Hamilton, Ontario
18 September 2014
The Government of Canada is committed to building ships for the Royal Canadian Navy (RCN) and Canadian Coast Guard (CCG) in Canada, and to supporting the Canadian shipbuilding industry and revitalizing Canadian shipyards. The National Shipbuilding Procurement Strategy (NSPS) – the largest procurement sourcing arrangement in Canadian history – will create thousands of high–value jobs across Canada and will have significant economic benefits for shipbuilding and related industries. Through this strategy, Canada will replace, and in some cases, enhance the capability of the current surface fleets of the RCN and the CCG.
On June 3, 2010, the Government of Canada announced NSPS, the largest procurement sourcing arrangement in Canadian history. Through the implementation of this strategy, Canada will enhance and replace the current surface fleets of the RCN and the CCG, which are coming to the end of their operational lives.
In February 2012, umbrella agreements were signed with Irving Shipbuilding Inc. and Vancouver Shipyards Co. Ltd. The umbrella agreements chart the course for contracts for construction of Canada’s combat and non–combat surface fleets under the NSPS.
On July 10, 2012, the Government announced the awarding of a $9.3 million preliminary contract to Irving Shipbuilding Inc. Within this preliminary contract, Irving Shipbuilding Inc. reviewed the existing Arctic/Offshore Patrol Ships (AOPS) design and specifications, prepared an execution strategy, and delivered a proposal detailing the scope and cost of the subsequent definition contract.
On March 7, 2013, a definition contract with Irving Shipbuilding Inc. was signed. The definition contract will last 30 months, and, with it, Irving Shipbuilding Inc. will refine and complete the AOPS design to a production–ready state. The total potential value of the contract is up to an estimated $288 million. The definition contract is a task–based contract divided into seven work packages (or tasks) that could be awarded. Six of the tasks have been authorized for a total value of $249 million to date. This contract will be followed by a construction contract in 2015, and they are on track to start cutting steel in 2015. Delivery of the first AOPS is currently expected for 2018.
The current through–life cost estimate for the AOPS project is $8.6 billion. This includes the acquisition budget of $3.1 billion for ships, jetty infrastructure, and project management. There is also $5.5 billion in projected personnel, operations, and maintenance costs for the ships over their planned 25 year operational life.
The AOPS project will deliver a class of ice–capable offshore patrol ships that will conduct sovereignty and surveillance operations in Canada’s Exclusive Economic Zone, including in the Arctic. The RCN will also use the AOPS to support other units of the Canadian Armed Forces in the conduct of maritime–related operations and to support other government departments in carrying out their mandates, as required. With the arrival of AOPS, Canada’s first deep water Arctic port at Nanisivik, Nunavut, will be operational, fulfilling a commitment from the 2013 Speech from the Throne. The AOPS project will also deliver associated jetty infrastructure in Esquimalt, British Columbia, and Halifax, Nova Scotia.
The AOPS will have a number of capabilities that will allow the ships to assist the RCN in carrying out missions. The following high–level draft requirements are examples of these capabilities, and will be studied and refined during the remainder of the project definition stage. AOPS will:
- Be capable of performing independent open ocean patrols on the east and west coasts of Canada, and in the Canadian Arctic during the navigable season;
- Be designed to a Polar Class 5 international ice classification standard, which will allow for operations in ice up to one metre in thickness;
- Be able to sustain operations for up to four months;
- Have a range of at least 6,800 nautical miles at a cruising speed of at least 14 knots, and a maximum speed of at least 17 knots;
- Have a sufficient command, control and communication capability to exchange real–time information with the Canadian Armed Forces Maritime Security Operations Centres;
- Carry gun armament;
- Remain operational for 25 years beyond Initial Operational Capability; and,
- Be capable of embarking and operating a variety of helicopter types up to and including the Royal Canadian Air Force’s Cyclone helicopter; be capable of embarking and deploying a variety of boat types to support activities such as boarding operations and transfer of cargo and personnel for ship–to–shore transfer, as well as arrangements for cargo and container storage to support the Canadian Armed Forces and other government department operations.
