Vanguard Magazine

ler shaft bearing technology. Given that Thordon, a Thomson-Gordon Group company, was omitted from both the JSS and CSC projects is particularly surprising, given the company's long and success- ful history in naval propulsion, supplying bearing systems to over 40 navies around the world, not least with Royal Canadian Navy (RCN) and Canadian Coast Guard (CCG) projects. Thordon played a key role in the success of the RCN Halifax-class frigates, which the CSC will replace and has recently sup- plied propeller shaft bearings to Canada's new Harry DeWolf-class Arctic and Off- shore Patrol Vessels. The company is also supplier to the CCG of a unique shaft seal that was developed under the IRAP and BCIP programs – federal R&D programs that support the development of new tech- nologies for use in Canada and for export. "It is a chess game," says McGowan. "The policy is complicated and lacks trans- parency. Canadian companies cannot find out the details or hold accountable those responsible for administering the pro- gram." McGowan suggests the problem starts with the Government of Canada guiding shipyards who typically want to deal with one propulsion integrator that takes on the risk of the entire propulsion system, and simplifying their supply chain. "The government appoints the shipyard as the prime contractor. The shipyard then appoints the engine builder as the key system integrator, which then contracts out to their preferred suppliers, who sub- sequently go on to subcontract work to their preferred component manufacturers. Most often, these are not Canadian com- panies. The Canadian content require- ment is lost," he says. For example, while Thordon Bearings was involved in early-stage discussions of the RCN JSS project and advised Seaspan and the government on the use of water- lubricated bearings, the European system integrator then sub-contracted its pre- ferred suppliers, which in turn ended up signing bearing supply contracts with an individual European supplier. "Canadian ships are being built but some of Canada's leading suppliers are not being given the opportunity to quote on many of these projects, despite some of these companies having a long, successful history supplying naval projects at home and abroad," says McGowan. "Under the current defence procure- ment process, it is likely that shaftline sys- tems will be supplied to these vessels that are at best adequate. They are certainly not the best available especially when the best available performance and lowest through life costs are provided by Canadian equip- ment manufacturers." Dimitrieff agrees, explaining that while Patriot as a Tier 3 Supplier has supplied forged machined parts to systems built for US Naval programs, including destroyers, submarines, and aircraft carriers, the com- pany is unable to supply to its country's own warships. "I have been trying to have conversa- tions for more than five years with the right people in the supply chain about how we can get involved as a potential supplier. I think it is easier for these large global scale, European based prime con- tractors, and system integrators if they don't have to include new vendors; they see it as less risky. The reality is that there is no risk involved in using Patriot Forge. We are a very capable, world-class provider involved in a number of high-profile proj- ects in a number of critical supply chains. We are proven and capable of delivering best in class solutions to the most exacting requirements." 30 OCTOBER/NOVEMBER 2020 www.vanguardcanada.com shiPbuilding me. Many Canadian SME firms have very high capability to deliver the NSS require- ment, but they are not given a fair shot to compete to supply to these programs. The NSS just isn't working as we and perhaps even the government understand it was in- tended to work. It completely ignores the long-term view of strategic capability of supply – something, I understand, was one of its primary objectives," he says. Despite Canada having the manufactur- ing capability and knowhow to produce the strategic core components required of naval shipbuilding, Dimitrieff suggests that few of these companies and systems are being integrated into the supply chain due to a lack of governmental understand- ing of Tier 2 or Tier 3 level supply. "Contracts are awarded to the larger well-established European integrators which have their own proven, established European vendors in their supply chains. Unless compelled by the Government of Canada to consider looking at Canadian suppliers, then there is zero incentive for them to consider Canadian suppliers for those complex components." He believes it should be mandatory that strategic, critical components are pro- duced within North America or possibly in combination with other close allies that have strong, robust chains of supply, in a way not dissimilar to the defence procure- ment processes designed to protect British and Australian maritime industries. Equally concerned is Terry McGowan, the President and CEO of Burlington- based Thordon Bearings, the globally rec- ognised leader in water lubricated propel- "I think this is a big issue, these ships, based on existing designs, are simply being assembled in Canada with much of the most critical equipment and systems, particularly propul- sion and related equipment, brought in from overseas, despite there being domestic capability for the projects." — Robert Dimitrieff, President, Patriot Forge Co "The policy is complicated and lacks transparency. Canadian companies cannot find out the details or hold accountable those responsible for administering the program." — Terry McGowan, the President and CEO of Burlington-based Thordon Bearings

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