The Irving Shipbuilding facility is seen in Halifax on June 14, 2018. The $60-billion effort to build new warships for Canada’s navy is facing another delay after a trade tribunal ordered the federal government to postpone awarding a final contract for the vessels’ design. The federal government announced last month that U.S. defence giant Lockheed Martin beat out two rivals in the competition to design replacements for the navy’s frigates and destroyers. Lockheed is now negotiating a final contract with the government and Halifax-based Irving Shipbuilding, which will build the ships. THE CANADIAN PRESS/Andrew Vaughan

The Irving Shipbuilding facility is seen in Halifax on June 14, 2018. The $60-billion effort to build new warships for Canada’s navy is facing another delay after a trade tribunal ordered the federal government to postpone awarding a final contract for the vessels’ design. The federal government announced last month that U.S. defence giant Lockheed Martin beat out two rivals in the competition to design replacements for the navy’s frigates and destroyers. Lockheed is now negotiating a final contract with the government and Halifax-based Irving Shipbuilding, which will build the ships. THE CANADIAN PRESS/Andrew Vaughan

Tribunal orders feds to postpone contract in $60B warship project

The federal government annouced it’s contract to design new warships, last month

Canada’s International Trade Tribunal is telling the federal government not to award its contract to design new warships for the navy.

The federal government announced last month that U.S. defence giant Lockheed Martin beat out two rivals in the competition to design replacements for the navy’s frigates and destroyers.

RELATED: Legal challenge filed over high-stakes competition to design $60B warships

Lockheed is now negotiating a final contract with the government and Halifax-based Irving Shipbuilding, which will build the ships.

But one of the other two bidders, Alion Science and Technology, asked the Canadian International Trade Tribunal to quash the decision, saying Lockheed’s design did not meet the navy’s stated requirements and should have been disqualified.

RELATED: Feds aiming to select preferred design for $60B warships by end of month

Late Tuesday, the tribunal officially ordered the government to postpone the award of any contract until the tribunal can determine whether Alion’s complaint is valid.

With a $60-billion total price, the warship project is Canada’s largest-ever military procurement, with new vessels expected to serve as the navy’s backbone for most of the century.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The Township of Spallumcheen is now handling applications for planning and development. (Morning Star - file photo)
Township of Spallumcheen handling development, planning applications

Convenient service for township residents, businesses, who no longer have to travel to Coldstream

An Enderby restaurant and pub was shut down Sunday afternoon, Nov. 29, 2020 as a precaution after a guest reportedly tested positive for COVID-19. (Howard Johnson photo)
Enderby pub reopens after COVID-19 scare

After a guest reportedly tested positive for the virus, staff test results came back negative

Vernon Teach and Learn has earned numerous awards throughout its family-owned and operated history. (Photo submitted)
Vernon’s guide for Christmas toy shopping locally rather than online

Local businesses need support during the pandemic, and they’ve also got the goods this holiday season

Nanaimo RCMP found drugs and cash inside a vehicle pulled over for expired insurance.
(File photo)
Occupant extracted from crash north of Vernon

Car went over embankment off Highway 97 in Spallumcheen

The City of Vernon broke ground on some new affordable housing to be built on Pleasant Valley Road in August. The city, along with the Okanagan Indian Band, will receive more units courtesy of the province. (Morning Star - file photo)
Affordable housing moves to Vernon, Okanagan Indian Band

Close to 30 homes to be built for low-to-moderate-income families

Elkhart Gas Station, located on Highway 97C about 60 kilometres west of Peachland, opened in November 2020. (Google maps)
The Okanagan Connector now has a gas station

The highway previously ran for over 117 kilometres without a place to fuel up

The Hughes’ Grinch was stolen from their front yard Wednesday, Dec. 1, 2020. The Santa suit the Grinch is wearing is 50 years old and has sentimental value. It was once worn by April Hughes’ dad. (Hughes photo)
Grinch stolen from Penticton home is ‘irreplaceable’

The Hughes have had a Christmas display for 25 years on Grandy Avenue in Penticton

Midway RCMP’s Cpl. Phil Peters spoke at Greenwood’s city council meeting Monday, Nov. 23. Photo: Laurie Tritschler
B.C. Mountie builds fire to warm suspect with hypothermia prior to rescue

Cpl. Phil Peters said the civilian helped police track, apprehend and eventually rescue the suspect

Premier John Horgan leaves the podium following his first press conference of the year as he comments on various questions from the media in the Press Gallery at B.C. Legislature in Victoria, B.C., on Monday, January 13, 2020. THE CANADIAN PRESS/Chad Hipolito
Revelstoke COVID-19 cluster linked to non-essential travel: Horgan

There have been 46 cases of COVID-19 in the community

Provincial health officer Dr. Bonnie Henry updates B.C.’s coronavirus situation at the legislature, Nov. 30, 2020. (B.C. government)
Hockey team brought COVID-19 back from Alberta, B.C. doctor says

Dr. Bonnie Henry pleads for out-of-province travel to stop

B.C. Premier John Horgan on a conference call with religious leaders from his B.C. legislature office, Nov. 18, 2020, informing them in-person church services are off until further notice. (B.C. government)
B.C. tourism relief coming soon, Premier John Horgan says

Industry leaders to report on their urgent needs next week

Most Read