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3 shipyards set to share $7-billion in navy maintenance contracts

The decision by the federal government was met with mixed reaction
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The federal government says it plans to divvy up $7 billion in maintenance and repair contracts for Royal Canadian Navy frigates to three shipyards, a political compromise that was met with mixed reaction.

Public Services and Procurement Canada announced the advance contract award notices on Thursday for Halifax91裸聊视频檚 Irving Shipbuilding Inc., Seaspan Victoria Shipyards in Victoria, B.C., and Davie Shipbuilding in Levis, Que.

The contracts are to maintain Canada91裸聊视频檚 12 Halifax-class frigates until the end of their operational life, estimated at another 20 years.

Ottawa said in a statement that after consultations, it was decided the three Canadian shipyards were needed to complete the work on the warships.

It was not immediately clear how the money would be divided among the three shipyards. A government spokesman said the value of each contract would be variable as the number of 91裸聊视频渄ocking periods91裸聊视频 per shipyard may vary.

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David Baker-Mosher, president of the Unifor Marine Workers Federation Local 1 union at Halifax91裸聊视频檚 Irving shipyard, called the government91裸聊视频檚 plans an 91裸聊视频渦tter disappointment.91裸聊视频

91裸聊视频淲orkers feel their future is being jeopardized,91裸聊视频 he said, noting that the decision could mean layoffs.

91裸聊视频淚t91裸聊视频檚 disappointing that our government cannot understand how these ships are worked on and how much skill is needed.91裸聊视频

At issue is a gap between the end of the Arctic and Offshore Patrol Ships program and the start of the Canadian Surface Combatant program.

Irving has indicated in the past that repair work on the Halifax-class frigates would help mitigate that gap and sustain jobs.

An Irving spokesman declined an interview on Thursday91裸聊视频檚 announcement, but said the company would provide comment following an announcement by Defence Minister Harjit Sajjan at the Halifax Shipyard Friday morning.

In B.C., Tim Page with Seaspan said the company was pleased with the government91裸聊视频檚 intent to contract the Victoria shipyard.

91裸聊视频淲e have been repairing and refitting those vessels now for some time on budget and on time and that elicits great pride in our workforce in Victoria,91裸聊视频 said Page, Seaspan91裸聊视频檚 vice-president of government relations.

However, he pointed out that 91裸聊视频渋t91裸聊视频檚 not the end of the road91裸聊视频 as there is a 15-day 91裸聊视频渃ure period.91裸聊视频 The deal gives other interested suppliers 15 days to come forward if they wish to bid on the contract and submit a statement of capabilities that meets the requirements laid out in the contract notice.

In Quebec, the announcement was greeted with relief by Davie Shipbuilding, which has laid off hundreds of employees over the past year as work dried up.

91裸聊视频淭here is finally stability,91裸聊视频 company spokesman Frederik Boisvert said.

Ottawa has faced strong pressure from the Quebec government to send more work Davie91裸聊视频檚 way.

The company had 1,500 employees during work to convert a civilian ship into a new interim resupply vessel for the navy, but the workforce has fallen to 250 since that ship was delivered in 2017. Davie has been seeking a contract to produce a second resupply vessel.

Ken Hansen, an independent defence analyst and former navy commander, said dividing the work between three shipyards through untendered contracts is about politics.

91裸聊视频淎ny work that is awarded to Davie is done for the sake of politics,91裸聊视频 he said. 91裸聊视频滻t tells you that the power of the Quebec caucus in the Liberal party is really strong.91裸聊视频

Hansen said international best practice is to do repair and maintenance work in the ships91裸聊视频 home port.

91裸聊视频淚f the ships have to travel a distance and get their work done elsewhere, it91裸聊视频檚 both ineffective and uneconomical,91裸聊视频 he said.

The Royal Canadian Navy91裸聊视频檚 Atlantic fleet is based at CFB Halifax while the Pacific fleet is based at CFB Esquimalt near Victoria, B.C.

Hansen added that the decision hearkens back to a historic approach to shipbuilding in Canada

91裸聊视频淭he various regions all had a slice of the shipbuilding pie and what ended up happening 91裸聊视频 was this boom and bust cycle,91裸聊视频 he said, noting that it led to repeated gaps in work and layoffs.

Michael Byers, a University of British Columbia professor and expert on Canadian defence policy, agreed that the decision was likely influenced by politics but called it a 91裸聊视频渄efensible policy choice.91裸聊视频

91裸聊视频淚t91裸聊视频檚 likely a decision made for a political reasons, but it91裸聊视频檚 not a decision that threatens the viability of the shipyards in Halifax or B.C.,91裸聊视频 he said.

91裸聊视频淚t91裸聊视频檚 a defensible decision even if the motivation was probably political.91裸聊视频

Byers added that Irving can also bid on work on the commercial market and shouldn91裸聊视频檛 expect government to fill every gap.

91裸聊视频淔rom a political point of view, it is interesting that the government has found a way to potentially satisfy everyone,91裸聊视频 he said. 91裸聊视频淔rom a vote winning perspective, that91裸聊视频檚 an optimal outcome for the federal government.91裸聊视频

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Conservative Leader Andrew Scheer, in Quebec City to meet with Premier Francois Legault, accused the federal government of 91裸聊视频渘eglecting the Davie Shipyards.91裸聊视频

He said the resupply vessel was delivered 91裸聊视频渙n time, on budget, and now they91裸聊视频檙e delaying the second ship unnecessarily, which is costing jobs here.91裸聊视频

Nova Scotia Premier Stephen McNeil said his government has spoken with Ottawa about maintaining work at the Halifax Shipyard.

91裸聊视频淲e91裸聊视频檝e made the case to the national government that we believe the level of work should be maintained at the shipyard so they can hold on to the high quality talent that they currently have,91裸聊视频 he told reporters.

Ottawa says the work on the frigates is necessary while the navy awaits the delivery of replacement Canadian Surface Combatant ships.

The Canadian Press

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