The Government of Canada has awarded Thales In-Service Support (ISS), refit, repair, maintenance and training to both Arctic and Offshore Patrol Ships (AOPS) and Joint Support Ships (JSS). Known as AJISS, the contract includes an initial service period of eight years for up to $800 million CAD (approx. €540 million) with options to extend services up to 35 years, for a total value of $5.2 billion CAD (approx. €3.5 billion), making it the largest ISS contract in Canadian history.
- Thales is prime contractor for ISS for both the Arctic Offshore Patrol Ships and the Joint Support Ships.
- Estimated value of the 35-year contract is $5.2 billion CAD (approx. €3.5 billion).
- This contract will generate economic benefit of more than $250 Million CAD (approx. €170 M) in Research & Development.
This contract builds on Thales’s experience in providing in-service support to every major Royal Canadian Navy (RCN) platform for the past 50 years, including ISS for systems onboard Victoria-class submarines, Kingston-class maritime coastal defence vessels, Iroquois-class destroyers and Halifax-class frigates.
Thales will leverage its Canadian expertise in project management, systems engineering and integrated logistics support to lead the development of a new Canadian supply chain that will offer comprehensive in-service support for all systems and equipment of these fleets over their operational lifetime, ensuring they are mission-ready, on time, every time, from coast to coast to coast.
With such a contract, Thales will work closely with the Navy's support facilities and personnel. Over its 35-year duration, this contract will generate economic benefit of more than $250 million CAD (approx. €170 million) in Research & Development for Canada, leveraging the creativity of both industry and academia and sparking innovation in areas such as predictive maintenance, life-cycle management and logistics support analysis.
With over 16 years of performance-based ISS experience with the Royal Australian Navy in a relational contracting model, Thales will also transfer knowledge of existing and innovative ISS-ready solutions from Australia to Canada.
Since 1989, the Australian Government, with the Royal Australian Navy and industry, have relied upon Thales to manage, maintain and upgrade its naval assets at the most important ship repair facility in the Southern Hemisphere, the Garden Island Naval Base in Sydney.
Thales’s proven and award-winning ship service and maintenance model has consistently exceeded material readiness requirements and exceeded operational availability targets by as much as 30 per cent.
Thales has provided ISS to navies in Singapore, New Zealand, USA, Saudi Arabia, the UAE, Bahrain, Papua and New Guinea, and Tonga.
|“As Canada’s partner of choice for AJISS, Thales is committed to empowering Canadian industry to support this program for decades to come. Thales’s ISS program solution will create jobs across Canada and will ensure that the ships are mission-ready, where and when they are needed, from coast to coast to coast.”
Mark Halinaty, CEO Thales in Canada
As part of its 2017 order intake, Thales will book the management portion for the first phase of this contract, for an amount of less than $60 million CAD (approx. €40 million).