Key Issues Notes

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• Recommendation 1: Schedule Management Weaknesses [National Defence lead]
• Canadian Surface Combatants (CSC)
• Joint Support Ships (JSS)
• Arctic and Offshore Patrol Ships (AOPS)

Recommendation 1: Schedule Management Weaknesses [National Defence lead]

Key Facts

Auditor General Report – Recommendation 1

Details

OAG Report on National Shipbuilding Strategy – Corrective Measures Taken:

• The OAG Report highlighted a number of corrective actions and key decisions made, which have placed the NSS on a more viable path:
  • The Government reviewed Seaspan’s corrective action plan developed in response to a 2018 expert third party assessment on the shipyard’s capacity and target state for the production of non-combat ships. This review allowed the NSS team to identify risks to attaining target state objectives. A similar assessment is underway for Irving.
  • A number of decisions were made to address risks, following considerable analysis, discussions with third parties, and interdepartmental collaboration. This has resulted in new delivery schedules based on more realistic assumptions. For example:
    • Measures, such as a longer construction period for the Arctic and Offshore Patrol Ship (AOPS), have been established in order to maintain shipyard activity and workforce skills.
    • The construction schedule at Seaspan’s Vancouver Shipyards has been reordered to better match work capacity within the yard.
    • PSPC has launched a competition for a third shipyard to help meet workload requirements.
• Measures were also taken to help ensure continued operations until new ships are delivered.

National Shipbuilding Strategy (NSS)

• On June 3, 2010, the Government announced Canada’s National Shipbuilding Procurement Strategy (renamed the National Shipbuilding Strategy in March 2016).
• In 2011, the Government selected Seaspan’s Vancouver Shipyards and Irving Shipbuilding Halifax Shipyard for the construction of large ships.
• In February 2012, the Government of Canada signed long-term agreements, referred to as umbrella agreements, with the selected shipyards.
• The National Shipbuilding Strategy Combat Package, which includes the Arctic and Offshore Patrol Ships and the Canadian Surface Combatants (replacements for the frigates and retired destroyers), will be built by Irving Shipbuilding.
• The Package also includes the Joint Support Ships for the Royal Canadian Navy, science research vessels, and Multi-Purpose Vessels for the Canadian Coast Guard to be built by Vancouver Shipyards.
• In the context of the COVID-19 pandemic, there has been sustained media and Parliamentary interest in the potential for delays to the timelines for major shipbuilding projects under the National Shipbuilding Strategy.
• During this time, we are working in close collaboration with our industry partners to keep our respective workforces safe, while still making progress on these important naval projects.

Canadian Surface Combatants (CSC)

Key Facts

Auditor General Report – Recommendation 1

Details

Canadian Surface Combatant Project

• Canada’s new class of warship – the Canadian Surface Combatant – will replace and update the capabilities found in both the retired Iroquois-class destroyers and the Halifax-class frigates. This single class of ship will be capable of meeting multiple threats on the open ocean and the coastal environment.
• The new warships will be able to conduct a broad range of tasks, including:
  • Delivering decisive combat power at sea, either independently or as part of a Canadian or international task group;
  • Supporting Canadian Armed Forces, and Canada’s allies ashore;
  • Conducting counter-piracy, counter-terrorism, interdiction and embargo operations for medium intensity operations; and,
  • Delivering humanitarian aid, search and rescue, and law and sovereignty enforcement for regional engagements.
• In February 2019, Canada selected a design for the CSC that is based on the Type 26 frigate, adapted to meet the operational requirements of the Royal Canadian Navy, and Canada Canada’s prime contractor, Irving Shipbuilding, contracted Lockheed Martin Canada to provide the design and design team.
• Canada is now working with Irving Shipbuilding, Lockheed Martin Canada, and their subcontractors to evolve the selected ship design and systems integration in preparation for build.
• Early in 2019, Alion and Navantia, the two non-selected bidders on the Canadian Surface Combatant Request for Proposals filed for judicial reviews asking the Federal Court to set aside the decision that Lockheed Martin Canada was the selected bidder. In November 2019, Alion discontinued its applications for judicial review. The Department of Justice has carriage of the ongoing matters, which should not be publicly discussed as they are before the courts.

Joint Support Ships (JSS)

Key Facts

Auditor General Report – Recommendation 1

Details

• The two new Joint Support Ships are intended to replace the Navy’s Auxiliary Oiler Replenishment vessels. They will provide at-sea support to naval task groups, limited sealift capabilities, and support to operations ashore.
• In 2013, after a rigorous interdepartmental selection based upon affordability, capability, and risk, National Defence selected the German Berlin Class design for its Joint Support Ship project that offers the best value to Canada.
• Public Service and Procurement Canada selected Seaspan’s Vancouver Shipyards as the prime contractor to build these vessels for the Navy.
• A $2.4 billion contract for full-rate construction of the JSS was awarded to Seaspan Vancouver Shipyards in June 2020.
• As of April 2021, 48 of the first ship’s 123 blocks are substantially complete, with a further 63 blocks under construction.
• Construction of the second supply ship is scheduled to begin in late 2021, although certain long lead items have already been contracted for.

JSS Benefit to the RCN

• The JSS is critical to the future of the RCN, and constitutes a vital and strategic national asset. The presence of replenishment ships increases the range and endurance of a Naval Task Group, permitting it to remain at sea for significant periods of time without returning to port for replenishment. The new JSS will have capabilities such as:
  • Underway support to Naval Task Groups: Underway support is best described as:
    • the re-supply of fuel, ammunition, spare parts and other supplies between ships at sea;
    • the operation and maintenance of helicopters;
    • the task group medical and dental facilities.
  • Sealift: JSS will be capable of transporting and delivering cargo both in support of task group operations and in support to operations ashore; and
  • Support to operations ashore: To meet a range of possibilities in an uncertain future security environment, the JSS will leverage its onboard facilities to support operations ashore, including anything from combat to humanitarian and disaster relief.
• JSS capabilities:
  • Equipped with systems to detect and protect against chemical, biological, radiological, and nuclear threats.
  • Equipped with a full range of features and systems that enhance their survivability and allow them to fully integrate with other warships (e.g., have a combat management system, multiple weapons systems, an electronic support measures suite, and dual shafts for enhanced redundancy).
• The JSS will provide Canada with a modern, task tailored, globally deployable, naval support capability that can provide support to the ships and aircraft of a naval task group at sea. It will be crewed by CAF personnel

Arctic And Offshore Patrol Ships (AOPS)

Key Facts

Auditor General Report

Details

Arctic and Offshore Patrol Ships Project

• Strong, Secure, Engaged committed to the acquisition of five to six Arctic and Offshore Patrol Ships. In November 2018, the Government of Canada announced a decision to acquire a sixth vessel.
• These vessels will be able to perform a wide variety of tasks, including:
  • Surveillance operations of Canadian waters;
  • Support of sovereignty operations;
  • International operations;
  • Humanitarian assistance, emergency response and disaster relief; and
  • Search and Rescue.
• The Arctic and Offshore Patrol Ships will operate in the Arctic between June and October, providing a greater and longer Canadian Armed Forces presence in the North.

Post-Delivery Work

• Since delivery in July 2020, the ship is undergoing normal post-acceptance work, including the outfitting and integration of onboard systems to meet RCN operational requirements.
• This work is all part of a normal process to incrementally test the ship and its systems, rectify any deficiencies, gain experience sailing this first of class vessel, and ultimately build the proficiency and resiliency required for sustained operations here at home and around the globe.

Sea Trials

• Under Navy command, HMCS HARRY DEWOLF continues to complete sea trials and gathering the data necessary to develop and refine operating procedures.
• HMCS HARRY DEWOLF is conducting these trials while also providing operational surveillance and presence for the eastern maritime approaches of Canada.
• HMCS HARRY DEWOLF is expected to enter into RCN service in summer 2021, once the crew has completed all of their required operational training.