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Canada : GLOBAL companies see potential for multi-billion dollars in service support contracts

Publish Date : 24-Mar-2015

Under the Canadian fleet-rebuilding program, global businesses see the potential for multi-billion dollars in service support contracts. Canada initiated a CAN $30 billion (US $28 billion) program for the construction of new warships, supply vessels and icebreakers over the next 2 decades. However, company officials say an equal amount, if not more, will be invested in long-term in-service support (ISS) deals for the new ships.

Under those deals, companies will be selected to maintain the ships for 30 to 40 years. According to industry representatives, the government of Canada is moving to establish such deals even before the vessels are built. The first will be a integrated ISS deal for the Canadian Navy's fleet of new Arctic offshore patrol ships and its future supply ships, called joint support vessels.

A spokesperson for Pubic Works and Government Services Canada, the department that oversees the procurement process, Annie Trepanier, said : "This procurement is at a planning stage with industry consultation currently ongoing. Current plans are to release a request for proposal [to industry] later in 2015." The contract, covering a 35-year period, would be offered in 2017.

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