OTTAWA — The Government of Canada has awarded Babcock Canada a six-year contract extension worth more than $1 billion to continue providing in-service support for the Royal Canadian Navy's Victoria-class submarine fleet, ensuring the submarines remain operational as the country prepares to transition to a new generation of vessels over the next decade.
The extension to the Victoria In-Service Support Contract (VISSC) allows Babcock Canada to continue serving as the fleet's prime contractor, a role it has held for more than 18 years. The agreement also includes options to extend support through to the end of the Victoria-class submarines' operational life, which is expected in the mid-to-late 2030s.
The contract is intended to maintain Canada's existing submarine capability while the country advances the Canadian Patrol Submarine Project (CPSP), which will replace the current fleet with up to 12 Type 212CD conventionally powered submarines.
Maintaining Canada's Victoria-Class Fleet
The Royal Canadian Navy currently operates four Victoria-class submarines, originally built between 1983 and 1990, acquired by Canada in the late 1990s, and brought into service in the early 2000s. As the submarines approach four decades of service, sustaining the fleet requires extensive engineering, maintenance, upgrades, refits, and periodic deep maintenance.
The Victoria-class is considered an "orphan class" because no other navy currently operates the submarines, meaning many original replacement parts are no longer produced. To address this challenge, Babcock Canada reverse-engineers obsolete components and manufactures replacement parts through a Canadian supply chain.
The company also works with Canadian shipyards, including Seaspan's Victoria Shipyards, to carry out major maintenance periods. HMCS Corner Brook is currently deployed in the Pacific Ocean participating in RIMPAC, the world's largest international maritime exercise, while the remaining three submarines are undergoing scheduled maintenance.
Supporting the Transition to Canada's Future Fleet
The VISSC extension is intended to ensure uninterrupted submarine support until Canada's next-generation fleet enters service.
Earlier in July 2026, Prime Minister Mark Carney announced that Germany's ThyssenKrupp Marine Systems (TKMS) had been selected as the preferred bidder under the Canadian Patrol Submarine Project. Initial deliveries of the new submarines are expected between 2032 and 2034, while the Victoria-class fleet will continue operating into the mid-to-late 2030s to avoid a capability gap.
Tony March, Chief Executive Officer of Babcock Canada, said the company is proud to continue supporting the Royal Canadian Navy.
"Supporting the men and women of the Royal Canadian Navy with a safe and capable submarine fleet is something Babcock is hugely proud of, and this contract extension continues our longstanding partnership and delivery of this important sovereign and strategic capability," March said.
He said the extension will strengthen support for the Victoria-class fleet while helping maintain Canada's submarine sustainment workforce and engineering expertise during the transition to the future fleet.
Economic Impact
According to Babcock Canada, work under the Victoria In-Service Support Contract has contributed more than $3.2 billion to Canada's gross domestic product since 2008.
The program supports more than 1,500 jobs annually, including over 1,300 engineering and technical positions, and works with a network of more than 450 Canadian suppliers. Babcock also collaborates with Canadian universities, colleges, Indigenous communities, and small and medium-sized businesses to support workforce development, technical training, and innovation in the submarine sector.
Babcock has also indicated it intends to compete for the sustainment contract for Canada's future Type 212CD submarine fleet, building on the experience and industrial capabilities developed through more than 18 years of supporting the Royal Canadian Navy's Victoria-class submarines.
Source : bnnbloomberg.ca
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