Procurement of capabilities

On this page

• Description
• Quality of life impacts
• Results and targets
• Plans to achieve results
• Key risks
• Snapshot of planned resources in 2024-25
• Related government priorities
• Program inventory

Description

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

Quality of life impacts

This core responsibility contributes to the "Good Governance" domain of the Quality of Life Framework for Canada and, more specifically, "Democracy and Institutions," through all of the activities mentioned in the core responsibility description.

For more information, please refer to the Quality of Life Hub and the Quality of Life Framework for Canada.

Results and targets

The following tables show, for each departmental result related to Procurement of Capabilities, the indicators, the results from the three most recently reported fiscal years, the targets and target dates approved in 2024–25.

The financial, human resources and performance information for the DND/CAF program inventory is available on GC InfoBase.

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Plans to achieve results

Defence procurement is streamlined

Defence continues to develop a competency-based approach to project management through means established over previous years. To compliment the existing steps taken to manage the lengthy acquisition process, Defence will continue to grow and professionalize the procurement workforce. Areas of focus for FY 2024-25 include:

• Institutionalization of the Project Manager Competency Development program which provides project managers with development and learning opportunities through a defined framework for accreditation;
• Continuing to grow the Purchasing and Supply Group (PG) Academy's Fundamental Program aimed at recruiting and training 40 entry level procurement specialists per year;
• Relaunching the PG Officer Development Program with a goal of developing high potential future leaders;
• Conducting an options analysis and developing the supervisor and manager development programs for senior level procurement specialists; and
• Support the PSPC-led Defence Procurement Review to ensure DND/CAF capability requirements and acquisition are streamlined and achievable.

Defence equipment acquisition is well-managed

Key equipment acquisition projects in FY 2024-25 include:

• Canadian Surface Combatant: Design and production engineering of the Canadian Surface Combatant will progress through FY 2024-25, with Low-Rate Production scheduled to begin in mid-2024. Work will also continue on the design and construction of a Land Based Test Facility to be located at Hartlen Point, Nova Scotia;
• Arctic and Offshore Patrol Ship: In late 2024 the future HMCS Frédérick Rolette, is anticipated to be delivered. Construction of the 6th ship, the future HMC Ship Robert Hampton Gray continues;
• Joint Support Ship : The first Joint Support Ship is scheduled to be launched in late 2024 and construction of the second ship will progress in FY 2024-25. The fourth and final sea-to-shore connector system that will be used in conjunction with Joint Support Ship to deliver cargo and personnel ashore in harsh or damaged ports where the ships may not have direct access to berthing facilities, is scheduled for delivery in early FY 2024-2025;
• Fixed-wing Search and Rescue Aircraft Replacement Project: The project will advance with the initial operational test and evaluation of the aircraft and its systems. Certification and Qualification testing will progress towards completion. Training will also continue for the aircrew and maintainers to support the progressive establishment of capability at each main operating base;
• Future Fighter Capability Project: The project will advance to the procurement of an initial tranche of F-35 advanced fighter aircraft, associated equipment, sustainment and weapons, and the planning for their delivery. The planning will be finalized for pilot training at Luke Air Force Base in Maricopa County, Arizona. Initially some aircraft will be located at that F-35A Pilot Training Center while DND completes the necessary infrastructure to support aircraft delivery in Canada;
• Remotely Piloted Aircraft System (RPAS): The project is in implementation phase and will be in the first year of the RPAS contract. Early contract milestones include System Requirements Review and Preliminary Design Review;
• Strategic Tanker Transport Capability: The project will advance all development and design elements associated with the project infrastructure requirements, work through the systems engineering processes leading to the design reviews of CC-330 Husky aircraft and provide In-Service Support (ISS) to two used CC-330 aircraft that will be serving the RCAF in a strategic airlift role;
• Logistics Vehicle Modernization Project: The project will seek to award Acquisition and Long-Term ISS Contracts as part of the competitive solicitation processes. After contract award, the project will undertake design review work with the Contractor;
• Armoured Combat Support Vehicle: The project will deliver the first Command Post to the Canadian Army. The project will continue with the ongoing deliveries of the Ambulance and Troop Cargo Vehicles. These vehicles will be progressively fielded to the Canadian Army with Initial Operating Capability scheduled for 2024;
• Light Armoured Vehicle Reconnaissance Surveillance System: The project will focus on activities supporting delivery of vehicles, initial Cadre Training and initial provisioning of spare parts. 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;
• CP-140 Aurora Incremental Modernization Project: The project is scheduled to deliver the last 3 Block IV aircraft; complete the flight test program; and achieve Full Operational Capability;
• CF-18 Hornet Extension Project: The project is scheduled to take delivery of the majority of remaining equipment, including APG-79(v)4 Radars, AIM-9X missiles, Sensitive Compartmented Information Facilities; Night Vision Cueing Displays, Satellite Communication Antennas, Data Transfer Units and upgraded Sniper pods. It will also further flight testing and airworthiness certification activities for new aircraft software and equipment; and complete modification work on all 88 HEP aircraft;
• CH-148 Cyclone Procurement Project: Through the Maritime Helicopter Project, Defence expects to achieve the following:
  • Delivery and acceptance of the final Block 2 CH-148s;
  • Completion of the Block 2 Integrated Mission System qualification;
  • Upgrading the training devices to the Capability Release 2.1 configuration; and
  • Completing the operational support readiness verification.
• Cormorant Mid-Life Upgrade: Engineering and production planning activities will be ongoing and the start of production of the first aircraft in May 2024;
• Victoria-class Modernization: The Flank Array Modernization Project and the Periscope Modernization Project are scheduled to enter the Implementation Phase. The implementation of habitability and quality of life upgrades, such as improvements to sleeping quarters, washroom facilities, and galleys, will continue on HMCS Victoria;
• The Light Force Enhancement Project will deliver 108 light vehicles to Canadian Army Units deployed on Operation REASSURANCE in Latvia. Defence is also prioritizing its Portable Anti-armour Missile Systems, Counter-Uncrewed Air Systems, Short Range Air Defence Systems, Light Tactical Vehicles and Brigade Computer Information Systems projects;
• The Special Operations Capability and Recapitalization Project (SCARP) will be bundling multiple capital projects which are currently scheduled to close out in 2027. DND/CAF will pursue timely delivery and relevant capabilities in the ever-evolving operational environment while being poised to capitalize on new technologies fitting within SCARP's scope; and
• The CAF NORAD Continental Defence Modernization Office and key partners will progress NORAD modernization projects through the Identification and Options Analysis phases of project approval to meet aggressive timelines. The priority will be the Arctic-Over-The-Horizon-Radar project programmatic path to synchronize acquisition with U.S. implementation strategies and to ensure that no gap exists in planned coverage for a binational integrated NORAD OTHR system. Accelerated project timelines will be sought for NORAD Cloud Base Command and Control and Crossbow initiatives to synchronize with NORAD and U.S. timelines. The success of delivering NORAD Modernization initiatives will be highly dependent on filling project positions and the essential staff required to implement the projects.

The department has identified four capability portfolios on which focused efforts will ensure the maintenance of high readiness and relevancy. These include:

• C4ISR to maintain decision dominance over adversaries, either directly, or through support to partners and allies;
• Soldier Systems to protect, enable, and enhance the SOF Professional;
• Chemical, Biological, Radiological, Nuclear, explosives (CBRNe) to prevent or mitigate domestic and expeditionary CBRNe incidents, and provide high fidelity information to understand, exploit and prevail in CBRNe environments; and
• Mobility to safely insert and extract the Special Operations Forces (SOF) Professional within the operating environment.

More information on equipment acquisition projects in FY 2024-25 can be found on the Defence equipment purchases and upgrades website.

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Defence information technology acquisition is well-managed

DND/CAF will continue to deliver on key information management, information technology and space projects as outlined in SSE. Key initiatives for FY 2024-25 will include:

• Stabilize, optimize and support critical command and control applications and systems;
• Complete the implementation of Interim Quantum Safe Cryptographic Solutions;
• Complete the modernization of Base Emergency Radio Communication Systems for first responders (Trunked Radio Systems);
• Provide a wide range of in-service strategic, computer information system and strategic communication services;
• High and Low Frequency Radio Communication Systems;
• Line of Sites Radio Communication Systems such as Air Ground Air, Air Traffic Management and Canadian Air Defence Radio System;
• Provide assured and timely in-service support to assigned critical, high-priority strategic and operational joint capabilities and services;
• Bandwidth Constrained Services to Canada and NATO;
• Life Cycle Material Manager / Technical Authority for the following:
  • Polar Epsilon 1 and 2 – Earth observation for geospatial intelligence and Naval Ship Detection;
  • Search and Rescue Satellites Local User Terminals and the Canadian Mission Control Centre, Canadian Technical Evaluation Centre, SAR; and
  • Sapphire – Space Situational Awareness.
• Implement an integrated capability management approach with relevant capital projects and project delivery activities in the domains of space, cyber and joint capabilities;
  • Begin the transition between the legacy Electronic Key Management System to the new Government of Canada (GoC) Key Management Infrastructure (KMI); and
  • An "integrated" approach to capability management and delivery occurs as follows:
    • Integrated project teams are established with operational representation and inclusion, and other relevant stakeholders directly involved as required; and
    • Existing expertise from ISS teams is embedded in the project offices to lend expertise and then smoothly transition projects to ISS.
• Collaborate with other capability delivery organizations, within and outside of DND to ensure maximized business and operational benefits;
• Collaborate with CSE to progress Cryptographic Modernization Programs;
• Participate in the interdepartmental and/or multinational forums to help establish priorities based on joint operational benefits (ex: RADARSAT Constellation Mission Interdepartmental Operations Committee, Space Surveillance Network (SSN) Metrics Integrated Process Team);
• Collaborate with SATCOM, ISS, and Innovation, Science and Economic Development Canada to support Telesat in mitigating the impact on SATCOM service provided to northern and arctic communities and customers (such as DND, SSC and Environment and Climate Change Canada) when a key satellite had to be urgently repaired; and
• Collaborate with other capability delivery organizations to align and avoid duplication of effort by:
  • Leveraging expertise from partner organizations such as Canadian Space Agency (CSA), both for delivery and operations; and
  • Partnering with ENG Horizons to better equip communities of engineers with the tools and knowledge to deliver better outcomes.

Defence will deliver full operational capability and deliver the following projects and initiatives in FY 2024-25:

• Digital Biometrics Collection and Identity Management;
• Complete the modernization of Base Emergency Radio Communication Systems for first responders (Trunked Radio Systems); and
• Interim Quantum Safe Cryptographic capabilities.

Defence will deliver initial operational capability allowing validation of the system with clients for the following projects and initiatives in FY 2024-25:

• Search and Rescue Mission Management System;
• Consolidation and augmentation of Top Secret defence intelligence community domains into a single network. Improvements to intelligence capabilities on the Department's information networks processing highly classified defence intelligence;
• Broadening of satellite communication capabilities to support strategic and operational demands in Canada and abroad;
• Biometrics capability;
• Improved cryptographic and key management infrastructure capabilities, such as GoC KMI for DND;
• Modernization of secure radio capabilities;
  • Complete the RCAF and RCN Land Based Sites Crypto Modernization across Canada;
  • Complete Secure Radios upgrade on the Aurora;
  • Complete Engineering and Integration work, and start installation of Secure Radios on Halifax Class ships; and
  • Complete delivery of High Frequency radios and ancillaries;
• Electronic warfare system.

Supplies are available and well-managed

Defence will work to enhance materiel accountability by implementing modern, effective inventory controls, supply chain management and inventory valuation by:

• Using data analytics and the Defence Supply Chain Performance Management Framework to inform decision making, improve materiel readiness, optimize costs, and help prioritize materiel management tasks that will support CAF readiness;
• Continuing to modernize the business processes to make substantive and enduring improvements to the management of materiel and continuing to invest in the development and implementation of defence supply chain analytic tools for supply chain practitioners;
• Continually assessing the production and availability of required supplies as industry adapts to implementing new processes to support CAF readiness;
• Continuing to work with partners to evolve the way the GoC approaches and manages Defence sustainment and mitigate supply chain challenges caused by less predictable geopolitical factors throughout the world, the rate of inflation affecting nations globally, and the evolving defence and security environment;
• Applying the OSM Strategy, better aligning the Institutional Sustainment and Operational Support aspects of the Sustainment Enterprise. This improvement will align and strengthen DND/CAF supply chain performance and management; and
• Modernize the Defence Resource Management Information System to form a modernized Defence Supply Chain core where Defence can expect improved materiel accountability, cost savings, resilience, and improved materiel readiness which directly impacts the ability to conduct concurrent ops by maximizing the use of existing resources. Specifically, through three key projects:
  • Modernization and Integration of Sustainment and Logistics (MISL)
  • Automatic Identification Technology; and
  • Materiel Planning and Forecasting.

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Key risks

There are many risks associated with the Procurement of Capabilities core responsibility. Four of the key risks are articulated below:

Military Strength – There is a risk that Defence will not have the right military personnel, in the right numbers, at the right place, and at the right time.

Materiel Procurement – There is a risk that DND/CAF may have difficulty procuring materiel capabilities at the right level to support operations.

Information Technology Procurement – There is a risk that DND/CAF may have difficulty procuring information technology capabilities at the right level to support operations.

Materiel Maintenance – There is a risk that DND/CAF may have difficulty maintaining its materiel capabilities at the right level to support operations.

As the Defence Departmental Results Framework reflects a chain of delivery from conceiving of the required armed forces, to developing them and then executing operations, the activities to mitigate the risks to the Procurement of Capabilities core responsibility can also be found in other core responsibilities which deliver building blocks that enable the results of Procurement of Capabilities.

Snapshot of planned resources in 2024–25

• Planned spending: $6,245,203,819
• Planned full-time resources: 2,714

Related government priorities

Gender-based analysis plus

Defence will continue to build the capacity to conduct, apply and incorporate GBA Plus findings into decision making for equipment acquisition and materiel support activities, in alignment with the implementation of DND/CAF's recently released Culture Evolution Strategy.

As per the Project Approval Directive, all projects are subject to a formal GBA Plus, which is incorporated into all project documentation and work, including business case analyses, departmental governance, and Treasury Board and ministerial submissions. This ensures that issues of gender equality, intersectionality, diversity and human rights, and unequal benefit, harm or exclusion, are appropriately identified and addressed. The analysis is iterative during the full length of the project, from inception through to project closeout, including monitoring of impact by intersectional identity factors and any evaluation or review of the project.

For CA procurement projects, data is gathered according to the needs of individual projects or initiatives to conduct the GBA Plus and for monitoring impacts by gender and diversity. This data collection may range from formal surveys or scientific research to informal ad-hoc feedback from stakeholders. The Solider Operational Clothing and Equipment Modernization initiative aims to deliver an integrated suite of modern operational clothing, personal protective equipment, and load carriage equipment that focuses on GBA Plus and improving performance and comfort of the soldier. Sustained efforts aim to mature the departmental procurement process to enable definition and implementation activities. Defence will test the flexibility of this approach with additional procurements of personal protective equipment in support to the operation efforts.

More information on GBA Plus can be found in the GBA Plus Supplementary Information Tables section of this report.

United Nations 2030 agenda for sustainable development and the Un sustainable development goals

As directed by the Policy on Green Procurement and SSE, Defence procurement will continue to adhere to Canadian environmental standards and integrate environmental performance considerations into procurement decision making processes where value for money is demonstrated. In support of the GoC net-zero emissions by 2050 objective and consistent with the departmental objectives set by the Defence Climate and Sustainability Strategy (DCSS), procurement of new Defence capabilities will seek energy and operational efficiency and ensure the primacy of defence capability requirements.

More information on The Department of National Defence's contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the FSDS can be found in the Departmental Sustainable Development Strategy.

Indigenous relations

In the process of delivering new capabilities, the DND/CAF has a responsibility to consult with, establish, nurture and maintain a positive relationship with Indigenous partners, its suppliers and procurement communities, as well as provincial and territorial partners, to meet treaty obligations and Indigenous policy commitments (including alignment with UNDRIP and the Inuit Nunangat Policy), as well as to include northern provincial and territorial governments in the decision making discussions. This will include identifying opportunities for Indigenous businesses and benefits for local communities. In accordance with Ministerial mandates from the minister of Public Services and Procurement Canada and the minister of Indigenous Services Canada, Defence is aiming to achieve the minimum five percent target (expected to be determined by contractual value) for Indigenous participation in various procurement activities and to meet procurement treaty obligations.

Program inventory

Procurement of Capabilities is supported by the following programs in the program inventory:

• Maritime Equipment Acquisition;
• Land Equipment Acquisition;
• Aerospace Equipment Acquisition;
• Defence Information Technology Systems Acquisition, Design and Delivery; and
• Defence Materiel Management.

Supporting information on planned expenditures, human resources, and results related the DND/CAF program inventory is available on GC InfoBase.

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