National Shipbuilding

Procurement Strategy (NSPS)

Brian J. Carter

President, Seaspan Shipyards

May 23, 2012

Seaspan Marine Corporation

Seaspan Marine traces roots

back to 1898, currently:

• Operates 38 tugs and 120

barges

• Seaspan Ferries – 8 vessels

• Employs over 2000 men and

women

• Operates 3 shipyards in

British Columbia

o Vancouver Drydock

o Vancouver Shipyard

o Victoria Shipyard

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October 19, 2011: Non-Combat Package Announcement

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Four Months Later – It’s Official!

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NSPS Umbrella Agreement Signing

February 14, 2012

Initial Government Contracts – Non Combat Package

Offshore Fisheries Science Vessel (OFSV) x 3 Offshore Ocean Science Vessel (OOSV) x 1

Polar Ice Breaker (PIB) x 1 Joint Support Ship (JSS) x 2-3

Initial 4 projects represent 7 – 10 years of work worth approx. $3.0 Billion

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First Priority: Building the Seaspan Team

Critical first step: get the right

team in place

Current effort is to hire technical

and management staff

• Program Management

• Engineers and designers

• Supply chain managers

• IT Infrastructure specialists

35 new salaried positions will be

filled this year

Recent successes through

global search effort

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Production Workforce Build Up at Vancouver Shipyard

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Modernizing our Shipyards to Ensure Long-Term Success

Vancouver Shipyard Transformation

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Current Facility Facility Post Modernization

Vancouver Shipyard Modernization (cont.)

Highlights

• New profile cutting, sub-assembly and panel lines

• New curve block assembly building

• Added new Pre-Outfitting building

• New Blast and Paint building to support new construction and repair

• Enhanced erection and grand block assembly area

• Added 300-tonne gantry crane

Current status

• Completing detailed layout of shops (STX Korea)

• Detailed engineering underway to support permitting (Stantec)

• Project and Construction Management firm hired

• Expecting ground breaking late 2012

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Victoria Shipyard Transformation

Post launch, vessels will be towed to Victoria Shipyard for completion

• Final zone outfit/system completion

• System integration

• Set to work activities

• Dock and sea trials

• In-service support activities

New multi-purpose building

• Secure warehousing

• Trade shops and tool cribs

• Safety / first aid

• Offices

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Completion Berth

New Multi- Purpose Building

Dock Trials Berth

Sea Trials Quay

Existing Offices

Integrated Program Planning for all 4 Vessel Types

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Offshore Fisheries Science Vessel (OFSV) x 3 • Concept design package received

• Detailed technical review underway

• Design contract expected within summer 2012

• Start of construction 3Q2013

Offshore Ocean Science Vessel (OOSV) x 1 • Concept design package received

• Engineering will be phased to capture OFSV lessons learned

• Construction follows OFSV ~2015

Joint Support Ship (JSS) x 2-3 • DND considering two design options (MOTS and new design)

• Ancillary contract to support DND evaluation nearly complete

• Planning for construction to begin in 2016

Polar Ice Breaker (PIB) x 1 • Design under development by STX

• Discussing ancillary contract to provide builder input to design

• Production to begin ~2018

Shipboard Equipment and Related Services

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Steel Plate and rolled shape

Deck Machinery

Propulsion and support system

equipment

Mission Equipment

Bridge Electronics

Interior Joiner Systems

HVAC Systems

Pipe and Fittings

Electrical Systems and Equipment

Developing a Winning Integrated Program Team

Five “Tier 1” Subcontractors identified in our winning proposal

• Engineering: STX Canada Marine Inc.,

• Alion Science & Technology Corporation Canada

• Platform System Integration: Imtech Marine & Offshore B.V.

• Electronics Systems Integration: Thales Canada Inc.

• Integrated Logistics Support: Computer Sciences Canada Inc.

Some supply opportunities will be available through the

Subcontractors, particularly the systems integrators

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Core Supplier Selection Objectives

Ensure goals and capabilities of suppliers are aligned closely with Seaspan and Canada’s core objectives of:

• Use of proven, modern technology to enhance product quality and process

• Mature engineering data to support design

• Efficient and timely build of the CCG and DND auxiliary fleets

• Building of a sustainable marine industry in Canada through

o Achievement of our 100% IRB commitment

o Fostering Canadian maritime technology development through the Value Proposition

o Maximize value for money invested in shipbuilding in Canada

o Aboriginal participation

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Our Supply Chain will Grow Immensely

Actively welcoming interest from new and existing suppliers

• Encourage interested suppliers to register with us

Seaspan’s Supplier Registration web site is live:

http://www.seaspan.com/supplier_registration.php

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Supplier Information

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Supplier Registration web site

• Supplier provides current contact

information & indicates categories of

interest

• Provides searchable database for

Seaspan to begin qualification and

identify prospective suppliers

Over 500 new suppliers registered

http://www.seaspan.com/supplier_registration.php

Supply Opportunities with Seaspan

Shipyard Modernization Project

• Project & Construction Manager identified

• Material and service requirements and

specifications in development

• Tenders will commence August 2012

o Site work and foundations

o Pre-engineered buildings

o Building Mechanical and Electrical systems

• Equipment requirements and specifications from

June 2012 through early 2013

o Self-propelled modular transporters

o Cranes

o Other items

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Supply Opportunities with Seaspan (cont.)

New Ship Construction

• First ship: Offshore Fisheries Science Vessel (OFSV)

• Long lead items will be identified by fourth quarter 2012

• Material requirements will be defined by first quarter 2013

• Equipment/material list will include all shipboard items:

• Steel

• Diesel Engines

• Generators

• Propulsion Motors

• Pumps & Valves

• Electrical Components

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Huge Growth in Annual Supplier Spend (estimate)

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$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Preliminary estimated total vessel material and equipment spend by year

When and How We Will Be Looking for Suppliers

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When We Start Buying • Shipyard modernization procurement

starts August 2012

• Expect to be ready to start procurement activity for OFSV early 2013

How We Will Be Looking

• Use of our Online Supplier Registry

• Use of Seaspan’s existing qualified supplier database

• Working closely with Federal and Provincial Governments, Industry Associations, among others

• Post certain RFPs on our web site

Preparing to Join the Seaspan Supplier Team

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Please be prepared to demonstrate: • Your knowledge of NSPS and it’s goals and

objectives

• Your understanding of the implications of IRB Policy and your ability to support Seaspan in achieving on this vital objective

• Your ability to provide mature engineering information on your products

• Your awareness of additional requirements stemming from involvement in a government project

• That your equipment is classification approved for shipbuilding

• Your capabilities, capacity, certifications and other key requirements and differentiators that are in alignment with our core objectives

Engage your Resources

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Regional Development Agencies

(Supplier Bootcamps)

Provincial/ Municipal Governments

(Programs Supporting Industry)

Industry Canada (IRB Website)

NSPS Secretariat (NSPS Website)

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