Irving faces conflict of interest accusation

Irving Shipbuilding, which will play a key role in selecting the winner of a $26-billion program for the Canadian navy’s new warships, is now partnered with one of the firms bidding on the massive project, a development some competitors see as a blatant conflict of interest.

Irving and BAE, a British company, have joined forces to bid on a maintenance contract for the new Arctic patrol ships and supply ships.

BAE will also be bidding on the new Canadian Surface Combatant (CSC) program; Irving, which will build the warships, will help select the winners.

Initial cost estimates for the surface combatant program were set at $26 billion. But the price tag could rise to $40 billion, depending on the number of ships ordered.

Officials with other companies who hope to bid on the CSC privately say they are stunned Ottawa would allow what they feel is an obvious conflict of interest.

Federal officials did not immediately respond to such criticism.

The winning bid is expected to be picked next summer.

But Sean Lewis, director of communications at Irving Shipbuilding in Halifax, says there is no need for concern.

“The CSC procurement is being conducted in a way that ensures that all bidders are treated equally, with no unfair advantage given to any individual bidder,” he said in an email.

“Irving Shipbuilding and BAE have created separate working teams that are responsible for each program, and neither organization will tolerate any overlap,” he said.