Language selection

Government of Canada / Gouvernement du Canada

Search

Media Analysis

On this page

Parliamentary Committee on Public Accounts

May 25, 2021

Topic: Auditor General’s 2021 report on the National Shipbuilding Strategy

Summary

Since mid-February 2021, media coverage relating to the National Shipbuilding Strategy (NSS) was moderate with the majority of articles published focusing on the Parliamentary Budget Officer (PBO) report, the Auditor General’s (AG) report as well as the recent announcement on Polar Icebreakers. Following the two reports, articles were factual with some having a negative twist on the rising costs of the various projects. Coverage following the Polar Icebreakers announcement was balanced and mostly factual.

Parliamentary Budget Officer (PBO) Report, Canadian Surface Combatant project (CSC)

On February 3, Times-ColonistFootnote 1 reported that the Department of National Defence (DND) revealed that the first 15 new warships being built to replace the Navy’s 12 frigates and three already-retired destroyers will be delivered in 2030 or 2031, years later than planned. Though defence officials have maintained the $60 million budget which was set in 2017 remains sufficient. The article noted that news of the schedule slip comes ahead of the “highly anticipated update” from the PBO.

Following the February 24 PBO report regarding the CSC cost, several articles reported in a negative tone. The articles noted that the cost of the proposed fleet of warships has jumped to an estimated $77 billion, increasing by $7.3 billion in less than two years. The articles also indicated that the price of the CSC could climb even higher if the “frequently-delayed” program faces any more setbacks (Hill TimesFootnote 2, MacleansFootnote 3, CBCFootnote 4, Radio-CanadaFootnote 5, CTV NewsFootnote 6, Cape Breton PostFootnote 7).

An article by the National PostFootnote 8 stated “The Liberal government in 2017 set the project's budget at $60 billion, a number that defence officials reiterated in an interview with The Canadian Press last month.”

Cape Breton PostFootnote 9 reported that the DND is refusing to make changes to the $77 billion CSC project and that it has instead launched a social media campaign to highlight the proposed new ship, the Type 26 from the consortium of Lockheed Martin and BAE. The article noted that DND also used government resources and funding to promote private firms associated with Lockheed Martin on the CSC project. DND spokesperson, Dan Le Bouthillier said that the social media effort to promote certain companies is done to provide factual information. Alan Williams, a former top federal procurement official at the DND argued that what the department is doing is unethical.

Ottawa CitizenFootnote 10 reported once again on the PBO report outlining the rising costs of the CSC project, this time emphasizing that the PBO acknowledges he’s at a loss on why the cost keep increasing.

Hill TimesFootnote 11 published an opinion piece by Alan Williams, which touched on the Naval Association of Canada (NAC) releasing a paper that Williams states had “a number of significant errors” following the PBO report on the CSC project. The article was written in a negative tone and noted that the report which was written in an attempt to provide context and underscore the complexity of the CSC project does not contain accurate information.

Alan Williams, Former Assistant Deputy Minister of Materiel, DND

Quotes from the Cape Breton PostFootnote 9 article:

Quotes from the Hill TimesFootnote 11 article:

Dan Le Bouthillier, DND spokesperson

Quote from the Cape Breton PostFootnote 9 article:

Yves Giroux, Parliamentary Budget Officer

Quotes from the Ottawa CitizenFootnote 10 article:

Auditor General’s report on the National Shipbuilding Strategy (NSS)

Numerous articles reported in a negative tone following the Auditor General’s report on the NSS on February 25. The articles noted that several departments, one of which being PSPC, “did not manage the process in a manner that supported timely renewal of the federal vessel fleet”. That being said, National PostFootnote 14 wrote that “The government departments responsible for the delays and cost over-runs claim that lessons have been learned and project schedules will be met in the future.” Other articles expressed some concerns in regards to delays that could result in several vessels being retired before new ones are operational (Marine LogFootnote 12, Radio-CanadaFootnote 13, National PostFootnote 14).

Global NewsFootnote 15 highlighted Minister Anand’s response to the report stating that shipbuilding is a complex issue and that the experience gained in completed projects gives the government sound data to move ahead, while accepting the Auditor General’s recommendations.

Statement from Public Services and Procurement Canada

Quotes from the Marine Log article:

Government of Canada’s Polar Icebreaker Announcement

On May 6, the Government announcedFootnote 16 that it is moving forward with the construction of two Polar icebreakers under the NSS. A technical briefing with senior government officials was held, followed by a ministerial announcement. Media coverage was moderate and the tone was balanced and mostly factual.

Global NewsFootnote 17 reported that during a background briefing ahead of the announcement, senior civil servants said the decision to build two heavy icebreakers reflected the changing conditions in Canada’s increasingly accessible Arctic regions. They also defended the decision to split the work between the two shipyards, rather than give both icebreakers to one, as a prudent step given the pressing need to get the two vessels in the water as soon as possible.

CBCFootnote 18 reported that Bernadette Jordan, Fisheries and Oceans Minister and responsible for the Canadian Coast Guard said that they will be “putting thousands of Canadians to work building a fleet that will serve those communities for decades." Journal de QuébecFootnote 19 said that this will create approximately 300 jobs per ship and nearly 2500 jobs in the supply chain.

Global NewsFootnote 17 and CBCFootnote 18 reported that federal officials declined on more than one occasions to provide any cost estimate or budget for the two icebreakers. Articles highlighted that the decision to split the work will most likely ease the tension between Seaspan and Davie, but could come at a cost to taxpayers. Business in VancouverFootnote 20 also noted that the final cost of the two vessels will not be known until the contracts are negotiated with Seaspan and Davie but that the overall expected cost to build the two new icebreakers would exceed the previous $1.3-billion estimate for the Diefenbaker alone.

Multiple outlets described the announcement of dividing the work between two yards from two different provinces, ahead of a possible fall electoral campaign, as a politically-driven decision (Radio-CanadaFootnote 21). ReutersFootnote 22 wrote that the federal government promised to build two Arctic icebreakers and create hundreds of jobs in two politically influential provinces which will likely play a deciding role in the next federal elections. Canadian PressFootnote 23 outlined that opposition parties are criticizing the government for playing electoral politics.

Pierre Paul-Hus, Conservative Party, procurement critic / Richard Bragdon, Conservative Party, fisheries critic

Quotes from the Canadian PressFootnote 23 article:

Yves-François Blanchet, Bloc Québécois Leader

Quotes from the Canadian PressFootnote 23 article:

List of Relevant Articles

Government of Canada’s renewal of the Canadian Coast Guard fleet – Polar Icebreakers Announcement

May 6, 2021

Summary

On May 6, 2021, the Government announced that it is moving forward with the construction of two Polar icebreakers under the National Shipbuilding Strategy (NSS). A technical briefing with senior government officials was held, followed by a ministerial announcement. As of May 7, the day after the announcement, media coverage was moderate with 18 articles published. The tone was balanced and mostly factual.

Articles focused on the government’s decision to add a second heavy icebreaker to the fleet renewal plan for the Canadian Coast Guard (CCG); it also highlighted the decision to split the work between Seaspan Shipyards in Vancouver and Quebec-based Chantier Davie and how it would be economically beneficial for these two shipyards and regions; and, finally, articles emphasized the expected heavy price tag associated with the announcement while also insisting on the fact that the government declined to divulge the cost at this point. Lastly, two media calls (from Global News) were received and completed in relation with the announcement.

Positive Economic Impact

Global News reported that during a background briefing ahead of the announcement, senior civil servants said the decision to build two heavy icebreakers reflected the changing conditions in Canada’s increasingly accessible Arctic regions. They also defended the decision to split the work between the two shipyards, rather than give both icebreakers to one, as a prudent step given the pressing need to get the two vessels in the water as soon as possible. CBC reported that Bernadette Jordan, Fisheries Minister and responsible for the Canadian Coast Guard said that they will be “putting thousands of Canadians to work building a fleet that will serve those communities for decades." Journal de Québec said wrote that this will create approximately 300 jobs per ship and nearly 2500 jobs in the supply chain.

Gilles Lehouillier, maire de Lévis

«On a un pas concret qui est posé par le gouvernement fédéral où on a un brise-glace qui sera probablement top niveau au monde. Le chantier Davie démontre son leadership au niveau canadien dans la construction navale. C'est porteur d’avenir comme c’est pas possible avec tout le cheminement de ce chantier. Davie est en mesure de faire la preuve de son calibre international incontestable. Pour le Canada entier, Davie devient un joueur incontournable. Au-delà du papier et de dire que Davie fait partie de la Stratégie navale, ça prend des gestes concrets, et là on en a un aujourd’hui».

Bernadette Jordan, Fisheries Minister and responsible for the Canadian Coast Guard

"Built by Canadian shipyards, these vessels will enable the coast guard to conduct critical science, supply and other missions in our Arctic region year-round. Under the National Shipbuilding Strategy, we're putting thousands of Canadians to work building a fleet that will serve those communities for decades."

Cost of the Heavy Icebreakers

A few outlets reported negatively on the overall expected cost to build the two new icebreakers that will exceed the previous $1.3-billion estimate for the Diefenbaker alone. Global News and CBC reported that the federal officials declined on more than one occasions to provide any cost estimate or budget for the two icebreakers. Articles highlighted that the decision to split the work will most likely ease the tension between Seaspan and Davie, but could come at a cost to taxpayers. Business in Vancouver also noted that the final cost of the two vessels will not be known until the contracts are negotiated with Seaspan and Davie.

Accusations of Electioneering

Multiple outlets described the announcement of dividing the work between two yards from two different provinces, ahead of a possible fall electoral campaign, as a politically-driven decision (Radio-Canada). Reuters wrote that the federal government promised to build two Arctic icebreakers and create hundreds of jobs in two politically influential provinces which will likely play a deciding role in the next federal elections. The Canadian Press outlined that opposition parties are criticizing the government for playing electoral politics.

Conservative procurement critic Pierre Paul-Hus and fisheries critic Richard Bragdon

"After over a half-decade in government, the Liberals have re-announced that Seaspan Shipyards in Vancouver will be building a heavy icebreaker for the Canadian Coast Guard."

"However, the announcement made by the Trudeau Liberals in no way guarantees that Davie Shipyards in Quebec will also get a contract to build a heavy icebreaker."

Bloc Quebecois Leader Yves-Francois Blanchet

“Blanchet suggested until a contract with Davie is signed, Thursday's icebreaker announcement was "nothing but words" designed to protect the Liberals' electoral fortunes in Quebec and Vancouver.” (Canadian Press)

List of Articles

  1. B.C., Quebec shipyards each get new icebreaker, Liberals accused of electioneering (CANADIAN PRESS) 2021-05-07
  2. Les brise-glaces d'Ottawa, entre réalisme et politique (Marc Godbout, RADIO-CANADA) 2021-05-07
  3. Davie et Seaspan construiront chacun un nouveau brise-glace pour la Garde côtière (PRESSE CANADIENNE) 2021-05-07
  4. BRISE-GLACE : UN CONTRAT MAJEUR POUR CHANTIER DAVIE (JOURNAL DE MONTREAL) 2021-05-07
  5. Seaspan wins contract for new icebreaker, expected to benefit Island's marine industry (VICTORIA TIMES-COLONIST) 2021-05-07
  6. Seaspan to build new icebreaker (Derrick Penner, THE PROVINCE) 2021-05-07
  7. Construction de deux brise-glaces polaires : optimisme prudent au chantier de la Davie (Camille Carpentier, RADIO-CANADA) 2021-05-06
  8. WILLIAMS: Here's why Canada's shipbuilding debacle matters (Alan Williams, TORONTO SUN) 2021-05-06
  9. La construction d'un brise-glace par Chantier Davie pourrait profiter à la région (RADIO- CANADA) 2021-05-06
  10. Deux brise-glaces polaires seront construits, dont un à la Davie (Marc Godbout, RADIO- CANADA) 2021-05-06
  11. Davie et Seaspan construiront chacun un nouveau brise-glace pour la Garde côtière (LA VOIX DE L’EST) 2021-05-06
  12. Ottawa doubling icebreaker orders as one ship goes to Quebec yard, another to Vancouver (Lee Berthiaume, GLOBAL NEWS) 2021-05-06
  13. Trudeau government promises coast guard two new heavy icebreakers for Arctic operations (Murray Brewster, CBC) 2021-05-06
  14. Chantier Davie décroche un contrat important (Diane Tremblay, JOURNAL DE QUEBEC) 2021-05-06
  15. Ottawa doubling icebreaker orders as one ship goes to Quebec yard, another to Vancouver (Lee Berthiaume, GLOBAL NEWS) 2021-05-06
  16. Trudeau government adds second icebreaker to shipbuilding plan (Nelson Bennett, BUSINESS IN VANCOUVER) 2021-05-06
  17. Canada promises two Arctic icebreakers in pre-election job boost (David Ljunggren, REUTERS) 2021-05-06
  18. Federal government to reveal plans for building long-overdue heavy icebreaker (Lee, Berthiaume, VICTORIA TIMES-COLONIST) 2021-05-06

Date: December 24, 2020

Chantier Davie media campaign for the build contract of the Polar Icebreaker

December 1-23, 2020

Context:

The construction of the new Polar Icebreaker, the future Canadian Coast Guard Ship (CCGS) John G. Diefenbaker has always been a source of significant media attention. Since the announcement in May 2019 that Canada was removing the Polar Icebreaker from Seaspan’s Vancouver Shipyards (VSY)’s package of work, the media has produced content heavily biased towards either Chantier Davie Inc. or VSY, depending on the outlet.

Throughout 2020, both Chantier Davie Inc. and VSY have led robust media campaigns signaling their capability and intention to build the Polar Icebreaker:

Provincial governments have also weighed in heavily on this heated debate, citing the benefits of the contract award for their respective provinces.

Background:

The Canadian Coast Guard (CCG) has a requirement for a new Polar-class icebreaker. The future CCGS John G. Diefenbaker will replace Canada's current largest and most capable icebreaker, the CCGS Louis S. St-Laurent, to become Canada’s most powerful conventional icebreaker.

In October 2011, the Government of Canada announced that Seaspan’s Vancouver Shipyards Co. Ltd. (VSY) and Irving Shipbuilding Inc. (ISI) were selected as Canada’s shipbuilding partners under the National Shipbuilding Strategy (NSS). Seaspan was identified as the shipyard to build Canada’s non-combat package, including the new Polar-class Icebreaker.

In May 2019, the Government of Canada announced the renewal of Canada’s Coast Guard fleet. At this time, it was announced that the construction of 16 multi-purpose vessels (MPVs) would be added to VYS’s work package. This also resulted in the Polar Icebreaker being removed from VSY’s package of work, so that Canada could reassess its options on having the Polar built in the most efficient amount of time at a cost that would provide value for money. In February 2020, Canada issued a Request for Information (RFI) to Canadian shipyards to assess their capacity and capability to build the CCG Polar Icebreaker. Canada is currently analyzing procurement options for the Polar Icebreaker, but no decision has been taken at this point.

In 2019, the Government also announced its intention to add a third Canadian shipyard as a partner under the NSS. Following an Invitation to Qualify (ITQ) process, Chantier Davie Inc. of Lévis, Quebec, is the only shipyard that has moved to the RFP and evaluation stage of the process.

Media Analysis:

Media calls

PSPC received one media call from RADIO-CANADA related to the Polar Icebreaker’s status. The department responded that no decision has been taken on where the future CCGS Diefenbaker will be built.

Coverage in the media

In December, the future contract award for the new Polar Icebreaker was covered by 10 news outlets, resulting in 10 articles (4 in English, 6 in French).

Overall, these articles highlight Chantier Davie Inc.’s capability to build the Polar Icebreaker and to deliver the vessel in a timely manner, as well as the potential for this build contract to help with Quebec’s post COVID-19 economic recovery. Several outlets adopt an editorial perspective on the subject matter, taking a firm stand for Chantier Davie Inc., and denouncing the prospect of political gains as motive behind the possibility of awarding VSY the Polar Icebreaker build contract again. Likewise, several article either call for, or cite individuals calling for the federal government’s support to Chantier Davie Inc.

Chantier Davie Inc.’s capability to build the Polar Icebreaker and to deliver the vessel in a timely manner:

In an interview given to JOURNAL DE QUÉBEC, Chantier Davie Inc.’s spokesperson for Chantier Davie Canada Suppliers Association, Pierre Drapeau, says that, according to him, “Davie could start the tenders as early as next week if the government chooses them.” The article also cites M. Drapeau saying “it makes no sense for [VSY] to build the ship after the contract was first withdrawn in August 2019 by Ottawa.”

In an interview given to LA PRESSE, Chantier Davie Inc.’s president, James Davies, insists on Davie’s capacity to welcome such a big project, citing the shipyard’s recently launched National Icebreaking Centre and its status as the largest shipyard in Canada as assets. When pressed on the matter regarding Chantier Davie Inc.’s “exclusion” from the NSS in the 2011 umbrella process and its impacts on the shipyard, M. Davies insists on Chantier Davie Inc.’s recovery since the inception of the NSS, adding that Chantier Davie Inc. will soon be recognized as an official partner under the NSS. He also states that “the federal government saw that the two yards in Vancouver and Halifax would not be able to deliver all orders on time [because] they don't have the operational capabilities that [Chantier Davie Inc.] has.”

Political gains

Some articles state that political motives are behind the potential decision to favor VSY over Chantier Davie Inc. for the Polar Incebreaker build contract.

For instance, LE SOLEIL states that “apparently, the Trudeau government calculates that it pays more to invest in British Columbia, even though it is more expensive and inefficient, than in Canada's largest shipyard, which has the “misfortune” of being in Quebec.”

In an open letter published in LE JOURNAL DE LÉVIS, Ann Gingras, president of the Conseil central de Québec–Chaudière-Appalaches for the Confédération des syndicats nationaux (CSN) calls upon the Trudeau government to “resist [VSY]’s lobbying”, stating that VSY “has a lot of nerve to claim once again a contract they lost.” The letter also affirms that the situation is a “farce”, and that by awarding the Polar Icebreaker build contract to Chantier Davie Inc. “the Trudeau government could finally repair the historic injustice suffered by the Lévis shipyard,” referring to Chantier Davie Inc. not becoming a strategic partner under the NSS in 2011.

Economic recovery

Other articles highlight the importance of the Polar Icebreaker build contract for Quebec’s economic recovery in the wake of the COVID-19 pandemic.

RADIO-CANADA and CBC cite Quebec Prime Minister François Legault, who urged the federal government via his Twitter account to “recognize the importance of the Davie shipyard for the economy of Quebec and Canada, and [to] quickly confirm that the contract will be awarded to Davie.”

In the same line of thought, the CISION article highlights findings from a Deloitte LLP in Canada research on Chantier Davie Inc.’s activities and their potential future economic and social impacts on Québec and Canada. The outlet speaks favorably to the prospect of Chantier Davie Inc. getting awarded the Polar Icebreaker build contract, which, they state, “would also directly impact Canada's recovery from the COVID-induced recession.”

Social media

PSPC

Prior to these articles, PSPC published in October 2020 an informational series of social media posts to highlight the Advance Contract Award Notice (ACAN) signaling Canada’s intention to award a contract to Chantier Davie Inc. for maintenance work on the CCGS Louis S. St-Laurent.

Chantier Davie Inc.

Chantier Davie Inc. has been very active on social media throughout December 2020 to showcase its intention to obtain the build contract for the Polar Icebreaker, publishing links to the LA PRESSE interview with James Davies and the CISION article on the Deloitte LLP in Canada research.

The shipyard also amplified messages published by political figures such as Quebec’s Prime Minister François Legault and NDP's Quebec lieutenant Alexandre Boulerice, which urged the federal government to consider Chantier Davie Inc. for the Polar Icebreaker build contract.

On December 7, 2020, Chantier Davie Inc. produced a two-minute video depicting VSY’s inability to meet deadlines and budgets on other shipbuilding projects and stating that thanks to Chantier Davie Inc., “the Polar will now be built by 2,500 Canadians at Davie’s National Icebreaking Center.” The video, produced in both English and French, generated approximately 34,000 views on TwitterFootnote 2.

The shipyard also promoted its National Icebreaking Centre and the completion of conversion work and delivery of medium interim icebreaker CCGS Jean Goodwill to the CCG.

Articles

  1. Vouloir acheter des sièges dans l’ouest au détriment du Chantier Davie (LE SOLEIL) 2020-12-08
  2. Le Québec au cœur d’une bataille politique entourant le futur brise-glace polaire (RADIO-CANADA) 2020-12-09
  3. Davie met la pression pour un brise-glace (JOURNAL DE QUÉBEC) 2020-12-06
  4. Un brise-glace au potentiel immense (LA PRESSE) 2020-12-15
  5. Lettre ouverte - Un choix s’impose pour la construction du Diefenbaker : la Davie (LE JOURNAL DE LÉVIS) 2020-12-10
  6. Federal cabinet, provinces engage in tug-of-war over polar icebreaker contract (CBC) 2020-12-09
  7. Davie's Economic Impact Can Grow Substantially Over The Next Two Decades, Major Study Finds (CISION) 2020-12-14
  8. Quebec at the heart of a political battle surrounding the future polar icebreaker (THE TIMES HUB) 2020-12-09
  9. Serco Joins Forces with Davie on its Polar Icebreaker Program (GLOBAL BANKING AND FINANCE) – 2020-12-15
  10. Des élus du Québec se mobilisent en faveur de la construction du brise-glace polaire par Chantier Davie Canada (RÉSEAU INFORMATION MUNICIPALE) – 2020-12-16

Preparation

Prepared by
Morgane Robert- Ouellet
Highest level of approval
Approved by: Nicolas Boucher
Key Contact
Dave Hatherall Martin Desnoyers

Government of Canada awards contract for in-service support for Halifax-class combat systems

November 6, 2020

Context

On November 6, 2020, the Government of Canada announced that it had awarded a contract to General Dynamics Mission Systems–Canada, from Ottawa, Ontario, for in-service support on 6 Halifax-class combat systems (HCCS), valued at $182 million (including taxes) over six years.

The HCCS are an integral component of the entire fleet of Halifax-class ships and will require in- service support until the arrival of the Canadian Surface Combatants.

Although no negative press was expected, proactive communications messages were developed to address any media question following the contract award announcement.

Background

The Halifax-class frigates monitor and control Canadian waters, defend Canada’s sovereignty, facilitate large-scale search and rescue activities, and provide emergency assistance when needed. Introduced into service in the 1990s, the Canadian-built Halifax-class frigates were recently modernized to remain operationally effective and relevant until the Canadian Surface Combatants enter into service.

The Canadian Surface Combatants will replace the Halifax-class frigates and the retired Iroquois-class destroyers. With them, the RCN 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.

In the summer of 2019, contracts were awarded to Seaspan Victoria Shipyards Limited (British Columbia), Irving Shipbuilding Inc. (Nova Scotia) and Chantier Davie (Quebec) to carry out maintenance work on the first group of Canada’s Halifax-class frigates. In June 2020, An in- service support (ISS) contract was awarded to Fleetway Inc. to provide a full range of technical data management and systems engineering support services for the RCN’s fleet of Halifax-class ships of the RCN.

Media Analysis

Media calls

PSPC didn’t receive media calls related to this announcement.

Coverage in the media

The announcement of the contract award for HCCS ISS was covered by eight news outlets, resulting in eight articles (seven in English, one bilingual).

All outlets reported factually on the announcement, mainly repeating what the news release stated. None took an editorial perspective on the subject matter.

Two articles, published by Naval Technology and Sea Power Magazine, quoted General Dynamics Mission Systems–International vice-president and general manager David Ibbetson, saying that “General Dynamics has a long and proud history of working closely with the Canadian Armed Forces and the Royal Canadian Navy, building on 30 years of support to the Halifax-class ships. With this contract, we are proud to maintain technology-driven careers from Halifax to Ottawa and Victoria for years to come.”

One article published by Shepard News is subscription-based and cannot be reviewed for the purpose of this exercise.

Social media

PSPC promoted the HCCS ISS contract announcement on its Facebook, LinkedIn and Twitter channels.

Four original PSPC posts were published throughout the campaign, including two on Twitter, one on Facebook, and one on LinkedIn. PSPC also amplified one post from Commander of the RCN’s Twitter account, and liked related tweets from Canadian Shipbuilders and General Dynamics Mission Systems–Canada.

Overall response in social media was positive. The posts were amplified by both the marine industry and individual accounts.

All posts performed well, generating a total of 44.8K impressions across platforms. They were also shared 79 times and garnered 569 likes, as well 225 link clicks.

A review of the posts’ performance is attached.

Articles

  1. Ottawa-based firm reels in $182M deal with Royal Canadian Navy(OTTAWA BUSINESS JOURNAL) 2020-11-06
  2. Canada awards contract support to General Dynamics for 6 Canadian Navy Halifax-class frigates combat systems(NAVY RECOGNITION) 2020-11-08
  3. GDMS Canada Wins Contract For Support Of Halifax-Class Combat Systems (NAVAL NEWS) 2020-11-07
  4. General Dynamics supports combat systems on Halifax class(SHEPARD NEWS) 2020-11-09
  5. Ottawa awards contract for in-service support for Halifax-class combat systems(THE CHRONICLE HERALD) 2020-11-06
  6. Le gouvernement du Canada attribue un contrat pour le soutien en service des systèmes de combat des navires de la classe Halifax (CISION) 2020-11-06
  7. General Dynamics wins Canadian Navy’s HCCS ISS contract (NAVAL TECHNOLOGY) 2020-11-09
  8. General Dynamics Tapped by Canadian Navy for In-Service Support Work (SEA POWER MAGAZINE) 2020-11-09

Government of Canada awards contract for the construction of joint support ships (JSS) for Royal Canadian Navy to Seaspan’s Vancouver Shipyards

June 15, 2020

Context

On June 15, 2020, the Government of Canada announced that it had taken an important step toward delivering the Royal Canadian Navy’s (RCN) future fleet, by awarding a performance- based contract to Seaspan’s Vancouver Shipyards for the full construction of two joint support ships (JSS), valued at $2.4 billion (including taxes).

The JSS will deliver fuel and other vital supplies to vessels at sea, offer medical and dental services, and provide facilities for helicopter maintenance repair. The presence of replenishment ships increases the range and endurance of operations at sea, allowing Canadian combat ships to remain at sea for significant periods of time without going to shore for resupply.

Background

As outlined in Canada’s defense policy, Strong, Secure, Engaged, the Government of Canada has committed to acquiring two JSS designated as the Protecteur-class to replace the RCN’s decommissioned auxiliary oiler replenishment vessels. This project is part of a broader effort to revitalize the RCN’s surface fleet of ships.

The design contract for the JSS project was awarded in February 2017, and early build construction began in June 2018. The first JSS is expected to be delivered in 2023, and the second in 2025.

Media Analysis

Media calls

PSPC received one media call related to this announcement from the Ottawa Citizen.

The reporter’s questions pertained to the impacts of the project’s cost increases on taxpayers, and whether the increase was “a reflection of the poor handling of tax dollars or lack of experience on the part of those overseeing this project.” The request also included a question on whether “actions [had] been taken against the government officials in PSPC or DND who misjudged the cost of this project.”

PSPC and DND both developed responses to the reporter’s questions. Both departments responded that they “reject any suggestion of “poor” fiscal management” and that, “as with any large-scale procurement project, all project values are best estimates that are based on the data and figures available at the time.” PSPC also mentioned that they “are confident this updated project budget accurately reflects the current value for the construction of these ships.” Regarding the question on possible punitive actions against PSPC and DND officials, DND responded that “cost estimates were not “misjudged”, nor has there been any reason for such action.”

Media interview

On June 15, 2020, PSPC’s Defense Marine Procurement ADM, André Filion, and his DND counterpart Troy Crosby, participated in an interview with Defence analyst David Perry of the Canadian Global Affairs Institute.

The interview was cordial and business driven, and mainly focused on confirming the structure of the JSS contract, its build schedule, and its design. ADM Crosby indicated that the cost increase was linked to design changes and additions to the vessels.

Coverage in the media

The announcement of the contract award for the construction of two JSS to Seaspan’s Vancouver Shipyards was covered by various news outlets, resulting in eleven articles (nine in English and two in French).

Seven outlets reported factually and positively on the announcement. CBC underlined the Government of Canada’s commitment to the National Shipbuilding Strategy (NSS), while North Shore News cited this milestone as “a significant one” for Seaspan, one that will stimulate the local economy by generating over 1,000 jobs.

Four articles were more critical of the announcement, emphasizing the continued increase in costs related to the JSS. Tricity News and La Presse deplored “yet another cost increase”, with the Liberal government “playing down the costs increase to the support ships, […], with senior ministers touting the importance of the vessels to the Royal Canadian Navy and the jobs that the project is creating in Vancouver and elsewhere.” 45e Nord, a francophone news outlet, reported that since Seaspan was chosen as a strategic supplier under the NSS in 2011, the shipyard has accumulated “cost overruns and delays.” (Free translation)

One article by Net News Ledger noted in their title that the JSS contract award to Seaspan was “good news for Thunder Bay.” Although not specifically noted, the article seems to suggest that the Ontario-based shipyard could benefit from the JSS contract, given their recent alliance with Seaspan Shipyards for the Polar Icebreaker contract. However linking the two distinct announcements may be confusing to readers.

Social media

PSPC promoted the JSS contract announcement on its Facebook, LinkedIn and Twitter channels.

Six original PSPC posts were published throughout the campaign, including four on Twitter, and two on Facebook. PSPC also amplified six posts from the Canadian Armed Forces, including two on LinkedIn, two on Twitter, and two on Facebook.

All posts performed well, generating a total 30,456 impressions across platforms. They were also shared 61 times and garnered 224 likes, as well 470 link clicks.

A review of the most performant posts is attached.

Articles

  1. Canada awards contract to Seaspan Vancouver to build two joint support ships (NAVY RECOGNITION) 2020-06-16
  2. Good News for Thunder Bay as Shipbuilding Contract Awarded (James Murray, NET NEWS LEDGER) 2020-06-16
  3. Canada awards contract for construction of joint support ships for Royal Canadian Navy (Martin Manaranche, NAVAL NEWS) 2020-06-16
  4. Canada to pay $4.1B for Navy support ships in latest cost increase (The Canadian Press, TRICITY NEWS) 2020-06-15
  5. Le contrat pour deux navires de la Marine atteint maintenant 4,1 milliards (Lee Berthiaume, LA PRESSE) 2020-06-15
  6. Ottawa awards $2.4B contract to finish building navy's supply ships (Murray Brewster, CBC) 2020-06-15
  7. Canada to pay another $700M for Navy support ships in latest cost increase (NATIONAL POST) 2020-06-15
  8. Coût total du projet des deux ravitailleurs de la Marine royale canadienne: une hausse de 1,5 milliards $ (45E NORD) 2020-06-15
  9. Seaspan lands $2.4-billion joint support ship contract (Jane Seyd, NORTH SHORE NEWS) 2020-06-15
  10. Seaspan awarded a $2.4B contract for RCN joint support ships (CANADIAN MANUFACTURING) 2002-06-15
  11. Vancouver Shipyards awarded CAD 2.4 billion Joint Support Ship contract (Nick Blenkey, MARINELOG) 2020-06-15

Page details

Date modified: