News Column

National Shipbuilding Procurement Strategy Update

Feb 27 2013 12:00AM

Marketwire

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OTTAWA, ONTARIO -- (Marketwire) -- 02/27/13 -- Today, the National Shipbuilding Procurement Strategy (NSPS) Secretariat held a technical briefing for media to provide an update on progress made since the signing of the umbrella agreements one year ago this month.

The Strategy was developed and is being implemented using the following five-phased approach:

--  Developing the strategy-Launched in summer 2009 with a Shipbuilding    Forum, this phase involved industry consultations. It led to the    announcement of the Strategy in June 2010;--  Selecting the shipyards-A competitive process was launched in summer    2010 and completed on October 19, 2011;--  Establishing the relationship-This phase is ongoing, but it achieved a    major milestone with the signing of umbrella agreements with the    shipyards in February 2012;--  Preparing the yards and finalizing the designs-This is where we are    today. The shipyards are undertaking the work required to be able to    build Canada's ships efficiently; and--  Constructing the ships.


The NSPS is now in its fourth phase, with the designs for the first ships to be built being finalized. A "design-then-build" approach is being followed to ensure that the design work is completed before proceeding with construction. This lower-risk approach will improve the efficiency of the shipbuilding process. These two phases (design and construction) will be repeated throughout the duration of the Strategy.

To date, Canada has negotiated and awarded a number of contracts with the shipyards and progress continues.

--  The selection process for the design services for the polar icebreaker    concluded on November 17, 2011, with the announcement of a $10.8-million    contract to STX Canada Marine Inc., of Vancouver, British Columbia.--  In July 2012, a preliminary $9.3-million contract was awarded to Irving    Shipbuilding Inc. to conduct a review of the existing Arctic/offshore    patrol ships (AOPS) design and specifications and create an execution    strategy for the AOPS project.--  On August 20, 2012, the Government tested a scale model of its future    polar icebreaker, the CCGS John G. Diefenbaker, in the world's longest    ice tank. This unique testing facility is located at the National    Research Council's Institute for Ocean Technology in St. John's,    Newfoundland and Labrador.--  On February 21, 2013, the Government of Canada announced a $360-million    investment to extend the life of the Canadian Coast Guard fleet, which    will benefit the Canadian shipbuilding industry across the country and    build on the Government's commitment to supporting jobs and growth.--  On February 22, 2013, a $13.2-million design definition contract for the    new offshore fisheries science vessels (OFSV) was awarded to Vancouver    Shipyards Co. Ltd. The contract is one of a series leading to the    delivery of new ships for the Canadian Coast Guard, starting with the    construction of the OFSVs in 2014.--  Two other contracts with Vancouver Shipyards were also announced on    February 22, 2013-an initial agreement valued at $1.4 million for the    Royal Canadian Navy's joint support ships, and a $1.1-million contract    for the review of the polar icebreaker design.--  Both Vancouver Shipyards and Irving Shipbuilding are undertaking    significant infrastructure upgrades valued at almost $200 million and    $300 million respectively. These upgrades are at no cost to the    Government of Canada.

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