Canada’s accelerated submarine procurement includes bidders from Germany and south korea, and those companies have signaled they would support Ottawa splitting the multibillion-dollar contract after final proposals were submitted and officials prepared for a near-term decision.
What Happens If Ottawa Splits the Contract?
All bidders expressed openness to a split contract, a stance that reframes how the Canadian Patrol Submarine Project could be executed. Oliver Burkhard, CEO of ThyssenKrupp Marine Systems (TKMS), placed the procurement in a new class for the company given its usual average order size. Mr. Burkhard noted that combining Canada’s potential order with other nearby orders could leave TKMS building an unusually large run of submarines over the next decade and a half. The procurement is being overseen by the newly created Defence Investment Agency, which handles procurements valued at $100-million or more, and that institutional design has been one factor in moving the file rapidly.
What If South Korea Secures Part of the Work?
Hanwha Ocean represents the south korea option in the competition. Glenn Copeland, head of Hanwha Defence Canada and a former senior Royal Canadian Navy officer, described the procurement pace as “absolute lightning speed. ” That compressed timeline—where typical timelines of six to eight years were cut to less than a year and the request-for-proposal was shortened from hundreds of pages to roughly 58 pages—changes how industrial benefits, supply chains and partnerships will be negotiated.
- Bidders: ThyssenKrupp Marine Systems (partnered with Kongsberg Defence & Aerospace) and Hanwha Ocean (south korea).
- Procurement posture: Final proposals submitted; federal decision expected by the end of June.
- Project oversight: Defence Investment Agency established to manage large procurements.
- Speed and scope: Initial request for information closed in February, 2025 with 25 responses; timelines shortened dramatically and RFP trimmed to about 58 pages.
- Industrial conversations: European and south korean bidders are engaging with Canadian firms such as Maritime Launch Services and NordSpace to explore broader economic benefits.
- Bid features: TKMS has highlighted a potential surge in build volume if multiple national orders align; TKMS is also working with an AI firm as part of its bid approach.
What Should Stakeholders Expect and Do Next?
With final proposals in and a decision expected by the end of June, stakeholders should anticipate a process defined by rapid timelines and an unusual emphasis on economic outcomes beyond the core defence purchase. Companies that aim to be part of supply chains should accelerate partnership talks with the bidders that are already in discussions with Canadian firms. Officials and industry actors should also prepare for the possibility that Ottawa will split work to capture broader industrial benefits and mitigate single-supplier risks.
Uncertainty remains: bidders agreed that the pace has been unlike previous Canadian procurements, and the government’s willingness to consider contract-splitting changes customary trade-offs. The key named actors in the bid—ThyssenKrupp Marine Systems with its Kongsberg partner, and Hanwha Ocean representing south korea—will shape how a split or single-award outcome translates into jobs, transfer of technology and regional industrial activity. Stakeholders must plan for both concentrated and shared-build scenarios while the procurement moves to its next phase involving a near-term government decision, in which south korea
