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Navy ship contract awarded to Vancouver Shipyards

Navy ship contract awarded to Vancouver Shipyards

VANCOUVER — Ottawa recently announced it has awarded a performance-based contract to Seaspan’s Vancouver Shipyards for the full construction of two joint support ships for the Royal Canadian Navy (RCN).

The $2.4-billion contract will allow the transition to full-rate construction of the first ship, the construction of early blocks, which began in June 2018, and then the second ship.

The ships will deliver fuel and other vital cargo to vessels at sea, offer medical and dental services, and provide facilities for helicopter maintenance repair. The presence of resupply ships increases the range and endurance of operations at sea, allowing Canadian combat ships to remain at sea longer without going to shore.

 “We continue to work closely with the Canadian shipbuilding industry and its associated sectors during this unprecedented time for our country and the world,” said Anita Anand, minister of public services and procurement, in a statement. “I commend the dedicated workers across the country for their continued perseverance in delivering on critical federal shipbuilding projects. This contract award is yet another example of our ongoing commitment to the National Shipbuilding Strategy, which is supporting a strong and sustainable marine sector in Canada.”

The design contract for the for the joint support ships project was awarded in February 2017 and early build construction began in June 2018.

The first ship is expected to be delivered in 2023 and the second in 2025. The total budget includes $3.1 billion for the purchase of the two ships and initial spares, as well as $1 billion for design and production engineering work, project management and associated contingency costs, resulting in a total value of $4.1 billion.

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