Prime Minister Mark Carney will announce the winning bid for Canada’s new submarine fleet on Monday in Halifax. This decision shapes the future of the Royal Canadian Navy and impacts maritime security right here on the East Coast.

According to CTV News, the announcement comes just before Carney departs for a NATO meeting in Türkiye.

A Massive Investment in Naval Defense

The project involves buying up to 12 new submarines and covering their maintenance for 30 to 50 years. The total contract value exceeds $100 billion.

Two global giants are fighting for the contract. The German Norwegian consortium ThyssenKrupp Marine Systems and South Korea’s Hanwha submitted their final bids earlier this year. Both companies promise massive economic benefits for the Canadian economy.

If you follow maritime defense, you know Canada desperately needs these vessels. Right now, only one of the Navy’s four Victoria class submarines actually works. The rest sit in maintenance.

This massive purchase also serves a strategic political purpose. It shows allies how Canada plans to hit the new NATO defense spending target of five percent of GDP by 2035.

How the Government Makes the Choice

The newly formed Defence Investment Agency handles the evaluation. CEO Doug Guzman leads the process. The government grades the bids on four strict criteria:

• Sustainment makes up 50 percent of the score and includes long term maintenance plans.
• The submarine platform accounts for 20 percent and covers technical capabilities.
• Financial costs represent 15 percent of the final grade.
• Strategic and economic partnerships make up the final 15 percent.

Guzman made it clear that the winning foreign company must include significant Canadian elements in their final proposal.

Frequently Asked Questions

How much will the new submarine fleet cost?

The total contract costs over $100 billion and includes 30 to 50 years of maintenance.

Who is competing for the contract?

ThyssenKrupp Marine Systems from Germany and Norway is competing against Hanwha from South Korea.

Why does Canada need new submarines?

The current Victoria class fleet is aging rapidly. Only one of the four submarines is currently operational.

How does the government choose the winner?

The Defence Investment Agency evaluates bids based on sustainment, the submarine platform, financial costs, and strategic economic partnerships.