National Shipbuilding Procurement Strategy

The National Shipbuilding Procurement Strategy (NSPS) is an unprecedented long-term, multi-billion dollar commitment to renewing Canada's federal fleet. The NSPS will accomplish this by establishing strategic partnerships with two shipyards, with one building combat vessels and the other non-combat vessels. This strategy will help build and maintain an effective federal fleet for maritime security and services while maximizing economic benefits across the country.

Of the funds identified within fleet renewal plans of the Navy and Coast Guard, only a portion of this amount would go to the two winning shipyards. The rest would flow to the broader marine industry, including the project management design and combat sectors. This approach will create significant opportunity for suppliers across Canada and will facilitate the development of advanced technologies and sustained innovation.

Canada's marine industry is a key economic driver and the lifeblood of many communities across the country. The federal government believes in the strategic importance of this industry and is committed to making its fleet renewal a key contributor to the industry's long-term well-being.

The NSPS will provide a framework to promote continuous improvement in the industry, while enabling significant cost savings from a long-term, steady work flow. The Strategy will help the industry avoid the boom and bust cycle that has characterized industry activity in the past. Communities across the country will benefit because this strategy creates and sustains highly skilled jobs for Canadian companies, including small and medium-sized enterprises.

Industrial and Regional Benefits Policy (IRB)

The IRB Policy will apply to the two large NSPS shipbuilding packages. Prime contractors will be required to undertake IRB business activities in Canada valued at 100 percent of the contract value, thereby ensuring a dollar for dollar investment into the Canadian economy. Administered by Industry Canada, the IRB Policy leverages major government procurements to encourage long-term industrial development and significant economic activity in Canada.

More information on Canada's IRB Policy can be found at: www.ic.gc.ca/irb.

For more information on the National Shipbuilding Procurement Strategy, please contact Industry Canada Media Relations at 613-943-2502.