Status Report on transformational and major Capital projects

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.

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

The AOPS project has the following project outcomes:

• Acquire six Arctic and Offshore Patrol Ships for the Royal Canadian Navy;
• Deliver associated jetty infrastructures in Halifax;
• Contribute funding to the associated jetty infrastructure project in Esquimalt;
• Deliver a berthing and fueling 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 contribute to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the RCN:

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

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.

Department of National Defence (DND) for AOPS 1-6
Department of Fisheries and Oceans (DFO), Canadian Coast Guard (CCG) for AOPS 7-8

Public Services and Procurement Canada (PSPC)

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.

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.

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 – Saint-Laurent, Quebec, Canada
DSEC – Busan, Korea

Implementation – December 2014
Closeout (expected) – 2027

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
Delivery of Second Ship – July 2021
Delivery of Third Ship – September 2022
Revised Project Approval (Implementation) – November 2022
Initial Operational Capability – December 2022
Delivery of Fourth Ship – August 2023
Full Operational Capability – 2026
Project Closeout – 2027

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, 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 Canada in July 2020;
• The jetty infrastructure project in Halifax was completed in July 2019, with the exception of a rail crane whereby procurement is in progress, 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 Canada in July 2021;
• The AOPS project has contributed to the full amount of its capped financial contribution to the jetty infrastructure project in Esquimalt;
• With the official cutting of steel, the sixth ship in the class, the future HMCS Robert Hampton Gray entered full production in August 2022;
• The future HMCS Max Bernays was delivered to Canada in September 2022;
• With the official cutting of steel, the seventh ship, first of the AOPS variants for the Canadian Coast Guard, entered full production in August 2023; and
• The future HMCS William Hall was delivered to Canada in August 2023.

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.

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.

The COVID-19 pandemic and associated restrictions impacted the project's schedule and cost estimates. Amended project approval and expenditure authorities were approved in November 2022, providing increased budget to complete the building of the sixth ship, procure spare parts, procure a jetty rail crane, and extend the production period by a minimum of 26 months. The amended budget and schedule addressed the increased costs and delays due in part to COVID-19 impacts, as well as other program delays and cost increases such as global supply-chain issues.

Work Plan: The AOPS Project will achieve the following in fiscal year 2024-2025:

• Construction of the fifth and sixth ships, the future HMCS Frédérick Rolette and the future HMCS Robert Hampton Gray, will continue;
• The fifth ship, the future HMCS Frédérick Rolette, is anticipated to be delivered in late 2024; and
• The Project Management Office will continue to provide support to CCG as it relates to the construction of their two Arctic and Offshore Patrol Ship variants.

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.

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

The ACSV Project will procure 360 Armoured Combat Support Vehicles.

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

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

The Industrial and Technological Benefits (ITB) Policy was applied to the ACSV Implementation Contract. Total ITB obligation is $1,775M.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

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

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

Implementation August – 2019

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;
• Reliability, Availability, Maintainability and Durability Testing Phase 1 was completed in May 2022;
• Critical Design Review of Electronic Warfare variant was achieved in June 2022;
• Critical Design Review of Type 3 Common and Fitter Cargo Vehicle was achieved in March 2023; and
• Critical Design Review of Mobile Repair Team variant was achieved in August 2023.

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 due to 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 fiscal year 2024-25, the project is scheduled to:

• Deliver the Ambulance capability to the Canadian Army;
• Deliver Initial Cadre Training to the Canadian Army on the first three variants;
• Progress qualification testing of the Electronic Warfare variant;
• Complete the design of the remaining five variants; and
• Conduct the next phase of Reliability, Availability, Maintainability and Durability testing.

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.

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 force elements meeting Force Posture and Readiness requirements remain ready; and
• Ensure fleets are available as planned to meet training and operational readiness requirements.

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

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

General Dynamics Mission Systems – Canada – Ottawa, Ontario, Canada
IMP Aerospace – Halifax, Nova Scotia, Canada

CAE – Montreal, Quebec, Canada

AIMP Block IV (Implementation) – June 2015
Closeout (expected) – 2024

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 2024
Block IV Full Operational Capability – Summer 2024
Project Closeout – Fall 2024

The AIMP project has achieved several project objectives, notably:

• Blocks I, II, and III are complete and have delivered a modernized CP-140 Intelligence, Surveillance, and Reconnaissance and Anti-Submarine Warfare capability to the Royal Canadian Air Force; and
• Block IV is unfolding, with aircraft modifications work underway at IMP Aerospace until 2024. Eight aircraft have been completed, and compliance has been achieved on 85% of the Crown Requirement Specifications.

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 Initial Operational Capability and Final Operational Capability dates have been delayed from the 2015 approved schedule.

Work Plan: In fiscal year 2024-25, the project is scheduled to:

• Deliver the last two Block IV aircraft;
• Complete the flight test program;
• Complete compliance assessment on the remaining 15% of the Crown Requirement Specifications;
• Achieve Full Operational Capability; and
• Complete Project Closeout.

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

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

The CSC project has the following project outcomes:

• Recapitalize the capability currently found in Canada's frigates and 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 contribute 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:

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

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.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

Irving Shipbuilding Inc., Halifax, Nova Scotia, Canada

Lockheed Martin Canada (Design Team Lead and Combat Systems Integrator)
BAE Systems (Warship Designer)

Definition – June 2012
Implementation (expected) – 2024

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
Revised Project Approval (Definition Phase 2) – December 2022
Project Approval (Implementation) – 2024
Implementation Contract Award – 2024
Cut Steel (Low Rate Production) – 2024
Full Rate Production – 2025
First Delivery – 2030-33

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 summer 2016, Canadian Industry and the pre-qualified short listed respondents were engaged on the draft Request for Proposals (RFP). Irving Shipbuilding Inc. released the RFP on 27 October 2016;
• Canada's Defence Policy Strong, Secure, Engaged was released on 7 June 2017, citing the procurement of 15 Canadian Surface Combatants with an updated overall project budget;
• November 30, 2017: CSC RFP closed and initial bids received;
• December 4, 2017: Bid evaluation process commenced;
• October 16, 2018: A preferred bidder was identified following completion of bid evaluation, and the preferred bidder was invited to participate in the next step of the competitive process, consisting of a negotiations and due diligence period;
• February 7, 2019: Lockheed Martin Canada was identified as the Selected Bidder to provide the design and design team for the CSC, with a design based on the United Kingdom's Type 26. Canada awarded a Definition Contract to Irving Shipbuilding Inc., who in turn awarded a Definition Subcontract to Lockheed Martin Canada;
• November 5, 2019: The project substantially completed the Requirements Reconciliation Phase and commenced Preliminary Design;
• September 30, 2021: A contract was awarded to Poole Construction Company Limited (PCL) for the Design and Build of a Land Based Test Facility to be built at Hartlen Point in Nova Scotia;
• December 10, 2021: The project entered Preliminary Design Review; and
• December 16, 2022: Completed Preliminary Design Review and entered into Functional Design.

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, the government announced the approval of the refined procurement strategy on 13 June 2016. The project remains on track to achieve the scope as approved in May 2016.

Cost: The 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 sub-contractors. A Project Implementation Proposal is expected from the shipyard in fall 2023 and it will inform updated cost reviews in support of the project seeking to enter into the Implementation Phase in early 2025.

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 2024. 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. Canada and the shipyard have established an intent to deliver 15 CSC ships by 2050.

Work Plan: In fiscal year 2024-25, the CSC project will achieve the following:

• Continue to progress Functional Design progressing to Critical Design Reviews;
• Commence Low Rate Production activities on ship 1;
• Commence construction of the Land Based Test Facility at Hartlen Point, Nova Scotia;
• Prepare to seek Project Implementation Authority in fall 2024; and
• Finalize the Project Implementation Contract and contract negotiations with Irving Shipyard Incorporated.

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).

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. Also, the project must ensure that the rotary wing search and rescue capability is maintained throughout implementation.

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.

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%).

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED)

Leonardo MW Ltd – Yeovil, UK and CAE – Montreal, Quebec, Canada

IMP Aerospace & Defense – Halifax, Nova Scotia, Canada
GE Canada Aviation – Ottawa, Ontario, Canada
Rockwell Collins Canada – Ottawa, Ontario, Canada

Implementation – November 2022

Project Approval (Definition) – February 2019
Request for Proposal 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
Project Approval – (Implementation) – November 2022
Estimated Initial Operational Capability – 2027
Estimated Full Operational Capability – 2029
Estimated Effective Project Closeout – 2030

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. An agreement was eventually reached, and the CMLU project is achieving project objectives, notably:

• December 22, 2022: Canada awarded an Implementation Contract to Leonardo MW Ltd and to CAE;
• June 23, 2023: Completed Helicopter Preliminary Design Review (PDR);
• September 29, 2023: Completed the Simulator System Requirements Review; and
• The Aircraft Critical Design Review and Simulator Preliminary Design Review are expected to be completed in January and February 2024 respectively.

Schedule: The project is on schedule to achieve all of its objectives, including start of production in 2024, first helicopter flight in 2025, and first delivery in 2026.

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

Work Plan: In Fiscal Year 2024-25, the CMLU project will achieve the following:

• Engineering and production planning activities needed prior to starting production of the CMLU upgraded aircraft in May 2024.

The objective of the Fixed-Wing Search and Rescue Aircraft Replacement (FWSAR) project is to replace the capability provided by the legacy 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).

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.

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.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

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

PAL Aerospace – St. John's, Newfoundland, Canada
CAE – Montreal, Quebec, Canada
Pratt & Whitney Canada – Longueuil, Quebec, Canada
L-3 WESCAM – Burlington, Ontario, Canada

Implementation – December 2016
Project Closeout (expected) – 2030-31

Expenditure Authority (EA) – Definition phase – March 2012
Project Approval (Definition) and Amended EA – March 2015
Project Approval (Implementation) – December 2016
Contract Award – December 2016
First Aircraft Delivery – December 2019
Final Aircraft Delivery – 2024-25
Initial Operational Capability – 2025-26
Full Operational Capability – 2029-30
Effective Project Closeout – 2030-31

The FWSAR project is achieving project objectives, notably:

• The FWSAR project received Project Approval for the Definition Phase in spring 2015;
• The Request for Proposal was released on 31 March 2015;
• The bid evaluation was completed during summer 2016;
• A contract was awarded to Airbus Defence and Space on 1 December 2016;
• The groundbreaking for the Comox Training Centre occurred in January 2018;
• The assembly of the first CC-295 aircraft began in September 2018;
• During Fiscal Year (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 fifteenth aircraft was accepted by Canada in Spain in December 2022;
• A fifth Kingfisher aircraft arrived in Comox, British Columbia in March 2023;
• The Initial Aircrew and Maintenance training was completed in May 2023; and
• Initial Operation Test and Evaluation began in May 2023.

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 fiscal year 2024-25, the project is scheduled to:

• Continue with the Initial Operational Test and Evaluation of the aircraft and its systems;
• Continue the aircraft qualification and certification process; and
• Continue with the aircrew and maintainer training to support the progressive establishment of capability at each Main Operating Base.

The objective of the Future Fighter Capability Project (FFCP) is to successfully acquire and transition into service 88 F-35 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.

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:

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

Canada implemented an economic benefits approach in the competitive process that ensured all bidders could put forward economic benefits proposals that ensure opportunities for Canadian industry.

Lockheed Martin (F-35 airframe) and Pratt & Whitney (F-35 engine) signed Economic Benefits Arrangements (EBA) with Canada that will secure economic outcomes for the Canadian aerospace and defence sectors. The EBAs will help ensure that the production contracts that Canadian industry has secured through Canada's participation in the Joint Strike Fighter Program will continue into the future. Canadian industry will also have significant opportunities on the sustainment of the Canadian fleet. Moreover, Canada will be well positioned for maintenance opportunities on the global fleet.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

The U.S. Government and Lockheed Martin Corporation with Pratt & Whitney

Northrop Grumman
BAE Systems
Raytheon Technologies

Implementation December – 2022

Project Approval (Definition) – November 2017
Contract Approval, Amended Project Approval and Expenditure Authority (Implementation) – December 2022*
Estimated First Aircraft Delivery – 2026
Initial Operational Capability – 2029-30
Full Operational Capability – 2032-34
Effective Project Closeout – 2033-35

* The December 2022 approval was for the acquisition of an initial set of F-35A aircraft and associated equipment and services, initial weapons, as well as the construction of the Fighter Squadron Facilities. Additional approvals will be sought to address the remainder of the scope to achieve Full Operational Capability.

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

Cost: The project cost estimate continues to align with the $19 billion in acquisition funding that was established in Strong, Secure, Engaged: Canada's Defence Policy. This includes the aircraft, associated equipment, sustainment set-up and services, as well as the construction of Fighter Squadron Facilities (FSF) in Bagotville and Cold Lake.

Schedule: FFCP has continued to steadily progress project activities throughout fiscal year 2023-24. Following the conclusion of the competitive process in FY 22/23, Contract Approval and the start of the Implementation Phase of the project occurred in December 2022. The schedule for future implementation milestones reflect the anticipated aircraft delivery schedule and the timelines to build the required facilities, to train pilots and technicians, and to set up the necessary sustainment capabilities.

Work Plan: In fiscal year 2024-25, the project is scheduled to:

• 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 Defence of Canada Fighter Infrastructure (DCFI) project design and implementation activities to ensure consideration of Future Fighter-specific requirements; and
• Advance the procurement of the required weapons.

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 replacement fleet is expected to meet these commitments.

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 project has the following project outcomes:

• Phase 1 of the project will deliver upgrades to the avionics and mission support systems for up to 88 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 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 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 fleets are available as planned to meet training and operational readiness requirements.

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 three contracts: Sniper Pod contract with Lockheed Martin and with Raytheon for the APG-79(v) 4 Radar and AIM-9X missiles.

Department of National Defence

Public Services and Procurement Canada

Department of National Defence; Public Services and Procurement Canada; Innovation, Science and Economic Development

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.

Arcfield, Calgary, Alberta, Canada
CAE USA, Arlington, Texas, USA
Collins Aerospace, Cedar Rapids, Indiana, USA
Collins Elbit Vision Systems, Fort Worth, Texas, USA
L3Harris, Mirabel, Quebec, Canada
Lockheed Martin, Orlando, Florida, USA
Raymond EMC Enclosures, Ottawa, Ontario, Canada
Raytheon Intelligence & Space, Arlington, Virginia, USA
Raytheon Missiles & Defense, Tucson, Arizona, USA

Implementation

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) – March 2024
Full Operational Capability (FOC) – June 2025
Project Closeout – December 2026

The Hornet Extension 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
• 27 June 2022: Night Vision Cueing Display contract awarded to Collins ELBIT Vision Systems.

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

Cost: The project is on track to deliver 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 March 2024 and Full Operational Capability by June 2025.

Work Plan: In fiscal year 2024-25, HEP is scheduled to achieve the following:

• 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;
• Continue flight testing and airworthiness certification activities for new aircraft software and equipment; and
• Modification work completed on all 88 HEP aircraft.

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.

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 right-sized and of the right composition.

The IFCP has the following project outcomes:

• Successful acquisition of F/A18-A/B aircraft and integration into the CF-188 fighter fleet;
• Help address the capability gap by having sufficient mission-ready aircraft to support execution of the roles and missions asked by the Government of Canada; and
• Relocation of AETE from Cold Lake to the Ottawa 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):

• Increased number of available F/A-18 aircraft which will contribute towards ensuring operations within Canada, North America and internationally are effective;
• Ensure Air and Space force elements meeting Force Posture and Readiness requirements remain ready; and
• Ensure 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 contribute 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.

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.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

Acquired from the Australian government through a government to government purchasing arrangement.

CF-188 Prime Air Vehicle Contractor (L3 Harris), Avionics Optimized Weapons System Management Contractor (Arcfield), Propulsion Group Sustainment Management Contractor (Magellan)

Implementation – November 2018

Project Approval (Definition) – February 2017
Project Approval (Definition amendment) – December 2017
Project Approval (Implementation) – November 2018
Purchasing Agreement Signed – November 2018
First aircraft made available to Canada – February 2019
Initial Operational Capability – June 2019
Introduction to Service – June 2019
Commencement of Hangar 14 renovations – November 2022
Final Release to Service – All Aircraft and Equipment – Fall 2023
Full Operational Capability – Winter 2026
Effective Project Closeout – Spring 2026

The IFCP project is achieving project objectives, notably:

In the FY 2022-23, IFCP achieved the following:

• Released 4 additional aircraft to the RCAF for operations for a total of 11;
• Completed tendering process, awarded contracts and commenced environmental remediation on Ottawa Hangar;
• Completed renovation and occupancy of leased space; and
• Commenced relocation of AETE from 7 Hangar in Cold Lake to temporary spaces in Cold Lake and Ottawa.

For FY 2023-24, IFCP has achieved or is planning to have completed the following:

• Released final 2 additional aircraft to the RCAF for operations for a total of 13. This brings the total CF188 fleet to 89, deemed sufficient to meet all operational requirements and mandates. No further aircraft to be released to service;
• Convert 1 aircraft into a maintenance training aid for use by 10 Field Technical Training Squadron;
• Harvest remaining 6 aircraft for spares;
• Receive delivery and incorporate final spares purchased from Australia;
• Achieve Provisional Technical and Operational Airworthiness Clearance and have Certificates of Airworthiness granted; and
• Complete relocation of AETE from 7 Hangar in Cold Lake to temporary spaces in Cold Lake and Ottawa.

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. A shift to procure to budget approach with respect to aircraft integration, and a reduction in the number of aircraft released to service will allow the project to remain affordable and within the approved Expenditure Authority. All project contingency funding has been released.

Schedule: 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 and extended environmental remediation activities have 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 baseline schedule. All of this has resulted in the Full Operational Capability and Project Close Out milestones estimated to be delayed by more than a year relative to the currently approved baseline schedule.

Work Plan: For Fiscal Year 2024-25, IFCP is scheduled to:

• Complete integration of IFCP technical data into CF-188 publication library; and
• Achieve full Technical and Operational Airworthiness Clearance.

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.

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 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 contribute 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:

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

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.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

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

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

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. – Saint-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

Implementation – February 2020
Closeout (expected) – 2028

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

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;
• Separate from the 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 three systems have been delivered with the last system to be delivered early 2024;
• As of August 2023, all 123 blocks are structurally completed for JSS1; and
• As of September 2023, there are 45 of 115 JSS2 blocks under construction, with 19 blocks being structurally complete.

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, as well as challenges related to building a first-of-class ship, affecting cost and schedule. There is a planned revision to the target cost of each ship.

Schedule: The Project schedule was reviewed and updated to reflect delays due to production challenges in building a first-of-class ship, COVID impacts on the shipyard and the supply chain.

Work Plan: In fiscal year 2024-25, 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;
• With the completion of major steelwork on the first Joint Support Ship, the construction efforts will focus on cable pulling and outfitting;
• The first Joint Support 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 Sea-to-Shore connector systems.

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.

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 LRSS 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 contribute to various Program Inventories under Operations and Ready Forces. The LRSS project will deliver the following capabilities to the Canadian Armed Forces:

• A modernized land surveillance capability 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.

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.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

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

Leonardo DRS – Arlington, Virginia, USA

Implementation – November 2014
Closeout (expected) – Fall 2025

Project Approval (Definition) – December 2012
Project Approval (Implementation) – November 2014
Contract Award – February 2015
Initial Operational Capability – Fall 2024
Full Operational Capability – Summer 2025
Project Closeout – Fall 2025

The LRSS project has achieved project objectives, notably:

• Surveillance System Critical Design Review 2016;
• Project Critical Design Review 2019;
• Production of LRSS vehicles started in November 2020;
• Deliveries of Silent Watch Battery Pack started in April 2021; and
• First Vehicle Delivery achieved in August 2023.

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 six-year delay against the 2014 approved schedule due to technical challenges in developing a compliant surveillance system, the most significant being the bankruptcy of a major sub-contractor and complexities of software integration. Delivery of the first system was delayed several times from the original 2017 date to 2023. The latest revision to the schedule was presented to, and endorsed by, the Senior Review Board on 15 December 2022.

Work Plan: In fiscal year 2024-25, the LRSS project will achieve the following:

• Continue delivering vehicles to Canadian Forces Bases;
• Complete operational testing;
• Deliver Initial Cadre Training;
• Continue delivering initial provisioning of spare parts; and
• Declare Initial Operational Capability.

The Logistics Vehicle Modernization (LVM) project will acquire a new fleet of light trucks with a 4 to 5 tonne cargo capacity; trailers and modules 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 15 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 minimum planned 20 years of service. The infrastructure scope will include a combination of new construction, renovations and additions to existing infrastructure to support the new fleets.

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:

• Ensure fleets are available as planned to meet training and operational readiness requirements; and
• Provide modernized fleets which will contribute towards ensuring operations in Canada, North America and internationally are effective.

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.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

To be determined (TBD)

TBD

Definition – February 2019

Project Approval (Definition) – February 2019
Request for Proposal (RFP) release – December 2021
Bidder Selection – Fall 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

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;
• 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 fiscal year 2024-25, the project is scheduled to:

• Seek Contracting and Expenditure Authority and Project Approval (Implementation) to be able to award both an Acquisition and a long-term In-Service Support contract to the winning bidder from the competitive 2023 solicitation process; and
• Post-contract award, the project will undertake design review work with the Contractor.

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 multi-purpose shipborne Maritime Helicopters for operations well into the 21st century.

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 fleets 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:

• Ensure Maritime Forces and Air and Space Forces Elements remain ready and are deployable in support of Force Posture and Readiness;
• Ensure fleets are available as planned to meet training and operational readiness requirements; and
• Contribute towards ensuring operations in Canada, North America and internationally are effective.

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 50% (under negotiation to increase) of the contracted value for the In-Service Support portion from Sikorsky Aircraft.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

Sikorsky International Operations Incorporated – Stratford, Connecticut, USA

General Dynamics Mission Systems – Canada – Ottawa, Ontario, Canada
L3 Harris Technologies, Inc., formally L-3 MAS – Mirabel, Quebec, Canada

Implementation – November 2004
Closeout (expected) – September 2027

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 – March 2025
Project Full Operational Capability – September 2026
Effective Project Closeout – September 2027

The MHP is achieving project objectives, notably as of 28 September 2023:

• A total of 26 CH-148 Cyclone helicopters have been delivered and 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: Full scope is expected to be achieved.

Cost: Treasury Board has approved additional EA/PA to complete the project.
Schedule: Final aircraft delivery may be delayed, no impact expected on Full Operational Capability (FOC) date.
Work Plan: In fiscal year 2024-25, the Maritime Helicopter Project will achieve the following:

• Delivery and Acceptance of the 27th Block 2 CH148 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
• Continue Delivery of all Capability Release 2.1 Modification Kits to the RCAF.

The project will deliver a Remotely Piloted Aircraft System (RPAS) capable of providing 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 Canada's defence policy Strong, Secure, Engaged initiatives #50 and #91.

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 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.

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

Canada's Industrial and Technological Benefits (ITB) Policy applies to the acquisition and sustainment of the Remotely Piloted Aircraft System. This requires that industry make investments in Canada equal to the value of the acquisition and in-service support contracts/agreements. Canada seeks contractual commitments from industry that align with the Value Proposition (VP) strategic objectives.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

To be determined (TBD)

TBD

Definition – 2019
Implementation – 2023-24

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

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;
• 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 was issued to qualified suppliers;
• August 2022: Bid evaluation started;
• November 2022: Bid evaluation completed;
• January 2023: Solicitation finalization phase started;
• February 2023: 14 Wing Greenwood Air Maintenance Detachment infrastructure design-build contracts awarded;
• May 2023: Ottawa Ground Control Centre infrastructure design-build contracts awarded; and
• September 2023: RPAS Foreign Military Sales Case Congressional Notification.

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

Cost: The project is currently within the 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 in fiscal year 2023-2024.

Work Plan: In fiscal year 2024-25, the project is scheduled to:

• Be in Implementation Phase and in the first year of the RPAS contract. Early contract milestones include System Requirements Review and Preliminary Design Review; and
• Progress the infrastructure design work for Air Maintenance Detachment (East) and the Ground Control Centre through the main review phases.

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 a total of nine CC330 Husky 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.

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 Refueling 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.

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

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

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

To be determined

Acquisition Implementation – June 2023

Project Approval (Definition) – December 2020
Project Approval (Early implementation) – June 2022
Amended Project Approval (Implementation) – June 2023
Contract Award (Implementation) – June 2023
Initial Operational Capability – 2028-29
Full Operational Capability – 2032-33
Project Closeout – 2032-33

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;
• June 2022: Contract award for acquisition of two used A330-200 aircraft;
• June 2023: Amended Project Approval and Expenditure Authority (Implementation) granted;
• June 2023: Contract awarded for acquisition of nine CC-330 Husky aircraft, associated equipment, integrated logistic support elements, training simulator(s), and sustainment;
• June 2023: Contract awarded for acquisition of three additional used A330-200 aircraft; and
• August 2023: First used A330-200 aircraft delivered to Canada.

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 fiscal year 2024-25, the project is scheduled to:

• Execute the Aircraft Acquisition contract with Airbus Defence & Space, working through the systems engineering and processes leading to design reviews of CC330 Husky aircraft;
• Prepare for acceptance and transfer of title of three additional used A330-200 aircraft from International AirFinance to Canada;
• Provide In-Service Support to two used CC330 Aircraft that will be serving the RCAF in a strategic airlift role;
• Advance all development and design elements associated with STTC Project Infrastructure requirements for Eastern and Western Main Operating Bases and select northern Forward Operating Location(s); 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.

Victoria Class Modernization (VCM) will provide the modernized and increased capabilities necessary to maintain the submarines' operational relevance through the mid-late 2030s.

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 for RCN submariners;
• Positioning the Victoria-class submarines to contribute meaningfully to CAF Joint Operations Ashore; and
• Ensuring the survivability of the Victoria-class submarines against current and evolving threats in an increasingly complex and ever-changing battlespace.

Industrial Technological Benefits Policy will be considered for all acquisitions in excess of $20M.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Department of National Defence (DND); Public Services and Procurement Canada (PSPC); Innovation, Science and Economic Development Canada (ISED)

The Project is contracting through a combination of contract vehicles without a prime contractor.

No contracts have been let at this time.

Victoria Class Modernization is currently split between the Options Analysis, Definition and Implementation Phases.

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
Project Approval (Definition) Air Monitoring System Project – October 2023
Project Approval (Definition) Acoustic Quieting Project – October 2023
Project Approval (Definition) Data Fusion Capability Project – October 2023
Project Approval (Implementation) Galley Improvement – December 2023
Contract Award (Implementation) Galley Improvement – January 2024
Estimated Project Approval (Implementation) Flank Array Modernization – June 2024
Estimated Contract Award (Implementation) Flank Array Modernization – August 2024
Estimated Project Approval (Implementation) Periscope Modernization – June 2024
Estimated Contract Award (Implementation) Periscope Modernization – August 2024
Estimated First Delivery (Pre-implementation) – 2026
Initial Operational Capability – 2028
Full Operational Capability – 2035
Project Closeout – 2036

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;
• March 2022: Two projects under the Obsolescence and Maintenance Mitigation Initiative entered Implementation; and
• August 2023: Galley Improvement Project Bid Evaluation completed.

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

Cost: The project is within its approved budget.

Schedule: The project has fallen behind with the schedule approved as part of the November 2020 project definition approval. Initial Operational Capability remains scheduled for 2028 and Full Operational Capability is now scheduled for 2035.

Work Plan: In fiscal year 2024-25, the VCM project will achieve the following:

• The Flank Array Modernization Project and the Periscope Modernization Project, will enter the Implementation Phase;
• The final design for the Galley Improvement Project will be delivered;
• Definition work will continue on the Air Monitoring System, Acoustic Quieting and Data Fusion Capability Projects; and
• Habitability and deployment upgrades will continue on HMCS Victoria.