For Immediate Release
January 23, 2015 – Halifax, N.S. – Public Works and Government Services Canada
The Honourable Diane Finley, Minister of Public Works and Government Services, along with the Honourable Peter MacKay, Regional Minister for Nova Scotia, today announced the awarding of the build contract to Irving Shipbuilding Inc. for the construction of six Arctic Offshore Patrol Ships (AOPS) as part of the National Shipbuilding Procurement Strategy (NSPS). This contract, valued at $2.3 billion, marks the start of the construction phase under the NSPS.
The contract has been designed to ensure best value for taxpayers and sets out the plan for the delivery of six ships within a ceiling price.
The AOPS build contract will sustain approximately 1,000 jobs at Irving Shipbuilding as well as many jobs at suppliers across Canada. For example, today, Member of Parliament Bryan Hayes highlighted that the majority (60 per cent) of steel plate for the first AOPS will be produced at the Essar Steel Algoma rolling mill in his riding of Sault Ste. Marie in Ontario. To date, 197 companies in Canada have already benefited from NSPS work.
Construction of an initial block for the first AOPS is scheduled for the summer, while full production will commence in September 2015. Delivery of the first HMCS Harry DeWolf-class ship is expected in 2018.
It was also confirmed that Irving Shipbuilding will be the prime contractor for the Canadian Surface Combatant project. As outlined in the NSPS Request for Proposals and the resulting umbrella agreement with the selected shipyards, Canada retains the right to determine if the shipyard will be designated as the prime contractor. After discussions with industry and a review by an independent third party, it was determined that Irving is best positioned to manage the contracts associated with the three decades of work to design and build these ships.
Office of the Honourable Diane Finley
Public Works and Government Services Canada
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