Section IV - Status Report on Major Crown and Transformational Projects - DPR - 2011-12

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AIRLIFT CAPABILITY PROJECT – STRATEGIC

Description

The objective of the Airlift Capability Project – Strategic (ACP-S) is to acquire four new aircraft that will provide the Canadian Forces (CF) with the global reach and speed necessary to operate effectively over long distances, as well as to deliver personnel and cargo directly into a theatre of operation, including threat environments.

Project phase

Implementation: All four aircraft have been accepted on schedule and project close-out is expected for Fall 2012.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor The Boeing Company, St-Louis, Missouri, USA
Major Subcontractor(s) The Boeing Company via Foreign Military Sales (FMS) case

Major milestones

Major Milestone Date
Synopsis Sheet (Effective Project Approval) June 2006
Advanced Contract Award Notice Posted on MERX July 2006
Contract Award February 2007
Delivery First Aircraft August 2007
Delivery Second Aircraft October 2007
Delivery Third Aircraft March 2008
Delivery Fourth Aircraft April 2008
Initial Operational Capability October 2008
Full Operational Capability Summer 2012
Project Close-Out Fall 2012

Project outcomes

Deliver four aircraft and the required infrastructure at 8 Wing Trenton. Once declared at full operational capability, the project will contribute towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Air Force and will support the Canadian Army.

Progress report and explanations of variances

All four aircraft have been accepted on schedule and the fleet has already flown in excess of 18,000 flying hours. Full Operational Capability is expected in Summer 2012 when the infrastructure at Canadian Forces Base Trenton is completed.

Industrial benefits

Industrial and Regional Benefits (IRB) are equivalent to 100% of the Boeing acquisition contract, Boeing's share of the in-service support Foreign Military Sales contract value, and the value of the engines. (A separate IRB agreement was negotiated with Pratt and Whitney USA for the value of the C-17 engines.) The three IRB agreements total $1.9B. Several IRB announcements have been made and all regions of Canada are benefiting from these contracts.

AIRLIFT CAPABILITY PROJECT - TACTICAL

Description

The objective of the Airlift Capability Project – Tactical (ACP-T) is to ensure a continued tactical airlift capability. This project will replace the Canadian Force's aging CC130E Hercules fleet, and will provide the CF with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.

Project phase

Implementation: The project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 CC-130J aircraft. The contract was subsequently amended to include provisions for in-service support (ISS) in December 2009, and for maintenance training system in February 2010. Aircraft deliveries began in June 2010.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor Lockheed Martin Corporation, Marietta, Georgia, USA
ISS Sub-Contractor Cascade Aerospace, Abbotsford, British Columbia, Canada
ISS Sub-Contractor IMP Aerospace, Enfield, Nova Scotia, Canada
ISS Sub-Contractor CAE, Montreal, Quebec, Canada
ISS Sub-Contractor Standard Aero, Winnipeg. Manitoba, Canada
ISS Sub-Contractor HAAS Group, Oshawa, Ontario, Canada

Major milestones

Major Milestone Date
Revised Preliminary Project Approval June 2006
Solicitation of Interest and Qualification August 2006
Issue of Request for Proposal August 2007
Effective Project Approval December 2007
Contract Award December 2007
Initial Operational Capability January 2013
Full Operational Capability September 2016
Project Close-Out December 2016

Project outcomes

Deliver 17 CC-130J aircraft, the associated in-service support and training, and the required infrastructure at 8 Wing Trenton. Once declared at full operational capability, the project will contribute towards achieving the Canada First Defence Strategy (CFDS) and the following Program Activity Architecture (PAA) Strategic Outcomes: Resources are acquired to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal; and ensuring National Defence is ready to meet government defence expectations, specifically the program activity of Aerospace Readiness.

This capability is being delivered to the Royal Canadian Air Force and will support the Canadian Army.

Progress report and explanations of variances

With contract provisions for in-service support and maintainer training, and in conjunction with the infrastructure upgrades at the aircraft's Main Operating Base in Trenton, Ontario, the project is progressively establishing the support systems for this new capability in preparation for the declaration of Full Operational Capability.

As of March 31, 2012, 15 aircraft have been delivered with the final two aircraft to be delivered in April and May 2012.

The Project Close-Out was extended to December 2016 to correspond with the Full Operational Capability date of September 2016.

Industrial benefits

Lockheed Martin Corporation has committed to provide Industrial and Regional Benefits (IRB) equivalent to 100% of the eligible contracted value for both the capital acquisition and the in-service support portions, including a 15% requirement for the participation of small and medium business. Several IRB announcements have been made and all regions of Canada are benefiting from this contract. The IRB requirements are administered by Industry Canada, through PWGSC, for the duration of the contract and any amendments.

ARCTIC/OFFSHORE PATROL SHIP

Description

The Arctic/Offshore Patrol Ship (AOPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to demonstrate sovereignty in Canada's waters, including the Arctic. The AOPS project is acquiring six to eight Arctic/Offshore Patrol Ships, in-service support elements, jetty infrastructures in Halifax and Esquimalt as well as a berthing and fuelling facility at Nanisivik, Nunavut.

Project phase

Definition: The Project is in Definition phase and will advance the planning and ship design to the point of ship construction, followed by the Project Implementation contract for ship construction.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor The National Shipbuilding Procurement Strategy (NSPS) Secretariat announced on 19 October 2011 that Irving Shipbuilding Inc. (ISI) is to build the AOPS. Identification of major sub-contractors will be determined through the Canadian shipyard's teaming arrangement for AOPS construction.

The prime contractor for the project's In-Service Support Contract (ISSC) will be competed separately during the project implementation phase. The Department is currently investigating options for an ISSC for the AOPS.

Major milestones

Major Milestone Date
Treasury Board Preliminary Project Approval May 2007
Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP) December 2007
DELMS RFP Close February 2008
DELMS Contract Award May 2008
Revised Project Approval (Definition) I October 2011
Ancillary Contract Awarded June 2012
Revised Project Approval (Definition) II Winter 2013
Award Definition Contract Winter 2013
Project Approval (Implementation) 2015
Award of Implementation Contract 2015
Delivery of First Ship 2018
Initial Operational Capability of First Ship 2019
Full Operational Capability 2023
Project Complete 2024

Project outcomes

Deliver six to eight ships, a 25-year In-Service Support Contract and associated infrastructures in Halifax, Esquimalt and Nanisivik. This project will sustain Maritime Forces capabilities of conducting armed, seaborne surveillance of Canada's waters, including the Arctic. Once declared at full operational capability it will contribute towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government Defence expectation, specifically the program activity of Maritime Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Navy.

Progress report and explanations of variances

The Project Definition funding increased from $42.8M ($Budget Year) to $58.4M ($Budget Year). This additional $15.6M ($Budget Year) of increased expenditure authority was approved in October 2011. The total project budget remains $3,074M ($Budget Year). Previous dates for AOPS were based on a traditional competitive procurement strategy. Since the signing of the NSPS Umbrella Agreement, engagement with Irving Shipbuilding Inc. (ISI) has begun and the dates in this submission reflect a schedule that takes into account a collaborative approach, as well as ISI's shipyard infrastructure improvements and production strategy.

Note: all figures above are exclusive of GST/HST.

Industrial benefits

At this time, Industrial and Regional Benefits (IRB) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support. However, IRBs have not been required of the Ancillary Contract.

ARMOURED PERSONNEL CARRIERS

Description

The Armoured Personnel Carrier (APC) is essential for all foreseeable Canadian Forces (CF) roles, including territorial defence, United Nations (UN) peacekeeping and peace enforcement operations, other international commitments, and aid to civil power. The existing APC fleet did not meet the minimum operational requirements when compared to the modern, technically sophisticated weapons and vehicles Canadian soldiers encounter during operations. They suffered shortcomings in protection, self-defence capability, mobility, carrying capacity and growth potential. The APC project fielded a fleet of modern, wheeled, armoured personnel carriers. 651 Light Armoured Vehicles (LAV) III were procured in six configurations: Infantry Section Carrier, Command Post, Engineer, Forward Observation Officer, TOW (Tube Launched, Optically Tracked, and Wire Guided) Under Armour, and LAV III Less Kits. The latter was eventually configured into the LAV III with Remote Weapon Station.

Project phase

Implementation: All vehicles were delivered by October 2007 and construction activities for indoor accommodation are nearing completion. The project is scheduled for completion in Spring 2012.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor General Dynamics Land Systems, London, Ontario, Canada

Major milestones

Major Milestone Date
Treasury Board Approval August 1995
Contract Award January 1997
First Vehicle Delivery July 1998
Exercise of First Option July 1998
Exercise of Second Option July 1999
Exercise of Third Option July 1999
Last Vehicle Delivery October 2007
Project Completion Spring 2012

Project outcomes

Deliver 651 LAV III vehicles including variants that met the specific performance requirements as well as infrastructure upgrades to accommodate LAV III vehicles in five locations across Canada. This outcome has been achieved under the Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government Defence expectation, specifically the program activity of Land Equipment Acquisition and Disposal.

This capability is being delivered to the Canadian Army.

Progress report and explanations of variances

In August 1995, the Government approved, in principle, the procurement of up to 651 APCs. In January 1997, the Government announced the award of a contract to General Dynamics Land Systems - Canada (GDLS-C) to build 240 new eight-wheel-drive APCs. The contract contained three options for an additional 120, 120 and 171 APCs respectively. All three options have been exercised. All vehicles were delivered by October 2007.

The vehicles have been involved in significant operational demands after being fielded and have performed well. They have since undergone a number of modifications to adjust to the modern threat, and will require additional work to optimize their performance against these threats. A separate project has been launched to address this issue.

In March 2004, Treasury Board authorized $129M for indoor accommodation of the LAV III to facilitate regular maintenance and training programs, and prevent deterioration that would result from outdoor storage. Construction of these accommodations is taking place in five locations: Wainwright, Petawawa, Montréal, Valcartier, and Gagetown. Construction activities are well advanced and will allow this project to terminate its involvement in Spring 2012.

Industrial benefits

This project includes industrial benefits valued at $1.595B with $852.9M in direct Industrial and Regional Benefits (IRB) and $742.9M in indirect IRBs.

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM

Description

The Canadian Cryptographic Modernization Program (CCMP) is an omnibus project that will modernize the Government of Canada's aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada's ability to establish secure communications both nationally and internationally.

The CCMP omnibus project includes the following sub-projects:

  • Secure Voice / Telephone Re-key Infrastructure;
  • Secure Voice / Telephone Family;
  • Classified Security Management Infrastructure;
  • Combat Identification Family (Identification Friend or Foe (IFF));
  • Link Encryption Family;
  • Network Encryption Family;
  • Secure Radio;
  • Combat Net Radio (Enhancement); and
  • Secure Mobile Environment.

Project phase

Implementation for some sub-projects, definition for others.

Leading and participating departments and agencies

Lead Department Communications Security Establishment Canada (CSEC)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Government of Canada departments and agencies using cryptographic equipment to protect classified information

Prime and major subcontractor(s)

Prime Contractor N/A
Major Subcontractor(s) Various allied manufacturers of cryptographic equipment

Major milestones

Major Milestone Date
Preliminary Project Approval for the CCMP Omnibus Project March 2005
Preliminary Project Approval for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure November 2006
Secure Voice / Telephone Re-key Infrastructure September 2009
Secure Voice / Telephone Family December 2011
Classified Security Management Infrastructure – Phase 1A 2013
Classified Security Management Infrastructure - Phase 1B March 2012
Classified Security Management Infrastructure – Phase 2 Definition December 2012
Classified Security Management Infrastructure – Phase 2A 2014
Classified Security Management Infrastructure – Phase 2B 2016
Classified Security Management Infrastructure – Phase 3 2020
Link Encryption Family 2013
Network Encryption Family 2018
Combat Net Radio (Enhancement) 2016
Combat Identification Family (Identification Friend or Foe (IFF)) 2018
Secure Radio Family 2019
Secure Mobile Environment 2014

Project outcomes

Deliver affordable Information Protection by means of cryptographic solutions with an adequate level of security to protect Government of Canada classified electronic information and to provide enhanced interoperability to facilitate the exchange of classified information both nationally and internationally. This requires the right balance between interoperability and sovereignty, while striving to meet unique Canadian requirements. Once delivered and declared at full operational capability, this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Defence operations will improve peace, stability and security wherever deployed, specifically the program activity of Support to Intelligence, Surveillance and Reconnaissance.

Progress report and explanations of variances

The CCMP is on budget. The CCMP schedule is dependent on the American Cryptographic Modernization Initiative and the Key Management Infrastructure Program. This allows Canada to leverage American research and development and maintain interoperability with its Allies. Completion dates for the sub-projects are regularly reviewed to keep them aligned with the American initiative/program.

  • The CCMP originated as a 12-year program ending in 2016. In June 2011, the end date of the Classified Security Management Infrastructure project was extended to 2020 to remain aligned with the U.S. Key Management Infrastructure Program. While the Classified Security Management Infrastructure baseline schedule and cash flow will be updated, extending the end date will not impact the overall cost of the CCMP.

Industrial benefits

There are no associated Industrial and Regional Benefits (IRB) with this project. There could be some IRBs realized with the Combat Net Radio (Enhancement) project.

CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER PROJECT

Description

The purpose of the Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project is to acquire helicopters in support of national and international tactical aviation roles. The project supports the Land Forces, Aerospace Forces, Canadian Expeditionary Force Command (CEFCOM) operations, Canadian Special Operations Force Command (CANSOFCOM) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. It has replaced three aging helicopter fleets - the CH118 Iroquois, the CH135 Twin Huey and the CH136 Kiowa. The Bell 412CF/CH146 was procured as a single role multi-mission helicopter capable of supporting a majority of the tasks previously undertaken by the fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements to include: the tactical lift of troops; logistical lift; reconnaissance and surveillance; direction and control of fire; aero-medical support; casualty evacuation; command and liaison, and communications assistance. These mission capabilities are employed in support of Defence operational commitments, UN peacekeeping missions, and support to other Government Departments and Agencies, including aid to civil power.

Project phase

Close-out: The project has delivered 100 Bell 412CF/CH146 Griffons, a flight simulator, a composite maintenance trainer, facilities, mission kits (including Defence electronic warfare suites), as well as other equipment, documentation and services. It is scheduled for completion in November 2012.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor Bell Helicopter Textron, Mirabel, Québec, Canada
Major Subcontractor(s) Pratt & Whitney, Montréal, Québec, Canada
BAE Systems Canada Inc., Montréal, Québec, Canada
CAE, Montréal, Québec, Canada

Major milestones

Major Milestone Date
Treasury Board Effective Project Approval September 1992
Critical Design Review April 1993
First Helicopter Delivery March 1995
Simulator Acceptance June 1996
Last Helicopter Delivery December 1997
Project Completion November 2012

Project outcomes

Deliver 100 Bell 412/CH146 Griffon helicopters and a reduction in the total number of aircraft. These helicopters support the Land Forces, Aerospace Forces, Canadian Expeditionary Command (CEFCOM) operations, Canadian Special Operations Force Command (CANSOFCOM) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. Mission capabilities are employed in support of Defence operational commitments, search and rescue, UN peacekeeping missions, and support to other Government Departments and Agencies, including aid to the civil power. This outcome has been achieved under the Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government Defence expectation, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Air Force and Canadian Army.

Progress report and explanations of variances

This project received Government approval in April 1992 and Treasury Board (TB) approval in September 1992, with an original budget of $1.293B. Following directed reductions to the project budget and by assuming certain performance risks, the project activities were completed for approximately $200M less than the initial TB budget approval. The project is now in the close-out phase.

Industrial benefits

To date, Bell Helicopter has claimed $305.2M direct and $389.2M indirect Industrial and Regional Benefits (IRB), totaling $694.4M, representing 137.26% of the overall commitment of $505.9M.

CANADIAN SEARCH AND RESCUE HELICOPTER PROJECT

Description

Maintaining a national search and rescue capability is a key Defence mission. The purpose of the Canadian Search and Rescue Helicopter (CSH) project was to replace the CH-113 Labradors with a fleet of 15 new helicopters. The new helicopters have addressed the operational deficiencies of the CH-113 Labrador fleet and eliminated the supportability difficulties of the older airframes. Given expected aircraft availability rates and a sufficient fleet size, continuous operations are anticipated well into the 21st century.

Project phase

As of July 2003, all 15 Cormorant helicopters had been delivered. Spare parts and infrastructure were also in place to support operations, and initial training had been completed. Effective Project Closure was achieved in September 2004 at which point the Project Management Office was closed; however, some aspects of the contract were noted as deficiencies. Final contract completion is projected to occur in 2014.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor Agusta Westland International Limited (formerly
European Helicopters Industries Ltd. (EHI)), Farnborough, UK
Major Subcontractor(s) Westland Helicopters, Yeovil, UK
Agusta Spa, Cascina Costa, Italy
General Electric Canada Inc., Mississauga, Ontario, Canada

Major milestones

Major Milestone Date
Treasury Board Effective Project Approval April 1998
Contract Award April 1998
First Aircraft Delivery (at plant in Italy) September 2001
Final Aircraft Delivery (at plant in Italy) July 2003
Project Completion (Effective Project Completion) September 2004
Expected Project Closure 2014

Project outcomes

Deliver 15 CSH aircraft at full operational capability which contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Defence operations to improve peace, stability and security whenever employed, specifically the program sub-activity of Search and Rescue.

This capability is being delivered to the Royal Canadian Air Force. The primary beneficiary is the Canadian population who require Search and Rescue services.

Progress report and explanations of variances

The project delivered the 15 aircraft and procured the required aircraft spares, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for the four CF search and rescue bases. The project also established and funded the first two years of an in-service support contractor for follow-on support.

The Cormorant has been operational at the squadrons in Comox, BC, Gander, NL, Greenwood, NS and Trenton. ON. CH149 operations at 424 Squadron in Trenton have been suspended due to the lack of aircraft availability and difficulty in maintaining adequate aircrew training. The fleet size has reduced to 14, following the loss of an aircraft in a 2006 crash.

It should be noted that although effective project closure was achieved in September 2004, some work is still ongoing and full completion is not expected before 2014. The milestones still outstanding are tied to a three year Technical Publication Revision Service which commenced in Fiscal Year (FY) 2010-11, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least an additional three years commencing in FY 2010-11.

Industrial benefits

The contractor committed to providing direct and indirect Industrial and Regional Benefits (IRB) valued at $629.8M, within eight years from the date the contract was awarded. It is estimated that these benefits created or sustained roughly 5,000 person-years of employment in Canada, and that all regions of Canada benefited from this project. The contractor has completed its obligations to Canada in regards to IRBs under the CSH contract. Small businesses in Canada have also benefited from the project by the placing of $67M in orders.

CANADIAN SURFACE COMBATANT PROJECT

Description

In accordance with the Canada First Defence Strategy (CFDS), the Canadian Surface Combatant (CSC) Project will recapitalize Canada's surface combatant fleet through replacement of the capability found in the Iroquois Class destroyers and the Halifax Class frigates, along with the provision of the necessary integrated logistics support and infrastructure. The CSC Project will pursue system commonality in ship design and acquisition. System commonality will potentially generate acquisition and through-life cost savings in a number of areas including crewing, training, maintenance and logistics support. This will result in a number of aspects of the ships being common, regardless of variants produced.

Project phase

The project was in Options Analysis phase as of 31 March 2012.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada, supported by regional development agencies

Prime and major subcontractor(s)

Prime Contractor Work continues toward the confirmation of the overall procurement strategy for design, platform and combat systems. As an outcome of the National Shipbuilding Procurement Strategy, Irving Shipbuilding Inc. was selected to build the combat vessels including the Canadian Surface Combatant.

The CSC project intends to compete elements of In Service Support after it has entered the project implementation phase.

Major milestones

Major Milestone Date
Identification Phase Approval July 2007
Identification Phase Amendment No. 1 Approval January 2009
Project Approval (Definition Phase I) June 2012
Expenditure Authority / Contract Approval (Definition Phase II) December 2013
Project Approval (Implementation) 2016
Implementation Contract - Awarded 2016
Initial Operational Capability Mid 2020's
Full Operational Capability 2036
Project Completion 2037

Project outcomes

Recapitalize the capability currently found in Canada's destroyers and frigates. The introduction of CSC will ensure that the Royal Canadian Navy can "continue to monitor and defend Canadian waters and make significant contributions to international naval operations". The CSC project contributes to achieving the Canada First Defence Strategy (CFDS) objectives and to achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet Government Defence Expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Navy.

Progress report and explanations of variances

The Government announced its broad intention for fleet recapitalization and shipbuilding in CFDS and in announcements pertaining to the National Shipbuilding Procurement Strategy (NSPS).

Industrial benefits

Canada's Industrial and Regional Benefits Policy will be a mandatory element of the CSC project, with the contractors committing to achieve Industrial and Regional Benefits valued at 100% of the Implementation and ensuing In-service support contracts. In accordance with direction provided by Industry Canada, Industrial and Regional Benefits requirements will not be imposed for the definition phase contracts. During the course of these contracts, each industry contender will be directed to develop an Industrial Regional Benefits plan as part of their proposal for the Implementation contract.

CLOSE COMBAT VEHICLE

Description

The Close Combat Vehicle (CCV) project will deliver to the Canadian Army an extremely well protected armoured vehicle with high tactical mobility, able to deliver a combat ready Canadian Army infantry section in close combat, while operating in intimate support of CF tanks.

CCV is one of the four projects within the Army's "Family of Land Combat Vehicles".

Project phase

Definition.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor To be determined (TBD)
Major Subcontractor(s) TBD

Major milestones

Major Milestone Date
Treasury Board Preliminary Project Approval June 2009
Treasury Board Project Approval (Implementation) 2013
Contract Award 2013
First Vehicle Delivery 2015
Initial Operational Capability 2016
Full Operational Capability 2018
Project Closure 2019

Project outcomes

The Project scope is for the acquisition of 108 CCV with an option for up to 30 additional vehicles (including Infantry Fighting Vehicle, Forward Observation Officer, Tactical Command and Engineer Reconnaissance configurations), plus an associated long-term or through-life in-service support contract. The project contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet Government Defence Expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

This capability is being delivered to the Canadian Army.

Progress report and explanations of variances

In 2010-11, the CCV project successfully completed its Solicitation of Interest and Qualification (SOIQ) process, resulting in a list of five Pre-Qualified Bidders. A Request for Proposal (RFP) was issued in April 2011 and closed in August 2011. Following the completion of the technical evaluations of the proposals, it was determined that none of the contenders met all of the mandatory technical requirements, and as a result, the first RFP was cancelled.

The project is in its definition phase and is proceeding on budget. Delivery of the first CCV is currently planned for 2015.

Industrial benefits

The CCV contracts will include a requirement for Industrial and Regional Benefits (IRB) equal to 100% of the contract values. Direct industrial benefits targets have been established at 25% for acquisition and 40% for in-service support.

FIXED WING SEARCH AND RESCUE AIRCRAFT REPLACEMENT

Description

The purpose of the Fixed Wing Search and Rescue Aircraft Replacement (FWSAR) project is to replace the fixed wing search and rescue (SAR) capability currently being provided by the CC115 Buffalo and CC130 Hercules aircraft.

This replacement will address the operational deficiencies of the CC115 Buffalo and legacy CC130 Hercules fixed wing SAR aircraft while eliminating the supportability and affordability difficulties of the older airframes. The solution will provide the capability to conduct an effective response and immediate assistance to SAR incidents within the Canadian SAR Area of Responsibility.

Project phase

Definition. Treasury Board approved Expenditure Authority for definition work. Project approval is pending.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor To be determined (TBD)
Major Subcontractor(s) TBD

Major milestones

Major Milestone Date
Treasury Board Expenditure Authority – Definition phase March 2012
Project Approval (Definition) Fall 2013
Project Approval (Implementation) Winter 2015
Contract Award Winter 2015
Delivery First Aircraft Fall 2017
Initial Operational Capability 2018
Full Operational Capability 2019
Project Close-Out 2020

Project outcomes

Deliver a replacement capability currently performed by the CC-115 Buffalo and CC-130 Hercules aircraft. The project contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Air Force. The primary beneficiary is the Canadian population who require Search and Rescue Services.

Progress report and explanations of variances

The FWSAR Project has been in options analysis phase, with significant engagement with the public, industry and third party experts, since 2009. The project entered the project definition phase upon receipt of Expenditure Authority from Treasury Board for definition work in March 2012.

Industrial benefits

Maximum Industrial and Regional Benefits (IRB) will be sought for this project.

FORCE MOBILITY ENHANCEMENT

Description

The Force Mobility Enhancement (FME) project is to acquire Armoured Engineer Vehicles (AEV), Armoured Recovery Vehicles (ARVs), to support the acquired AEVs and Tactical Mobility Implements (TMI) in support of Canada's Leopard 2 Main Battle Tank (MBT). The project is part of the Family of Land Combat Vehicles (FLCV) programme and has been broken down into two phases.

In Phase 1, FME will acquire AEVs and ARVs. Both platforms will support the Leopard 2 MBT until 2035. In addition, they will support all current armoured vehicle fleets and future fleets, including those in the FLCV project.

In Phase 2, FME will acquire TMIs for the Leopard 2 MBT to include mine rollers, mine ploughs, and dozer blades. TMIs provide a key capability for the Leopard 2-based force as the current Leopard 2 MBT does not have an in-service TMI capability.

Project phase

Phase 1 (AEV): Implementation: The FME project received Treasury Board Project Approval Implementation for Phase 1 on 15 March 2012.

Phase 2 (TMIs): Definition: Phase 2 is in Definition as per the Treasury Board Preliminary Project Approval granted on 18 June 2009.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor Flensburger Fahrzeugbau (FFG)
Gesellschaft mit beschränkter Haftung (GmbH), Flensburg, Germany
Major Subcontractor(s) Industrial Rubber, Bathurst, New Brunswick

Major milestones

Major Milestone Date
Identification Phase Approval – Identification Phase September 2008
Senior Project Advisory Committee Approval November 2008
Preliminary Project Approval – Definition Phase June 2009
Request for Proposal - Phase 1 Released October 2010
Advanced Contract Award Notice (ACAN) on MERX – Phase 2 Released July 2011
Request for Proposal – Phase 2 Released June 2011
Project Approval Implementation (Phase 1) March 2012
Contract Award - Phase 1 April 2012
Project Approval Implementation (Phase 2) April 2013
Contract Award – Phase 2 May 2013
Initial Operational Capability – Phase 1 and 2 February 2015
Full Operational Capability December 2016
Project Close-Out 2017

Project outcomes

Delivery of 18 Leopard 2-based Armoured Engineer Vehicles (AEV), four Leopard 2-based Armoured Recovery Vehicles (ARV), and Tactical Mobility Implements (TMI) such as mine rollers, mine ploughs and dozer blades to install onto Leopard 2 Main Battle Tanks. The FME project will provide crucial support to the Leopard 2 tanks, LAV III, and future fleets, such as the Close Combat Vehicle and the Tactical Armoured Patrol Vehicle. Once delivered and declared at full operational capability this project will contribute towards achieving the Canada First Defence Strategy (CFDS) objectives as well as the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

This capability is being delivered to the Canadian Army.

Progress report and explanations of variances

Phase 1. The AEV RFP was posted on MERX and closed on 27 June 2011. Both bidders were found compliant. Phase 1 received Treasury Board Project Approval Implementation on 15 March 2012. Subsequently, the Tank Replacement Project (TRP) ARV contract was amended to exercise the four FME ARV options on 26 March 2012.

Phase 2. Upgrade work on the existing Leopard 1 Mine Roller and Mine Plough continued with Defence Research Development Canada in Suffield (DRDC Suffield) and the Prairie Agriculture Machinery Institute (PAMI) respectively. Due to Intellectual Property rights, only the Original Equipment Manufacturer (Krauss Maffei Wegmann (KMW)) replied to the draft RFP. Therefore an Advanced Contract Award Notice (ACAN) was posted on MERX Summer 2011 and, as expected, no other responses were received. As a result, the project has proceeded with awarding a feasibility study contract to KMW in preparation for the implementation stage of Phase 2. Treasury Board Project Approval Implementation for Phase 2 is now scheduled for April 2013.

Industrial benefits

In accordance with the Senior Project Advisory Committee approval November 2008, 100% of Industrial and Regional Benefits (IRB) apply to Phase 1 with the exception of the government-to-government purchase of the Leopard 2 MBT chassis.

HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION

Description

The Halifax Class Modernization/Frigate Life Extension (HCM/FELEX) project is the principal component of the overall HALIFAX Class Modernization (HCM) program. The project will plan and manage HALIFAX Class mid-life refits, acquire the major elements of the new combat system, and deliver stability enhancements, degaussing improvements and a Commander Task Group capability in four ships. Major equipment acquisitions through HCM/FELEX will include a modernized Command and Control System, Multi-Link, Identification Friend or Foe Mode S/5, upgrades to the radars, new Electronic Support Measures System, upgrades to the Internal Communications system, and an upgraded Harpoon Weapon System. These acquisitions will both sustain current capability and contribute to the new littoral operations role of the HALIFAX Class.

Project phase

Implementation: The implementation of the HCM/FELEX project will occur through three principal contracts: two Multi-Ship Contracts (MSC) for docking work periods/refits and one Combat System Integration contract to develop, procure and install the key combat system elements of the project. Project completion is expected by January 2019.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

In-Service Support Contractor (Class Design Agent) Fleetway Incorporated, Halifax, Nova Scotia, Canada
Internal Communications System DRS Flight Safety, Kanata, Ontario, Canada
Multi-Ship Contract (East) Halifax Shipyard, Halifax, Nova Scotia, Canada
Multi-Ship Contract (West) Victoria Shipyards, Victoria, British Columbia, Canada
Combat System Integration Contract Lockheed Martin Canada, Montréal, Québec, Canada
Harpoon/Advanced Harpoon Weapons Control System (AHWCS) The Boeing Company, St-Louis, Missouri, USA

Major milestones

Major Milestone Date
Preliminary Project Approval February 2005 (FELEX)
February 2007 (HCM/FELEX)
Refit Procurement Strategy Approval by Treasury Board Secretariat March 2007
Revised Preliminary Project Approval (Part 1) June 2007
Multi-Ship Contracts (MSC) Awarded (Docking Work Periods & Refits) March 2008 (West)
March 2008 (East)
Effective Project Approval (EPA) (Part 2) September 2008
Combat System Integration Contract Award November 2008
Refits Begin October 2010
Full Operational Capability January 2018
Project Closure January 2019

Project outcomes

Deliver 12 modernized HALIFAX-Class ships capable to execute the roles and core missions of the Canada First Defence Strategy (CFDS). The twelve ships of the HALIFAX-Class were designed for 30 year life with the combat systems designed for 15 years and requiring mid-life upgrade to enable the ships to be effective through end-of-life. Changes in technology since the HALIFAX-Class was originally designed in the 1980s, particularly networks, have fundamentally changed how warfare is conducted at sea. Once delivered and declared at full operational capability, the modernized HALIFAX-Class ships will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcomes: Resources are acquired to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal; and National Defence is ready to meet government defence expectations, specifically the program activity of Maritime Readiness.

This capability is being delivered to the Royal Canadian Navy.

Progress report and explanations of variances

In September 2008, Treasury Board granted Effective Project Approval (EPA) and Expenditure Authority for the project with full-up project value of $2,988M ($Budget Year).

A Request for Proposal (RFP) for the Multi-Ship Contracts (docking work periods and refits) resulted in two successful bidders, Halifax Shipyard on the east coast and Washington Marine Group (Victoria Shipyards) on the west coast. Contracts were awarded to the two shipyards in March 2008. The Combat System Integration contract was awarded to Lockheed Martin Canada in November 2008.

As of the Fiscal Year (FY) 2011-12, the HCM/FELEX project was in its Implementation Phase with three ships in mid-life refit as of the end of FY 2011-12. The project is currently within budget and on schedule to achieve Full Operational Capability by January 2018.

Industrial benefits

Industrial and Regional Benefits (IRB) for this project are equivalent to 100% of the contracted value.

INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE

Description

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR) is an omnibus project that received Treasury Board approval for Definition Phase activity in April 2003. The purpose of this project is to develop, deliver and evolve an integrated, interoperable ISTAR capability that will improve the ability of commanders to visualize the operational area, manage sensors and information collection resources, and to plan and implement actions to successfully complete operational missions. The project will provide enhancements to existing capabilities and include the acquisition of new capabilities in the areas of communications, command and control and sensors.

Project phase

Implementation: The implementation of these sub-projects has been delayed in order to progress numerous Unforecasted Operational Requirements (UOR) for Afghanistan that have been implemented by the Land Force (LF) ISTAR Project Management Office (PMO). The final three sub-projects have received Effective Project Approval for Implementation in January 2012.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales US Army, USA
Light Weight Counter Mortar Radars (LCMR) - Foreign Military Sales US Army, USA
Small UAV Service Contract In Situ, Bingen, Washington, USA
Remote Viewing Terminal Unforecasted Operational Requirement (UOR) L3 Communications, CSW, Salt Lake City, Utah, USA

Major milestones

Major Milestone Date
Treasury Board Preliminary Project Approval April 2003
Minister of National Defence Approval TUAV UOR
Treasury Board Project Approval in Arrears UAV UOR
Full Operational Capability
Project Closed
May 2003
May 2005
December 2005
June 2009
Emergency Beyond Line of Sight Communication Treasury Board Effective Project Approval
Beyond Line of Sight Communication Treasury Board Effective Project Approval
Initial Operational Capability
Full Operational Capability
Project Closed
November 2005

July 2006
March 2008
March 2010
May 2010
Communications & Data Link Component Treasury Board Effective Project Approval
Initial Operational Capability
Planned Full Operational Capability
Planned close-out
December 2006
October 2009
January 2013
March 2013
Command and Control (C2) Treasury Board Effective Project Approval
Initial Operational Capability
Planned Full Operational Capability
Planned close-out
February 2008
October 2009
January 2013
March 2013
Early Warning (EW) Sensors Treasury Board Effective Project Approval Phase 1
Amendment 1 (AL 1)
Initial Operational Capability
Planned Full Operational Capability
Planned close-out
November 2005
February 2008
March 2008
January 2013
March 2013
In-Service Sensors Enhancement Project Approval Implementation
Planned Initial Operational Capability

Planned Full Operational Capability
Planned close-out
January 2012
September 2013
December 2014
March 2015
Medium Range Radar Project Approval Implementation
Planned Initial Operational Capability
Planned Full Operational Capability
Planned close-out
January 2012
January 2014
December 2015
March 2016
Weapon Locating Sensors (WLS) Acoustic Sensor Effective Project Approval
Initial Operation Capability
Full Operational Capability
Project Closed
November 2005
March 2008
November 2009
May 2010
Family of UAV Effective Project Approval for UOR
Family of UAV Project Approval Implementation AL 1
Planned Initial Operation Capability

Planned Full Operational Capability
Planned Project close-out
November 2005
January 2012
September 2013
June 2014
December 2014
Light Weight Counter Mortar Radar Effective Project Approval
Initial Operation Capability
Planned Full Operational Capability
Planned close-out
March 2007
March 2008
December 2012
March 2013
Deliveries Complete all ISTAR sub-projects December 2015
Project Completion December 2016

Project outcomes

To deliver an integrated intelligence capability with the surveillance, target acquisition, and reconnaissance assets to improve Commanders' Situational Awareness at all level of commands. Once all sub-projects are delivered and declared at full operational capability, ISTAR will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

This capability is being delivered to the Canadian Army.

Progress report and explanations of variances

Current estimates are that the project will be completed in 2016. This delay is associated with the necessary diversion of staff effort to address UORs, and with the maintenance of an off-the-shelf philosophy. In support of UORs for OPERATION ATHENA in the 2003-04 timeframe, the project delivered equipment in the areas of Command and Control, Tactical Unmanned Aerial Vehicles (TUAV), Weapons Locating Sensors and Electronic Warfare capabilities. These early deliveries enhanced professional knowledge and contributed to project definition work. Early deliveries of elements of the Unmanned Aerial Vehicles, Electronic Warfare and Data Link Communications sub-projects continued during 2006 with the UOR for OPERATION ARCHER. As well, urgently required systems, in particular the Acoustic Weapons Locating System, the Lightweight Counter Mortar Radar system, and additional Electronic Warfare systems were fielded in 2007. Responding to the need for persistent surveillance identified by the Canadian Forces (CF) Counter Improvised Explosive Devices (IED) Task Force and confirmed in the recommendation of The Independent Panel on Canada's Future Role in Afghanistan, the LF ISTAR PMO delivered additional Small Unmanned Aerial Vehicle capability through a service contract in 2008. In early 2008, the Electronic Warfare sub-project and the Command and Control sub-project were approved for implementation. The final three sub-projects have received Effective Project Approval for Implementation in January 2012.

The Tactical Unmanned Aerial Vehicle project was closed in June 2009 and the Acoustic Weapon Locating System and Beyond Line Of Sight sub-projects were closed in May 2010.

Industrial benefits

The benefits to Canadian industry from the ISTAR project continue to be determined during the approval of the procurement strategy for each sub-project. Canadian industry has derived long-term benefits from many aspects of the ISTAR project through the establishment of long-term in-service support contracts.

JOINT SUPPORT SHIP

Description

The Joint Support Ship (JSS) Project will recapitalize Canada's naval support vessels, modernizing and apportioning joint force capabilities in line with the strategic vision outlined in the Canada First Defence Strategy (CFDS). The JSS will provide Canada with a modern, task-tailored and globally deployable naval support capability. The JSS project will acquire two new support ships (with an option for a third vessel if it is affordable or if additional internal funding becomes available). In addition to being able to provide at-sea support to deployed naval task groups, they will also be capable of providing limited sealift operations and limited support to forces deployed ashore.

Project phase

Definition.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor The National Shipbuilding Procurement Strategy (NSPS) Secretariat announced on 19 October 2011 that Vancouver Shipyards Co. Ltd (VSY) is to build the JSS. Identification of major sub-contractors will be determined through the Canadian shipyard's teaming arrangement for JSS construction.

The prime contractor for the project's In-Service Support Contract (ISSC) will be competed separately from the selection of the NSPS designated shipbuilder. The JSS project intends to compete the ISSC after it has entered the project implementation phase.

Major milestones

Major Milestone Date
Options Analysis Fall 2009
Revised Project Approval (Definition) June 2010
Project Definition Phase Recommenced July 2010
Project Approval (Implementation) February 2014
Award of Implementation Contract March 2014
Initial Operational Capability - First Ship Spring 2018
Full Operational Capability Fall 2019
Project Completion Fall 2019

Project outcomes

Deliver two Joint Support Ships (JSS) along with a 30 year In-Service Support Contract by the project completion date of 2019. This project will sustain Maritime Forces capabilities and enhance Canada's ability to ensure peace and stability at Canadian, Continental, and International levels as laid out in the November 2010 Defence Priorities (for years 2011-2014) and the Canada First Defence Strategy (CFDS).

Capability is being delivered to:

  • CF (specifically the sustainment of the Royal Canadian Navy) for both national and international operations;
  • Canadian and international communities, when humanitarian assistance is required to be rendered; and
  • Canadian Shipbuilding Industry, in accordance with the National Shipbuilding Procurement Strategy (NSPS).

Progress report and explanations of variances

On 10 June 2010, the JSS project received Treasury Board expenditure authority for its Revised Definition Phase at a substantive cost estimate of $143M ($Budget Year), including HST with an indicative project cost of $2.613B ($Budget Year), including HST. The procurement strategy aims to provide a ship design to the NSPS shipyard. The ship design could be based either on a Military off the Shelf (MOTS) design or a newly developed design. Assessment of an existing, proven design is being undertaken as a potential means of reducing project risks and ensuring program affordability.

Since achieving a revised Preliminary Project Approval, it has been determined that the project's definition activities will exceed the original baseline estimate of 25 months. This slippage has occurred to support the development, negotiation, and assessment of complex design contracts.

Depending on the Vancouver shipyard's availability, most Project Definition schedule slippage is expected to be recoverable during Project Implementation.

Industrial benefits

At this time, Industrial and Regional Benefits (IRB) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.

JOINT UNMANNED AIRCRAFT SYSTEM SURVEILLANCE TARGET ACQUISITION SYSTEM

Description

This project will deliver a mature Medium Altitude Long Endurance Unmanned Aircraft System to provide the mandatory capabilities for domestic and international operations. This Joint Unmanned Aircraft System Surveillance Target Acquisition System (JUSTAS) will complement existing reconnaissance, surveillance, and target acquisition capabilities, increase maritime and arctic domain awareness and provide precision force application in support of Land and Special Operations Forces.

Project phase

Option Analysis.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada

Prime and major subcontractor(s)

Prime Contractor To be determined (TBD)
Major Subcontractor(s) TBD

Major milestones

Major Milestone Date
Project Approval (Definition) TBD
Project Approval (Implementation) TBD
Contract Award TBD
First aircraft delivery TBD
Last aircraft delivery TBD
Initial Operational Capability TBD
Full Operational Capability TBD
Project Completion TBD

Project outcomes

Deliver a mature Medium Altitude Long Endurance Unmanned Aircraft System capability that meets the objectives of the Canada First Defence Strategy (CFDS) for a robust domestic and international surveillance capability. JUSTAS delivery contributes to following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Air Force, and will support the Canadian Army and the Royal Canadian Navy.

Progress report and explanations of variances

Not applicable. The project is in the options analysis phase.

Industrial benefits

Maximum Industrial and Regional Benefits (IRB) will be sought for this project. Details will be determined by Government stakeholders.

LIGHT ARMOURED VEHICLE III UPGRADE PROJECT

Description

The recent experience of the Canadian Forces and other nations in Afghanistan, Iraq and global operational theatres highlighted the ongoing requirement for a highly protected, yet highly mobile Light Armoured Vehicle (LAV). The threats of mines and Improvised Explosive Devices (IEDs) have proliferated and are likely to be faced in most medium to high threat missions. Despite improvements to the protection of the vehicle, the current LAV III fleet has insufficient protection to defeat modern threats. Further, it has insufficient mobility given the increased protection and payload requirement of the vehicle. As well, the target acquisition and fire control systems require upgrading to overcome obsolescence issues and to improve technical effectiveness and lethality. The LAV III Upgrade Project will capitalize on existing and evolving technology to upgrade a significant portion of the LAV III fleet to a standard required to protect the soldiers and equipment of the CF in current and future operations.

Project phase

Implementation: The project is currently finalizing the system design that will allow manufacture and delivery, with first deliveries scheduled for end 2012.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor General Dynamics Land Systems-Canada, London, Ontario, Canada

Major milestones

Major Milestone Date
Treasury Board Approval for Definition June 2009
Treasury Board Approval for Contract April 2010
Treasury Board Approval for Implementation October 2011
Contract Award October 2012
First Vehicle Delivery End 2012
Last Vehicle Delivery Late 2017
Project Completed Spring 2019

Project outcomes

To deliver 550 LAV III vehicles upgraded in the areas of mobility, protection and lethality capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

This capability is being delivered to the Canadian Army.

Progress report and explanations of variances

The project received Preliminary Project Approval in June 2009 and was announced by the Minister of National Defence in July 2009. The PWGSC submission received Treasury Board (TB) approval in April 2010. The project received Effective Project Approval and Contract Approval from TB in October 2011. Both approvals were announced by the Associate Minister of National Defence and the Minister of PWGSC in October 2011.

Industrial benefits

General Dynamics Land Systems-Canada is committed to provide 100% of contract value in Industrial and Regional Benefits (IRB).

LIGHTWEIGHT TOWED HOWITZER

Description

The Lightweight Towed Howitzer (LWTH) project is a key facet of the Land Forces current indirect fire capability deficiency. Specifically, over the summer of 2011, the project fielded 25 M777 lightweight 155mm towed howitzers to the Canadian Army, each with a Gun Management System (GMS), to augment the 12 M777 howitzers currently in service. The project will also field improved ammunition, Gun Line Communication Device (GLCD), and wheeled gun tractors, based upon the Medium Support Vehicle System (MSVS) project Standard Military Pattern (SMP) vehicle. These howitzers provide a capability enhancement in terms of lethality, range, precision, mobility and digitization, and support future missions and tasks likely to be assigned to the CF.

Project phase

Implementation.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor BAE Systems, Barrow-in-Furness, Cumbria, UK
Major Subcontractor(s) SELEX Sensor and Airborne Systems Ltd, Edinburgh, UK

Major milestones

Major Milestone Date
Identification Phase Approval – Identification Phase January 2008
Preliminary Project Approval (PPA)– Definition Phase June 2008
M777 Foreign Military Sale (FMS) Agreement November 2008
DGMS Contract Award November 2009
Effective Project Approval (EPA)– Implementation Phase January 2010
M777 Initial Support Contract Award June 2010
Initial Operational Capability October 2011
Full Operational Capability March 2014
Project Close-Out June 2014

Project outcomes

Deliver the following capabilities:

  • 25 M777 155mm lightweight howitzers each equipped with a Gun Management System and digital radio (EPLRS);
  • 37 wheeled gun tractors (based upon the MSVS SMP) that will pull the howitzer and be equipped with an ammunition handling and storage system (ASHS);
  • Ammunition (including propellant, projectiles and fuses);
  • Integrated logistics support; and
  • Infrastructure enhancements.

Once delivered and declared at full operational capability (FOC), this project will contribute toward achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

This capability is being delivered to the Canadian Army.

Progress report and explanations of variances

The LWTH project is achieving defined project objectives. Final deliveries of the M777 howitzer and the Gun Management System components commenced in late 2010 and were completed Summer 2011.

The Initial Operational Capability (IOC) was originally forecasted to occur in July 2011 and was shifted to October 2011 as a result of unforeseen issues with technical integration. The project achieved IOC on October 2011.

The M777 infrastructure initiative is currently in the design phase, and is expected to be completed prior to the Effective Project Closure (EPC) in June 2014.

The LWTH project is currently running within the allocated budget and is currently planning to achieve Effective Project Closure (EPC) in June 2014, representing a 13 month slippage from the original EPC date of March 2013 due to the requirement to deliver the infrastructure, truck and ammunition components of the project.

Industrial benefits

The LWTH project has Industrial and Regional Benefits (IRB) agreements established with BAE Systems on the M777 LWTH FMS Acquisition case and with SELEX on the Gun Management System (GMS) acquisition contract.

In view of the low value of the M777 Initial Support contract and the high proportion of parts and labour, the initial support contract will not have IRBs. However, as the support concept matures, IRBs will be considered. SELEX has currently achieved approximately 50% of their IRB commitment.

MARITIME HELICOPTER PROJECT

Description

The purpose of the Maritime Helicopter Project (MHP) is to replace the CH124 Sea King with a fleet of 28 new fully equipped Maritime Helicopters bundled with a long-term in-service support contract and the modification of the HALIFAX class ships to accommodate the new Maritime Helicopters. This replacement will address the operational deficiencies of the current CH124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multi-purpose shipborne Maritime Helicopters for operations well into the 21st century.

Project phase

Implementation: In November 2011, the project marked the seven-year milestone in the Implementation Phase. The project continues to shift focus from design and engineering to flight test and preparations for operational testing and evaluation, followed by delivery of the fully capable Maritime Helicopters which contractually are required to start in June 2012. The delivery of fully capable helicopters is now expected to occur in 2013.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor Sikorsky International Operations Incorporated, Stratford,
Connecticut, USA
Major Subcontractor(s) General Dynamics Canada, Ottawa, Ontario
L-3 MAS, Mirabel, Québec, Canada

Major milestones

Major Milestone Date
Preliminary Project Approval June 2003
Invitations for Bids Posted on MERX December 2003
Effective Project Approval November 2004
Contract Award November 2004
First Delivery (Interim Maritime Helicopters) Fall 2012
First Delivery (Fully Capable Maritime Helicopters) Late 2013
Final Delivery 2013
Project Close-Out 2016

Project outcomes

Deliver 28 fully equipped Maritime Helicopters to support operations and deploy with the Halifax Class Frigates capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, it will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Air Force and will support the Royal Canadian Navy.

Progress report and explanations of variances

In December 2008, following discussions to minimize delays in the planned delivery of the integrated Maritime Helicopter, the Government and Sikorsky International Operations Incorporated agreed to a new schedule for the delivery of six interim helicopters starting in November 2010, with delivery of fully capable helicopters commencing in Summer/Fall 2012. A second contract amendment in June 2010 modified the requirements for the interim Maritime Helicopter to allow delivery with an earlier version of mission system software while still enabling the start of initial training and operational testing. As of the end of this Departmental Performance reporting period, Sikorsky International Operations Incorporated was indicating first delivery of an interim helicopter would start in June 2012.

Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on the 12 Halifax Class Frigates have progressed well and are on schedule. The first test flight of the Maritime Helicopter occurred in November 2008. The second Maritime Helicopter, the first aircraft with complete Mission System Hardware installed, underwent its first test flight in July 2009. Defence crews, as part of the Combined Test Force with Sikorsky International Operations Incorporated, began aircraft testing in July 2009. The first Ship Helicopter Operation Limitations – Sea Trial and the second Sea Trial are now complete. The project is running well within its authorized budget.

Industrial benefits

The Industrial and Regional Benefits (IRB) are equivalent to 107% of the contract value for the capital acquisition and more than 80% of the contract value for the in-service support. Further, Sikorsky International Operations Incorporated agreed to an additional $80M of IRBs in the June 2010 contract amendment for the in-service support contract.

MATERIEL ACQUISITION AND SUPPORT INFORMATION SYSTEM

Description

The mission of the Materiel Acquisition and Support Information System (MASIS) project is to provide the Department of National Defence (DND) with an integrated materiel acquisition and support information system that enables the cost-effective optimization of weapon/equipment system availability throughout the life cycle. The scope of MASIS includes all end-to-end information requirements within Defence related to the materiel acquisition and support functions, which are comprised of systems engineering, supply chain, Integrated Logistics Support (ILS), equipment configuration management, technical data management, asset management, maintenance management, project management, performance management, operational support, business management, decision support analysis and contract management.

Project phase

Implementation: To date, the project has completed Phases 1 to 4 and implementation of Phase 5 is currently underway where emphasis is on the delivery of the MASIS solution to the Army, Air Force, Navy ships and supply chain.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments N/A

Prime and major subcontractor(s)

Prime Contractor IBM Canada, Ottawa, Ontario, Canada
Major Subcontractor(s) SAP Canada, Ottawa, Ontario, Canada
Pennant, Ottawa, Ontario, Canada

Major milestones

Major Milestone Date
Preliminary Project Approval - Expenditure Authority for Phase 1 June 1998
Contract Awarded for Prime Systems Integrator December 1998
MASIS system - Go Live Phase 1 (202 Work Depot Montréal) September 1999
Expenditure Authority for Phases 2 and 3:
  • Implementation of Complex Contracts;
  • Implementation of the MASIS solution to the Navy;
  • Operations Support & Maintenance for MASIS;
  • Planning and scoping for requirements scheduled to be implemented for the Army.
May 2000
Amended Expenditure Authority for Phase 4:
  • Investigation of opportunities to progress the implementation of MASIS to the maximum extent possible within the future available Phase 5 funding;
  • Management of Operations Support & Maintenance for MASIS (outside MASIS project Expenditure Authority);
  • Project was deemed as a Major Crown Project with this approval.
December 2003
Amended Expenditure Authority for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army. June 2007
Revised Effective Project Approval (EPA) and increase to the Contracting Authority September 2011
Supply chain integrated within Defence Resource Management Information System (DRMIS) November 2013
Project Close-Out December 2013

Project outcomes

Deliver an end-to-end information system to enable materiel acquisition and support processes to the Navy, Army and Air Force. This system has improved visibility and efficiency of weapon system and equipment support. MASIS has also enabled Defence's vision of business renewal. Once delivered and declared at full operational capability, this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Joint and Common Support Equipment Acquisition and Disposal.

Progress report and explanations of variances

In June 2007, the MASIS project received Treasury Board approval for Phase 5 in the amount of $173M.

In September 2011, the project received Treasury Board approval for a refinement in its scope of work and an increase to the contracting authority to complete Phase 5 activities. The Expenditure Authority granted in 2007 was not amended as sufficient funds remain.

Industrial benefits

IBM Canada has committed to achieving Industrial and Regional Benefits (IRB) equivalent to 100% of the contract value. The total value of the contract was procured in Ontario where IBM Canada is based; and this region of Canada will be benefitting from this contract.

MEDIUM-TO-HEAVY LIFT HELICOPTER

Description

Over the last decade, the ability to move personnel and equipment by air has become a vital and growing capability requirement for the Canadian Forces (CF) in fulfilling a wide range of roles. CF operational experience, particularly in current operational theatres, has highlighted the urgent need for medium-to-heavy lift helicopters (MHLH) to support land forces in a threat environment by quickly, efficiently and safely moving large numbers of personnel and heavy equipment from forward deployed bases, thus reducing their vulnerability to attack. Both at home and overseas, MHLH will provide the Government with a wider range of military options for addressing threats and emergencies beyond the CF's current helicopter fleets.

The MHLH project will deliver 15 Chinook CH-147F helicopters to support land-based domestic and international operations and to support land staff training on the road to high readiness, as well as integrated logistic support and other related support elements.

Project phase

Implementation: The MHLH Project entered the implementation phase in July 2009. Two aircraft are currently in a flight test programme conducted by Boeing. These helicopters will complete one year of intensive test and evaluation starting June 2012. The first of fifteen helicopters is scheduled for delivery in June 2013 and the final helicopter will be received in June 2014.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor The Boeing Company, Philadelphia, Pennsylvania, USA
Prime Contractor CAE, St-Laurant, Quebec, Canada

Major milestones

Major Milestone Date
Synopsis Sheet Preliminary Project Approval June 2006
Advanced Contract Award Notice Posted on MERX July 2006
Effective Project Approval and Contract Award June 2009
First fully mission ready aircraft June 2013
Initial Operational Capability June 2014
Full Operational Capability June 2017
Project Close-Out June 2018

Project outcomes

Deliver 15 Chinook CH-147F helicopters capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Air Force and will support the Canadian Army.

Progress report and explanations of variances

In June 2009, Treasury Board granted Effective Project Approval with a substantive cost of $2.312B (excluding GST $112M). A contract was awarded to The Boeing Company in June 2009 at a value of $1.156B (USD). In March 2010, a contract amendment to the existing CAE contract for Operational Training was issued to include MHLH requirements. The MHLH project is currently on budget and in scope. The project is to be completed by June 2018.

Industrial benefits

The procurement strategy for MHLH will provide Industrial and Regional Benefits (IRB) equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. Canadian companies will have access to Boeing's global value chain which will allow them to do long-term, high-value work on Boeing's international fleets of aircraft through global partnerships.

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT

Description

The Medium Support Vehicle System (MSVS) Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. The MSVS project will deliver the following mix of vehicles:

  • Medium-sized Standard Military Pattern (SMP) vehicles:

- Up to 1,500 vehicles, with options for an additional 850,

- Up to 150 integrated armour protection systems, with options for an additional 180, and

- Up to 300 companion Load Handling System trailers, with options for an additional 290;

  • Medium-sized Militarized Commercial Off-the-Shelf (MilCOTS) vehicles:

- 1,300 commercial vehicles with militarized components; and

  • Special Equipment Vehicle (SEV) Kits:

- 895 special equipment vehicle kits, with options for an additional 110.

Project phase

Definition for SMP and SEV Kitting, and Implementation for MilCOTS and SEV Baseline Shelters.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor - MilCOTS Navistar Defence LLC, Warrenville, Illinois, USA
Prime Contractor - SEV Baseline Shelters DEW Engineering and Development ULC, Ottawa, Ontario, Canada

Major milestones

Major Milestone Date
Preliminary Project Approval June 2006
MilCOTS - Invitation for Bids Posted on MERX November 2007
MilCOTS – Revised Preliminary Project Approval December 2008
MilCOTS - Contract Award January 2009
MilCOTS - First Delivery June 2009
MilCOTS - Delivery Complete Fall 2012
SEV Baseline Shelter - Invitation for Bids Posted on MERX May 2008
SEV Baseline Shelter - Revised Preliminary Project Approval June 2009
SEV Baseline Shelter - Contract Award July 2009
SEV Baseline Shelter - First Delivery Spring 2012
SEV Baseline Shelter - Delivery Complete 2014
SEV Kits - Invitation for Bids Posted on MERX October 2011
SEV Kits - Revised Project Approval (Definition) Fall 2012
SEV Kits - Contract Award Fall 2012
SEV Kits - First Delivery Summer 2013
SEV Kits - Delivery Complete 2016
SMP - Invitation for Bids Posted on MERX To be determined (TBD)
SMP - Project Approval (Implementation) TBD
SMP - Contract Award TBD
SMP - First Delivery TBD
SMP - Delivery Complete TBD
Project Close-Out TBD

Project outcomes

Deliver a replacement fleet of medium-weight trucks capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). At the conclusion of the project, the Canadian Forces will have acquired two fleets of medium-weight vehicles (MilCOTS and SMP) as well as new SEVs. Once delivered and declared at full operational capability, the project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

This capability is being delivered to the Canadian Army.

Progress report and explanations of variances

In June 2009, Treasury Board expenditure authority was obtained for SEV Baseline Shelters for $161.4M ($Budget Year) plus GST, and a Revised Preliminary Project Approval was granted for an indicative full-up cost of $1.244B ($Budget Year) plus GST for all components of the MSVS project.

  • MilCOTS – An Agreement in Principle was reached in August 2008 with the single responsive bidder. Contract approval was received in December 2008. The contract was awarded on 9 January 2009 and the last vehicle was accepted in March 2011. Delivery of "kitted" Engineering variants and Gun Tractor variants is expected to be completed by Fall 2012.
  • SEV Baseline Shelters – An Agreement in Principle was reached in April 2009 with the single responsive bidder. Revised Preliminary Project Approval and contract approval was received in June 2009. The contract was awarded on 24 July 2009. The first shelter was delivered in Spring 2012.
  • SMP – The Request for Proposal (RFP) was released on the Government Electronic Tendering Service on December 19, 2011.
  • SEV Kitting – RFP Evaluation is completed. The Department is proceeding with securing the necessary project and contract approvals. Contract award is expected in Fall 2012.

Industrial benefits

  • MilCOTS – Industrial and Regional Benefits (IRBs) equal to 100% of the contract value, including 25% direct IRBs.
  • SEV Baseline Shelter – IRBs equal to 100% of the contract value, including 90.1% direct IRBs.
  • SMP – Industrial and Regional Benefits (IRBs) equal to 100% of the contract value, including 20% of the Acquisition Contract in direct IRBs and 35% of the In Service Support Contract in direct IRB.
  • SEV Kitting – International trade agreements prevent the application of IRBs. Industry Canada has confirmed IRBs will not be sought.

MERCURY GLOBAL

Description

The Mercury Global (MG) project will provide wideband global satellite communications that are guaranteed and directly interoperable with our principal Allies. The project will deliver a Canadian Wideband Global System (WGS) Military Satellite Communications System for near-worldwide assured, wideband communications to the CF for the command and control of deployed Canadian commanders and forces, as well as interoperability with some of our principal allies, the United States, Australia, Denmark, the Netherlands, Luxembourg, and New Zealand.

Project phase

Definition.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies
Canadian Space Agency

Prime and major subcontractor(s)

Prime Contractor
  • Satellite Constellation- United States Department of Defense (DoD) via a Memorandum of Understanding
  • Terminals - To be determined (TBD)
Major Subcontractor(s)
  • Satellite Manufacturer- Boeing, St Louis, Missouri, USA
  • Terminals - TBD

Major milestones

Major Milestone Date
Preliminary Project Approval October 2011
Initial Satellite Access November 2011
Effective Project Approval (EPA) January 2014
Terminal Implementation Complete October 2016
Full Operational Capability October 2017
Project Complete Winter 2018

Project outcomes

Deliver a near-worldwide, Canadian assured, wideband global Military Satellite Communications System. When operational, this system, when coupled with the secure and protected capabilities being delivered by the Protected Military Satellite Communications project, will ensure, in part, that the Canadian Forces will be well-equipped with modern strategic and tactical satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability, the project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Joint and Common Informatics Infrastructure Acquisition and Disposal.

Progress report and explanations of variances

In Phase 1, procurement of guaranteed access to and participation in the US Department of Defense (DoD) Wideband Global Satellite constellation to the year 2032 was approved by Treasury Board (TB) with Preliminary Approval in October 2011. TB also granted approval for DND to enter into a Military Satellite Communications (MILSATCOM) Memorandum of Understanding (MOU) with, principally, the US DoD, and also Denmark, The Netherlands, Luxembourg, and New Zealand. The MOU is the vehicle used to fund the construction and launch of the ninth Wideband Global System satellite and, thereby, provide the US DoD Wideband Global System service to DND (and the others) to, at least, the year 2032. The MOU was signed by Canada in January 2012. In addition, approval was granted to define the terminal segment and to provide funds to facilitate early use of the Wideband Global Satellite Communications service.

Effective Approval for Phase 2 will be sought in the early 2014 for the procurement and installation, where necessary, of the associated Wideband Global Satellite anchor station and strategic deployable satellite terminals. The EPA date was changed after consultation with PWGSC who advised that the project seek Project Approval and Contract Authority simultaneously.

The total indicative cost for this project (both phases) is estimated at $539.4M ($Budget Year) including $13.4M HST. The project is on budget.

Industrial benefits

Under Phase 1, the Senior Project Advisory Committee (SPAC) endorsed that the Geostationary Coverage Space Segment service would be acquired through an MOU between United States, Denmark, The Netherlands, Luxembourg, and New Zealand. Regarding Industrial and Regional Benefits (IRB), a separate agreement between Boeing and PWGSC has been negotiated in which Boeing has committed to IRBs equivalent to 100% of DND's proportionate share of the final negotiated price of the Boeing contract with the US DoD for the ninth Wideband Global Satellite.

In the future Phase 2, the strategic terminals' procurement, anchor stations' construction, and Integrated Life Support would be acquired through competitive procurement.

MILITARY AUTOMATED AIR TRAFFIC SYSTEM PROJECT

Description

Defence initiated a national air traffic system project to automate air traffic services. Defence established the Military Automated Air Traffic System (MAATS) Project to ensure that military air operations continue to function effectively. The project directly supports the Defence objective of conducting military air traffic control operations.

The MAATS project will provide the essential infrastructure, systems, and automated capabilities to efficiently interface Air Traffic Management Systems (ATMS) and accurately exchange data between applications. The project will deliver a stable, sustainable, and operational ATMS while providing as much integration as possible with NAV Canada's Canadian Automated Air Traffic System (CAATS). New equipment will be installed where system interfaces are not currently available. All existing Defence radar systems, meteorological and aids sensors are retained and interfaced to the MAATS. In 2006, CAATS was no longer in a position to support military operations and DND selected the option to progress the project with an in-house solution. Since 2006, the Aerospace and Telecommunications Engineering Support Squadron (ATESS) has been mandated to design, develop and implement the complete Defence ATMS solutions for MAATS.

Project phase

Project Close Out.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor Raytheon Canada Limited, Richmond, British Columbia, Canada
NavCanada, Ottawa, Ontario, Canada
Major Subcontractor(s) Hewlett Packard Canada Ltd, Ottawa, Ontario, Canada
CVDS, Montréal, Québec, Canada
Frequentis Canada Ltd, Ottawa, Ontario, Canada

Major milestones

Major Milestone Date
Treasury Board Effective Project Approval July 1993
Contract Award January 1994
Preliminary Design Review September 1997
May 2000
Critical Design Review February 2001
Factory Acceptance Test (Closure) January 2002
Initial Delivery (Montréal) December 2003
Contract Complete (Last Payment) December 2004
Approval received to disengage concurrent development with NAV CANADA project and pursue sustainable minimum military requirement September 2006
Begin Software Development on Phoenix Systems October 2006
Complete Phoenix NAMS II Development October 2007
Initial Operational Capability - First Wing Operational with NAMS II Equipment October 2007
Full Operational Capability (FOC) - All Wings with delivered Equipment June 2009
Begin project Close-Out July 2009
MAATS Project Close-Out Senior Review Board (SRB) January 2010
Project Management Office (PMO) Close-Out March 2010
Project Complete June 2012

Project outcomes

Radar and Environmental Data Display Systems (REDDS) were delivered to all seven Canadian Forces Wings by June 2009. The systems provide radar processing data, navigational aids data, environmental data and flight data entry. All systems are part of a closed network and are supported by Aerospace and Telecommunications Engineering Support Squadron (ATESS) in Trenton. The REDDS network also provides full connectivity to Nav Canada through their Aeronautical Fixed Telecommunication Network (AFTN). Full Operational capability was declared June 2009 and contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Air Force.

Progress report and explanations of variances

Treasury Board granted Effective Project Approval with project costs of $179.2M.

In June 2006, the MAATS project objectives were declared unachievable with CAATS. Given a number of alternative options, the MAATS' PMO recommended to cease MAATS/CAATS development, and continue the project with the implementation of an "in-house" solution coined Phoenix. With the support of Defence, the Programme Management Board (PMB) concurred with the PMO's recommendation in March 2007. MAATS' PMO was directed to de-link the project from NAV Canada's Canadian Automated Air Traffic System (CAATS); concentrate on the re-vitalization and integration of Air Traffic Controller (ATC) information sources at each of the seven Wings (Comox, Cold Lake, Moose Jaw, Bagotville, Trenton, Greenwood, and Goose Bay); keep military Instrument Flight Rules (IFR) operations at the Wings vice at two Military Terminal Control Centres; and pursue the development and fielding of the Phoenix solution.

The Phoenix solution has now completed its upgrade of the Air Traffic Management System capability inclusive of the following sub-systems: the Radar Processor, the Navigational Aids and Meteorological Sub-System (NAMS), the Air Movement Statistics Package and the Flight Data System. Phoenix is based on the proven Radar Processing Display System II (RPDS II) which was certified for Operational Airworthiness. Phoenix is built on standard commercial Off-the-Shelf hardware and open source software, thus keeping technical risk low. Installation of Phoenix equipment at 8 Wing Trenton was completed and Provisional Operational Airworthiness Clearance was granted in October 2007, ahead of schedule. Project close-out activities, including a project completion report to TBS was completed in June 2010.

All sites are now synchronized with same technology and interfaces and the Phoenix environment has been running since 2007 without any downtime or major failure. The Vancouver 2010 Olympics shifted ATESS personnel priorities, delaying the revision of the last delivery called Flight Data Entry Terminal.

Industrial benefits

Industrial and Regional Benefits (IRB) to be applied across all regions of Canada.

NEXT GENERATION FIGHTER CAPABILITY

Description

The objective of the Next Generation Fighter Capability (NGFC) project is to acquire a next-generation aircraft to replace the CF-18 fleet on its retirement so as to maintain a manned fighter capability necessary for the defence of Canada and North America, and for CF collective expeditionary operations.

Project phase

Options Analysis

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments National Fighter Procurement Secretariat
Public Works and Government Services Canada (PWGSC)
Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor To be determined (TBD)
Major Subcontractor(s) TBD

Major milestones

Major Milestone Date
Treasury Board Project Approval (Definition) To be determined (TBD)
Treasury Board Project Approval (Implementation) TBD
First Aircraft Order TBD
Delivery First Aircraft TBD
Initial Operational Capability TBD
Full Operational Capability TBD
Project Close-Out TBD

Project outcomes

The NGFC project will deliver a next-generation fighter aircraft capable of executing the roles and core missions described in the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, NGFC will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Air Force.

Progress report and explanations of variances

A Project Management Office was stood up in October 2010 and work has since been initiated to advance a Treasury Board submission seeking project approval and initial expenditure authorities.

On 3 April 2012, the Government of Canada announced a comprehensive response to Chapter 2 of the 2012 Spring Report of the Auditor General of Canada that included a seven-step action plan to fulfill and exceed the Auditor General's recommendation. Canada will not sign a contract to purchase new aircraft until these steps are completed. Canada remains committed to ensuring that the Royal Canadian Air Force has the aircraft it needs to do the jobs asked of it.

The dates for all major milestones are now 'to be determined', as a result of the comprehensive response to Chapter 2 of the 2012 Spring Report of the Auditor General of Canada. Specifically, additional reviews are being coordinated by the National Fighter Procurement Secretariat and will be completed prior to DND and PWGSC jointly seeking project approval from Treasury Board. The project will commence project definition activities following project approval from Treasury Board.

Industrial benefits

Canada will continue to identify opportunities for Canadian Industry to participate in the Joint Strike Fighter Program and the replacement of the CF-18 fleet.

PROTECTED MILITARY SATELLITE COMMUNICATIONS

Description

The Department of National Defence (DND) and the Canadian Forces (CF) are being provided with global communications that are secure, guaranteed and directly interoperable with our Allies by the Protected Military Satellite Communications (PMSC) project. The project will deliver a Canadian Advanced Extremely High Frequency (AEHF) Military Satellite Communications System for near-worldwide assured, secure, survivable, and jam-resistant communications to the CF for the command and control of deployed Canadian commanders and forces, as well as interoperability with some of our principal allies, the United States, The United Kingdom, and The Netherlands.

Project phase

Implementation: The PMSC project is being implemented in two phases with project completion expected for winter 2020-21.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor United States Department of Defense (DoD) via FMS
Major Subcontractor(s) Raytheon, Waltham, Massachusetts, USA

Major milestones

Major Milestone Date
Preliminary Project Approval (PPA) August 1999
Effective Project Approval (EPA) November 2003
Initial Terminal Delivery Fall 2011
Initial Satellite Availability Winter 2012-13
PMSC System Full Operational Capability December 2020
Project Complete March 2021

Project outcomes

Deliver a near-worldwide, assured, secure, survivable, and jam-resistant Canadian Advanced Extremely High Frequency (AEHF) Military Satellite Communications System. This system, when coupled with the wideband capabilities being delivered by the Mercury Global project, will ensure, in part, that the Canadian Forces will be well-equipped with modern strategic and tactical satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability the project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Joint and Common Informatics Infrastructure Acquisition and Disposal.

Progress report and explanations of variances

In the completed Phase 1, procurement of guaranteed access to the US Department of Defense (DoD) Advanced Extremely High Frequency (AEHF) satellite constellation was approved by Treasury Board (TB) with Preliminary Project Approval (PPA) in August 1999. TB also granted approval for the Department of National Defence (DND) to enter into a Military Satellite Communications (MILSATCOM) Memorandum of Understanding (MOU) with the US DoD. This would ensure DND access to the US DoD Advanced Extremely High Frequenc satellite constellation. This MOU was signed in November 1999. In addition, approval was granted to define the terminal segment. The total cost of this Phase was a substantive cost estimate of $270.8M ($Budget Year), GST included.

Phase 2 has been underway since November 2003, when TB granted Effective Project Approval (EPA) for the procurement and installation, where necessary, of the associated Advanced Extremely High Frequency satellite terminals at a substantive estimated cost of $321M ($Budget Year) including GST/HST.

The total substantive cost (including funds approved at PPA) is currently estimated at $592M ($Budget Year) including GST/HST. The project is on budget.

Due to slippages in the US DoD overall satellite launch schedule and the Victoria Class submarine installations, the PMSC System Full Operational Capability, has moved to December 2020 from the original expected date of November 2017.

Industrial benefits

Under the completed Phase 1, the US DoD committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations were permitted to bid on project work.

For Phase 2, a Senior Project Advisory Committee (SPAC) endorsed that terminal acquisition and support will be procured through Foreign Military Sales (FMS) with installation performed through Defence-managed contracts. Industrial and Regional benefits were negotiated with Raytheon by Industry Canada.

The Industrial & Regional Benefits (IRB) are equal to 100% of the contracted value for both Phase 1 & 2.

SUBMARINE CAPABILITY LIFE EXTENSION

Description

The Submarine Capability Life Extension (SCLE) project replaced the Oberon class submarine fleet with four surplus British Upholder class (renamed Canadian Victoria class) submarines. The project will ensure that Canada preserves its submarine capability within the existing capital budget. The project supports Canada's ability to conduct surveillance and control of its territory, airspace and maritime areas of jurisdiction, as well as Canada's ability to participate in bilateral and multilateral operations.

Project phase

Implementation: The project has delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews. Canadianization of three platforms and 13 of 17 associated projects have been completed. The last platform (HMCS Chicoutimi) will complete Canadianization during her Extended Docking Work Period (EDWP) which officially began in July 2010 and is scheduled to be complete in time for Chicoutimi to join the fleet in 2013. Effective Project Closure of SCLE is planned for 2013. The remaining associated projects will be completed by the end of HMCS Corner Brook's EDWP in December 2015.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor The Government of the United Kingdom, (UK) of Great Britain and Northern Ireland, Ministry of Defence, UK
Major Subcontractor(s) British Aerospace Engineering (BAE) Marine Systems (formerly Vickers Shipbuilding and Engineering Limited (VSEL)/Marconi Marine) Cumbria, UK

Major milestones

Major Milestone Date
Treasury Board Approval June 1998
Main Contract Award July 1998
Initial Support Contract Award July 1998
Initial Operational Capability (IOC) April 2006
Full Operational Capability (FOC) December 2012
Effective Project Close-Out March 2013

Project outcomes

The SCLE Project has acquired a complete submarine capability to replace the previous OBERON class submarines; this replacementcapability includes:

  • four functional Victoria class submarines, acquired from the United Kingdom Ministry of Defence, with up-to-date "safe to dive" certificates;
  • four crew trainers; including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer;
  • a technical data package consisting of manuals, design data, trials reports and maintenance and configuration records;
  • initial spares including on-board and depot spares, special tools and other support equipment; and
  • initial conversion training of four Canadian submarine crews and the fleet support personnel necessary to maintain and operate the Victoria Class.

This project contributes to achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.

This capability is being delivered to the Royal Canadian Navy.

Progress report and explanations of variances:

EPA was granted to the SCLE project in June 1998 at an estimated total cost of $812M ($Budget Year) net of GST. The expenditure ceiling was increased by $84.8M by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. The SCLE project is within budget and, in fact, returned $20 million in expenditure authority in January, 2011.

Canada has accepted all four Upholder submarines from the United Kingdom. The operational status of each of these vessels is summarized below:

  • Her Majesty's Canadian Submarine (HMCS) Victoria completed an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Breton in November 2011 and exercise torpedo firings in March/April 2012. She is currently available to Commander RCN for operations;
  • HMCS Windsor is currently undergoing an EDWP at Fleet Maintenance Facility (FMF) Cape Scott. She was undocked in April 2012 and will complete the remaining EDWP activities in 2012;
  • HMCS Corner Brook is currently in a scheduled Extended Limited Maintenance Period (ELMP) and will commence her EDWP in early 2013; and
  • HMCS Chicoutimi was handed over to Canada in October 2004 and, while en-route to Canada, had an electrical incident at sea that resulted in a fire; she was returned to Canada via sealift. Although some of the repairs have been completed, a decision was taken to delay the completion of the repair and Canadianization until her EDWP. This EDWP, the first to be conducted by industry, commenced in July 2010 under the management of the Victoria In-Service Support Contractor (Babcock Canada Inc.). This EDWP is scheduled to be complete in time for CHICOUTIMI to join the fleet in 2013.

Based on progress to date and current information, all performance objectives of this contract will be met within the allocated budget.

Although Effective Project Closure is expected to be achieved by 31 March 2013, a small number of Engineering Changes still require installation in HMCS Corner Brook during her upcoming EDWP. This will necessitate the scheduling of funding to FY 2014-15 or FY 2015-16.

Industrial benefits

This project will provide an estimated $200M in direct and indirect Industrial and Regional Benefits (IRB). This includes Canadian modifications to the submarines and the relocation of the simulators and trainers to Canada. A further $100M in IRBs have taken the form of waivers to provide industrial offsets in the United Kingdom for Canadian companies bidding on Defence contracts.

TACTICAL ARMOURED PATROL VEHICLE

Description

The Tactical Armoured Patrol Vehicle (TAPV) Project is one of the four projects within the Army's "Family of Land Combat Vehicles".

The TAPV Project will deliver a wheeled combat vehicle to the Canadian Army that will fulfill a wide variety of roles on the battlefield, including but not limited to reconnaissance and surveillance, security, command and control, cargo and armoured personnel carrier. It will have a high degree of tactical mobility and a very high degree of crew survivability.

The project scope includes an estimated initial purchase of 500 TAPV and an optional purchase of up to 100 additional vehicles, plus associated long-term in-service support.

Project phase

Definition.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Prime Contractor Not identified at this time
Major Subcontractor(s) Not identified at this time

Major milestones

Major Milestone Date
Identification Phase approved March 2008
Project Charter approved May 2009
Preliminary Project Risk Assessment endorsed June 2009
Definition Phase approved June 2009
Statement of Operational Requirements approved January 2010
Project Approval (Implementation) June 2012
Contract awarded June 2012
Initial Operational Capability 2014
Full Operational Capability 2016
Project Completion Report 2017

Project outcomes

The TAPV project expects to achieve the following outcomes:

  • An initial purchase of 500 TAPV;
  • An optional purchase for up to 100 additional vehicles;
  • Procurement and delivery of essential Integrated Logistics Support (ILS) to sustain the fleet the first two years;
  • Acquisition of an operational stock and two years of training stocks of ammunition; and
  • Implementation of a long-term (25-year) through life In-service Support Contract to be funded through Army National Procurement funds.

This project contributes to achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

This capability is being delivered to the Canadian Army.

Progress report and explanations of variances

The TAPV Project entered its definition phase with the approval of Treasury Board in June 2009. The TAPV Project is within its approved budget.

In November 2008, the Senior Project Advisory Committee approved a procurement strategy for a phased approach within a competitive process. Public Works and Government Services Canada released the Letter of Interest/Price and Availability in July 2009 to obtain cost and schedule information to support the Project Approval (Implementation) submission. A Statement of Interest and Qualification was released in March 2010 and closed in June 2010 with seven pre-qualified bidders announced in July 2010. A draft Request for Proposal (RFP) was issued in November 2010 and the final RFP was issued in March 2011 with a closing date of August 2011. RFP evaluation and testing of contender vehicles commenced in Fall 2011 and was completed in January 2012.

Industrial benefits

This procurement will provide Industrial and Regional Benefits (IRB) for the capital acquisition of the TAPV and its associated in-service support. Direct industrial and regional benefits requirements have been established at 25% for the Acquisition Contract and at 40% for the Support Contract.

TANK REPLACEMENT PROJECT

Description

The purpose of the Tank Replacement Project (TRP) is to replace Canada's aging Leopard 1 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The Tank Replacement Project is divided into two phases. Phase 1 consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT), two Armoured Recovery Vehicles (ARVs), and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBT from the Netherlands Government. Phase 2 consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 tanks and armoured recovery vehicles into service with the CF as well as the Integrated Logistics System (ILS) inherent to the variants.

Project phase

Implementation: The project received Preliminary Project Approval (PPA) (inclusive of EPA for Phase 1) from Treasury Board in March 2007 and Effective Project Approval (EPA) in June 2009 for Phase 2. The project is capped at $650M.

Leading and participating departments and agencies

Lead Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Departments Industry Canada and its regional agencies

Prime and major subcontractor(s)

Phase 1
Prime Contractor for ARV upgrades Rheinmetall Land System (RLS), Germany
Prime Contractor for MBT upgrades Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for loaned tanks German Government
Prime Contractor for tank purchase Netherlands Government
Phase 2
Prime Contractor for 20 Leopard 2 A4M (operational) tanks Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 20 Leopard 2 A6M tanks for return to German Government Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 42 Leopard 2 A4 training tanks Rheinmetall Canada Inc (RhCan), Canada
Prime Contractor for 8 Leopard 2 ARVs RheinmetallLand System (RLS), Germany

Prime Contractors for ILS related contracts:

1. Ammunition



2. Simulators

3. Special Tools & Test Equipment
(STTE)

4. Initial Provisioning of Spare Parts


Sub-Calibre Training Devices (SCTD)


General Dynamics Ordnance and Tactical Systems - Canada
Rheinmetall Defence Electronics (RDE) - Germany

Various OEMs (9 Contracts)

Various OEMs. More parts to be sourced.


On hold, requirement under review by the Army after the first RFP delivered no compliant bidder.

Major milestones

Major Milestone Date
Memorandum to Cabinet March 2007
Treasury Board Preliminary Project Approval (PPA) March 2007
Phase 1 - Loan Agreement with German MoD May 2007
Phase 1 - Contract to KMW for upgrades to Loaned tanks May 2007
Phase 1 - Contract to RLS for upgrades to Loaned tanks May 2007
Initial Operating Capability (IOC) August 2007
Phase 1 - Acquisition of tanks from Dutch Government December 2007
Phase 1 – PPA amendment approved by Treasury Board June 2008
Memorandum to Cabinet Amendment April 2009
Treasury Board Effective Project Approval (EPA) with conditions June 2009
Phase 2 – Contract to KMW for 20 Leopard 2 A4M Operational tanks (repair, overhaul and upgrade) June 2009
Phase 1 – Contract to KMW for replacement in kind tank return to German MoD - 20 x Leopard 2A6 (NLD) tanks July 2009
Phase 2 – Contract for repair and overhaul of 42 x Leopard 2A4 CAN (Training) tanks August 2010
Phase 2 – Contract for 8 Leopard 2 ARV November 2011
Full Operational Capability (FOC) – (Phase II) February 2015 (TBC)
Project Close-Out May 2015 (TBC)

Project outcomes

Deliver the following capabilities:

  • 20 Leopard 2 A6M – Operational Main Battle Tanks (MBTs). L55 Gun with additional mine protection and slat armour systems;
  • 20 Leopard 2 A4M – Operational MBTs. L44 Gun with mine protection, slat armour and all around add-on armour systems;
  • 42 Leopard 2 A4 – Main Battle Tanks primarily used for training. L44 Gun with basic protection;
  • 8 Leopard 2 Armoured Recovery Vehicle (ARV);
  • Appropriate ammunition, parts and special maintenance tools and training; and
  • 10 Leopard 2 Main Battle Tanks were provided to the Force Mobility Enhancement project for conversion to Leopard 2 Armoured Engineer Vehicles.

This project contributes to achieving the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

This capability is being delivered to the Canadian Army.

Progress report and explanations of variances

Treasury Board (TB) approved the PPA Amendment in June 2008 allowing the replacement in kind concept for the loaned tanks. Canada will retain the loaned German Leopard 2 A6M. In return, the purchased Dutch Leopard 2 A6 will be converted to a German standard and returned to the German Ministry of Defence.

Effective Project Approval was granted by TB in June 2009 supporting the Phase 2 procurement strategy including development of a work capacity in Canada. Initially, the development of this capacity was expected to lead to Full Operational Capability (FOC) in October 2014. Due to contract issues, the new estimate for FOC is February 2015. This change is linked to the delivery of the ARVs to the project. Cost continues to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities.

TRP plans to reallocate up to an additional $5M for infrastructure in CFB Gagetown. In response to the increased re-distribution of Leopard 2 tanks in CFB Gagetown, the current plan for infrastructure development is insufficient. Additional funding is required to address these critical requirements and will be addressed at the Senior Review Board (SRB) in June 2012.

The project continues to move forward aggressively while ensuring effective support to Army high readiness training and the establishment of critical support contracts.

Industrial benefits

No Industrial and Regional Benefits (IRB) were required for Phase 1.

For Phase 2, IRBs are a requirement. Bidders were required to submit acceptable IRB proposals with their bids, and are required to undertake IRB activities in Canada valued at 100% of the contract value. Contractors will be required to submit annual IRB reports detailing their achievements, which Industry Canada will review and verify.

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