The Canadian Press
OTTAWA — Canada's national shipbuilding plan was rocked by yet another cost increase on Monday as the federal government revealed it will pay $4.1 billion for two long-overdue support ships for the navy — an increase of $1.5 billion from initial estimates.
The revelation came as Ottawa officially awarded a contract for the full construction of the two new Protecteur-class joint support ships to Vancouver's Seaspan shipyards, which has already started work on the first of the vessels.
Seaspan was first tapped to build the two ships and several coast guard vessels in 2011, at which point the supply ships were expected to cost $2.6 billion. The figure was later revised to $3.4 billion before another $700 million was added Monday.
The first of the support ships was to have been delivered by 2019. The government says it now doesn't expect the first ship before 2023, with the second due in 2025. Seaspan has been under contract to work on some parts of the first ship since June 2018.
The Royal Canadian Navy has been without a full-time support ship since 2014 and is currently relying on a converted civilian vessel that is being leased from Quebec's Chantier Davie shipyard to fill the gap.
That ship, the MV Asterix, was at the heart of the failed prosecution of retired vice-admiral Mark Norman.
The Liberal government was playing down the cost increase to the support ships on Monday, with senior ministers touting the importance of the vessels to the Royal Canadian Navy and the jobs that the project is creating in Vancouver and elsewhere.
"These new ships will provide a necessary capability for our Royal Canadian Navy, while providing significant economic benefits and jobs to Canadians, including thousands of jobs created or sustained," Defence Minister Harjit Sajjan said in a statement.
Yet the cost increase is the latest to hit the shipbuilding plan, which has been plagued by delays and budget increases for years. The plan is intended to recapitalize the majority of Canada's naval and coast guard fleets.
The entire plan to buy new warships to replace the navy's frigates and destroyers, several Arctic patrol vessels, a polar icebreaker and four science vessels for the Canadian Coast Guard in addition to the two support ships was pegged in 2011 at $35 billion.
The warships alone are now expected to cost at least $65 billion while the rest of the projects have either seen similar budget increases or their budgets are under review. The delivery schedules for the projects have also been pushed back numerous times.
Defence analyst David Perry of the Canadian Global Affairs Institute noted the new cost for the support ships is almost exactly how much Parliament's budget watchdog estimated following an analysis in 2013.
The Conservative government at the time refuted the parliamentary budget officer's estimate, with then-public works minister Rona Ambrose saying appropriate safeguards had been put into place to protect taxpayers.
"There's not a lot of detail in this today so it's hard to do a line by line," Perry said. "But superficially at least, the PBO's report from 2013 — which I recall being pooh-poohed pretty extensively — has held up pretty well."
Ottawa has in recent years produced update cost estimates for most of the vessels being built through the federal shipbuilding plan. However, budgets for the polar icebreaker and an offshore science vessel for the coast guard are still under review.
This report by The Canadian Press was first published June 15, 2020.
July 22, 2024 | Local, Land, Security
In a mid-summer interview, Petitpas Taylor caught up with iPolitics to discuss the most pressing issues in the veterans affairs file, Gen. Jennie Carignan becoming the first woman to lead the Canadian Armed Forces, and what she’s hearing from veterans across the country.
February 11, 2019 | Local, Naval
Canada's Combat Ship Team awarded contract for Canadian Surface Combatant OTTAWA, Ontario, Feb. 8, 2019 /PRNewswire/ -- Canadian technology, experience and infrastructure proved a winning combination for Canada's new fleet of surface combatants, as Canada's Combat Ship Team has been awarded the Canadian Surface Combatant design contract by Irving Shipbuilding. Irving Shipbuilding is the Canadian Surface Combatant prime contractor and will build all 15 ships at Halifax Shipyard. BAE Systems, CAE, Lockheed Martin Canada, L3 Technologies, MDA and Ultra Electronics partnered as Canada's Combat Ship Team to offer the Royal Canadian Navy the most advanced and modern warship design, the Type 26 Global Combat Ship, with high-tech platform innovations from prominent Canadian companies. The solution includes the internationally renowned and Canadian-developed combat management system, CMS 330. Bringing together a pan-Canadian team, the six companies have a uniquely skilled workforce and supply chain that are ready to begin work on the program today. Canada's Combat Ship team employs a combined 9,000 Canadians in 40 facilities from coast to coast and engages a Canadian supply chain of more than 4,000 small and medium sized enterprises. The team also secured several additional partners, including Rolls-Royce with its Canadian-designed and manufactured Mission Bay Handling System that will enable adaptability for the ships' operations. The Type 26 Global Combat Ship is a globally deployable multi-role warship that meets the distinctive mission requirements of the Royal Canadian Navy. It is enhanced with the team's collective Canadian naval expertise in combat system design, integration, training, logistics and program management. Purposely designed for high-end anti-submarine warfare and capable of performing a variety of missions around the world, the Type 26 is acoustically quiet, versatile, highly survivable, and allows for significant growth margins for future modernization. Canada's Combat Ship Team will deliver lasting economic benefits to Canadian industry through $17 billion in value proposition commitments in innovation across Canada's priority areas, including $2 billion in supplier development, $2 billionin research and development, and $200 million in advanced manufacturing. All of this contributes to a strong Canadian team - Canada's Home Team - ready to begin work on day one as promised. Quotes "We are delighted to be part of Canada's Combat Ship Team that has been awarded the Canadian Surface Combatant design contract. We believe that the Type 26 Global Combat Ship is the right solution for Canada, combining Canada's trusted Combat Management System with the world's most advanced warship design and bringing together a pan-Canadian team with a proven track record and current capability to perform complex defence projects." Anne Healey, General Manager - Canada, BAE Systems "As one of Canada's largest defence companies, we are proud to be part of this pan-Canadian team selected for the Canadian Surface Combatant program. We look forward to working closely with the Government of Canada, Irving Shipbuilding and the entire team to develop and deliver world-class capability that prepares the men and women of the Royal Canadian Navy for mission success." Joe Armstrong, Vice President and General Manager - Canada, CAE "This award is true validation of our Canadian capability. Our team is honoured, knowing that we offered the right solution for Canada and a proven ability to perform on complex defence programs. Lockheed Martin Canada is ready to continue serving as Canada's trusted Combat System Integrator, as it has for more than three decades, leveraging the innovation and talent here at home that will ultimately result in unprecedented economic outcome for Canada." Gary Fudge, Vice President and General Manager, Lockheed Martin Canada Rotary and Mission Systems "With over 2,200 Canadians working at L3 Technologies, we stand ready to deliver the latest EO/IR sensors, Integrated Platform Management, Integrated Communications and Torpedo Handling systems for the Canadian Surface Combatant. With proven capability on existing Canadian ships, L3 Technologies is proud to be on the team that will deliver the world leading performance expected by the Royal Canadian Navy." Rich Foster, Vice President, L3 Technologies Canada "As one of Canada's leading space and defence companies, MDA's participation in this project validates our expertise in electronics, antennas, signal processing, system engineering and mission software capabilities. In addition to providing world-class operational CSC capability to the Canadian Armed Forces, this project will be a catalyst for exporting more of our technology to the global naval market." Mike Greenley, Group President, MDA "As the underwater warfare lead on the CSC Home Team we are bringing to bear our considerable depth of anti-submarine warfare experience and capability, ensuring Canada's new ships will provide an enduring operational advantage to the Royal Canadian Navy. This work will generate high-tech jobs in Nova Scotia for sonar design and manufacturing and add to our existing significant export capability." Bernard Mills, President, Ultra Electronics Maritime Systems "Our experience and world-leading capability as providers of integrated power and propulsion solutions will deliver these warships with exceptional power through-life and the superb acoustic performance essential to anti-submarine warfare operations. Our Canadian-designed and manufactured Mission Bay Handling System will allow the essential flexibility and adaptability for future operations." Bruce Lennie, Vice President Business Development & Government Affairs, Rolls-Royce Canada About BAE Systems BAE Systems is a world leading shipbuilding, support and maintenance company with the skills and expertise to design, build, integrate, test, commission and support complex warships. BAE Systems has a strong track record of collaboration with customers and industrial partners worldwide to share technology and skills – helping countries grow their naval and industrial capabilities. Canadian industry is already integral to the Type 26 Global Combat Ship program. BAE Systems has operated in Canada for over 100 years partnering over a recent period with over 240 Canadian companies. BAE is active across Canada with equipment including Hawk trainer jets, Submarines, cyber security, Hybrid drive busses, and naval guns. About CAE As a globally-recognized training systems integrator, CAE is committed to providing defence and security forces world-class training centres, training services, and a comprehensive portfolio of training solutions. CAE is headquartered in Canada and has employees in 15 locations across the country. About Lockheed Martin Canada Lockheed Martin Canada has been Canada's trusted defence partner for nearly 80 years and has a proud legacy of providing innovative naval systems and sustainment solutions for Canada and abroad. For more than three decades, Lockheed Martin Canada has demonstrated its capability and commitment to the Royal Canadian Navy as the Prime Contractor and Combat System Integrator for the HALIFAX Class Frigates. The company employs approximately 1,000 employees at major facilities in Ottawa, Montreal, Halifax, Calgary, and Victoria, working on a wide range of major programs spanning the aerospace, defence and commercial sectors. About L3 Technologies A leading provider of communication, electronic and sensor systems used on military, homeland security and commercial platforms, L3 Technologies is also a prime contractor in aerospace systems, security and detection systems, and pilot training. With over 50 years of business operations in Canada, L3 has a strong Canadian presence with L3 MAPPS, L3 MAS, L3 Communication Systems Canada and L3 WESCAM that each have experience working on technologies and projects for the Royal Canadian Navy. About MDA MDA is an internationally recognized leader in space robotics, space sensors, satellite payloads, antennas and subsystems, surveillance and intelligence systems, defence and maritime systems, and geospatial radar imagery. MDA's extensive space expertise and heritage translates into mission-critical defence and commercial applications that include multi-platform command, control and surveillance systems, aeronautical information systems, land administration systems and terrestrial robotics. MDA is also a leading supplier of actionable mission-critical information and insights derived from multiple data sources. Founded in 1969, MDA is recognized as one of Canada's most successful technology ventures with locations in Richmond, Ottawa, Brampton, Montreal, Halifax and the United Kingdom. MDA has supported the Royal Canadian Navy for over two decades. About Ultra Electronics Based in Dartmouth, Nova Scotia, Ultra Electronics is a part of the Ultra Electronics Group, an international defense and aerospace company. Ultra Electronics has been delivering world-leading underwater warfare solutions to the defense market for 70 years. Ultra Electronics has been highly successful in transforming its research investment into the technologically-advanced underwater battlespace sensor systems that it delivers to both Royal Canadian Navy and internationally. Today, Ultra Electronics is recognized worldwide for its expertise in hull mounted sonar, towed active and passive arrays, sonar sensors, and underwater acoustics. About Rolls-Royce Rolls-Royce pioneers cutting edge technology to provide highly-efficient integrated power and propulsion solutions. Rolls-Royce has been established in Canada for over 70 years and today employs over 1500 Canadians at eight locations across six provinces. Rolls-Royce plays an active role in many of the world's major defence programs offering advanced system solutions to navies and coastguards. SOURCE Lockheed Martin https://news.lockheedmartin.com/2019-02-08-CSC-Home-Team-Celebrates-Canadian-Industry-Success
June 26, 2024 | Local, Land
On June 27, 2024, senior officials from National Defence, the Royal Canadian Navy, and Public Services and Procurement Canada, will hold a virtual technical briefing on the Canadian Surface Combatant (CSC) Project, in advance of the official beginning of construction the following day, on June 28, 2024 in Halifax, Nova Scotia.