Canada Signs Long-Term Agreement With Irving Shipbuilding Inc.

Government of Canada/Public Works — February 15, 2012

HALIFAX, NOVA SCOTIA--(Marketwire - Feb. 15, 2012) - The Honourable Peter Mackay, Minister of Defence on behalf of the Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, is pleased to announce that the Government of Canada has signed the umbrella agreement with Irving Shipbuilding Inc. under the National Shipbuilding Procurement Strategy (NSPS).

"The signing of these agreements represents a major milestone of our Government's National Shipbuilding Procurement Strategy - a strategy that will mean jobs and economic growth for the country, stability for the industry, and vital equipment for our men and women in the Royal Canadian Navy and Canadian Coast Guard." said Minister Ambrose. "We're committed to continue doing procurement in a smarter and more efficient way that is both good for Canadians and good for our economy."

"This agreement helps the parties negotiate fair and reasonable contracts, and will lead to well-paid, highly skilled jobs for Nova Scotians across our great province," said Minister MacKay. "The awarding of these contracts to Nova Scotian shipbuilders carries on a proud seafaring tradition for this province, and lays the groundwork for a more prosperous and stable economic future."

In January, Prime Minister Stephen Harper visited both shipyards, where he announced an agreement in principle between the shipyards and the federal government. The umbrella agreements are long-term strategic sourcing arrangements that define the working relationships and administrative arrangements under which the government will negotiate fair and reasonable individual contracts.

The NSPS will have significant economic benefits in shipbuilding and related industries across Canada. It will involve skilled work in a variety of sectors, such as steel manufacturing, information technology, and defence systems development and integration. Small- and medium-sized enterprises across the country will benefit through the construction of large and small vessels, as well as work related to repairing and refitting.

On October 19, 2011, the NSPS Secretariat announced the two Canadian shipyards that were selected to rebuild the Canadian fleets. Irving Shipbuilding Inc. was selected to build the combat vessels while Vancouver Shipyards Co. Ltd. will build the non-combat vessels. The total value of both projects is $33 billion; the projects will span 20 to 30 years. This represents the largest procurement sourcing arrangement in Canadian history.

For more information on the NSPS, please visit http://www.tpsgc-pwgsc.gc.ca/app-acq/sam-mps/snacn-nsps-eng.html.

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Contact Information

Michelle Bakos
Office of the Honourable Rona Ambrose
819-997-5421

Media Relations
Public Works and Government Services Canada
819-956-2315