Mr. Speaker, my apologies. I am getting so enthusiastic about the topic that I got carried away.
I am especially pleased to see that the government plans to use a number of innovative practices to help ensure a successful, cost effective acquisition of the 28 maritime helicopters and the integrated mission system.
I will focus my remarks today on two measures in particular, the government's unprecedented commitment to industry dialogue and interaction, and the unique prequalification process that is the cornerstone of the procurement strategy for the maritime helicopter project.
As the Minister of Public Works and Government Services has informed the House, the defence contracting industry was made aware of the government's general intentions and requirements in relation to the maritime helicopter project through a letter of interest released last August. The letter of interest was much more than a statement of needs. It was also an invitation for individual companies to comment on the government's plans and to indicate their intention to participate in the competitive bidding process.
As the minister has already noted, the government has received input on its statement of operational requirements and procurement strategy from several companies. These comments will be given careful consideration as defence and procurement officials continue to define this project in the months ahead. The letter of interest has successfully initiated a dialogue with the industry which will not only continue but will broaden in scope and detail right up to the bid closing dates for each of the contracts.
We firmly believe that industry interaction is critical for large projects such as this. It protects the interests of taxpayers while ensuring that potential prime contractors and subcontractors are fully aware of the government's needs and intentions and do not assume an undue financial burden or risk in preparing their bids.
The government intends to make full use of the World Wide Web to facilitate this industry interaction. A dedicated website has already been established for the maritime helicopter project, as has been mentioned already, and information has been posted for the industry and other interested parties, including the Canadian public. Again, this reflects the government's commitment to a fair, open and transparent process.
As the project unfolds, the level of detail posted on the website, and thus the site's value to potential contractors, will grow. Draft specifications and other documents will be available through the website for review and comment by industry, the people who know what they are saying.
This interactive process could lead to changes in the technical requirements or other elements of the project. It will also increase the likelihood of technical compliance of candidate helicopters and integrated mission systems.
The second innovative procurement practice I wish to speak about today, the mandatory prequalification process, is in many ways an extension of the government's commitment to industry interaction. As hon. members have been informed, separate prequalification processes will be conducted for both contracts in advance of the formal submission of bids. This is the first time such a process has been used in Canada for a project of this size.
As the minister has already noted, prequalification should enable us to greatly minimize the problem of disqualification of bids due to technical non-compliance. This saves a lot of companies a lot of money. It stops them from getting into bids that they just cannot complete.
Mitigating the risk of non-compliance is good for the government because it ensures the maximum level of competition for the contracts. It is also good for the industry which, as hon. members can appreciate, invests an enormous amount of time and money in developing bids.
I want to make it clear yet again that prequalification will focus largely on the hardware aspects of each bid. Our goal is to make sure that potential prime contractors can conform with the technical requirements of the maritime helicopter project as set out by the Department of National Defence before—and I underline before—they submit a bid.
If a contractor cannot conform to these requirements there is no need to devote additional time and resources to developing or evaluating other elements of the bid, thereby saving us money and time.
To prequalify, potential prime contractors will be asked to provide an appropriate level of detail about their equipment and systems, which will be carefully reviewed by defence and public works and government services officials. Prime contractors will also have the opportunity to explain their proposed equipment and solutions, to seek clarification of technical issues and to address any concerns that might be raised on the government side.
Potential contractors that have not achieved prequalification status at least 30 days in advance of the bid close will be declared non-compliant and their bids will not be considered as part of the formal tendering process, thereby saving both sides a lot of time, money and aggravation.
Once the bids close, the normal process will be followed for selecting a successful contractor for government tenders awarded on the basis of lowest price. In addition to price and technical compliance and industrial and regional benefits, contractual terms and conditions will be part of that evaluation process.
For the basic helicopter, the price evaluation will include the basic helicopter, related ship modifications and in service support. For the integrated mission system, the evaluation will include the integrated mission system and its in service support.
The government clearly believes that Canada is more likely to meet both its technical and cost requirements for the maritime helicopter project by talking with the industry. Such dialogue will result in a better meeting of the minds, so to speak. It will reduce the risk to government and to industry alike.
Like the debate that is taking place in the House today, it will contribute to a successful procurement project that will respect the interests of taxpayers and meet the needs of the Canadian forces for many years to come.