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 CCG.

Once the RCN's 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 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 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; 
  • The AOPS project has contributed to the full amount of its capped financial contribution to the jetty infrastructure project in Esquimalt;
  • HMCS Robert Hampton Gray entered full production in August 2022; and
  • HMCS Max Bernays was delivered to the Royal Canadian Navy in September 2022.

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:

  • In late 2023, the fourth ship, the future HMCS William Hall, is anticipated to be delivered to the RCN;
  • Construction of the fifth and sixth ships, the future HMCS Frédérick Rolette and HMCS Robert Hampton Gray, will continue; and
  • The Project Management Office will continue to provide support to CCG as they progress their Treasury Board Submission to obtain expenditure authority to implement AOPS 7 and 8.
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 Air and Space force elements meeting Force Posture and Readiness requirements remain ready; 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 2023
Initial Operational Capability 2024
First Delivery of Type III Variants 2025
Full Operational Capability 2026
Effective Project Closeout 2026
Progress report and explanation of variances

The ACSV is achieving project objectives, notably:

  • Production started in May 2020;
  • The first ACSV, a Troop Cargo Vehicle variant, was produced by General Dynamics Land Systems Canada in December 2020;
  • The first Ambulance variant produced by General Dynamics Land Systems Canada in July 2021;
  • The first Command Post variant was produced by General Dynamics Land Systems Canada in March 2022; and
  • Critical Design Review of Electronic Warfare variant was achieved in June 2022.

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

Cost: The project is within the 2019 approved budget.

Schedule: The project has a re-baseline schedule as a result of the Government of Canada’s decision to donate 39 ACSVs to Ukraine and significant changes to vehicle design for five of eight variants due to increased weight requirements.

Work Plan: In the Fiscal Year 2023-24, the project will achieve the following:

  • Delivery of the Ambulance capability to the Canadian Army;
  • Delivery of Initial Cadre Training to the Canadian Army on the first three variants;
  • Qualification testing of the Electronic Warfare variant will begin;
  • Design of the remaining five variants will be completed; and
  • Conduct of the next phase of Reliability, Availability, Maintainability and Durability testing.
Project name AURORA INCREMENTAL MODERNIZATION PROJECT
Description

The objective of the CP-140 Aurora Incremental Modernization Project (AIMP) is to modernize the mission systems and sensors 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. 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).

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

  • Provide a modernized aerospace fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective; 
  • Ensure Air and Space forces Elements meeting Force Posture and Readiness requirements remain ready; and
  • Ensure 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
   
Major milestones

AIMP:

Block I Full Operational Capability July 2007
Block II Full Operational Capability March 2012
Block III Full Operational Capability December 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  Winter 2023
Block IV Full Operational Capability  Spring 2024
Project Closeout Winter 2024
Progress report and explanation of variances

The AIMP project has achieved several project objectives, notably:

  • 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.

Scope: AIMP Block IV is on track to deliver its full scope.  

Cost: AIMP Block IV is on track to deliver within the approved budget.

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 the Fiscal Year 2023-24, the project is scheduled to:

  • Deliver the last five Block IV aircraft;
  • Accept the simulator and training devices;
  • Complete the flight test program; and
  • Achieve Full Operational Capability.
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) 2024
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) 2024
Implementation Contract Award 2024
Cut Steel (Low Rate Production) 2025
Full Rate Production 2025
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;
  • 30 November 2017: CSC RFP closed and initial bids received;
  • 4 December 2017: Bid evaluation process commenced;
  • 16 October 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;
  • 7 February 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;
  • 5 November 2019: The project substantially completed the Requirements Reconciliation Phase and commenced Preliminary Design;
  • 30 September 2021: A contract was awarded to Poole Construction Company Limited (PCL) for the Design and Build of a Land-Based Testing Facility to be built at Hartlen Point in Nova Scotia; and
  • 10 December 2021: The project entered Preliminary Design Review with an anticipated exit in December 2022.

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 three 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:

  • Continue to progress design maturity with entry into Functional Design at the completion of Preliminary Design Review;
  • Complete design of the Land-Based Testing Facility at Hartlen Point, Nova Scotia, with construction set to begin in 2023;
  • Prepare to seek Project Implementation Authority in Fall 2024; and
  • Finalize the Project Implementation Statement of Work and prepare for Implementation Contract negotiations with Irving Shipyard Incorporated. 
Project name CORMORANT MID-LIFE UPGRADE PROJECT
Description The objective of the Cormorant Mid-Life Upgrade (CMLU) Project is to extend Canada’s Rotary Wing Search and Rescue (SAR) capabilities to at least 2042 by addressing equipment obsolescence related to flight safety, capability sustainment, component supportability, emerging airspace regulatory requirements, and training. Additionally, the project will aim to rectify capability deficiencies, ensuring the CH-149 meets the operational availability requirements to support a national 24/7 SAR service at the four Rotary Wing Search and Rescue 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 and Program Inventory 2.4 Ready Air and Space Forces of the Departmental Results Framework. Its outcome is to deliver on Cormorant mid-life upgrades, while ensuring that the projects remain in approved scope, schedule, and expenditure authority. 

In addition, the CMLU Project will support results for DR 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

The outcomes of the CMLU project are to address capability deficiencies and extend the life of the CH-149 Cormorant fleet to at least 2042 by:

  • Replacing obsolete systems and equipment and providing aircraft improvements to the latest configuration;
  • Increasing the fleet size to 16 to be able to return a full Rotary Wing Search and Rescue compliant capability to the Trenton Main Operating Base;
  • Upgrading the avionics, communications and sensor systems; and
  • Upgrading training through the purchase of a Simulator.

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 operations.

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 Value Proposition commitments to be addressed under the proposed CMLU contract, as a percentage of the total contract price, include: Defence Sector (30%) (fulfillable only by Leonardo UK Ltd.); Supplier Development (40%); Research and Development (7.5%); and Small and Medium Businesses (9%). In addition, no less than $5M will support Skills Development and Training. Proposed business activities submitted to date include GE Canada funding skills development in technical manufacturing at Niagara College and the establishment of a research chair at École Polytechnique in Montréal, for a new research and educational program in hydroelectric innovation.

The Value Proposition commitments to be addressed under the proposed CMLU Flight Simulation Training Device contract, as a percentage of the total contract price, include: Defence Sector (50%); Supplier Development (20%); Research and Development (10%); and Small and Medium Businesses (15%).

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 and CAE – Montreal, Quebec, Canada
Major subcontractors
  • IMP Aerospace & Defense – Halifax, Nova Scotia, 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 (RFP) release January 2020
 Proposal Received May 2020
Company was informed that the Government of Canada will be investigating alternative solutions                        November 2020
Company submitted an updated proposal March 2021
Canada re-engaged with industry to seek proposals December 2021
Estimated Project Approval – (Implementation) November 2022
Estimated Initial Operational Capability  2027
Estimated Full Operational Capability 2029
Estimated Effective Project Closeout 2030
Progress report and explanation of variances

Upon review of the May 2020 contractor proposal and, following additional negotiations, the determination that the proposal was unaffordable, the project investigated alternate solutions. These resulted in a prioritized capability ladder and a proposed strategy to purchase the simulator directly from CAE in Montreal. Given the importance of SAR, the Department identified potential additional funding for the project, and Canada re-engaged with Leonardo and CAE in December 2021 to reach an affordable solution.

Scope: Negotiations with the contractors are almost complete.

Schedule: The project is on schedule to obtain approval in November 2022 and sign contracts prior to 31 December 2022.

Budget: The project will be able to purchase the required scope within the capability ladder with the new budget assigned. 

Work Plan: In the Fiscal Year 2023-24, the CMLU project will achieve the following:

  • Engineering and production planning activities needed prior to starting production of the CMLU upgraded aircraft.
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)  2030-31
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
Final Aircraft Delivery 2022-23
Initial Operational Capability 2025-26
Full Operational Capability 2029-30
Effective Project Closeout 2030-31
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;
  • A fourth Kingfisher aircraft arrived in Comox, British Columbia on 7 November 2021.
  • The thirteenth Kingfisher aircraft was accepted by Canada in Spain in July 2022.

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

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

Schedule: Given the volume and complexity of the development work remaining and the global COVID-19 pandemic situation, a re-baselining of key project milestones was necessitated in February 2022. Notwithstanding the re-baseline, significant schedule risk remains.

Work Plan: In the Fiscal Year 2023-24, the project will achieve the following:

  • Formal acceptance of the Training Centre facility in Comox, British Columbia;
  • Continue with the Initial Operational Test and Evaluation of the aircraft and its systems;
  • Continue the aircraft qualification and certification; and
  • Continue with the aircrew and maintainer training to support the progressive establishment of capability at each Main Operating Base.
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
Estimated Contract Award 2022
Estimated First Aircraft Delivery 2026
Initial Operational Capability 2029-2030
Full Operational Capability 2032-2034
Effective Project Closeout 2033-2035
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. From an infrastructure perspective, this includes the design and construction of facilities directly attributable to the introduction of the new fighter fleet which includes a Fighter Squadron Facility in Cold Lake and in Bagotville. The Defence of Canada Fighter Infrastructure (DCFI) investments announced in June 2022 will address other fighter infrastructure renewal requirements. Similarly, FFCP will deliver the weapons necessary for the achievement of Full Operational Capability with the exception of the air-to-air weapons that are being acquired by the Advance Air Weapons project.

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 was since informed by analysis of the Bidders’ Life Cycle Cost Proposals during definition phase, and endorsed as part of the Project Approval process for Implementation.

Schedule: FFCP has continued to steadily progress throughout Fiscal Year (FY) 2022-23, completing the evaluation of submitted Proposals and selecting a bidder to enter into the Finalization phase of the procurement process. Upon successful completion of the Finalization phase with the F-35 Supplier Team, the project expects to enter the implementation phase in late 2022. The FFCP project is also continuing detailed design of the Fighter Squadron Facilities to support the start of construction in 2023.

Work Plan: In the Fiscal Year 2023-24, the project will achieve the following:

  • As part of the implementation phase, formalize the procurement of an initial lot of aircraft, its associated equipment, sustainment elements and weapons; work with the selected provider to advance the planning for the delivery of the aircraft, equipment, and the provision of related services and infrastructure;
  • Finalize the design of the Fighter Squadron Facilities and begin their construction;
  • Provide inputs to DCFI project design and implementation activities to ensure consideration of Future Fighter specific requirements; and
  • Advance the procurement of the required weapons.
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 is performed in Canada through two existing CF-188 contracts.
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
Project Approval (Implementation) for remaining systems in Definition  December 2021
Contract Award (Implementation)  July 2022
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;
  • 27 September 2019: Defence Procurement Strategy Governance Board Gate #1 for Phase 2 completed; 
  • 16-17 October 2019: Integration meeting with the United States Navy/Air Force to finalize Phase 2 activities, delivery schedule, and costing completed;
  • 29 November 2019: Defence Procurement Strategy Governance Board Gate #2 and #3 completed for specific Phase 2 systems; 
  • 15 May 2020: Approval (Definition) Phase 2 and (Implementation) with Expenditure Authority and Contracting Authority received;
  • 26 February 2021: All nine Letters of Offer and Acceptance from the United States Government have been accepted for acquisitions under the Foreign Military Sales program;
  • 6 October 2021: Sniper Pod enhancement contract awarded to Lockheed Martin;
  • 9 December 2021: Treasury Board approval for full Implementation with amended Expenditure Authority and Contracting Authority received;
  • 4 May 2022: Sensitive Compartmented Information Facilities contract awarded to Raymond EMC; and
  • 29 July 2022: Embedded Global Positioning System / Inertial Navigation System contract awarded to Northrop Grumman.

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 Initial Operational Capability by December 2023 and Full Operational Capability by June 2025. 

Work Plan: In the Fiscal Year 2023-24, HEP is scheduled to achieve the following:

  • Take delivery of the majority of all remaining equipment, including the APG-79(v)4 Radars, AIM-9X and AIM-120 missiles, and Sensitive Compartmented Information Facilities;
  • Continue flight testing and airworthiness certification activities for new aircraft software and equipment;
  • A minimum of six HEP2 aircraft with the new APG-79 (v) 4 Radar modified to meet Initial Operational Capability prior to 31 December 2023; and
  • Modification work completed on approximately 45 HEP aircraft.
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-188 fleet to address the fighter capability gap. A secondary objective includes relocating the Aerospace Engineering Test Establishment (AETE) from Cold Lake to the Ottawa Airport, including hangar renovations in Ottawa and the relocation of current occupants, to ensure the availability of suitable infrastructure for the expanded CF-188 fleet.
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. This project will also contribute to Program Inventory 6.2 Defence Infrastructure Construction, Recapitalization and Investment of the Departmental Results Framework, its outcome is to ensure that the departmental infrastructure portfolio is of the right size and composition.

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 aircraft 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 mission-ready aircraft are available as planned to meet training and operational readiness requirements.
  • Once the relocation of AETE from Cold Lake to the Ottawa Airport is complete, they will be contributing to various Program Inventories under Operations and Ready Forces as a strategic asset for the Department of National Defence and the Canadian Armed Forces, specifically the RCAF, by ensuring the timely implementation of new operational capabilities.
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 supplementary 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
Commencement of Hangar 14 renovations October 2022
Final Release to Service – Aircraft and Equipment October 2023
Full Operational Capability Fall 2025
Effective Project Closeout Winter 2026
Progress report and explanation of variances

The IFCP project is achieving project objectives, notably:

In the FY 2021-22, IFCP achieved 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-188 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;
  • Released 4 additional aircraft to RCAF for operations for a total of 7;
  • Issued 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.

For FY 2022-23, IFCP has achieved or is planning to have completed the following:

  • Released 3 additional aircraft to RCAF for operations for a total of 10, with up to an additional 4 aircraft to be released;
  • Completed tendering process and awarded contracts for Ottawa Hangar renovations; and
  • Completion of leased space renovation and occupancy.

Cost: Cost pressures associated with the modification of IFCP aircraft, integration of technical publications, as well as elevated construction costs in the Ottawa area, have resulted in significant budgetary pressures. All efficiencies with respect to equipment and infrastructure scope have been explored and implemented. The project will be challenged to deliver on the complete scope within budget. All project contingency funding has been released.

Schedule: The project is experiencing scheduling delays for both the equipment and infrastructure aspects. Due to cost overruns for aircraft production and delays in the implementation of modifications, the Project Office has paused work on multiple aircraft pending resolution on budgetary issues. In addition, there have been significant delays in the delivery of required spares from the Government of Australia. Infrastructure activities associated with the relocation of AETE have experienced significant delays associated with securing and modifying leased accommodations for current occupants of Hangar in Ottawa. In addition, damage to the Hangar in Ottawa caused by the May 2022 windstorm has delayed commencement of renovation activities by several months. Disruptions in the global supply chain are inducing further delays to the AETE infrastructure activities, which is having a cascading impact on the baseline schedule.

Work Plan: For Fiscal Year 2023-24, IFCP is scheduled to:

  • Release the final aircraft to the RCAF for operations;
  • Receive delivery of the remaining spare parts and equipment as they become available from Australia; and
  • Achieve full Technical and Operational Airworthiness Clearance.
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) 2028
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 2025
Initial Operational Capability 2026
Delivery of second ship 2027
Full Operational Capability 2028
Project Closeout 2028
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;
  • 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 was delivered in April 2022. The remaining three systems will be delivered by late 2023;
  • As of October 2022, there are 105 blocks structurally completed for JSS1 and all remaining blocks are under construction (123 blocks total); and
  • As of October 2022, there are five JSS2 blocks under construction.

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 pandemic affecting cost and schedule. There is a planned revision to the target cost of each ship.

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;
  • With the completion of major steelwork on the first Joint Support Ship, the construction efforts will focus on cable pulling and 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, mainly consisting of individual block steelwork; 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) June 2024
Major milestones
Project Approval (Definition) December 2012
Project Approval (Implementation) November 2014
Contract Award February 2015
Initial Operational Capability March 2023
Full Operational Capability March 2024
Project Closeout June 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.
  • Production of LRSS vehicles started in November 2020; and
  • Deliveries of Silent Watch Battery Pack started in April 2021.

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. The latest revision to the schedule was presented to, and endorsed by, the Senior Review Board on 1 December 2020.

Work Plan: In the Fiscal Year 2023-24, 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; trailers that will provide accommodation space to conduct various tasks (such as office space, command posts and workshops); and armoured protection kits for the cabs. 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. The Economic Impact Assessment is also part of the solicitation process.
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 December 2021
Bidder Selection Spring 2023
Project Approval (Implementation) Winter 2024
Contract Award (Implementation) Winter 2024
Initial Operational Capability 2027-29
Full Operational Capability 2029-31
Effective Project Closeout 2031
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, Daimler Truck AG and Marshall Aerospace Canada; 
    • Iveco Defence Vehicles S.p.A.;
    • Mack Defence LLC and ARQUUS;
    • Oshkosh Defence Canada Incorporated and Oshkosh Defence, LLC; and
    • Rheinmetall Canada Inc., Rheinmetall MAN Military Vehicles GmbH and Navistar Defence LCC.
  • Draft Request for Proposal (RFP) documents released to qualified suppliers in Phases (July 2020 through August 2021);
  • Engagements were held at each major release to solicit feedback from qualified suppliers;
  • RFP was released to qualified suppliers on 9 December 2021 and closed on 31 May 2022; and
  • Bid evaluation commenced on 1 June 2022.

Work Plan: In the Fiscal Year 2023-24, the project will achieve the following:

  • The project will complete the evaluation of the bidders’ proposals;
  • The project may conduct dialogue with the bidders to improve value of bids; and
  • The project will seek Expenditure Authority and Project Approval (Implementation) in order to award a contract to the winning bidder from the competitive solicitation process in 2024.
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) December 2023
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) June 2018
Final Delivery June 2023
Project Full Operational Capability August 2026
Effective Project Closeout August 2027
Progress report and explanation of variances

The MHP is achieving project objectives, notably as of 30 September 2022:

  • A total of 26 CH-148 Cyclone helicopters have been delivered and 25 have been accepted, all 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 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 of ensuring 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 2023-24
Major milestones
Project Approval (Definition) April 2019
Estimated Project Approval (Implementation) 2023-24
Estimated Contract Award (Implementation)  2023-24
Initial Operational Capability 2027-30
Full Operational Capability 2030-33
Project Closeout 2033-35
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 March 2022: 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; 
  • February 2022: The Request for Proposal (RFP)  was issued to qualified suppliers; and
  • August 2022: Bid evaluation started.

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 achieve Project Approval (Implementation) and Contract Award.

Work Plan: In the Fiscal Year 2023-24, the project anticipates completing negotiation and finalization activities with the bidder, and developing the complex joint submission required to achieve Project Approval (Implementation).

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 Refueling (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 To be determined
Project phase
Early Implementation June 2022    
Major milestones
Project Approval (Definition) December 2020
Project Approval (Early Implementation) June 2022
Estimated Project Approval (Implementation) 2023
Estimated Contract Approval (Implementation) 2023
Initial Operational Capability 2028-29
Full Operational Capability 2030-31
Project Closeout 2030-31
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;
  • September 2021: First version of Draft Contract shared with Qualified Suppliers;
  • November 2021: Directed Request for Proposal (RFP) to source list suppliers for used A330-200 aircraft;
  • May 2022: RFP for acquisition of STTC multi-role aircraft released to Qualified Supplier;
  • June 2022: Contracting and Expenditure Authority (Early Implementation) achieved; and
  •  June 2022: Contract award for acquisition of two used A330-200 aircraft.

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 the Fiscal Year 2023-24, the project will achieve the following

  • Finalize contractual documentation through engagement with the Qualified Supplier on requirements;
  • Complete proposal negotiations with the Qualified Supplier and prepare for contract award following approvals;
  • Operationalize two used CC330 aircraft to serve the RCAF in a strategic airlift role; and
  • Continue engagement with industry partners that will advance development of requirements and the issuance of an RFP for long-term In-Service Support of the STTC fleet
Project name VICTORIA CLASS MODERNIZATION
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
  • Estimated Project Approval (Implementation) Galley Improvement – September 2023
  • Estimated Contract Award (Implementation) Galley Improvement – December 2023
  • Estimated Project Approval (Implementation) Flank Array Modernization – December 2023
  • Estimated Contract Award (Implementation) Flank Array Modernization – March 2024
  • Estimated Project Approval (Implementation) Periscope Modernization – February 2024
  • Estimated Contract Award (Implementation) Periscope Modernization – May 2024
  • Estimated First Delivery (Pre-implementation)                                2026
  • Initial Operational Capability                                                               2028
  • Full Operational Capability                                                                   2033
  • Project Closeout                                                                                      2034
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;
  • March 2021: Defence Procurement Strategy Governance Board Gate #1 for Periscope Modernization Project and Flank Array Modernization Project completed;
  • January 2022: The first projects under the Obsolescence and Maintenance Mitigation Initiative entered Implementation; and
  • March 2022: Two projects under the Obsolescence and Maintenance Mitigation Initiative entered Implementation.

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 2028 and Full Operational Capability is scheduled for 2033.

Work Plan: In the Fiscal Year 2023-24, the VCM project will achieve the following:

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

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2023-03-09