Public Works and Government Services Canada

Public Works and Government Services Canada

July 03, 2008 17:26 ET

Government of Canada Signs Contract to Support Victoria Class Submarines

GATINEAU, QUEBEC--(Marketwire - July 3, 2008) - The Honourable Christian Paradis, Minister of Public Works and Government Services Canada (PWGSC) and Secretary of State (Agriculture), and the Honourable Peter Gordon MacKay, Minister of National Defence and Minister of the Atlantic Canada Opportunities Agency, today announced that the Government of Canada has awarded a contract to the Canadian Submarine Management Group (CSMG) to provide long-term in-service support for the four Victoria Class submarines.

"This deal will benefit not only the Navy, but all Canadian taxpayers," said Minister Paradis. "Consistent with other projects, this contract allows the government to ensure best value while providing this needed service."

"Canada's submarines fill a strategic operational role protecting Canada's sovereignty along vast coastlines and in working with our Allies," said Minister MacKay. "This contract ensures that our vital assets are maintained and will be ready for service for years to come."

As a result of a July 2006 competitive Request for Proposal that was issued on MERX™, the government's electronic tendering system, CSMG received the highest score based on their technical expertise. The government then negotiated the details of the contract with CSMG to ensure best value for Canadians.

The $370M contract is for five years and covers: project management oversight to plan and organize the submarine refits; material acquisition; repair and overhaul; engineering services; and provides for scheduled refit and maintenance activities. Subject to continuing satisfactory performance of the contractor, a number of extension options can be exercised to expand this work to provide for an additional 10 years of submarine fleet support that could bring the contract to a potential total value of $1.5B.

CSMG has committed to achieving industrial and regional benefits amounting to 100 percent of the contract value.

PWGSC news releases are also available on our Internet site at:
http://www.pwgsc.gc.ca/text/generic/media-e.html

Ce texte est egalement disponible en francais.

Contact Information

  • Office of Minister Paradis
    Mark Quinlan
    Director of Communications
    819-997-5421
    or
    Office of Minister MacKay
    Jay Paxton
    Press Secretary
    613-996-3100
    or
    Public Works and Government Services Canada
    Media Relations
    819-956-2315
    or
    Department of National Defence
    Media Liaison Office
    613-996-2353/2354