Canadian Manufacturing

SNC-Lavalin wins $180M ship service contract with Canadian navy

Deal covers maintenance services for 76 Royal Canadian Navy vessels

October 4, 2016  by Canadian Staff

MONTREAL—SNC-Lavalin Inc. has inked a two-year extension contract with the Royal Canadian Navy to continue providing the fleet’s minor warships and auxiliary vessels with in-service support.

Worth $180 million, the contract extends service coverage for 76 RCN vessels until September 2019.

The original four-year deal was signed in 2011 and has already been extended twice. It covers a wide range of maintenance services, including the installation of new equipment and hull repairs. SNC said since 2011 it has fulfilled an average of 14,000 work orders each year.

Running up against past ethics issues, the contract extension follows revelations last month that SNC violated the Canada Elections Act with political contributions between March 9, 2004, and May 1, 2011. Following a separate incident and an ongoing investigation into its actions in Libya, the Montreal-based company signed a deal with Ottawa last December that allows it to continue to bid on government contracts despite facing charges.