VICTORIA - The federal government is extending the bid deadline for billions of dollars in shipbuilding work by two weeks, rejecting a request by two shipyards for a two-month extension.
July 21 is the new deadline, replacing the July 7 deadline, Public Works and Government Services announced Thursday afternoon. That federal department is managing the bid process and evaluation for $33 billion in two packages of contracts to build large vessels.
British Columbia's Seaspan and Irving Shipbuilding in Nova Scotia had urged the federal government to stick to its July 7 deadline. B.C. Premier Christy Clark and Nova Scotia Premier Darrell Dexter also called for the government to hold to that date.
The financially troubled Davie Yards, of Quebec, and Upper Lakes Marine and Industrial's Seaway yard, in Ontario, had asked for the bid deadline to be moved to Sept. 12.
A Davie official has said that without the extension, the company would not be able to bid.
Marie-Christine St-Pierre, Davie spokeswoman, said in an email, "We requested an extension until Sept. 12, which seemed to us as a realistic and reasonable demand. The two more weeks granted extension is disappointing, but we are already looking at all the options with our partners to see how it could be possible to reach the July 21 date."
Public Works said in a news release, "The National Shipbuilding Procurement Strategy Deputy Ministers' Governance Committee has determined that a two-month extension would be unacceptable, as it would have significant and unacceptable impacts."
"However, the detailed review of costs and program impacts associated with making this decision permits Canada to grant a two-week extension. This is the maximum flexibility available to Canada without incurring costs and/or causing unacceptable impact on the NSPS program. This extension is provided in the interests of maximizing competitiveness, which is in the best interests of Canadian taxpayers."
The release also said that the requests for extension come at a very late stage in the process.
"Canada believes that the high degree of consultation with bidders on the content and timing of the RFP (request for proposals) and the secretariat's responsiveness to questions posed during the bid period have demonstrated that Canada's actions to date have been entirely reasonable."
Also taken into account was the impact on the project schedule if a two-month extension were approved, the release said.
"The two-month bid extension requested would further delay those important projects and lead to significant additional costs to Canada. We, therefore, have come to the conclusion that the costs and the operational impacts on the NSPS process of granting the requested extension would be significant and unacceptable."
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