Government Announces LOI with Chantier Davie and Federal Fleet Services

August 1, 2015 – Ottawa, ON – Government of Canada

The Government of Canada has signed a Letter of Intent (LOI) with Chantier Davie Canada Incorporated and Federal Fleet Services to continue discussions on pursuing an at-sea support services contract, Defence Minister Jason Kenney announced today.

The LOI provides Chantier Davie and Federal Fleet Services with the ability to start limited activities to advance the schedule. It will also provide some financial protection to the shipyard for these expenses, should a contract not be awarded. Any proposed costs would be pre-approved by the government, which will require Davie to provide a rationale in every instance.

The first Joint Support Ship (JSS) is anticipated to be operational in late 2020. The JSS will provide a robust warfighting capability with all military crewing and contain the capacity to be continuously upgraded over the next 30 to 40 years to meet the Navy’s evolving operational requirements. An interim supply ship will provide a more modest capability and will not conduct full-spectrum military operations in high-threat environments.

Quick Facts

•  The Royal Canadian Navy (RCN) relies on the capability provided by Auxiliary Oil Replenishment ships (AORs) to supply fuel, ammunition, water, spare parts and food to individual ships or naval task groups, as well as to support task group helicopters.

•  In order to assist the RCN to meet their missions over the next several years, the Government of Canada has decided to take the next step with a Letter of Intent with Chantier Davie Canada Inc. and Federal Fleet Services. to pursue discussions regarding interim supply ship services.

•  The objective is to provide an at-sea replenishment service to RCN. This is directly linked to the Canadian Armed Forces operational readiness in support of national security and the fulfillment of Canada’s national and international obligations. It could also add significant additional capabilities, such as medical and aviation support and enhanced command and control.

•  Interim supply ship services will help sailors acquire and retain key skill sets needed to operate Queenston-class JSS once they are delivered.

Quotes

“We are making progress in pursuit of an interim supply ship capability for the Royal Canadian Navy. Our priority is to allow our sailors to operate more freely around the world while keeping crews’ skills up to date in anticipation of the arrival of the more robust Queenston-class ships.”

The Honourable Jason Kenney, Minister of National Defence