The government of Canada has announced the decision to combine fleet support contracts for two new ship classes to be built for the Royal Canadian Navy into a single one worth CAD$5 billion.
Minister of Public Services and Procurement Judy M. Foote on Thursday launched an open competition to provide in-service support, including refit, repair and maintenance and training, for the Arctic Offshore Patrol Ships (AOPS) and Joint Support Ships (JSS).
The government said this contract would provide the best value to Canadian taxpayers, while supporting Canada’s shipbuilding industry.
Combining the contracts for the AOPS and JSS In-Service Support (AJISS) under a single contractor will benefit industry by increasing workforce stability and benefit Canadians by reducing costs through economies of scale, the government reasoned.
The AJISS contract will include an initial service period of 8 years, with options to extend services up to 35 years under an open and competitive process.
Up to six Arctic Offshore Patrol Ships are being built by Irving Shipbuilding with delivery of the first vessel to the Royal Canadian Navy is scheduled for 2018.
Seaspan’s Vancouver Shipyards will build two Joint Support Ships first of which is scheduled to be delivered in 2020/2021.
Judy M. Foote, Minister of Public Services and Procurement, said: “The Arctic Offshore Patrol Ships and Joint Support Ships In-Service Support contract will provide work for the Canadian marine industry for the next 35 years. Our Government is creating stable middle-class jobs and generating economic growth from coast to coast to coast. At the same time, we are seeking new ways to make procurement work better for businesses and Canadians, in this case by having one support contract for both ships.”