Question Period Note: Renewal of the Fleet

• In 2019, the Government announced the largest investments ever made to renew the Canadian Coast Guard fleet with up to 24 new large ships: up to 16 Multi-Purpose Vessels, two Arctic Offshore Patrol Ships and up to six Program Icebreakers.
• I have also been working with my colleague, the Minister of Public Services and Procurement, to explore options to ensure efficient delivery of a Polar Icebreaker for the Coast Guard.
• Our significant commitment to renew the Coast Guard fleet will provide our crews with state of the art tools and preserve the world class marine safety regime that Canada enjoys.
• Interim measures such as the acquisition of three medium icebreakers and investing in vessel life extension work have been put in place to ensure that the Coast Guard can continue deliver essential services for Canadians from coast to coast to coast.
Offshore Oceanographic Science Vessel
• The total budget for the Offshore Oceanographic Science Vessel project is now $966.5m. This includes all costs from initial concept work to transit to home port and spare parts.
• On February 18, 2021, Canada announced the build contract award for this vessel to Vancouver Shipyards for $453.8m, taxes included. Construction is expected to begin in spring 2021, with delivery expected in 2024.
• The Oceanographic vessel will replace CCGS Hudson, Canada’s oldest and largest science vessel. It will contribute to our understanding of the oceans and impacts of climate change over the next 30+ years.
• When first announced in 2007, the budget was based on best estimates at that time. However, as the project progressed, project costs increased to reflect the value of negotiated contracts, actual incurred costs, and improved costing.
• Coast Guard remains committed to ensuring best value for money and will continue to work with Vancouver Shipyards to deliver the vessel within the allocated project budget.

Icebreaking Fleet
• Coast Guard icebreakers are essential to Canada’s economy by supporting year-round marine trade and ensuring the safe passage of goods to keep our economy moving.
• By investing in six new Program Icebreakers, the Government has taken steps to ensure the continuation of essential icebreaking services in Atlantic Canada, the St. Lawrence and the Great Lakes, as well as the Arctic.
• In addition to the Program Icebreakers, we will also deliver a Polar Icebreaker to provide enhanced capabilities for science and sovereignty missions in the Arctic.

On the Third Yard
• The Request for Proposal process is currently underway to qualify a third shipyard under the National Shipbuilding Strategy. It is being led by Public Services and Procurement Canada and is expected to conclude in 2021.
• Once that is completed, negotiations will begin for a potential Umbrella Agreement expected to be in place in 2021.

Condition of the Fleet
• Our government is actively investing in the Coast Guard’s current fleet to extend their lives so that the Coast Guard remains ready to serve Canadians until new ships are delivered under the National Shipbuilding Strategy. The Canadian Coast Guard fleet has a rigorous maintenance plan for each of its vessels to keep them in safe, reliable working condition.
• Building new ships takes time. Until new assets are delivered, the Coast Guard is actively ensuring continued service delivery for Canadians - by undertaking vessel life extension work for existing ships and acquiring commercial vessels as required.

• Renewal of the Canadian Coast Guard fleet is underway. Funded replacement plans are currently in place for up to 29 large ships, including:
o Three Offshore Fisheries Science Vessels, which have all been delivered;
o One Offshore Oceanographic Science Vessel;
o One Polar Icebreaker;
o Up to 16 Multi-Purpose Vessels;
o Two Arctic Offshore Patrol Ships (Coast Guard variants of ships currently in construction for the Department of National Defence); and
o Up to six Program Icebreakers.
• The National Shipbuilding Strategy (NSS) is delivering ships for the Canadian Coast Guard. The first Offshore Fisheries Science Vessel, CCGS Sir John Franklin, was delivered by Vancouver Shipyards on June 27, 2019. The second ship, CCGS Capt. Jacques Cartier, was delivered on November 29th 2019 and the third and final ship, CCGS John Cabot, was delivered on October 9, 2020.
• The Government is exploring options to ensure the efficient delivery of the Polar Icebreaker. In February 2020, Canada released a Request for Information seeking information on domestic shipyard capability and capacity to construct a Polar Class icebreaker within required timeframes. While no decision has been made, both Vancouver Shipyards and Chantier Davie have announced plans and partnerships to support construction of the ship.
• Coast Guard is also renewing its small fleet. Nineteen new small vessels have already been delivered, including two new Channel Survey and Sounding Vessels and eight new Search and Rescue Lifeboats that have joined the fleet in the past few years. An additional 12 Search and Rescue Lifeboats are currently in construction at Hike Metal Products, in Wheatley, Ontario and Chantier Naval Forillon, in Gaspé, Quebec.
• Coast Guard has also completed the renewal of its helicopter fleet with 15 new light-lift helicopters and seven new medium-lift helicopters. These assets are currently in operation. Coast Guard is also currently in the process of acquiring a 16th light helicopter.
• The Coast Guard is putting in place interim measures and investing in vessel life extension work to ensure continued delivery of critical services and minimize impact on our programs until new ships are delivered. This includes:
o A comprehensive Vessel Life Extension program to maintain the current fleet operational as new ships are being built;
o Acquisition of three interim icebreakers- the first, CCGS Captain Molly Kool, came into service December 2018. The second, CCGS Jean Goodwill, joined the Coast Guard fleet in late 2020. Delivery of the third ship, CCGS Vincent Massey, is expected in 2021; and,
o A revised RFP to procure a fourth interim ship (a light icebreaker) was released in mid-September 2020 and closed on November 17th. Bid evaluation has occurred and contract award is planned for the spring.

Announcements:

• On May 22nd, 2019, the Prime Minister announced a renewal of the Canadian Coast Guard fleet with up to 18 new large ships built in Canadian shipyards, helping the Coast Guard continue to deliver its important services, and creating good, middle class jobs across the country.
o Total funding for the 18 large ships is $15.7 billion, which represents early estimates of project budgets including construction, logistics and support, contingency, project management and infrastructure costs. The costs of each ship class will be announced following contract negotiations.
o Irving Shipbuilding will build two non-combat Arctic and Offshore Patrol Ships, which will be adapted for the Coast Guard to perform a range of critical mission, including Northwest Atlantic Fisheries Organizational patrols.
o Vancouver Shipyards will build up to 16 Multi-Purpose Vessels to support a variety of missions, including light icebreaking, aids to navigation, environmental response, and offshore search and rescue.
o The 16 Multi-Purpose Vessels would replace the Polar Icebreaker in Vancouver Shipyards’ program of work, and the Government would explore options to ensure the efficient delivery of the Polar Icebreaker.
 On October 11, 2020, John Horgan, NDP Leader for the province of British Columbia, announced that if re-elected they would launch a long-term shipbuilding strategy and push the federal government to have the next Polar Icebreaker built in the province.
• On August 2, 2019, the Government of Canada announced that six new Program Icebreakers would be constructed for the Canadian Coast Guard.
o The total value of the investment was not announced to ensure value for money is achieved in the contracting process.
o The Government intends to add a third strategic partner for large ship construction under the NSS to build the six Program Icebreakers. This additional shipbuilding capacity is needed to meet Coast Guard’s urgent requirements for replacements for its aging Medium and Heavy Icebreakers.
o The Government of Canada issued an Invitation to Qualify (ITQ), to establish a short list of shipyards that demonstrate they meet the initial, defined requirement to build six program icebreakers for the Canadian Coast Guard. In December 2019, it was announced that Chantier Davie had pre-qualified to become the third shipyard.
o Public Services and Procurement Canada is currently in the second stage of the procurement process to qualify a third shipyard under the NSS. The Request for Proposal was released to Chantier Davie in late July 2020 and is expected to close in spring 2021.
• The Government of Canada will also proceed through a competitive process with the design of a new class of smaller ships, the new Mid-Shore Multi-Mission ship, which would complement the work of the large fleet in shallow areas and deliver mid-shore science activities.

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