1. Description of Requirements
Pursuant to the National Shipbuilding Strategy (formerly the National Shipbuilding Procurement Strategy) announced by the Government on 2 June 2010, two Canadian shipyards were selected to construct federal ships 1,000 tonnes displacement and over; one to build combat vessels; and the other to build non-combat vessels. In 2022, the NSS was expanded to include a third shipyard.
Public Services and Procurement Canada, on behalf of the Department of National Defence (DND) and the Canadian Coast Guard (CCG), continues to have a requirement for the provision of experienced third party expert advisory services in support of the National Shipbuilding Strategy, as well as the NSS Shipbuilding Projects (both combat and non-combat). The services of an experienced third party expert is required to assess the shipyards’ capabilities, conduct performance assessments, assess the effectiveness of their investments and to provide independent third party expert advice to ensure Canada achieves the most equitable, effective, and robust contracts possible, which contain acceptable levels of risk and provide value for money.
2. Statement of Capabilities
The purpose of this Advance Contract Award Notice (ACAN) is to communicate the PSPC National Shipbuilding Strategy’s intention to award a contract for third party expert advisory services to KPMG LLP, Toronto, Ontario.
Suppliers who consider themselves fully qualified and available to provide the services described herein may submit a statement of capabilities in writing to the contact person identified in this Notice during the 15-calendar day posting period on or before the closing date and time of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.
If other potential suppliers submit a statement of capabilities during the 15-calendar-day posting period that meets the requirements set out in the ACAN, PSPC’s National Shipbuilding Strategy will proceed to a full tendering process, either through the Government Electronic Tendering Service or by traditional means, to award the contract. If no other supplier submits a statement of capabilities that meets the requirements set out in the ACAN on or before the closing date, PCPC’s National Shipbuilding Strategy may award a contract to the selected supplier.
3. Period of Proposed Contract Award:
2 Years from date of Contract Award, plus options of up to 5 additional years.
4. Estimated Value: $14,464,000.00
5. Closing Date of Advance Contract Award Notice (ACAN):
6. The closing date and time for accepting written statements of capabilities challenging this requirement is 13 October 2025, 2:00 p.m. Eastern time.
7. Minimum Mandatory Requirements
Any interested supplier must submit a statement of capabilities that demonstrates compliance with all of the following mandatory requirements:
Experience
“Recent Experience” is defined as a minimum of ten (10) years experience obtained within the last fifteen (15) years prior to the date of ACAN posting within the related fields identified below.
a. The supplier must have demonstrated recent experience and expertise in providing knowledgeable and critical transactional advice or professional opinions or both regarding procurement and project management activities relating to the National Shipbuilding Strategy (NSS). This knowledge and critical advice includes, but is not limited to, providing due diligence advice and analysis on domains such a financial, commercial, valuation, regulatory compliance and related matters; determining the reasonableness, completeness, and/or comprehensiveness of proposals regarding the cost, level of effort, profit, risk, regulatory compliance and related matters.
b. The supplier must have recent demonstrated experience in advising and providing opinions on procurement strategies and other processes and methodologies, evaluation criteria, project process plans, key performance indicators of various activities including shipbuilding activities, shipbuilding schedules and other scheduling issues; alignment with strategic objectives; risks and mitigation plans; assumptions, and sensitivity analyses.
c. The supplier must have recent demonstrated experience in providing contract negotiation support which could include, but would not be limited to, providing advice or opinions or both regarding industry trends, norms and standard practices.
d. The supplier must have recent demonstrated experience in providing assistance to a client in building and maintaining strategic relationships and the dissemination and implementation of lessons learned. Such work could include, but is not limited to, transferring knowledge; ensuring consistency in Canada’s approach; and providing related documentation.
Independence
The supplier and its affiliates must be an independent entity with no existing relationships with any other entity that may participate in the National Shipbuilding Strategy or its related projects that may pose a real or perceived conflict of interest. In order to ensure the independence and ongoing integrity of the assistance provided by a potential supplier to Canada, the potential supplier must be and remain independent from the NSS shipyards (currently Vancouver Shipyards, Irving Shipyards and Chantier Davie Canada Inc., which may be amended to include additional shipyards), its major suppliers or partners, and other entities with which Canada is negotiating or conducting ship design or shipbuilding-type work for the National Shipbuilding Strategy (NSS), such as, without limitation, a ship integrator or provider of in-service support.
Definitions:
Contractor’s Team (Team): includes all Contractor, subcontractor and consultant personnel performing Work pursuant to this potential contract, including employees, experts and support staff.
Conflict of Interest is defined in 2035 General Conditions: Higher Complexity – Services, Section 34 (2008-05-12) Conflict of Interest and Values and Ethics Codes for Public Service; and Section 35 (2008-05-12) No Bribe or Conflict. These terms and conditions can be found on PSPC’s CanadaBuys website at Homepage | Canada Buys . Archived - Standard Acquisition Clauses and Conditions Manual - General Conditions | CanadaBuys
Relationships:
For the purposes of this requirement, potential Contractor relationships that fall under the following two categories of types of relationships would be, or be perceived to be, a Conflict of Interest:
a) Relationship Type A: where a potential Contractor, its affiliates or Team member(s) has a financial interest in an entity listed below.
b) Relationship Type B: where a potential Contractor, its affiliates or Team member(s) trades goods or services with, or otherwise performs work for, an entity listed below.
List of Entities:
a) Vancouver Shipyards Co. Ltd.
b) Seaspan ULC
c) Irving Shipbuilding Inc.
d) Bath Iron Works
e) Fleetway Inc., Canada
f) Lockheed Martin Canada Inc., Canada
g) Odense Maritime Technology A/S, Denmark
h) Alion Science and Technology Canada
i) Computer Sciences Canada Inc., Canada
j) Imtech Marine & Offshore B.V., Netherlands
k) STX Canada Marine Inc., Canada
l) Thales Canada Inc.
m) BMT Fleet Technology Ltd.
n) Oceanic Consulting Corporation
o) Chantier Davie Canada Inc.
p) Vard Marine, Vard Group AS and subsidiaries
q) Serco Inc, and Serco Group PLC and subsidiaries
r) Gibbs & Cox Inc
s) Kearney Public Sector and Defense Services, LLP
t) Systems Planning & Analysis, Inc.
u) Ross Business Advisory Services, Inc.
v) QinetiQ Ltd
8. Non-Disclosure Agreement
A potential supplier must, upon award of a potential contract, provide a non-disclosure agreement signed by an officer of the company. In addition, the potential supplier upon any potential contract award must obtain from its employee(s), or subcontractor(s), a completed and signed non-disclosure agreement and provide the Agreements to the Contracting Authority before they are given access to information by or on behalf of Canada in connection with the Work.
9. Ownership of Intellectual Property
Ownership of any foreground Intellectual Property arising out of the proposed contract will vest in the Contractor. The Government will require an irrevocable royalty-free licence to use any foreground Intellectual Property.
10. Security Clearance
Any potential supplier must hold a valid Security Clearance issued by the Federal Contract Security Program at the level of Enhanced Reliability or higher, and all proposed resources anticipated to be utilized in performing any work under any potential contract must hold valid security clearances at the level of Enhanced Reliability or higher. In addition, the supplier must hold a valid facility security clearance that permits the supplier to use its IT systems to electronically process, produce or store PROTECTED and/or CLASSIFIED information.
11. Proposed Supplier
The proposed supplier is:
KPMG LLP
P.O. Box 31
Stn. Commerce Court
199 Bay Street
Suite 3600
Toronto, Ontario
M5L 1B2
12. Sole Source Justification
KPMG LLP has the recognized expertise and experience as outlined in the “Experience” section described above and is the current contractor performing the work. With 10 years of working within the Canadian government’s shipbuilding arena, KPMG has amassed an intimate knowledge of the NSS as a whole and has provided knowledgeable and realistic advice to all shipbuilding projects, senior management and other associated shipbuilding sectors. To switch contractors at this point, when critical advice is needed by knowledgeable resources, could have a major impact on decision-making for project teams and senior management. In addition, to bring another contractor up to speed on the complex inner workings of the NSS and providing them with the necessary background and knowledge of all the shipbuilding projects, inner government workings, and associated client departments, could severely impact the strategy as a whole and would definitely have an increase in costs and schedule. There are no other known suppliers that have the requisite in-house expertise capable of meeting all the minimum mandatory requirements set out in this ACAN.
13. Applicable Trade Agreements
The proposed procurement is subject to the following Trade Agreements:
- Canadian Free Trade Agreement (CFTA)
14. Applicable Limited Tendering Reasons:
Government Contracts Regulation Exception
The following exception(s) to the Government Contracts Regulations is invoked for this procurement under subsection 6(d) - "only one person is capable of performing the work".
Canada has determined that only KPMG LLP, is capable of performing this contract.
Canada Free Trade Agreement (CFTA) – Article 513 Limited Tendering – c(i) and c(ii)
Inquiries and statement of capabilities are to be directed to:
Ron Dearing,
613-462-3197
Ron.Dearing@tpsgc-pwgsc.gc.ca
