Court Freezes Canadian Frigate Project, Will Investigate Complaint

The federal government's plan to award a group of companies led by Lockheed Martin Canada the contract to design and support the construction of the navy's new frigates was dealt another setback late Tuesday by the Canadian International Trade Tribunal, CBC News has learned.

The agency said it intends to investigate a complaint by one of the other bidders, Alion Science and Technology Corp., and its subsidiary Alion Canada.

The tribunal ordered the Liberal government to suspend negotiations with Lockheed Martin, which was selected last month by Public Services and Procurement Canada as the preferred bidder on the $60 billion program.

"You are hereby ordered to postpone the award of any contract in connection with the above-mentioned procurement until the Canadian International Trade Tribunal determines the validity of the complaint," said a copy of the letter that was obtained late Tuesday by CBC News.

Alion asked the CITT last week to investigate the procurement deal, saying the preferred warship design will need substantial changes and that it doesn't meet the navy's requirements as spelled out in the government tender.

Last week, the company asked the Federal Court in a separate filing for a judicial review of the long-awaited decision. (end of excerpt)

Click here for the full story on the CBC News website.

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