Four Groups to Compete for Naval Contract

Tuesday, June 27, 2006
The Ottowa Business Journal has reported that four consortia have been selected to bid on a $2.9 billion contract to supply three new joint support ships to the Canadian Forces, the first in a week-long series of announcements by the Harper government of new equipment for Canada's sailors, soldiers and airmen. Irving Shipbuilding, BAE Systems (Project) Limited (BAE Systems Naval Ships), ThyssenKrupp Marine Systems AG and SNC-Lavalin Profac Inc will bid on the project definition phase---including preliminary ship design, project implementation plans, and an in-service support plan. Two groups will then be awarded contracts worth $12.5 million each for the project definition phase, and will compete for the final implementation contract. Based on the definition phase plans, one consortium will be chosen to build the ships. The $2.9 billion price tag includes a base cost of $2.1 billion, plus an estimated $800 million in contracted in-service support over 20 years.

The three new ships will replace two aging supply ships. However, they will have a much-expanded military role that goes far beyond simply re-supplying naval task forces at sea.

Ottawa Business Journal

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