Status Report on Transformational and Major Capital Projects - The information contained herein is accurate and reliable as of September 2024

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 RCN;
• 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 are effective;
• 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
Revised Project Approval (Implementation) – November 2022
Initial Operational Capability – December 2022
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, His Majesty’s Canadian Ship (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, 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;
• 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;
• HMCS William Hall was delivered to Canada in August 2023; and
• HMCS Frédérick Rolette was delivered to Canada in August 2024.

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. In November 2022, a further increase to the budget was approved to complete the building of the sixth ship, procure spare parts, and procure a jetty rail crane. The revised budget was necessary primarily because of COVID-19 impacts and production efficiency challenges faced since the 2018 cost estimates.

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. In November 2022, along with the increased budget, an extension of the production period by a minimum of 26 months was granted.

Work Plan: The AOPS Project will achieve the following in Fiscal Year (FY) 2025-2026:

• Construction of the sixth and final AOPS RCN-variant, the future HMCS Robert Hampton Gray, will continue with anticipated delivery to Canada in 2025; and
• The Project Management Office will maintain support to CCG as construction of the CCG-variant AOPS 7 and 8 continues.

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 $1,830M.

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 Troop/Cargo Vehicle variant was produced by General Dynamics Land Systems Canada in December 2020;
• The first Ambulance variant was 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;
• The Ambulance variant was initially delivered to the Canadian Army in October 2023;
• The Troop/Cargo Vehicle was initially delivered to the Canadian Army in February 2024;
• Reliability, Availability, Maintainability and Durability (RAMD) was completed for the Troop/Cargo Vehicles, Ambulance and Command Post variants in February 2024;
• The Command Post variant was initially delivered to the Canadian Army in August 2024; and
• A total of 67 Vehicles, including Troop/Cargo Vehicles, Ambulance and Command Post variants have been delivered to the Canadian Army as of September 2024.

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

Cost: The project is within the 2019 approved budget.

Schedule: The project has a re-baseline schedule as a result of both 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. The Government of Canada announced a further donation of an additional 50 vehicles in 2023. Any vehicle originally fabricated for Canada and used for the donation will be replaced by the Contractor and therefore the latest donation will not have impact to the scope of the project.

Work Plan: In FY 2025-26, the project is scheduled to:

• Continue Qualification testing of the Electronic Warfare variant;
• Finish the deliveries for the Troop/Cargo Vehicles, Ambulance and Command Post variants; and
• Start Qualification testing of the Engineer variant and the Maintenance Recovery Vehicles.

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 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) 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 Satellite Communications, Secure Data, 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 – Fall 2024
Block IV Full Operational Capability – Spring 2025
Project Closeout – Fall 2025

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
• Two Block IV aircraft were delivered in FY 2024-25, for a total of twelve in service.

Scope: Following the announcement of P-8 Poseidon procurement by the Canadian Multi-Mission Aircraft (CMMA) project, the scope of the AIMP was reviewed in conjunction with CP-140 program planning. A 3 October 2024 decision reduced the scope of the project to just deliver the Secure Data Link capability on 12 aircraft. The self-defence and wideband global Satellite Communication systems will no longer be delivered, and the final two aircraft will no longer undergo modification.

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 2025-26, the project is scheduled to close.

The Canadian Multi-Mission Aircraft (CMMA) project will deliver an enhanced long-range, long-endurance, multi-mission capability to replace the aging CP140 Aurora long-range maritime patrol aircraft. It will be specialized in Anti-Submarine Warfare and Anti-Surface Warfare, and will be optimized for Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance. It will also have an operational advantage over Canada's present and future potential adversaries in terms of capability, upgradeability, resilience and interoperability. Moreover, given Canada's large maritime areas of responsibility, it will have sufficient range, endurance and speed to adequately monitor and control these areas, including the maritime approaches to Canada.

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 CMMA project has the following outcomes:

• Acquire 14 P-8A multi-mission aircraft with options for up to two additional aircraft;
• Acquire fixed and deployable Tactical Operations Centers;
• Acquire training devices and simulators;
• Deliver associated infrastructure in Greenwood and Comox;
• Acquire associated in-service support services and goods, including ground support equipment, tools and spares;
• Acquire up to three years of initial sustainment; and
• Define and set up steady-state In-Service Support (ISS).

Additionally, this project will contribute to Program Inventory 6.2 Defence Infrastructure Construction of the Departmental Results Framework. Its outcome is to ensure the infrastructure portfolio is right-sized and of the right composition.

Once the aircraft are introduced into service they will be contributing to various Program Inventories under Operations and Ready Forces. The CMMA project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Air Force:

• Introduces a new fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective;
• Ensures Air Force Elements are deployable in support of Force Posture and Readiness; and
• Ensures fleet 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 Boeing Defence acquisitions contract through a signed agreement.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

United States Government

The Boeing Company – Arlington, Virginia, United States
CFM International – Cincinnati, Ohio, United States

Phase 2 Implementation – November 2023

Project Approval (Phase 1 Definition) – June 2023
Amended Project Approval (Phase 2 Implementation) – November 2023
Foreign Military Sales Case with U.S. Government Signed – November 2023
Amended Project Approval (Phase 3 Implementation) – 2026
First CP8A Aircraft Delivery – 2026
Last CP8A Aircraft Delivery – 2029
Initial Operational Capability – 2028
Full Operational Capability – 2033
Project Closeout – 2033

The CMMA project is achieving objectives, notably:

• 10 February 2022: Request for Information released to industry;
• 16 December 2022: Defence Procurement Strategy Deputy Minister Governance Committee Gate 1 (Industry Engagement);
• 22 December 2022: Government of Canada submitted a non-binding Letter of Request to the United States Government to retain P-8A as a viable CMMA option;
• 24 March 2023: Independent Review Panel for Defence Acquisition 2nd Review;
• 15 June 2023: Project received Project Approval to commence Phase 1 Initial Definition activities;
• 14 July 2023: Canada received Letter of Offer and Acceptance from the U.S. Government under the Foreign Military Sales program for the P-8A aircraft and its associated support;
• 28 November 2023: Project received Amendment Project Approval to commence Phase 2 Implementation;
• 28 November 2023: Letter of Offer and Acceptance signed by the Government of Canada; and
• 29 February 2024: Contract signed between the United States Government and the Boeing Company for Canada's aircraft.

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

Cost: The project is on track to deliver within approved budget.

Schedule: The project is on schedule to deliver the required equipment and services; however, infrastructure activities have yet to progress at the same pace and are placing pressure on the overall project schedule.

Work Plan: In the FY 2025-2026, the project is scheduled to:

• Complete first CP8A instructor courses;
• Commence Industry Engagement for steady state In-Service Support (ISS);
• Approve Airworthiness Qualification Plan;
• Conduct site surveys in Greenwood and Comox;
• Select Anti-Surface Warfare Weapons;
• Finalize Interim Infrastructure Plans to support delivery of first aircraft;
• Work with U.S. Government for the finalization and delivery of Government Furnished Equipment to support aircraft delivery;
• Commence conversion training of first RCAF crews; and
• Support Boeing to commence production of initial RCAF CP8A aircraft.

The objective of the River-Class Destroyer (RCD) project (formerly known as Canadian Surface Combatant (CSC)) 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 RCD 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 (2.2 Ready Naval Forces and 2.10 Equipment Support). The RCD project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Navy:

• Introduces a new fleet which will contribute towards effective operations within Canada, North America and internationally are effective;
• 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 River-Class Destroyer. 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) – Winter 2025

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
Cut Steel (Low Rate Production) – June 2024
Project Approval (Implementation) – 2025
Implementation Contract Award – 2025
Full Rate Production – 2025
First Delivery – 2030-33

The RCD 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;
• December 16, 2022: PDR was completed and Functional Design commenced;
• April 2024: The project completed initial Critical Design Review, with final Critical Design Review forecasted for 2025; and
• June 2024: The class name was announced as the River Class Destroyer at the start of low-rate production.

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 proceeding through the design phases to evolve the ship design in preparation for ship build. Updated ship construction cost estimates are being delivered by the shipyard in Fall 2024 to support entering Project Implementation Phase and enable a revised project cost estimate.

Schedule: Following Definition Contract award in February 2019, the complete design phase will continue in parallel to the start of Full Rate Production in 2025, with design of the more complex portions of the ship (those primarily associated with the ship's combat systems) continuing through to Final Design Review, likely in 2028. While work is still underway with Canada's prime contractor, Irving Shipbuilding Inc., to optimize a build schedule, first ship delivery is expected to occur in the early 2030s (2030-33). The revised ship delivery schedule recognizes the complexity of the RCD design and is informed by best practices and lessons learned through allies who are building variants of the same design.

Work Plan: In FY 2025-26, the project is scheduled to:

• Continue with Functional Design, transitioning to Detailed Design for mature areas of the ship design in support of production readiness;
• Start full rate production on RCD ship #1; and
• Progress various elements of DND infrastructure, including the design and build of a Land Based Test Facility and a Combatant Training and Integration Center in Halifax, as well as various jetty upgrades in Halifax and Esquimalt.

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 by increasing the fleet size from 13 to 16 helicopters 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 Montreal, 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
Contract Award (Implementation) – December 2022
Helicopter Critical Design Review – January 2024
Flight Simulator Training Device Preliminary Design Review – February 2024
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 list of capabilities 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 with contract signing in December 2022.

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

Budget: The project will be able to purchase the capabilities with the new budget assigned.

Work Plan: In FY 2025-26, the project is scheduled to:

• Conduct the first flight of the new helicopter;
• Stand up the Canadian production line at IMP Aerospace and Defence in Halifax, Nova Scotia; and
• Start of Initial Cadre Training for aircrew and maintenance technicians.

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 beneficiaries 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

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;
• Initial Aircrew and Maintenance training was completed in May 2023;
• Aircrew Initial Cadre Training and Maintenance Conversion Training started in Comox, British Columbia in January 2024; and
• Aircrew Initial Cadre Training was completed in May 2024.

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

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

Schedule: Due to 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. As such, Canada has shifted the target date for Initial Opertional Capability to 2025-2026 and Full Operational Capability to 2029-2030 and remains on target to achieve these dates.

Work Plan: In fiscal year 2025-26, the project is scheduled to:

• Support the RCAF in holding a CC295 Line of Tasking by 1 May 2025;
• Continue with Initial Operational Test and Evaluation;
• Stand up the Main Operating Base in Greenwood, Nova Scotia;
• Conclude certification and qualification programs;
• Accept the sixteenth and final aircraft; and
• Progress aircrew and maintenance conversion training serials.

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:

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

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
Lockheed Martin – Fort Worth, Texas, USA
Pratt & Whitney – East Hartford, Connecticut, USA

Northrop Grumman – Falls Church, Virginia, USA
BAE Systems – Falls Church, Virginia, USA
Raytheon Technologies – Arlington, Virginia, USA

Implementation December 2022

Project Approval (Definition) – November 2017
Amended Project Approval and Expenditure Authority/Contract Approval (Implementation) – December 2022^{Footnote 1}
Contract Award – December 2022
Estimated Amended Expenditure Authority (Implementation) – 2025 Estimated
First Aircraft Delivery to Canada (to US Air Force Base) – 2026
First Aircraft Arrival in Canada – 2028
Initial Operational Capability – 2029-30
Full Operational Capability – 2032-34
Effective Project Closeout – 2033-35

Scope: DND is collaborating with PSPC and ISED to replace the fighter fleet, with the F-35A advanced fighter aircraft.

Cost: Cost pressures resulting primarily from external factors including foreign exchange rates, inflation, and labour and materials costs that have surpassed values forecasted in 2020 have been realized. As a result, budget estimates are being updated.

Schedule: FFCP has continued to steadily progress project activities throughout FY 2024-25. Delays have been incurred to the construction of the Fighter Squadron Facilities (FSFs), which has required the project to implement an Interim Operations Plan (IOP) in order to maintain schedule on the delivery of the first aircraft in Canada. Otherwise, the schedule remains unchanged for future implementation milestones, such as the anticipated aircraft delivery schedule, training of pilots and technicians, acquisition of weapons, and to set up the necessary sustainment capabilities.

Work Plan: In FY 2025-26, the project is scheduled to:

• Obtain approval for the procurement of the full scope of 88 F-35A aircraft and associated support equipment, weapons, and sustainment;
• Prepare for first aircraft delivery at Luke Air Force Base in Arizona to train the initial tranche of RCAF pilots and technicians;
• Advance the procurement of the required weapons;
• Progress the design and construction activities for the Fighter Squadron Facilities (FSFs) in Bagotville, QC and Cold Lake, AB; and
• Provide inputs to support the Defence of Canada Fighter Infrastructure (DCFI) project design and implementation activities.

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 CF-35A 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

HEP Phase 1: Implementation
HEP Phase 2: Implementation

Project Approval (Definition) Phase 1 – June 2019
Project Approval (Definition) Phase 2 – May 2020
Project Approval (Implementation) – May 2020
Project Approval (Implementation) for December 2021 remaining systems in Definition
Contract Award (Implementation) – July 2022
Initial Operational Capability (IOC) – June 2023
Full Operational Capability (FOC) – March 2026
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: Special Access Program Facilities contract awarded to Raymond EMC; and
• 24 June 2024: The project achieved Initial Operational Capability.

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 behind schedule. AIM-120D missile delivery delays have delayed the forecasted achievement of Full Operational Capability to March 2026.

Work Plan: In FY 2025-26, the project is scheduled to:

• Take delivery of the majority of remaining equipment, including APG-79(v)4 Radars, AIM-9X missiles, Data Transfer Units;
• Continue flight testing and airworthiness certification activities for new aircraft software and equipment; and
• Achieve Full Operational Capability by March 2026

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 – June 2023
Full Operational Capability – May 2026
Effective Project Closeout – August 2026

The IFCP project is achieving project objectives, notably:

• Transported and received 18 Australian F/A-18 and two non-operational aircraft;
• Completed acceptance and all required preventative maintenance inspections/work, and all Canadianization modifications to 13 IFCP aircraft to ensure that they are functionally identical to the existing CF-188 fleet. These aircraft were released to the RCAF and integrated into the current fighter force structure;
• The remaining seven aircraft have been designated as spares, and will be harvested for components of interest, helping to ensure that there are sufficient spares stock to support the entire CF-188 fleet until retirement;
• An analysis was completed to ensure that the number of IFCP aircraft released to the RCAF met the operational requirements of the fleet such that it would be able to meet its mandates;
• Accepted deliveries of spare parts and equipment as they became available from Australia, with the final delivery taking place in September 2024, and integrated them into the supply system;
• Progressed full Technical and Operational Airworthiness certification that will allow the release of the Certificates of Airworthiness for IFCP aircraft that were put into service;
• Completed renovation of leased facility in Ottawa and moved 14 Hangar occupants to new location;
• Enabled AETE to vacate 7 Hangar in Cold Lake, moving the majority of the unit to temporary facilities in Ottawa. This facilitated infrastructure work in Cold Lake in support of the Future Fighter Capabilty Project and the introduction of the F-35 fleet;
• Completed 14 Hangar design activities and commenced renovations;
• Completed tendering process and awarded contracts for Ottawa Hangar renovations; and
• Completed environmental remediation of 14 Hangar required due to damage sustained during the May 2021 windstorm.

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 wereexplored and implemented. Infrastructure funding requirements were stabilized, and the reduction in the number of aircraft being released to service allowed the project to remain affordable. All project contingency funding was released.

Schedule: Full Operational Capability and Project Close-out milestones are delayed by approximately three months, relative to approved re-baselined scheduled, a result of additional delays in starting Hangar 14 renovations due to May 2022 storm damages repair and extended environmental remediation.

Work Plan: For FY 2025-26, the project is scheduled to:

• Complete the renovation of 14 Hangar and transfer from contractor to Government facilities managers:
• Complete the installation of required networking and IT systems;
• Commission the newly renovated 14 Hangar;
• Complete the relocation of AETE from their temporary facilities, as well as the last remnants in Cold Lake, into the newly renovated 14 Hangar; and
• Commence the 1 year builder's warranty period, identifying and rectifying any deficiencies with the construction.

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:

• Introduces a new fleet which will contribute towards effective operations within Canada, North America, and internationally;
• Ensures Maritime Forces Elements are deployable in support of Force Postures and Readiness; and
• Ensures 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 – Mount 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) – 2029

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
Revised Project Approval (Implementation) – June 2024
Delivery of First Ship – 2025
Initial Operational Capability – 2027
Delivery of Second Ship – 2027
Full Operational Capability – 2028
Project Closeout – 2029

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,affecting cost and schedule. Costing impacts of COVID and schedule delays were updated in the June 2024 Treasury Board submission.

Schedule: The Project schedule was reviewed and an updated schedule released in 2023 that included the COVID-19 impacts. JSS1 is now expected to be delivered in late 2025 and JSS2 in late 2027.

Work Plan: In fiscal year 2025-26, the project will proceed with the following activities:

• Conduct Harbour Acceptance Trials of JSS1;
• Conduct Sea Acceptance Trials of JSS1;
• Acceptance of JSS1; and
• Consolidate the ship structure of JSS2.

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 seven-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 10 November 2023. Operational testing ending in spring of 2024 identified that further design improvements were required to achieve a more reliable vehicle platform that meets mission-readiness requirements. Vehicle deliveries were suspended until redesign and retest efforts are complete.

Work Plan: In FY 2025-26, the project is scheduled to:

• Complete operational testing;
• Continue delivery of vehicles to Canadian Forces Bases;
• Deliver Initial Cadre Training;
• Continue 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

General Dynamics Land Systems-Canada – London, Ontario, Canada
Marshall Canada – Moncton, New Brunswick, Canada

TBD

Implementation – May 2024

Project Approval (Definition) – February 2019
Request for Proposal (RFP) release – December 2021
Bid Evaluation Completed – October 2023
Project Approval (Implementation) – May 2024
Contract Award (Implementation) – May 2024
Initial Operational Capability – Fall 2028
Full Operational Capability – Fall 2030
Effective Project Closeout – 2031

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

• In April 2019, Canada published the formal invitation to qualify. Draft Request for Proposal (RFP) documents released to qualified suppliers in Phases (July 2020 through August 2021);
• RFP was released to qualified suppliers on 9 December 2021 and closed on 31 May 2022;
• The Bid evaluation period was conducted from June 2022 to October 2023;
• Acquisition Contract and Long-term In-Service Support Contract Awarded to General Dynamics Land Systems-Canada and Marshall Canada in joint venture on 23 May 2024;
• Conducted a kick-off meeting on 11 June 2024 to review and clarify project requirements and customer expectations;
• Conduct Progress Review Meetings (PRM) every two months to formally report project progress to Canada;
• Convene monthly for System Engineering and Integrated Logistics Support Technical Review Meetings (SE/ILS TRM) to examine the Contractor's Design Reviews, validate all the technical requirements leading up to the Final Design Acceptance (FDA) milestone and review supportability analysis for any issues arising from systems integration or logistics engineering.

Work Plan: In FY 2025-26, the project is scheduled to conduct:

• Preliminary Design Review (PDR) for Light and Heavy capabilities;
• Critical Design Review (CDR) for Light and Heavy capabilities;
• Contractor's and Canada's Requirements Verification Program;
• Development of ILS products; and
• Pre-Production of Article Testing artifacts.

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 introduced into service, the fleet 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, and specifically the Royal Canadian Air Force in support to the Royal Canadian Navy:

• Ensures Maritime Forces and Air and Space Forces Elements remain ready and are deployable in support of Force Posture and Readiness;
• Ensures fleets are available as planned to meet training and operational readiness requirements; and
• Contributes 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) – December 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 – June 2025
Project Full Operational Capability – August 2026
Effective Project Closeout – December 2027

The MHP is achieving project objectives, notably:

• The 27th CH-148 Cyclone helicopters was delivered in the Block 2 configuration. The last helicopter (28th) is now projected for delivery in FY 2025-26.
• Two helicopters were upgraded to the final Capability Release 2.1 configuration as of Quarter 3 FY 2024-25, bringing the total to eight. The remaining helicopters are expected to be converted in FY 2025-26;
• Several enabling services have undergone operational demonstrations and/or formal acceptance testing. Contractor is working to address findings so that services can be accepted in fiscal year 2024-25;
• Contractor is on track to release the first in-service mission system software upgrade before end of FY 2024-25;
• All twelve frigates can support and sustain embarked CH-148 Cyclone operations for deployments, with some limitations on high sea states; and
• Since the declaration of Initial Operational Capability in 2018, Cyclones have continuously supported domestic and international operations.

Scope: The project has experienced technical challenges and slippages through the implementation phase. However, Treasury Board re-confirmed in May 2023 that the original scope of the project and the capabilities required of the new maritime helicopter fleet remain valid.

Cost: The Maritime Helicopter Project requested and obtained an increase in expenditure authority from Treasury Board in May 2023. The increase in authority covers the costs of maintaining a project management office for substantially longer than originally planned, and un-forecasted expenditures to improve the safety of ship-borne operations at night and high sea states. The project is projected to remain within its current expenditure authority.

Work Plan: In FY 2025-2026, the project is scheduled to:

• Deliver the last helicopter under the acquisition contract;
• Deliver the last Capability Release 2.1 modification kit to the RCAF;
• Accept the Missions Planning and Analysis Service;
• Provisionally accept the Flight Test Instrumentation Suite;
• Provisionally accept the flight and mission simulators; and
• Accept the Electronic Warfare Test Bench.

The Remotely Piloted Aircraft System (RPAS) project will deliver a new capability to support Canadian Armed Forces (CAF) intelligence, surveillance, and reconnaissance during domestic and international operations. The aircraft will be piloted by certified Royal Canadian Air Force (RCAF) pilots from a Ground Control Centre in Ottawa and will be capable of carrying and employing precision-guided munitions.

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 RPAS capability that meets the requirements of the 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: 11 remotely piloted aircraft, a new ground control centre, six ground control stations, two new aircraft hangar facilities, as well as associated equipment, initial weapons, sustainment services, a training solution including mission crew and technician training courseware and training devices, associated works, and supporting information management/information technology.

The Defence Procurement Strategy (DPS) applies to this project and DND is collaborating with Innovation, Science and Economic Development (ISED) Canada as the Value Proposition is implemented.

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

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

The acquisition will be completed through a direct commercial sales contract with General Atomics Aeronautical Systems, Inc, with some specific components acquired through a Foreign Military Sales arrangement with the United States government.

General Atomics Aeronautical Systems, Inc – Poway, California, United States
United States Government

MDA – Vancouver, British Columbia, Canada
CAE – Montreal, Quebec, Canada
L3-Wescam – Hamilton, Ontario, Canada
Bombardier – Montreal, Quebec, Canada

Implementation November 2023

Project Approval (Definition) – April 2019
Project Approval (Implementation) – November 2023
Contract Award (Implementation) – December 2023
First Delivery and Acceptance – Early 2028
Initial Operational Capability – FY 2027-28 to 2029-30
Full Operational Capability – FY 2030-31 to 2032-33
Project Closeout – FY 2033-34 to 2034-35

The project RPAS is achieving project objectives, notably:

• 3 February 2023: 14 Wing Greenwood Air Maintenance Detachment infrastructure Modified Design-Build (MDB) contract awarded;
• 23 May 2023: Infrastructure MDB Contract awarded for the Ground Control Centre (GCC) in Ottawa;
• 23 November 2023: Amended Project Approval and Expenditure Authority for Implementation granted;
• 18 December 2023: Direct commercial sale contract signed with General Atomics Aeronautical Systems Inc (GA-ASI);
• 18 December 2023: Foreign Military Sale (FMS) case signed with the United States Government; and
• May 2024: Assemblies (wings, fuselage etc.) for the first two aircraft entered the GA-ASI production line.

Scope: The project is on track to deliver the project scope specified in the 2023 Project Approval (Implementation).

Cost: The project is currently within the project budget specified in the 2023 Project Approval (Implementation).

Schedule: The project is currently on schedule as per the 2023 Project Approval (Implementation). It is on track to achieve First RPAS Delivery and Acceptance in early 2028.

Work Plan: In FY 2025-26, the project is scheduled to conduct the following activities:

• Complete Critical Design Review;
• Advance the RPAS aircraft, sustainment and infrastructure elements;
• Continue to develop the aircrew and technician training solutions;
• First two production aircraft are expected to be ready to begin the flight and ground test campaign in 2026; and
• Start to build infrastructure components in Ottawa and Greenwood.

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 nine CC-330 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. Infrastructure at two Main Operating Bases (Eastern and Western Canada) and selected northern Forward Operating Location(s) will also be delivered.

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

Airbus SAS, Colomiers, France
Thales AVS, Merignac, France
CAE Inc, Saint-Laurent, Quebec, Canada

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;
• June 2022: Contracting and Expenditure Authority (Early Implementation) achieved;
• June 2022: Contract award for acquisition of two used A330-200 aircraft;
• January 2023: Updated RFP for acquisition of STTC multi-role aircraft released to Qualified Supplier;
• June 2023: Contract award for acquisition of three additional used A330-200 aircraft, and contract award for procurement of four new A330 Multi-role Tanker Transport aircraft and conversion of five used A330 aircraft;
• March 2024: CC-330 Main Operating Base (East) announced to be 8 Wing Trenton, ON, with additional announcements for Western and Forward Operating Location forthcoming in 2025;
• July 2024: Contract Award to PCL Constructors for Modified-Design-Build of Main Operating Base (East); and
• October 2024: Request for Proposals for Long-Term In-Service Support released to Industry Qualified Suppliers.

Cost: The project is currently within the approved (and increased) budget.

Schedule: The project is on track through the implementation phase, and to seek further authorities for infrastructure and Long-Term In-Service Support in Fall 2025.

Work Plan: In fiscal year 2025-26, the project is scheduled to:

• Advance systems engineering processes, including preparation for various test readiness review events for STTC aircraft;
• Provide operation and in-service support of up to three used CC-330 Husky aircraft in support of DND/CAF missions;
• Develop and design STTC Project Infrastructure at Eastern and Western Main Operating Bases, and Forward Operating Location;
• Evaluate responses to Long-Term In-Service Support Request for Proposals, and present the information for governance review; and
• Prepare documentation package that will seek remaining implementation authorities for STTC infrastructure and long-term in -service support.

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 Royal Canadian Navy (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 – November 2023
Contract Award (Implementation) Galley Improvement – December 2023
Estimated Project Approval (Implementation) Periscope Modernization – April 2025
Estimated Contract Award (Implementation) Periscope Modernization – June 2024
Estimated First Delivery (Pre-implementation) – 2025
Initial Operational Capability – 2029
Full Operational Capability – 2037
Project Closeout – 2038

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;
• October 2022: Defence Procurement Strategy Governance Board Gate #2 Acquisition and Sustainment for Periscope Modernization Project completed;
• June 2023: Habitability and deployment upgrades commenced on HMCS Victoria;
• August 2023: Defence Procurement Strategy Governance Board Gate #2 Acquisition for Flank Array Modernization Project completed;
• October 2023: VCM Air Monitoring System, Acoustic Quieting and Data Fusion Capability Projects received Project Approval and Expenditure Authority for the Definition Phase;
• November 2023: VCM Galley Improvement Project received Project Approval and Expenditure Authority for the Implementation Phase;
• December 2023: Contract awarded for the design and fabrication portion of the Galley Improvement Project; and
• September 2024: Defence Procurement Strategy Governance Board Gate #3 Acquisition and Sustainment for Periscope Modernization Project completed.

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

Cost: The project is within its approved budget.

Schedule: As a result of changes to the Victoria Class Submarine maintenance and availability schedule, the project is no longer aligned with the schedule approved as part of the November 2020 project definition approval. Initial Operational Capability is scheduled for 2029 and Full Operational Capability is scheduled for 2037.

Work Plan: In FY 2025-26, the VCM project will achieve the following:

• Award a contract for replacement periscopes;
• Take delivery of the first submarine set of improved galley equipment;
• Release a Request For Proposal for the Air Monitoring System Project; and
• Release a Request For Proposal for the Data Fusion Capability Project.