Frigate upgrade contracts

Further to this post, now the official stuff:

A $549 million contract to refit seven of Canada's 12 frigates in Halifax is expected to make work for 600 people at the peak of the work.

The federal government awarded the contract Monday to the Irving-owned Halifax Shipyard, along with another contract worth $351 million to a shipyard in Victoria for the remaining frigates [emphasis added].

Led by J.D. Irving, dockyard workers gave a round of cheers as Defence Minister Peter MacKay made the announcement in Halifax.

"Thank you sir, thank you very much," Irving said.

The 12 frigates are the workhorses of the navy, but they are nearly 20 years old and in need of upgraded weapons, sensors and communications equipment.

The contract runs until 2020. The Halifax Shipyard expects the refit will sustain 250 jobs, and employ as many as 600 workers at the peak of the contract in 2012.

The deal is welcome news to the union at the shipyard, though it's not the new building program it says is needed.

Karl Risser, president of Local 1 of the CAW Marine Workers Federation, said the deal to refit the vessels will help keep workers in place until a contract to build is secured.

MacKay promised another announcement on rebuilding Canada's aging and shrinking navy, but did not give a date.

Nice--political--split. Official news release here. What's the policy behind the contracts all about? Comments welcome:

...
Both Victoria Shipyards and Halifax Shipyards will be required to provide Industrial Benefits equal to 100 per cent of the total value of their respective contracts.

“Through the industrial benefits policy, we are ensuring that every contract dollar awarded is invested back into the Canadian economy,” said Minister Fortier. “The contractors have committed to generating high-quality, lasting economic activity in the Canadian economy.”