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

A conceptual rendering of the commercial plaza at 1130 Rocky Creek Road. (Town of Ladysmith/June 15 Council Agenda)
Rocky Creek commercial plaza passes public hearing

The proposed plaza at 1130 Rocky Creek Road would bring commercial activity to Ladysmith’s north end

Kate Cram and her team at Old Town Ice Cream are thrilled to be open for business. (Cole Schisler photo)
Old Town Ice Cream opens up right on time for summer

Located at 539 1st Avenue, Old Time Ice Cream is open from 10 a.m. to 7 p.m. daily

Things are looking up for Vancouver Island as zero COVID-19 cases have been reported for the first time since October. THE CANADIAN PRESS/Darryl Dyck
Island records zero new COVID-19 cases for the first time since October

For the first time since October, the province is reporting zero new… Continue reading

Black Press file photo
RCMP seek suspect in Vancouver Island-wide crime spree

Crimes stretched from Deep Bay to Qualicum, Ladysmith, Chemainus and Youbou

Volunteers Alex Cook, Ron Dashwood, and Bill Drysdale have been hard at work restoring the old Ladysmith train station. (Cole Schisler photo)
Train station restoration on track for future community open house

Community is asked to give feedback on what they think the best use is for the station

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

New research suggests wolves can be steered away from the endangered caribou herds they prey on by making the man-made trails they use to hunt harder to move along. THE CANADIAN PRESS/Nathan Denette
Culling cutlines, not B.C. wolves, key to preserving caribou herds: researcher

The government has turned to killing hundreds of wolves in an effort to keep caribou around

Gary Abbott (left) and Louis De Jaeger were two of the organizers for the 2014 Spirit of the People Powwow in Chilliwack. Monday, June 21, 2021 is Indigenous Peoples Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of June 20 to 26

Indigenous Peoples Day, Take Your Dog to Work Day, Onion Rings Day all coming up this week

Gwen Spencer Hethey with her uncle and mentor Major Frederick Richardson. (Courtesy of Greater Victoria Sports Hall of Fame)
‘She was a killer’: The B.C. woman who pioneered female sharpshooting

Gwen Spencer Hethey made military men ‘look like turkeys’ says her son

Central Okanagan Grade 12 grads are set to get $500 each after a more than $1 million donation from a Kelowna couple. (File photo)
B.C. couple donating $500 to every Grade 12 student in the Okanagan

Anonymous donors identified as Kelowna entrepreneurs Lance and Tammy Torgerson

Rita Coolidge played the main stage at Vancouver Island Musicfest in 2017. (Black Press file photo)
This year’s Vancouver Island MusicFest to virtually showcase beauty of Comox Valley

Returning July 9 through 11 with more than 25 hours of music performances

British Columbia’s premier says he’s received a second dose of the Oxford-AstraZeneca COVID-19 vaccine. (Twitter/John Horgan)
B.C. premier gets 2nd dose of AstraZeneca COVID-19 vaccine

John Horgan shared a photo of himself on social media Friday afternoon holding a completed vaccination card

A lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018.THE CANADIAN PRESS
No winning ticket sold for Friday’s $70 million Lotto Max jackpot

The huge jackpot has remained unclaimed for several weeks now

Most Read