Issue of Amendment to the Victoria-class In-Service Support Contract (VISSC)

Awarded

Introduction & Contract PeriodThis notification is to provide notice of the issuance of an amendment to the VISSC with Babcock Canada Inc.The contract amendment increases the Contract Period by two (2) years, for a current Contract Period of seventeen (17) years commencing July 1st, 2008 up to and including June 30, 2025. The contract amendment also includes irrevocable options to extend the Contract Period with two (2) one (1) year option periods, which if exercised by Canada, provide a total VISSC Contract Period of up to nineteen (19) years commencing July 1st, 2008 and up to and including June 30, 2027. The total value of the amendment is $263,855,000.00, increasing the current contract ceiling from $1,703,632,647.93 to $1,967,487,647.93 (including applicable taxes).Summary of VISSC I Contract Period:Term, Year(s) - Duration, StatusTerm #1, 2008-2013 - 5 years, Contract AwardedTerm #2, 2013-2018 - 5 years, Option ExercisedTerm #3, 2018-2021 - 3 years, Option ExercisedTerm #4, 2021-2022 - 1 Year, Option ExercisedTerm #5, 2022-2023 - 1 Year, Option ExercisedTerm #6, 2023-2025 - 2 Years, Contract extended viaamendmentTerm #7, 2025-2026 - 1 Year, Future optionTerm #8, 2026-2027 - 1 Year, Future optionBackgroundIn 1998, DND acquired four decommissioned Upholder-class long-range diesel-electric patrol submarines, built for the British Royal Navy between 1986 and 1993. The four submarines were acquired through the Submarine Capability Life Extension capital project.The submarines were subsequently renamed the Victoria-class Submarines, and commissioned into active service as follows:HMCS VICTORIA (December 2000);HMCS CORNER BROOK (June 2003);HMCS WINDSOR (October 2003);and HMCS CHICOUTIMI (September 2004).VISSC was awarded in 2008 to the Canadian Submarine Management Group, now know as Babcock Canada Inc. to assist the Department of National Defence in delivering on the requirement to sustain and perform in-service support to meet the Royal Canadian Navy’s operational mandates. VISSC supports the Department of National Defence in delivering on these requirements by performing work in areas associated with:project management oversightEngineering servicesMaterial acquisition and logistics supportRecords supportMaintenance services, including the extended docking work periodThe original life expectancy of the Victoria-class Submarines was the mid-to late-2020s. However, with the release of Canada’s Defence Policy, Strong, Secure, Engaged in June 2017, Canada has committed to operating and modernizing the Victoria-class Submarines to ensure their continued effectiveness out to the mid-2030s.Currently, these four vessels participate in maritime exercises at home and overseas, assert Canada’s sovereignty by patrolling coastal waters on all three bordering oceans, and participate in international peace and security operations.The Victoria-class submarines operate in open-ocean and deep-sea environments, where they are exposed to pressure-induced stresses resulting from changes in depth, extreme weather conditions, and the corrosive properties of seawater on an on-going basis. As such, these vessels, like all submarines, face significant wear and tear, which necessitates a rigorous in-service maintenance schedule to assure the safety of the crew and the submarine.The National Security Exception was invoked for VISSC.Submission of InquiriesIt is requested that any inquiries concerning this notice are submitted to TPSGC.PACommunicationCSSV1-APVISSC1Communications.PWGSC@tpsgc-pwgsc.gc.ca

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