Harper Government Announces Two High-Value Contracts Under NSPS

GATINEAU, QUEBEC--(Marketwired - July 10, 2015) - Public Works and Government Services Canada

The Honourable Diane Finley, Minister of Public Works and Government Services, and the Honourable Denis Lebel, Minister of the Economic Development Agency of Canada for the Regions of Quebec and Minister of Infrastructure, Communities and Intergovernmental Affairs, today announced two high-value build contracts for the Canadian Coast Guard search and rescue (SAR) lifeboats. The SAR lifeboats are the first small vessels to be built under the National Shipbuilding Procurement Strategy (NSPS).

Dave Van Kesteren, Member of Parliament for Chatham-Kent-Essex, announced one contract, valued at $43.4 million, to Hike Metal Products in Wheatley, Ontario. The contract is expected to sustain an estimated 20 jobs and create another 25 jobs over the course of the year in Chatham-Kent-Essex.

Another contract, valued at $45.8 million, was awarded to Chantier Naval Forillon in Gaspé, Quebec. The contract is expected to create some 15 to 20 new jobs at its peak.

Each shipyard is required to build six vessels, with options of up to an additional four. Delivery of the first vessel is scheduled for spring 2017. The lifeboats will provide key SAR services, including conducting searches on water, responding to marine distress calls and providing assistance to disabled vessels.

Over 30 years, the NSPS will create an estimated 15,000 jobs and generate $2 billion a year in economic activity across Canada.

Quick Facts

• To date, more than 265 Canadian companies have benefitted from NSPS contracts.

• The SAR lifeboats will be built as part of the small vessels program under the NSPS.

• This competitive opportunity was open to all Canadian shipyards, with the exception of the two selected under the NSPS to build the large vessels (Vancouver Shipyards and Irving Shipbuilding).

• The new SAR lifeboats will replace the Coast Guard's existing Arun-type vessels.

• Funding for the building of these vessels was announced on June 26, 2013, as part of an investment of up to $488 million in the Coast Guard's fleet renewal.

Quotes

"This contract takes us one step further toward fulfilling our commitment to providing our Coast Guard with the equipment they need to do the jobs we ask of them and to revitalizing our shipbuilding industry. We will continue to ensure that Canadian taxpayers get the best value for their money while creating jobs, economic growth and long term prosperity across Canada."

The Honourable Diane Finley, Minister of Public Works and Government Services

"I am very proud to see a second contract awarded in less than a week to a shipyard in Quebec under our Government's National Shipbuilding Procurement Strategy. This is excellent news for the Gaspésie region and for Chantier Naval Forillon. It will ensure quality jobs in the region for many years."

The Honourable Denis Lebel, Minister of the Economic Development Agency of Canada for the Regions of Quebec and Minister of Infrastructure, Communities and Intergovernmental Affairs

"Our Government's National Shipbuilding Procurement Strategy is creating and supporting jobs throughout Canada and right here in our community. This contract will sustain an estimated 20 jobs, on top of adding another 25 jobs over the course of the year in Chatham-Kent-Essex. I am proud to be part of the Government that made the historic decision to build ships right here in Canada."

Dave Van Kesteren, Member of Parliament for Chatham-Kent-Essex

Associated Links

National Shipbuilding Procurement Strategy

PWGSC news releases are also available on our Internet site.

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