For immediate release
GATINEAU, Quebec, July 3, 2008 – The Honourable Christian Paradis, Minister of Public Works and Government Services Canada (PWGSC) and Secretary of State (Agriculture), and the Honourable Peter Gordon MacKay, Minister of National Defence and Minister of the Atlantic Canada Opportunities Agency, today announced that the Government of Canada has awarded a contract to the Canadian Submarine Management Group (CSMG) to provide long-term in-service support for the four Victoria Class submarines.
"This deal will benefit not only the Navy, but all Canadian taxpayers," said Minister Paradis. "Consistent with other projects, this contract allows the government to ensure best value while providing this needed service."
"Canada's submarines fill a strategic operational role protecting Canada's sovereignty along vast coastlines and in working with our Allies," said Minister MacKay. "This contract ensures that our vital assets are maintained and will be ready for service for years to come."
As a result of a July 2006 competitive Request for Proposal that was issued on MERX™, the government's electronic tendering system, CSMG received the highest score based on their technical expertise. The government then negotiated the details of the contract with CSMG to ensure best value for Canadians.
The $370M contract is for five years and covers: project management oversight to plan and organize the submarine refits; material acquisition; repair and overhaul; engineering services; and provides for scheduled refit and maintenance activities. Subject to continuing satisfactory performance of the contractor, a number of extension options can be exercised to expand this work to provide for an additional 10 years of submarine fleet support that could bring the contract to a potential total value of $1.5B.
CSMG has committed to achieving industrial and regional benefits amounting to 100 percent of the contract value.
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For further information, please contact:
Mark Quinlan
Director of Communications
Office of Minister Paradis
819-997-5421
Jay Paxton
Press Secretary
Office of Minister MacKay
613-996-3100
Media Relations
Public Works and Government Services Canada
819-956-2315
Media Liaison Office
Department of National Defence
613-996-2353/2354
PWGSC news releases are also available on our Internet site at: www.tpsgc-pwgsc.gc.ca/medias-media/index-eng.html.
