Update on Canada’s National Shipbuilding Procurement Strategy

Update on Canada's National Shipbuilding Procurement Strategy

Yesterday, the National Shipbuilding Procurement Strategy (NSPS) Secretariat held a technical briefing for media to provide an update on progress made since the signing of the umbrella agreements one year ago this month.

The Strategy was developed and is being implemented using the following five-phased approach:

  • Developing the strategy-Launched in summer 2009 with a Shipbuilding Forum, this phase involved industry consultations. It led to the announcement of the Strategy in June 2010;
  • Selecting the shipyards-A competitive process was launched in summer 2010 and completed on October 19, 2011;
  • Establishing the relationship-This phase is ongoing, but it achieved a major milestone with the signing of umbrella agreements with the shipyards in February 2012;
  • Preparing the yards and finalizing the designs-This is where we are today. The shipyards are undertaking the work required to be able to build Canada’s ships efficiently; and
  • Constructing the ships.

The NSPS is now in its fourth phase, with the designs for the first ships to be built being finalized. A “design-then-build” approach is being followed to ensure that the design work is completed before proceeding with construction. This lower-risk approach will improve the efficiency of the shipbuilding process. These two phases (design and construction) will be repeated throughout the duration of the Strategy

To date, Canada has negotiated and awarded a number of contracts with the shipyards and progress continues.

  • The selection process for the design services for the polar icebreaker concluded on November 17, 2011, with the announcement of a $10.8-million contract to STX Canada Marine Inc., of Vancouver, British Columbia.
  • In July 2012, a preliminary $9.3-million contract was awarded to Irving Shipbuilding Inc. to conduct a review of the existing Arctic/offshore patrol ships (AOPS) design and specifications and create an execution strategy for the AOPS project.
  • On August 20, 2012, the Government tested a scale model of its future polar icebreaker, the CCGS John G. Diefenbaker, in the world’s longest ice tank. This unique testing facility is located at the National Research Council’s Institute for Ocean Technology in St. John’s, Newfoundland and Labrador.
  • On February 21, 2013, the Government of Canada announced a $360-million investment to extend the life of the Canadian Coast Guard fleet, which will benefit the Canadian shipbuilding industry across the country and build on the Government’s commitment to supporting jobs and growth.
  • On February 22, 2013, a $13.2-million design definition contract for the new offshore fisheries science vessels (OFSV) was awarded to Vancouver Shipyards Co. Ltd. The contract is one of a series leading to the delivery of new ships for the Canadian Coast Guard, starting with the construction of the OFSVs in 2014.
  • Two other contracts with Vancouver Shipyards were also announced on February 22, 2013-an initial agreement valued at $1.4 million for the Royal Canadian Navy’s joint support ships, and a $1.1-million contract for the review of the polar icebreaker design.
  • Both Vancouver Shipyards and Irving Shipbuilding are undertaking significant infrastructure upgrades valued at almost $200 million and $300 million respectively. These upgrades are at no cost to the Government of Canada.

The Government is following through on its commitment to build ships in Canada. The NSPS will mean long-term jobs and economic growth for the country, stability for the industry, and vital equipment for our men and women in the Royal Canadian Navy and the Canadian Coast Guard.

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Press Release, February 28, 2013