Irving Pushes Forward with the Arctic/Offshore Patrol Ships

Irving Shipbuilding enters next stage of the Arctic/Offshore Patrol Ships (AOPS) project under Canada’s National Shipbuilding Procurement Strategy (NSPS).

The Honourable Diane Finley, Minister of Public Works and Government Services, along with the Honourable Peter MacKay, Minister of Justice and Regional Minister for Nova Scotia, have announced that two new tasks with a potential value of $53.5 million have been authorized for the construction of the AOPS under the NSPS. These two tasks are part of the definition contract awarded to Irving Shipbuilding Inc. in March 2013.

“Through the National Shipbuilding Procurement Strategy, the Harper Government is moving forward with our commitment to build ships in Canada in a timely and efficient manner and deliver the equipment that our men and women in uniform need to patrol our coasts and protect our sovereignty,” said the Honourable Diane Finley, Minister of Public Works and Government Services Canada. “By proceeding with these next two tasks under the definition contract, we will continue to refine and complete the ships’ design and production details before cutting steel, and in turn reducing risk and respecting taxpayers’ money.”

The two tasks authorized are the Engineering Design Phase 2 and the Project Implementation Proposal Development.

The Engineering Design Phase 2 task is the second of three design tasks in the definition contract that will mature the AOPS design. Irving, working closely with Canada, will further mature the AOPS design so that it meets all the contract design specification requirements. During this task, Irving will continue to work on 3 D modeling, which will ultimately be a key component of the design package from which the ships will be built.

“The next two tasks under the AOPS Definition Contract build on the first two tasks – taking us deeper into progressively more detail, and ultimately bringing more clarity and further reducing risk for Canada in the building of these vessels,” said Kevin McCoy, President, Irving Shipbuilding. “The significant investment we’re making in the modernization of Halifax Shipyard is driving much of the early economic impacts of NSPS. To date, we’ve committed approximately $190 million of our total $300 million planned investment, which is generating more than 1,700 full-time jobs and $104 million in employment income, $36 million local, provincial and federal taxes paid, and $78 million in consumer spending across Canada.”

During the Project Implementation Proposal Development task, the shipyard will prepare a fully developed build plan, which will include all activities related to material procurement and construction.

The Government of Canada is following through on its commitment to build ships in Canada. According to the Canadian Association of Defence and Security Industries, the NSPS will mean 15,000 long-term jobs and $2 billion annually in economic growth over 30 years.

The Honourable Rob Nicholson, Minister of National Defence said: “These two work packages represent another step further in the Government of Canada’s commitment to deliver this key fleet to Canada’s Navy. This will allow us to continue strengthening Canada’s multi-role, combat-capable defence force, while maximizing job creation, supporting Canadian technological innovation, and bolstering economic growth across the country.”

Quick Facts

• The definition contract is a task-based contract divided into seven work packages (or tasks) that will enable Irving Shipbuilding Inc. to have full designs and requirements established for the Arctic/Offshore Patrol Ships before building. Plans remain on track to cut steel and begin construction in 2015.
• Authorization of these work packages follows the initial two tasks announced on March 7, 2013. The total potential value of the definition contract, including all seven potential tasks, is estimated at $288 million.

The Honourable Peter MacKay, Minister of Justice and Regional Minister for Nova Scotia: “The economic growth and success of our region goes hand in hand with the development of the Arctic/Offshore Patrol Ships. Our Government’s shipbuilding strategy could result in the creation of 11,500 jobs right here at home, in Atlantic Canada. As Minister responsible for Nova Scotia, I am proud of the role our province can play in re-equipping our brave men and women in uniform with the tools they need, and look forward to seeing the many positive economic impacts of this project in our communities.”

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Press Release, February 7, 2014