'On time, under budget:' Navy marks end of $4.3B frigate modernization

The commander of the Royal Canadian Navy was in Halifax Tuesday to mark the completion of the $4.3-billion modernization of the navy's 12 frigates — a program touted repeatedly for wrapping up with military efficiency.

"It's symbolic of the extraordinary team work and collaboration that was necessary to bring this project in on time and under budget," Vice-Admiral Ron Lloyd said at the Irving Shipbuilding machine shop on the waterfront.

Work to upgrade combat, radar, communication and missile systems under the the Halifax-class modernization and frigate life extension (HCM/FELEX) started in 2010 and was divided between Irving Shipbuilding in Halifax and Seaspan Marine in North Vancouver.

'On time and under budget'

The navy officially took possession of HMCS Toronto Tuesday at the Irving yard. The ship was the last of the frigates to undergo the modernization and will now undergo further tests and trials. 

"On time and under budget" was a mantra at the Halifax event. Various speakers repeated the line no fewer than eight times Tuesday.

Afterwards, the assistant deputy minister of the Department of National Defence was unable to say how much under budget.

"Actually I don't know the final tally, it's still underway. We're quite confident. We're starting to return money a little bit at a time but we'll come in underneath it. But the final tally is not known," said Pat Finn.

Value for money

The modernization was divided into two components.

DND contracted Irving Shipbuilding directly for the life extension refit of seven of the 12 frigates. Finn said Irving was paid more than half a billion dollars by DND for that work.

"They were in fact under budget," Finn said.

Irving was also subcontracted by Lockheed Martin to carry out combat system integration and support work as part of a $2-billion contract.

The focus on value for money is no surprise since the navy and Irving are now preparing for the big prize — the $26 to $40-billion program to replace the frigates in the next decade.

Next generation war ships

The Liberal government in Ottawa says it is committed to the program — and building the warships at Irving Shipbuilding in Halifax — but it is reworking it to save money.

The federal government will pick an off-the-shelf design a year from now.

"We anticipate being in contract for the first ships at the end of the decade and then about a six-year build cycle to the first ship. So about 2026 is what we are looking at for the first of the next generation of warships," Finn said.