Was it a very bad contract?
From what I recall, the RCN/Govt is well over the $1B mark for the MV Asterix contract with an additional $100m~ wiggle room costs per year, due to a bunch of weasel clauses which Federal Fleet uses to nickel and dime the government for items not covered in the contract. I don't particularly think it was a well thought out idea, but Federal Fleet managed to take advantage of the Canadian Govt at an inopportune time due to their own incompetence and has seemingly made out like a bandit for doing so.
Davie buys the ship for $20m, spends $300m to do a budget conversion (outsource the superstructure from abroad, don’t put baffles in the fuel tanks, deliver it in questionable condition, etc), rents it out to the RCN for over $1B and change over the years and demands over $700m for an outright purchase? All of this for a vessel that we won't even own at the end of the day, we'd have to buy it from Federal Fleet.
I personally think we should have taken all of this money and had somebody like the Koreans build us an interim vessel from the ground up, which the RCN itself would have owned, manned and operated. It wouldn't have been popular with the domestic politics especially in Quebec, but Asterix seems like such a ripoff that it makes Irving look like amateurs in comparison. Easy to get away with theft when you can sell it to the politicians and voter base.
The slapdash conversion, that was originally contracted for five years was heavily used.
It was used for a further five years.
It is still fulfilling its assigned role.
And apparently still has life in her.
How bad was that contract?
MV Asterix had literally the best circumstances humanly possible to succeed, the total absence of competition, big domestic political swelling of support for the contract, a lack of competent planning for prompt replacements for the prior vessels and the multiple delays which pushed the Protecteur class further and further into the future. The RCN desperately needed a resupply vessel and Davie delivered a largely workable platform, that doesn't paper over the apparent issues with the conversion and the exploitative nature of the contract itself.
Possible, Or they may find they are in high demand, make tons of money and get more oiler ships in their fleet. It's not like the US is adverse to paying top dollar for defense items.
I'm sure when Omega started up many thought they would fail. Their website says they have flown 10,500 missions. Wiki says they have 5 planes. If Federal Fleet can copy that with AOR I'm sure they would be quite happy.
Canada largely agreed to the terms of the contract Federal Fleet had offered because our own incompetent planning had left us without any alternatives, Federal Fleet almost certainly won't have the same luck with other customers abroad especially when a big reason for its contract success was an up swelling of political support in Quebec. They'll have to lower their costs and make a future contract much more appealing to customers, especially once the vessel is released from her decade of hard service with the RCN. DND has been seemingly not very convinced of the 40 year service life post conversion Davie claims, saying they think the vessel is more realistically going to have a service life of 16~ years.