Canada to pick preferred submarine bidder within 30 days

BERLIN — Canada expects to pick a preferred bidder within 30 days for a submarine program that could become the country’s biggest-ever procurement, Secretary of State for Defence Procurement Stephen Fuhr said.

The decision would mark a key step in a closely watched contest between Germany’s TKMS and South Korea’s Hanwha Ocean, as Ottawa looks to replace its aging submarine fleet and expand its ability to patrol the Atlantic, Pacific and Arctic.

“I would suspect we will have an answer on our direction in 30 days,” Fuhr told POLITICO at the ILA Berlin air show.

Fuhr underscored the scale of the project, saying that if Canada buys all 12 submarines and builds the required infrastructure on both coasts, “this could be the biggest procurement Canada does.”

However, the move would not amount to a final contract award, but would push one of the two qualified suppliers into detailed negotiations with Ottawa.

“Right now we have two qualified suppliers,” Fuhr said. “We’re going to now select a preferred supplier. This does not mean we’re going to have a contract. Then we’ll negotiate with the preferred supplier to come to a contractual arrangement.”

The submarine race has drawn intense lobbying from both Berlin and Seoul, with each side offering a different strategic proposition for Canada.

TKMS is pitching its Type 212CD, a German-Norwegian design that would bind Canada more closely to European and NATO naval industry. Hanwha is offering its KSS-III submarine, leaning on South Korea’s reputation for rapid shipbuilding and promises of wider industrial investment.

For Canada, the program is about more than replacing aging boats. Ottawa wants submarines that can operate across three oceans, including in the increasingly contested Arctic, where melting ice and growing Russian activity have sharpened allied concerns over the High North.

Fuhr said the speed of the process reflected the priority Ottawa is placing on the file.

“If we get the matter out the door for a preferred supplier in the next 30 days, which I’m confident we can do, I think that’s an unbelievable timeline,” he said.