HALIFAX, N.S. - Irving Shipbuilding has begun construction of Canada's first Harry DeWolf class Arctic Offshore Patrol Ship at its shipyard in Halifax, Nova Scotia. The shipyard has cut steel that will be used on the center section of the first ship. Canada signed a contract with the shipbuilding in January 2015 for the construction of six ships, but the agreement only guarantees the delivery of five ships.

The first ship will be delivered in 2018, with subsequent ships delivered every nine months. The final delivery will take place in 2022. The 5,200-ton ships are 103.6 meters long, and have an open-water speed of 17 knots, and a range of 6,800 nautical miles. Each ship will be manned by a fleet of 65 personnel. The contract includes a construction cost ceiling of CAD2.3 billion, up from CAD2.1 billion. Total program costs have increased from CAD3.1 billion to CAD3.4 billion. These figures include CAD1.2 billion for infrastructure, ammunition, spare parts, and contingency funds.

The program initially included the construction of eight ships, but was subsequently scaled back to between six and eight ships. In October 2014, the Canadian Press reported that the program had been reduced again to five ships, with an option for a sixth. The actual construction contract has a target of six ships, but if costs increase too much, only five ships will be delivered under the same CAD2.3 billion construction cost ceiling. The shipbuilder's fee will increase if the program comes in under budget, and the fee drops if the number of ships is reduced. This structure provides incentives for the shipbuilder to delivery all six ships, but serves as no guarantee.

Irving was selected in October 2011 to construct the ships under Canada's revised shipbuilding strategy. The company was awarded a preliminary CAD9.3 million contract in July 2012 to conduct a review of the existing A/OPS design and specifications and create an execution strategy for the A/OPS project. In March 2013, the shipbuilder signed a contract for the definition phase of the program, valued at up to CAD288 million.

Source: Irving Shipbuilding
Associated URL: http://www.irvingshipbuilding.com/BlogPage.aspx?id=609&blogid=315
Author: S. McDougall, North America Analyst