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The Liberal government will announce Thursday a $5.2-billion deal to privatize maintenance of new navy ships despite concerns the plan puts key portions of Canada’s military capability in the hands of a private firm.

A Canadian subsidiary of the French defence firm, Thales, will be awarded the contract. Jim Carr, Acting Minister of Public Services and Procurement, will make the announcement in Dartmouth. Parliamentary Secretary Steven MacKinnon will make the same announcement at the Thales facility in Ottawa.

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The Ottawa Citizen reported in January that the firm had been selected to provide long-term maintenance for the Royal Canadian Navy’s Arctic patrol ships and its joint support vessels.

The deal would see the firm provide in-service support for an initial service period of eight years, with options to extend services up to 35 years. The company will be given significant access to Department of National Defence facilities and support equipment, as well as, in some cases, oversight of federal workers.