Supplementary information tables

Status report on transformational and Major Crown Projects

Offshore Oceanographic Science Vessel

Description: The Offshore Oceanographic Science Vessel project will acquire a replacement vessel for the Canadian Coast Guard's largest science vessel, the Canadian Coast Guard Ship (CCGS) Hudson. This vessel was built in 1963 and its replacement is critical to fulfilment of the Department's science mandate as well as mandates of other government departments and agencies. The vessel currently operates on the east coast of Canada.

Project outcomes: Project outcomes contribute to the Fleet Operational Readiness program in Fisheries and Oceans Canada’s Program Alignment Architecture.

Industrial benefits: Canadian industry will benefit from this project. Regional distribution will be determined at shipbuilding contract award. Canada's Policy on Industrial and Regional Benefits, as well as the Value Proposition provisions of the umbrella agreement with Vancouver Shipyards under Canada’s National Shipbuilding Strategy applies to the construction phase of this project.

Sponsoring department: Canadian Coast Guard, Fisheries and Oceans Canada

Contracting authority: Public Services and Procurement Canada

Participating departments: Innovation, Science and Economic Development Canada; Environment and Climate Change Canada; Natural Resources Canada; Treasury Board Secretariat; Privy Council Office; Indigenous and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

Prime contractor: Vancouver Shipyards Co. Ltd. (Seaspan) under the National Shipbuilding Strategy subject to successful conclusion of contract negotiations

Major subcontractors: VARD Marine Inc., Vancouver, British Columbia, Canada (Naval Architecture and System Engineering Services)

Project phase: Definition Phase – A construction engineering contract was awarded in November 2015 to initiate work required in preparation for construction.

Major milestones:

  • July 2008 - Preliminary project approval;
  • April 2010 - Request for proposal for design issued;
  • June 2010 - Amended preliminary project approval;
  • October 2010 - Government of Canada announced that the Offshore Oceanographic Science Vessel would be built under the National Shipbuilding Strategy;
  • October 2010 - Contract award for design;
  • November 2011 - Design contract completion;
  • November 2015 - Contract award for construction engineering;
  • 2018 - Contract award for shipbuilding; and
  • 2020 - Tentative delivery of Offshore Oceanographic Science Vessel.

Progress report and explanation of variances: The Offshore Oceanographic Science Vessel project was initially approved in July 2008 at a total estimated cost of $108.9 million for the procurement of one vessel. In 2009, Treasury Board authorized a transfer of $35.5 million from the Offshore Fisheries Science Vessels project to the Offshore Oceanographic Science Vessel project in light of revised funding profiles to procure these vessels. As a result, the Offshore Oceanographic Science Vessel project currently has a revised total estimated cost of $144.4 million (under review).

To date, Treasury Board has granted $73.4 million to the project for the definition phase, including construction engineering. The Offshore Oceanographic Science Vessel project is progressing under Canada’s National Shipbuilding Strategy and as such, project milestones, including the delivery date and final cost are subject to negotiations with Vancouver Shipyards, the shipyard selected for the non-combat work package.

The vessel is tentatively expected to be delivered in 2020. The warranty period and project closeout will occur thereafter.

Polar Icebreaker Project

Description: The new polar icebreaker is expected to be delivered in time for the decommissioning of the CCGS Louis S. St-Laurent. The new polar icebreaker will help strengthen Canada's Arctic sovereignty. The vessel will be able to operate in the Arctic in more difficult weather conditions and for a longer period of time, three seasons instead of the current two seasons.

Project outcomes: Project outcomes contribute to the Fleet Operational Readiness program in Fisheries and Oceans Canada’s Program Alignment Architecture.

Industrial benefits: Canadian industry will benefit from this project. Regional distribution will be determined at shipbuilding contract award. Canada's Policy on Industrial and Regional Benefits, as well as the Value Proposition provisions of the umbrella agreement with Vancouver Shipyards under Canada’s National Shipbuilding Strategy applies to the construction phase of this project.

Sponsoring department: Canadian Coast Guard, Fisheries and Oceans Canada

Contracting authority: Public Services and Procurement Canada

Participating departments: Innovation, Science and Economic Development Canada; Treasury Board Secretariat; Privy Council Office; Indigenous and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Environment and Climate Change Canada; National Defense and the Canadian Armed Forces.

Prime contractor: VARD Marine Inc., Vancouver, British Columbia, Canada (for design services)

Major subcontractors:

  • Aker Arctic (hull form design and optimization);
  • Imtech (electrical engineering design services);
  • SNC Lavalin (integrated logistics support services); and
  • Indal/Curtiss Wright (ship borne helicopter integration.

Project phase: Definition Phase - The Canadian Coast Guard has completed the design phase of the Polar Icebreaker Project.

Major milestones:

  • June 2009 - Preliminary Project Approval;
  • June 2010 - Government of Canada announced that the polar icebreaker would be built under the National Shipbuilding Strategy;
  • November 2010 - Contract award for design;
  • 2018 - Contract award for construction engineering;
  • 2021- Contract award for construction; and
  • 2024- Delivery of Polar Icebreaker.

Progress report and explanation of variances: Federal Budgets 2008 and 2012 allocated funding for the procurement of Canada’s first polar icebreaker. Total funding of $1,297.8 million has been earmarked for the execution of this project. In June 2009, Treasury Board’s Preliminary Project Approval granted $36.3 million to begin the definition phase of the project.

In October 2013, the Government of Canada announced, under the National Shipbuilding Strategy, that the polar icebreaker would be constructed by Vancouver Shipyards, following the completion of the Royal Canadian Navy’s Joint Support Ships. Accordingly, project milestones were re-defined and the project entered a period of reduced activity pending advancement of earlier projects and the capacity of Vancouver Shipyards to enter the implementation phase of the project.

The Canadian Coast Guard has committed to keeping its largest and most capable heavy icebreaker, CCGS Louis S. St-Laurent, in service at least until the delivery of the polar icebreaker. The final of three detailed design stages was completed in 2014-15 by VARD Marine, including an appraisal by Lloyd’s Register, a Transport Canada-certified Classification Society. Vard Marine remains engaged in ongoing design maintenance and technical risk mitigation work, albeit at a reduced pace.

Construction engineering is expected to begin in 2018 with vessel delivery now expected in 2024. The warranty period, post-delivery performance trials and final acceptance will follow thereafter.