Ottawa, ON – July 21, 2026 – The Government of Canada has awarded a six-year, $1.1-billion contract extension to Ottawa-based Babcock Canada, keeping the company at the helm of the nation’s only industry-led submarine sustainment enterprise.

The extension of the Victoria In-Service Support Contract (VISSC) ensures uninterrupted support for the Royal Canadian Navy’s four Victoria-class submarines as Canada simultaneously advances its Canadian Patrol Submarine Project (CPSP), which will see up to 12 new patrol submarines enter service in the 2030s. The contract includes options to extend support through the Victoria fleet’s end of life, giving Canada’s submarine workforce continuity of work as the CPSP progresses from procurement to delivery.

Canada’s Submarine Sustainment Enterprise

Babcock Canada has been prime contractor on the VISSC for more than 18 years, building what the company describes as Canada’s only sovereign submarine sustainment capability. During that period, Babcock and its network of Canadian partners completed three extended docking work periods on the Victoria-class fleet, integrating systems including the Mk 48 MOD 7AT torpedo, a modern Submarine External Communications System and a Universal Modular Mast capability.

The economic reach of the contract is substantial. Since 2008, VISSC work has contributed more than $3.2 billion in GDP impact to Canada, maintained more than 1,500 jobs annually and engaged more than 450 Canadian suppliers from coast to coast, including small and medium-sized businesses, universities, colleges and Indigenous communities.

Bridging Two Submarine Generations

On July 6, 2026, Prime Minister Mark Carney announced that TKMS (thyssenkrupp Marine Systems) had been selected as the preferred supplier for the Canadian Patrol Submarine Project, the largest defence procurement in Canadian history. Babcock Canada has already signed a teaming agreement with TKMS, positioning itself as the in-service support partner for the new fleet.

The VISSC extension reinforces that positioning. A specialized workforce and supply chain built over nearly two decades around the Victoria class would take years to reconstitute if allowed to wind down. Keeping it active through the CPSP transition preserves a sovereign capability at the moment Canada most needs submarine readiness.

Quotes

“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. The extension builds on our core position as Canada’s submarine sustainment partner delivering world-class support and will drive enhanced outcomes for the existing Victoria-class fleet. It will also enable Canada’s submarine sustainment enterprise to achieve a smooth transition to Canada’s future submarine capability.”— Tony March, Chief Executive Officer, Babcock Canada, in a Newswire.ca press release

A Growing Moment for Canadian Defence Technology

Today’s announcement is another signal of the depth of Canada’s defence industrial base. With 330+ defence and aerospace companies more than 10,000 defence and security professionals in the Ottawa–Gatineau region, Canada’s Capital Region supports the country’s full submarine lifecycle: from procurement to sustainment and eventual fleet transition.

Invest Ottawa’s Defence Innovation Hub (DI Hub) is working alongside industry, government and allied partners to ensure Ottawa–Gatineau remains a centre of gravity for Canada’s growing defence economy. As Canada moves toward spending five per cent of GDP on defence by 2035, contracts like the VISSC extension demonstrate how that investment flows into Canadian jobs, sovereign capability and communities from coast to coast.

Learn more about the Defence Innovation Hub at investottawa.ca/dihub.