Quebec Wants More Federal Shipbuilding Contracts

By: ANDREA GUNN, The Chronical Herald

Quebec is formally calling on the federal government to rejig its massive shipbuilding strategy in order to give the province a bigger share of the multibillion-dollar pie.

Members of the Quebec National Assembly unanimously passed a motion Wednesday requesting that the federal government adjust Canada’s national shipbuilding strategy so Quebec gets what it believes is its fair share of federal contracts. The motion also asked Ottawa to “grant Quebec the contracts necessary” for the replacement of coast guard and Royal Canadian Navy ships, including the acquisition of a second Resolve-class tanker.

Responding to the motion, the province’s major shipbuilder, Chantier Davie Canada Inc., issued a news release commending the Quebec government.

“The federal government is going to invest almost $100 billion over the next 20 to 30 years on its fleet renewal,” Alex Vicefield, chairman of Davie Shipyard, said in the release. “Quebec represents 50 per cent of Canada’s shipbuilding capacity and 23 per cent of Canada’s tax base, yet it is receiving less than one per cent of federal spending on shipbuilding.

“Today, Quebec is at risk of losing a significant number of middle-class jobs due to bureaucratic intransigence and road-blocks within a broken procurement system, despite the clear and obvious need for Canada to urgently renew the entirety of its fleet.”

Bloc Québécois MP Michel Boudrias sought to put forward a similar motion in the House of Commons on Wednesday but was denied the unanimous consent required for the point of order.

WORK PREVIOUSLY AWARDED ON REGIONAL BASIS

Retired navy commander and defence analyst Ken Hansen said, looking at the historical context it’s easy to see why Quebec is miffed: Previously all shipbuilding for the government was done on a regional apportionment basis. But, he said, that was inefficient and contributed to the “boom and bust” cycle the government was trying to avoid by developing the national strategy.

“The strategy was designed to provide continuous work so that they wouldn’t go through these startup and shutdown cycles which cost money and cause chaos in the workforce,” he said.

After initial analysis, Hansen said, Ottawa concluded there wasn’t enough money or work to sustain long-term employment at more than two shipyards, so the national strategy approach was born, and Davie did not make the cut.

In 2011, Irving Shipbuilding in Halifax was named prime contractor for the combat portion of this strategy and is building six Arctic and offshore patrol vessels, the first to be delivered in 2018, and up to 15 Canadian surface combatants to be built in the 2020s.

The contract is expected to cost around $60 billion and create hundreds of long-term, well-paying jobs in Halifax

Seaspan on the West Coast was awarded the non-combat portion of the shipbuilding strategy and is building a number of science vessels for the Canadian Coast Guard as well as two joint support ships, the first to be delivered in 2020.

DAVIE PITCHES FOR MORE WORK

Though Davie was in bankruptcy when the national shipbuilding strategy contracts were awarded to the other two yards, the company is now solvent and is in the process of converting a commercial container ship into an interim auxiliary naval replenishment for the Canadian navy.

The MV Asterix has been hailed as a success and is expected to be delivered before the end of the year.

Known as Project Resolve, Davie pitched the idea to the previous Conservative government as a way to bridge the gap in tanker capabilities from the loss of the Protecteur class while Seaspan completes its support ships. The Tories accepted the bid and the Liberals considered reviewing it when they took power in 2015, but ultimately the contract remained in place. The vessel will be leased to the federal government for five years at a cost of about $700 million, with an option to renew for an additional five years.

On Wednesday, the federal Conservatives issued a release urging the government to accept Davie’s proposal to build a second Resolve-class interim vessel.

Davie has also pitched a series of other unsolicited bids to the Liberal government — in 2016 the company offered to deliver icebreakers and support ships, claiming they could do so faster and cheaper than what is already planned, but those bids were rejected by the government.

As for whether Quebec has a leg to stand on with new demands to Ottawa, Hansen said it depends on political pressure.

“The big concern is the Liberal caucus from Quebec and how much pressure they can bring to bear on the prime minister and cabinet about this issue, so we’ll have to wait and see.”

OTTAWA COMMITTED TO CURRENT STRATEGY

Central Nova Liberal MP Sean Fraser told The ChronicleHerald he cannot see a realistic scenario where the government changes the shipbuilding strategy to favour Quebec because of political pressure from a provincial legislature.

“We’ve got 32 Atlantic Canadian MPs who are great advocates for their region, and we have the expertise and technology capacity to win any merit-based competition,” he said.

In an emailed statement, Christine Michaud, spokeswoman for federal procurement minister Carla Qualtrough, said the Liberal government remains committed to the shipbuilding strategy.

“As set out in the National Shipbuilding Strategy, $2 billion in small ship construction is set aside for competitive procurement amongst Canadian shipyards other than the yards selected to build large vessels. Chantier Davie is eligible to compete for small ship construction projects (under 1,000 tonnes), as well as ship repair, refit and maintenance requirements,” she said. “Our government is committed to consulting the marine industry on other requirements that may arise following an open and competitive procurement process.”

Irving Shipbuilding declined comment on the Quebec motion or the statement by Davie, but a spokesperson provided some information about economic benefits the strategy is already leveraging across Canada via major suppliers, including more than $250 million in Quebec.

Resolve Class iAOR Showcased in Halifax

Federal Fleet Services Press Release

The first Resolve-Class Naval Support Ship will be showcased at DEFSEC 2017 in Halifax tomorrow. Federal Fleet Services, which is managing the project, is a sister-company to Davie Shipbuilding. Federal Fleet is sponsoring the DEFSEC Atlantic conference prior to opening a major operations sub-center in the city, during the fall.

It is expected that the first Resolve-Class Naval Support Ship will initially home port from CFB Halifax from the end of this year where she will be used to ensure that the Royal Canadian Navy can sustain itself as a true blue-water navy and expeditionary force.

Spencer Fraser, CEO of Federal Fleet Services commented "It's great to be here in Halifax where we are opening a new operations sub-center to manage Canada's next naval support ship from and where our teams will be working from. Tomorrow we will be giving participants at DEFSEC an insight into how Canada's largest, highest capacity and most experienced shipbuilder – Davie Shipbuilding in Québec – delivered this complex naval shipbuilding project on time and within budget. This program will have an enormous economic impact here in Halifax."

According to OMX, through the creation of the operations sub-center in Halifax, Federal Fleet Services will create 718 jobs annually in Nova Scotia and create over $1.8bn in total economic output and over the coming 10 years.

Alex Vicefield, Chairman of Davie Shipbuilding added "The Resolve-Class Naval Support Ship program is a testament to the fact that Canadian shipbuilders can, in fact, deliver programs on-time and to budget, if managed correctly. Having proven it can be done, we stand ready to assist the Canadian government in any way necessary to ensure the success of future shipbuilding programs. We also look forward to building a deeper connection between CFB Halifax and Québec City during the upcoming tender for the in-service support, repair, and maintenance of Canada's existing frigates. These are ships our teams are very familiar with having both built and refitted them."

Federal Fleet Services is part of the Inocea Group of Companies which also owns Davie Shipbuilding. Federal Fleet Services has been contracted to provide Naval Support Ships for the Royal Canadian Navy.

Chantier Davie is Canada's largest, highest capacity and most experienced shipbuilder. In 2015, Davie won the prestigious title of Lloyds List North American Shipyard of the Year. Over the past five-years, Davie has generated over $2B in economic benefit to Canada and directly and indirectly employs over 3,000 Canadians, including more than 1,400 who work at the shipyard in Levis, Québec. Davie has been Canada's shipbuilder and ship-repairer for every class of major naval platform over the past century. Today, Davie is an industry leader in icebreaking, LNG and dynamic positioning technologies as well as naval and other mission-critical shipbuilding. Davie is ISO 9001:2015 certified for Quality Assurance and ISO 14001:2015 for Environmental Management.

Resolve iAOR to be Unveiled July 20

By: David Pugliese, Defence Watch 

Chantier Davie has issued invitations for the unveiling of the Resolve-class interim Auxiliary Oiler Replenishment (AOR) ship. That will happen July 20. All members of the public are welcome according to the invitation.

In November 2015, the Liberal government tried to derail the $669 million project for the supply ship but backed down after their attempt became public.

Project Resolve was approved by the previous Conservative government and involved Davie shipyards in Quebec quickly converting a commercial vessel into an AOR. The ship had already been delivered to Davie to begin the conversion process when James D. Irving, co-chief executive officer of Davie’s rival, Irving Shipbuilding, wrote a letter on Nov. 17, 2015, to then procurement minister Judy Foote and Defence Minister Harjit Sajjan. Irving requested its proposal for a similar vessel, already rejected by the Conservative government, be examined.

After receiving Irving’s letter the Liberal government put Project Resolve on hold.

Details about the Liberals’ decision to put Project Resolve on hold, as well as Irving’s letter and details of cabinet discussions about the matter, were leaked to the CBC in November 2015. The leak embarrassed the new Trudeau government and sparked outrage in Quebec about the potential loss of hundreds of jobs if Davie were to lose the ship deal. The Liberals beat a quick retreat and shortly afterwards, Project Resolve went ahead.

The RCMP has claimed that Vice Admiral Mark Norman was involved in leaking information on Project Resolve to Davie officials. Norman denies any wrongdoing. The RCMP have not laid any charges against the vice admiral who was suspended from his job in January by Chief of the Defence Staff Gen. Jon Vance. Norman’s supporters have raised questions about how the respected officer has been treated.

The ship will be leased to the Canadian government, which has an option to buy the vessel if so desired.

Davie has issued these photos of the vessel:

RCMP Accuse Vice-Admiral Norman of Leaking Cabinet Secrets

ROBERT FIFE, STEVEN CHASE AND DANIEL LEBLANC
The Globe and Mail

The RCMP allege Vice-Admiral Mark Norman violated the Criminal Code by leaking government secrets, an accusation that arises from a 16-month probe into the release of information about cabinet deliberations to a Quebec-based shipbuilder that wanted Ottawa to stop delaying approval of a $667-million contract for an interim naval supply ship.A breach of trust conviction under Section 122 of the Criminal Code carries a sentence of up to five years in prison.

The RCMP investigation into the leaks – called Project Anchor – has not yet resulted in charges against Vice-Adm. Norman, who has served in the navy for 36 years.

Read also: Vice-Admiral Norman's removal from post shocks friends, colleagues

On Wednesday, an Ottawa court released an affidavit and supporting documents, including e-mails, that police used to obtain a warrant to search Vice-Adm. Norman's home earlier this year.

The documents show that the criminal probe has expanded to include interviews of prominent Ottawa lobbyists and executives of the Chantier-Davie Canada Inc. shipyard in Levis, Que. The Mounties also interviewed senior cabinet ministers, including Treasury Board President Scott Brison and top mandarins.

"Norman is suspected of having committed a Criminal Code section 122 breach of trust offence," RCMP Corporal Matthieu Boulanger wrote in an affidavit to obtain a search warrant to raid the Vice-Admiral's Ottawa home on Jan. 9. The Mounties also allege Vice-Adm. Norman violated the Security of Information Act.

The RCMP affidavit filed in the Ottawa courthouse alleges that Chantier-Davie shipyard and a sister company were attempting to press the Trudeau cabinet to stick with a contract the former Conservative government ordered in the final day of the October, 2015, federal election campaign.

Soon after taking power in November, 2015, the Trudeau Liberals put the supply ship project on hold after receiving a letter of complaint from Irving Shipbuilding Inc., which already had a multibillion-dollar contract to build the navy's new fleet of warships. This delay meant that cabinet might look at other, lower bids, threatening Chantier-Davie's contract.

The heavily redacted affidavit provides little idea of what the RCMP allege are Vice-Adm. Norman's motives. The senior naval officer, however, last year said delays in shipbuilding programs had hurt the navy. "It's important to keep in mind that [the delays were] completely avoidable," he said in 2016.

Irving Shipbuilding CEO James Irving tried to persuade the Trudeau Liberals to kill the sole-source contract with Chantier-Davie, arguing that his firm had offered a lower-cost option. Another shipbuilding firm, Vancouver-based Seaspan, called for an open competition and said it could convert a civilian cargo ship into a military supply ship at a significantly lower cost.


Court documents show that the RCMP obtained search warrants in the last two months of 2016 to seize the contents of Vice-Adm. Norman's mobile devices as well as e-mails from Spencer Fraser, CEO of Federal Fleet Services, the Chantier-Davie company in charge of the interim supply ship project.

The Mounties also raided the offices of Mr. Fraser and three Chantier-Davie executives and their Ottawa lobbyists: Brian Mersereau, chairman of Hill and Knowlton, and Kevin MacIntosh, a partner and senior vice-president at FleishmanHillard.

"As a result of the data seized at Chantier Davie, it was discovered that Spencer Fraser was supplying information subject to cabinet confidence to [Chantier-Davie vice-president John] Schmidt, to Alex Vicefield, CEO of Inocea, parent company of Chantier Davie, and to various lobbyists working on behalf of Chantier Davie," Cpl. Boulanger wrote.

Attempts to reach Mr. Fraser, Vice-Adm. Norman, FleishmannHillard and executives of Chantier-Davie on Wednesday were unsuccessful. Mr. Mersereau did not comment. There is no indication in the court documents that anyone other than Vice-Adm. Norman is under police investigation.

The Globe and Mail has gone to court to seek the release of an unredacted version of the warrant and production order used by the RCMP to search Vice-Adm. Norman's home.

Toronto lawyer Marie Henein, who is representing Vice-Adm. Norman, has obtained a court order to keep all potentially incriminating e-mails involved in the Norman probe under wraps. Lawyers for The Globe will argue in court that the material should be released except for parts dealing with cabinet confidentiality.

Ms. Henein has publicly asserted her client "was caught in bureaucratic cross-fire" and said his "sole objective" is to advance the country's national interest.

There was no indication of any bureaucratic infighting in the documents released by court on Wednesday.

The e-mails attached to the RCMP affidavit also suggest that lobbyists were planning to use the media to press Ottawa to rule in favour of the Chantier-Davie contract, and that Mr. Fraser developed a lobbying effort to get Quebec government to rally on behalf of Chantier-Davie.

Vice-Adm. Norman was Canada's second-most-senior military commander when he was suspended from his duties three months ago after RCMP raided his home and questioned him extensively. It is not known what the police seized during the raid or what the suspended military commander told the Mounties.

A curious feature of the Norman investigation is that it was set in motion by a story from then CBC radio reporter James Cudmore on Nov. 20, 2015. The story, citing secret deliberations, revealed cabinet had delayed approval of the Chantier-Davie contract for 60 days, the affidavit says. Two months after this story – and after an RCMP investigation had commenced – Mr. Sajjan hired Mr. Cudmore as a senior adviser.

Mr. Cudmore's story reported in detail on a cabinet decision to delay approval of the sole-source contract to Chantier-Davie.

In one e-mail discussion among Ottawa lobbyists that was part of the RCMP affidavit, one of them writes "the only thing we can do is sic the media and the union" on Social Development Minister Jean-Yves Duclos, who represents the Quebec City region. Mr. Mersereau at Hill and Knowlton writes: "Want me to try some of the media here?" Two days later, on Nov. 20, 2016, Mr. Cudmore reported on CBC that the Davie supply ship deal had been "halted by Liberals" and was "leading to concerns the plan will soon be scuttled and the navy will be left unable to properly defend Canada or deploy its forces abroad."

Mr. Cudmore also reported Mr. Irving had allegedly "meddled in the decision by sending letters to several cabinet ministers about the deal."

This CBC report went on to say "there was little risk" that Mr. Irving's concerns about the sole-source contract "could be successfully challenged."

The story took the Liberal cabinet by surprise. After the CBC report, Mr. Brison told the RCMP that "rendering of this [classified information] into the public domain did an awful lot to limit our ability to what we'd [the committee] intended to do, and that is more due diligence on this."

The government approved the Chantier-Davie deal on Nov. 30.

Mr. Cudmore also revealed in a Nov. 25 story that Seaspan CEO Jonathan Whitworth wrote to Mr. Sajjan expressing his interest in bidding on the supply ship contract.

Mr. Cudmore said on Wednesday that he has not seen the affidavit and has no comment.

The PMO ordered an internal investigation of the cabinet leaks, which led to the Mounties being summoned.

Editor's note: An earlier version of this story incorrectly said that the RCMP interviewed a former CBC journalist who is now a senior adviser to Defence Minister Harjit Sajjan. In fact, there is no mention of this in the affidavit. This is the corrected version.

Follow Robert Fife, Steven Chase and Daniel Leblanc on Twitter @RobertFife @stevenchase  @danlebla

ALMACO To provide the Superstructure for iAOR Resolve

Originally Published by: MarineLog March 7, 2017

Canada’s Davie Shipbuilding recently awarded a contract to the ALMACO Group for the delivery of the superstructure of Project Resolve, a Royal Canadian Navy AOR vessel.

Superstructure for Royal Canadian Navy's Project Resolve

This would be the first project carried out as part of ALMACO and Davie’s cooperation and technology transfer. The fleet supply vessel’s superstructure is built in Finland and will be delivered by ALMACO as a single structure to be integrated to the hull at the Davie shipyard in Lauzon, Quebec, Canada. The remaining parts of the superstructure that were not outfitted will be completed by Davie once it is integrated to the hull. The superstructure will have a transport weight of 2,200 tons.

ALMACO’s scope of work includes the full EPC (Engineering, Procurement and Construction) contract for the Living Quarter superstructure including cabins, public areas, galley, provision stores, wheelhouse and technical spaces. All areas are built with high standards and high quality to enable the best possible living conditions for the vessel’s crew. ALMACO was chosen for the project due to the extensive expertise and history of providing cost efficient and high quality accommodation and catering areas to Marine and Offshore clients.

“We are proud to be part of this project where ALMACO and Davie will combine Finnish shipbuilding expertise with Canadian shipbuilding capabilities to the great benefit of the vessel’s end users and to meet the timeline for the delivery of the superstructure,” says Vilhelm Roberts, ALMACO Group’s President and CEO. “ALMACO will be sharing its skills and technology in accommodation areas with Davie’s personnel as the company has a long and successful history of providing modular prefabricated structures and cabins around the world.”

Davie Shipbuilding and ALMACO Group are planning to continue the cooperation for potential future projects combining Canadian and Finnish shipbuilding expertise. Each country has extensive experience in the construction of a variety of vessels including ocean and river cruise ships, vessels for navy applications and demanding icebreakers.

ALMACO’s concept of fabricating accommodation solutions globally is an advantage for future projects carried out at Davie’s shipyard premises, which will strengthen the cooperation between the companies even further.

“ALMACO is looking to establish a more permanent presence in Canada in the future by supporting projects at Davie, with the aim of fabricating modular cabins in Quebec in the coming years”, states Mikael Liljeström, President of ALMACO’s Offshore division.

HMCS Preserver paid off after 46 years of service

DND Press Release

HMCS Preserver concluded its service to the Royal Canadian Navy (RCN) on Friday. The Auxiliary Oilier Replenishment (AOR) was officially "paid off", receiving a final salute from current and former sailors, soldiers, airmen, and airwomen during a ceremony at HMC Dockyard Halifax. The paying-off ceremony signals the end of the ship’s service to the Royal Canadian Navy.

According to RAdm J. Newton, Commander of Maritime Forces Atlantic, the Protecteur-class ships set the standard in modern navies for safe and expedient replenishment at sea. The essential but inherently difficult and dangerous task of resupplying ships at sea with food, fuel, munitions, and spare parts was executed by Preserver, and sister ship Protecteur, for 46 years. To accomplish this task, the ships travelled in the North Atlantic, across the wide Pacific, and into Canada’s Arctic waters.

First of class, HMCS Protecteur was commissioned in 1969, and HMCS Preserver was commissioned a year later in August 1970. The RCN intended to operate the ships until 2017. Protecteur suffered a serious engine room fire in 2014 and was sold for scrap metal in 2015, and corrosion problems were identified on Preserver, which contributed to her early retirement and today's paying off ceremony.

Canada intends to build two new auxilliary vessels, the Queenston-class joint support ship, at Seaspan shipyards in the Vancouver area, however, those will not be complete before 2019.

In a stop-gap measure, the RCN’s replenishment requirements are currently being addressed through leasing arrangements with Spain and Chile. The Spanish replenishment ship ESPS Patino is currently supporting the Atlantic Fleet.

In another answer to the serious capability gap left by the Protecteur-class AORs, the Government of Canada signed a contract in August 2015 (Project Resolve) with Davie Shipyard of Quebec to convert a German commercial container ship (built in 2010) to take on the resupply role for the RCN. The conversion was expected to be completed and the ship active in service by 2017.

Quick Facts

The term “paying off” refers to the British age-of-sail practice of paying a crew their wages once a ship has completed its voyage. In the RCN, the tradition continues with the term paying off referring to the formal ceremony where the naval jack, ensign, and commissioning pennant are hauled down, the crew departs a ship for the last time, and the ship is then no longer referred to as HMCS (Her Majesty's Canadian Ship).

HMCS Preserver has participated in numerous missions and operations, including the United Nations peacekeeping effort in Cyprus and the enforcing of sanctions on the former Yugoslavia, as well as Operations DELIVERANCE, APPOLLO, CARIBBE, among others.

Over the course of HMCS Preserver’s 46 years of service, it is estimated that more than 8,000 sailors have been part of its crew.

Over the course of its lifespan, Preserver has used/delivered over 800,000,000 litres of fuel since commissioning or 800,000 m3. This is equal to filling up a standard car 13.5 million times.

HMCS Preserver is 546 feet long, 76 feet wide, and displaces 22,100 tons. Engine power is 21,000 SHP and the maximum speed is 20 knots. It normally has a complement of 270 officers and non-commissioned members.

The disposal method for HMCS Preserver will be determined in due course, with careful attention paid to environmental, safety, and financial considerations. Disposal options include selling or donating the vessel, or dismantling it for scrap material.

iAOR Role can be Expanded and Outfitted for Disaster-Relief

By: David Pugliese, National Post

OTTAWA — The company providing an interim supply ship for Canada’s navy is looking at expanding the vessel’s disaster-relief capabilities, a role identified by the Liberal government as a key future military mission.

The MV Asterix, a commercial vessel that is being converted into a supply ship for the Canadian Navy, is seen June 23, 2016, at Quebec's Chantier Davie shipyards. The ship's hull has been hollowed out to accommodate new fuel tanks and it will be receiving a new superstructure.

Chantier Davie shipyards of Levis, Que., and its sister company Federal Fleet Services, will be gathering Canadian firms in Ottawa on June 28 so they can outline disaster-relief equipment available for the ship, to be delivered to the navy late next year.

The ship is being created by converting a commercial vessel, the MV Asterix. The project has attracted interest from the Australian, New Zealand and South African navies.

Canadian suppliers of equipment for disaster and humanitarian missions will outline what they can supply for the vessel and that information will be passed on to the Royal Canadian Navy, said John Schmidt, a vice-president with Federal Fleet Services in Ottawa.


The ship’s main role is to refuel and resupply warships at sea. But the navy has also said it wants the vessel to have capabilities for humanitarian missions, although it has not outlined many specifics.

The Liberal government has said it wants the Canadian military to play more of a role in disaster and humanitarian missions.

“Canada has a lot of companies who are leaders in technology who can meet these demands, but they have never had the opportunity to bid to the Canadian government,” Schmidt said.

Jacques Boissinot/The Canadian PressThe MV Asterix is seen at Davie Shipbuilding in Levis, Que., on Oct. 13, 2015.

He noted the ship has a lot of flexibility since it can carry several dozen sea containers of emergency equipment. It can also provide medical assistance and has room for more than 200 passengers for a disaster-relief operation.

Vice-Admiral Mark Norman, who will take over later in the summer as vice-chief of the defence staff, told the Ottawa Citizen in a recent interview that the navy is looking at ways to outfit its ships for future humanitarian missions.

Noting other countries’ interest in the conversion project, Schmidt said navies around the world need to replace aging supply vessels. “Everyone is watching their budgets,” he explained. “If there is a way to provide a capability at a reduced cost, then navies are interested in hearing about it.”

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Schmidt said delivery of the ship to the Canadian navy is on schedule for September 2017. The company is motivated to keep its schedule because it doesn’t receive any payment until the vessel is delivered, he added.

Jacques Boissinot/The Canadian PressThe MV Asterix is seen at Davie Shipbuilding in Levis, Que., on Oct. 13, 2015.

The Canadian government decided to proceed with the conversion of the commercial container ship after the navy’s existing two supply vessels were pulled from active service because of age and structural issues.

Under a lease agreement, Federal Fleet Services would provide a civilian crew to operate the ship. Royal Canadian Navy personnel would be on board to handle communications and the actual transfer of supplies and fuel to warships.

The conversion project and lease of the vessel is estimated to cost about $700 million.

The lease would run for five years, with an option after that to extend on a yearly basis for a total of another five years.

Under the federal government’s national shipbuilding strategy, Seaspan in Vancouver is to build two supply ships for the Canadian navy. But those are not expected to be ready until around 2020.

Davie Applauds Irving's Pitch for Maritime Support Ship

By: David Pugliese, Defence Watch 

These are interesting days indeed in the defence industry. On Tuesday I reported in the National Post/Ottawa Citizen about Irving Shipbuilding’s new proposal to construct a ship specifically designed to aid in a humanitarian crisis.

The Nova Scotia-based shipyard would take a commercial roll-on/roll off vessel and convert it to carry a hospital, medical supplies and emergency equipment to respond to a variety of missions ranging from earthquake relief to providing aid to refugees.

Irving submitted the proposal Friday to the officials coordinating the Liberal government’s defence review.

The Liberal government has yet to respond to the proposal.

The firm is hoping to take advantage of the government’s interest in having the Canadian military play more of a role in humanitarian operations.

Irving president Kevin McCoy told the Ottawa Citizen it would take about one year to convert a commercial vessel into what the company is calling a maritime support ship.

“This is not an unsolicited proposal,” he said. “It’s in response to several of the key questions raised by the government’s Defence Review.”

The vessel would be offered to Canada for a five-year lease. The cost, under $300 million, would include the leasing of the ship, conversion of the vessel for its humanitarian role, a 30-member civilian crew to operate the vessel and maintenance for the lease period.

McCoy said the proposal would not undercut the government’s current shipbuilding strategy, which calls for the building of two Joint Support Ships. Construction of the first of those ships is expected to proceed in 2018 at Seaspan shipyards in Vancouver. The first of those ships would be ready in 2020.

Davie shipyards in Quebec is also converting a commercial vessel for the navy. That ship will be used on an interim basis to handle at-sea refueling for the navy’s warships.

Davie has also promoted the vessel’s ability to be of use during a humanitarian crisis.

What was interesting was the reaction from Davie. It took a “more the merrier” approach.

Davie issued a news release Tuesday commending Irving Shipbuilding on “taking a positive and innovative approach to solving some of the major capability gaps facing the Royal Canadian Navy and Canadian Coast Guard with regards to the current federal shipbuilding programs.”

“Realizing this, East coast shipyards in Canada’s key shipbuilding hubs in Nova Scotia and Quebec have pro-actively provided alternative, cost-efficient and innovative ways to convert existing commercial vessels to fill gaps in Canada’s non-combat fleet,” the firm noted.

Speaking at the CANSEC in Ottawa, Alex Vicefield, Davie’s chairman, said Irving Shipbuilding’s proposal “is confirming what has been universally recognized over the past months, including by the Government of Canada in the Canada Transportation Act review. That there are several classes of ship which Canada urgently needs and the current shipbuilding program is not capable of delivering. This is a great initiative from Irving Shipbuilding – these kind of unsolicited proposals where industry takes what it has learnt in how to provide fast-track, cost-efficient solutions to address critical operational gaps, is exactly what is needed right now.”

Vicefield said “these kind of interim and supplementary programs to ensure that we can close the capability gaps” are needed.

RaceRocks BC to act as Training Provider on Project Resolve

Another announcement out of British Columbia for the Royal Canadian Navy's iAOR Project Resolve.

RaceRocks of Victoria, BC, recently signed a contract with Project Resolve Inc. to act as the tier-one training provider for the Royal Canadian Navy’s Resolve-Class Auxiliary Oiler Replenishment ship, MV Asterix, which is now under conversion at Chantier Davie Canada Inc. in Quebec.

RaceRocks had previously signed a Letter Of Intent with Project Resolve in September 2015. The LOI allowed RaceRocks to commence its activities and collaborate with Project Resolve on planning the training requirements until the Liberal government awarded, in late November, the contract to proceed with the ship conversion.

RaceRocks will now complete all activities required to deliver the requisite training systems for the Resolve Class AOR by the spring of 2017. The work will be executed by a pan-Canadian team with RaceRocks as prime, as well as with sub-contractors in Nova Scotia, Ontario, and Quebec.

“It’s important to note that we did an extensive survey of the naval training service providers situated here in Canada and we determined very quickly that RaceRocks and its exclusive Atlantic partner, Modest Tree of Halifax, not only provide the most cutting-edge naval training solutions available, but are able to do so at a fraction of the cost,” Spencer Fraser, Project Resolve Inc CEO, said in a statement.

OSI to supply INBS fpr Project Resolve iAOR

Originally Published by MaritimeLog 

The Burnaby, BC, headquartered OSI Maritime Systems (OSI) has signed an agreement with shipbuilder Chantier Davie Canada Inc. to provide an Integrated Navigation and Bridge System (INBS) for the interim fleet oiler currently being created at its Lévis, Quebec, shipyard.

"We are extremely pleased to be working with Davie on this very innovative project that requires taking a commercial ship and converting it into a military vessel," said OSI President and CEO Ken Kirkpatrick. "We all benefit, from East to West, when Canadian projects are built by Canadians."

As part of the agreement, OSI will deliver and install an INBS on the Resolve-Class Auxiliary Oiler Replenishment ship. The project involves the conversion of the container vessel M.V. Asterix into an Auxiliary Oil Replenishment (AOR) ship designed to meet the Royal Canadian Navy's (RCN) supply ship requirements.

"There is an imminent need for the ship," said Mr. Kirkpatrick, "and as such we expect an aggressive build schedule – it's an exciting project, and we'll emulate the design we are providing for the Arctic Offshore Patrol Ship program, this will benefit the RCN by providing it with a technically advanced navigation system and an opportunity to encourage bridge design commonality across the fleet."

"By selecting OSI for the Resolve-Class AOR, we are ensuring commonality across the RCN's future fleet as well as helping to strengthen the entire Canadian marine industry," said Alan Bowen, CEO of Davie Shipbuilding. "The bridge and propulsion systems onboard the Resolve-Class AOR will feature certain enhanced functions which will be unique to this class of ship."

OSI's Integrated Navigation and Tactical System (INTS) is a fully scalable, IMO and NATO STANAG 4564 WECDIS compliant INBS that offers a flexible design able to meet the requirements of demanding military environments. Centered around OSI's ECPINS, INTS integrates selected radars and navigation sensors, providing a comprehensive and cost effective military IBS.

Project Resolve: Liberal Government OK's Davie Deal for iAOR

Published by: The National Post - Canadian Press

LEVIS, Que. — After putting the project on hold, the federal government announced Monday the Chantier Davie Shipyard in Quebec will be granted the sole-source contract to provide a temporary supply ship for the navy.

Procurement Minister Judy Foote said the contract, which is valued at up to $587 million, will be given to the shipyard to upgrade a civilian tanker to act as a military replenishment ship while the navy’s long-delayed, joint support ships are built as part of the national shipbuilding program.



“After amassing the facts and carefully deliberating, the Government of Canada determined that proceeding with (Davie) is the most viable course of action to provide the navy’s (temporary) at-sea oil replenishment capacity,” she said in a statement.

The Conservative government had arranged for Davie to retrofit the ship through a sole-source process rather than a competitive one after it was forced to retire its two, 45-year-old replenishment vessels.

At the time the Harper government’s move was unprecedented.

Documents obtained by The Canadian Press revealed a line was added to contracting regulations giving cabinet authority to award a deal to a single company if there are urgent “operational reasons” and it fulfils an interim requirement.

Defence sources had told The Canadian Press that Prime Minister Justin Trudeau put the plan on hold because his government was uncomfortable with the sole-source nature of the arrangement.

The Liberals also faced pressure from the two companies that received contracts in the national shipbuilding program — Irving Shipbuilding, in Halifax, and Seaspan, in Vancouver. Both wrote letters protesting the deal with Davie.

Trudeau’s decision sparked a strong rebuke from Quebec politicians who pointed out the ship was already purchased and in the Davie yard and that hundreds of workers had already been hired.

Foote noted in her statement that the agreement signed by the Conservatives required the government to pay Davie $89 million should the project not proceed.

The minister said the government will “undertake a review of the process” for sole-source contracts for military procurement.

Davie’s work should be completed within two years and the ship is contracted to serve the navy for a period of five years, with an option to renew for up to another five.

The Quebec shipyard estimated the government contract will create 1,100 jobs with the yard, and another 400 with sub-contractors.

Opposition Parti Quebecois member Martine Ouellet said Davie deserved the contract because the yard was left out of the national shipbuilding program.

Without replenishment ships, the navy’s frigates are forced to rely on other nations for ammunition, fuel and food while on long overseas deployments.

It also affects the navy’s ability to deploy more than one warship at a time.

Davie is located in Levis, across the St. Lawrence River from Quebec City

Project Resolve: Shipbuilding Association Fires back at Irving

Originally Published by David Pugliese,

Now this statement was issued Monday by the Shipbuilding Association of Canada after Irving put out a statement that suggested it would have been in a position to build the interim supply ship:

In December 2014, Canada sought proposals for the provision of At-Sea Support Services. These were published on the government’s procurement portal, where the entire Canadian and international marine industry were invited to offer solutions to Canada’s urgent operational requirement for an interim Auxiliary Oiler Replenishment ship service.

Subsequently, the Royal Canadian Navy, the Department of National Defence, and Public Works and Government Services Canada issued a detailed set of requirements from which bidders would present their proposals. Multiple Canadian and international proposals were received. Following an extensive consultation period lasting for six months and subsequent evaluations by those departments, Canada selected the Davie proposal on its merits ahead of other domestic and international bids.

The Resolve-Class AOR design will provide a full replacement of the legacy Protecteur-class AORs. At a reported build cost of around $400m, the Resolve-Class AOR represents great value-for-money compared to a new ship at around $1.5bn. Davie’s pan-Canadian supply chain provides significant economic benefits for the entire shipbuilding industry, including Aecon Pictou, a first tier subcontractor who will build multiple sections of the ship in Nova Scotia.

This was a fair process open to all industry, which followed common sense and resulted in one of the most successful shipbuilding procurements for decades. It demonstrated that Canada is indeed able to fast-track programs when vital for national security. The urgency of the situation required the Department of National Defence and Public Works and Government Services Canada to react expeditiously, efficiently and fairly which they did during the six months of deliberations and evaluations prior to contract award.

The Shipbuilding Association of Canada is surprised and disappointed at claims emanating from certain shipyards – which claim to be at maximum capacity with their federal shipbuilding programs – that they could in some form contribute to the solution in a timely manner and which would not impact further their existing programs.

With claims of being at maximum capacity, Seaspan Ferries placed an order for two ferries for use in Canadian waters, to be built in Istanbul, Turkey. Similarly, Atlantic Towing – a JD Irving company – has recently resorted to building their own ships, for use in Canada, in Galati, Romania.

The association strongly recommends that the government do not delay the signing of the contract for this urgent operational requirement. It has been awarded fairly and with due process.

The association is encouraged by statements from the new government of Canada, late on Friday, that there would be no delay and a positive outcome is expected according to the relevant agreement.

Project Resolve: Irving Claims to have Cheaper/Faster Solution for iAOR

In the drawn out saga-drama that has been the Royal Canadian Navy's attempt top build a new surface fleet - we have hit yet another delay.

Irving was awarded the billion dollar contract to build the Canadian Surface Combatant  (CSC) Fleet, the new Arctic Offshore Patrol Ships, and new Coast Guard Ice Breakers - yet they are upset that they were not chosen to build the interim Auxiliary oil replenishment vessel (iAOR) for the RCN.

The new Queenston-Class AORs are not set to be complete (being built by Irving) until 2021/22. Until then the RCN has no AOR capability and has been leasing Spanish and Chilean AORs to fill the role.

Davie Shipbuilding in Levis, Quebec; one of Canada's largest shipbuilding companies (who built most of the previous RCN fleet) was selected to convert a boxship into an AOR for the Navy. Davie would maintain ownership of the vessel and lease it to the RCN for a period believed to be 7 years, at a cost of $700 million.

Irving sent a letter to the new Liberal cabinet last week and asked them to stop the program and review it. Here is what Irving said:

The letter, obtained by the National Post, is dated Nov. 17. It asks for a pause and review. Two days later, last Thursday, cabinet ordered the pause and review.”In October 2014 Irving Shipbuilding was asked by the Royal Canadian Navy to propose an interim refueling and resupply capability. We assembled an international team of naval and commercial shipping experts to tackle the problem. This included my own experience as a former Vice Admiral in the United States Navy responsible for all ship design, construction, maintenance and conversion in a Navy of almost 300 ships and submarines.

"Our focus was on providing maximum capability with minimum risk, cost, and completion schedule by limiting the amount of conversion required for an existing ship. Early on, we rejected a container ship as too expensive and too risky to convert especially in the relatively short time requested by the government for rapid reconfiguration to meet the immediate needs of the Royal Canadian Navy. The Roll On–Roll Off (RORO) ship selected by Irving Shipbuilding for conversation starts with the right ship to provide tremendous capability, adaptability, and best value to Canada.

"Our proposal includes the ability to refuel two ships simultaneously; land, refuel and maintain helicopters; resupply dry stores and ammunition at sea; and supports modular medical, command and control, and berthing capability. Most importantly, we provide tremendous additional capability that is already inherent in our RORO ship that allows numerous large trucks, military vehicles, and emergency response vehicles to rapidly roll on and roll off via a large stern ramp and vehicle bays. This allows rapid response to humanitarian assistance and disaster relief emergencies at home and abroad, and provides logistics support to military forces ashore. A large open payload volume also already exists to allow for rapid, low cost reconfiguration of the ship to meet future mission needs.

"Our request has and continues to be for an open, merit-based evaluation of all proposals to ensure the best solution for the Navy and best value to Canadians." 

It sounds to me like Irving is upset that it did not get the additional $700 million when it already received the $26.2 Billion contract for the CSC Fleet. In my opinion, if the Queenston-Class AORs are not going to be ready until 2021 why would you further delay them buy building iAORs first? Irving should just get a move on building the Queenston-Class AORs. 

Project Revolve is officially on hold at the government level, but Davie is still working on converting the Asterix into an AOR - and will be owed $89 Million on December 1st if the final contract is not signed; as the previous government entered into an initial agreement, which allowed Davie to begin working while the final contract was finalized. 

Project Resolve: Navy's iAOR on HOLD

According to CBC's James Cudmore - the Liberal government has chosen to delay approval for the final contract to Davie Shipbuilding for the Asterix boxship to be fully converted into an Interim Auxiliary Oil Replenishment Vessel.

According to the CBC, the potential 7-year lease is estimated at $700 million, where the RCN will be given the option to purchase the Asterix at the en of the lease agreemnt.

The Liberal Cabinet commitee decided to delay the decision on whether or not top proceed with with the Project - a delay of possibly 2 months - all while Davie is already doing work.

If the government does not sign the final contract before November 30th, they will owe Davie $89 Million - as it was written into the original offer of intent signed by the Conservative Government.

Davie has already purchased the Asterix and had it delivered to its shipyard in Levis, Quebec earlier this year, and has already begun work.

The big question is whether or not the delay will scuttle the project - and leave the RCN without AOR capabilities until beyond 2021.

The Shipbuilding Association of Canada announced that they are surprised and disappointed in the delay being caused by the Government - saying the delay will only cause more cost to Canadians (as per the $89 million owed to Davie on December 1st if the final contract is not signed, and the potential legal ramifications if the government withdraws from the project - Davie has planned to invest close to $400 million.

According to Davie  they are still moving forward. Project Revolve released this statement:

"The[initial] agreement enabled Davie to commence the build program while the final details of a services agreement (relating to when the vessel enters service following the build) were being concluded and several independent auditors were engaged to assist the Government of Canada with its due diligence.

"We have now agreed all terms and conditions, all audits have been successfully completed and we expect the services contract to be signed before the end of this month.

"In the meantime, work continues onboard m/v Asterix"

CBC sources indicate that Irving Shipyards is to blame for the delay - sending letters to the Liberal Government - asking it to reconsider their initial options for iAORs for the RCN.

There are also allegations from different high-level sources in those same corners that Irving Shipbuilding Inc., a longtime competitor of Davie, meddled in the decision by sending letters to several cabinet ministers about the deal, an event that in the words of one defence source "tipped over the apple cart."

Davie, based in Lévis, Que., has long done government work, but was frozen out of the government's $39-billion National Shipbuilding Procurement Strategy. Irving was that strategy's key beneficiary, winning the lion's share of the work available. The lesser portion of the work, the so-called non-combat package, was awarded to Seaspan in Vancouver.

New supply ships are part of that deal, but none are expected to be operational until 2020 at the earliest, leaving Canada with a significant gap in capability.
Liberal ministers were warned Thursday that without guaranteed access to a supply ship, Canada will have "dramatically diminished capabilities to defend Canada" and to go abroad in support of coalition operations, or to aid in natural disaster or support humanitarian missions, CBC News has also learned.

Davie created the idea of the interim supply ship deal in 2014 and pitched unsolicited to government.

Several sources say the idea was viewed with suspicion by bureaucrats inside the government's shipbuilding offices who worried the proposal would undermine or threaten the National Shipbuilding Procurement Strategy.

The Irving and Seaspan yards subsequently offered their own interim proposals, leading to the bizarre situation of NSPS shipyards offering to build an interim supply ship for Canada that was only necessary because the NSPS program had yet to deliver supply ships.

Whatever those yards offered, the Davie deal appeared to win the Conservative government's favour.
Irving letter to ministers

It's that decision that the Irving team complained about in its letter, obtained by CBC News, and addressed to new Defence Minister Harjit Sajjan and Minister of Public Services and Procurement Judy Foote. The letter was also sent to President of the Treasury Board Scott Brison and Finance Minister Bill Morneau.

In his letter dated Tuesday, James D. Irving, the firm's co-chief executive officer, accused the government of pursuing a sole-source contract with Davie, despite an offer from Irving and Maersk Lines to provide a lower-cost option.

"This was done on a non-competitive basis without transparency and without a full evaluation of cost, delivery schedule, capability and risk associated with the Irving-Maersk proposal.

Irving requested its proposal be evaluated once more, before the government signs off on the Davie deal.

Emails to several Irving staff went unanswered Thursday.

The Davie deal is, indeed, a sole-source arrangement as Irving complained. But cabinet was told Thursday the deal had won an exemption to the government's contracting regulations and that there was little risk it could be successfully challenged.

Davie has already bought the ship it is to convert and has brought it to its yard on the St. Lawrence River near Quebec City.

In a statement, Davie said it had an agreement with the government.

"All audits have been successfully completed and we expect the services contract to be signed before the end of this month."

Project Resolve: iAOR to Provide Strategic Humanitarran Assistance and Disaster Relief

News Release from Project Resolve

As failed states, conflict, natural disasters, famine and epidemics continue to plague the globe, Canada will increasingly be called upon to render Humanitarian Assistance and Disaster Relief (HADR) to those affected.

The Resolve-Class Auxiliary Oiler Replenishment ship will play a key role in the Royal Canadian Navy’s HADR efforts from 2017. While the primary role of the Resolve-Class AOR is to conduct underway replenishment for the Canadian Task Group and other allied warships, a significant number of design elements have been incorporated into the ship’s design to support the HADR mission.

An Artists Rendition of the iAOR Asterix aiding in a Rescue at Sea

The specific HADR capabilities include:

• A humanitarian processing area for triage and care of evacuees/survivors
• A large medical facility for up to 60 patients in two separate wards
• Emergency accommodation for up to 350 people (in addition to the ship’s current 150 persons capacity)
• A ship-shore airlift capability via the two embarked Cyclone CH-148 helicopters
• A significant small craft capability that includes up to 8 boats with quick launch and recovery capabilities
• The ability to sustain the delivery over 400t/day of Fresh Water and up to 7000t of Fuel Oil, as well as significant power
• The transportation and self-sufficient loading and unloading of light vehicles, sea containers and general cargo that are essential for HADR missions.

Spencer Fraser, CEO of Project Resolve today commented “We are extremely proud to be able to fill the current gap and provide Canada with a strategically enabling naval asset for HADR missions. We incorporated HADR requirements into the ship’s design from the very start and we are confident that the ship and its Canadian crew will successfully meet the Government of Canada’s goals of providing effective and responsive humanitarian and disaster assistance where and when called upon.”

Project Resolve: DRS Technologies Selected for iAOR

DRS Technologies Canada will be providing integrated communications systems to Chantier Davie Canada and Project Resolve Inc. for the Royal Canadian Navy’s (RCN) Auxiliary Oiler Replenishment (AOR) ship program.

The AOR ship program is an important interim capability to supply at-sea Canadian naval forces with fuel, ammunition, water, spare parts and food. The DRS integrated communications system will include all internal tactical and secure voice switching systems and terminals; communication systems required under Safety of Life at Sea regulations; the entertainment, broadcast and alarms systems; and the networks system.

It leverages the DRS Shipboard Integrated Communications system, SHINCOM 3100, developed in Canada and currently operating on the RCN’s Halifax-class Frigates and other multi-national naval ships.

“This is a tremendous opportunity for DRS to deliver the SHINCOM 3100 system to the Royal Canadian Navy leveraging the existing installed base with the Canadian Halifax-class, Royal Australian Navy, Royal New Zealand Navy and United States Navy,” said Steve Zuber, vice president and general manager of DRS Technologies Canada Ltd. “This program will facilitate interoperability and the ability to share technology and applications, ensuring that SHINCOM 3100 remains the premier internal communications system for years to come, and a fleet standard,” Zuber said.

“Project Resolve will provide the RCN with an urgently needed and essential replenishment at-sea capability,” said Spencer Fraser, chief executive officer of Project Resolve Inc. “We are extremely proud to have assembled an impressive pan-Canadian supply chain that will feature ‘best-of-breed’ naval technologies developed and produced here at home by Canadian personnel. DRS Technologies Canada Ltd. is a trusted partner with an outstanding pedigree of providing and supporting the RCN and exporting Canadian secure naval communications technology worldwide. The company will be bringing a very modern and proven capability to our AOR solution.”

Project Resolve: Navy Isn't Interested in 2nd iAOR

With Project Resolve now fully underway, and an official agreement reached between Davie Shipbuilding and the Government of Canada, the conversion of the Asterix boxship into an Navy AOR is taking place. The Asterix will be ready by summer 2017, and will serve as the Royal Canadian Navy's main AOR until the Queenston-Class AORs (based on the Berlin-Class) arrive sometime between 2020-2021.

Yesterday, Davie made an offer to the Navy to convert a second boxship for the Navy - a sister ship to the Asterix could be converted, and be ready for service by 2018 according to Davie.

The Royal Canadian Navy is not interested. Instead they will lease a Chilean AOR and a Spanish AOR for training purposes throughout 2016.

This almost immediate refusal of the offer comes with the question why not? The lease agreements with Davie could save the RCN money, and when the conversions only cost $400 million - less than half the cost of building an AOR (estimated to be around $1 Billion) Why would the Navy not agree to the solution? Even once the Asterix is ready, the Navy will only have one AOR; therefore one coast will be without the AOR services, unless a foreign AOR is also leased - so why not lease domestically?

Maybe a new government on October 20th will convince the Navy that this is a good deal, and should take the offer. Give jobs to Canadians.

Project Resolve: Asterix iAOR to be ready by 2017

Davie Shipbuilding announced on October 8, 2015 that the Asterix had been successfully delivered to its ship yard in  Levis, Quebec, and the final transfer of ownership is complete.

Davie and Project Resolve, will now being retrofitting the Asterix to become an intermediate Auxiliary Oil Replenishment (iAOR) ship for the Royal Canadian Navy until its new Berlin-Class (to be named Queenston-Class) are built.

The Asterix will then operate on a leased basis from Davie to the RCN. Davie announced that they expect the vessel to be delivered and entered into service during the summer of 2017.

Project Resolve: Asterix to Salvage Parts from HMCS Protecteur

This is a follow-up to my previous post on Project Resolve.
below is an article written by David Pugliese for Defence Watch.

The Following Article was written by DAVID PUGLIESE, OTTAWA CITIZEN

The Asterix, the commercial ship purchased by Davie for Project Resolve is on its way to Canada. Resolve will provide an interim AOR capability to the Royal Canadian Navy because of the delay in acquiring the Joint Support Ships (estimated time of arrival for the navy on the first JSS is 2020, 2021 for the second).

Davie and its team will refurbish Asterix into a refueling/resupply vessel and then provide this service to the RCN under a lease agreement.

Work is still being done on the final proposal and that still needs Treasury Board approval.

When will that approval happen?

It is unclear at this point.

Davie has received some initial money from the government but that runs out later this year.

The Canadian government will have to decide on a five or seven-year lease for the provision of such services.

The ship will arrive at Aecon’s Pictou, Nova Scotia shipyard where Project Resolve engineers will do some initial work, sources have told Defence Watch.

From there it will be sent to Davie yards in Quebec– the plan is to make sure the ship reaches there before winter sets in.

The ship will be later transferred to the West Coast so the replenishment at sea (RAS) system from HMCS Protecteur can be installed, sources told Defence Watch. The RAS system was not damaged in the 2014 fire that led to the decommissioning of Protecteur. Sea trials on the refurbished Asterix will be done on the West Coast.

Davie hopes the whole process will take about 15 months from the date a contract is signed.

Project Resolve: RCN's Interim Supply Ship

There is new(er) news about Project Resolve. Please be sure to also read: Asterix to Salvage Parts from HMCS Protecteur & Asterix iAOR to be ready by 2017

During election campaign, people expect little more than future promises on Defence issues - but we got news the other day that the Government has signed a letter of intent with Davie Shipbuilding in Levis, Quebec to retrofit a civilian container ship, the Asterix (a 1,702 TEU Boxship).

(*TEU - a Unit of Measurement = Twenty-Foot Equivalent Unit (i.e. a 20 Foot Sea Container))

According to several sources Davie Shipbuilding has purchased the Asterix for around $20 million and will spend upwards of $350 Million on retrofitting it to meet the Royal Canadian Navies requirements. 

For this all to take place,the Government was required to change its rules on sole-sourcing defence purchases. Otherwise, multiple firms would have been required to bid for the project, which could have led to further delays. 

The Government quietly added a line to the contract back in June 2015, that allows a deal to move forward to a single company, if the requirements are "urgent operational reasons, and fulfills an interim requirement."  This can possibly set a dangerous precedent for future projects or governments, as what defines urgent or interim? 

Little is known about the final ownership of the Asterix. It is highly unlikely that the ship will be owned by the Royal Canadian Navy - as it is Davie who reportedly purchased the ship. In all likelihood, Davie will then lease the ship to the Navy on a long-term basis until the planned Queenston-Class AOR vessels are built (The first in late 2020). The estimated cost for the lease - between $65 and $75 Million per year. What will happen to the Asterix after all 3 Queenston AORs are operational? That is another unanswered question - it will most likely continue to operate as a broader part of the Navy, most likely helping out on more humanitarian missions or as a central command ship for larger international deployments. The modified Asterix is expected to be in service for at least the next 20 to 25 years. There are no reports about whether or not Davie will sell the ship to the Navy at the end of the initial lease agreement. 

The Royal Canadian Navy currently does not have a supply ship, and temporarily rented a Chilean Supply Ship for exercises on the West Coast, and have leased a Spanish supply ship for the East Coast.  The Asterix will give the RCN supply capability until the Queenston-Class AORs arrive, but will also allow the Navy to maintain a high level of training on supply vessels. 

The Asterix is currently capable of carrying 1,702 twenty-foot sea containers. Davie will convert the ship into a Naval Supply Vessel, capable of replenishing other Navy vessels at sea. 

The conversion will include, modifying the hull and ballast systems, to be capable of carrying 10,000 liters of spare fuel. A landing pad will be added to the ship, large enough to allow for two Chinook sized helicopters to use it. Although it is more likely that the Cyclones will operate off of the ship. Accompanying the landing pad, will be two hangers for the ships own aircraft be to be stored. Accommodations for up to 350 personnel, including a large medical facility (mobile hospital) and a command center. Unlike the Queenston-Class, no mention of any weapons systems have been added to the design of the Asterix. 

Once all the modifications are complete, the ship will also be able to carry an additional 40 twenty-foot sea containers. (Down form the 1,702) 

The project name Davie Shipbuilding is using for this overhaul - Project Resolve, which has led to the nickname Resolve-Class AOR for the Asterix. It is currently only a temporary name, but I think HMCS Resolve has a nice ring to it.