Canada’s upcoming submarine procurement competition was prominently featured at the Conference of Defence Associations Institute’s annual gathering in Ottawa. Germany’s ThyssenKrupp Marine Systems and South Korea’s Hanwha Ocean, major contenders for the contract, showcased miniature models of their submarines at the event. The Secretary of State for Defence Procurement highlighted the submarine contract as a successful story amid efforts to improve procurement efficiency.
Emphasizing the government’s commitment to an open and transparent process, Stephen Fuhr, during his keynote speech, addressed concerns about potential contract splitting. He clarified that the government is currently seeking a single partner for the submarine project. However, he hinted that circumstances could change in the future.
Vice-Admiral Angus Topshee discussed the efficiency of a unified fleet versus a mixed one, expressing preference for a single class of submarines. He reiterated Prime Minister Mark Carney’s stance against splitting the contract and mentioned ongoing planning based on that directive.
Fuhr introduced the Defence Investment Agency as a solution to streamline procurement processes by consolidating oversight of major acquisitions. The agency, set to become an independent entity, will have authority over procurements exceeding $100 million. Fuhr highlighted the significance of the submarine deal, potentially being one of the largest procurements in Canada’s history.
Final proposals from ThyssenKrupp Marine Systems and Hanwha Ocean were submitted to the government recently. TKMS CEO Oliver Burkhard indicated openness to a mixed fleet but cautioned about potential complications. He mentioned a collaboration with a Quebec company for local submarine segment production if TKMS wins the contract.
The decision-making process will consider the economic and industrial benefits promised by the competing firms. Industry Minister Mélanie Joly stressed the importance of these benefits in selecting the winning bidder. Hanwha Ocean’s naval division president, Charlie SC Eoh, focused on providing the best solution for Canada, emphasizing the importance of meeting submarine capability needs effectively.
Both firms have signed numerous agreements with Canadian businesses and universities for submarine-related work. Burkhard anticipates the Canadian government’s final decision on the contract by summer.
