Ottawa defends decision to give Hudson contract to same company that aborted previous refit

The federal government is defending its decision to award another $840,000 refit contract on the Canadian Coast Guard Ship Hudson to the same company behind an aborted refit on the venerable research ship last year.

Public Services and Procurement Canada (PSPC) said Heddle Marine (NL) is a "separate operating entity" from Heddle Marine Services, the company responsible for the aborted dry docking refit on the Hudson at its Ontario shipyard in 2017.

That refit was months behind schedule and unfinished when the federal government decided to tow the Hudson out of the Hamilton yard to complete the maintenance job.

Eleven days after receiving questions about the latest refit contract, a PSPC spokesperson said Heddle Marine (NL) submitted the lowest compliant bid for the upcoming mechanical refit, scheduled for the 54-year-old research vessel at its home base at the Bedford Institute of Oceanography.

"Heddle Marine (NL) Inc. has a proven performance on previous contracts for the alongside refits of Coast Guard vessels," Nicolas Boucher said an email to CBC News.

Boucher said the department will work closely worth the contractor and the Department of Fisheries and Oceans to "ensure that all timelines and deliverables are respected."

The refit was awarded on Jan. 11. Earlier this month, CBC News reported rival bidders were raising questions about the awarding of the latest contract.

"My question is with the problems with that dry docking [refit], why was this firm allowed to bid on this one?" Wayne Snow, CEO of Dartmouth-based KMS Industries Inc., previously told CBC News.

"For us, it's an issue that should be answered by government as to why this company is allowed to come back and bid after not completing the first refit," said Tony Kennedy, of Canadian Marine Engineering, another losing bidder.

PSPC twice said the two Heddle companies are separate entities, as did a Heddle Marine Services spokesperson when contacted for a response to the rival bidders.

Apparent damage to be 'addressed'

When asked whether the upcoming refit will include repairing damage caused during the 2017 refit, the PSPC spokesperson did not provide a direct answer. One of the rival bidders has alleged damage to the Hudson involved sand-blasting debris around the vessel's bridge windows.

"During the alongside refit, some grit blast debris located around the bridge windows will be addressed to ensure that the vessel remains in optimal condition," Boucher said in his statement.

PSPC has refused to say what went wrong with the much delayed 2017 Hudson refit, or whether Heddle Marine Services was paid the full $4-million contract price.

"As per normal contract-management processes, PSPC is currently working with the [coast guard] and the contractor to close out this contract and ensure the contractor is properly paid in accordance with the terms of the contract and the work performed," Boucher said.