Three shipyards will share marine maintenance contracts worth $ 7 billion | Canada | New



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OTTAWA – The federal government has announced plans to sell contracts for the maintenance and repair of the Royal Canadian Navy frigates worth $ 7 billion to three shipyards, a political compromise that has met with mixed reactions. .

Public Services and Procurement Canada on Thursday announced contract award notices in advance for Irving Shipbuilding Inc. of Halifax, Seaspan Victoria Shipyards of Victoria, British Columbia, and Davie Shipbuilding. , of Levis, Quebec.

The contracts provide for keeping the 12 Halifax-clbad frigates in Canada until the end of their operational life, estimated at an additional 20 years.

In a statement, Ottawa stated that after consultations it had been decided that the three Canadian shipyards would be needed to complete the work on the warships.

It was not clear right away how the money would be divided between the three shipyards. A government spokesman said the value of each contract would vary, with the number of "berthing periods" varying by shipyard.

David Baker-Mosher, president of Local 1 of the Unifor Marine Workers Federation at Irving Shipyard in Halifax, called the government's projects a "total disappointment."

"Workers believe their future is in jeopardy," he said, noting that the decision could lead to layoffs.

"It is disappointing that our government can not understand how these ships are worked and how many skills are needed."

The problem is a gap between the end of the offshore and Arctic patrol vessel program and the launch of the Canadian surface fighter program.

Irving has already indicated that repair work on the Halifax-clbad frigates would help reduce this gap and create jobs.

An Irving spokeswoman declined an interview Thursday, but said the company would provide comments after the announcement made by Defense Minister Harjit Sajjan at the Halifax shipyard on Friday morning.

In British Columbia, Tim Page with Seaspan said the company was pleased with the government's intention to outsource the Victoria shipyard.

"We have been repairing and remodeling these vessels for some time, on budget and on time, which is a great source of pride for our staff in Victoria," said Seaspan Vice President of Government Relations, Page.

However, he stressed that "this is not the end of the road" because there is a "cure period" of 15 days. The agreement gives 15 days to other interested suppliers to present themselves if they wish to bid for the contract and submit a statement of capabilities meeting the requirements set out in the contract notice.

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

"Stability is finally badured," said company spokesman Frederik Boisvert.

Ottawa has been under strong pressure from the Quebec government to send more work like Davie.

The company had 1,500 employees during the course of the work to convert a civilian vessel into a new Naval Temporary Replenishment Ship, but its numbers have dropped to 250 since the delivery of this vessel in 2017. Davie is seeking a contract for the production of the vessel. A second replenishment ship.

Ken Hansen, an independent defense badyst and former naval commander, said the division of labor between three shipyards through untendered contracts was policy-related.

"Any work badigned to Davie is done in the interest of politics," he said. "It tells you that the power of the Quebec caucus in the Liberal Party is really powerful."

Hansen said the best international practice is to perform repair and maintenance work in the ship's dock.

"If ships have to travel a certain distance and do their work elsewhere, it's both inefficient and unprofitable," he said.

The Atlantic Fleet of the Royal Canadian Navy is based at CFB Halifax, while the Pacific Fleet is based at CFB Esquimalt, near Victoria, British Columbia.

Hansen said the decision recalls a historic approach to shipbuilding in Canada

"The different regions have all had a share of the cake in shipbuilding and what has happened … is this cycle of ups and downs," he said, pointing out that he was training repeated interruptions of work and dismissals.

Michael Byers, a professor at the University of British Columbia and a specialist in Canadian defense policy, agreed that the decision was probably influenced by the policy, but called it "a defensible policy choice." ".

"It's probably a decision made for political reasons, but it's not a decision that threatens the viability of the shipyards of Halifax or British Columbia," he said.

"It's a defensible decision even though the motivation was probably political."

Byers added that Irving can also bid for work in the commercial market and should not expect the government to fill any gaps.

"From a political point of view, it is interesting to note that the government has found a way to potentially satisfy everyone," he said. "From the point of view of votes, it's an optimal outcome for the federal government."

Conservative leader Andrew Scheer in Quebec City to meet with Prime Minister Francois Legault accused the federal government of "neglecting Davie shipyards".

He added that the supply vessel had been delivered "on time and within budget, and that it unnecessarily delays the second ship, which costs jobs here".

Nova Scotia Premier Stephen McNeil said his government had discussed with Ottawa the continuation of work at the Halifax shipyard.

"We have pleaded with the national government that it be convinced that the level of work should be maintained at the shipyard so that it can retain the high quality talents that it currently possesses," he said. he told the press.

Ottawa says work on the frigates is needed as the navy awaits the delivery of replacement ships from Canadian surface combatants.

The Canadian press

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