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

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

Fraser Health registered nurse Kai Kayibadi draws a dose of the Pfizer COVID-19 vaccine into a syringe at a walk-up vaccination clinic at Bear Creek Park, in Surrey, B.C., on Monday, May 17, 2021. To reduce long lines and wait times the first 1,000 Surrey residents to arrive at the neighbourhood clinic on both Monday and Tuesday will receive wristbands and a same-day appointment. The effort is in addition to the provincial vaccination plan which is now open for bookings to anyone who is 18 years and older. THE CANADIAN PRESS/Darryl Dyck
69 new cases of COVID-19 reported in Interior Health

The province, in total, recorded 411 new cases showing a downtrend of new infections

Enderby’s annual Clean-Up Challenge will use a self-guided format this year in keeping with COVID-19 public health guidelines. The challenge will take place Saturday, May 29, 2021. (File photo)
Enderby clean-up challenge back with pandemic-friendly format

This year’s self-guided Clean-Up Challenge to beautify the city will take place Saturday, May 29

Okanagan Landing Bench Road will be closed between Okanagan Landing Road and Bench Row Road Wednesday, May 19, from 7:30 a.m. to approximately 3 p.m. for maintenance and line painting. (City of Vernon graphic)
Vernon road to close for eight hours

Okanagan Landing Bench Road will be shut between Bench Row Road and Okanagan Landing Road Wednesday, May 19, from 7:30 a.m. to 3 p.m.

Vernon Pickleball Association members Rob Irving, from left, Myron Hocevar, Don Friesen and Ian Phillips flank Vernon Mayor Victor Cumming, centre, inside the newly roofed Okanagan Wealth Advisors Pickleball Complex at Marshall Fields. (City of Vernon photo)
Vernon pickleball group raises new roof on complex

Vernon Pickleball Association’s Okanagan Wealth Advisors complex available now for year-round play

Lake Country’s Airport Inn may become the future site of long-term rental housing. (File photo)
Rumours persist long-term rentals slated for Lake Country Airport Inn site

Sale of controversial highway-side accommodation not final, no development permit application applied for - yet

A prowling coyote proved no match for a stray black cat who chased it out of a Port Moody parking lot Friday, May 14. (Twitter/Screen grab)
VIDEO: Little but fierce: Cat spotted chasing off coyote by Port Moody police

The black cat is seen jumping out from under a parked car and running the wild animal out of a vacant lot

A forest of dance-protesters outside the BC Legislature on April 11. These participants were doing the Dance for the Ancient Forest in support of the Fairy Creek blockade and against old-growth logging. (Zoë Ducklow/News Staff)
Arrests begin at Fairy Creek blockade on Vancouver Island

Five protesters arrested as RCMP begin to enforce injunction

A thunderstorm pictured in Fraser Valley in 2021. (Black Press Media/Jaimie Grafstrom)
Wildfire concerns sparked after 320+ lightning strikes blasted B.C. yesterday

Approximately one-quarter of the province is currently listed as being at moderate risk of fire

WorkSafe BC is out in the Interior making sure wineries, cideries and breweries are adhering to COVID-19 safety protocols. (File photo)
WorkSafe visiting Interior wineries, cideries and breweries ahead of tourist tasting season

40 field inspections and 35 consultations are expected over next few weeks

B.C. RCMP released these two photos of Erick Fryer (left) and Carlo Fryer (right). The two brothers from Kamloops were found dead near a remote road in Naramata May 10, 2021. (RCMP photo)
Slain Kamloops brothers found near Penticton not likely connected to recent B.C. gang wars: RCMP

Police confirm the bodies found near Naramata as Erick Fryer, 29, and Carlo Fryer, 31

Several RCMP cruisers stationed out front of Kelowna’s Global Fitness following a shooting on the morning of Monday, March 29. The shooting was later revealed to be gang-related. (Michael Rodriguez/Capital News)
B.C.’s top gangs are operating in Kelowna: RCMP

‘We have all of the major gangs in Kelowna,’ said Supt. Kara Triance

Kelowna RCMP precinct. (Michael Rodriguez/Capital News file)
Kelowna RCMP promotion process tainted with bias: federal judge

An officer was passed over for a promotion in 2015

A restaurant server on White Rock’s Marine Drive serves customers on a roadside patio. Indoor dining and recreational travel bans have been in effect since late March in B.C. (Peace Arch News)
B.C.’s COVID-19 infection rate falls to 411 cases Tuesday

360 people in hospital, up slightly, two more deaths

The Banff National Park entrance is shown in Banff, Alta., Tuesday, March 24, 2020. THE CANADIAN PRESS/Jeff McIntosh
Minister asks Canadians to camp carefully in national parks as season starts

Kitchen shelters in Banff National Park closed, trails on Vancouver Island will only be one-way

Most Read