Lockheed Martin-led Team to Undergo ‘Due Diligence’ in Canadian Warship Deal

The Government of Canada and Irving Shipbuilding have identified Lockheed Martin Canada as the preferred bidder to provide the design and design team for the Royal Canadian Navy’s future Canadian Surface Combatants.

Lockheed Martin Canada must now go through the “due diligence process,” which includes negotiations with the company on intellectual property rights, an assessment of combat systems performance and financial capability to deliver the project, together with the verification of various other administrative matters.

A contract award is expected this winter, with construction beginning in the early 2020s, according to a Canadian government statement.

Should the preferred bidder not successfully demonstrate to Canada and Irving Shipbuilding that it meets all of the due diligence requirements, then the next highest ranked compliant bidder will become the preferred bidder.

The new preferred bidder will then have to successfully demonstrate that it meets all of the due diligence requirements.

The identification of the preferred bidder follows a rigorous bid evaluation process. This process has been, and will continue to be, overseen by an independent Fairness Monitor. To date, the Fairness Monitor has submitted a series of interim reports on the Canadian Surface Combatant procurement process, and each of these reports have not identified any fairness deficiencies.

The Canadian Surface Combatant project is the largest, most complex procurement ever undertaken by the Government of Canada. These ships will form the backbone of our Royal Canadian Navy and will be Canada’s major surface component of maritime combat power for decades to come.

A statement from Gary Fudge, Vice President and General Manager of Lockheed Martin Canada said, “we are thrilled that Canada’s Combat Ship Team has been selected as the preferred bidder for the Canadian Surface Combatant design. We look forward to providing any additional information to the Government of Canada and Irving Shipbuilding.”