Assistant Deputy Minister, Defence and Marine Procurement, Acquisitions Program, Department of Public Works and Government Services
I would say so.
3:50 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Okay.
Concerning the three icebreakers we bought from Sweden 18 years ago, the public security documents released by BNN stated that the value for the three icebreakers was $68 million. We know there have been no significant upgrades to those icebreakers in the last 18 years. After 18 years of wear and tear, we purchased them for $660 million, I think.
Do you believe we got the right price for them?
3:50 p.m.
Associate Deputy Minister, Department of Public Works and Government Services
We did an analysis of the costing, including getting third party expert advice when entering into the negotiations for them. We believe, based on that advice, that we did get—
3:50 p.m.
Conservative
3:50 p.m.
Associate Deputy Minister, Department of Public Works and Government Services
It was a firm on.... I can't remember the name. I will get it to the committee, sir.
3:50 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Did we look at leasing the three? I understand that the original plan was to lease the three.
3:50 p.m.
Associate Deputy Minister, Department of Public Works and Government Services
The Coast Guard looked at leasing and in the end decided that the better objective was to purchase, so that they can maintain that ship throughout its life.
3:50 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
It was a Coast Guard decision to purchase and not to lease.
3:50 p.m.
Associate Deputy Minister, Department of Public Works and Government Services
It was a Coast Guard decision at the end of the day. The Coast Guard in the end decided that they would like to have a purchase so that they can maintain the vessel as part of their fleet through the remainder of its service.
3:50 p.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Great.
Now, in the public accounts committee last week, a senior procurement official from PSPC said that the government is looking at moving the aerospace engineering test establishment out of Cold Lake to Ottawa.
I'm wondering, Minister, whether you support this move.
3:50 p.m.
Minister of Public Services and Procurement and Accessibility
I am very concerned with making sure that we have the right facilities in the right regions of our country, and if the advice and the decision are that.... It's a very difficult decision, because I have a daughter who went to Cold Lake and I understand the implications, but if that's where it needs to be, that's where it needs to be.