Harper Government’s Shipbuilding Strategy Supports Economic Growth in Mississauga, Ontario
Bob Dechert, Member of Parliament for Mississauga-Erindale, was in Mississauga today highlighting the awarding of the subcontract with Irving Shipbuilding Inc. to INDAL Technologies valued at $1.2 million. Indal has been hired to supply the Aircraft Ship Integrated Secure and Traverse system (ASIST) design that will be used to build the Arctic Offshore Patrol Ships (AOPS) under the National Shipbuilding Procurement Strategy (NSPS). The ASIST design will be produced at the Indal Technologies facility in Mississauga, Ontario.
The AOPS build contract will sustain approximately 1,000 jobs at Irving Shipbuilding as well as many jobs at suppliers across Canada. To date, 265 companies in Canada have benefited from NSPS work.
Construction of an initial block started in June; while full production will commence in September 2015. Delivery of the first HMCS Harry DeWolf class ship is expected in 2018.
- Industry analysts have estimated that government shipbuilding projects would create, both directly and indirectly, 15,000 jobs and generate $2 billion annually through the NSPS.
- As of April 2015, Irving Shipbuilding had awarded over $720 million in contracts to 128 suppliers from across Canada through the modernization of its shipyard and the AOPS project.
- The $3.5 billion budget for the AOPS includes acquisition costs (for vessel design and build), project office operations, a provision for infrastructure costs (e.g. for jetties), as well as initial spares and support.
- The build contract, valued at $2.3 billion, is a cost reimbursable incentive fee-based contract that induces Irving Shipbuilding to deliver six ships to the Royal Canadian Navy within a pre-determined and not-to-exceed ceiling price.
“Our Government’s National Shipbuilding Procurement Strategy is creating and supporting jobs throughout Canada and right here in our community. I am proud to be part of the government that made the historic decision to build ships right here in Canada.”
Member of Parliament for Mississauga-Erindale
“I am pleased to highlight this milestone under our Government’s National Shipbuilding Procurement Strategy. It has led to the creation of economic opportunities for hundreds of families and businesses on our coastlines and across Canada, and will allow our men and women in uniform to better protect Canadians and our sovereignty.”