In The Media

Shipbuilder appeals directly to Sajjan in warship design contest then doesn’t deliver formal bid

by Murray Brewster (feat. Dave Perry)

CBC News
December 5, 2017

Just weeks before the competition to design Canada's next warship closed, a French and Italian consortium tossed what amounts to a political Hail Mary into the bidding process for the proposed $60 billion program.

Naval Group and Fincantieri delivered its now highly-publicised, eye-popping, proposal to Defence Minister Harjit Sajjan, CBC News has learned.

The pitch, which suggested Canada could save tens of billions of dollars, appears to be a frustrating parting shot for a consortium which had been considered one of the leading contenders in the highly-anticipated program.

It was a parting shot because CBC News has learned the French and Italian consortium did not submit a formal bid by the Nov. 30 deadline to make its FREMM-class frigates Canada's new surface warships. 

"Fincantieri and Naval Group have made a business decision not to submit a bid under the current Request For Proposal (RFP) issued by Irving Shipbuilding Industry," said Alix Donnelly, a spokesman for Naval Group, in an email Tuesday morning. 

The decision, he added, was made after a careful evaluation.

"We have finally developed a global proposal outside the terms of the official RFP to the Ministry of Defence to meet the Canadian needs on the long term, based on our FREMM program," Donnelly said.

What the French and Italian consortium was trying to achieve by making an informal pitch to Sajjan outside of the structured bidding process, remains unclear. 

In a story quoting unnamed sources, The National Post reported last week that Naval Group and Fincantieri had pitched  a frigate replacement plan that would be $32 billion cheaper than the existing project estimate and involve building three of the 15 warships in Europe.

The informal proposal given to Sajjan, a copy of which was obtained by CBC News, also pledges a "fix price guarantee" and — significantly — promises to start construction of the first FREMM at the Irving Shipyard in Halifax in 2019.

It says it would charge $1.3 billion per ship, but "the final contract price will have to be defined by Irving Shipbuilding Inc.," which is the federal government's go-to yard for warship construction.

What the minister did with the pitch, dated Nov. 6, 2017, is unclear.

3 bids

Sajjan's office would not answer questions on Monday and referred all queries to Public Services and Procurement Canada, which issued a statement on Tuesday condemning the pitch.

The ​submission of an "unsolicited proposal at the final hour undermines" the national shipbuilding strategy and suggests the federal government enter into a sole source contracting arrangement. 

"Acceptance of such a proposal would break faith with the bidders who invested time and effort to participate in the competitive process, put at risk the government's ability to properly equip the Royal Canadian Navy and would establish a harmful precedent for future competitive procurements," said the department's statement.

"To be clear, any proposals submitted outside of the established competitive process will not be considered."

The federal government received at least three bids for warship design by the time the over 13 month competition closed, said several sources with knowledge of the file.

Among the acknowledged bidders is the Spanish-led Navantia-Saab team, which is offering its F-105 frigate design. As well, Lockheed-Martin Canada and British-based BAE Systems Inc. made headlines last week with the submission of their proposal. The third bidder remains unknown. 

Federal officials made it clear previously they will not identify bidders until the process is over and a winner is declared.

Frequent complaints

Dave Perry, a defence analyst at the Canadian Global Affairs Institute, said he wasn't surprised with the latest development because the "French and Italians had been the most vocal about the problems they had with the process."

Bidders have complained Canada was asking for too much intellectual property data in its submission and there were also concerns about the transfer of top secret government-to-government information on systems such as radar and combat management equipment.

Officials close to the project, who spoke on background because of the sensitivity of the file, said dropping a proposal on the defence's minister's desk was an attempt to undermine the national shipbuilding strategy.

Perry was not prepared to go that far.

"I can't tell how much of it was a knock against the formal process; a suggestion that the current process is going to end in tears and this is a backup plan; or an acknowledgement that they [Naval Group and Fincantieri] weren't going to be successful," he said.

Industry sources have repeatedly suggested that the bidders were unhappy because they believed the process has been tilted in favour the BAE bid, which offers the Type 26 frigate, a warship that has only just entered production and has yet to establish a service history.  

The Pentagon has indicated it is ready to open up its own much bigger program to replace U.S. Navy frigates to foreign warship designers.

Perry said he doesn't believe that, by itself, would have been enough to scuttle the FREMM bid.

Be the first to comment

Please check your e-mail for a link to activate your account.

Annual Defence Procurement Conference

Ottawa, Ontario

October 25, 2022


G7 Update

by Heather Hiscox (feat. Andrew Rasiulis), CBC, June 30, 2022

Inside Policy: Russia’s invasion of Ukraine

by Editorial Staff (feat. Rob Huebert), MLI, June 30, 2022

Canada to upgrade Latvia battlegroup to a brigade, boost number of troops

by Editorial Staff (feat. David Perry), Kelowna Now, June 29, 2022

What slowdown? Canada's economy to top G7 on high oil, crop prices

by Julie Gordon and Rod Gordon (feat. Kevin Birn), Saltwire, June 29, 2022

Alliance renforcée

by Céline Galipeau (feat. Stefanie von Hlatky), Le Tele Journal, June 29, 2022

1.6 million public chargers needed in Canada for EV transition

by Larysa Harapyn (feat. Brian Kingston), The Financial Post, June 29, 2022

Passport? What passport?

by Martin C. Barr (feat. Andrew Griffith), Laval News, June 29, 2022

Oil production test looms for OPEC heavyweights Saudi Arabia, UAE

by Editorial Staff (feat. Ellen Wald), S&P Global, June 29, 2022

Eric Nuttall & Amrita Sen - Oil & Energy Update

by Eric Nuttall (feat. Amrita Sen), Nine Point Partners, June 29, 2022

All talk, no traction

by Maura Forest and Andy Blatchford (feat. Robert Huebert), Politico, June 29, 2022

U.S. pushes for Russian oil price ceiling. Feasible?

by Matt Levin (feat. Ellen Wald), MARKETPLACE, June 28, 2022

Russia Ukraine Update

by Susan Bonner (feat. Andrew Rasiulis), CBC Radio One, June 28, 2022

Un sommet de l’OTAN pour tenir tête à la Russie

by Marie Vastel (feat. David Perry), Le Devoir, June 26, 2022

A geopolitical alternative system of co-operation for nations

by Staff Reporter (feat. Swaran Singh), The Zimbabwe Mail, June 26, 2022

Analyst says high oil prices spurs little drilling

by Lee Harding (feat. Kevin Birn), Western Standard, June 26, 2022

It’s time for Canada to get serious about defence

by John Ibbitson (feat. James Fergusson and Rob Huebert), The Globe and Mail, June 25, 2022

Trudeau meets with Rwandan president, expands diplomatic mission in Kigali

by CBC Newsroom Staff (feat. Colin Robertson), CBC Newroom, June 24, 2022

With New Threats Looming, Canada Commits Billions to Air Defense

by News Desk (feat. Andrea Charron), New Express News, June 24, 2022

Drop in oil prices is not a quick fix for global inflation

by Editorial Staff (feat. Amrita Sen), The National, June 24, 2022

Highs and Lows of the Spring Sitting

by Peter Van Dusen (feat. Andrew Griffith), Prime Time Politics, June 24, 2022

Oil Incurs Second Weekly Loss As Analysts Differ On Inflation, Demand

by Ship and Bunker News Team (feat. Amrita Sen), Ship And Bunker, June 24, 2022


Canadian Global Affairs Institute
Suite 1800, 150–9th Avenue SW
Calgary, Alberta, Canada T2P 3H9


Canadian Global Affairs Institute
8 York Street, 2nd Floor
Ottawa, Ontario, Canada K1N 5S6


Phone: (613) 288-2529
Email: [email protected]


Making sense of our complex world.
Déchiffrer la complexité de notre monde.


© 2002-2022 Canadian Global Affairs Institute
Charitable Registration No. 87982 7913 RR0001


Sign in with Facebook | Sign in with Twitter | Sign in with Email