Decision on whether to split submarine contract would be led by Navy, official says

Open this photo in gallery:National Defence Minister David McGuinty, back left to right, South Korea Prime Minister Kim Min-seok, Prime Minister Mark Carney and Hanwha Group Vice-Chariman Kim Dong Kwan speak after touring a submarine at the Hanwha Ocean Shipyard in Geoje Island, South Korea, on Oct. 30, 2025.Adrian Wyld/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe man in charge of evaluating competing bids for new Canadian submarines says any decision on whether to split the contract between two companies would be led by the Royal Canadian Navy.The federal government has said a decision on one of the biggest military procurements in Canadian history, involving South Korea’s Hanwha or Germany’s TKMS, should come by the end of June.Doug Guzman, chief executive officer of the Defence Investment Agency (DIA), was asked at the House of Commons defence committee Monday whether operating a mixed fleet is under consideration – meaning dividing the contract.He declined to say either way when asked by Conservative defence critic James Bezan.“I’m not the educated opinion in that matter,” Mr. Guzman told MPs.“I think that it would have to be a discussion led principally by the Navy,” he said.Ottawa weighs splitting submarine contract between Europe and South Korea, sources sayDefence analysts have said the total value of the submarine contract could be $60-billion to $120-billion over the vessels’ full life cycle, including $24-billion to $30-billion for the acquisition itself.Asked for its opinion on a mixed fleet, the Department of National Defence said it could not say anything given the bids have been filed with the government.“Both suppliers have submitted their bids to Canada, and we are currently in the process of evaluating those bids. As such, we cannot provide further comment on the specifics of these proposals – or the degree to which they meet Canada’s requirements – in order to preserve the integrity of the procurement process,” DND spokesman Daniel Blouin said in a statement.Prime Minister Mark Carney last fall had poured cold water on the idea of a mixed fleet, saying, “You just get too many efficiencies in economies of having one fleet.”But The Globe and Mail reported in March that the idea was quietly under consideration, citing sources saying that Ottawa is looking at TKMS for the Atlantic Coast and Hanwha for the Pacific Coast.Canada wants submarine bidders to sweeten their offersSeparately, Mr. Guzman was also asked twice Monday by MPs whether he considered the United States a “trusted ally” these days. He said his opinion wasn’t relevant but responded nonetheless.During his first answer, the CEO said Canada will “have to continue to do business with the U.S. as a country, whether that’s military or not.”In his second response to whether the U.S. is a trusted ally, Mr. Guzman said “that’s a question of opinion,” noting that when it comes to trade matters, Washington can be unreliable.“In places, we have to trust them, and we trust them,” Mr. Guzman said, adding later, “When we make trade decisions, we can’t always rely on the landscape remaining as it was the prior week.”Under Donald Trump, the United States has imposed hefty tariffs on Canadian goods, and the President has said that his country doesn’t need automobiles or oil and gas from Canada.Defence experts have raised concerns that splitting Ottawa’s submarine contract could complicate supply chains and parts…

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