Hon. Diane Marleau - 9:40
Ind. (NS)
...More
Thank you.
I'm pleased to be here to ask you some questions, Minister.
I'm going to ask questions about the Victoria in-service support contract. My understanding is that Treasury Board was asked for about $1.5 billion for the total contract. And it's divided into three levels: level one maintenance; level two maintenance; and level three maintenance, extended dock and work period major submarine overhauls and refits.
The puzzling thing is, although it's a $1.5 billion contract, only $57 million has gone to tender. That's 4% of the contract; 96% is not tendered. I wonder, did the original tender include only the first level of maintenance, the second level...? I don't believe it could have included the third level of maintenance in the program. What did the first tender include?
...Less
Hon. Michael Fortier - 9:41
Ind. (NS)
...More
But the contract is $1.5 billion and only 4% went to tender. The contractors deemed to be the preferred bidders say that significant work packages such as submarine refits and equipment overhauls will be added by contract amendment.
This means that 4% went to tender and 96% will be added by amendments. So the amendments will be 25 times bigger than the original contract. That simply does not make sense, and it does not provide for any accountability.
...Less
Hon. Michael Fortier - 9:42
Liliane saint pierre - 9:42
Ind. (NS)
...More
So that's the only part of the $1.5 billion contract that will go to a public tender process. Only 4% will be tendered, and 96% will not be tendered.
...Less
Liliane saint pierre - 9:43
Ind. (NS)
...More
According to the contractor, there's a scheduled refit to start in early 2009. They've already said that the contract will be amended. That refit is scheduled. Will that go to tender?
...Less
Liliane saint pierre - 9:43
Liliane saint pierre - 9:44
Ind. (NS)
...More
Only the 4% of the contract is going to go to public tender?
...Less
Liliane saint pierre - 9:44
Ind. (NS)
...More
That company, but nobody else, will be asked to tender on it or provide prices?
...Less
Liliane saint pierre - 9:45
Ind. (NS)
...More
Does it make sense that the amendments are going to be 25 times more than the original contract? Does that make sense to anybody? I don't think it does.
...Less
Liliane saint pierre - 9:45
Ind. (NS)
Liliane saint pierre - 9:45
Hon. Diane Marleau - 9:45
Ind. (NS)
...More
Let me ask you this. The contractor, in their press release, when they were identified as the preferred bidder--the contract is not signed, but they've been identified--says, “Significant work packages such as summary refits and equipment overhauls will be added by contract amendment as emergent activities.”
The first unforeseen event is scheduled to begin in early 2009. In documents we have here, DND also said that this refit is scheduled.
...Less
Liliane saint pierre - 9:46
Ind. (NS)
...More
The contractors say it's scheduled.
Why is that not in the original, initial contract? Everybody knows it's there. It's scheduled. The contract is not signed. Why is that not included?
...Less
Liliane saint pierre - 9:46
Hon. Diane Marleau - 9:46
Hon. Diane Marleau - 10:28
Ind. (NS)
...More
Thank you.
The Victoria submarine went into dry dock in July 2005 for an extended docking work overhaul. It's still there, and the commander of the subdivision says they're not going to be able to get it out in a three-year period, that it looks like four years for the extended docking work program. Do you have an estimate of how much that refit is going to cost?
...Less
Liliane saint pierre - 10:28
Ind. (NS)
...More
Can you get us one? Can you get the committee a cost of that?
...Less
Liliane saint pierre - 10:28
Hon. Michael Fortier - 10:28
Liliane saint pierre - 10:28