Global Trade Alert

On October 19, 2011 the secretariat of the National Shipbuilding Procurement Strategy (NSPS) announced the results of a Request for Proposals to build large ships for Canada. In addition to a package of combat ships, the NSPS provides for the procurement of the Navy's joint support ships, the Canadian Coast Guard's off-shore science vessels, and a new polar icebreaker. The secretariat selected Irving Shipbuilding Inc. to build the combat vessel work package (21 vessels), and Vancouver Shipyards Co. Ltd. to build the non-combat vessel work package (7 vessels). The total value of both packages is $33 billion and will span 20 to 30 years, and represents the largest procurement sourcing arrangement in Canadian history. The policy also provides for the construction of 116 small ships (with an estimated value of $2 billion) set aside for competitive procurement in Canadian shipyards other than the yards selected to build large vessels. The selected shipyards will be required to identify business activities in Canada valued at 100 per cent of the contract value.