Procurement – Navy

National Shipbuilding Strategy

Key Facts

Details

• 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.
• 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 National Shipbuilding Strategy Non-Combat Package, which includes the Joint Support Ships for the Royal Canadian Navy, science research vessels, and Multi-Purpose Vessels for the Canadian Coast Guard will be built by Vancouver Shipyards.
• The publicly available budget for the Joint Support Ships ($3.4 billion) is currently under review to reflect experience gained to date from the Offshore Fisheries Science Vessels and Arctic Offshore Patrol Ships projects.

Version 5; 2020-03-09 – Source: CoW Note on National Ship Building Strategy

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Canadian Surface Combatant

Key Facts

Details

• Canada’s new class of warship – the Canadian Surface Combatant – will replace both the Iroquois-class destroyers and the Halifax-class frigates, one for one. 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;
  • 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.
• Irving Shipbuilding has been selected as the prime contractor for the construction of the warships.
• In February 2019, the Government announced that Irving Shipbuilding had contracted Lockheed Martin Canada to provide the design and design team. The selected design for the future fleet is based on BAE Systems’ Type 26 ship design.
• Canada is now working with Irving Shipbuilding and Lockheed Martin Canada 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.

Version 5; 2020-02-26 – Source: QP Note on Canadian Surface Combatant

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Arctic and Offshore Patrol Ships

Key Facts

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.

Current Status

• The first Arctic and Offshore Patrol Ship is the first of its class. Production challenges, typically seen with a first-of-class vessel, delayed the delivery of the first ship from 2018 to 2020.
• The shipbuilder has learned lessons from the build of the first ship that will help ensure efficiencies in the construction of the subsequent ships. The schedules for these following ships will therefore be easier to plan.
• Out of the total of six ships, four are in various stages of production.

Version 5; 2020-03-09 – Source: Note on the Arctic and Offshore Patrol Ships, 2019-12

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Joint Support Ships

Key Facts

Details

• Public Service and Procurement Canada selected Seaspan’s Vancouver Shipyards as the prime contractor to build these vessels for the Navy.
• In 2013, after a rigorous interdepartmental selection based upon affordability, capability, and risk, National Defence selected a design for its Joint Support Ship project that offers the best value to Canada.
• The new 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.

Current Status

• In June 2018, Seaspan‘s Vancouver Shipyard started the construction of the first supply ship. It is expected to be delivered in 2023.

Cost

• The Joint Support Ship’s acquisition cost is being reviewed (public statements have placed the cost at a range between $3.4 -and $4.1 billion).
• An additional cost of approximately $5.5 billion includes personnel, operations, and maintenance over the 30 year lifespan of the vessels.

Version 5; 2020-03-09 – Source: QP Note on the Joint Support Ships

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Interim Supply Ships (IAOR)

Key Facts

Details

The Asterix

• The premature retirement of the Royal Canadian Navy’s remaining supply ship, in 2016, combined with the operational delivery dates of the new Joint Support Ships, in 2023-2025, has resulted in a capability gap.
• To help bridge this gap, in 2015, the Government of Canada entered into a Provision of Service Contract with Project Resolve Inc for the conversion of a commercial container ship into an interim supply vessel – the MV Asterix. The vessel commenced service in support of the Royal Canadian Navy on January 28, 2018.
• The MV Asterix is operated by Federal Fleet Services and is crewed by Canadian civilian mariners. A limited number of Canadian Armed Forces personnel are deployed as mission specialists.
• Since it became operational, the Asterix has supported numerous deployments and exercises at sea.

Request for the Obelix

• Davie Shipbuilding is making the case to convert a second commercial vessel – the Obelix. Furthermore, the Bloc Québécois and the Conservative Party of Canada are advocating for the procurement of a second interim supply ship from Davie.
• The Parliamentary Budget Officer estimated the cost of a second interim supply ship is $607 million. This costing was requested by the Conservative Party of Canada as part of its larger platform costing during the election period.

Version 5; 2020-02-24 – Source: QP Note on the Request for a Davie Shipyard Contract for the Obelix

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Canada’s Submarine Force

Key Facts

Details

• An unparalleled strategic asset, Canadian submarines deliver a world-class, force-multiplying deterrent effect as well as an unmatched sovereign defence and security capability. They do so by being capable of covertly monitoring evolving situations at home and abroad, as well as by factoring significantly as an option for relevant Canadian action – be it continuing to provide “indications and warning” or vital joint-targeting information, weapon delivery, or Special Operations Force insertion. Additionally, submarines provide critical, sovereign force protection capacity for our sea-based forces when required.
• When compared to the multi-billion dollar investment and time required to deliver a new submarine, the decision to modernize remains the most effective means of ensuring continued submarine operations for the Royal Canadian Navy into the 2030s.
• The Victoria-class Modernization project will provide the capability enhancements required to keep the submarines operationally relevant against evolving threats and the future operating environment.
• This project is currently in the options analysis stage which will identify best ways to implement the project and achieve capabilities.
• The Victoria-class Modernization project will focus primarily on enhancing three distinct capabilities:
  • Habitability – to improve habitability and deployment conditions onboard Victoria-Class submarines;
  • Joint Force Capability – position the Victoria-Class submarines to contribute meaningfully to joint operations ashore; and
  • Survivability – to ensure the survivability of the Victoria-Class submarines against an evolving complex threat in an ever changing battle space.
• The Victoria-class Modernization project will enhance the ability to operate in the environmentally sensitive regions such as the near Arctic.

Version 5.1; 2020-03-09 – Source: QP Note on Maintenance and Modernization of Canada’s Submarine Force

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