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World class shipbuilding and repair Presentation to RMC Symposium – February 27, 2012

World class shipbuilding and repair Presentation to RMC Symposium – February 27, 2012. October 19, 2011. Why They’re Excited: Monumental Economic Impact. NSPS Impact on ISI Employment. NSPS Annual NS Economic Impact. Consumer Spending in Nova Scotia.

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World class shipbuilding and repair Presentation to RMC Symposium – February 27, 2012

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  1. World class shipbuilding and repair Presentation to RMC Symposium – February 27, 2012

  2. October 19, 2011

  3. Why They’re Excited:Monumental Economic Impact

  4. NSPS Impact on ISI Employment

  5. NSPS Annual NS Economic Impact

  6. Consumer Spending in Nova Scotia Personal Income will average $447 million per year over the life of the Combat Project and drive consumer spending Source: Conference Board of Canada & Jupia Consultants Inc.

  7. National Economic Impact • Significant benefits to rest of Canada especially ON, PQ and BC Source:Conference Board of Canada & Jupia Consultants Inc.

  8. How Did We Get Here?Government & Industry Collaboration

  9. 2009 - An Industry Aligned • Existing marine procurement for fleet renewal was high risk • Highly complex • Time consuming • Expensive • Change required given significant government shipbuilding requirements • Need to ensure capable, qualified strategic shipbuilding asset in Canada • Canadian Shipbuilding Association responded with collective recommendations • COEx…The Road Map to A Sustainable Industry

  10. Collaboration Key to Success • Industry consultations held on July 27 & 28, 2009 • From that process, NSPS was developed

  11. What was required by Industry • Federal ships to be built in Canada • Finite federal demand over a 30-year horizon • Limited number of yards involved • Recognized there would be winners and losers • Long-term stability of industry came first • Government will level-load Construction Schedule Requirements • Eliminating Boom-Bust cycle so damaging to long-term industry viability

  12. Procurement Recommendations • Award contract to 2 facilities emerging from SOI-Q process • Compete on capability, not scope of work • Use appropriate risk-reducing qualification criteria • Use supply arrangements as basis for contracts to ensure best value • Negotiate contracts by particularized project • Build incentives into projects • Reward performance and share savings with Canada

  13. Benefits of COEx Approach • Preserve sovereign capability for Canada • Shipbuilding as strategic asset for Canada • Steady workload into future (30 years) • Retain and develop high value jobs • Provide stable facilities for cost-effective delivery • Allow for incremental investment to keep pace with world wide industry • Reduce industry’s cost of proposals, more money for facility and HR investment

  14. Benefits of COEx Approach • Provide basis for long term shipbuilding industrial strategy • Expedite government procurement process • Provide earlier delivery of vessels • Reduce Canada’s PMO office level of effort, by: • Reducing Canada’s cost in project definition and implementation phases • More money available for ship and project deliverables • Reduce risk to program, contractor and Canada

  15. Where Do We Go From Here?Capitalizing on the NSPS Experience

  16. Benefits of NSPS Process

  17. Benefits of NSPS Process

  18. Benefits of NSPS Process

  19. Benefits of NSPS Process

  20. Benefits of NSPS Process

  21. Benefits of NSPS Process

  22. ISI Long Term NSPS Goals • Build Navy’s combat vessel fleet utilizing balanced work flow • Provide value for $ to Canada • Meet 100% Industrial and Regional Benefit commitments • Help build sustainable marine industry • Build World Class Shipbuilding Facility capable of meeting all Canada’s Combat Vessel needs

  23. World class shipbuilding and repair

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