Back to news

May 9, 2019 | Local, Naval

Federal bureaucrats considering proposal to award Irving contracts for more Arctic coast guard ships

David Pugliese, Ottawa Citizen

Federal officials are setting the stage to award Irving Shipbuilding contracts to build two more Arctic and offshore patrol ships but the vessels will be delivered to the Canadian Coast Guard instead of the navy.

Irving has been warning the Liberal government it might have to lay off employees at its Halifax shipyard if it doesn't get more shipbuilding work. Industry and defence sources say to deal with that issue a proposal is being put together that would see the construction of two more Arctic and Offshore Patrol Ships, known as AOPS.

Irving is currently building six AOPS for the Royal Canadian Navy.

But under this new plan, described by government officials as being at a “pre-decision” level, the vessels would be turned over to the coast guard.

The additional ships would help head off any layoffs at Irving and allow the Liberal government to head into the federal election in the fall claiming it was delivering on its promise to rebuild the coast guard.

The Liberals have yet to sign off on the plan, the sources added.

Ashley Michnowski, a spokeswoman for Procurement Minister Carla Qualtrough, said the national shipbuilding strategy or NSS is designed as a “made-in-Canada plan” to meet federal shipbuilding requirements. “Additional AOPS are currently not included in the NSS,” she added.

Irving Shipbuilding did not respond to a request for comment.

The NSS was supposed to prevent the boom and bust in the country's shipbuilding industry by providing Seaspan on the West Coast and Irving on the East Coast with continual work.

But that hasn't happened. Even though the government is proceeding with the ships outlined in the NSS, both Seaspan and Irving have complained they might have to let employees go because of gaps in construction schedules.

Irving has said it needs addition work to deal with a downturn that comes after the end of construction of AOPS and the start of work on a new fleet of surface combatant ships.

The Arctic and Offshore Patrol Ships project was for the construction of five vessels. A sixth ship would be built only if Irving could find savings in the construction process, according to the federal government. That, however, didn't happen.

In November the Liberal government announced it would award Irving a contract for a sixth AOPS as part of its efforts to stop layoffs. That $800-million initiative is double the usual cost of a single AOPS as there are hefty fees associated with stretching out the production of the fleet.

It is unclear how much extra a plan to build two more AOPS would cost.

If the plan does proceed there would have to be changes made to the design of the ship as the AOPS are outfitted with weapons and a combat management system for the navy.

The AOPS program has made headlines over the years. The first Arctic Offshore Patrol Ship was supposed to be delivered in 2013 but the program has faced delays, and it is now expected to be delivered to the navy this summer.

In March, Postmedia sent Procurement Canada questions about potential issues with welds on the ships. But the department immediately warned Irving that the news organization was asking questions. Department officials also provided Irving with personal information about the journalist inquiring about the welds.

Procurement Canada never did answer the questions but a short time later Irving Shipbuilding threatened a lawsuit against Postmedia if an article was published claiming there were substantial problems with welds on the ships.

The Department of National Defence later confirmed to the news chain there were issues with welds but they were minor.

https://nationalpost.com/news/federal-bureaucrats-considering-proposal-to-award-irving-contracts-for-more-arctic-coast-guard-ships

On the same subject

  • ViaSat’s KOR-24A STT first small radio to pass testing for Canada’s ASCCM

    September 18, 2017 | Local, Aerospace, C4ISR

    ViaSat’s KOR-24A STT first small radio to pass testing for Canada’s ASCCM

    ViaSat has announced that its two-channel KOR-24A Small Tactical Terminal (STT) is the first small form factor, software-defined Link 16 radio to successfully pass live radio frequency (RF) range testing for the Canadian Army's Air Space Coordination Centre Modernization (ASCCM) project. http://www.newswire.ca/news-releases/viasats-small-tactical-terminal-becomes-first-link-16-radio-to-successfully-pass-live-rf-testing-for-the-canadian-armys-air-space-coordination-centre-modernization-project-642731233.html

  • New IDEaS Challenges

    November 6, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

    New IDEaS Challenges

    New IDEaS Challenges Our colleagues at The Department of National Defence's Innovation for Defence Excellence and Security (IDEaS) program have launched their 4th Call for Proposals! Check out their website to learn how you can support our troops with your logistics solutions, new armour designs and visual and data security. Here are their current opportunities: Essential Deliveries: Getting Vital Supplies to Troops Using Autonomous Vehicles Armour Up! Modular Lightweight Armour for Land Vehicles It's not just Noise – Innovative Tools for Acoustic Sensor Operators Better than Meets the Eye: Reliable Object Detection Amongst the Waves Making Data Make Sense: Real-time Data Analysis for Rapid Decision Making Knot Vulnerable - Locking Down Cybersecurity on Naval Vessels Navigating Your Next Chapter – The Transition Back to Civilian Applications must be submitted by December 10th, 2020. Learn more

  • ANALYSIS | The U.S. needs a few good allies. Does it still need Canada? | CBC News

    September 22, 2024 | Local, Security

    ANALYSIS | The U.S. needs a few good allies. Does it still need Canada? | CBC News

    Eight decades after the United States extended its security umbrella to cover Canada, the alliance is being undermined by Washington's growing exasperation with Ottawa's attitude toward defence spending.

All news