Hillwatch Inc. (HW) and McArthur Consultants Limited (MCL) services include:

Transcription

1 Shipbuilding News As we embark on the build of our next generation of Canadian Defense and Coast Guard Vessels, Hillwatch Inc. of Ottawa, Ontario and McArthur Consultants Limited, of Halifax, Nova Scotia, are pleased to announce a Strategic Alliance consulting team. This Alliance is established to provide services to the global marine industry seeking the opportunity to work with shipbuilders, integrators and government as a result of the National Shipbuilding Procurement Strategy (NSPS), and commercial marine contractors. Hillwatch Inc. (HW) and McArthur Consultants Limited (MCL) services include: Market representation (i.e. opportunity identification, strategic advice, co-ordination of meetings with decision-makers,); Government relations as appropriate; Assistance with Government and Prime Contractor standards and requirements for participation in bids; Assistance with Request for Proposals (RFP s) preparation; Assistance and drafting of Industrial and Regional Benefits (IRB s) plans for RFPs; Assistance in the identification and selection of potential IRB partners; Assistance in planning for Value Proposition opportunities; Assistance in formalizing required personnel clearances for Controlled Goods, ITAR s and work permits; Intelligence gathering on the status of NSPS and commercial projects; Communications and marketing advisory services. President and CEO of MCL, Andrew McArthur, has a lifetime career in the shipbuilding industry. Andrew has held positions as: President, Saint John Shipbuilding Limited; President and CEO, Halifax-Dartmouth Industries Limited; President and Vice-Chairman, Irving Shipbuilding Incorporated; and Chairman of the Shipbuilding Association of Canada. Andrew was instrumental in the successful implementation of the National Shipbuilding Procurement Strategy. Vice-President of MCL, Susan McArthur, has an extensive background in Supply Chain Management and IRB s in the marine industry, and with Irving Shipbuilding. Michael Teeter and Scott Proudfoot of HW are highly experienced government relations consultants who worked with Irving Shipbuilding and the Shipbuilding Association of Canada on the successful promotion and advocacy of the NSPS concept and its implementation. HW Principals have over 35 years of experience in government and government relations and have worked as senior officers in the Prime Minister s Office and for Cabinet members. More information can be found at: or by contacting: HW: Michael Teeter or Scott Proudfoot at (613) [email protected] [email protected] MCL: Andrew McArthur or Susan McArthur at (902) or (902) , [email protected] [email protected] 1

2 Backgrounder: National Shipbuilding Procurement Strategy and Government Shipbuilding Opportunities in Canada The Government of Canada has put in place a strategic sourcing policy to direct $33 billion for the construction of 28 large vessels over 20 to 30 years. This is the first time Canada has entered into a long-term relationship with Shipyards and the first time National Defence and Coast Guard requirements have been combined. The size, duration and potential impact of this program for hundreds of potential Canadian and international suppliers makes this a unique program. This work will be directed through two shipyards. Combat vessels: Irving Shipyards in Halifax. Non-combat Vessels: Vancouver Shipyards Co. Ltd. (Seaspan). Another $2 billion for 116 smaller vessels will be set aside for smaller shipyards and these will be competitively tendered along with approximately $500-$600 million annually for repair, refits and maintenance of existing vessels. Combat Stream: Outside of the NSPS, Irving Shipyards already has two large projects underway: completing the FELEX life extension program to refit 7 of the Royal Canadian Navy s Frigate due for completion in 2017; and construction 9 Hero Class mid-shore patrol vessels for the Coast Guard due for completion in Under the NSPS, the Arctic Offshore Patrol Vessel (AOPs) project (6 to 8 vessels) will happen in two stages. This vessel is intended to fulfill a constabulary role in Canada s Arctic. The initial phase of design and engineering phase has begun. The construction contract for AOPS will occur in 2015; steel will be cut on the first vessel in 2015, the first vessel will be delivered in 2018 and the program is expected to be completed in We are waiting for new estimates but the earlier projected costs were $3.1 billion to construct and $4.3 in maintenance costs over 25 years. The Single Class Surface Combatant Project is intended to replace the Iroquois Class Destroyers and the Halifax Class Frigates. It is expected to be 15 vessels. The first batch will provide the Area Air Defence and Task Group Command and Control capabilities with construction expected in This will be followed later by general purpose warships to replace the Frigates. This project is expected to complete by Subject to change the current estimated acquisition cost is $26 billion and an in service support contract of $14.7 billion. Non-Combat Stream: Under NSPS, the Vancouver shipyards will have responsibility for the construction of the Polar Icebreaker, Joint Support Ships (JSS) and Oceanographic Science Vessel (OOSV) and Offshore Fisheries Science Vessel (OFSV). The Icebreaker designs are to be completed end of this year and the construction is to be completed in 2017/2018. This is a $7 billion program that was complemented by an additional $5.2 billion in capital to the Coast Guard in Budget New Coast Guard shipbuilding projects will be announced shortly. Small Shipyards Set-Aside: These will include large tugs, small tugs, SAR Lifeboats, Mid- Shore Science Vessels, Channel Survey and Sounding Vessels. Fishery Research and specialty vessels and will be procured on an RFP by RFP basis. 2

3 Team Members Andrew McArthur started working in shipbuilding at the Burntisland Shipbuilding Company in Fife, Scotland. He joined Saint John Shipbuilding in 1963, serving in management positions from General Manager to President until During this time Andrew negotiated and secured the contract for the build of the Halifax Class Frigates. Andrew purchased the Halifax Shipyard in late 1985 and became President and CEO of Halifax-Dartmouth Industries Limited (HDIL). In 1992 HDIL was successful in winning the major government marine contract to construct 12 Maritime Coastal Defence Vessels (MCDV Program). Andrew sold HDIL to the Irving group in 1994, and formed McArthur Consultants Limited. In 1997 Andrew became the President of Irving Shipbuilding Inc., and subsequently the Vice Chair of ISI, a position he held until he retired. As a Member and Chairman of the Board of Directors of the Shipbuilding Association of Canada, h was instrumental in developing the National Shipbuilding Procurement Strategy (NSPS), and worked to establish ISI as one of the affirmed Centres of Shipbuilding Excellence in Canada. In addition he has served on numerous government committees, including: the NATO Industrial Advisory Group (NIAG), as the representative for the Canadian shipbuilding industry; a member of the Lloyds Register Canadian Committee; and a member of the American Bureau of Shipping. Andrew graduated with a B.Sc. in naval architecture from Kings College, University of Durham. Susan McArthur started in the shipbuilding industry as a draftsperson apprentice working summers through school more than 30 years ago. After graduation from university in 1983 she went to work at the Saint John Shipyard on the build contract for the original fleet of Frigates. With many years in the Shipbuilding industry Susan has successfully procured multi-million dollar systems and equipment on the international market, and achieved 100% of all program obligations for Industrial and Regional Benefits. Some of the multiple ship construction and repair programs Susan has managed in these areas include: the Louis St. Laurent Coast Guard icebreaker upgrade program; the Maritime Coastal Defence Vessel (MCDV); the Tribal Class Destroyer Update and Modernization Program (TRUMP); the Frigate Life Extension Program (FELEX), and the Mid-Shore Patrol Vessel Program (MSPV). In addition to her work within the Shipbuilding industry, Susan also has experience in Aerospace working with Bombardier Canada on the Low Level Air Defence Program, as well as line manufacturing with a number of companies. Susan graduated with a B.A. (Political Science and Sociology) from the University of New Brunswick. 3

4 Scott Proudfoot has over 36 years experience working for government and in the government relations field. In the late seventies, as Chief Researcher for the Opposition Caucus Chairman, Scott's investigative research was featured in a series of major news stories. He was extensively involved in Commons and Caucus committee work and Question Period preparation. From 1979 to 1980, he was Chief of Staff to the Minister of Regional Economic Expansion and Canada Mortgage and Housing Corporation. In the early eighties, Scott was Economic and Commercial Advisor to the Ottawa Delegation of the European Common Market and dealt with a series of contentious bilateral trade issues and negotiations between the E.U. and Canada. Scott has been extensively involved in mayoralty and federal political campaigns. Scott is a graduate of Dalhousie University, Halifax (B.A. Hon., Political Science and Economics), Carleton University, Ottawa (M.A. Political Science) and the American Graduate School of International Management, Phoenix, Arizona (M.A. International Management). Michael Teeter has over 35 years of combined experience in government and the government relations field. In the late seventies and early eighties, he worked successively for a Member of Parliament, a Cabinet Minister and in the Prime Minister's Office. Following his time in government, Michael spent much of the eighties in the association management field. He developed successful common strategies and achieved significant benefits for the members of these associations. For three years, he was a government-appointed SAGIT member during the Free Trade negotiations with the U.S. In 1989, he left the association management field to work successively with two prominent Ottawa government relations firms, prior to setting up his own successful practice. He has been a Director and Vice Chairman of the Ottawa-Carleton Board of Trade and Director and Committee Chairman of the Ottawa Congress Centre, a provincial Crown Corporation. Michael has been Chairman of Strategy and Policy committees for 4 Mayoralty campaigns and serves as a Director and Vice President of a federal Electoral District Association. He holds an Honours B.A. (Political Science) from Carleton University, an M.B.A. from the University of Ottawa, has done post-graduate work at the University of Western Ontario and is a Certified Association Executive (C.A.E.). 4

5 Past and Present Clients of HW and MCL have included: AT&T Canada Bell Canada BCP Wheelabrator Bombardier CAE Inc. Canadian Shipowners Association Celestica CFM Majestic/Vermont Castings Halifax Dartmouth Industries Irving Shipbuilding Inc. Jacobs Engineering Kaman Aerospace Motorola Canada Litton Systems New York Power Authority Oto Melara SpA Selex Sistemi Integrati SICPA Product Security, LLC SNC-Lavalin Group Inc, Spar Aerospace Sun Microsystems Telesat Canada 5