Feds ink $800M navy service contract with Thales, could create and maintain 2,000 jobs

GATINEAU, Que.—The federal government has inked a contract for in-service support for navy ships that it says will create and maintain 2,000 Canadian jobs over a 35-year period.

The contract has been awarded to the joint venture of Thales Canada Inc. and Thales Australia Ltd., divisions of the French multinational defence contractor Thales Group.

The Thales JV will provide refit, repair and maintenance, and training services for the the Royal Canadian Navy’s Arctic and Offshore Patrol Ships (AOPS) and Joint Support Ships (JSS).

The contract is for an initial service period of eight years, estimated at $800 million, with options to extend services for up to 35 years, for an estimated total of $5.2 billion for the life cycle of the vessels. It is anticipated that more than 2,000 jobs will be created or maintained across Canada over this 35-year period

The in-service support work required to support and maintain the AOPS and JSS under this contract is to be carried out in Canada, unless a ship requires work maintenance while overseas.

Under this contract, Thales is required to compete this work amongst subcontractors. For ships delivered in the East, work will be conducted in the Atlantic provinces, Quebec or Ontario. For ships delivered in the West, work will be conducted in the Western provinces and territories.

“The government is revitalizing the shipbuilding industry, bringing middle-class jobs and prosperity to many communities across the country. We are giving our navy the ships it needs, and we are taking steps to make sure that we have solid, cost-effective support in place to keep our fleet in full operational readiness,” said Jim Carr, acting minister of Public Services and Procurement.