Happy CPSP RFP Day! Everything You Need To Know About The RFP, What's Currently On The Table, and Answering Some Questions
Opinion
Happy CPSP RFP day to all who celebrate! After several weeks of anticipation, the final bids for the Canadian Patrol Submarine are officially due from Hanwha and TKMS today.
From here, the Federal Government will have a period of engagement for follow-ups going into April. After that, it is expected that the Federal Government will down-select a strategic partner to negotiate with by the summer break.
Quite a few outlets are reporting June. It could be May or June, if I'm being honest; it really does depend on when they time things. I have a feeling that if they can announce it at CANSEC, they will. That is just me, though.
Now that the RFPs have been submitted, and both companies have started to build their roster of talent and commitments, I think we are overdue for a recap of both bidders, what they're offering in terms of capabilities, and how their current bids are looking.
Not just from a company angle, but from a wider government-to-government level. This is, of course, more than the companies involved. CPSP is the anchor for what will be a wider strategic relationship between Canada and either Korea or Germany/Norway.
It is a project with tens of billions on the line in terms of potential investment; it represents the largest single procurement in Canadian history by value. It will firmly set us up with one of two potential camps in a long-term, generationally defining alliance that carries with it ramifications for Canadian geopolitical and strategic interests.
It's really bloody important, if you want the quick version. It's a significant choice to make, and at a time like now, I feel there is no better time to really get into the gritty and document what's currently on the table from both parties.
To celebrate today as well, Secretary of State for Defence Procurement Stephen Fuhr was also kind enough to provide us a statement:
“Today marks an important milestone with both Hanwha Ocean and TKMS set to submit their proposals for the Canadian Patrol Submarine Project. By downselecting to two bidders, we have reduced this procurement timeline by several years.
We appreciate the strong engagement from both proponents, particularly their commitments to partnering with Canadian industry, creating good-paying jobs, and supporting our economic growth. We look forward to a thorough review of the submissions and to advancing the delivery of this important capability for the Royal Canadian Navy.”
Now, a disclaimer: these are not the final bids in total. I don't know what both sides fully offered because I am not the Federal Government. As such, we can only go off of what we actively know. You can expect additional partnerships and investments to be announced in the coming weeks.
But consider this the rundown up until now; all you need to know, all what is currently on the table, presented here for you to see for yourself. Of course, I will take a backseat from here. I want this to be educational. I will not be the judge today, nor the jury. So today, just take it all in, absorb, and listen to both sides. Get a feel for them.
You have all the time after today to formulate your opinion. For now? Let's just get to the facts. Before we jump into bids, though, I guess it's time I drop my cards on what was asked.
The RFP
I have said before I won't reveal too much of the RFP. No, I have not fully read it; I know lots in it, but not the whole thing. I do think it is important, though, to lay out what I do know. While it is only a half-picture to what is asked, I hope it can still be of value to you.
Anyways, let's start with the actual weights of the procurement. As we reported a few months ago, the Canadian Patrol Submarine Project has had its assessment formula leaked for a while now; Murray Brewster was the first to report it.
The breakdown is as follows:
Platform (submarine) – 20%
Sustainment (fleet sustainment and support, including sovereign sustainment enterprise, integrated workforce, and infrastructure) – 50%
Financial – 15%
Strategic and Economic Partnerships – 15%
As you can see, sustainment forms the bulk of the assessment. This isn't too terribly shocking when one considers that the bulk of the value in the contract will go to maintenance and sustainment over the platform's lifetime.
I should also make note that for the Navy, after dealing with the long struggle of maintaining the Victoria-class, sustainment is very much a high priority on the concerns and "wanting to avoid further trauma" list. I know that's a shocker...
Both platforms met the High-Level Mandatory Requirements (HLMR) set out by the Navy. I should note that, technically, none of the existing platforms met the original RFI HLMR. Which ones? I don't know, but both the KSS-III and Type-212CD at least met the revised requirements.
As far as I know, the base requirements as set out in the RFI have not changed, at least from asking around. The future Canadian Patrol Submarine must have the ability to operate discreetly without external support for minimum transits of 7,000 nm (2x 3,500 nm) at 8 kts and a minimum of 21 days of continuous dived operations while on station. It must be capable of no less than 60 days self-sustained operation.
It must be capable of conducting continental defence missions, including Arctic patrols from home ports in Halifax and Esquimalt. The absence of support facilities in the Arctic means that the submarine must be able to conduct such patrols unsupported.
The RFP further asks for details on both offerings' potential Long Range Precision Strike Missile System, stating that the future CPS must have the ability to perform anti-submarine, anti-ship, and long-range land precision attacks with heavyweight torpedo and missile-weapon systems.
For stealth, the RFP states that the CPS must have the ability to operate in contested environments while maintaining tactical advantage with low acoustic (passive and active), magnetic, and Infrared (IR) signatures to prevent counter-detection.
It must have the ability to operate worldwide throughout the year, both by day and by night, in temperatures ranging from tropical to Arctic, as well as the ability to operate near, in, and, if necessary, under ice (for limited periods of time).
It must be able to be operated with a core crew of no more than 40 personnel. In addition, the submarine must be able to accommodate 8 additional personnel (riders) in permanent bunks.
If you forgot also, maintinence facilities on both coasts, as well as a detailed plan to support Canadian-led and operated In-Service-Support are also there.
Finally, the RFP asks both sides to present proposals for initiatives that foster collaborative R&D in submarine technologies, including propulsion, stealth, sensor integration, under-ice navigation, and environmental sustainability.
This is as much as I have been able to get out of what the RFP looks like. Obviously, it was not publicly released, and everyone has kept it tightly held to the chest. At immediate glance, the RFP does not heavily favour one side. While either sub could prove more capable in individual categories, overall it does not present a definitive advantage to either platform.
This, though, at least gives you an idea of what is asked, as well as some of the wants thrown into it. Obviously there is more; I was told the RFP was quite long. However, this is all the scattered information I was able to gather over the last few months.
There is more on the Arctic and ice mentioned, but sadly I don't know what it is. Other than that, some were quite annoyed by it. I don't fully know why, but a few had some annoyances.
Also, before we continue, a recap of our previous work. You can catch up on some of the nitty-gritty details at these links. Here you can find the articles we've already written on CPSP.
Let's talk with Noah (10/27/25): Is either Sub technically better? Orcas, Fighter Review, P-8 Update
The History of Submarine Steel: How Do The Type-212CD and KSS-III Line Up For Canada?
New Torpedoes for the Type 212CD and Inocea buying a German yard?
Do with that as you will. Now that we've gotten a quick rundown, though, of what I know was asked, we can start to look into what both sides are offering.
Let's start with...
Team Korea
Team Korea is our first competitor. It is primarily comprised of the team of Hanwha Ocean and Hyundai Heavy Industries, and is supported by both the Korean government and various other Korean companies including LIG NEX1, Hyundai Motors Group, Korean Air, POSCO Holdings, Bumhan Industries, and Samsung SDI.
They are offering the KSS-III Batch II Submarine. Coming in at 89.4m in length, 9.7m at the beam, and displacing 4,000 tons submerged, it is one of the largest diesel-electric submarines ever produced.
Several improvements have been made in the Batch II submarines compared to the Batch I. For the first time ever, a Korean submarine will be equipped with lithium-ion batteries instead of the traditional lead-acid batteries found in most diesel-electric submarines.
Compared to lead-acid, lithium-ion batteries provide significantly higher energy density, allowing longer submerged endurance and faster speeds without increasing the vessel's weight.
They recharge more quickly, enabling shorter snorkel or surface times that reduce detection risk. They also require less maintenance, have a longer operational lifespan, and are safer with modern thermal management systems.
The Batch II will use commercial NCM cells from Samsung SDI, although Hanwha plans for new options to be available by the time the first of the class is delivered. This will allow the Batch II to stay submerged for several weeks longer than her Batch I sisters.
They will also feature an improved air-independent propulsion (AIP) system; a new retractable bow thruster; an upgraded sonar suite developed by LIG NEX1; new MTU 4000 U83 engines built under license by STX; and an enhanced version of the Naval Shield combat management system.
Their combat capabilities have also received an upgrade, with the Batch II increasing its vertical launch system (VLS) count from the Batch I’s six cells to ten. The KSS-III is one of the few conventional submarines in the world equipped with a VLS, capable of firing the Hyunmoo IV-IV submarine-launched ballistic missile (SLBM).
Of course, you can read more about the missiles at the link above. Hanwha took an early lead in jumping onto CPSP partnerships. The company has secured over twenty Canadian partners as part of its commitment to investing in Canada.
These partners include:
• A MOU with PCL Construction (Edmonton, Alberta) related to construction of infrastructure.
Hanwha has also committed to further investments related to the Canadian Patrol Submarine Project. That includes a commitment to establish dedicated maintenance facilities on both coasts, as well as the establishment of a land-based testing facility similar to their Korean facility.
This facility will support the testing and integration of key subsystems, sensors, and battery systems domestically, while also providing a facility to support the transfer of intellectual property between Korean and Canadian industry.
Hanwha has also committed to establishing a domestic torpedo manufacturing facility in collaboration with LIG NEX1. The company is currently looking at this facility being in Manitoba, Nova Scotia, New Brunswick, or Quebec.
Further discussions have been had on the domestic production or IP transfer of key systems, including lithium-battery systems, fuel cells, sonar suite, and vertical launch systems.
Also as part of this is a training package. Hanwha's package includes training for an initial 200 sailors in Korea to support the arrival of four KSS-III by 2035. Rumours say they might also include a dedicated training vessel in a former Jang Bogo-class submarine, but I can't confirm.
Lastly, Hanwha has committed to further investments outside of submarines, including potential investments in offshore wind in Nova Scotia and Liquefied Natural Gas in Newfoundland.
Lastly for Hanwha, the company is reportedly also looking to support sovereign launch opportunities from Canadian soil, fulfilling a desire from the Canadian government to see investment in Canada’s launch industry.
On top of this, several other Korean companies have either committed to further investments or partnerships related to the Canadian Patrol Submarine Project. LIG NEX1 has signed an MOU with GeoSpectrum Technologies to collaborate on sonar development.
They're also, again, supporting the IP transfer and domestic support of key systems they produce, including torpedoes and the conformal array sonar suite utilized on the KSS-III Batch II.
Hyundai Heavy Industries has also signed its own MOU with Celestica focused on building a local submarine Life Cycle Support (LCS) infrastructure; Hyundai has proposed the transfer of ship and submarine technology and shipbuilding know-how to Canadian shipyards in support of future maintenance and sustainment activities. They also proposed establishing collaborative research & development partnerships in fields like artificial intelligence (AI) and biotechnology with Canadian universities.
Lastly, for now, Korean Air is proposing further collaboration with Bombardier on special mission aircraft. The two are currently partnered in supplying Korea’s next-generation AEW&C aircraft with L3Harris, and are further working on the development of an electronic warfare aircraft with L3Harris for the ROKAF.
This all builds off several agreements outlined by Canada and Korea over the last year. This includes the new Canada-Korea Security and Defence Cooperation Partnership signed in October, a new agreement on the Protection of Military and Defence Classified Information signed last week, and most importantly, an MOU on Industrial Cooperation.
This sets the path for further cooperation on key sectors, including cooperation in battery production, battery-materials processing, and the refinement, processing, and recycling of Canadian critical minerals.
Hanwha states that investments related to CPSP are forecast to support approximately 15,000 average annual jobs over the program period. This hypothetically equates to more than 200,000 job-years in cumulative employment impact over the 2026-2040 period, encompassing direct, indirect, and induced employment.
The company further states that they could deliver four KSS-III submarines to fully replace Canada’s current Victoria-class fleet before 2035 if a contract is signed in 2026. Hanwha estimates that earlier retirement of the Victoria-class fleet will result in estimated savings of approximately $1 billion on maintenance and support costs.
The additional 8 submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 submarines will be delivered to Canada by 2043.
Glenn Copeland, CEO of Hanwha Canada provided us with this statement on todays milestone:
“Hanwha has the fastest delivery by far. First sub by 2032, four by 2035, all 12 by 2043. We can even get ahead of these timelines. This earlier and accelerated schedule is important for three reasons. It is Canada’s fastest path to an enhanced submarine capability. It means earlier retirement of the Victoria Class resulting in estimated savings of around $1 Billion on maintenance and support. It also means job creation, trade and investment in Canada starts right away, not in several years like other options.
This includes construction of MRO facilities on both coasts, training facilities, technology transfer, supply chain integration and other partnerships and collaborations. In addition to offering fast delivery of the most advanced conventional submarine platform in production today, Hanwha’s proposal includes a robust industrial package for Canada that will create upwards of 25,000 jobs per year and significant economic growth, accelerate Canada’s domestic defence capabilities, and enhance cooperation, partnership and supply chains between Canada and South Korea – a relationship that is becoming increasingly important, and one that supports the objectives of Canada’s Indo-Pacific Strategy.
Hanwha’s CPSP proposal includes trade and investment of more than $60 Billion across of range of strategic sectors, including energy, steel, critical minerals, space, satellite communications, automotive, shipbuilding, training, sustainment, aerospace, advanced manufacturing, AI, high-technology, and infrastructure.”
TKMS
On the other side of things is TKMS and Team GERNOR. Team GERNOR is unique in that it is a multinational offering comprising both the Norwegian and German governments. At the centre of this is German TKMS and the Norwegian Kongsberg.
They are offering the Type-212 Common Design, which we refer to as the Type-212CD. It is smaller than the KSS-III Batch II with a length of 73 metres and 10 metres at the beam. She has a displacement of ~2,800 tonnes submerged.
The 212CD is an evolution of the TKMS Type-212A submarine, often cited as one of the quietest and most advanced diesel-electric submarines on earth. The CD takes this a step further with perhaps one of her most notable features: her diamond-shaped outer hull.
Unlike traditional teardrop-shaped hulls, the 212CD features flat, sloping sides. This faceted outer hull is designed to act similarly to the angles on a stealth aircraft, reflecting active-sonar energy away from the emitter rather than bouncing it directly back. This drastically reduces the submarine's Target Echo Strength (TES).
The 212CD takes this an extra step further with the utilization of non-magnetic Amanox family steel. The use of non-magnetic steel is a staple of German submarines like the 212A, making them virtually undetectable to magnetic anomaly detectors (MAD) utilized by maritime patrol aircraft. It also acts as a countermeasure to things like magnetic naval mines. There are other benefits and such; you can read all that here.
Away from steel, the 212CD also utilizes a combination of lithium-ion and AIP systems like the KSS-III Batch II. The 212CD will utilize TKMS's in-house 4th Generation Fuel Cell (FC4G) for its AIP system; you might also hear it referred to as the Advanced Submarine Fuel Cell (ASFC) system.
What's unique is that ASFC operates as a modular "line system" made of 40 kW stacks grouped to provide up to 320 kW baseline. This is designed to allow the 212CD more flexibility and partial-load efficiency, especially at low speeds where it might not need to utilize all the power available to it.
I believe the lithium-ion batteries themselves are coming from Saft. You know, I never asked for clarification there... probably should. The 212CD also utilizes two MTU 4000-series diesel generators similar to the KSS-III.
To pair with the new 212CD, Kongsberg and TKMS—under their joint partnership kta naval systems (which also included Atlas Elektronik before TKMS bought them)—developed a brand new combat management system with ORCCA.
ORCCA utilizes a scalable data centre concept to integrate both the vessel's platform controls and combat operations, aggregating complex sensor information and presenting it to crew members through an intuitive interface on multifunctional consoles. This virtualization-based architecture supports flexible manning roles and ensures high system availability during deployments.
Additionally, ORCCA features an open framework designed to accommodate the integration of third-party subsystems, buyer-specific algorithms, and future artificial intelligence operations while incorporating built-in IT security protocols.
TKMS came a bit late to the partnership game, only really securing their first official one a few months ago. These current partners include:
Furthermore, TKMS, as I'm writing this, has announced new agreements with Songhees Development Corporation, Des Nedhe Group Defence, Glooscap Ventures, and the Inuit Development Corporation Association to collaborate on future areas of economic and industrial cooperation in the advancement of Indigenous reconciliation.
The company has already entered strategic collaboration agreements with Dalhousie University, Western University, and the University of British Columbia (UBC) to cooperate in areas such as naval superiority, Arctic research, and clean technologies; advancing national capabilities in artificial intelligence (AI), autonomy, and capabilities enabling multi-domain operations (MDO); talent development; and accelerating commercialization pathways for Canadian SMEs.
The big piece of the TKMS offering is its established, global network. Since 1960, TKMS has signed contracts for more than 180 submarines, with approximately 40% produced in customer countries. That includes NATO partners like Norway, Italy, Portugal, Turkey, and Greece.
TKMS has been open in offering us an equal stake in the partnership; that means supporting Canadian industry through tech transfers and IP for key systems, subsystems, and components. That will include TKMS ensuring that key systems and components are manufactured here to help bolster the collective supply chain.
TKMS is open to standardizing Canadian technology and systems across all variants of the 212CD. This means adopting Canadian systems and technology as standard across the entire production line.
TKMS has offered us a spot, as others, in their Submarine Cooperation Network. The SCN aims to:
• Promote shared training and operational experience.
• Create a system for joint procurement opportunities and stockpiling of spare parts.
• Support coordinated upgrades and obsolescence management.
Through this system, Canada will not only have access to a much wider network of partners beyond Germany and Norway, but TKMS is also opening the door for Canadian industry to take part in other programs (both through manufacturing and potential integration) beyond the Type 212CD.
TKMS is also extending this to training. TKMS is offering a comprehensive training package that not only includes training of crews in Germany, but also the opportunity for crew exchanges and long-term personnel transfers between Canada, Germany, and Norway.
Kongsberg is also promoting a Kongsberg-led CMS Centre of Excellence in Ottawa that will ensure sovereign control over key technologies such as the ORCCA combat management system.
Both Kongsberg and TKMS have been open on the transfer of IP for key systems as well as the potential establishment of local production for key subsystems such as the sonar suite, torpedoes, lithium-battery systems, and AIP systems. One key distinction here is that Kongsberg and TKMS hold the majority of the IP within the 212CD.
Beyond TKMS and Kongsberg, the German and Norwegian governments have also been committed to supporting Canadian industry through CPSP. The Deutsche Marine has recently signed a contract to procure Lockheed Martin Canada’s CMS330 combat management system in a staggering $1 billion CAD deal. The German government has also proposed further cooperation with Bombardier, including the order of additional Global 6500.
Furthermore, today Canada and the EU signed a new Joint Declaration on Critical Minerals Collaboration, aiming to strengthen co-operation and multilateralism in support of secure supply chains, bilateral investment and trade, industrial competitiveness, and sustainable growth. This was followed by a new Letter of Intent with the European Investment Bank to negotiate an agreement with Canada that will pave the way toward co-operation on projects in Canada and abroad.
This all comes just after the European Union committed 200 million € to helping establish a hydrogen export corridor between Canada and Germany. Also just today, Siemens and Rock Tech Lithium signed a non-binding Memorandum of Understanding (MoU), laying the foundation for a long-term, multi-phase strategic partnership to develop state-of-the-art lithium conversion capacity in Canada.
Other German companies, such as Isar Aerospace and Volkswagen, are also looking at potential Canadian opportunities in both domestic launch and automotive.
Lastly, I would be remiss if I didn't mention SAFE. Canada concluded negotiations in the SAFE initiative back in December. Through this, Canadian companies have secured a pathway to increased participation in EU defence procurements. It also opens the door for further Canadian participation in industrial partnerships, joint procurements, and supply agreements with EU member states.
Participation in SAFE opens a new pathway for Canadian-European cooperation. Canada remains the only non-EU state participating in SAFE, providing us a form of exclusivity for industry that allows them to participate to a far greater extent than other non-EU states.
This further incentivizes investments from EU states into Canada, which will soon have the legal framework in place to collaborate and include Canadian industry without risking potential funding opportunities. That includes Canadian content in future submarines.
But what about automotive, Noah?
I have seen this mentioned by a few publications today. There seems to be some concern that these bids didn't include automotive, despite Madame Joly being quite adamant in its inclusion.
I want to say that there was no timeline that included automotive in this bid. That wasn't expected by anyone here. Any automotive agreement is coming separate from the bids submitted in the RFP. That was always expected given the people involved.
If any automotive commitments do come, they likely won't be until after a partner is down-selected, funny enough. I have doubts those automotive commitments are coming. Perhaps someone has said something, I don't know. However, I have my doubts.
What about the rumoured split?
This came from the Globe and Mail today and I just want to quickly say that I have not heard a single word on a split since the Prime Minister called it dumb and stinky. If there is a split? It's coming from the PMO where I don't have sources. No one I know has heard of a split.
As I have said before, it would be a monumentally bad choice. Splitting the decision would likely drastically reduce the economic benefits provided, to the point one has to ask if the strain on supply chains, training, and sustainment are worth it.
It's overall the wrong choice to make for a bunch of reasons, probably why the Prime Minister rejected it forever ago.
Laying it all out
I don't like how companies pitch. I don't like how media present pitches. As I said before, I'm not going to judge these as is because there is still lots of time and plenty of agreements and investments to come. Likely this week...
However, I did want to give the pitches to you. I have tried my best to present both sides to their absolute, with pitches I hope they would both make to demonstrate all that's going on. I do caution again that this isn't the end. This isn't where either side is done.
There's a lot to come, and a lot more exciting news that will be breaking. However, this gives you at least a refresher, a comprehensive glimpse into what's going on and what has been committed to right now.
Again, look at it; think of it. Take your time to go through, do your own insight and deep dive into this. I covered as best I could, and I believe I got the most of it. You don't need to decide who you love now, but you can at least get a thought to everyone.
So don't stress. A decision is far away still. Don't look too deeply into things as they are now because I promise we're only getting started.
Hopefully these talks about splitting the procurement can be put to rest, the Government seems to be developing an annoying habit recently of trying to split up every single major procurement contests winner into multiple bidders. Submarines, fighters, MLRS, etc. Companies are not going to be especially attracted to Canada if all of our procurements turn into back patting consolation prize fest where nobody is allowed to actually be the winner. We're setting ourselves up for potential logistical nightmares with what I feel is very short sighted political goals in mind.
The PMO's thinking is pretty transparent here — they want both industrial packages and both strategic relationships. That's not unreasonable given where the world is right now.
But 6+6 doesn't get you there. Both partners bid on up to 12 boats. Six each feels like a consolation prize and both industrial packages probably shrink to match.
What about 8+8? Eight KSS-IIIs at Esquimalt with a dedicated west coast sustainment hub, eight 212CDs at Halifax with their own. Each coast runs a single platform type, clean logistics, OEM support on-site. A firm 8 is a serious enough order that both partners have reason to keep their full investment commitments on the table. The RCN gets 16 boats instead of 12, delivered faster than a single-source 12-boat program.
The PMO gets both partnerships. The RCN gets more than it asked for. You pay more for 16 than 12, obviously — but if you're splitting the order anyway, at least do it at a number that justifies the decision.