Government awards contract to support Halifax Class Ships and boost economy

For immediate release

GATINEAU, Quebec, April 2, 2009 – The Honourable Christian Paradis, Minister of Public Works and Government Services, the Honourable Peter Gordon MacKay, Minister of National Defence and Minister for the Atlantic Gateway, and the Honourable Tony Clement, Minister of Industry, today announced that the Government of Canada awarded a contract to Rheinmetall Waffe Munition GmbH of Schneizlreuth, Germany, to provide 14 Ship’s Offboard Passive Electronic Countermeasures Systems (ECM) for the Halifax Class Ships.

The ECM System, which is an integral and critical component of the vessels’ anti-missile defence, is made up of shipboard launchers and rounds used to counter radar-guided missiles.

“This government continues to deliver leading-edge technology for the Canadian Forces and concrete results for our economy,” said Minister Paradis.

“The safety and security of our forces is paramount on any operation,” said Minister MacKay. “The replacement of these SHIELD systems will ensure that Canada’s Halifax Class Frigates and their crews have a top-shelf defensive capability to protect themselves, while protecting Canadian interests at home and abroad.”

The five-year contract will provide for the design, manufacturing, documentation, training and engineering support of the ECM System.

The Industrial and Regional Benefit (IRB) Policy applies to this procurement. It requires that the contractor undertake business activities in Canada valued at 100 per cent of the contract value and thereby ensures that federal defence procurements will generate long-term industrial and regional development in Canada.

“I am pleased that through the IRB Policy, every contract dollar awarded is re-invested back into the Canadian economy,” stated Minister Clement, “The contractor has committed to generating high quality and lasting economic activity in the Canadian economy.”

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For further information, please contact:

Mary-Ann Dewey-Plante
Press Secretary
Office of the Honourable Christian Paradis
Minister of Public Works and Government Services
613-218-6961

Media Relations
Public Works and Government Services Canada
819-956-2315

Jay Paxton
Press Secretary
Office of the Honourable Peter MacKay
Minister of National Defence and Minister for the Atlantic Gateway
613-996-3100

Media Liaison Office
Department of National Defence
613-996-2353/2354

Pema Lhalungpa
Press Secretary
Office of the Honourable Tony Clement
Minister of Industry
613-995-9001

Media Relations
Industry Canada
613-943-2502

PWGSC news releases are also available on our Internet site at: http://www.tpsgc-pwgsc.gc.ca/medias-media/index-eng.html.

BACKGROUNDER

The Government of Canada is providing the Canadian Forces with the equipment they need to operate at home and abroad, while creating jobs and supporting our home-grown industries.

The Ship’s Offboard Passive Electronic Countermeasures Systems (ECM) contract, with an estimated value of $23 million (including GST and HST), will provide for the design, manufacturing, documentation, training and engineering support of the ECM System used in the Halifax Class Ships for five years.

The Halifax Class frigates were built in early 1990 and now require upgrades and systems modernization, particularly in the areas of marine engineering, command, control and combat systems. Today’s contract is part of a larger multi-year modernization project to upgrade Canada’s 12 Halifax Class frigates. Two of the ECMs will be used at on-shore facilities, while the other 12 will be used on the vessels.

In April 2008, the government announced that it was awarding contracts to the Halifax Shipyards and Victoria Shipyards Companies to provide ongoing maintenance and refit of the frigates. A contract was awarded in November 2008 to Lockheed Martin for the Combat Systems Integration (CSI) Design and Build and In-Service Support elements of the frigates. Finally, in December 2008 L-3 Communications MAPPS Inc. was awarded a contract for an Integrated Platform Management System (IPMS).

Today’s announcement is good news for the Canadian Forces and Canadian taxpayers. As a result of the contract, Rheinmetall estimates that they will maintain five full-time positions in Ontario and Québec.

Furthermore, through industrial and regional benefits, the ECM contract will also boost the Canadian economy by providing for 100 per cent of the value of the contract in direct and indirect industrial and regional benefits. This means that under the terms of the contract, Rheinmetall is required to invest in the Canadian economy, dollar for dollar, what it receives from the contract.

ECM will provide the men and women of the Canadian Forces with the anti-missile defence system they need to protect the Halifax Class Ships.