Three Canadian Shipyards Share C$7Bn Contracts for Frigate Support

GATINEAU, Quebec --- Public Services and Procurement Canada, on behalf of National Defence, has issued Advance Contract Award Notices (ACANs) to Irving Shipbuilding Inc., of Halifax, Nova Scotia, Chantier Davie Canada Inc., of Lévis, Quebec, and Seaspan Victoria Shipyards, of Victoria, British Columbia, for maintenance support services for Canada’s 12 Halifax-class frigates.

The combined value of the three contracts will be approximately $7 billion (including taxes).

These contracts will be awarded under the repair, refit and maintenance component of the NSS and will ensure that maintenance and engineering work continue on the 12 Halifax-class frigates until the replacement Canadian Surface Combatant ships are delivered.

These notices follow extensive industry engagement, which began in December 2016. Based on these consultations, it was determined that these three Canadian shipyards possess the required workforce and infrastructure necessary to conduct the work on the Halifax-class frigates.

The ACANs confirm Canada’s intention to enter into a contract with each of the three identified Canadian shipyards. Other interested suppliers have 15 calendar days to signal their interest in bidding for this contract, by submitting a “statement of capabilities” that meets the requirements laid out in the ACANs.

Quotes

“Through the National Shipbuilding Strategy, the process of renewing fleets for the Royal Canadian Navy over the next 30 years is underway across the country. Our Government’s long-term commitment to maintaining an agile and responsive naval force will provide the Royal Canadian Navy and its sailors with the reliable ships they need to do their jobs while protecting the interests of all Canadians,” said Carla Qualtrough, Minister of Public Services and Procurement and Accessibility.

“We are ensuring that the women and men of our Royal Canadian Navy are equipped with the ships they need to serve Canadians. Our Government is taking measures to ensure that our modernized Halifax-class frigates are able to continue to protect Canadian waters and contribute significantly to international operations. These contracts will ensure that our frigates remain operationally ready while increasing the number of jobs and strengthening the ship maintenance capacity in Canada as outlined in our National Shipbuilding Strategy,” said Harjit S. Sajjan, Minister of National Defence.

Quick facts

--The Industrial and Technological Benefits Policy, including Value Proposition, will be applied to this procurement.

--Periodic docking maintenance work periods are essential to ensure the Halifax-class frigates are available and reliable during their operational cycle and deployments.

--The RCN has 12 Halifax-class frigates; seven are stationed in Halifax, Nova Scotia, while the five are stationed in Esquimalt, British Columbia.

--The RCN requires that at least eight of 12 frigates are able to deploy at all times to meet the Navy’s commitment to the Government of Canada.

--The ships require a wide range of engineering change work, equipment installations, docking work and corrective maintenance activities to ensure that they remain operationally available and relevant through to end of life.

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