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Future Government On The Hook For Temporary Navy Supply Ship Deal

The Canadian Press, 18 Aug, 2015 12:09 PM
  • Future Government On The Hook For Temporary Navy Supply Ship Deal
OTTAWA — The Harper government quietly changed regulations governing sole-source military purchases to kickstart negotiations for a temporary navy supply ship.
 
A line added to contracting regulations in June gave the federal cabinet authority to award a deal to a single company if there are urgent operational reasons and it fulfills an interim requirement.
 
The amendment came to light only recent as the federal government signed a letter of intent with Quebec's Davie Shipyard and Project Resolve, a subsidiary which will retrofit an existing civilian cargo to replenish warships at sea.
 
The navy is in a bind because it has retired its supply vessels —both of which were over 40 years old — and its joint support ship replacement project isn't expected to begin delivering until 2020 at the earliest.
 
Dave Perry, an analyst with Canadian Global Affairs Institute, says the letter of intent — signed one day before the federal election was called Aug. 2 — means a future government will be on the hook to either approve the five-year project or cancel it with costs.
 
He says changing the regulation is significant, but it is also a common sense authority that other countries have long given themselves. 

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