Submarine overhauls like 'unstuffing a sausage'
Chamber of Commerce, politicians laud unofficial decision that will bring major refits to Victoria Carrying out a major overhaul on a submarine is far
more complex than doing a refit on a boat, even a big one.
Not only is it highly technical work involving sophisticated equipment that must be tested and recalibrated, but space is tight in what the industry calls a restrictive environment.
"It's like unstuffing a sausage," says Rollie Webb, president of shipyards for Washington Marine Group. Everything comes out in order and must go back the same way.
Victoria Shipyards and its workers are anticipating taking on the job of overhauling Canada's four submarines, starting in early 2009. A contract hasn't been signed yet, but the federal government told the three bidders for the job on Wednesday that it would be negotiating an agreement only with Canadian Submarine Management Group, which includes Victoria Shipyards.
"It's a great day for B.C.," Webb said from Vancouver yesterday. "It's going
to be good for Victoria."
Plans call for the submarines to rotate through the graving dock for regular
overhauls. About 150 workers will be needed. Top salaries are close to $30 an hour.
Michel Bouchard, a vice-president with Weir Canada and project manager for the submarine bid, said from Mississauga, Ont., that said the bid is a joint venture with DML Devonport of England and Weir Canada, owned by the Weir Group of Scotland, engineering experts, with Victoria Shipyards as a sub-contractor.
The amount of what is expected to be a 15-year contract is not known, although the figure of $1.45 billion has been talked about. Bouchard said it will likely be plus or minus 25 per cent of that amount.
CSMG will set up offices in Ottawa, Victoria, and Halifax. Because three of the subs are based on the East Coast, CSMG will do maintenance work on them while they are in service there.
Initially, DML workers with expertise working on submarines will be in Victoria for the overhauls. The intention is to quickly transfer that expertise "so that all the work is done by Canadian residents," Bouchard said. "Victoria will become the centre of excellence for submarine engineering expertise."
Local work will include removing, inspecting and installing equipment, and hull inspections. "It is a very complex activity that will last from one year to 18 months," he said.
In addition to work at the shipyards, where 550 workers are now employed, CSMG will buy supplies locally, he said. h a
Mario Baril, Public Works and Government Services Canada spokesman, said from Ottawa that the original tender was issued in September 2005 but none of the
three bidders met the requirements. A meeting was held with the bidders and the tender went out again in July of last year, with some new requirements.
Baril said the bidders going up against CSMG were the Atlantic Submarine Group, with Peter Kiewit, Thyssen Krupp, Bell Alliant and L-3, and the another group was made up of Irving Shipyards Inc., owner of Halifax Shipyards, partnering with BAE Systems Submarines of the U.K., the company that built the ships and has a maintenance contract running into this summer, Fleetway and Lockheed.
Details are not being released about why one bid was preferred over others, he said. Bidders may request private debriefings. A fairness monitor was used to ensure the process was done appropriately.
The goal is to award the contract by August, Baril said.
Negotiations will include the value of the contract.
Submarines HMCS Windsor, Corner Brook and Chicoutimi, which was damaged in an earlier fire in which a sailor was killed, are based in Halifax. HMCS Victoria is based at Esquimalt.
The Corner Brook is being used in exercises, Sub-Lieut. Jordan Holder, navy public affairs spokesman, said from Ottawa. That sub will be the first to arrive here, in early 2009.
Next to come will be the Chicoutimi, now out of the water. It will delivered
on board a ship, said Karen Johnstone, Department of National Defence spokeswoman in Ottawa.
Greater Victoria Chamber of Commerce CEO Bruce Carter said the contract will
help maintain and build this region's marine-related industry. "It may work as a building block for Camosun College, for instance, to do specialized training."
Victoria Mayor Alan Lowe said the expected contract "means good, secure jobs
in Victoria."
UVic labour economist Dr. Herbert Schuetze said that in terms of employment,
the impact is probably not that large. It will create ongoing work, which can prompt people to buy more durable goods such as homes and vehicles.
Kael Campbell, of Red Seal Recruiting, expects demand for workers such as metal fabricators -- already high -- to increase.
While Victoria is celebrating, Halifax is not. Jamie Vasler, business agent for Local 1 of CAW Marine Workers Federation in Halifax, said the news hit, "like a tonne of bricks."
In their favour, the Halifax Shipyard is located next to the navy's dockyard, members have expertise on the subs through their work the Chicoutimi, and BAE, a bidding partner, built the subs, he said.
It does not make sense to send three East Coast submarines to B.C., Vasler said.
