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Thursday, November 22, 2007

Maintenance contract for Canadian submarines likely to be cancelled, sources say

A contract to transfer the maintenance of Canada's four submarines to Victoria from Halifax that drew a lawsuit from Irving Shipbuilding, and lobbying by former Tory official Fred Doucet will likely be cancelled and put out to tender again.

Industry and government sources said Ottawa is looking to rejig the requirements on the contract and launch a new competition to replace the one that was held last year.

B.C.-based Canadian Submarine Management Group won that competition, but a legal challenge from Irving has delayed the contract signing. Public Works Canada could not state yesterday what will happen to the contract, adding that discussions with CSMG are ongoing.

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