Ottawa pressured to secure submarine deal

What makes this particular bid interesting is that it’s a merger of Germany’s and Norway’s respective governments. It appears that TKMS, backed by Kongsberg, are presenting itself as part of a group of nations and private companies working toward the same goal. With TKMS bringing in a company whose expertise lies in building advanced submarine technology, Germany is potentially suggesting a linked international submarine fleet.

With Russia continually threatening northern waters, it’s an offer the Canadian government may be inclined to take. Kongsberg, which was already contracted by TKMS, will be lending the TKMS 212CD subs its combat system, dubbed ORCCA, which will operate in the Norwegian and German subs. It will also operate in Canadian subs if TKMS wins the contract.

Canada is currently in a race to replace its aged fleet of submarines: the Victoria class. The Victoria subs are scheduled for retirement in 2035, but three of the four ships have already been retired. The Canadian government is looking to purchase a fleet of 12 submarines from foreign suppliers. Only TKMS and South Korea’s Hanwha Oceans remain in contention for the contract. Kongsberg executives have been meeting in Canada regularly over the last month, trying to push their case. Part of their argument is resume: Konsberg has been receiving Canadian contracts for decades and exporting defence tech into international markets. The company is currently under contract for the Royal Navy, outfitting naval River-class destroyers with key operating components and naval strike missiles.

Kongsberg is also looking to purchase a factory in Newfoundland. Kjetil Myhra told the media that “The message that we’re also carrying here to Canada is, make sure that you build long-term relationships that build sustainable jobs for Canada and not just something that comes in for a particular program, and when the program ends, the jobs goes away,”

Ottawa privately sent bid instructions to the two sub makers on Nov. 14. The Canadian government has refused to release those instructions, citing concerns for national security. Nicole Allen, Public Services and Procurement Canada spokesperson said, “Given the sensitive nature of procuring an advanced submarine capability, the bid instructions will not be made public, given the national security and sovereignty context,”

Reportedly, the instructions said the government’s scoring of the bids will place most of the emphasis on the boats’ long-term maintenance.