Canada Cancels Joint Support Ship
By AMI INTERNATIONAL INC.
Canada’s Joint Support Ship
(JSS) program has been canceled after both of the final bidders
in the program submitted noncompliant bids. The Minister of Public
Works and Government Services
announced the cancellation Aug. 22.
Sources indicated that both
ThyssenKrupp Marine Systems Canada Inc., headquartered in Ottawa,
and Toronto-based SNCLavalin
ProFac Inc. submitted bids that were
about $660.8 million over the budget of $1.72 billion, and speculated as
to why is might have happened.
First, they noted, it appears the
structure of the contract — with its
demands for industrial offsets,
changing requirements and a “Buy
Canada” policy — may have
played a part by shifting the majority of the program’s risk to the contractor. Additionally, the costs of
steel and other raw materials have
increased significantly since the
request for proposals were released
in June 2006.
The Canadian Navy has not
made a major procurement since
the Halifax-class frigates in the mid-
1980s. With the JSS program officially over, the Navy is now trying
to decide how to move forward in
order to replace its two Protecteur-class replenishment ships in the
2012-2016 time frame.
Sources noted that procurement
officials recently visited the
Netherlands to discuss the Schelde
Rotterdam-class landing platform
dock ship. Schelde was part of the
SNCLavalin ProFac team early in
the JSS program as designer, but
dropped out.
Industry officials suggest the
Navy also may be considering the
Netherlands-based Merwede Shipyard’s Multi-Role Vessel built for
New Zealand under Project Protector.
The JSSs were to have entered
service beginning in 2012, and the
sea service will likely attempt to
get the alternative vessels as close
to that schedule as possible. The
Navy would have to issue a modified request for proposal in 2009
for an off-the-shelf design in order
to get the program on track as soon
as possible.
Fincantieri Buys
Manitowoc Marine
Italy’s Fincantieri Cantieri Navali
SpA signed an agreement Aug. 4 to
acquire the Manitowoc Marine
Group of Manitowoc, Wis., from
its parent company, the Manitowoc
Co. Inc. The transaction is valued
at around $120 million and is an
all-cash deal, with Lockheed
Martin a minority investor in the
acquisition.
Manitowoc Marine Group is one
of the leading mid-sized shipbuilders in the United States for
commercial and government clients.
It comprises Marinette Marine
Corp. and Bay Shipbuilding Co.,
both in Wisconsin, and a repair yard
in Cleveland.
This strategic partnership will
allow Fincantieri to participate in the
U.S. Navy’s Littoral Combat Ship
program, which is expected to consist of as many as 55 vessels. In addition, Manitowoc Marine Group historically has supplied various craft
for the U.S. Coast Guard, including
small icebreakers and buoy tenders.
Manitowoc Marine Group will
benefit from Fincantieri’s vast expe-
U.S. COAST GUARD
Fincantieri’s acquisition of Manitowoc Marine Group will expand the company’s
reach in the U.S. ship market, including the U.S. military. Manitowoc has built a number of ships for the U.S. Coast Guard, including the Great Lakes-class icebreaker
Mackinaw, shown here during ice trials in March 2007 off Green Bay, Wis.
