Procurement of Capabilities

Description

Procure advanced capabilities to maintain an advantage over potential adversaries and to keep pace with Allies, while fully leveraging defence innovation and technology. Streamlined and flexible procurement arrangements ensure Defence is equipped to conduct missions.   

Planning highlights

Procure advanced capabilities to maintain an operational advantage over potential adversaries and to keep pace with Allies, while fully leveraging defence innovation and technology.

Effective defence procurement is vital to ensuring the Canadian Armed Forces (CAF) is equipped and ready to fulfill the important missions required to protect and defend Canada and Canadians.

Reforms will continue to be introduced and implemented to streamline defence procurement and build on recent measures to improve procurement across the government, reducing complexity and redundancy, in order to ensure the timely delivery of projects.

Key Corporate Risk(s)

One DND/CAF key corporate risk can be associated with the Procurement of Capabilities core responsibility. There is a risk that the complexity of development, program approval, and procurement processes will prevent DND/CAF from meeting its investment targets in critical physical assets. This risk is prevented and mitigated by many of the controls articulated as activities of each Departmental Result below.

Departmental Result 5.1 – Defence procurement is streamlined

  • Help reduce contract approval timelines through an 18 month pilot project initiative with Public Services and Procurement Canada and Treasury Board Secretariat to implement a risk-based approach to contract approvals for defence procurement in support of Strong, Secure, Engaged (SSE).
  • Reduce departmental approval times through initiatives such as the Project Approval Process Renewal allowing projects to be completed in a shorter time.
  • Increase the transparency and timeliness of communication with defence industry associations, including meetings with Canadian industry through a Defence Industry Advisory Group and other boards.

Planned results

Departmental Results Departmental Result Indicators Target Date to achieve target 2015–16 Actual results 2016–17 Actual results 2017–18 Actual results
5.1 Defence procurement is streamlined
% of projects that meet the approved project development and approval timelines (low risk and low complexity projects)
100%
31 March 2020

Not Available New indicator as of 2018-19

Not Available New indicator as of 2018-19
Not Available New indicator as of 2018-19
% of projects and services contracts that are awarded within established performance targets
100%
31 March 2020
Not Available New indicator as of 2018-19 Not Available New indicator as of 2018-19
Not Available New indicator as of 2018-19
Note: For more information about National Defence performance indicators, please visit GC InfoBaseFootnote xlii.

Departmental Result 5.2 – Defence equipment acquisition is well-managed

  • Grow and professionalize the procurement workforce to strengthen the capacity to manage the acquisition and support of today’s complex military capabilities. The talent, knowledge and competency development of the procurement community will be optimized through enhanced training and professional accreditation of the workforce.
  • Key equipment projects in 2019-20 include:
    • Future Fixed Wing Search and Rescue Aircraft; 
    • Arctic and Offshore Patrol Ships continued construction;
    • Joint Support Ship continue design and production engineering;
    • Canadian Surface Combatant Project continue design and production engineering;
    • Release of the finalized competitive request for proposal for the replacement of the CF-18 fighter aircraft*;
    • CF-18 interim capability project to supplement the CF-18 fighter aircraft until the permanent replacement arrives*;
    • Urban Operations Training System;
    • Medium Support Vehicle System – Standard Military Pattern;
    • Light Armoured Vehicle Upgrade; and
    • Integrated Soldier Systems Project.

* Note: The CF-18, which was adapted from the American F/A-18, is also known as the officially designated CF-188 in Canadian use.


The Royal Canadian Air Force’s Future Fixed Wing Search and Rescue Aircraft

The first of 16 Airbus aircraft is expected to be delivered late 2019 in Spain for operational testing. The new fixed-wing search and rescue aircraft will carry out critical, life-saving search and rescue missions across Canada’s vast and challenging territory, including the Arctic. Combined with training simulators, a training centre, and up to 20 years of in-service support, these aircraft will provide a complete, modern and technologically advanced search and rescue solution.

An artist’s rendition of the Royal Canadian Air Force CC-295. The Government of Canada announced the selection of this aircraft produced by Airbus as the replacement for the RCAF’s legacy fixed-wing search and rescue aircraft – the CC-130 Hercules and the CC-115 Buffalo – on 8 December 2016.

Photo by: Airbus

For more details on these and other projects, refer to the following websites:

Planned results

Departmental Results Departmental Result Indicators Target Date to achieve target 2015–16 Actual results 2016–17 Actual results 2017–18 Actual results
5.2 Defence equipment acquisition is well-managed
% of capital equipment projects that remain in approved scope
100%
31 March 2020

100%

100%
100%
% of capital equipment projects that remain on approved schedule
100%
31 March 2020
71% 87% 56%
% of capital equipment projects that remain within approved expenditure authority
100%
31 March 2020
100%
100%
100%
Note:  For more information about National Defence performance indicators, please visit GC InfoBase Footnote xlv.

Departmental Result 5.3 – Defence information technology acquisition is well-managed

  • DND will continue to work with the applicable internal sponsors and other government departments in an effort to achieve the demands and to implement the activities outlined in SSE as it relates to information management and information technology capital projects. In addition, DND Information Management and Information Technology project managers will work with internal stakeholders to adopt project management practices suited to the expedited delivery of information technology capability.
  • DND will deliver full operational capability for the following projects in FY 2019-20:
    • Defence Cryptographic Modernization Project – Identify Friend or Foe Mode 5;
    • Defence Biometric Collection and Identification Management; and
    • Juniper Green Project. 

Planned results

Departmental Results Departmental Result Indicators Target Date to achieve target 2015–16 Actual results 2016–17 Actual results 2017–18 Actual results
5.3 Defence information technology acquisition is well-managed
% of information technology projects that remain in approved scope
100%
31 March 2020

100%

100%
100%
% of information technology projects that remain on approved schedule
100%
31 March 2020
90%
90%
95%
% of information technology projects that remain within approved expenditure authority
100%
31 March 2020
100%
95% 100%
Note: For more information about National Defence performance indicators, please visit GC InfoBaseFootnote xlvi.

Departmental Result 5.4 – Supplies are available and well-managed

  • Enhance materiel accountability by implementing modern, effective inventory controls, supply chain management and inventory valuation:
    • Continue to evaluate options to determine the application of business analytics to improve supply chain performance; and
    • Continue to modernize the business processes for substantive and enduring materiel management improvements.

Planned results

Departmental Results Departmental Result Indicators Target Date to achieve target 2015–16 Actual results 2016–17 Actual results 2017–18 Actual results
5.4 Supplies are available and well-managed
% of stock that is unavailable to meet forecasted demand
Less than 7.93%
31 March 2020
5.1%
5.01%
5.85%
% of stock that is identified as surplus
To be determined by 31 March 2020
To be determined by 31 March 2020
Not Available New indicator as of 2018-19
Not Available New indicator as of 2018-19
Not Available New indicator as of 2018-19
Note: For more information about National Defence performance indicators, please visit GC InfoBaseFootnote xlvii.

Budgetary financial resources (dollars)

2019–20
Main Estimates
2019–20
Planned spending
2020–21
Planned spending
2021–22
Planned spending
3,132,405,450 
3,135,440,658 
3,894,676,602 
2,777,492,604 

Human resources (full-time equivalents) 

2019–20
Planned full-time equivalents
2020–21
Planned full-time equivalents
2021–22
Planned full-time equivalents
2,339
2,339
2,339

Note: Financial, human resources and performance information for the National Defence’s Program Inventory is available in the GC InfoBaseFootnote xlviii.

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: