ESQUIMALT, British Columbia, July 8 (UPI) -- Babcock Canada Inc. has received a five-year contract extension from the Canadian government for support of the country's four Victoria-class submarines.
The extension to a 2008 award is worth $501.5 million. Additional extension option provisions in the contract, however, could extend work for as much as 15 years, giving the award a potential value of about $1.4 billion.
"The extension of this contract is an important investment in sustaining a key operational capability for our Canadian Armed Forces," Associate Minister of National Defense Kerry-Lynne Findlay said. "This is also another important investment in skilled employment in Canada's marine sector, supporting more than 400 high-quality, skilled jobs across Canada."
The in-service contract covers planning and managing the refit periods of the submarines; acquisition of materiel and all maintenance activities. Included is maintenance, repair, overhaul or upgrading of more than 200 systems aboard each vessel.
Babcock will conduct all heavy engineering work at Victoria Shipyards Co. Ltd., in Esquimalt, British Columbia.