Preserving capacity, General Tom Lawson, Chief of the Defence Staff, Keys to Canadian SAR
Issue link: http://vanguardcanada.uberflip.com/i/476674
S ShIPBuIlDINg www.vanguardcanada.com FEBRUARY/MARCH 2015 33 with far less fanfare, the government confi rmed Irving would be the prime contractor on the CSC, removing years of speculation about Irving's role in determining the warships' many systems providers and integrator. In the long run, the CSC announcement will prove far more signifi cant to the navy's future and to the eventual opportunities for both Canadian and international industry to participate in the most expensive shipbuilding project in the country's history. But the AOPS deal is a critical fi rst step in launching the ship- building portion of the government's National Shipbuilding Pro- curement Strategy and confi rms that, at least for now, the process is on schedule. It may also be signifi cant for the lessons it provides. Both the RCN and government have emphasized the role of the Halifax- class frigate modernization program in paving the way for the next generation of ships, and the approach taken for AOPS could prove important in how the government deals with contract is- sues around CSC. an innovative contract The success of the $2.3 billion patrol ships hinges on a design- then-build approach intended to mitigate risk. As a senior gov- ernment offi cial explained, "getting this approach right is key to addressing the questions of cost, capability and schedule." Having the ship completely designed before construction begins "maximizes production effi ciency, and reduces overall program risk," McCoy added. "Around the world, the best performing shipbuilding programs are those where the design of the ship is complete before construction begins." Over the past two years, in fact, Irving has been "maturing" the design through multiple reviews. That has led to a costing model "informed by data directly related to the shipyard, the ship, and its capabilities," the government said. That includes everything from a three-dimensional model to help understand all of the construction elements, to a competitively selected supply chain, multiple design and risk element reviews, all validated by an inde- pendent third-party, the American Bureau of Shipping. "Our cost estimates are informed by real data, real prices and real quotes from industry," said a senior offi cial with DND. He noted that a Parliamentary Budget Offi ce report in October 2014 questioning the cost of the AOPS had been based on a parametric model that is "typically used during the very early stages of a proj- "The contract is innovative, well thought out, appropriate and balanced and will ensure an eff ective partnership and collaboration between the govern- ment and Irving Shipbuilding."