INDUSTRY NEWS

The Government of Canada officially announced today that it has officially selected Lockheed Martin Canada for the design of 15 new Canadian Surface Combatants that will be built at Irving Shipbuilding’s Halifax Shipyard.

The winning bid is based on the BAE Systems Type 26 Global Combat Ship. The Government of Canada and Irving Shipbuilding will work alongside Lockheed Martin Canada to customize the ship design to meet Canada’s requirements and to incorporate Canadian systems and equipment. This design work is expected to take three to four years to complete. Construction is set to begin in the early 2020s.

The initial contract with Irving Shipbuilding is valued at $185 million (including taxes) and will increase as design work progresses, resulting in significant benefits across the Canadian economy. The Industrial and Technological Benefits Policy will apply to this contract, ensuring that for every dollar the government puts into this contract, a dollar goes back into Canada’s economy.

“Our government is providing the Royal Canadian Navy with the ships it needs to do its important work of protecting Canadians," said the Honourable Carla Qualtrough, Minister of Public Services and Procurement Canada. "This procurement process for Canada’s future fleet of Canadian Surface Combatants was conducted in an open, fair and transparent manner that yielded the best ship design, and design team, to meet our needs for many years to come. Today’s announcement is yet another example of how the National Shipbuilding Strategy is supporting jobs and prosperity in communities across Canada, including here in Halifax.”

The National Shipbuilding Strategy is a long-term commitment to domestic shipbuilding that is about revitalizing and reinvigorating a world-class marine industry that equips the Royal Canadian Navy and the Canadian Coast Guard, supports Canadian technological innovation, creates well-paying stable employment and benefits the economic prosperity of Canada’s coasts and waterways.

Contracts awarded to date through the National Shipbuilding Strategy will contribute an estimated $10.9 billion of gross domestic product and create or maintain more than 10,000 jobs during the period of 2012 to 2022.

The Canadian Surface Combatant project is the largest, most complex procurement undertaken by the Government of Canada, with a total estimated project budget of $56 billion to $60 billion.

The ships will replace the Halifax-class frigates and the retired Iroquois-class destroyers. With them, the Royal Canadian Navy 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.

This entire procurement process has been overseen by an independent fairness monitor. Reports are available online.

The bid met all of Canada’s mandatory compliance requirements and has satisfied the due diligence process.

Construction on the Canadian Surface Combatants is scheduled to begin in the early 2020s.

Lockheed Martin Canada’s winning bid includes BAE Systems, CAE, L3 Technologies, MDA and Ultra Electronics Maritime Systems.