Canada Awards $1.1 Billion Submarine Maintenance Contract to Babcock Canada

The Government of Canada awarded Babcock Canada a six-year, $1.1 billion contract extension to provide in-service support for the Royal Canadian Navy's Victoria-class submarines. This agreement extends the Victoria In-Service Support Contract, ensuring the maintenance of four aging submarines, which are nearly 40 years old and considered an orphan class, until they are retired in the mid-2030s.

Babcock Canada has served as the sustainment partner for over 18 years, contributing $3.2 billion to Canada's GDP since 2008 and supporting more than 1,500 annual jobs and 450 suppliers. CEO Tony March emphasized that the extension is critical for maintaining the specialized industrial workforce and expertise required to bridge the gap to the next generation of vessels.

The maintenance effort coincides with the Canadian Patrol Submarine Project. Prime Minister Mark Carney recently identified a German-Norwegian partnership as the preferred bidder for a replacement fleet of up to 12 conventional submarines. Specifically, the government selected ThyssenKrupp Marine Systems of Germany to build the new fleet, with deliveries of Type 212CD submarines expected to begin by 2034.