The Canadian government has finalized contracts for the maintenance of Royal Canadian Navy Halifax-class frigates with two of three shipbuilders set to share work on a deal worth C$7 billion over a span of 20 years.
The government said it has awarded $500 million contracts to Chantier Davie and Seaspan Victoria Shipyards Limited to carry out maintenance work on the first group of frigates.
The third contract with Irving Shipbuilding is currently being finalized, it was noted.
Chantier and Seaspan were awarded the contracts following a November 2018 decision to split work on the ships between three shipyards. The contract had been held by Irving Shipbuilding since 2011.
These initial five-year arrangements guarantee a minimum of 3 frigates for each shipyard, with work planned to begin in the early 2020s. These contracts are expected to rise in value as additional work packages are added.
“This future contract will be the largest federal contract awarded to Davie to date. I am proud to know that Davie workers will be able to use their skills and talents to ensure that the men and women of the Royal Canadian Navy have the ships they need to carry out their important operations at home and abroad,” Jean-Yves Duclos Minister of Families, Children and Social Development, commented.