Back to news

February 10, 2020 | Local, Naval

Irving to receive $58 million for 'minimal' changes to new Coast Guard ships

DAVID PUGLIESE, OTTAWA CITIZEN

Irving is receiving $58 million from taxpayers to make what the federal government calls minimal changes to an existing ship design so it can be used by the Canadian Coast Guard.

Irving is in the midst of building a fleet of six Arctic and Offshore Patrol Ships (AOPS) for the Royal Canadian Navy and will add two more in the production line for the coast guard. The addition of two ships for the coast guard, announced by the federal government in May, was supposed to be cost-effective as the design of the vessel was completed and the ships were in the process of being built.

But documents recently tabled in Parliament show the government entered into a $58-million contract with Irving for engineering design work on the AOPS that would ensure the coast guard's vessels “can meet regulatory and operational requirements.”

The coast guard has determined that only minimal modifications are required to the ships to meet its needs as well as any regulatory requirements, according to documents provided to Parliament as the result of a question from Conservative MP Lianne Rood.

“The modifications have been assessed as minimal as none of the identified modifications will impact major elements of the AOPS design and construction,” Bernadette Jordan, the minister of Fisheries, Oceans, and the Canadian Coast Guard, stated in her written response.

But critics are questioning why taxpayers are spending $58 million if the changes are so limited.

“That's a very expensive tweak,” said Aaron Wudrick, the federal director of the Canadian Taxpayers Federation. “We'd like see some clarity from the government on what could possibly justify such an increase in the price tag.”

Each AOPS is estimated to cost around $400 million. The coast guard originally looked at the AOPS in 2017-2018 but decided against acquiring the ship, industry representatives noted.

But the Liberal government announced in May 2019 that two AOPS would be bought for the coast guard. One of the benefits of the purchase is to prevent layoffs at Irving as there is expected to be a gap between when the shipyard finishes the navy's AOPS and when it starts working on replacements for the navy's frigates.

Tom Ormsby, director of communications for Irving, said the first step for the firm is to fully review the AOPS design and then confirm any modifications that are needed to be made for the coast guard.

“Once modifications have been agreed to, these changes must then be worked through and implemented into the design,” he noted. “While not making major changes that a first-in-class design would require, the Canadian Coast Guard has a different and critical mission, including the need for scientific laboratories for sampling and research, so each vessel is being tailored to suit the Canadian Coast Guard's unique and important role.”

The government only pays for actual costs incurred, he added.

Irving will also receive an additional $18.8 million to purchase some initial equipment for the vessels as well as reimbursement for project management.

The contract to Irving on the design changes was signed Nov. 1, 2019 and is to end March 31, 2021. Areas of change include modifications to the bridge layout and accommodations to meet Transport Canada requirements for a non-military crew, as well as changes to some areas to accommodate coast guard equipment and modifications to the deck, Jordan noted in her response to Parliament. The main portions of the ship, including the hull and propulsion systems, will remain unchanged, she added.

The AOPS program was launched by the Conservative government with a minimum of five ships for the navy. The Liberal government approved the construction of a sixth AOPS for the navy and two for the coast guard

But retired Liberal senator Colin Kenny, who served on the Senate defence committee, questions the value of the AOPS for either the navy or coast guard. Kenny noted he is also concerned about the engineering contract. “These changes shouldn't cost $58 million,” Kenny said. “I think it's questionable as to why we are even buying these ships.”

In 2017 the Senate Defence Committee raised concerns about the capabilities of the AOPS.

Among the issues identified by the committee was the slow speed of the AOPS and its limited ability to operate in ice-covered waters. “These limitations are troubling and raise the question of whether the taxpayers are receiving value for the monies spent,” the Senate report said.

The Department of National Defence expects the delivery of the first AOPS by the end of March although it acknowledges there is a possibility that may not happen. The delivery of the vessel has already been delayed a number of times.

The navy expects its last AOPS to be delivered by 2024. After the navy vessels are built, construction will begin on the AOPS for the coast guard, the federal government has said.

https://ottawacitizen.com/news/national/defence-watch/irving-to-receive-58-million-for-minimal-changes-to-new-coast-guard-ships

On the same subject

  • No icebreakers in federal government’s $15.7B plan for new coast-guard ships

    June 3, 2019 | Local, Naval

    No icebreakers in federal government’s $15.7B plan for new coast-guard ships

    By Lee Berthiaume, The Canadian Press OTTAWA — The Canadian Coast Guard's recent struggles resupplying northern communities and rescuing ice-jammed ferries appear set to continue despite Prime Minister Justin Trudeau's promise to spend $15.7 billion on "a complete fleet renewal." That's because none of the 18 vessels the government announced last week that it plans to buy will be an icebreaker, meaning the coast guard will be forced to continue relying on its existing icebreaker fleet for the foreseeable future. Many of those are nearing — or have already exceeded — their expected lifespans, which has resulted in breakdowns and other problems that have affected coast-guard operations, such as resupply runs and assisting ferries in winter. Federal procurement minister Carla Qualtrough acknowledged on the sidelines of the annual Cansec arms-trade show this week "there's definitely a capability gap on icebreakers," but wouldn't say when it would be addressed. Qualtrough instead indicated that any announcement on more ships for the coast guard would likely come after the government adds a third shipyard to the two that are already partners in the federal shipbuilding plan. "There's definitely more ships coming," she said on Thursday. "It will really be dependent on how long it takes the third yard to get itself ready to build the kind of ships we need." The search is expected to start in the coming weeks, but while many observers expect Davie Shipbuilding in Quebec City to emerge victorious, a senior government official maintained a decision is unlikely before October's election. The government's planned $15.7-billion investment unveiled last week includes two Arctic patrol ships to be built by Irving Shipbuilding in Halifax and 16 so-called multipurpose vessels from Seaspan Shipbuilding in Vancouver. But those vessels are what officials describe as "ice-capable," rather than icebreakers, meaning the coast guard will need to continue to rely on its existing fleet for many of its operations. The icebreaker fleet did receive a boost on Thursday, when the Canadian Coast Guard officially welcomed the CCGS Molly Kool to its ranks after several months of conversion work at Davie. The CCGS Molly Kool is the first of three second-hand icebreakers that Davie has sold to the government, which the coast guard has said it plans to use for the next 15 to 20 years to fill any gaps until replacements are built. But while the government is spending millions to refit its current icebreakers, which are on average 35 years old, and keep them running as long as possible, the question remains when those replacements will arrive. The only new icebreaker currently in the government's multibillion-dollar shipbuilding plan is the polar-class CCGS John G. Diefenbaker, which was expected in 2017 before various delays pushed it back to the next decade. "We haven't built a coast guard-designed icebreaker since 1983. That was the last time," said Rob Huebert, an expert on the coast guard at the University of Calgary. "And anything we have bought is usually second-hand from industry." The coast guard doesn't have clout in Ottawa, Huebert said, which has translated into a lack of long-term planning or investment by successive governments — except when there are political points to be scored. And while the addition of a third yard to the federal shipbuilding plan should mean icebreakers will follow soon after, Huebert said it is all ad hoc and will simply lead to the same problems down the road. "I get incensed by the fact that we do not have any form of a long-term coast-guard renewal for icebreakers." Documents obtained by The Canadian Press warned more than a third of the coast guard's 26 large vessels, including its icebreakers, had exceeded their expected lifespans — and that many wouldn't survive until replacements arrived. The fleet's advanced age was also already affecting the coast guard's ability to do its job, including reduced search-and-rescue coverage, ferry-service disruptions and cancelled resupply runs to Arctic and coastal communities. —Follow @leeberthiaume on Twitter Lee Berthiaume, The Canadian Press https://www.nationalnewswatch.com/2019/05/31/no-icebreakers-in-federal-governments-15-6b-plan-for-new-coast-guard-ships/#.XPFqzBZKiUl

  • Canadian warship shadowed Chinese vessel off Alaska last month, National Defence says | CBC News

    August 1, 2024 | Local, Naval

    Canadian warship shadowed Chinese vessel off Alaska last month, National Defence says | CBC News

    A Chinese polar research vessel was shadowed by a Canadian warship in the Bering Strait off Alaska a few weeks ago, the Department of National Defence acknowledged on Wednesday.

  • Feds award over $1 billion in contracts to shipyards to repair aging frigates

    July 19, 2019 | Local, Naval

    Feds award over $1 billion in contracts to shipyards to repair aging frigates

    By Marco Vigliotti *The headline has been updated to clarify that a contract has not yet been awarded to Irving Shipbuilding. Shipyards in Quebec and B.C. have won contracts collectively worth $1 billion to repair aging warships, with another contract for a Nova Scotia facility to be completed shortly, the federal government announced today. It's part of the government's promised $7.5 billion investment in maintaining 12 Halifax-class frigates for the Royal Canadian Navy until they are retired in the early 2040s. The five-year, $500-million contracts for Quebec's Chantier Davie and Seaspan Victoria Shipyards Limited were officially announced during concurrent ceremonies at the facilities, both of which featured ministers from the area. Public Services and Procurement Minister Carla Qualthrough, who represents a Vancouver-area riding, made the announcement at Seaspan's facility in Victoria (the Liberals hold no seats in the region). Families, Children and Social Development Minister Jean-Yves Duclos made the announcement at Davie's plant in Lévis, Que. He represents a riding across the St. Lawrence River in Quebec City. “This vital, long-term work demonstrates the government's continued commitment to supporting the women and men of the Royal Canadian Navy by providing them with the equipment they need to protect Canadian interests at home and abroad,” Qualthrough said in a statement. A similar deal with Irving Shipbuilding in Halifax is also in the works, according to Public Services and Procurement Canada (PSPC). The contracts guarantee at least three frigates to repair for each facility, with work expected to begin in 2020. In a statement, Conservative Leader Andrew Scheer said the shipbuilding announcement was nothing but “cynical electioneering.” “There are less than 100 days to the next election, and the Trudeau government is once again campaigning on the taxpayers' dime, trying to buy people's votes with their own money,” reads his statement. “While it is good to see shipbuilding work go to Davie, today's announcement is nothing but cynical electioneering from a government that will do anything and say anything to cling to power.” https://ipolitics.ca/2019/07/16/feds-award-over-1-billion-in-contracts-to-three-shipyards-to-repair-aging-frigates/

All news