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

  • World's first 3D printed auto manufacturing platform
  • Developing BC's LNG industry would generate $7.4 billion per year: report
  • Shipyard receives $65.4 million under national shipbuilding strategy
  • 100,000 watt laser firing 10,000 pulses per second would "deorbit" tons of dangerous space debris
  • Bombardier, Air Canada Jazz taking part in European MRO event
  • Airborne wind turbine will rise to new heights
  • Supply of oil at record highs, at 100 million barrels a day for the “first time ever”; expected to grow
  • India interested in oil and gas as well as uranium from Canada
  • Carbon Nanotubes — from energy storage to automotive parts, from electromagnetic shields to biomedical applications — light, stable, durable
  • Grid-scale electricity storage solution from New York startup
  • 12 new electric vehicles by 2022 Renaut-Nissan-Mitsubishi alliance commits 30% of overall production output
  • Manufacturing sector saw slight improvement in August: RBC
  • Ford GT supercar in production at Markham's Multimatic plant
  • Siemens Canada, Manitoba Hydro sign $800 million contract
  • Israeli aluminum-air electric car battery to be tested in Montreal
  • Calgary company a leader in waterless fracking
  • Technology supplier announces 18 per cent growth
  • FedDev money for GTA aerospace company; Bombardier cutting losses on Learjet
  • Singapore scientists invent bendable concrete for low-maintenance roads
  • Scientists create liquid fuel from solar energy
Scroll to Top