Irving Shipbuilding wins $2.3 billion icebreaker contract with navy

Irving Shipbuilding of Halifax today signed a contract worth $2.3 billion with the government of Canada for the building of six Arctic Offshore Patrol Ships (AOPS). The six Arctic ships will be icebreakers for the navy’s use in the North. The work on the AOPS will sustain more than 1,000 jobs, the government says, bringing total employment at Irving Shipbuilding to 1,600. Many of the jobs will be in welding, metal fabrication, ironwork, electrical, and pipefitting. There will also be future work in planning and production management.

The AOPS contract is in addition to a much larger contract, worth a reported $26 billion, under which Irving has been designated the prime contractor for the planned replacement of the navy’s fleet of fifteen frigates. The company also built the navy’s existing frigates in the 1980s and 90s. Today’s announcement marks the beginning of the construction phase of the program, known as the federal shipbuilding procurement strategy. The total value of the government’s procurement strategy is $35 billion.

IRVING SHIPBUILDING INC.
A good day for Irving Shipbuilding. Celebrating the AOPS contract are Rear Admiral John Newton; Scott Armstrong, Member of Parliament, Cumberland Colchester Musquodoboit; Jim Irving, CEO Irving Shipbuilding; Koren Beaman, Unifor Local 1; Minister Diane Finley, Public Works and Government Services Canada; Minister Peter MacKay, Minister of Justice of Canada; Kevin McCoy, President Irving Shipbuilding; Ed Hatch, President Unifor Local 1

Irving had been selected long ago, according to CBC News, to build the combat ships but the announcement on Tuesday that Irving is the prime contractor gives the shipyard almost complete charge of the project. As prime contractor, Irving will have the right to hire sub-contractors. Some of the most likely are big name defence contractors like Thales and Lockheed Martin, which had expressed interest in the government contract.

The government’s decision to make Irving prime contractor without first holding a competition has been criticized. A former head of procurement for the Defence Department told CBC News that the procurement strategy is deliberately confusing, and that a competition should have been held. Making the builder the prime contractor puts too much power in the hands of a single entity. However, others say that the arrangement has the advantage of being more streamlined. Instead of having one group in charge of project definition and design, and another in charge of building, as is usual with these large projects, the government has chosen to reduce risk by having one company run everything. Irving is now accountable for the entire project.

 

Did you miss this?

Other Popular Stories

  • Car sales set records in November
  • Canada's GDP strength was east, west and north, not central
  • Magna International posts strong sales gains in third quarter
  • The big picture: How 5G will change industry forever — 4th industrial revolution?
  • Elon Musk's stainless steel "Starship" from SpaceX — orbit test in six months, then on to Mars?
  • GO Transit may deploy hydrogen-power rather than electric; consults with Canadian fuel cell technology company that worked on world's first hydrogen-powered train
  • First Electric Car Day held at Queen's Park
  • Joint venture to develop infrastructure for LNG as vehicle fuel
  • If Keystone XL dies, will Energy East replace it?
  • Canada's start-ups need more help to become global players: OCC
  • Researchers claim improved performance from lithium-air battery
  • Little support in auto industry for Canada/Korea free trade deal
  • Researchers Create Negative Mass Superconductor
  • Federal government urged to speak up for nuclear at Paris climate talks
  • Steel industry welcomes anti-dumping investigation by federal government
  • Infrastructure Ontario seeks proposals for Highway 427 expansion
  • Manufacturing closer to stabilizing in January: report
  • Israeli aluminum-air electric car battery to be tested in Montreal
  • SPPCA's new landing gear facility opening in Mississauga
  • First anti-icing wind turbine blades will power Quebec community
Scroll to Top