Defence and Marine Procurement: Standing Committee on Government Operations and Estimates—June 16, 2020

Document navigation for "Standing Committee on Government Operations and Estimates: June 16, 2020"

On this page

Status of defence procurement projects


Due to COVID-19, several defence procurement projects have halted or slowed, including the construction and maintenance of ships.


All questions related to the challenger jets will be referred to the Minister of National Defence.

Suggested response

If pressed on the budget, delays and impact:

If pressed on challengers:

If pressed on the challenger contract:

If pressed on the sale of light armoured vehicles (LAVs) to Saudi Arabia:

If pressed on the sole-source of armoured combat support vehicles (ACSV) or LAVs to General Dynamics Land Systems Canada:

If pressed on the third yard:

If pressed on the Future Fighter Capability Program:

If pressed on ‘excusable delay’ requests:


Irving Shipbuilding

In response to COVID-19:

Vancouver Shipyards

Operations at Vancouver Shipyards (VSY) continue but are being closely monitored. Staff not in direct support of production are working from home, although return to work planning has begun, while around 95% of tradespeople are working in shifts at the shipyard. Measures being taken include following self-isolation guidelines, additional social distancing measures, cancelling large gatherings and increased cleaning. VSY has been working closely with WorkSafeBC in implementing these practices, and adjusting and escalating actions in response to new regulations and guidance.

This approach has allowed VSY to continue construction of the first joint support ship (JSS) and final offshore fisheries science vessel (OFSV), albeit at a reduced rate of production.

Current status on joint support ships

The joint support ships build contract, which will allow the transition to full-rate construction of the first ship, the construction of early blocks for which began in June 2018, and then the second ship, was awarded on June 10, 2020 and announced on June 15, 2020. The impact of COVID-19 on the JSS project has thus far been minimal. Early block construction of the first vessel has continued throughout the pandemic.

Chantier Davie

On March 24, 2020, in response to COVID-19, the Quebec Government published a list of essential industrial sectors, under which Chantier Davie qualified. Chantier Davie has conducted on-site training for dealing with COVID-19, implemented a set of strict directives, and negotiated with their union to maintain intact squads instead of rotating employees through different teams. Nonetheless the workforce numbers and capacity have diminished to accommodate the social distancing measures implemented.

A number of Canadian defence suppliers have reached out to government officials identifying the need for urgent support, as they are experiencing serious cash flow difficulties resulting from reduced activities in light of the COVID-19 pandemic situation. In collaboration with other government organizations and central agencies, Public Services and Procurement Canada (PSPC) is currently exploring measures to support the defence industry.

Challenger jets

To ensure that Canada obtains value for money, PSPC conducted a thorough cost analysis using supporting information from Bombardier as well as a third party market analysis. The price was deemed to be fair and reasonable.

Acceptance and title transfer of the aircraft are expected to occur on June 30, 2020, and July 3, 2020. Aircrew started training at CAE facilities in Montréal, Quebec on June 8, 2020. Both aircrafts will undergo 2 post-delivery retrofit periods, the first in mid-July to mid-August 2020 and the second in December 2020 and January 2021. The RCAF will be able to operate the aircrafts starting mid-August 2020.

National Shipbuilding Strategy


The National Shipbuilding Strategy (NSS) is a long-term commitment to renew the vessel fleets of the Royal Canadian Navy (RCN) and Canadian Coast Guard (CCG), create a sustainable marine sector, and generate economic benefits for Canadians.

Suggested response

The government is delivering on its commitment to continue to renew the RCN and the CCG fleets, revitalize the shipbuilding industry across Canada, create middle-class jobs, and ensure Canada’s marine services have the modern ships that they need.

Progress on current work

Third yard

Opportunities for other yards / Chantier Davie

If pressed on the polar icebreaker:

If pressed on interim icebreaker capacity for Canadian Coast Guard:

If pressed on joint support ships [note: questions related to the budget for the project and technical requirements (including the design requirements) should be referred to the Minister of National Defence]:


Contracts under the National Shipbuilding Strategy

From 2012 to the end of 2019, the government signed approximately $13.78 billion in new NSS contracts throughout the country. These contracts are estimated to contribute over $17.04 billion ($1.54 billion annually) to gross domestic product (GDP), and create or maintain more than 15,521 jobs annually, through the marine industry and its Canadian suppliers between 2012 and 2022.

Table 1: National Shipbuilding Strategy contracts awarded 2012 to the end of 2019

Irving Shipbuilding Inc.



Other shipyards / companies

$4.74 billion

$1.84 billion

$2.05 billion

‎$5.14 billion

Table 2: Project budgets and delivery dates


Delivery date


Offshore fisheries science vessel (OFSV) 1

June 27, 2019

$687 million


November 29, 2019

$687 million


Summer 2020

$687 million

Joint support ship (JSS) 1


$3.4 billion (under review)



$3.4 billion (under review)

Offshore Oceanographic Science Vessel (OOSV)


$331 million (under review)

Arctic and Offshore Patrol Ship (AOPS) 1


$4.3 billion


Late 2020

$4.3 billion


Fall 2021

$4.3 billion


Fall 2022

$4.3 billion


Summer 2023

$4.3 billion


Winter 2024

$4.3 billion


Winter 2025

$1.5 billion (estimate)


Fall 2025

$1.5 billion (estimate)

Canadian Surface Combatant (CSC)

15 CSCs between 2020s to 2040s

$56 to 60 billion (estimate)

Multi-Purpose Vessel (MPV)

Up to 16 MPVs starting in late 2020s

$14.2 billion (estimate)

Document navigation for "Standing Committee on Government Operations and Estimates: June 16, 2020"

Date modified: