Status report on Transformational and Major Crown Projects

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

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 outcomes:

  • Acquire six Arctic and Offshore Patrol Ships for the Royal Canadian Navy;
  • Deliver associated jetty infrastructures in Halifax;
  • Contribute funding to associated jetty infrastructure project in Esquimalt;
  • Deliver a berthing and fuelling facility at Nanisivik, Nunavut;
  • Acquire associated Integrated Logistics Support products; and
  • Provide project management support for the acquisition of two Arctic and Offshore Patrol Ship variants for the Canadian Coast Guard (CCG), to be funded by separate CCG expenditure authorities.

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 RCN:

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

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 AJISS (Arctic and Offshore Patrol Ships and Joint Support Ship In-Service Support) Contract which was awarded in 2017.

Sponsoring department

Department of National Defence (DND) for AOPS 1-6

Department of Fisheries and Oceans (DFO), Canadian Coast Guard (CCG) for AOPS 7-8

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Department of Fisheries and Oceans (DFO), for the acquisition of two AOPS variants for the Canadian Coast Guard using the DND Build Contract.

Prime contractor

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 to support the AOPS and Joint Support Ship (JSS) vessels is in place.

Major subcontractors
  • 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
Project phase
Implementation December 2014
Closeout (expected) 2026
Major milestones
Preliminary Project Approval May 2007
Design Engineering Logistics Maintenance and Support Contract Awarded May 2008
Revised Project Approval (Definition) I October 2011
Ancillary Contract Awarded June 2012
Revised Project Approval (Definition) II December 2012
Definition Contract Awarded March 2013
Project Approval (Implementation) December 2014
Award of Implementation Contract January 2015
Revised Project Approval (Implementation) November 2018
Delivery of First Ship July 2020
Initial Operational Capability 2022
Full Operational Capability 2026
Project Closeout 2026
Progress report and explanation of variances

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, 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;
  • In September 2018, HMCS Harry DeWolf was launched at Halifax Shipyard in Nova Scotia;
  • HMCS Harry DeWolf was named at an official naming ceremony by Mme. Sophie Grégoire Trudeau at the Halifax shipyard in October 2018;
  • With the official cutting of steel, the fourth ship in the class, the future HMCS William Hall, entered full production in June 2019;
  • HMCS Harry DeWolf was delivered to the Royal Canadian Navy in July 2020;
  • The jetty infrastructure project in Halifax was completed in July 2019 and is ready to berth the AOPS and other ships of the fleet;
  • With the official cutting of steel, the fifth ship in the class, the future HMCS Frédérick Rolette, entered full production in May 2021;
  • HMCS Margaret Brooke was delivered to the Royal Canadian Navy in July 2021; and
  • The jetty infrastructure project in Esquimalt is progressing and is on track to be in place when required.

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. As announced by the government in May 2019, DND will also provide support to the AOPS variant project for the acquisition of two additional ships for the Canadian Coast Guard.

Cost: In November 2018, the Government of Canada approved the increased budget to build a sixth AOPS and to extend the production schedule. An assessment is ongoing to confirm cost and schedule impacts resulting from the COVID-19 pandemic.

Schedule: In November 2018, the Government of Canada approved the extension of the production schedule by 18 months, thereby mitigating part of the production gap between the AOPS and Canadian Surface Combatant construction. An assessment is ongoing to confirm cost and schedule impacts resulting from the COVID-19 pandemic.

Work Plan: The COVID-19 pandemic and associated restrictions have impacted the project’s schedule, primarily due to effects on production efficiency. Despite this, the AOPS Project will achieve the following in FY 2022-23:

  • Delivery of the third ship, HMCS Max Bernays is targeted for mid-2022, with a risk-adjusted Summer 2022 delivery anticipated;
  • Launch of the fourth ship, HMCS William Hall is targeted for mid-2022;
  • Full scale production of the sixth ship, HMCS Robert Hampton Gray is scheduled to commence in mid-2022; and
  • Despite pandemic-related disruptions to the summer 2020 and summer 2021 construction seasons of the Nanisivik Naval Facility, the facility is scheduled to be operational in Summer 2022.
Project name Armoured Combat Support Vehicle Project
Description The Armoured Combat Support Vehicle (ACSV) Project will deliver an armoured combat support capability to provide Command Support, Combat Support and Combat Service Support to the forward elements of a Brigade Group. These capabilities include, but are not limited to, command vehicles, ambulances, and mobile repair teams.
Project outcomes

This project currently contributes to Program Inventory 5.2 Land Equipment Acquisition of the Departmental Results Framework. Its outcome is to deliver the ACSV while remaining within approved scope, schedule and expenditure authority.

The ACSV Project will procure 360 Armoured Combat Support Vehicles.

Once complete, the project will contribute to Program Inventories under Operations and Ready Forces. The ACSV project will deliver the following capabilities and outcomes to the Canadian Armed Forces, specifically the Canadian Army:

  • Provide a modernized, armoured combat support fleet which will contribute towards ensuring effective operations within Canada, North America, and internationally;  
  • Ensure Land Forces Elements are deployable in support of Force Posture and Readiness; and
  • Ensure fleet is available as planned to meet training and operational readiness requirements.
Industrial benefits The Industrial and Technological Benefits (ITB) Policy was applied to the ACSV Implementation Contract. Total ITB obligation is $1,775M.
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED), and its regional development agencies
Prime contractor General Dynamics Land Systems - Canada – London, Ontario, Canada
Major subcontractors
  • Kongsberg Defence and Aerospace - Protech Systems – Kongsberg, Norway
  • Plasan Sasa Ltd – Sasa, Israel
  • SED Systems – Saskatoon, Saskatchewan, Canada
  • The Will-Burt Company – Orrville, Ohio, USA
  • KVH Industries, Inc. – Middletown, Rhode Island, USA
  • Terminal Cable Inc. – Carignan, Quebec, Canada
  • Abuma Manufacturing Ltd – London, Ontario, Canada
  • Thales Canada – North York, Ontario, Canada
  • General Kinetics – Brampton, Ontario, Canada
  • Analytic Systems Inc. – Brampton, Ontario, Canada
  • IMP Group Ltd. – Halifax, Nova Scotia, Canada
Project phase
Implementation August 2019
Major milestones
Project Approval (Implementation) August 2019
Contract Award September 2019
First Production Vehicle Acceptance December 2020
First Delivery of Type II Variants 2022
Initial Operational Capability 2023
First Delivery of Type III Variants 2024
Full Operational Capability 2024
Final Delivery 2024-25
Effective Project Closeout 2025
Progress report and explanation of variances

The ACSV is achieving project objectives, notably:

  • Production started in May 2020;
  • Critical Design approval for the Ambulance variant achieved;
  • The first ACSV, a Troop Cargo Vehicle variant, was produced by General Dynamics Land Systems Canada in December 2020; and
  • The first Ambulance variant produced by General Dynamics Land Systems Canada in July 2021.

Scope: The project is on track to deliver its 2019 approved scope.

Cost: The project is within the 2019 approved budget.

Schedule: Qualification testing of Troop Cargo Vehicle will continue through the end of the Fiscal Year (FY) 2021-22. The project is currently on schedule to complete Final Design Work for Type II variants in 2022.

Work Plan: In FY 2022-23, the project will achieve the following:

  • Vehicle delivery to the Canadian Army to begin in late FY 2022-23;
  • Qualification testing of the Command Post variant to start in FY 2022-23; and
  • Critical Design approval for the Electronic Warfare variant is anticipated in FY 2022-23.
Project name Aurora Incremental Modernization / Structural Life Extension Projects
Description

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 Canada’s 14 CP-140 Aurora aircraft in order to maintain the fleet’s operational capabilities until the fleet’s current planned retirement date of 2030 (a study is currently underway to assess life extension to 2040). This work will provide the capability to conduct Intelligence, Surveillance and Reconnaissance (ISR) and Anti-Submarine Warfare (ASW) in order to detect threats to Canadian security as early as possible.

Project outcomes

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 CP-140 Aurora aircraft.

Once the fleet have been introduced into service 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 (RCAF):

  • Provides modernized aerospace 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 is available as planned to meet training and operational readiness requirements. 
Industrial benefits 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.
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor (for Block IV)
  • General Dynamics Mission Systems - Canada – Ottawa, Ontario, Canada
  • IMP Aerospace – Halifax, Nova Scotia, Canada
Major subcontractors CAE - Montreal, Quebec, Canada
Project phase
AIMP Block IV (Implementation) June 2015
Closeout (expected) 2024
ASLEP (Implementation) May 2008
Closeout (expected) 2021
Major milestones

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 (IOC) April 2022
Block IV Full Operational Capability (FOC) March 2024
Project Closeout Winter 2024

ASLEP:

Project Approval (Implementation) May 2008
Initial Operational Capability April 2012
Amended Project Approval (Implementation) October 2013
Full Operational Capability April 2020
Project Closeout December 2021
Progress report and explanation of variances

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

  • AIMP:
    • Blocks I, II and III are complete and have delivered a modernized CP-140 ISR and ASW capability to the RCAF; and
    • Block IV is unfolding, with aircraft modifications work underway at IMP Aerospace until 2024.
  • ASLEP:
    • All 14 aircrafts have received structural life extension; and
    • The project is in Closeout phase.

Scope: ASLEP has delivered its full approved scope. The AIMP Block IV is facing challenges to complete the scope. The Department is assessing options to address the pending issues.

Cost: ASLEP is on track to deliver within the 2015 approved budget. The Department is assessing options to address a forecasted shortfall in the budget to complete AIMP.

Schedule: As a result of delays in engineering, various technical issues and materialized risks, AIMP Block IV IOC and FOC dates have been delayed from the 2015 approved schedule.

Work Plan: In FY 2022-23, the AIMP project will achieve the following:

  • Initial Operational Capability (IOC); and
  • Installation of the Block IV design completed at 75% of the 14 CP-140 aircraft.
Project name Canadian Cryptographic Modernization Program
Description

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.

Project outcomes

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 networks from electronic warfare and cyber-attack, and exploit vulnerabilities of an adversary through cyberspace.
Industrial benefits N/A
Sponsoring department Communications Security Establishment (CSE)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Departments and agencies of the Government of Canada using cryptographic equipment to protect classified information
Prime contractor N/A
Major subcontractors Various allied manufacturers of cryptographic equipment
Project phase
Closeout of the first implemented CCMP sub-project September 2009
Closeout of the CCMP Omnibus project March 2026
Major milestones Project Approval:
CCMP Omnibus Project Approval March 2005
Amended CCMP Omnibus Project Approval February 2017
Amended CCMP Omnibus Project Approval November 2017
Amended CCMP Omnibus Project Approval May 2021
CSMI Project Approval November 2006
Amended CSMI Project Approval November 2017
Amended CSMI Project Approval May 2021

CCMP Sub-project Dates:

Secure Voice / Telephone Family (Implementation) November 2004
Secure Voice / Telephone Family (Completion) December 2011
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) September 2018
CSMI – Phase 1B (Definition) November 2006
CSMI – Phase 1B (Implementation) February 2008
CSMI – Phase 1B (Completion) March 2012
CSMI – Phase 2 (Definition) February 2008
Amended CSMI – Phase 2 (Definition) June 2011
CSMI – Phase 2 Definition (Completion) March 2013
CSMI – Phase 2A (Implementation) November 2012
CSMI – Phase 2A (Completion) March 2019
CSMI – Phase 2B (Implementation) November 2017
Amended CSMI – Phase 2B (Implementation) May 2021
CSMI – Phase 2B (Completion) December 2025
CSMI – Phase 3 (Cancelled) capability will be delivered under CSMI Phase 2B
Link Encryption Project (DND) (Implementation) November 2006
Link Encryption Project (DND) (Completion) March 2013
Network Encryption Project (DND) – (Implementation) June 2011
Amended Network Encryption Project (DND) (Implementation) February 2017
Network Encryption Project (DND) – (Completion) June 2020
Link Encryption Family (Completion) June 2020
Combat Identification (IFF Mode 5) – (Definition) November 2011
Combat Identification (IFF Mode 5) – (Implementation) March 2014
Combat Identification (IFF Mode 5) – (Completion) August 2020
CNRE (Definition) August 2011
CNRE (Implementation) January 2013
CNRE (Completion) March 2022
Secure Radio Project (Implementation) February 2017
Secure Radio Project (DND) – (Completion) June 2026
Secure Mobile Environment (Cancelled)     N/A
Progress report and explanation of variances

The CCMP Omnibus project is achieving project objectives, notably:

  • The Secure Voice / Telephone Re-key Infrastructure sub-project was completed in September 2009:  under budget, within scope, schedule extended. *
  • The CSMI Phase 1B sub-project was completed in March 2012:  under budget, within scope, schedule extended. *
  • The Secure Voice / Telephone Family sub-project was completed in December 2011:  under budget, within scope, schedule extended.
  • The DND Link Encryption Project was completed in March 2013:  under budget, within scope, schedule extended.
  • The CSMI Phase 1A sub-project was completed in September 2018, under budget, within scope, schedule extended. *
  • The CSMI Phase 2A sub-project was completed in March 2019 under budget, within scope, schedule extended. *
  • The Network Encryption Family sub-project was completed in June 2020, under budget, within scope, schedule extended.
  • Combat Identification (IFF Mode 5) sub-project was completed in August 2020, under budget, within scope, schedule extended.

* Note that surplus budgets were rolled into subsequent phases of the project.

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

Schedule: The schedule is dependent on the United States (U.S.) Cryptographic Modernization Initiative and the Key Management Infrastructure Program. Canada’s collaboration with the United States of America allows Canada to leverage U.S. research and development and maintain interoperability with its Allies. Completion dates for the sub-projects are regularly reviewed for alignment with the U.S. initiative/program.

The CCMP Omnibus Project that was originally expected to end in 2016 has been extended to FY 2025-26, pending approval, due to increased complexity, delays in the CSMI Project that relies on the US Key Management Infrastructure Program, and delays in U.S. development of solutions and implementation into weapon platforms such as ships, submarines and aircraft.

Work Plan: In the FY 2022-23, the CCMP Omnibus Project will achieve the following:

Three CCMP Omnibus Project sub-projects remain active.

CSE CSMI Phase 2B – In May 2021, Treasury Board approved the amended CSMI Phase 2B submission that outlined a revised way forward for CSMI.  Since the early 2000s, CSE has been part of a government-wide effort to develop, deploy and update devices and supporting infrastructure that allow the Government of Canada to protect classified information and communications. The Classified Security Management Infrastructure project is part of this broader initiative and aims to replace the core IT infrastructure that supports those devices.
Expected completion date of CSMI Phase 2B is December 2025.
Expected completion date of the CCMP Omnibus Project is March 2026.

DND Secure Radio – Completed the delivery and fielding of selected backpack and handheld secure radios and received initial quantities of required end cryptographic units to start engineering, integration, and testing with legacy communication systems. First installation of end cryptographic units completed during summer 2021. In addition, received initial quantities of ARC-210 Gen 6 Radios for the Aircraft Fleets’ radio modernization to start engineering and integration work.

Expected completion date of DND’s Secure Radio sub-project is June 2026.

DND CNRE – Full rate production is proceeding on schedule.
Project Close-out was extended to March 2022 to complete delivery of cables and Satellites on the Move.

Project name Canadian Surface Combatant Project
Description 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.
Project outcomes

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 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 fleets are available as planned to meet training and operational readiness requirements.
Industrial benefits The Industrial and Technological Benefits (ITB) Policy of Canada’s Defence Procurement Strategy (DPS) applied to the evaluation and selection of an existing warship design and design team to design the Canadian Surface Combatant. Canada will receive equivalent to 100% of the contracted value for both the acquisition and the In-Service Support contracts.
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED), and its regional development agencies
Prime contractor Irving Shipbuilding Inc., Halifax, Nova Scotia, Canada
Major subcontractors
  • Lockheed Martin Canada (Design Team Lead and Combat Systems Integrator)
  • BAE Systems (Warship Designer)
Project phase
Definition June 2012
Implementation (expected) 2023
Major milestones
Project Approval (Definition Phase 1) June 2012
Revised Project Approval (Definition Phase 1) December 2014
Request for Proposal Release October 2016
Revised Project Approval (Definition Phase 2) June 2017
Contract Award (Definition Phase 2) February 2019
Revised Project Approval (Definition Phase 2) May 2019
Revised Project Approval (Definition Phase 2) March 2021
Project Approval (Implementation) 2023
Implementation Contract Award 2023
Cut Steel Ship 1 2023-24
First Delivery 2030-2033
Progress report and explanation of variances

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 (RFP). Irving Shipbuilding Inc. released the RFP 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: CSC RFP closed and initial bids received;
  • December 4, 2017: Bid evaluation process commenced;
  • October 16, 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;
  • February 7, 2019: Lockheed Martin Canada was identified as the Selected Bidder to provide the design and design team for the CSC, with a design based on the United Kingdom’s Type 26. Canada awarded a Definition Contract to Irving Shipbuilding Inc., who in turn awarded a Definition Subcontract to Lockheed Martin Canada;
  • November 5, 2019: The project substantially completed the Requirements Reconciliation Phase and commenced Preliminary Design;
  • Preliminary Design Review is scheduled to begin in December 2021, and is forecasted to complete in mid-2022; and
  • October 7, 2021: A contract was awarded to Poole Construction Company Limited (PCL) for the Design and Build of a Land-Based Test Facility to be built at Hartlen Point in Nova Scotia.

Scope: Industry was engaged in early 2016 on a potential refinement to the procurement strategy to competitively select an existing warship to modify rather than to develop a new design. Informed by this engagement, 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 current Definition Phase initially focused on requirements reconciliation and is now in Preliminary Design to evolve the ship design. Completion of the individual design phases will progressively inform the costing of the project. This activity is being jointly undertaken by project staff, Irving Shipbuilding Inc. and its subcontractors. Project costs have been revalidated through financial reviews conducted to support the project’s March 2021 Revised Project Approval (Definition Phase 2) corporate submission.

Schedule: Following Definition Contract award in February 2019 and progress through the initial two years of design, the current Definition Phase is now expected to take five years to support the start of ship construction in FY 2023-24. While work is still underway with Canada’s prime contractor, Irving Shipbuilding Inc., to optimize a build schedule, first ship delivery is now expected to occur in the early 2030s (2030-2033). The revised ship delivery schedule recognizes the complexity of the CSC design and is informed by best practices and lessons learned through allies who are building variants of the same design.

Work Plan: In FY 2022-23, the CSC project will achieve the following:
The Preliminary Design Review which commenced in December 2021 is expected to complete in mid-2022. CSC ship design work will continue to progress through Functional and Detailed Design Activities, AEGIS design and integration work will advance, and other preparations to enable the start of ship construction in FY 2023-24 will continue. Additionally, design and build activities for the Land-Based Test Facility will progress to ensure the facility is ready in time to support ship build and delivery timelines. 

Project name Cormorant Mid-Life Upgrade Project
Description The Cormorant Mid-Life Upgrade (CMLU) Project will extend Canada’s Rotary Wing Search and Rescue services to at least 2042 by addressing equipment obsolescence related to flight safety, capability sustainment, component supportability, and emerging airspace regulatory requirements. Additionally, the Project will aim to rectify capability deficiencies, ensuring the CH-149 meets the operational availability requirements to support a national 24/7 Search and Rescue service at the four Rotary Wing SAR Main Operating Bases (Comox British Columbia, Trenton, Ontario, Greenwood, Nova Scotia, and Gander Newfoundland).
Project outcomes

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. 

In addition, the CMLU Project will support results for CR 1: Operations and CR 2: Ready Forces, specifically:
DR 1.2 People in need in Canada are assisted in times of natural disasters and other emergencies; and
DR 2.2 Military equipment is ready for training and operations

This Project will address capability deficiencies and extend the fleet of CH-149 Cormorant aircraft’s Estimated Life Expectancy to at least 2042 by:

  • Reducing total cost of ownership through the replacement of obsolete systems and equipment and providing aircraft improvements to the latest configuration;
  • Increasing the fleet size to be able to return a full Rotary Wing SAR compliant capability to the Trenton Main Operating Base:
  • Upgrading the avionics, communications and sensor systems; and
  • Upgrading training.

The overall outcome of the project will be a combination of improved aircraft availability and the potential of increased interoperability with fixed-wing SAR and other search agencies to provide operational efficiencies and enhance SAR outcomes.

Industrial benefits

The Industrial and Technological Benefits (ITB) Policy of Canada’s Defence Procurement Strategy (DPS) applies to this project. The objective is to achieve 100% of total contract value in Canadian Content Value as Direct and Indirect ITB Transactions.
The objectives:

  • Leverage investments that maximize direct opportunities for Leonardo’s Canadian subcontractors on the CH-149 fleet in Key Industrial Capability areas and opportunities where technologies developed in Canada can be easily integrated to the existing design;
  • Leverage investments from Leonardo that enable it to grow its presence in Canada and broaden its Canadian supply base in line with its main lines of business, defence, aerospace and space; and
  • Seek opportunities in Supplier Development, Research and Development and investments in Skills Development and Training activities, including under-represented groups.

The actual benefits to Canadian industry and the regions that will benefit from the project will be dependent on the final Project solution to be adopted.

Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED)
Prime contractor Leonardo MW Ltd – Yeovil, UK
Major subcontractors
  • IMP Aerospace & Defense – Halifax, Nova Scotia, Canada
  • CAE – Montreal, Quebec, Canada
  • GE Canada Aviation – Ottawa, Ontario, Canada
  • Rockwell Collins Canada – Ottawa, Ontario, Canada
Project phase
Definition February 2019
Major milestones
Project Approval (Definition) February 2019
Request for Proposal Release January 2020
Leonardo Helicopter Division Proposal Received May 2020
Discussions on proposal deficiencies ceased October 2020
Start Investigation of Alternate Solutions October 2020
Estimated Project Approval – (Implementation) October 2022
Initial Operational Capability 2026
Full Operational Capability 2028
Effective Project Closeout 2029
Progress report and explanation of variances

The CMLU Project pursued its Definition activities. Upon review of the May 2020 Contractor Proposal and determination that the proposal was unaffordable, the Project started investigating alternate solutions which are under review by the Department.

Scope - Negotiations with the contractor were put on pause due to the proposals being unaffordable. The project office and the Royal Canadian Air Force investigated alternate solutions to address emerging obsolescence.

Schedule - The investigation of alternate solutions delayed the Estimated Project Approval Implementation milestone of June 2022 to October 2022. Key milestones such as First Aircraft delivery, Initial and Full Operational Capability, etc., which are dependent on Contract Award, will be adjusted once Contract Award date has been confirmed.

Budget (Definition) – The Project may need additional funds depending on which option is chosen.

In FY 2022-23, the CMLU project will achieve the following:·       

  • Completion of all Definition activities (Spring 2022);
  • Approval to enter Implementation phase (Fall 2022); and
  • Commencement of engineering, planning and production activities needed prior to starting production of the CMLU upgraded aircraft (Winter 2022).
Project name Fixed-Wing Search and Rescue Aircraft Replacement Project
Description The objective of the Fixed-Wing Search and Rescue Aircraft Replacement (FWSAR) project is to replace the capability provided by the current fixed-wing Search and Rescue (SAR) fleets of CC-115 Buffalo and CC-130H Hercules aircraft. This will be accomplished by acquiring new, sensor-equipped aircraft with long-term In-Service Support (ISS), to ensure the Canadian Armed Forces can continue to provide an acceptable response to SAR incidents anywhere in the Canadian Area of Responsibility (AoR).
Project outcomes

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 objectives:

  • To acquire 16 new, sensor-equipped CC-295 Kingfisher aircraft to replace the SAR fleets of CC-115 Buffalo and CC-130H Hercules;
  • To acquire the long-term In-Service Support for these aircraft;
  • To deliver the associated infrastructure; and
  • To ameliorate search and rescue missions.

The FWSAR project will deliver against the following core responsibilities of the Department of National Defence and the Canadian Armed Forces; specifically, for the Royal Canadian Air Force:

  • Introduce a new fleet that will contribute towards ensuring operations within Canada, North America, and internationally remain effective; 
  • Ensure that the Air and Space forces elements for Force Posture and Readiness requirements remain ready; and
  • Ensure that the fleets available are as planned to meet training and operational readiness requirements.

The primary beneficiary are those who require Search and Rescue Services.

Industrial benefits 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 In-Service Support. 
Sponsoring department

Department of National Defence (DND)

Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor Airbus Defence and Space S.A. – Madrid, Spain
Major subcontractors
  • PAL Aerospace – St. John’s, Newfoundland, Canada
  • CAE – Montreal, Quebec, Canada
  • Pratt & Whitney Canada – Longueuil, Quebec, Canada
  • L-3 WESCAM – Burlington, Ontario, Canada
Project phase
Implementation December 2016
Project Closeout (expected)  2025
Major milestones
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 2022
Final Aircraft Delivery 2022-23
Full Operational Capability 2024
Effective Project Closeout 2025
Progress report and explanation of variances

The FWSAR project is achieving project objectives, notably:

  • The FWSAR project received Project Approval for the Definition Phase in the spring of 2015;
  • The Request for Proposal was released on 31 March 2015;
  • The bid evaluation was completed during the summer of 2016;
  • A contract was awarded to Airbus Defence and Space on 1 December 2016;
  • The ground breaking for the Comox Training Centre occurred in January 2018;
  • The assembly of the first CC-295 aircraft began in September 2018; 
  • During FY 2018-19, the critical design reviews were completed for aircraft, training devices and the ISS solution;
  • The first Kingfisher aircraft was accepted by the Government of Canada in Spain in December 2019;
  • The aircraft maintenance trainer arrived in Comox, British Columbia, from Spain in February 2020;
  • The first Kingfisher aircraft arrived in Comox, British Columbia on 17 September 2020;
  • Maintainer Initial Cadre Training and Aircrew Interim Training started in Comox, British Columbia in October 2020;
  • The eighth Kingfisher aircraft was accepted by Canada in Spain in 16 November 2021; and
  • A fourth Kingfisher aircraft arrived in Comox, British Columbia on 7 November 2021.

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

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

Schedule: There are schedule risks given the uncertainty of the global COVID-19 pandemic situation, and the volume and complexity of the work remaining that will very likely impact Initial Operational Capability and subsequent milestones. The risks are being actively assessed, managed and mitigation measures coordinated with key stakeholders including the RCAF and the contractor.

Work Plan: In FY 2022-23, the project will achieve the following:

  • Formal acceptance of the Training Centre facility in Comox, British Columbia;
  • Start the Initial Operational Test and Evaluation;
  • Continue the aircraft qualification and certification; and
  • Continue with the acceptance of the Kingfisher aircraft.
Project name Future Fighter Capability Project
Description The objective of the Future Fighter Capability Project (FFCP) is to successfully acquire and transition into service 88 advanced fighter aircraft and associated equipment, weapons, infrastructure, information technology, and sustainment, including training and software support. This project will leverage Canadian capabilities and support the growth of Canada’s aerospace and defence industries.
Project outcomes

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 outcomes:

  • 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 that operations within Canada, North America, and internationally are effective; 
  • Ensures that Air and Space forces Elements meeting Force Posture and Readiness requirements remain ready; and
  • Ensures that fleets are available as planned to meet training and operational readiness requirements. 
Industrial benefits

The Industrial and Technological Benefits (ITB) Policy, including Value Proposition (VP), applies to the Future Fighter Capability Project to ensure that long-term, high-quality economic benefits are leveraged for Canadian industry.  As part of their bid package, FFCP eligible Suppliers are required to submit a proposal to make investments in Canadian industry that align with Canada’s VP objectives.

More specifically, Canada has implemented a VP that seeks to motivate generational investments in Canada’s aerospace and defence industries over the coming decades, and that drives innovation, exports and skills development in Canada’s Key Industrial Capabilities including in such areas as In-Service Support, Aerospace Systems and Components and Space Systems.

Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor To be determined (TBD)
Major subcontractors TBD
Project phase
Definition November 2017
Implementation 2022
Major milestones
Project Approval (Definition) November 2017
Project Approval (Implementation) 2022
Contract Award 2022
First Aircraft Delivery As early as 2025
Initial Operational Capability 2026-2028
Full Operational Capability 2031-2033
Effective Project Closeout 2031-2033
Progress report and explanation of variances

Scope: DND is collaborating with PSPC and ISED 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, Engaged. The project’s implementation budget will be informed by ongoing project definition work and is contingent on approval as part of the Project Approval process for Implementation.

Schedule: Notwithstanding adjustments and delays due to the COVID-19 pandemic and associated work restrictions, FFCP has continued to steadily progress throughout FY 2021-22. This includes competition evaluation activities, and infrastructure detailed design is ongoing for an aircraft agnostic Fighter Squadron Facility in each of Cold Lake, Alberta and Bagotville, Quebec along with site preparation at these locations to support eventual construction activities. The initial evaluation phase of the FFCP competitive procurement process has been completed and a decision on the next phase, which could either be a dialogue phase with both Bidders or the finalization phase with the top-ranked Bidder, will be made shortly.
Work Plan: In FY 2022-23, the project will achieve the following:

  • Moving the competition through the selection process working towards a contract award in fiscal year 2022-23; and
  • Continuing infrastructure work in Cold Lake, Alberta and Bagotville, Quebec, and initiating planning and design activities for any additional Future Fighter infrastructure requirements across Canada.
Project name Halifax-Class Point Defence Missile System Upgrade
Description The objective of the Halifax-class Point Defence Missile System Upgrade (PDMSU) project is to develop and acquire an evolution to the current Evolved SeaSparrow Missile (ESSM) Point Defence Missile System, fitted in the Halifax-class ships. This work will sustain the Royal Canadian Navy’s Halifax-class ships’ ability to defend against current and future threats originating from surface, sub-surface, air and land-based platforms.
Project outcomes

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 PDMSU project has the following project outcomes:

  • Develop an improved point defence missile as part of a 12-country initiative;
  • Acquire and integrate an upgraded Point Defence Missile System for the Halifax-class ships; and
  • Acquire stock of the ESSM Block 2.

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

  • Provide improved capabilities which will contribute towards ensuring operations within Canada, North America, and internationally are effective; and
  • Acquire new capabilities to ensure Canada and North America are defended against threats and attacks.
Industrial benefits

The development work, performed under the ESSM Block 2 Engineering and Manufacturing Development Memorandum of Understanding (MOU), consists of Government work and industrial work. While the Government work will be performed primarily by the United States Government, the industrial work is shared among the contributing participants in accordance with their cost share percentages.

Work share for Implementation Phase is governed by the MOU for the Production of the ESSM Block 2, with work share based on the country’s percentage of total missiles acquired. As a result, the work share is 100% of the value associated with the production of the contracted missiles.

Canada’s Industrial and Regional Benefits (IRB) Policy does not apply to this project.

Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor NATO SeaSparrow Surface Missile System Project
Major subcontractors Raytheon Missile & Defense – Tucson, Arizona, USA
Project phase
Implementation March 2017
Closeout (expected) March 2028
Major milestones
Project Approval (Definition) November 2014
Initial ESSM Block 2 Engineering and Manufacturing Development MOU Payment November 2014
Project Approval (Implementation) March 2017
First Missile Delivery Mid 2021
Initial Operational Capability (IOC) June 2022
Full Operational Capability (FOC) December 2025
Project Closeout March 2028
Progress report and explanation of variances

The PDMSU project has achieved project objectives, notably:

  • Canada signed the ESSM Block 2 Engineering and Manufacturing Development MOU on 12 November 2014; and
  • Canada signed the ESSM Block 2 Production MOU on 29 March 2017.

Scope: The project is on track to deliver its 2017 approved scope.

Cost: The project is currently within its 2017 approved budget.

Schedule: Latest integration testing onboard Halifax-class frigate revealed issue with missile firmware. Initial Operational Capability (IOC) was delayed to June 2022, with delivered missiles to be returned to manufacturer to address the issues. All other future milestones remain unchanged, in accordance with its 2017 approved schedule.

Work Plan: In FY 2022-23, the PDMSU project will achieve the following:

  • Promulgate the results for the Packaging, Handling, Storage and Transportation (PHS&T) approach;
  • Perform remaining shipboard integration testing of Block 2 solution;
  • Perform first firings of the new ESSM Block 2 missiles;
  • Complete missile firing analysis; and
  • Achieve Initial Operational Capability.
Project name Hornet Extension Project
Description The Hornet Extension Project (HEP) will ensure that the Royal Canadian Air Forces (RCAF) Hornet fighter fleet is able to meet operational commitments, including to the North American Aerospace Defence Command (NORAD) and the North Atlantic Treaty Organization (NATO), until 2032 when the permanent replacement fleet is expected to be fully operational.
Project outcomes

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 HEP project has the following project outcomes:

  • Phase 1 of the project will deliver upgrades to the avionics and mission support systems for up to 94 CF-188 to ensure compliance with regulatory requirements and interoperability standards; and
  • Phase 2 of the project will deliver combat capability upgrades for 36 aircraft.

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

  • Provide a modernized CF-18 fighter fleet, which will contribute towards ensuring effective operations within Canada, North America, and internationally;  
  • Ensure Air and Space forces elements meeting Force Posture and Readiness requirements remain ready; and
  • Ensure fleet are available as planned to meet training and operational readiness requirements.
Industrial benefits Industrial Technological Benefits (ITB) Policy will be considered for all acquisitions in excess of $20M to achieve 100% of total contract value in Canadian Content Value as Direct and Indirect ITB Transactions.  The policy applies to six contracts: Sniper Pod contract with Lockheed Martin; Radome contract with The Boeing Company, GPS contract with Northrop Grumman, and with Raytheon for the APG-79(v)4 Radar, AIM-9X missiles, and Joint Standoff Weapons (JSOW).
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Department of National Defence (DND); Public Services and Procurement Canada (PSPC); Innovation, Science and Economic Development (ISED)
Prime contractor The Project is contracting through a combination of contract vehicles without a prime contractor. Primarily, equipment is being acquired through agreements with the United States Government under the Foreign Military Sales program, and some equipment is being acquired directly from Original Equipment Manufacturers. Engineering and integration work are being performed through two existing Prime Air Vehicle contracts in Canada.
Major subcontractors
  • Raytheon Intelligence & Space, Arlington, Virginia, USA
  • Raytheon Missiles & Defense, Tucson, Arizona, USA
  • Lockheed Martin, Orlando, Florida, USA
  • Northrop Grumman Corporation, Falls Church, Virginia, USA
  • The Boeing Company, St Louis, Missouri, USA      
  • Collins Aerospace, Cedar Rapids, Indiana, USA
  • CAE, Arlington, Texas, USA
  • L3Harris, Mirabel, Quebec, Canada
  • Peraton, Calgary, Alberta, Canada
Project phase
  • HEP Phase 1: Concurrent Definition and Implementation
  • HEP Phase 2: Concurrent Definition and Implementation
Major milestones
Project Approval (Definition) Phase 1 June 2019
Project Approval (Definition) Phase 2 May 2020
Project Approval (Implementation) May 2020
Estimated Contract Award (Implementation) November 2021
Estimated Project Approval (Implementation) for remaining systems in Definition December 2021
Initial Operational Capability (IOC) December 2023
Full Operational Capability (FOC) June 2025
Project Closeout December 2026
Progress report and explanation of variances

The HEP project is achieving project objectives, notably:

  • 6 June 2019: Project Approval (Definition) with Expenditure Authority received;
  • 20 June 2019: Independent Review Panel Defence Acquisition (IRPDA) for Phase 2 completed;
  • 16-17 October 2019: Integration meeting with the United States Navy/Air Force to finalize Phase 2 activities, delivery scheduled and costing completed;
  • 15 May 2020: Approval (Definition) Phase 2 and (Implementation) with Expenditure Authority and Contracting Authority received;
  • 13 November 2020: Received aircraft software source code from the United States Navy to start adding in Canadian capability requirements;
  • 26 February 2021: All nine Letters of Offer and Acceptance (LOAs) from the United States Government have been accepted for acquisitions under the Foreign Military Sales program;
  • 26 July 2021: Establishment of a Detachment at China Lake, California for flight testing;
  • 6 October 2021: contract award to Lockheed Martin for Sniper Pod upgrades;
  • November 2021: contract award to Northrop Grumman for new GPS/Inertial Navigation system; and
  • December 2021: Treasury Board approval for project to proceed completely into Implementation phase with associated Expenditure and Contracting Authorities.

Scope: The project is on track to deliver the approved scope.
Cost: The project is within its approved budget.

Schedule: The project is currently on schedule to have equipment delivered and integration completed to meet the capabilities required for IOC by December 2023 and FOC by June 2025.

Work Plan: In the fiscal year 2022-2023, the HEP project will achieve the following:

  • Take delivery of some equipment such as ARC-210 Generation 6 radios, APG-79(v)4 radars, and aircraft software;
  • Two aircraft will be prototyped with some equipment and flight testing will commence to meet Initial Operational Capability of 31 December 2023; and
  • The installation of selected systems will commence on six aircraft to support Initial Operational Capability.
Project name Interim Fighter Capability Project
Description 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. A secondary objective includes relocation of the Aerospace Engineering Test Establishment (AETE) from Cold Lake to the Ottawa Airport, including hangar renovations in Ottawa and the relocation of current occupants.
Project outcomes

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;
  • Help address the capability gap by having sufficient operational aircraft to support execution of the roles and missions asked by the Government of Canada; and
  • Relocation of AETE from Cold Lake, Alberta to Ottawa, Ontario Airport.

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

  • Increases number of available F/A-18 aircraft 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 is available as planned to meet training and operational readiness requirements.
Industrial benefits 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.
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor Acquired from the Australian Government through a Government to Government Purchasing Arrangement
Major subcontractors CF-18 Prime Air Vehicle Optimized Weapons System Management Contractor (L-3 Harris), Avionics Optimized Weapons System Management Contractor (Peraton), Propulsion Group System Optimized Weapons System Management Contractor (Magellan)
Project phase
Implementation November 2018
Major milestones
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 February 2019
Initial Operational Capability June 2019
Introduction to Service June 2019
Full Operational Capability December 2022
Effective Project Closeout March 2023
Progress report and explanation of variances

The IFCP project is achieving project objectives, notably:

In FY 2018-19, IFCP achieved the following:

  • On 12 December 2017, the project received amended Expenditure Authority for Definition;
  • On 1 November 2018, the project received Expenditure Authority and Contract Approval for Implementation;
  • On 9 November 2018, PSPC signed Government to Government Purchasing Arrangement with the Government of Australia for the purchase of aircraft, spare parts and support equipment; and
  • On 23 February 2019, Canada took delivery of the first two supplementary F/A-18 aircraft.

In FY 2019-20, IFCP achieved the following:

  • Completed acceptance, modifications, and testing required to obtain airworthiness clearances on the first two aircraft, to support RCAF declaration of Initial Operational Capability on 28 June 2019;
  • Established a three-person detachment in Australia to coordinate the acceptance of aircraft, spare parts and equipment; and
  • Received third (17 November 2019) and fourth (13 February 2020) aircraft from Australia.

In the FY 2020-21, IFCP achieved the following:

  • Received and transported 11 additional Australian F/A-18 to Canada, bringing the total aircraft received to date to 15;
  • Continued aircraft acceptance and “Canadianization” of aircraft received;
  • Released one additional aircraft to RCAF operations;
  • Achieved 66% design complete milestone for 14 Hangar renovations in Ottawa; and
  • Relocated lead elements of AETE to temporary facilities in Ottawa, Ontario.

In the last 6 months of FY 2021-22, IFCP has achieved and is planning to have completed by the end of the reporting period the following:

  • Transported and received the remaining operational Australian F/A-18 and two non-operational aircraft;
  • Completed aircraft acceptance and “Canadianization” to make IFCP aircraft functionally identical to the existing CF-18 fleet, and integrated the aircraft into the current fighter force structure;
  • Accepted initial delivery of spare parts and equipment as they become available from Australia;
  • Completed design and commenced renovation of leased facility in Ottawa, Ontario;
  • Released 3 additional aircraft to RCAF for operations for a total of 6 and is planning to release 1 more;
  • Planning to achieve by Dec 2021, the Certificate of Airworthiness for aircraft that are released to service and the ones that are upcoming; and
  • By March 2022, completed 14 Hangar design activities and commenced renovations.

Cost: The project is currently within its approved budget, but full contingency was released to address unforeseen infrastructure costs. Cost risks are stable and contained.

Schedule: The project is currently on its approved schedule for the delivery of equipment to the RCAF; however, infrastructure activities associated with the relocation of AETE have experienced significant delays associated with securing leased accommodations for current occupants of Hangar in Ottawa, Ontario with associated impact on hangar renovations. Recently, disruptions in the global supply chain are inducing further delays to the AETE infrastructure activities which is having a cascading impact on baseline schedule.

Work Plan: For FY 2022-23, IFCP shall:

  • Release remaining aircraft to RCAF for operations;
  • Receive delivery of the remaining spare parts and equipment as they become available from Australia;
  • Achieve full Technical and Operational Airworthiness Clearance;
  • Complete minor renovations to leased facilities in Ottawa, Ontario and relocate current occupants of 14 Hangar by May 2022; and
  • Complete 14 Hangar design activities and commence renovations.
Project name Joint Support Ship
Description The objective of the Joint Support Ship (JSS) project is to deliver two new support ships to replace the Royal Canadian Navy’s (RCN) Auxiliary Oiler Replenishment vessels that have reached the end of their service. The capabilities required of the Joint Support Ships are crucial to the RCN. 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.
Project outcomes

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 in support of the Canada’s Defence Policy Strong, Secure, Engaged (SSE) strategic vision and primary missions (SSE initiative 29).

 

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 RCN:

  • 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.
Industrial benefits 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 Ships and Joint Support Ship In-Service Support) contract which was awarded in 2017. 
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor

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 to support the AOPS and JSS vessels is in place.

Major subcontractors
  • Serco Canada Marine Corporation – Ottawa, Ontario, Canada
  • Thales 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
  • MAN Diesel and Turbo Augsburg, Germany
  • Lockheed Martin Canada - Ottawa, Ontario, Canada
  • Navamar Inc. - Montreal, Quebec, Canada
  • OSI, Burnaby, British Columbia, Canada
  • Indal Technologies - Mississauga, Ontario, Canada
  • DRS Technologies - Ottawa, Ontario, Canada
  • Hawbolt Industries - Chester, Nova Scotia, Canada
  • Federal Equipment - Ohio, USA
  • Ultra Electronics - Dartmouth, Nova Scotia, Canada
  • Jastram Engineering – North Vancouver, British Columbia, Canada
  • Gibbs and Cox Maritime Solutions – New York, New York, USA
  • Joiner Systems Inc. – Vancouver, British Columbia, Canada
  • Genoa Design International – Mt Pearl, Newfoundland, Canada
  • Bronswerk Marine – Brossard, Quebec, Canada
  • Bluedrop Training & Simulations Inc. (BTSI) – Halifax, Nova Scotia, Canada
  • Aluma Safway Inc. – Richmond, British Columbia, Canada
  • Imeco Inc. – Marinette, Wisconsin, USA
  • Babcock Canada – Ottawa, Ontario, Canada
Project phase
Implementation February 2020
Closeout (expected) 2026
Major milestones
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) February 2020
Award of Implementation Contract June 2020
Delivery of first ship 2024
Initial Operational Capability 2024
Delivery of second ship 2025
Full Operational Capability 2026
Project Closeout 2026
Progress report and explanation of variances

The JSS project is achieving project objectives, notably:

  • The JSS Project received Project Approval for its implementation in February 2020. Subsequently, the Design and Production Engineering Contract, as well as the Long Lead Items Contract, were amended. The Early Block Build Contract was also amended to act as a bridge until the Build Contract was awarded to Seaspan Vancouver Shipyards in June 2020;
  • Since construction started, originally under the Early Block Build Contract which began in June 2018, approximately 70 of 123 blocks have been structurally completed by end-October 2021, with the remainder under construction;
  • The Final Design Review was held on 22 July 2021. This was the third and final design review of the JSS design to confirm it meets all of Canada’s requirements;
  • Through the Long Lead Items contract, the shipyard has established a comprehensive supply chain involving a significant number of Canadian companies from Coast to Coast that are delivering essential material and equipment, and are contributing to the project’s progress as well as the Canadian economy;
  • With the continued shipyard construction activities for JSS, Canada’s detachment in Vancouver successfully established and conducted the necessary client inspections on constructed JSS blocks. Collaboration with the Canadian Coast Guard was leveraged to find efficiencies in sharing local inspection resources; and
  • Separate from JSS design and construction contracts, a contract was competitively awarded in 2019 to Navamar Inc. (Montreal) for the Sea-to-Shore connector systems. The first of these systems began trials in October 2021 with the first delivery planned for early 2022.

Scope: The mandate to deliver two Joint Support Ships remains unchanged.

Cost: The Project budget was reviewed and updated as part of the February 2020 project implementation approval. The shipyard has experienced impacts related to COVID-19 affecting cost and schedule. The planned revision to the target cost for the first ship will inform whether existing financial and contractual authorities are sufficient to realize the project scope.

Schedule: The Project schedule was reviewed and updated as part of the February 2020 project implementation approval. The ship deliveries are expected to be delayed due to COVID-19 impacts on the shipyard and the supply chain.

Work Plan: In FY 2022-23, the Joint Support Ship project will achieve the following:

  • The Build Contract will be amended to reflect the revised and agreed Target Cost and baseline schedule for the first ship;
  • Significant work will be completed for the first ship, including completion of the majority of the steel work, and commencement of outfitting;
  • It is expected that the ship will be launched and continue outfitting alongside the shipyard;
  • Work will progress on the construction of the second ship; and
  • Canada will take delivery of the final three of the four Sea-to-Shore connector systems.
Project name Light Armoured Vehicle Reconnaissance Surveillance System
Description The objective of the Light Armoured Vehicle Reconnaissance Surveillance System (LRSS) project is to replace 141 of the Canadian Army’s Coyote armoured vehicle fleet with 66 state-of-the-art surveillance systems, integrated into 66 light armoured vehicles (LAV) 6.0 chassis.
Project outcomes

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 LAV Reconnaissance Surveillance System project has the following project outcomes:

  • Deliver 66 LAV Reconnaissance variant vehicles; and
  • Deliver initial provisioning of surveillance system spares.

Once these vehicles are introduced into service they will be contributing to various Program Inventories under Operations and Ready Forces. The LAV Reconnaissance Surveillance System project will deliver the following capabilities to the Canadian Armed Forces:

  • A modernized land fleet that will assist with ensuring operations within Canada, North America, and internationally are effective; 
  • An element of Deployable Land Forces in support of Force Posture and Readiness; and
  • A fleet that is available as planned to meet training and operational readiness requirements. 
Industrial benefits Canada’s Industrial and Regional Benefits Policy applies to this project.
Canada will receive industrial and regional benefits equivalent to 100% of the contracted value from General Dynamics Land Systems-Canada.
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor General Dynamics Land Systems - Canada – London, Ontario, Canada
Major subcontractors Leonardo DRS - Arlington, Virginia, USA
Project phase
Implementation November 2014
Closeout (expected) Spring 2024
Major milestones
Project Approval (Definition) December 2012
Project Approval (Implementation) November 2014
Contract Award February 2015
Initial Operational Capability Fall 2022
Full Operational Capability Winter 2023
Project Closeout Spring 2024
Progress report and explanation of variances

The LAV Reconnaissance Surveillance System project has achieved project objectives, notably:

  • Surveillance System Critical Design Review 2016; and
  • Project Critical Design Review 2019.

Scope: The project is anticipated to deliver the 2014 approved scope.

Cost: The project is within the budget established in 2014.

Schedule: The project has experienced a five-year delay against the 2014 approved schedule due to the technical challenges in developing a compliant surveillance system, one of the most significant being the bankruptcy of a major sub-contractor.  Delivery of the first system has been delayed several times from the original 2017 date to 2022.

Work Plan: In FY 2022-23, the LAV Reconnaissance Surveillance System project will focus on activities supporting delivery of vehicles. Operational testing will be conducted to enable verification of compliance with requirements of the contract and the Canadian Army, leading to the declaration of an Initial Operating Capability.

Project name Logistics Vehicle Modernization Project
Description The Logistics Vehicle Modernization (LVM) project will acquire a new fleet of light trucks of a 4 to 5 tonne cargo capacity; trailers and modules to mount on the trucks; and trailers that will provide accommodation space to conduct various tasks (such as office space, command posts and workshops).  The project will also acquire heavy trucks and trailers with a 16.5 tonne cargo capacity; trailers for engineering construction equipment and to transport a main battle tank; modules for accommodation and specialized cargo (such as fuel); and armoured protection kits for the cabs. The LVM project will pursue sustainment outcomes tailored to meet Canadian Armed Forces (CAF) operational requirements for the planned 20 years of service. The project will also fund new infrastructure and upgrades to existing infrastructure required to support the new fleets.
Project outcomes

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 LVM has the following project outcomes:

  • Acquire light and heavy logistics fleets;
  • Deliver long-term In-Service Support; and
  • Build and upgrade infrastructure to support the new fleets.

Once the fleets are brought into service, they 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 CAF, specifically to the Canadian Army:

  • Ensures fleets are available as planned to meet training and operational readiness requirements; and
  • Provides modernized fleets which will contribute towards ensuring operations in Canada, North America and internationally are effective.
Industrial benefits The Industrial and Technological Benefits (ITB) Policy including the Value Proposition will apply to the LVM Project. The ITB obligation will be equal to the value of the contract.
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor To be determined (TBD)
Major subcontractors TBD
Project phase
Definition February 2019
Major milestones
Project Approval (Definition) February 2019
Request for Proposal (RFP) release Fall 2021
Bid Evaluation Complete 2022-23
Project Approval (Implementation) 2022-23
Contract Award (Implementation) 2022-23
Initial Operational Capability Between 2027-28 and 2028-29
Full Operational Capability Between 2029-30 and 2030-31
Progress report and explanation of variances

The LVM Project is achieving Definition phase project objectives, notably:

  • In April 2019, Canada published the formal invitation to qualify. The current list of Qualified Suppliers (in alphabetical order) is as follows:
    • General Dynamics Land Systems – Canada Corporation, General Dynamics Land Systems Incorporated and Daimler Truck AG;
    • Iveco Defence Vehicles S.p.A.;
    • Mack Defence LLC and ARQUUS;
    • Oshkosh Defence Canada Incorporated and Oshkosh Defence, LLC; and
    • Rheinmetall Canada Inc. and Rheinmetall MAN Military Vehicles GmbH.
  • Ongoing engagements with Qualified Suppliers since August 2019 to review and refine requirements and solicitation documents;
  • Draft Request for Proposal (RFP) documents released to qualified suppliers in Phases (July 2020 through August 2021); and
  • Engagements were held at each major release to solicit feedback from qualified suppliers.

Schedule: While the schedule remains aggressive, the project is on track to release the RFP as planned.

Work Plan: In FY 2022-23, the project will achieve the following:

  • The project will receive bid proposals from eligible suppliers; and
  • The project will conduct the evaluation of the bidders’ proposals.
Project name Maritime Helicopter Project
Description The objective of the Maritime Helicopter Project (MHP) is to acquire a new maritime helicopter capability to replace the CH-124 Sea King. This acquisition will address the operational deficiencies of the current CH-124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multipurpose shipborne Maritime Helicopters for operations well into the 21st century.
Project outcomes

This project 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 MHP has the following project outcomes:

  • Acquire 28 fully equipped Maritime Helicopters;
  • Deliver long-term In-Service Support; and
  • Modify the Halifax-class ships to accommodate the new Maritime Helicopters.

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 being delivered to the Royal Canadian Air Force, and will support the Royal Canadian Navy:

  • Ensures Maritime Forces and Air and Space Forces Elements remain ready and are deployable in support of Force Posture and Readiness;
  • Ensures fleet is available as planned to meet training and operational readiness requirements; and
  • Contributes towards ensuring operations in Canada, North America and internationally are effective.
Industrial benefits 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 acquisitions and 80% of the contracted value for the In-Service Support portion from Sikorsky Aircraft. 
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor Sikorsky International Operations Incorporated – Stratford, Connecticut, USA
Major subcontractors
  • General Dynamics Mission Systems - Canada – Ottawa, Ontario, Canada
    L3 Harris Technologies, Inc., formally L-3 MAS – Mirabel, Quebec, Canada
Project phase
Implementation November 2004
Closeout (expected) 2025
Major milestones
Project Approval (Definition) June 2003
Project Approval (Implementation) November 2004
Contract Award November 2004
Revised Project Approval (Implementation) June 2014
First Delivery (Block 1 Maritime Helicopters) June 2015
First Delivery (Block 2 Maritime Helicopters) April 2018
Initial Operational Capability (IOC) May 2018
Final Delivery 2022
Project Full Operational Capability 2022
Effective Project Closeout 2022
Full Project Closeout 2023
Progress report and explanation of variances

The MHP is achieving project objectives, notably as of 25 October 2021:

  • A total of 23 CH-148 Cyclone helicopters have been delivered, 20 of which are in the Block 2 configuration, and three in Capability Release 2.1; and
  • Since IOC declaration in 2018, Cyclones have continuously supported domestic and international operations.

Scope: On 18 June 2014, following a revised Project Approval (Implementation), the Government of Canada and Sikorsky International Operations Incorporated signed a contract amendment. This amendment extended the In-Service Support Agreement out to 2038 and re-baselined the project schedule.

Cost: The MHP PMO will be requesting additional Project Authority and funding, aiming to complete the project within the approved scope.

Schedule: MHP has identified a risk of slippage with its re-baselined approved schedule due to some deliverables pending additional Project Authority and Additional Funds.

Work Plan: In FY 2022-2023, the Maritime Helicopter Project will achieve the following:

  • Delivery and Acceptance of the final Block 2 CH-148 Cyclone;
  • Introduce the Sea State 6 capability to the fleet;
  • Complete Block 2 Integrated Mission System Qualification;
  • Upgrade the Training Devices to Capability Release 2.1 configuration;
  • Complete Operational Support Readiness Verification; and
  • Deliver all Capability Release 2.1 Modification Kits to the RCAF.
Project name Protected Military Satellite Communications
Description 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 US, United Kingdom, and the Netherlands. The project includes MILSATCOM terminals for deployed land, sea and air forces.
Project outcomes

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 PMSC project has the following project outcomes:

  • Phase 1 – Definition (Complete)
    • Procure access to the US DoD AEHF MILSATCOM 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 (DND) and the Canadian Armed Forces (CAF):

  • Ensures fleet available as planned to meet training and operational readiness requirements; and
  • Ensures Operations in Canada, North America and internationally are effective.
Industrial benefits The US DoD committed to a work share with Canadian Industry under the completed Phase 1 portion. Canada’s Industrial and Regional 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.
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor United States Department of Defense via Foreign Military Sales (FMS)
Major subcontractors Raytheon – Waltham, Massachusetts, USA
Project phase
Implementation November 2003
Closeout (expected) March 2029
Major milestones
Project Approval (Definition) August 1999
Project Approval (Implementation) November 2003
First Terminal Delivery November 2011
Initial Operational Capability November 2013
Effective Project Closeout June 2022
PMSC System Full Operational Capability  March 2029
Project Closeout December 2031
Progress report and explanation of variances

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: The project is scheduled to achieve Effective Project Closeout in June 2022 after completing the first of class installation and test of the PMSC system on the HMCS Corner Brook Victoria-class Submarine. The completion of the three remaining submarines will be done by DND/CAF.

Due to slippages in the US DoD overall satellite launch schedule and Victoria-class Submarine installations, the PMSC System Full Operational Capability, has moved to March 2029 from the original (2003 approved) expected date of November 2017.

The In-Service Support of the Surface Fleet PMSC terminal was formally transitioned to Maritime Equipment Program Management in October 2020.

The removal of the Lightweight Portable Terminal requirement was approved by the Defence Capabilities Board in April 2021.

The extension of the Advanced Extremely High Frequency Operation & Support Memorandum of Understanding to 2035 was approved by the Office of the Secretary of Defence in October 2021.

Work Plan: In FY 2022-23, the PMSC project will achieve the following:

  • The transition of the project leadership to ADM(Mat)/ Director General Maritime Equipment Program Management (DGMEPM) for the installation and test of the PMSC terminals in the remaining three Victoria Class Submarines;
  • The transition of the In-Service Support of the Submarine Fleet PMSC terminals to DGMEPM; and
  • Effective Project Closeout of the PMSC project in June 2022.
Project name Remotely Piloted Aircraft System  
Description The project will deliver a Remotely Piloted Aircraft System (RPAS) capability to provide Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) information and deliver precision strike effects. The RPAS Project’s long-range, long-endurance ISTAR and precision strike capabilities will be integrated as part of a networked, joint system-of-systems, in support of the Canada’s Defence Policy Strong, Secure, Engaged. 
Project outcomes

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

The RPAS project has the following project outcome:

  • Deliver a mature long range, long endurance RPAS capability that meets the requirements of the Canadian Armed Forces (CAF).

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 (DND) and the CAF, specifically to the Royal Canadian Air Force, and will support the Canadian Army, the Royal Canadian Navy, and the Commanders of the Special Operations Forces and Joint Operational Commands.

  • Ensures fleets are available as planned to meet training and operational readiness requirements; and
  • Ensures operations in Canada, North America and internationally are effective.
Industrial benefits

The Defence Procurement Strategy (DPS) applies to this project and DND is collaborating with Innovation, Science and Economic Development (ISED) Canada to define its implementation. 

Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments ISED Canada and its regional agencies
Prime contractor To be determined (TBD)
Major subcontractors
  • TBD
Project phase
Definition 2019
Implementation FY 2023-24
Major milestones
Project Approval (Definition) April 2019
Project Approval (Implementation) FY 2023-24
Contract Award FY 2023-24
Initial Operational Capability Between 2027-28 and 2029-30
Full Operational Capability Between 2030-31 and 2032-33
Progress report and explanation of variances

The project RPAS is achieving project objectives, notably:

  • April 2019: Project entered the definition phase;  
  • May 2019: Invitation to Qualify and Qualified Suppliers list was posted on buyandsell.gc.ca;
  • June 2020: Virtual info session held with Canadian industry on RPAS procurement process, technical and Value Proposition approach;
  • November 2020: Issued draft Request for Proposal; and
  • July 2019 to October 2021: Various in-person and virtual Qualified Suppliers information sessions were held on a wide range of topics, including RPAS procurement process, Canada’s Industrial and Technological benefits, Value proposition framework, Terms and conditions, Life Cycle Cost Evaluation, sustainment and training requirements, airworthiness certification and cyber security.

Scope: The project is on track to deliver the 2019 approved scope.

Cost: The project is currently within the 2019 approved budget.

Schedule: The re-baselined project schedule was approved by Defence Procurement Strategy Governance in 2021 and the project is on track to issue solicitation documents.

Work Plan: In FY 2022-2023, it is anticipated that the project will complete the evaluation of proposals received in response to the Request for Proposal.

Project name Strategic Tanker Transport Capability  
Description The Strategic Tanker Transport Capability (STTC) project will provide the Royal Canadian Air Force (RCAF) with the ability to refuel aircraft in flight (Air-to-Air Refuelling (AAR)) and the ability to provide airlift for personnel and equipment including aeromedical evacuation. The multi-role platform will provide AAR for both domestic and expeditionary coalition operations, while complementing the strategic airlift capabilities of the RCAF fleet. The STTC aircraft will have the adaptability to transfer between strategic AAR and strategic airlift roles with minimal changes to aircraft configuration. The STTC project will acquire sufficient aircraft to replace the existing fleet capability of five CC-150 Polaris aircraft, along with the necessary supporting infrastructure, training capability and associated In-Service Support.
Project outcomes

This project will contribute 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 STTC project has the following outcomes:

  • To provide Air-to-Air Refuelling to enable CAF force elements; and
  • To provide strategic cargo and passenger transport in support of Government of Canada objectives.

The STTC project will deliver against the core responsibilities of the Department of National Defence and the Canadian Armed Forces:

  • Meet its NORAD obligations;
  • Meet commitments to NATO Allies; and
  • Contribute to international peace and stability through various deployments, deploy Disaster Assistance Response Team, and conduct Non-Combatant Evacuation Operations.
Industrial benefits The Defence Procurement Strategy applies to this project and DND is collaborating with Innovation, Science and Economic Development Canada to define its implementation.
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Prime contractor Airbus Defence and Space S.A. – Madrid, Spain
Major subcontractors TBD
Project phase
Definition December 2020  
Major milestones
Project Approval (Definition) December 2020
Project Approval (Implementation) 2022-23
Contract Award 2022-23
Initial Operational Capability Between 2027-28 and 2028-29
Full Operational Capability Between 2030-31 and 2031-32
Progress report and explanation of variances

Scope: The project is on track to deliver the 2020 approved scope, notably:

  • December 2020: Project entered the definition phase;
  • February 2021: Invitation to Qualify posted on buyandsell.gc.ca;
  • April 2021: Qualified Suppliers list posted on buyandsell.gc.ca;
  • June 2021: Virtual Industry Engagement Session held online; and
  • September 2021: First version of Draft Contract shared with Qualified Suppliers.

Cost: The project is currently within the approved budget.

Schedule: The project is on track to seek approval for the implementation phase.

Work Plan: In FY 2022-23, the project will achieve the following:

  • Finalize contractual documentation through engagement with the Qualified Supplier on requirements; and
  • Complete proposal negotiations with the Qualified Supplier and prepare for contract award following approvals.
Project name Underwater Warfare Suite Upgrade
Description The objective of the Underwater Warfare Suite Upgrade (UWSU) project is to modernize the underwater warfare sensor suite currently installed in the Halifax-class frigates. The work will address deficiencies, improve ship underwater sensor performance in the challenging littoral environment and provide a system design to enable continual improvement in a cost-effective manner. The UWSU project will improve the performance of the underwater sensors through the upgrade and/or replacement of the components of the underwater warfare sensor suite. The UWSU In-Service Support Contract (ISSC) will provide long-term, full-spectrum support to the UWSU systems.  
Project outcomes

This project 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 UWSU project has the following project outcomes:

  • Acquire twelve full-up ship-sets that will include a new passive array and low frequency active towed sonar, a new sonobuoy processing system, an upgrade to the hull mounted sonar and a new active intercept capability.

Once vessels are outfitted with the required upgrades, they 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 Royal Canadian Navy:

  • Ensure Maritime Forces elements are deployable in support of Force Posture and Readiness; and
  • Ensure fleets are available as planned to meet training and operational readiness requirements.
Industrial benefits The Industrial and Technological Benefits (ITB) Policy of Canada’s Defence Procurement Strategy (DPS) applies to this project. Canada will receive ITBs equivalent of 100% of the contracted value for both the acquisition and In-Service Support.  
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Innovation, Science and Economic Development Canada (ISED) and its regional agencies 
Prime contractor General Dynamics Mission Systems-Canada,  Ottawa, Ontario and Dartmouth, Nova Scotia, Canada
Major subcontractors Ultra-Electronics Marine Systems- Canada: Dartmouth, Nova Scotia, Canada
Nautel-Canada; Hacket’s Cove, Nova Scotia and Cornwall, Ontario, Canada
Jasco Research-Canada: Halifax, Nova Scotia and Victoria, British Columbia, Canada
Omnitech-Canada: Dartmouth, Nova Scotia, Canada
Project phase
Implementation June 2018
Major milestones
Project Approval (Definition) May 2015
Project Approval (Implementation) June 2018
Contract Award June 2018
Amended Project Approval (Implementation) June 2021
Initial Operational Capability 2023
Full Operational Capability  2028
Project Closeout 2029
Progress report and explanation of variances

The UWSU project has achieved project objectives, notably:

  • Implementation approval was received 14 June 2018;
  • Contract Award occurred 28 June 2018;
  • Project Kick-off occurred in September 2018;
  • System Requirements Review occurred in November 2018;
  • Preliminary Design Review completed in July 2019;
  • Main aspects of Critical Design Review completed in December 2020; and
  • Amended project approval was received from the Minister of National Defence 14 June 2021.

Scope: The project is on track to deliver the implementation phase approved scope of full upgrades for all twelve Halifax-class ships.

Cost: The implementation phase expenditures remain within the current authorized budget.

Schedule: Key milestones toward an Initial Operating Capability are being actively managed against technical and schedule challenges. Docking work period and trials readiness program schedules have impacted project schedules towards Initial and Final Operational Capability achievement.

Work Plan: In FY 2022-23, the UWSU project will aim to achieve the following:

  • Completion of remaining Critical Design Review elements;
  • Continued progress towards pre-production build, integration and factory acceptance testing;
  • Completion of the first ship and shore site installation; and
  • Progress towards first ship and shore site acceptance testing.
Project name Victoria-Class Modernization Project
Description Victoria-class Modernization (VCM) will provide the modernized and increased capabilities necessary to maintain the submarines’ operational relevance through the mid-late 2030s.
Project outcomes

The main objectives of the VCM enterprise are to make Canada and its allies stronger by:

  • Improving the habitability and deployment conditions onboard the Victoria-class submarines;
  • Positioning the Victoria-class submarines to contribute meaningfully to Joint Operations Ashore; and
  • Ensuring survivability of the Victoria-class submarines against an evolving complex threat in an ever-changing battlespace.
Industrial benefits Industrial Technological Benefits Policy will be considered for all acquisitions in excess of $20M.
Sponsoring department Department of National Defence (DND)
Contracting authority Public Services and Procurement Canada (PSPC)
Participating departments Department of National Defence (DND); Public Services and Procurement Canada (PSPC); Innovation, Science and Economic Development (ISED)
Prime contractor The Project is contracting through a combination of contract vehicles without a prime contractor.
Major subcontractors
  • No contracts have been let at this time.
Project phase
  • Victoria-class Modernization is currently split between the Options Analysis and Definition Phases.
Major milestones
  • Project Approval (Definition) Minor Obsolescence-Mitigation and Maintenance Initiative – November 2020
  • Project Approval (Definition) Galley Improvement Project – November 2020
  • Project Approval (Definition) Flank Array Modernization Project – November 2020
  • Project Approval (Definition) Periscope Modernization Project – November 2020
Progress report and explanation of variances

The VCM project is achieving project objectives, notably:

  • November 2020: VCM Project received Project Approval for Definition of the Galley Improvement, Flank Array Modernization and Periscope Modernization Projects;
  • November 2020: VCM Project received Minister of National Defence approval for the Minor Obsolescence-Mitigation and Maintenance Initiative; and
  • March 2021: Defence Procurement Strategy Governance Board Gate #1 for Periscope Modernization Project and Flank Array Modernization Project completed.

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

Cost: the project is within its approved budget.

Schedule: the project remains aligned with the schedule approved as part of the November 2020 project definition approval.  Initial Operational Capability is scheduled for December 2027 and Full Operational Capability is scheduled for December 2033.

Work Plan: In FY 2022-23, the VCM project will achieve the following:

  • All remaining projects will enter the Definition Phase;
  • The Galley Improvement Project will enter the Implementation Phase;
  • Habitability and deployment upgrades will commence on HMCS Victoria; and
  • Request for Proposals will be released for both the Flank Array Modernization Project and the Periscope Modernization Project.
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