Status report on Transformational and Major Crown Projects
The information contained herein is accurate and reliable as of October 2022
On this page
- ARCTIC AND OFFSHORE PATROL SHIPS
- ARMOURED COMBAT SUPPORT VEHICLE PROJECT
- AURORA INCREMENTAL MODERNIZATION PROJECT
- CANADIAN SURFACE COMBATANT PROJECT
- CORMORANT MID-LIFE UPGRADE PROJECT
- FIXED-WING SEARCH AND RESCUE AIRCRAFT REPLACEMENT PROJECT
- FUTURE FIGHTER CAPABILITY PROJECT
- HORNET EXTENSION PROJECT
- INTERIM FIGHTER CAPABILITY PROJECT
- JOINT SUPPORT SHIP
- LIGHT ARMOURED VEHICLE RECONNAISSANCE SURVEILLANCE SYSTEM
- LOGISTICS VEHICLE MODERNIZATION PROJECT
- MARITIME HELICOPTER PROJECT
- REMOTELY PILOTED AIRCRAFT SYSTEM
- STRATEGIC TANKER TRANSPORT CAPABILITY
- VICTORIA CLASS MODERNIZATION
| 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:
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:
|
||||||||||||||||||||||||||
| Industrial benefits | Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. |
||||||||||||||||||||||||||
| 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: In-Service Support: Thales Canada Inc. and Thales Australia Inc. – Ottawa, Ontario, Canada. |
||||||||||||||||||||||||||
| Major subcontractors |
|
||||||||||||||||||||||||||
| Project phase |
|
||||||||||||||||||||||||||
| Major milestones |
|
||||||||||||||||||||||||||
| Progress report and explanation of variances | The AOPS project is achieving project objectives, notably:
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:
|
| 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:
|
||||||||||||||||
| 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 |
|
||||||||||||||||
| Project phase |
|
||||||||||||||||
| Major milestones |
|
||||||||||||||||
| Progress report and explanation of variances | The ACSV is achieving project objectives, notably:
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:
|
| 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:
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:
|
||||||||||||||||||
| 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) |
|
||||||||||||||||||
| Major subcontractors | CAE - Montreal, Quebec, Canada | ||||||||||||||||||
| Project phase |
|
||||||||||||||||||
| Major milestones | AIMP:
|
||||||||||||||||||
| Progress report and explanation of variances | The AIMP project has achieved several project objectives, notably:
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:
|
| 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:
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:
|
||||||||||||||||||||||||
| 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 |
|
||||||||||||||||||||||||
| Project phase |
|
||||||||||||||||||||||||
| Major milestones |
|
||||||||||||||||||||||||
| Progress report and explanation of variances | The CSC project is achieving project objectives, notably:
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:
|
| 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: 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:
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 |
|
||||||||||||||||||||
| Project phase |
|
||||||||||||||||||||
| Major milestones |
|
||||||||||||||||||||
| 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:
|
| 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:
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:
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 |
|
||||||||||||||||||
| Project phase |
|
||||||||||||||||||
| Major milestones |
|
||||||||||||||||||
| Progress report and explanation of variances | The FWSAR project is achieving project objectives, notably:
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:
|
| 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:
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:
|
||||||||||||||
| 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 |
|
||||||||||||||
| Major milestones |
|
||||||||||||||
| 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:
|
| 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:
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):
|
||||||||||||||||
| 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 |
|
||||||||||||||||
| Project phase |
|
||||||||||||||||
| Major milestones |
|
||||||||||||||||
| Progress report and explanation of variances | The HEP project is achieving project objectives, notably:
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:
|
| 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:
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):
|
||||||||||||||||||||||
| 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 |
|
||||||||||||||||||||||
| Major milestones |
|
||||||||||||||||||||||
| Progress report and explanation of variances | The IFCP project is achieving project objectives, notably: In the FY 2021-22, IFCP achieved the following:
For FY 2022-23, IFCP has achieved or is planning to have completed the following:
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:
|
| 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:
|
||||||||||||||||||||||||||
| 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 |
|
||||||||||||||||||||||||||
| Project phase |
|
||||||||||||||||||||||||||
| Major milestones |
|
||||||||||||||||||||||||||
| Progress report and explanation of variances | The JSS project is achieving project objectives, notably:
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. Work Plan: In FY 2022-23, the Joint Support Ship project will achieve the following:
|
| 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:
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:
|
||||||||||||
| 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 |
|
||||||||||||
| Major milestones |
|
||||||||||||
| Progress report and explanation of variances | The LAV Reconnaissance Surveillance System project has achieved project objectives, notably:
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:
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:
|
||||||||||||||||
| 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 |
|
||||||||||||||||
| Major milestones |
|
||||||||||||||||
| Progress report and explanation of variances | The LVM Project is achieving Definition phase project objectives, notably:
Work Plan: In the Fiscal Year 2023-24, the project will achieve the following:
|
| 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:
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:
|
||||||||||||||||||||
| 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 |
|
||||||||||||||||||||
| Project phase |
|
||||||||||||||||||||
| Major milestones |
|
||||||||||||||||||||
| Progress report and explanation of variances | The MHP is achieving project objectives, notably as of 30 September 2022:
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:
|
| 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:
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.
|
||||||||||||
| 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 |
|
||||||||||||
| Project phase |
|
||||||||||||
| Major milestones |
|
||||||||||||
| Progress report and explanation of variances | The project RPAS is achieving project objectives, notably:
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:
The STTC project will deliver against the core responsibilities of the Department of National Defence and the Canadian Armed Forces:
|
||||||||||||||
| 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 |
|
||||||||||||||
| Major milestones |
|
||||||||||||||
| Progress report and explanation of variances | Scope: The project is on track to deliver the 2020 approved scope, notably:
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
|
| 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:
|
| 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 |
|
| Project phase |
|
| Major milestones |
|
| Progress report and explanation of variances | The VCM project is achieving project objectives, notably:
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:
|