CANADA Government Announces $2 Billion in Contracts for Modernization of Navy Frigates

Government Announces $2 Billion in Contracts for Modernization of Navy Frigates
	(Source: Government of Canada; issued September 5, 2008)
	Canada has confirmed the award of two contracts, worth a total of C$2 billion, for the modernization of its 12 Halifax-class frigates. (Canadian DND) GATINEAU --- The Minister of Public Works and Government Services Canada, the Honourable Christian Paradis, and the Minister of National Defence and Minister of the Atlantic Canada Opportunities Agency, the Honourable Peter Gordon MacKay, today announced that the Government of Canada intends to award two long-term contracts totalling approximately $2 billion to Lockheed Martin Canada for the Combat Systems Integration (CSI) Design and Build and In-Service Support elements of the modernization of Canada’s 12 Halifax Class Navy frigates. “The award of these two contracts follows an open, fair and transparent procurement process, and demonstrates how this Government is taking action to ensure that the Canadian Forces have the equipment needed to operate effectively in today’s environment,” said Minister Paradis. “The Government of Canada is committed to following through on its promise to modernize the Canadian Forces and these contracts to upgrade the Halifax Class frigates will ensure the Navy maintains its operational capability,” said Minister MacKay. “It will also ensure Canadian sailors have the best available equipment to continue ensuring the safety of our water and ongoing cooperation with our allies.” The CSI contract, valued at approximately $1.4 billion, is for upgrading the command and control systems, redesigning the operations room and reconfiguring the ships’ mast to accommodate a new radar suite for Canada’s 12 frigates. The In-Service Support contract is valued at approximately $600 million and will ensure long-term support of the Combat Systems. The Halifax Class frigates were built in early 1990 and now require upgrades and systems modernization, particularly in the areas of marine engineering, command, control and combat systems. In support of this project, the Government awarded contracts to Halifax Shipyards and Victoria Shipyards in the spring of 2008 for the multi-ship refits. Today’s announcement is part of an overall $3.1 billion program to modernize the Halifax Class Frigates which involves the following five key contracts: -- Two contracts totalling approximately $2 billion to be awarded to Lockheed Martin (as per today’s announcement): The Combat Systems Integration contract, and the Command & Control System In-Service Support contract. -- Two Multi-ship Refit contracts totalling $900 million, awarded to Halifax Shipyards and Victoria Shipyards in March 2008. -- The Platform System Design Agent contract valued at $150 million, awarded to Fleetway Inc. in October 2006. The contractor will be required to provide industrial benefits equal to 100 per cent of the total value of the contract. “Through the industrial benefits policy, we are ensuring that every contract dollar awarded is invested back into the Canadian economy,” said Minister Paradis. -ends-