The Heiltsuk Nation on B.C.’s central coast is happy with a federal court of appeal ruling allowing a judicial review of an emergency towing vessel contract awarded by the federal government in the nation’s traditional area in 2018.
Heiltsuk Horizon Maritime Services Ltd., a joint venture between Horizon Maritime and the Heiltsuk Nation formed in 2018, filed a complaint to the Canadian International Trade Tribunal (CITT) after the contract was awarded to a company to provide two emergency tow vehicles.
In the complaint, they alleged the Department of Public Works and Government Services, acting on behalf of the Canadian Coast Guard, allowed the winning bidder, Atlantic Towing Limited, to substitute all four of the ship masters in its originally proposed winning bid with less-experienced masters, arguing that was contrary to the Request for Proposals.
Initially the CITT ruled the complaint was not valid, but on May 2, 2023, the federal court of appeal ruled to allow the application for the judicial review.
“I would set aside the decision of the Tribunal and declare the complaint valid,” Justice Donald J. Rennie noted in court documents.
He also awarded Heiltsuk Horizon with costs.
Heiltsuk Hereditary Chief Harvey Humchitt said while they were happy they won the court of appeal case they were very disappointed the offer they put on the table to bid for the contract was rejected.
He said they were confident with the experience they had around the Nathan E. Stewart sinking in Oct. 13, 2016 off the central coast that released 110,000 litres of diesel fuel, they would fit the criteria of the contract with Transport Canada and the Coast Guard.
“It was the largest diesel spill in B.C. and it did not take long for that diesel to spread,” said Humchitt, 74, who has lived there his whole life. “It took a long time for them to deploy oil booms to try and contain the fuel.”
Before the spill, the band council and the hereditary chiefs had been in discussions with Transport Canada and the federal government about oil spills when there were discussions going on about oil tanker traffic off the coast of B.C., he recalled.
“Transport Canada and the government were telling us they had a plan for a world-class response, organization or system and if anything should happen they would respond to any incident on the coast. We were really afraid they weren’t ready for it and they still are not ready for a big oil spill if we ever have one,” Humchitt said.
Heiltsuk Chief Marilyn Slett in a news release said as bidders in the procurement process, the nation’s primary concern has always been to ensure the highest quality emergency towing response in Heiltsuk territorial waters and along the entire West Coast, whether that be based on ship master experience, safety requirements, or the towing capacity of the vessels themselves.
Humchitt has been involved with marine protection planning and anything to do with the marine sector, he said.
Horizon Maritime CEO Steve Widmeyer is also a director with the joint venture and said his company was very excited to work with the Heiltsuk Nation.
“With their experience on the Nathan E. Stewart, their work to develop a marine response centre combined with 14,000 years of seafaring heritage and local knowledge and expertise we knew they’d be an excellent partner.”
In 2019, Heiltsuk Horizon got a contract with the Canadian Coast Guard to provide tug and barge services for the reconstruction of 28 navigational aids on the Central Coast with support from Shearwater Marine Group, which the nation ended up purchasing in 2021.
Widmeyer said during the request for proposals stage for towing vessel contract, the age requirement of the vessel changed from 15 years to 20 years, the length of a fast rescue vessel changed as well as the towing capacity requirements.
“We saw next to no consideration or weight given to Indigenous business participation, which was part of our strategy.”
The federal court of appeal was the fifth complaint Heiltsuk Horizon launched and Widmeyer said it has been a struggle.
He said the initial contract was for three years with a rough estimated revenue of $68 million, plus seven one-year options for renewal.
Widmeyer said the federal court of appeal failed to provide a remedy which would outline what will happen moving forward.
“We have said we are willing to sit down and settle this out of court to determine a remedy to the decision. We feel that is in the best interest of everybody.”
He is hopeful the contract will be re-tendered, he said.
Minister of Fisheries and Oceans Canada response received May 23, 2023 to questions posed by Coast Mountain News
CMN: Will the contract go to tender again?
A1: The contract for the two emergency towing vessels is an interim measure that is intended to increase marine emergency towing capacity on the West Coast while the National Strategy on Emergency Towing (NSET) is developed.
As part of the NSET, recommendations on the future approach to emergency towing in Canada will inform the need for continued emergency towing capacity both on the West Coast and across Canada.
Transport Canada and the Canadian Coast Guard are currently undertaking research, analysis, and engagement to better understand the long-term needs for marine emergency towing across Canada. The development of long-term options and recommendations will be informed by many pieces of evidence, including:
International comparisons
Lessons learned from the leased emergency towing vessels
Funding model and program delivery research and analysis
Findings from Canadian Coast Guard assessments and other research reports
Outputs from the Marine Navigation Risk Assessments and
Perspectives gained from multiple rounds of national engagement from 2018 to the present.
CMN: Initially it was a three-year contract with an option of seven years for one-year extensions. That has been done once so far? Will it be extended again?
A2: In February 2018, Public Services and Procurement Canada issued a Request for Proposals for the lease of two emergency offshore vessels under the Government of Canada’s Oceans Protection Plan, to meet an immediate need for increased emergency response capacity off the West Coast.
The Request for Proposals closed on April 13, 2018.
Atlantic Towing Ltd. of Saint John, New Brunswick was awarded a three-year contract worth $67,013,720 for the lease of these two emergency offshore vessels.
The three-year contract included options for extensions. In November 2021, the Government of Canada announced the first one-year contract extension for the lease of the CCGS Atlantic Eagle and CCGS Atlantic Raven.
In November 2022, the Government of Canada announced the second one-year extension of the contract for the lease of the CCGS Atlantic Eagle and CCGS Atlantic Raven.
Industry and stakeholders were consulted extensively on this process and the requirements for this contract, and all parties were given several opportunities to provide input.
CMN: Is the federal government looking into this file?
A3: The Government of Canada is developing a long-term national approach for emergency towing known as the National Strategy on Emergency Towing.
This approach will reflect regional needs, lessons learned from the CCGS Atlantic Eagle and CCGS Atlantic Raven, a risk assessment, and the perspectives of partners and stakeholders.
The Canadian Coast Guard and Transport Canada are working closely with coastal First Nations in B.C. to enhance marine safety in local waters.
CMN: Is there a lack of capacity for the Canadian Coast Guard to respond to emergencies in the area, is that why the contract went out to tender in the first place?
A4: The Canadian Coast Guard responds to all incidents in all waters, and assesses the circumstances of each incident in planning its response.
When required to help support response operations, private towing vessels may also be contracted by ship owners or the Canadian Coast Guard.
There is a surge in global and national demand for goods moved by ship, representing a significant economic opportunity for Canada and its marine sector. Our ability to prevent, plan for, and respond to a marine incident will be critical for the health of marine ecosystems, Indigenous and coastal communities, and for the supply chain. Responding to emergencies and preventing spills protects our oceans and supports our economy. Renewing these leases is another step towards making sure our coasts are protected in a modern and advanced way. Thanks to the Oceans Protection Plan, marine shipping is safer, and our marine ecosystems are better protected than ever before in Canada.
CMN: Anything you would like to add?
A5: As part of the Oceans Protection Plan, two emergency towing vessels – the Atlantic Raven and the Atlantic Eagle - have been strategically located in the waters off British Columbia since late-2018.
The most recent one-year extension of the contract, in November 2022, for the CCGS Atlantic Eagle and CCGS Atlantic Raven will ensure the Canadian Coast Guard continues to have the vessels it needs to respond to incidents involving large ships off the coast of British Columbia, for the benefit of mariners, the marine environment and coastal communities.
The Atlantic Eagle and Atlantic Raven have responded to dozens of incidents in the waters off the coast of British Columbia. They are an important tool used by the Coast Guard to help make the waters and coasts safer, cleaner, and healthier.
Coast Mountain News has reached out to Atlantic Towing Limited for comment.
READ MORE: Heiltsuk Nation announces industry partnership with Horizon Maritime
READ MORE: Feds announce funding for 80 more derelict boat assessments and removals in B.C.
monica.lamb-yorski@wltribune.com
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