GATINEAU, Quebec --- The Government of Canada is investing more than $7.5 billion in the Royal Canadian Navy’s 12 Halifax-class frigates to provide necessary ongoing maintenance until they are retired in the early 2040s.
Today, the Government of Canada awarded contracts to Chantier Davie and Seaspan Victoria Shipyards Limited, initially totalling $1 billion to carry out maintenance work on the first group of Canada’s Halifax-class frigates. A similar contract with Irving Shipbuilding Inc. is currently being finalized.
These initial five-year contracts guarantee a minimum of 3 frigates for each shipyard, with work planned to begin in the early 2020s. These contracts are expected to rise in value as additional work packages are added.
The contracts are expected to create or sustain up to 400 jobs at each shipyard, plus hundreds of related jobs for marine sector suppliers and subcontractors across the country.
The Canadian Surface Combatants will replace the Halifax-class frigates and the retired Iroquois-class destroyers. With them, the Royal Canadian Navy will have modern and capable ships to monitor and defend Canada’s waters, to continue to contribute to international naval operations for decades to come and to rapidly deploy credible naval forces worldwide, on short notice. Construction on the Canadian Surface Combatants is scheduled to begin in the early 2020s.
“This vital, long-term work demonstrates the government’s continued commitment to supporting the women and men of the Royal Canadian Navy by providing them with the equipment they need to protect Canadian interests at home and abroad. Together with our shipbuilding partners, we are fulfilling federal fleet requirements, advancing Canadian technological innovation and creating jobs across this great country,” said Carla Qualtrough, Minister of Public Services and Procurement and Accessibility.
“This announcement is essential for supporting the modernization of the Royal Canadian Navy. With our government’s continued investment, our Navy will continue to contribute to maritime security and stability around the world. This is a testament to how our defence policy, Strong, Secure, Engaged, continues Canada’s re-engagement in the world. I am proud of our sailors and the great work they do,” said Harjit S. Sajjan,
Minister of National Defence.
-- Of the $1 billion (excluding taxes), Chantier Davie and Seaspan Victoria Shipyards Limited will each receive a $500-million contract. These are initial contracts, and values are linked to individual ship maintenance schedules, the cost of shipyard labour rates and projected condition, and work that needs to be completed on the individual ships.
-- The Industrial and Technological Benefits Policy, including the Value Proposition, was applied to this procurement.
-- Docking maintenance work periods are essential to ensuring the Halifax-class frigates are available and reliable during their operational cycle and deployments.
-- The Royal Canadian Navy requires that at least 8 of the 12 frigates be able to deploy at all times to meet the Navy’s commitment to the Government of Canada.
-- These frigates monitor and control Canadian Waters, defend Canada’s sovereignty, facilitate large-scale search and rescue activities, and provide emergency assistance when needed. The frigates operate with and integrate into the United Nations, the North Atlantic Treaty Organization (NATO) and coalitions of allied states in support of international peace and security operations.
Introduced into service in the 1990s, the Canadian-built Halifax-class frigates were recently modernized to remain effective and operationally relevant until the Canadian Surface Combatants enter into service.