Status report on transformational and major Crown projects

The objective of the Arctic and Offshore Patrol Ship (AOPS) project is to deliver six ice-capable offshore patrol ships that will be used by the Royal Canadian Navy to conduct sovereignty and surveillance operations in Canada’s waters, including the Arctic, as well as to conduct a wide variety of operations. 

This project currently contributes to Program Inventory 5.1 Maritime Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Maritime equipment projects remain in approved scope, schedule and expenditure authority.

The AOPS project has the following project outcomes:

• Acquire six Arctic and Offshore Patrol Ships;
• Deliver associated jetty infrastructures in Halifax; 
• Contribute funding to associated jetty infrastructure project in Esquimalt; 
• Deliver a berthing and fueling facility at Nanisivik, Nunavut; and 
• Acquire associated integrated logistics support products.

Once the vessels are introduced into service they will be contributing to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Navy:

• Introduces a new fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective;  
• Ensures Maritime Forces Elements are deployable in support of Force Posture and Readiness; and
• Ensures fleets are available as planned to meet training and operational readiness requirements.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project.

Canada will receive IRBs equivalent to 100% of the contracted value for the AOPS implementation. In-Service Support of the vessels is managed separately under the Arctic and Offshore Patrol Ship and Joint Support Ship (AJISS) In-Service Support Contract which was awarded in 2017.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

Acquisition:

Irving Shipbuilding Inc. – Halifax, Nova Scotia, Canada

In-Service Support: Thales Canada Inc. and Thales Australia Inc. – Ottawa, Ontario, Canada.  A single long-term In-Service Support Contract (ISSC) to support the AOPS and Joint Support Ship (JSS) vessels is in place.

Gibbs & Cox – Arlington, Virginia, USA

Lockheed Martin – Ottawa, Ontario, Canada

General Electric – Peterborough, Ontario, Canada

Fleetway Inc. – Ottawa, Ontario, Canada

Lloyds Register – Toronto, Ontario, Canada

BAE Systems – Ottawa, Ontario, Canada

L-3 MAPPS – St Laurent, Quebec, Canada

Implementation December 2014

Closeout (expected) 2024

Preliminary Project Approval May 2007

Design Engineering Logistics Maintenance and

Support Contract Awarded May 2008

Revised Project Approval (Definition) IOctober 2011

Ancillary Contract Awarded June 2012

Revised Project Approval (Definition) II December 2012

Definition Contract AwardedMarch 2013

Project Approval (Implementation) December 2014

Award of Implementation ContractJanuary 2015

Revised Project Approval (Implementation)November 2018

Delivery of First Ship 2019

Initial Operational Capability 2020

Full Operational Capability 2025

Project Closeout 2026

The AOPS project is achieving project objectives, notably:

• In accordance with the 2012 approved budget, the Definition Contract was completed in November 2015 under budget;  
• With the official cutting of steel, the lead ship in the class, the future HMCS Harry DeWolf, entered full production in September 2015;
• With the official cutting of steel, the second ship in the class, the future HMCS Margaret Brooke, entered full production in August 2016; 
• With the official cutting of steel, the third ship in the class, the future HMCS Max Bernays, entered full production in December 2017; 
• Jetty infrastructure projects in Esquimalt, Halifax and Nanisivik are progressing and are on track to be in place when required. In September 2018, the future HMCS Harry DeWolf was launched at Halifax Shipyard in Nova Scotia; and
• The future HMCS Harry DeWolf was named at an official naming ceremony by Mme. Sophie Grégoire Trudeau at the Halifax Shipyard in October 2018; 

Scope: In November 2018, the Government of Canada approved the construction of a sixth ship. The project is on track to deliver its 2018 approved scope.

Cost: In November 2018, the Government of Canada approved the increased budget to build a sixth Arctic and Offshore Patrol Ship and to extend the production schedule. The project is currently within the 2018 approved budget. 

Schedule: In November 2018, the Government of Canada approved the extension of the production schedule by 18 months, thereby mitigating the production gap between the Arctic and Offshore Patrol Ship and Canadian Surface Combatant construction. Production activities are underway, with Ship 1 delivery expected in summer 2019.

Work Plan: In the Fiscal Year 2019-20, the AOPS project will achieve the following:

• In winter 2019, with the official cutting of steel, the fourth ship in the class, the future HMCS William Hall, is scheduled to enter full production;
• In summer 2019, delivery of the first ship in its class, the future HMCS Harry DeWolf;
• In the fall 2019, launch of the second ship, the future HMCS Margaret Brooke; and
• In the fall 2019, production start of the fifth ship, the future HMCS Frédérick Rolette.

The objective of the Canadian Cryptographic Modernization Program (CCMP) is to 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.

CCMP is an Omnibus Project that includes multiple sub-projects for modernizing cryptographic equipment and a cyclical project for modernizing the key management infrastructure.

This project currently contributes to Program Inventory 5.4 Defence Information Technology Systems Acquisition, Design and Delivery of the Departmental Results Framework, its outcome is to ensure Information Technology capabilities address a capability gap or deficiency.

The CCMP Omnibus Project will deliver affordable information protection to departments and agencies in the Government of Canada by means of the following sub-projects:

• Classified Security Management Infrastructure (CSMI); 
• Secure Voice / Telephone Family;
• Link Encryption Family; 
• Secure Mobile Environment;
• Network Encryption Family;
• Combat Identification Family (Identification Friend or Foe (IFF)); and
• Secure Radio Family:
  • Secure Radio Sub-Project; and
  • Combat Net Radio Enhancement (CNRE) – this project received funding toward cryptography from CCMP but it is not a Defence CCMP sub-project.

Once the project is complete, it will be contributing to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces:

• Protect and defend critical military platforms and network from electronic warfare and cyber-attack; and exploit vulnerabilities of an adversary through cyberspace.

N/A

Communications Security Establishment (CSE)

Public Services and Procurement Canada (PSPC)

Departments and agencies of the Government of Canada using cryptographic equipment to protect classified information

N/A

Various allied manufacturers of cryptographic equipment

Close-Out of the first implemented CCMP sub-projectSeptember 2009

Closeout of the CCMP Omnibus Project (expected) 2022

PROJECT APPROVAL:

CCMP Omnibus Project ApprovalMarch 2005

Amended CCMP Omnibus Project Approval February 2017

Amended CCMP Omnibus Project ApprovalNovember 2017

CSMI Project Approval November 2006

Amended CSMI Project ApprovalNovember 2017

CCMP SUB-PROJECT DATES:

Secure Voice / Telephone Family – Implementation November 2004

Secure Voice / Telephone Family – Completion July 2012

Re-Key Infrastructure – Implementation November 2004

Re-key Infrastructure – Completion September 2009

CSMI – Phase 1A – Implementation November 2006

Amended CSMI – Phase 1A – Implementation November 2017

CSMI – Phase 1A – Completion 2018

CSMI – Phase 1B – Definition November 2006

CSMI – Phase 1B – Implementation February 2008

CSMI – Phase 1B – Completion March 2013

CSMI – Phase 2 – Definition February 2008

Amended CSMI – Phase 2 – Definition June 2011

CSMI – Phase 2A – Implementation November 2012

CSMI – Phase 2A – Completion 2019

CSMI – Phase 2B – Implementation November 2017

CSMI – Phase 2B – Completion 2022

CSMI – Phase 3 (Cancelled) capability will be

delivered under CSMI Phase 2B

Link Encryption Project (DND) – Implementation November 2006

Note: DND’s Link Encryption Project was completed in March 2013

Network Encryption Project (DND) – Implementation June 2011

Network Encryption Project (DND) – Completion 2019

Amended Network Encryption Project (DND) February 2017

Network Encryption Family –Completion 2019

Link Encryption Family – Completion 2020

Combat Identification (IFF Mode 5) – Definition November 2011

Combat Identification (IFF Mode 5) – Implementation March 2014

Combat Identification (IFF Mode 5) – Completion 2020

CNRE – Definition August 2011

CNRE – Implementation January 2013

CNRE – Completion 2020

Secure Radio Project – Implementation February 2017

Secure Radio Project (DND) – Completion 2021

Secure Mobile Environment (Cancelled) N/A

The CCMP Omnibus Project has achieved project objectives, notably:

• The Secure Voice / Telephone Re-key Infrastructure sub-project was completed in September 2009;
• The Secure Voice / Telephone Family sub-project was completed in July 2012;
• The DND Link Encryption Project was completed in March 2013;
• The CSMI Phase 1B sub-project was completed in March 2013; and
• The DND Network Encryption Project completed Land based installations in 2016.

CSMI Phase 1A – The Project was closed in September 2018. The Project Completion Report will be finalized in December 2018.

Scope: The CCMP Omnibus Project is on track to deliver its 2005 approved scope.

Cost: The CCMP Omnibus Project is currently within the 2017 approved budget.

Schedule: The schedule is dependent on the U.S. Cryptographic Modernization Initiative and the Key Management Infrastructure Program. Completion dates for the sub-projects are regularly reviewed for alignment with the U.S. initiative/program.

The CCMP Omnibus Project originated as a 12-year program ending in 2016 but it has been extended to 2022 due to increased complexity and delays in the CSMI Project that relies on input from the United States Key Management Infrastructure (KMI) Program.

Work Plan for the Fiscal Year 2019-20:

CSMI Phase 2A – Project close-out is scheduled for March 2019.

CSMI Phase 2B – CSMI Phase 2B is currently scheduled for completion in 2022, but milestones and completion dates are under review.

DND Network Encryption Project – Complete Navy Ship installations and prepare the project for close-out scheduled for November 2019.

Combat Identification (IFF Mode 5) – Complete delivery of equipment, assist with IFF Mode 5 systems certifications and prepare the project for close-out scheduled for August 2020.

DND Secure Radio – Completed Handheld and Backpack radio fielding for the Army. Continue Secure Radio and cryptographic device procurements, and engineering and installation of cryptographic devices into weapon platforms (Ships and Aircraft). Project close-out is scheduled for August 2021.

CNRE – Full Rate Production is proceeding on schedule. Project close-out is scheduled for December 2020.

The objective of the Canadian Surface Combatant (CSC) project is to acquire a new surface combatant capability that will replace the Iroquois Class destroyers and the Halifax Class frigates. This acquisition will provide the capability to monitor and defend Canadian waters and to make contributions to international naval operations.

This project currently contributes to Program Inventory 5.1 Maritime Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Maritime equipment projects remain in approved scope, schedule and expenditure authority.

The CSC project has the following project outcomes:

• Recapitalize the capability currently found in Canada’s frigates and recently retired destroyers;
• Acquire associated integrated logistics support;
• Deliver associated infrastructure; and
• Define and award In-Service Support contract(s).

Once the vessels are introduced into service they will be contributing to various Program Inventories under Operations and Ready Forces. The CSC project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Navy:

• Introduces a new fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective; 
• Ensures Maritime Forces Elements are deployable in support of Force Posture and Readiness; and
• Ensures fleet are available as planned to meet training and operational readiness requirements.

The Industrial and Technological Benefits (ITB) Policy of Canada’s Defence Procurement Strategy (DPS) applies to the selection of an existing warship design and design team to design the Canadian Surface Combatant. As such, a DPS value proposition will be a weighted and rated aspect of the evaluation to select the bidder and design that provides the best overall value for Canadians. Canada will receive equivalent to 100% of the contracted value for both the acquisition and the In-Service Support contracts.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISEDC), and its regional development agencies

Irving Shipbuilding Inc., Halifax, Nova Scotia, Canada

N/A

Definition June 2012

Implementation (expected) Early 2020s

Project Approval (Definition Phase 1) June 2012

Revised Project Approval (Definition Phase 1) December 2014

Request for Proposal Release October 2016

Project Approval (Definition Phase 2) June 2017

Contract Award (Definition Phase 2) Early 2019

Project Approval (Implementation) Early 2020s

Implementation Contract - Awarded Early 2020s

First Delivery Mid 2020s

The CSC project is achieving project objectives, notably:

• Government officials announced in January 2015 that Irving Shipbuilding Inc. will be the Prime contractor for the CSC project;  
• Government officials announced the initial procurement strategy on 1 May 2015; 
• Prequalification of bidders was completed in October 2015;
• An initial reconciliation of requirements was completed in October 2015;
• The refined procurement strategy was announced in June 2016; 
• Over the summer of 2016, Canadian Industry and the pre-qualified short listed respondents were engaged on the draft Request for Proposals. Irving Shipbuilding Inc. released the Request for Proposals on 27 October 2016;
• Canada’s Defence Policy, Strong, Secure, Engaged, was released on 7 June 2017, citing the procurement of 15 Canadian Surface Combatants with an updated overall project budget;
• November 30, 2017: Canadian Surface Combatant Request for Proposal closed and initial bids received;
• December 4, 2017: Bid evaluation process commenced; and
• October 19, 2018: A preferred bidder was identified following completion of bid evaluation, and the preferred bidder was invited to participate in the next step of the competitive process, consisting of a negotiations and due diligence period.

Scope: Industry was engaged in early 2016 in a potential refinement of the procurement strategy to competitively select an existing warship to modify rather than to develop a new design. Informed by this engagement, the Government announced the approval of the refined procurement strategy on 13 June 2016. The project remains on track to achieve the scope as approved in May 2016.

Cost: The upcoming Definition Phase 2 will initially focus on further requirements reconciliation and the ship design phases. Completion of the design phases will inform the costing of the project. This activity will be jointly undertaken by project staff, Irving Shipbuilding Inc. and its sub-contractors.

Schedule: Definition Phase 1 activities are underway and Definition Phase 2 is expected to start in early 2019. It is estimated that the project will be in the Definition Phase 2 for approximately three years until the award of the implementation contract. The evaluation of the Request for Proposals (RFP) was previously targeted for completion in spring 2017 as approved in May 2016, but was completed in fall 2018 due to delays in the release of the RFP and extension of the bid period. A preferred bidder was identified following completion of bid evaluation, and the preferred bidder was invited to participate in the next step of the competitive process, consisting of a negotiations and due diligence period. A Prime Definition Contract Award is expected in early 2019 upon successful completion of the competitive process.

Work Plan: In Fiscal Year 2019-20, the CSC project will achieve the following: Completion of Requirements Reconciliation and Preliminary Design.

The combined objective of the CP-140 Aurora Incremental Modernization Project (AIMP) and the Aurora Structural Life Extension Project (ASLEP) is to modernize and extend the life of 14 of Canada’s 18 CP-140 Aurora aircraft in order to maintain the fleet’s operational capabilities until the fleet’s planned retirement date of 2030. This work will provide the capability to conduct Intelligence, Surveillance and Reconnaissance (ISR) in order to detect threats to Canadian security as early as possible.

AIMP was originally an Omnibus Project consisting of 23 sub-projects. As of October 2013, the remaining on-going AIMP projects were consolidated under one project. 

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule and expenditure authority. 

AIMP has the following project outcomes:

• Deliver Block I upgrades, which includes replacement/upgrade of high frequency radio gear, cockpit voice recorder and flight data recorder;
• Deliver Block II upgrades, which includes navigation and communications upgrades;
• Deliver Block III upgrades, which includes mission computer and sensor upgrades; and
• Deliver Block IV upgrades, which will add three new capabilities (Beyond Line of Sight Satcom, Link 16 and self-defence).

ASLEP has the following project outcome:

• Deliver structural upgrade on 14 of the 18 CP-140 Aurora aircraft.

Once the aircraft have been modernized they will be contributing to various Program Inventories under Operations and Ready Forces. The CP-140 Aurora Incremental Modernization/Structural Life Extension Projects will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Air Force:

• Provides modernized aerospace fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective; 
• Ensures Air and Space forces Elements are meeting Force Posture and Readiness requirements remain ready; and
• Ensures fleet are available as planned to meet training and operational readiness requirements. 

The Industrial and Technological Benefits (ITB) Policy of Canada’s Defence Procurement Strategy (DPS) applies to this project. Canada will receive ITBs equivalent to 100% of the contracted value of the General Dynamics Mission Systems - Canada acquisitions contract.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

General Dynamics Mission Systems - Canada – Ottawa, Ontario, Canada

Lockheed Martin Aeronautics – Marietta, Georgia, USA

IMP Aerospace – Halifax, Nova Scotia, Canada

Implementation (AIMP Block IV)June 2015

Closeout (expected) 2022

AIMP:

Block I Full Operational Capability July 2007

Block II Full Operational Capability March 2012

Block III Full Operational Capability April 2019

Block IV Project Approval (Definition) October 2013

Block IV Project Approval (Implementation) June 2015

Contract Award to General Dynamic Mission Systems-Canada October 2015

Block IV Initial Operational Capability June 2020

Block IV Full Operational Capability December 2022

Project Closeout December 2024

ASLEP:

Project Approval (Implementation) May 2008

Initial Operational Capability April 2012

Amended Project Approval (Implementation) October 2013

Full Operational Capability January 2020

Project Closeout March 2020

The AIMP and ASLEP projects have achieved project objectives, notably:

• AIMP:
  • Blocks I and II are complete and have delivered a modernized CP-140 navigation and communication capability to the RCAF;
  • As of 15 November 2018, 12 of 14 aircraft have received updated mission computer and sensors under Block III; and
  • Block IV achieved critical design review in August 2017, prototype aircraft was inducted for modification in November 2017, and proof-of-fit aircraft was inducted in October 2018.
• ASLEP:
  • As of 15 November 2018, 11 of 14 aircraft have received structural life extension.

Scope:  Both projects are on track to deliver their implementation approved scope (AIMP: 2015, ASLEP: 2013), though AIMP Block IV is at risk due to the contractor’s capacity to meet modification schedule for all aircraft for planned Full Operational Capability. The modernized Aurora aircraft has restored Canada’s airborne maritime surveillance capabilities while providing significant enhancements to its overland surveillance capabilities with its world-class integrated mission systems capabilities as demonstrated during domestic and international surveillance missions. 

Cost: ASLEP is on track to deliver within the 2015 approved budget. Increased estimates for modification kits and aircraft modifications, and liability for retroactive contractor rate increases are likely to require all available contingency for AIMP.

Schedule: As a result of delays in engineering and aircraft modification capacity, FOC dates for AIMP and ASLEP have been delayed from the 2015 approved schedule.

Work Plan: In the Fiscal Year 2019-20, the AIMP and ASLEP projects will achieve the following: 

ASLEP:

• Full Operational Capability (delivery of 14 life-extended aircraft) and Project Close-out.

AIMP:

• FOC for Block III (delivery of 14 modified aircraft);
• Completion of Operational Test and Evaluation of Block IV;
• Delivery of two Block IV aircraft; and
• Induction of three aircraft for Block IV modification.

The objective of the Fixed-Wing Search and Rescue Aircraft Replacement (FWSAR) project is to replace the capability provided by the current fixed-wing SAR fleets of CC-115 Buffalo and CC-130H Hercules aircraft by acquiring new, sensor-equipped aircraft with long-term In-Service Support (ISS), to ensure the Canadian Armed Forces continue to provide an acceptable response to SAR incidents anywhere in the Canadian Area of Responsibility (AoR).

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule and expenditure authority. 

The FWSAR project has the following project outcomes:

• Acquire 16 new, sensor-equipped aircraft to replace the SAR fleets of CC-115 Buffalo and CC-130H Hercules;
• Acquire long-term ISS;
• Deliver associated infrastructure; and
• Reduce search times across Canada’s AoR.

Once the aircraft have been introduced into service they will be contributing to various Program Inventories under Operations and Ready Forces. The FWSAR project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Air Force:

• Introduces a new fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective;  
• Ensures Air and Space forces Elements meeting Force Posture and Readiness requirements remain ready; and
• Ensures fleet are available as planned to meet training and operational readiness requirements. 

The primary beneficiary is the Canadian population who require Search and Rescue Services.

The Industrial and Technological Benefits (ITB) Policy of Canada’s Defence Procurement Strategy (DPS) applies to this project. Canada will receive ITBs equivalent to 100% of the contracted value for both the acquisitions and the ISS.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

Airbus Defence and Space S.A. – Madrid, Spain

PAL Aerospace – St. John’s, Newfoundland, Canada

CAE – Montreal, Quebec, Canada

Pratt & Whitney Canada – Longueuil, Quebec, Canada

L-3 WESCAM – Burlington, Ontario, Canada

Implementation December 2016

Project Closeout (expected) 2023

Expenditure Authority – Definition phase March 2012

Project Approval (Definition) March 2015

Project Approval (Implementation) December 2016

Contract Award December 2016

First Aircraft Delivery December 2019

Initial Operational Capability 2020

Final Aircraft Delivery 2022

Full Operational Capability 2022

Effective Project Closeout 2023

The FWSAR project is achieving project objectives, notably:

• The FWSAR project received Project Approval for the Definition Phase in spring 2015;
• The Request for Proposal was released on 31 March 2015;
• The bid evaluation was completed in summer 2016;
• A contract was awarded to Airbus Defence and Space on 1 December 2016;
• Ground breaking for the Comox Training Center occurred in January 2018;
• Assembly of the first CC-295 aircraft began in September 2018; and
• During fiscal year 2018-19 critical design reviews were completed for aircraft, training devices and the in-service support solution.

Scope: The project is on track to deliver the 2016 approved scope.

Cost: The project is currently within the 2016 approved budget.

Schedule: The project is currently on track to deliver the project milestones in accordance with the 2016 approved schedule. The first aircraft is scheduled to be delivered and accepted in Spain in late 2019 and is scheduled to arrive at 19 Wing Comox, British Columbia in June 2020 upon the completion of operational testing.

Work Plan: In the Fiscal Year 2019-20, the FWSAR project will achieve the following: 

• Testing, qualification and certification activities will be conducted on the CC-295 in Spain;
• Initial Cadre Training for RCAF members will be conducted in Spain beginning late summer 2019;
• First CC-295 aircraft will be delivered and accepted in Spain in December 2019;
• Comox Training Center construction will be completed; and
• Initial Operational Test and Evaluation will commence in early 2020.

The objective of the Future Fighter Capability Project (FFCP) is to successfully acquire and transition into service 88 advanced fighter aircraft along with the associated equipment, weapons and sustainment capability that leverages Canadian capabilities and contributes to economic growth and jobs.

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule and expenditure authority. 

The FFCP has the following project outcome:

• Deliver a fighter capability to execute the roles and missions asked by the Government of Canada.

Once the aircraft have been introduced into service they will be contributing to various Program Inventories under Operations and Ready Forces. The FFCP project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Air Force:

• Introduces a new fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective; 
• Ensures Air and Space forces Elements meeting Force Posture and Readiness requirements remain ready; and
• Ensures fleet are available as planned to meet training and operational readiness requirements. 

Canada’s Industrial and Technological Benefits (ITB) Policy applies to the acquisition and sustainment of the permanent replacement fighter fleet. This will require that industry make investments in Canada equal to the value of the acquisition and In-Service Support contracts/agreements. Canada will seek, through negotiations, contractual commitments from industry that align with the Value Proposition strategic objectives.

Canada will continue to engage with stakeholders on advancing ITB for companies in Canada, promoting innovation, ensuring best value and supporting Canada’s defence priorities.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

To be determined (TBD)

TBD

Project Approval (Definition) November 2017

Project Approval (Implementation) 2022

Contract Award 2022

Delivery First Aircraft Mid 2020s

Initial Operational Capability Mid 2020s

Full Operational Capability Early 2030s

Project Closeout Early 2030s

The FFCP is achieving project objectives, notably:

• March to July 2018: Formal engagements with eligible suppliers were conducted in March and April 2018 and again in June and July 2018;
• 23 April to 1 May 2018: Regional Forums were held in select Canadian cities providing an opportunity for Canadian industry and other stakeholders to learn more about the FFCP including potential industrial opportunities;
• May to June 2018: FFCP staff visited suppliers’ facilities to familiarize themselves with operations, support, and infrastructure requirements associated with each supplier’s aircraft;
• 26 October 2018: The draft Request for Proposal (RFP) was released to eligible suppliers for review and feedback; and
• 29 November to 4 December 2018: Eligible suppliers visited Royal Canadian Air Force facilities in Cold Lake and Bagotville to familiarize themselves with Canadian fighter operations and support.

Scope: DND is collaborating with PSPC and ISEDC to replace the fighter fleet, focusing on options that match Canada’s defence needs.

Cost: An acquisition budget of $15B-$19B Canadian was announced as part of Canada’s Defence Policy, Strong, Secure, and Engage. The project’s implementation budget will be informed by ongoing project definition work including engagement with governments and industry, and is contingent on approval as part of the Project Approval process for Implementation.

Schedule: While the schedule remains aggressive, the project has met its important milestones in 2018 and is currently on track to issue solicitation documents in spring 2019.

Work Plan: In the Fiscal Year 2019-20, the FFCP project will achieve the following:

•  Release the final RFP in spring 2019;
•  Receive initial Proposals from eligible suppliers; and
•  Initiate the evaluation of Proposals received.

The objective of the Interim Fighter Capability Project (IFCP) is to acquire 18 surplus Australian F/A-18A/B aircraft, spares and equipment to supplement Canada’s existing CF-18 fleet to address the fighter capability gap.

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule and expenditure authority. 

The IFCP has the following project outcomes:

• Successful acquisition of F/A18-A/B aircraft and integration into the CF-18 fighter fleet; and
• Help address the capability gap by having sufficient operational aircraft to support execution of the roles and missions asked by the Government of Canada.

Once the fleet have been introduced into service they will be contributing to various Program Inventories under Operations and Ready Forces. The FFCP project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Air Force:

• Introduces a new fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective;  
• Ensures Air and Space forces Elements meeting Force Posture and Readiness requirements remain ready; and
• Ensures fleet are available as planned to meet training and operational readiness requirements.

The Industrial and Technological Benefits (ITB) Policy of Canada’s Defence Procurement Strategy (DPS) does not apply to the purchase of military equipment from a foreign government where a prime contractor is not involved. ITBs for the Canadian aerospace sector will be realized through opportunities for Canadian industry to provide additional In-Service Support to the surplus F/A-18A/B aircraft.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

Acquired from the Australian Government through a Government to Government Purchasing Arrangement

CF-18 Prime Air Vehicle (PAV) Optimized Weapons System Management Contractor (L-3 MAS), Avionics (AVS) Optimized Weapons System Management Contractor (Peraton), Propulsion Group System (PGS) Optimized Weapons System Management Contractor (Magellan)

ImplementationNovember 2018

Project Approval (Definition) February 2017

Project Approval (Definition amendment) December 2017

Project Approval (Implementation) November 2018

Purchasing Agreement Signed November 2018

First Aircraft made available to Canada Spring 2019

Introduction to Service Summer 2019

Project Closeout 2023

The IFCP project is achieving project objectives, notably:

• On December 12, 2017, the Government announced that it will pursue the acquisition of Australian F/A-18A/B aircraft, associated spares and equipment to supplement the current CF-18 fleet to address the fighter capability gap; and
• Work tasks for Definition were submitted to L-3 MAS for the integration of Australian F/A-18A/B aircraft into the CF-18 fleet, including the modification of the aircraft to ensure that they are functionally identical to the CF-18 aircraft.

In the Fiscal Year 2018-19, IFCP achieved the following:

• Conducted initial Operational Flight Program software testing on Royal Australian Air Force (RAAF) F/A-18A/B aircraft in Australia;
• Transitioned to the Implementation Project Phase after being granted Project Approval (Implementation), Expenditure Authority and Contract Approval in November 2018;
• Signed Government to Government Purchasing Arrangement with the Australian Government for the purchase of aircraft, spare parts and support equipment; and
• Submitted Letters of Proposal Acceptance to the Australian Government for the acquisition of the aircraft and spares.

Cost: The project is currently within its approved budget.

Schedule: The project is currently on its approved schedule.

Work Plan: For Fiscal Year 2019-20, IFCP shall:

• Take delivery of two Australian F/A-18 aircraft in February 2019 and two subsequent aircraft in December 2019;
• Take delivery of initial spare parts and equipment;
• Coordinate/Conduct the acceptance of the aircraft, modify the aircraft to make them functionally identical to the existing CF-18 fleet, and integrate the aircraft into the current fighter force structure;
• Achieve Technical and Operational Airworthiness Certification in support of a declaration of Initial Operational Capability for the supplemental aircraft based on the first two aircraft meeting Canadian NORAD mission requirements; and
• Establish a Project Management Office (PMO) detachment in Australia to facilitate the acceptance and transportation of acquired aircraft, spare parts and equipment from Australia to Canada.

The objective of the Joint Support Ship (JSS) project is to deliver two new support ships to replace the Royal Canadian Navy’s Auxiliary Oiler Replenishment vessels that have reached the end of their service. The capabilities required of the Joint Support Ships are crucial to the Royal Canadian Navy. These new Protecteur-class ships will enable a Naval Task Group to remain at sea for extended periods of time. These vessels will provide core replenishment capabilities, plus added capacity for limited sealift and limited support to operations ashore.

This project currently contributes to Program Inventory 5.1 Maritime Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Maritime equipment projects remain in approved scope, schedule and expenditure authority. 

The JSS project will deliver two Joint Support Ships.

Once the vessels are introduced into service they will be contributing to various Program Inventories under Operations and Ready Forces. The JSS project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Navy:

• Introduces a new fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective;  
• Ensures Maritime Forces Elements are deployable in support of Force Posture and Readiness; and
• Ensures fleet are available as planned to meet training and operational readiness requirements.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. Canada will receive IRBs equivalent to 100% of the contracted value for the acquisition. In-Service Support of the vessels is managed separately under the AJISS (Arctic and Offshore Patrol Ship and Joint Support Ship) In-Service Support contract which was awarded in 2017.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

Acquisition:
Vancouver Shipyards Co. – North Vancouver, British Columbia, Canada

In-Service Support:
Thales Canada Inc. and Thales Australia Inc. – Ottawa, Ontario, Canada. A single long-term In-Service Support Contract (ISSC) to support the Arctic and Offshore Patrol Ship (AOPS) and Joint Support Ship (JSS) vessels is in place.

Alion Science and Technology (Canada) Corporation – Ottawa, Ontario, Canada

Thales Canada Inc. – Ottawa, Ontario, Canada

Computer Sciences Canada Inc. – Ottawa, Ontario, Canada

Det Norske Veritas - Germanischer Lloyd Canada (DNV-GL) – Montreal, Quebec, Canada

ThyssenKrupp Marine Systems Canada Inc. – Ottawa, Ontario, Canada

VARD Electro – Tennfjord, Norway

VARD Electro Canada Inc. – Vancouver, British Columbia, Canada

Trident Maritime Systems – Crozet, Virginia, USA

L-3 Communications MAPPS Inc. – St. Laurent, Quebec, Canada

Hepburn Engineering Inc. – Toronto, Ontario, Canada (expected under contract in Summer 2018)

MAN Diesel and Turbo, Augsburg, Germany (expected under contract Summer in 2018)

Lockheed Martin Canada, Ottawa, Canada (expected under contract in 2018)

Definition November 2004

Implementation (expected) Fall 2019

Revised Project Approval (Definition) 1 June 2010

Revised Project Approval (Definition) 2 April 2014

Revised Project Approval (Definition) 3 December 2014

Revised Project Approval (Definition) 4 June 2015

Revised Project Approval (Definition) 5 August 2016

Revised Project Approval (Definition) 6 April 2018

Project Approval (Implementation) Fall 2019

Award of Implementation Contract Fall 2019

Delivery of first ship 2022-23

Initial Operational Capability 2023

Full Operational Capability 2024

Project Closeout 2025

The JSS project is achieving project objectives, notably:

• Under the National Shipbuilding Strategy (NSS) announcement on 19 October 2011, SeaSpan’s Vancouver Shipyards Co. Ltd (VSY) is to build the JSS;
• The selection of the Military-off-the-Shelf (Berlin Class) design was announced on 2 June 2013;  
• The permanent design license for the Military-off-the-Shelf design was procured in September 2014; 
• Initial Design Review (IDR) work started on 23 September 2014; 
• SeaSpan’s VSY was awarded the JSS long lead items contract in December 2015. The work of the contract is to select the key equipment suppliers and obtain the necessary vendor furnished information to complete the ship design;
• The Design and Production Engineering (D&PE) Contract was awarded to the shipyard in December 2016 and design work is progressing; 
• A Request for Information (RFI) was published to industry to acquire a raft/pontoon solution to transport materiel from the Joint Support Ship at sea to the shore; the RFI was in support of a Request for Proposal to be released to industry in 2018; 
• The Project Management Office received a shipyard proposal to commence early construction of 52 select JSS “blocks” in 2018, with a goal of filling a gap in shipyard production between lead Canadian Coast Guard vessel projects, and a benefit of helping advance delivery of JSS1 and JSS2 vessels (the proposal was used to achieve Treasury Board approval for Early Block Construction in April 2018);  
• The Project received Revised Project Approval for additional Long Lead Items authorities and for Early Block Construction in April 2018. Also, as part of the approval, the project provided a revised total project estimate of $3.4B. This revised total project estimate remains under review as the design effort finalizes and the Build Contract is being negotiated with the shipyard;
• The Early Block Build Contract was awarded and the JSS construction was started in June 2018; and
• The D&PE contract was amended to authorize the full scope of design work that supports the full production and construction of the JSS.

Scope: The project is on track to deliver its April 2018 Revised Project Approval scope which includes culmination of the D&PE contract, securing the procurement and delivery under the Long Lead Items Contract and the early construction of JSS blocks to mitigate a gap in production between the lead Canadian Coast Guard vessel projects.

Cost: Updated Project Definition authorities were granted in April 2018 and the project is operating within these authorities. “Pre-Implementation” authorities were also granted in April 2018, authorizing the start of construction of JSS blocks which commenced in June 2018. The Definition work will further define the project’s implementation budget.

Schedule: A revised project schedule was established in support of the approvals achieved in April 2018.  With the recent achievement of the start construction of JSS blocks in June 2018, the project is working to achieve first ship delivery in 2022-23, and second ship delivery in 2023-24. The JSS schedule remains highly dependent on the progress of the other National Shipbuilding Strategy projects preceding JSS at the same shipyard.

Work Plan: In Fiscal Year 2019-20, the JSS project will achieve the following: 

• Further progress the JSS design and achieve completion of the JSS Critical Design Review. This review is the second of three intended design reviews before JSS construction is fully enabled;
• Further advancements towards the procurement of long lead items in support of future JSS construction;
• Continued construction of the JSS Early Block to further mitigate the gap in production at the shipyard; and
• Preparing to enable the upcoming project implementation approval through the departmental and governmental processes, which will also include a revised total project estimate that is supported by departmental as well as third party expert reviews.  

The objective of the Light Armoured Vehicle (LAV) III upgrade project is to upgrade a significant portion of the LAV III fleet. The LAV III upgrade project will capitalize on existing and evolving technology to provide a highly protected, yet highly mobile Light Armoured Vehicle capability which will protect the soldiers and equipment of the Canadian Armed Forces in current and future operations.

This project currently contributes to Program Inventory 5.2 Land Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Land equipment projects remain in approved scope, schedule and expenditure authority. 

The LAV III upgrade project has the following project outcomes:

• Deliver 550 LAV III vehicles upgraded in the areas of mobility, protection and lethality. 

Once these vehicles are introduced into service they will be contributing to various Program Inventories under Operations and Ready Forces. The LAV II upgrade project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Canadian Army:

• Provides modernized land fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective;  
• Ensures Land Forces Elements are deployable in support of Force Posture and Readiness; and
• Ensures fleet are available as planned to meet training and operational readiness requirements.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. Canada will receive IRBs equivalent to 100% of the contracted value from General Dynamics Land Systems-Canada for both the acquisitions and In-Service Support.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

General Dynamics Land Systems - Canada – London, Ontario, Canada

N/A

Implementation October 2011

Closeout (expected) 2021

Project Approval (Definition) June 2009

Project Approval (Implementation) October 2011

Contract Award October 2011

First Vehicle Delivery December 2012

Initial Operational Capability June 2014

Revised Project Approval (Implementation) November 2016

Final Vehicle Delivery July 2019

Full Operational Capability Spring 2020

Project Closeout 2021

The LAV III upgrade project has achieved project objectives, notably:

• Initial Operational Capability (IOC) occurred in June 2014;
• As of 1 July 2016, the Commander of the Canadian Army accepted the upgraded LAV III as the Canadian Army deployable LAV fleet. Exercise "Maple Resolve 16", held in Wainwright in May 2016 successfully tested more than 110 upgraded LAV III; and
• A total of 503 of 550 vehicles have been delivered as of 15 November 2018.

Scope: In November 2016, the project received the additional authority to deliver the full upgrade to the 141 LAV III Operational Requirements Integration Task vehicles which were originally only to receive a partial upgrade under the scope of the project approved in October 2011.

Cost: The project is within the budget established in November 2016 as part of the amended scope approval.

Schedule: The project remains on schedule as established in November 2016 as part of the amended scope approval.

Work Plan: In the Fiscal Year 2019-20, the LAV III Upgrade project will achieve the following: 

• The delivery of the last vehicle to be upgraded as part of this project, currently scheduled for July 2019; and
• Following the last vehicle delivery, the project office will focus on achieving the activities leading to the declaration of Full Operational Capability and Project Closeout.

The objective of the Medium Support Vehicle System (MSVS) project is to acquire a new medium-weight truck capability that will replace the Medium Logistic Vehicle Wheeled (MLVW) fleet. The acquisition will provide the capability to transport troops, cargo, and equipment and to perform unit level and combat services support functions. The MSVS project will replace the 36 year old MLVW. The capability provided by the MLVW is no longer supportable nor effective.

This project contributes to Program Inventory 5.2 Land Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Land equipment projects remain in approved scope, schedule and expenditure authority.

The MSVS project has the following project outcomes, divided in phases:

• Phase 1
  • Acquire 1,300 Militarized Commercial-Off-The-Shelf (MilCOTS) trucks.
• Phase 2
  • Acquire 994 Specially Equipped Vehicle (SEV) baseline shelters (26 are funded by the Medium-to-Heavy Lift Helicopters (MHLH) project and seven by the Land Forces Intelligence, Surveillance, Target Acquisition and Reconnaissance (LFISTAR) project, Family of Unmanned Aerial Vehicles (FUAV)s sub-project (LF ISTAR FUAV).
• Phase 3
  • Modify 846 baseline shelters (also referred to as “Shelter Kitting”).
• Phase 4
  • Acquire 1,500 Standard Military Pattern (SMP) Trucks in five variants: Cargo; Cargo with Material Handling Crane; Load Handling System; Mobile Repair Team; and Gun Tractor. Plus 37 funded by the Lightweight Towed Howitzer (LWTH) project, 36 trucks funded by the MHLH project, and 14 trucks funded by the Air Force Expeditionary Capability (AFEC) Project;
  • Acquire 150 integrated Armour Protection Systems. Plus seven funded by LWTH, and four funded by MHLH;
  • Acquire 300 Load Handling System trailers. Plus 14 funded by MHLH, and four funded by Air Force Expeditionary Capability; and
  • Acquire In-Service Support.
• Phase 5
  • Deliver associated Infrastructure.

Once the fleet are introduced into service, they will be contributing to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically to the Canadian Army:

• Ensures Land Forces Elements are deployable in support of Force Posture and Readiness;
• Ensures fleet available as planned to meet training and operational readiness requirements; and
• Contributes towards ensuring operations in Canada, North America and internationally are effective.

Canada’s Industrial and Regional Benefits (IRB) applies to Phase 1, Phase 2 and Phase 4 of this project. Canada will receive IRBs equivalent to 100% of the contracted value for both the acquisitions and In-Service Support. The IRB Policy did not apply to Phase 3, the “Shelter Kitting” contract as the procurement was subject to international trade agreements.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

Navistar Defence LLC, Warrenville, Illinois, USA

Baseline Shelters:

DEW Engineering and Development ULC, Ottawa, Ontario, Canada

Kitting:

DEW Engineering and Development ULC, Ottawa, Ontario, Canada

SMP:

Mack Defence LLC, Allentown, Pennsylvania, USA

N/A

Implementation May 2015

Closeout (expected) 2020

Project Approval (Definition) June 2006

MilCOTS – Revised Project Approval (Definition) December 2008

MilCOTS – Contract Award January 2009

MilCOTS – First Delivery June 2009

MilCOTS – Delivery Complete March 2011

Baseline Shelter – Revised Project Approval (Definition) June 2009

Baseline Shelter – Contract Award July 2009

Baseline Shelter – First Delivery May 2012

Baseline Shelter – Delivery Complete February 2015

Kitting – Revised Project Approval (Definition) November 2012

Kitting – Contract Award December 2012

Kitting – First Delivery January 2014

Kitting – Delivery Complete November 2016

Project Approval (Implementation) May 2015

SMP – Contract Award (Acquisition and In-Service Support) June 2015

SMP – First Delivery April 2018

Delivery Complete Spring 2020

Infrastructure – Project Approval Implementation May 2015

Project Closeout 2020

The MSVS project is achieving project objectives, notably:

• Phase 1 – The MilCOTS trucks are in-service;
• Phase 2 – The last delivery of the Baseline Shelters was completed in February 2015;
• Phase 3 – Shelter Kitting delivery was completed in November 2016;  
• Phase 4 – SMP trucks, trailers and Armoured Protected Systems:
  • SMP trucks, trailers, and armoured protection systems deliveries commenced in Fiscal Year 2018-19.  
• Phase 5 – Infrastructure work is in progress.

Scope: The project is on track to deliver its 2015 approved scope for Phase 4 and Phase 5.

Cost: The project is currently within the 2015 approved budget.

Schedule: Following the resolution of technical issues affecting production, truck deliveries are improving and are expected to reach steady-state delivery throughput in early 2019. The trailers are being delivered as scheduled, and armored protective system delivery is expected to complete spring 2020.

Work Plan: In the Fiscal Year 2019-20, the MSVS project will achieve the following:

• Continue delivering trucks, trailers, armored protective systems, and support products; and
• Expect to achieve Initial Operating Capability by summer 2019.

The objective of the Mercury Global (MG) project is to acquire assured access to global wideband satellite communications (SATCOM) capabilities (between 70º North to 70º South), which will provide the Canadian Armed Forces (CAF) with secure, reliable and high availability Beyond Line of Sight communications, enabling SATCOM connectivity for command and control of domestic and international operations.

This project contributes to Program Inventory 5.4 Defence Information Technology Systems Acquisition, Design and Delivery of the Departmental Results Framework, its outcome is to ensure Information Technology capabilities address a capability gap or deficiency.

The MG project has the following project outcomes:

• Phase 1  
  • Acquire access to the Wideband Global SATCOM (WGS) satellite constellation via a Memorandum of Understanding (MOU) with the United States Department of Defence (DoD) and other international partners (Denmark, the Netherlands, Luxembourg, and New Zealand). The MOU is the vehicle used to fund the construction and launch of the ninth WGS satellite and, thereby, provide access to the US DoD WGS constellation to the Department of National Defence and other international partners to at least the year 2031; and
  • Acquire early access terminals.
• Phase 2
  • Design, build and support seven permanent antennas at three sites across Canada.
• Phase 3
  • Acquire deployable terminals for strategic use to operate specifically with the WGS constellation.

Once this new system is in place, it will be contributing to various Program Inventories under Operations, and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces:

• Ensures fleet available as planned to meet training and operational readiness requirements; and
• Ensures Operations in Canada, North America and internationally are effective. 

Canada’s Industrial and Regional Benefits (IRB) Policy applies to the first two phases of this project. In Phase 1, Canada will receive IRBs equivalent to 100% of the contracted value on a separate agreement between Boeing and Public Services and Procurement Canada (PSPC) for the ninth WGS space vehicle (satellite). In Phase 2, Canada will receive IRBs equivalent to 100% of the contracted value for both the acquisition and the In-Service Support.

In Phase 3, Canada will receive ITBs equivalent to 100% of the contracted value for both the capital acquisition and the In-Service Support as part of the Defense Procurement Strategy (DPS).

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

Space segment:
United States Department of Defense via a Memorandum of Understanding

Anchor Segment:
General Dynamics Mission Systems – Canada; Ottawa, Ontario, Canada

Strategic Deployment Terminals:
General Dynamics Mission Systems – Canada; Ottawa, Ontario, Canada

Early Access Terminals:
Telesat Canada – Ottawa, Ontario, Canada

Satellite Manufacturer – Boeing, St. Louis, Missouri, USA

Implementation October 2014

Closeout (expected) December 2020

Project Approval (Definition) October 2011

Initial Operational Capability May 2013

Project Approval (Implementation) October 2014

Project Approval (Terminal Segment Implementation) January 2018

Anchor Segment Acceptance June 2019

Terminal Implementation Complete August 2020

Full Operational Capability November 2020

Project Closeout December 2020

The MG project has achieved project objectives, notably:

• Phase 1 – Definition
  • Preliminary Project Approval was attained in October 2011; and
  • The WGS SATCOM MOU was signed in January 2012. 
• Phase 2 – Implementation
  • Expenditure and Contract Authority for Phase 2 was achieved in October 2014;
  • General Dynamics Mission Systems - Canada was awarded contracts for both the installation of the anchor stations and In-Service Support of the system for a period of seven (7) years, with options for support up to an additional ten (10) years; and
  • Construction, installation and integration at all 3 MG Anchor Segment sites are substantially complete. WGS certification was completed in August 2018. Acceptance testing is well underway with completion expected March 2019.
• Phase 3 – Implementation
  • A request for proposal for 67 Strategic Deployable Terminals (SDTs) closed on 31 January 2017;
  • Treasury Board (TB) approval for Expenditure Authority was achieved 10 January 2018; 
  • Contract Award for the Terminal segment, i.e. 67 SDTs, took place 22 February 2018;
  • Factory Acceptance Testing and System Acceptance Testing were completed in September 2018 and November 2018 respectively;
  • Delivery of medium and heavy SDTs is expected to commence in December 2018; and
  • Light SDTs require full certification and delivery is therefore expected to move into 2020. 
• MG project has directly supported Operation IMPACT, Operation UNIFIER, Operation CARIBBE, Operation NANOOK, Operation REASSURANCE, and Operation RENNAISSANCE 15-1.

Scope: The project is on track to deliver the 2014 and 2018 TB approved scope. In addition, WGS satellites eight (8) and nine (9) have completed the Wideband Digital Channelizer upgrade, which will almost double their current bandwidth. This satellite modification was undertaken by the U.S. DoD; International Partners will not share the cost, in part or in total, for this upgrade. These satellites have been launched and are currently operational.

Cost: The project is currently within the 2014 and 2018 TB approved budgets. 

Schedule: The project has experienced a delay against the 2014 approved schedule. The schedule has been re-baselined in the approved 2018 TB submission. Delivery of the light SDTs has been extended out to 2020 (due to certification requirements).  This revision to schedule was presented to, and endorsed by, the MG Senior Review Board on 12 October 2018.

Work Plan: In the Fiscal Year (FY) 2019-20, the project will build on the success of the anchor segment certification and the initiation of the SDT phase that occurred during FY 2018-19 and will achieve the following:  

• Complete the Anchor Segment, which will become operationally ready;
• Transition the Anchor Segment to In-service Support;
• Acquire all Medium (17) and Heavy (5) SDTs; and
• Complete Phase 1 and Phase 2 Light SDT certification (with Phase 3, the last phase, being well-underway).

The Protected Military Satellite Communications (PMSC) project utilizes the United States (US) Department of Defense (DoD) Advanced Extremely High Frequency (AEHF) Military Satellite Communications (MILSATCOM) System to deliver worldwide (65ºN - 65ºS), assured, protected, secure, survivable, jam-resistant beyond long of sight communications between the national command authority and deployed forces in support of Canadian Armed Forces (CAF) missions. The PMSC project is providing the CAF with a protected, global MILSATCOM capability as well as interoperability with some of our principal allies; the United States, United Kingdom, and the Netherlands. The project includes MILSATCOM terminals for deployed land, sea and air forces.

This project contributes Program Inventory 5.4 Defence Information Technology Systems Acquisition, Design and Delivery of the Departmental Results Framework, its outcome is to ensure Information Technology capabilities address a capability gap or deficiency.

The PMSC project has the following project outcomes:

• Phase 1 – Definition (Complete)
  • Procure access to the US DoD AEHF Military Satellite Communications System via a Memorandum of Understanding (MOU); signed in November 1999.
• Phase 2 – Implementation
  • Acquire AEHF satellite terminals in multiple variants: ground stations, naval, land transportable, and deployable;
  • Install AEHF (advanced extremely high frequency) satellite terminals, where necessary; and
  • Deliver associated Infrastructure.

Once this new system is in place, it will contribute to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces:

• Ensures fleet available as planned to meet training and operational readiness requirements; and
• Ensures Operations in Canada, North America and internationally are effective.

The US DoD committed to a work share with Canadian Industry under the completed Phase 1 portion. Canada’s Industrial and Benefits (IRB) Policy was applied to Phase 2 of this project and an IRB agreement was negotiated with Raytheon. Innovation, Science and Economic Development Canada will seek IRBs equivalent to 100% of the contracted value for both the acquisitions and the In-Service Support.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

United States Department of Defense via Foreign Military Sales (FMS)

Raytheon – Waltham, Massachusetts, USA

Implementation November 2003

Closeout (Expected) September 2026

Project Approval (Definition) August 1999

Project Approval (Implementation) November 2003

First Terminal Delivery November 2011

Initial Operational Capability November 2013

Final Terminal Delivery January 2022

PMSC System Full Operational Capability June 2026

Project Closeout September 2026

The PMSC project has achieved project objectives, notably:

• Phase 1 – Definition (Complete)
  • Preliminary Project Approval was provided in August 1999; and
  • System access was procured via a Military Satellite Communications MOU with the US DoD for development and fielding, signed in November 1999.
• Phase 2 – Implementation
  • Project Approval (Implementation) was received in November 2003;
  • An Operations and Sustainment MOU with the US DoD for continued access to 2024 was signed in November 2009;
  • FMS cases were established starting in March 2006 for procurements of terminal equipment; and
  • The PMSC Initial Operational Capability was achieved 12 November 2013.

Scope: The project is on track to deliver the 2003 approved scope.

Cost: The project is currently within the 2003 approved budget. Risk mitigation strategies have been identified to minimize future costs due to installations that exceeded budgeted estimates. These strategies  included, awarding installation activities to the supplier with the lowest overall cost structure, and the feasibility of proceeding with firm-fixed price contracts was explored and implemented. 

Schedule: Installation of the PMSC system on Halifax-class frigates is complete with the 12th ship completed in March 2018.  

Due to slippages in the US DoD overall satellite launch schedule and Victoria Class Submarine (VCS) installations, the PMSC System Full Operational Capability, has moved to June 2026 from the original (2003 approved) expected date of November 2017.

Work Plan: In the Fiscal Year 2019-20, the PMSC project will achieve the following:  

Project scope is largely delivered and transitioned to the responsible in-service organization. The PMO will continue to work to progress implementation on VCS. 

The objective of the Tactical Armoured Patrol Vehicle (TAPV) project is to procure a modern fleet of tactical vehicles for use in domestic and expeditionary operations that are highly mobile and provide a very high degree of protection. Replaces part of the Coyote fleet and complements the G-Wagon fleet.

This project contributes to Program Inventory 5.2 Land Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Land equipment projects remain in approved scope, schedule and expenditure authority. 

The TAPV project has the following project outcomes:

• Procurement and delivery of essential Integrated Logistics Support (ILS) to sustain the fleet for the first two years;
• An initial purchase of 500 TAPV with an option for 100 more;
• Acquisition of an operational stock and two years of training stocks of ammunition;
• Construction of required infrastructure at bases; and
• Implementation of a long-term (25-year) through life In-Service Support Contract to be funded through Army National Procurement funds.

Once this modern fleet has been acquired, it will contribute to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically to the Canadian Army:

• Ensures Land Forces Elements are deployable in support of Force Posture and Readiness; 
• Ensures fleet available as planned to meet training and operational readiness requirements; and
• Ensures operations in Canada, North America and internationally are effective.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to the acquisition and support contracts, with requirements for IRB equal to 100% of the contract value.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies

Textron Systems Canada Incorporated – Ottawa, Ontario, Canada

Textron Marine and Land Systems – Louisiana, USA

Kongsberg Protech Systems Canada – London, Ontario, Canada

Rheinmetall Canada – Ottawa, Ontario, Canada

Engineering Office Deisenroth Canada – Ottawa, Ontario, Canada

Implementation June 2012

Closeout (expected) 2020

Project Approval (Definition) June 2009

Project Approval (Implementation) June 2012

Contracts awarded June 2012

First Vehicle Delivery August 2016

Initial Operational Capability August 2017

Final Vehicle Delivery December 2018

Full Operational Capability Fall 2018

Effective Project Completion Fall 2018

Project Closeout 2020

The TAPV project has achieved project objectives, notably:

• As of 20 November 2018, 490 of 500 vehicles were delivered;
• Initial Operational Capability achieved in August 2017; and
• In May 2017, TAPVs were effectively used to respond to flooding in Quebec as part of Operation LENTUS.

Scope: The project is on track to deliver the 2012 approved scope.

Cost: The project is within its 2012 approved budget.  

Schedule: In August 2014, a first round of testing identified design challenges associated with reliability. The project returned to the contract design phase in order to allow the complex, inter-related designs for the vehicle’s structure, suspension and steering to be improved. A second round of reliability testing was successful, and qualification activities were completed by June 2016.

The project has experienced a delay against the 2012 approved schedule, primarily as a result of the need to return to the design phase following identification of the design challenges and as a result of production and quality issues. 

In Fiscal Year 2018-19, the final vehicle delivery is expected to occur together with the transition of the fleet to in-service.

In Fiscal Year (FY) 2018-19, the final vehicle delivery is expected to occur together with the transition of the fleet to in-service.

Work Plan: In the FY 2019-20, the TAPV project will achieve the following:

• Full Operational Capability and Effective Project Closure;
• Ongoing deliveries of equipment in support of the vehicle (e.g. machine guns, tow bars and camouflage nets); and
• Finalization of infrastructure in Canadian Forces Base Valcartier.