Preserving capacity, General Tom Lawson, Chief of the Defence Staff, Keys to Canadian SAR
Issue link: http://vanguardcanada.uberflip.com/i/476674
S ShIPBuIlDINg 34 FEBRUARY/MARCH 2015 www.vanguardcanada.com ect when critical design details are not known. As such, parametric models are subject to a wide range of uncertainty." Government offi cials, who asked not to be identifi ed, said ne- gotiation had been ongoing for the past 14 months to "ensure an innovative, incentive-based build contract." Though the deal calls for six ships, it guarantees fi ve for the same ceiling price if there are any unforeseen costs. However, it is "in Irving's best interest to keep costs down [and build all six ships] so as to receive an increased fee based on a negotiated incentivized fee structure," a senior offi cial said. The government called it a "cost reimbursable incentive fee- based contract" that assigns risk-sharing of key elements to ei- ther the shipyard or the Crown, depending on which is better equipped to manage that risk. "The challenge is to fi nd the ap- propriate balance between risk and cost certainty," the senior of- fi cial added. "The contract is innovative, well thought out, appropriate and balanced and will ensure an effective partnership and collabora- tion between the government and Irving Shipbuilding," McCoy said. Because the AOPS is a "new design and a new class of ship be- ing built in a brand new shipyard [and] these factors bring risks with them," the senior government offi cial said the overall project budget had been increased from the original $3.1 billion set in 2007 to $3.5 billion to cover contingencies such as potential fl uc- tuations in exchange rates, infl ation and labour costs. The lack of suffi cient allowance for contingencies was fl agged by the Auditor General in a recent report. According to the Royal Canadian Navy, although the review process did result in some changes to the ship design, "none... resulted in the elimination of major capability or effected [its] ability to meet all operational requirements." Among the notable changes, the ship was lengthened to make it simpler to produce, and some of its systems were simplifi ed. The AOPS will be 103 metres in length, 19 metres across the beam, and weigh 5200 tonnes, with a speed of 17 knots. "These ships are fundamentally designed to meet Canadian Armed Forces requirements," said the senior offi cial with DND, adding that the AOPS will be "capable of operating in the Arctic, providing a greater presence in the North further into the navi- gable season." McCoy stressed the importance of 3-D modelling of the entire ship to help engineers and builders understand every aspect. In particular, he pointed to hours of consultations with naval offi cers to review and optimize the "intricate layout" of the bridge. "The effort to get the design fully modelled will really pay dividends for the RCN during the life of the ship," he said, suggesting mainte- nance, future design modifi cations, logistics support or training could all benefi t. Irving is now completing the last design elements as it moves to a "build ready state" and will begin initial trials of its new facili- ties and processes in June with test modules before starting full production of the fi rst ship in September. The ships will be con- structed in 62 building blocks that will be stacked and assembled into three mega blocks – bow, centre and aft – and joined on a new land level facility. The fi rst ship is expected to roll off the slip in 2018, followed by one roughly ever nine months until 2022.