Status report on transformational and major capital projects

The information contained herein is accurate and reliable as of March 2026.

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Project name

Arctic and Offshore Patrol Ships

Description

The objective of the Arctic and Offshore Patrol Ships (AOPS) project is to deliver six ice-capable offshore patrol ships that will be used by the Royal Canadian Navy (RCN) to conduct sovereignty and surveillance operations in Canada's waters, including the Arctic, as well as to conduct a wide variety of operations abroad.

Project outcomes

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

The AOPS project has the following project outcomes:

  • Acquire six Arctic and Offshore Patrol Ships for the RCN;
  • Deliver associated jetty infrastructures in Halifax, Nova Scotia;
  • Contribute funding to associated jetty infrastructure project in Esquimalt, British Columbia;
  • 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).

Once the RCN's vessels are introduced into service, they will be contributing to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities:

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

Industrial benefits

Canada's Industrial and Regional Benefits (IRB) Policy applies to this project.

Canada will receive IRBs equivalent to 100% of the contracted value for the AOPS implementation. In-Service Support of the vessels is managed separately under the Arctic and Offshore Patrol Ships and Joint Support Ship In-Service Support (AJISS) Contract which was awarded in 2017.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

Acquisition:

Irving Shipbuilding Inc. – Halifax, Nova Scotia, Canada

In-Service Support: Thales Canada Inc. and Thales Australia Inc. – Ottawa, Ontario, Canada.

A single long-term In-Service Support Contract to support the AOPS and Joint Support Ship (JSS) vessels is in place.

Major subcontractors

Lockheed Martin – Ottawa, Ontario, Canada
General Electric – Peterborough, Ontario, Canada
Fleetway Inc. – Ottawa, Ontario, Canada
Lloyds Register – Toronto, Ontario, Canada
BAE Systems – Ottawa, Ontario, Canada
L-3 MAPPS – St. Laurent, Quebec, Canada
DSEC – Busan, Korea

Project phase

Implementation

December 2014

Closeout (expected)

2027

Major milestones

Preliminary Project Approval

May 2007

Design Engineering Logistics Maintenance and Support Contract Awarded

May 2008

Revised Project Approval (Definition) I

October 2011

Ancillary Contract Awarded

June 2012

Revised Project Approval (Definition) II

December 2012

Definition Contract Awarded

March 2013

Project Approval (Implementation)

December 2014

Award of Implementation Contract

January 2015

Revised Project Approval (Implementation)

November 2018

Delivery of First Ship

July 2020

Revised Project Approval (Implementation)

November 2022

Initial Operational Capability

December 2022

Full Operational Capability (FOC)

2026

Project Closeout

2027

Progress report and explanation of variances

The AOPS project is achieving project objectives, notably:

  • In accordance with the 2012 approved budget, the Definition Contract was completed in November 2015 under budget;
  • With the official cutting of steel, the lead ship in the class, the future 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, the future HMCS Margaret Brooke, entered full production in August 2016;
  • With the official cutting of steel, the third ship in the class, the future HMCS Max Bernays, entered full production in December 2017;
  • In September 2018, HMCS Harry DeWolf was launched at the 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, and can 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, British Columbia;
  • 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;
  • HMCS William Hall was delivered to Canada in August 2023;
  • HMCS Frédérick Rolette was delivered to Canada in August 2024; and
  • HMCS Robert Hampton Gray was delivered to Canada in August 2025.

Scope: In November 2018, the Government of Canada approved the construction of a sixth ship. The project is on track to deliver its approved scope.

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 the River-class Destroyer construction. Along with the increased budget, a minimum of 26-month extension of the production period was granted in November 2022.

Work Plan: In fiscal year 2026-27, the project plans to achieve the following:

  • Launch of Ship 7, for the Canadian Coast Guard, in April 2026;
  • Conduct Sea Trials for Ship 7 in August 2026;
  • Delivery of Ship 7 in October 2026; and
  • FOC for RCN variants of AOPS vessels in September 2026.

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Project name

Armoured Combat Support Vehicle Project

Description

The Armoured Combat Support Vehicle (ACSV) project will deliver an armoured combat support capability to provide Command and Combat and Combat Service Support to the forward elements of a Brigade Group. These capabilities include, but are not limited to, command vehicles, ambulances, and mobile repair teams.

Project outcomes

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

The ACSV Project will procure 360 Armoured Combat Support Vehicles.

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

  • 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 fleet is available as planned to meet training and operational readiness requirements.

Industrial benefits

The Industrial and Technological Benefits (ITB) Policy was applied to the ACSV Implementation Contract. Total ITB obligation is $1,830M.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

Major subcontractors

Kongsberg Defence and Aerospace - Protech Systems – Kongsberg, Norway
Plasan Sasa Ltd. – Sasa, Israel
SED Systems – Saskatoon, Saskatchewan, Canada
The Will-Burt Company – Orrville, Ohio, United States
KVH Industries, Inc. – Middletown, Rhode Island, United States
Terminal Cable Inc. – Carignan, Quebec, Canada
Abuma Manufacturing Ltd. – London, Ontario, Canada
Thales Canada – North York, Ontario, Canada
General Kinetics – Brampton, Ontario, Canada
Analytic Systems Inc. – Brampton, Ontario, Canada
IMP Group Ltd. – Halifax, Nova Scotia, Canada

Project phase

Implementation

August 2019

Major milestones

Project Approval (Implementation) August 2019
Contract Award September 2019
First Production Vehicle Acceptance December 2020
First Delivery of Ambulance Variant October 2023
First Delivery of Troop/Cargo Vehicle February 2024
First Delivery of Command Post Variant August 2024
Initial Operational Capability January 2025
Full Operational Capability (Equipment) 2028
Full Operational Capability (Infrastructure) 2030
Project Closeout 2031

Progress report and explanation of variances

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 CA in October 2023;
  • The Troop/Cargo Vehicle was initially delivered to the CA in February 2024;
  • Reliability, Availability, Maintainability and Durability was completed for the Troop/Cargo Vehicles, Ambulance and Command Post variants in February 2024;
  • The first Electronic Warfare variant was produced by General Dynamics Land Systems Canada in July 2024;
  • The Command Post Variant was initially delivered to the CA in August 2024;
  • A total of 128 vehicles, including Troop/Cargo Vehicles, Ambulance and Command Post variants have been delivered to the CA as of October 2025; and
  • The equipment and infrastructure Full Operational Capability (FOC) are independent of each other. The Infrastructure FOC timeline has been adjusted to reflect the need to build new facilities in Petawawa and Kingston, Ontario; Gagetown, New Brunswick; Valcartier, Quebec; and Edmonton, Alberta. The delivery of these new buildings is scheduled for Fiscal Year (FY) 2030-31.

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

Cost: The project is within the 2019 approved budget.

Schedule: In November 2023, the project schedule was re-baselined as a result of significant design changes for five of the eight variants due to increased vehicle weight requirements, and the Government of Canada's decision to donate 39 ACSVs to the Government of Ukraine.

Additionally, the project schedule was re-baselined in November 2024 as a result of the Government's decision to donate an additional 50 vehicles, further delays with the infrastructure development, and additional design work that was required for some of the variants.

Work Plan: In FY 2026-27, the project plans to:

  • Deliver up to 141 additional vehicles to the CA;
  • Complete all deliveries of the Command Post variants, Electronic Warfare variants and Maintenance Recovery Vehicles to the CA; and
  • Begin the final qualification of the last three vehicle variants, including Fitter Cargo Vehicle, Mobile Repair Team and Engineer.

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Project name

Aurora Incremental Modernization Project

Description

The objective of the CP-140 Aurora Incremental Modernization Project (AIMP) is to modernize the mission systems and sensors of 12 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.

Project outcomes

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule, and expenditure authority. 

AIMP has the following project outcomes:

  • Deliver Block I upgrades, which includes replacement/upgrade of high frequency radio gear, cockpit voice recorder and flight data recorder;
  • Deliver Block II upgrades, which includes navigation and communications upgrades;
  • Deliver Block III upgrades, which includes mission computer and sensor upgrades; and
  • Deliver Block IV upgrades, which was originally intended to add three new capabilities (Beyond Line-of-Sight Satcom, Link 16 and self-defence).

The modernized CP-140 aircraft have been introduced into service and are contributing to various Program Inventories under Operations and Ready Forces. The CP-140 Aurora Incremental Modernization Project has delivered 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 fleet is available as planned to meet training and operational readiness requirements.

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor (for Block IV)

General Dynamics Mission Systems - Canada – Ottawa, Ontario, Canada

Project phase

AIMP Block IV (Implementation)

June 2015

Closeout (expected)

2026

Major milestones

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 Dynamics Mission Systems-Canada

October 2015

Block IV Initial Operational Capability

March 2025

Block IV Full Operational Capability

November 2025

Project Closeout

March 2026

Progress report and explanation of variances

The AIMP project has achieved several project objectives, notably:

  • Blocks I, II, and III are complete and have delivered a modernized CP-140 Intelligence, Surveillance, and Reconnaissance and Anti-Submarine Warfare capability to the Royal Canadian Air Force;
  • Two Block IV aircraft were delivered in FY 2024-25, for a total of 11 in service; and
  • Initial Operational Capability was achieved on March 28, 2025.

Scope: Following announcement of P-8 Poseidon procurement, the Defence Capabilities Board endorsed reduction of the fleet size from 14 to 12, cessation of Operational Test and Evaluation of the Self Defence system and cessation of qualification of the Beyond Line-of-Sight satellite communication system.

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.

For FY 2026-27, AIMP is scheduled to achieve Effective Project Closeout.

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Project name

Canadian Multi-Mission Aircraft

Description

The Canadian Multi-Mission Aircraft (CMMA) project will deliver an enhanced long-range, long-endurance, multi-mission capability to replace the aging CP-140 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.

Project outcomes

This project will contribute to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule and expenditure authority.

The 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 services;
  • Acquire training devices and simulators;
  • Deliver associated infrastructure in Greenwood, Nova Scotia and Comox, British Columbia;
  • 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, Recapitalization and Investment of the Departmental Results Framework. Its outcome is to ensure 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:

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

Industrial benefits

The Industrial and Technological Benefits (ITB) Policy of Canada's Defence Procurement Strategy (DPS) 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.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

United States Government

Major subcontractors

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

Project phase

Phase 2 Implementation

November 2023

Major milestones

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

First CP-8A Aircraft Delivery

2027

Amended Project Approval (Phase 3 Implementation)

2027

Initial Operational Capability

2027

Last CP-8A Aircraft Delivery

2028

Full Operational Capability

2029

Project Closeout

2036

Progress report and explanation of variances

The CMMA project is achieving objectives, notably:

  • June 15, 2023: Project received Project Approval to commence Phase 1 Initial Definition activities;
  • July 14, 2023: Canada received Letter of Offer and Acceptance (LOA) from the United States Government under the Foreign Military Sales (FMS) program for the CP-8A aircraft and its associated support;
  • November 28, 2023: Project received Amended Project Approval to commence Phase 2 Implementation, and LOA was signed by the Government of Canada;
  • February 29, 2024: The United States Government signed an undefined contract with the Boeing Company for Canada's CP-8A aircraft;
  • January 31, 2025: FMS case for initial stock of CP-8A sonobuoys signed;
  • March 2025: Long-term In-Service Support Request for Information (RFI) released; and
  • May – October 2025: Multiple contracts awarded for the various elements of CMMA infrastructure.

Scope: As a result of potential financial constraints, there is a risk to the project's approved scope, specifically, Phase 3 elements (permanent infrastructure, weapons, and capability upgrades).

Cost: There is a risk that the project experiences financial pressures as a result of unfavourable foreign exchange rates and training cost increases.

Schedule: The project is currently experiencing schedule delays as a result of Boeing's production delays and estimated time to finalize permanent infrastructure.

Work Plan: In fiscal year 2026-27, the project plans to achieve the following:

  • Start of CP-8A Operator and Maintainer training;
  • Provisional CP-8A Weapon System Management Accredited Technical Organization accreditation;
  • Completion of P-8A type design examination; and
  • Approval of Long-term In-Service Support solution.

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Project name

Cormorant Mid-Life Upgrade Project

Description

The objective of the Cormorant Mid-Life Upgrade (CMLU) Project is to extend Canada's Rotary Wing Search and Rescue (SAR) capabilities to at least 2042 by addressing equipment obsolescence related to flight safety, capability sustainment, component supportability, emerging airspace regulatory requirements, and training. Additionally, the project will aim to rectify capability deficiencies, ensuring the CH-149 meets the operational availability requirements to support a national 24/7 SAR service at the four Rotary Wing Search and Rescue Main Operating Bases (Comox, British Columbia; Trenton, Ontario; Greenwood, Nova Scotia; and Gander, Newfoundland).

Project outcomes

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition and Program Inventory 2.4 Ready Air and Space Forces of the Departmental Results Framework. Its outcome is to deliver on Cormorant mid-life upgrades, while ensuring that the projects remain in approved scope, schedule, and expenditure authority. 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 Operations and Ready Forces, specifically:

  • Departmental Result (DR) 1.2 People in need in Canada are assisted in times of natural disasters and other emergencies; and
  • DR 2.2 Military equipment is ready for training and operations.

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

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

The overall outcome of the project will be a combination of improved aircraft availability and the potential of increased interoperability with fixed wing SAR and other search agencies to provide operational efficiencies and enhance SAR operations.

Industrial benefits

The Industrial and Technological Benefits (ITB) Policy of Canada's Defence Procurement Strategy (DPS) applies to this project. The objective is to achieve 100% of total contract value in Canadian Content Value as Direct and Indirect ITB transactions.

The Value Proposition commitments to be addressed under the proposed CMLU contract, as a percentage of the total contract price include:

  • Defence Sector (30%) (fulfillable only by Leonardo UK Ltd.);
  • Supplier Development (40%);
  • Research and Development (7.5%); and
  • Small and Medium Businesses (9%).

In addition, no less than $5M will support Skills Development and Training. Proposed business activities submitted to date include General Electric 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%).

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

Innovation, Science and Economic Development Canada (ISED)

Prime contractor

Leonardo MW Ltd. – Yeovil, United Kingdom
CAE – Montreal, Quebec, Canada

Major subcontractors

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

Project phase

Implementation

November 2022

Major milestones

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

Progress report and explanation of variances

Unaffordability of the original May 2020 contractor proposal resulted in re-examination of strategy, including a prioritized capability ladder and the option to acquire the simulator directly from CAE in Montreal. Recognizing the importance of SAR, the Department identified potential additional funding, leading to further negotiations with Leonardo and CAE and contract signing in December 2022.

Schedule: Supply chain pressures were identified near the end of FY 2024-25 that may affect production. Impact assessment and mitigating measures are under development.

Budget: The project budget is sufficient to purchase the approved scope.

In FY 2026-27, the CMLU Project will achieve:

  • First flight of the first three CMLU upgrade Helicopters;
  • Accept the CMLU Training Simulator; and
  • Commence training for the Pilots and Maintainers.

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Project name

Fixed-Wing Search and Rescue Aircraft Replacement Project

Description

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

Project outcomes

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule and expenditure authority.

The FWSAR project has the following objectives:

  • To acquire 16 new, sensor-equipped CC-295 Kingfisher aircraft to replace the SAR fleets of CC-115 Buffalo and CC-130H Hercules;
  • To acquire long-term In-Service Support for these aircraft;
  • To deliver the associated infrastructure; and
  • To enhance 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 SAR services.

Industrial benefits

The Industrial and Technological Benefits (ITB) Policy of Canada's Defence Procurement Strategy (DPS) applies to this project. Canada will receive ITBs equivalent to 100% of the contracted value for both the acquisitions and the In-Service Support.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

Major subcontractors

PAL Aerospace – St. John's, Newfoundland, Canada

CAE – Montreal, Quebec, Canada

Pratt & Whitney Canada – Longueuil, Quebec, Canada

L-3 WESCAM – Burlington, Ontario, Canada

Project phase

Implementation

December 2016

Project Closeout (expected)

2030-31

Major milestones

Expenditure Authority – Definition phase March 2012
Project Approval (Definition) March 2015
Project Approval (Implementation) December 2016
Contract Award December 2016
First Aircraft Delivery December 2019
Initial Operational Capability 2025-26
Final Aircraft Delivery 2026-27
Full Operational Capability 2029-30
Effective Project Closeout 2030-31

Progress report and explanation of variances

The FWSAR project is achieving project objectives, notably:

  • Project implementation approved and a contract was awarded to Airbus Defence and Space for the acquisition and In-Service Support on December 1, 2016;
  • The first Kingfisher aircraft was accepted in Spain in December 2019, and the fifteenth Kingfisher aircraft was accepted in December 2022;
  • Maintainer Initial Cadre Training and Aircrew Interim Training was conducted between October 2020 and May 2023;
  • Aircrew Initial Cadre Training was conducted between January and May 2024;
  • Aircrew and Maintenance conversion training is ongoing;
  • Release to Service of the CC-295 was approved by the Commander RCAF in March 2025;
  • The CC-295 officially commenced operations in Comox, British Columbia on May 1, 2025. On May 21, 2025, the first CC-295 rescue took place; and
  • Two aircraft are positioned at the next Main Operating Base (MOB) in Greenwood, Nova Scotia.

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

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

Schedule: The project achieved Initial Operational Capability in 2025-26 and Full Operational Capability will be achieved in 2029-30.

Work Plan: In fiscal year 2026-27, the project plans to:

  • Progress the certification and qualification programs;
  • Continue stand-up activities for MOB Winnipeg, in preparation for start of operations in January 2027; and
  • Accept the sixteenth and final Kingfisher aircraft.

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Project name

Future Fighter Capability Project

Description

The objective of the Future Fighter Capability Project (FFCP) is to successfully acquire and transition into service 88 advanced fighter aircraft to replace the existing CF-188 fleet, as well as the associated equipment, weapons, infrastructure, information technology, and sustainment services to support operations. This project will leverage Canadian capabilities and support the growth of Canada's aerospace and defence industries.

Project outcomes

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule, and expenditure authority.

The FFCP has the following project outcomes:

  • Deliver a fighter capability to execute the roles and missions demanded by the Government of Canada.

Following implementation, the FFCP project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces (CAF), 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;
  • Ensure that fleets are available as planned to meet training and operational readiness requirements;
  • Ensure that the CAF are able to anticipate, adapt and act (through operations) in response to Government of Canada priorities; and
  • Ensure Canada maintains relationships with Allies and Partners.

Industrial benefits

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. To date, 30 companies across Canada within the Canadian aerospace and defence industry have been awarded over $3.3B in contracts to support the global F-35 fleet, which will consist of over 3,000 aircraft in the coming years. In addition, Canada remains well positioned for maintenance opportunities on the global fleet. Canada has identified L3Harris MAS as the "strategic partner" for a potential F-35 air vehicle depot, and site surveys were conducted to identify opportunities for Canadian industry to support an F-35 engine depot.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

The United States Government
Lockheed Martin – Fort Worth, Texas, United States
Pratt & Whitney – East Hartford, Connecticut, United States

Major subcontractors

Northrop Grumman – Falls Church, Virginia, United States
BAE Systems – Falls Church, Virginia, United States
RTX Corporation (formerly Raytheon Technologies) – Arlington, Virginia, United States

Project phase

Implementation

December 2022

Major milestones

Project Approval (Definition)

November 2017

Amended Project Approval and Expenditure Authority/Contract - Approval (Implementation)

December 2022

Contract Award

December 2022

Amended Expenditure Authority (Implementation)

December 2024Footnote 1

First Aircraft Arrival – Luke Air Force Base (to support Canadian pilot and aircrew training)

2026

First Aircraft Arrival - Canada

2028

Initial Operational Capability

2029

Full Operational Capability (FOC)

2033

Effective Project Closeout

2034

Progress report and explanation of variances

Scope: DND is collaborating with PSPC and ISED to replace the existing CF-18 fighter fleet with the F-35A advanced fighter aircraft.

Cost: Cost pressures resulting primarily from technology insertions and external factors including foreign exchange rates, inflation, and labour and materials costs that have surpassed values forecasted previously. As a result, budget estimates are being updated. The impact of the imposition of tariffs by the United States on the acquisition of the F-35A remains under review.

Schedule: FFCP has continued to steadily progress project activities. 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) to maintain scheduled 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. Training of aircrew remains in alignment with First Aircraft Delivery to Luke Air Force Base (AFB) in 2026.

The FFCP project is achieving project objectives, notably:

  • Canada rejoined the Australia, Canada, United Kingdom Reprogramming Laboratory (ACURL) in March 2024;
  • FFCP, on behalf of Canada as an F-35 partner country, hosted the Joint Strike Fighter Executive Steering Board (JESB), in Ottawa in September 2024;
  • Sustainment and support activities progressed, and L3Harris MAS was identified as the "strategic partner" for a potential F-35 Air Vehicle depot;
  • Design reviews for multiple facilities located at Bagotville, Quebec and Cold Lake, Alberta were completed to progress site activation activities;
  • Production of the First CF-35A Main Wing Assembly began at Leonardo, Cameri, Italy;
  • Amended Project Approval, Contract Approval, and Expenditure Authority for the full scope of Implementation Phase to achieve FOC was received in December 2024;
  • Progress was made towards enabling acceptance and operations of the first aircraft to Canada with the formal endorsement of the Interim Operations Plan;
  • Provided the documentation required by the Auditor General (OAG) of Canada, who conducted a "Performance Audit of Canada's Future Fighter Jets" and tabled the report in June 2025; and
  • Delivered the main wing assembly for Canada's first F-35 to Lockheed Martin to begin fuselage assembly in September 2025.

Work Plan: In fiscal year 2026-27, the project plans to:

  • Receive Canada's first CF-35A aircraft at Luke AFB. The remaining aircraft will be received in late 2026 (Lot 18) in spring/summer 2027 (Lot 19);
  • Commence Canadian pilot training at Luke AFB;
  • Continue progressing project activities relating to the Interim Operations Plan and readiness for First Aircraft Arrival to CFB Cold Lake. This includes advancing infrastructure construction to support the operations and maintenance of the CF-35A; and
  • Progress activities to support the permanent Fighter Squadron Facilities at Cold Lake, Alberta and Bagotville, Quebec.

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Project name

Hornet Extension Project

Description

The Hornet Extension Project (HEP) will ensure that the Royal Canadian Air Force (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 F-35A fleet is expected to meet these commitments.

Project outcomes

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule and expenditure authority. 

The HEP has the following project outcomes:

  • Phase 1 of the project will deliver upgrades to the avionics and mission support systems for up to 82 CF-18 to ensure compliance with regulatory requirements and interoperability standards; and
  • Phase 2 of the project will deliver combat capability upgrades for 36 of the 82 aircraft.

Once the aircraft have been upgraded, they will be contributing to various Program Inventories under Operations and Ready Forces. The HEP will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the RCAF:

  • Provide a modernized CF-18 fighter fleet, which will contribute towards ensuring effective operations within Canada, North America, and internationally;  
  • Ensure Air and Space forces elements meeting Force Posture and Readiness requirements remain ready; and
  • Ensure the CF-18 fleet is available as planned to meet training and operational readiness requirements.

Industrial benefits

Industrial Technological Benefits (ITB) Policy will be considered for all acquisitions in excess of $20M to achieve 100% of total contract value in Canadian Content Value as Direct and Indirect ITB Transactions. The policy applies to three contracts: the Sniper Pod contract with Lockheed Martin and the APG-79(v)4 Radar and AIM-9X missile contracts with Raytheon.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

Innovation, Science and Economic Development (ISED)

Prime contractor

The project is being realized 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-18 contracts.

Major subcontractors

Arcfield - Calgary, Alberta, Canada
CAE - Arlington, Texas, United States
Collins Aerospace - Cedar Rapids, Iowa, United States
Collins Elbit Vision Systems - Fort Worth, Texas, United States
L3Harris - Mirabel, Quebec, Canada
Lockheed Martin - Orlando, Florida, United States
Mercury Systems Inc. - Torrance, California, United States
Raymond EMC Enclosures Ltd. - Ottawa, Ontario, Canada
Raytheon Intelligence & Space - El Segundo, California, United States
Raytheon Missiles & Defense - Tucson, Arizona, United States

Project phase

HEP Phase 1: Implementation
HEP Phase 2: Implementation

Major milestones

Project Approval (Definition) Phase 1

June 2019

Project Approval (Definition) Phase 2

May 2020

Project Approval (Implementation)

May 2020

Project Approval (Implementation) for remaining systems in Definition

December 2021

Contract Award (Implementation)

July 2022

Initial Operational Capability (IOC)

June 2024

Full Operational Capability (FOC)

June 2025 *

Project Closeout

December 2026 **

* Programme Management Board approved February 28, 2027 FOC

** Programme Management Board approved June 30, 2027 Project Closeout

Progress report and explanation of variances

The Hornet Extension Project is achieving project objectives, notably:

  • June 6, 2019: Project Approval (Definition) with Expenditure Authority received;
  • June 20, 2019: Independent Review Panel Defence Acquisition for Phase 2 completed;
  • September 27, 2019: Defence Procurement Strategy Governance Board Gate #1 for Phase 2 completed;
  • October 16-17, 2019: Integration meeting with the United States Navy/Air Force to finalize Phase 2 activities, delivery schedule, and costing completed;
  • November 29, 2019: Defence Procurement Strategy Governance Board Gate #2 and #3 completed for specific Phase 2 systems;
  • May 15, 2020: Approval (Definition) Phase 2 and (Implementation) with Expenditure Authority and Contracting Authority received;
  • February 26, 2021: Nine Letters of Offer and Acceptance from the United States Government have been accepted for acquisitions under the Foreign Military Sales program;
  • October 6, 2021: Sniper Pod enhancement contract awarded to Lockheed Martin;
  • December 9, 2021: Treasury Board Secretariat approval for full Implementation with amended Expenditure Authority and Contracting Authority received;
  • May 4, 2022: Special Access Program Facilities contract awarded to Raymond EMC Enclosures Ltd.; and
  • June 24, 2024: The project achieved IOC.

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. Delivery delays for AIM-120D training missiles are expected to be delayed to FOC to February 2027 and Project Closeout to June 2027.

For fiscal year 2026-27, the HEP is expected to deliver the remaining capability with a declaration FOC. The project will also transition support of the new systems to the in-service sustainment Weapons System Manager for the CF-18 Hornet.

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Project name

Interim Fighter Capability Project

Description

The objective of the Interim Fighter Capability Project (IFCP) is to acquire 18 surplus Australian F/A-18A/B aircraft, spares, and equipment to supplement Canada's existing CF-188 fleet to address the fighter capability gap. A secondary objective includes relocating the Aerospace Engineering Test Establishment (AETE) from Cold Lake, Alberta to the Ottawa Airport, including hangar renovations in Ottawa and the relocation of current occupants, to ensure the availability of suitable infrastructure for the expanded CF-188 fleet.

Project outcomes

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule, and expenditure authority. This project will also contribute to Program Inventory 6.2 Defence Infrastructure Construction, Recapitalization and Investment of the Departmental Results Framework. Its outcome is to ensure that the departmental infrastructure portfolio is 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;
  • Ensures Air and Space force elements meeting Force Posture and Readiness requirements remain ready; and
  • Ensures mission-ready aircraft are available as planned to meet training and operational readiness requirements.

Once the relocation of AETE from Cold Lake to the Ottawa Airport is complete, they will be contributing to various Program Inventories under Operations and Ready Forces as a strategic asset for the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Air Force (RCAF), by ensuring the timely implementation of new operational capabilities.

Industrial benefits

The Industrial and Technological Benefits (ITB) Policy of Canada's Defence Procurement Strategy (DPS) does not apply to the purchase of military equipment from a foreign government where a prime contractor is not involved. ITBs for the Canadian aerospace sector will be realized through opportunities for Canadian industry to provide additional In-Service Support to the supplementary F/A-18A/B aircraft.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

Acquired from the Australian Government through a Government-to-Government Purchasing Arrangement

Major subcontractors

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

Project phase

Implementation

November 2018

Major milestones

Project Approval (Definition)

February 2017

Project Approval (Definition amendment)

December 2017

Project Approval (Implementation)

November 2018

Purchasing Agreement Signed

November 2018

First Aircraft made available to Canada

February 2019

Initial Operational Capability

June 2019

Introduction to Service

June 2019

Commencement of Hangar 14 renovations

November 2022

Final Release to Service – All Aircraft

June 2023

14 Hanger renovation complete/furnished

December 2025

Full Operational Capability (FOC)

December 2026

Project Closeout

March 2027

Progress report and explanation of variances

The IFCP project is achieving project objectives, notably:

  • Prepared and transported a total of 18 Australian F/A-18 aircraft to Canada (the first two aircraft were delivered by the Royal Australian Air Force);
  • Completed aircraft acceptance and Canadianization to make the IFCP aircraft functionally identical to the existing CF-188 fleet and integrated them into the current fighter force structure for use in RCAF operations. The remaining seven aircraft will be harvested for spare parts used to support the CF-188 fleet until retirement;
  • Accepted delivery of additional spare parts and equipment which were made available from Australia;
  • Completed design and renovation of leased facility in Ottawa. Occupied with the leased facility, freeing 14 Hangar for renovations;
  • By March 2022, completed 14 Hangar design activities and commenced renovations; and
  • Completed tendering process and awarded contracts for Ottawa Hangar renovations.

Cost: Cost pressures associated with the modification of IFCP aircraft, integration of technical publications and construction costs in the Ottawa area, have resulted in significant budgetary pressures. All efficiencies with respect to equipment and infrastructure scope were explored and implemented. Infrastructure funding requirements appear to have stabilized, and the reduction in the number of aircraft being released to service has allowed the project to remain affordable. All project contingency funding has been released.

Schedule: FOC and Project Close out milestones have been delayed by approximately five to eight months, relative to approved re-baselined schedule, a result of additional delays in starting Hanger 14 renovations due to May 2022 storm damages repair and extended environmental remediation.

For fiscal year 2026-27:

  • The remaining seven aircraft will be harvested for parts of interest;
  • AETE's full occupancy in Hangar 14 is expected by March/April 2026; and
  • FOC and Project Close out are scheduled for early Spring 2027.

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Project name

Joint Support Ship

Description

The objective of the Joint Support Ship (JSS) project is to deliver two new support ships to replace the Royal Canadian Navy's (RCN) Auxiliary Oiler Replenishment vessels that have reached the end of their service. The capabilities required of the Joint Support Ships are crucial to the RCN. These new Protecteur-class ships will enable a Naval Task Group to remain at sea for extended periods of time. These vessels will provide core replenishment capabilities, plus added capacity for limited sealift and limited support to operations ashore.

Project outcomes

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

The JSS project will deliver two Joint Support Ships in support of the Canada's Defence Policy Strong, Secure, Engaged (SSE) strategic vision and primary missions (SSE initiative 29).

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

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

Industrial benefits

Canada's Industrial and Regional Benefits (IRB) Policy applies to this project. Canada will receive IRBs equivalent to 100% of the contracted value for the acquisition. In-Service Support of the vessels is managed separately under the AJISS (Arctic and Offshore Patrol Ships and Joint Support Ship In-Service Support) contract which was awarded in 2017.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

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

Major subcontractors

Serco Canada Marine Corporation – Ottawa, Ontario, Canada
Thales Canada Inc. – Ottawa, Ontario, Canada
Det Norske Veritas - Germanischer Lloyd Canada (DNV-GL) – Montreal, Quebec, Canada
ThyssenKrupp Marine Systems Canada Inc. – Ottawa, Ontario, Canada
VARD Electro – Tennfjord, Norway
VARD Electro Canada Inc. – Vancouver, British Columbia, Canada
Trident Maritime Systems – Crozet, Virginia, United States
L-3 Communications MAPPS Inc. – St. Laurent, Quebec, Canada
Hepburn Engineering Inc. – Toronto, Ontario, Canada
MAN Diesel and Turbo - Augsburg, Germany
Lockheed Martin Canada - Ottawa, Ontario, Canada
Navamar Inc. - Montreal, Quebec, Canada
OSI - Burnaby, British Columbia, Canada
Indal Technologies - Mississauga, Ontario, Canada
DRS Technologies - Ottawa, Ontario, Canada
Hawbolt Industries - Chester, Nova Scotia, Canada
Federal Equipment - Ohio, United States
Ultra Electronics - Dartmouth, Nova Scotia, Canada
Jastram Engineering – North Vancouver, British Columbia, Canada
Gibbs and Cox Maritime Solutions – New York, New York, United States
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, United States
Babcock Canada – Ottawa, Ontario, Canada

Project phase

Implementation
Closeout (expected)

February 2020
2029

Major milestones

Revised Project Approval (Definition) 1

June 2010

Revised Project Approval (Definition) 2

April 2014

Revised Project Approval (Definition) 3

December 2014

Revised Project Approval (Definition) 4

June 2015

Revised Project Approval (Definition) 5

August 2016

Revised Project Approval (Definition) 6

April 2018

Project Approval (Implementation)

February 2020

Award of Implementation Contract

June 2020

Revised Project Approval (Implementation)

June 2024

Delivery of first ship

2027

Delivery of second ship

2027

Initial Operational Capability

2028

Full Operational Capability

2028

Project Closeout

2029

Progress report and explanation of variances

The JSS project is achieving project objectives, notably:

  • 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 July 22, 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 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 JSS design and construction contracts, a contract was competitively awarded in 2019 to Navamar Inc. (Montreal), for the Sea-to-Shore connector systems. The final of four systems was delivered in September 2024;
  • JSS 1, HMCS Protecteur was launched on December 21, 2024; and
  • As of October 2025, there are 114 of JSS2's 115 blocks under construction with 74 structurally complete. JSS2 blocks show significantly more fit out of equipment prior to consolidation than JSS1 blocks exhibited at a similar point in construction.

Scope: The mandate to deliver two JSS 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 the COVID-19 pandemic affecting cost and schedule. Costing impacts of COVID-19 and schedule delays were updated in the June 2024 Treasury Board submission. Growth in rates (predominantly labour) greater than previous forecast have resulted in a requirement to seek further authorities.

Schedule: The Project schedule was reviewed and an updated schedule released in 2023 that included the COVID-19 impacts. As per terms of the Build Contract, the delivery date of JSS1 was set at its December 2024 launch. This further schedule revision has resulted in a proposed mid-2027 delivery of JSS 1, primarily due to volume of effort associated with first of class construction. JSS 2 is scheduled to be delivered in late 2027.

Work Plan: In fiscal year 2026-27, the project plans to achieve:

  • Launch of JSS 2;
  • Main switchboard light off on JSS 2; and
  • Sea trials for JSS 1.

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Project name

Light Armoured Vehicle Reconnaissance Surveillance System

Description

The Light Armoured Vehicle Reconnaissance Surveillance System (LRSS) project was initiated to replace 141 of the Canadian Army's Coyote armoured vehicle fleet with 66 state-of-the-art surveillance systems, integrated into 66 light armoured vehicles (LAV) 6.0 chassis.

Project outcomes

This project intended to contribute to Program Inventory 5.2 Land Equipment Acquisition of the Departmental Results Framework.

The LRSS project had the following project outcomes:

  • Deliver 66 LAV Reconnaissance variant vehicles; and
  • Deliver initial provisioning of surveillance system spares.

Were these vehicles to be introduced into service, they would have contributed to various Program Inventories under Operations and Ready Forces. The LRSS project will be de-scoped and will not deliver the following anticipated 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.

Industrial benefits

Canada's Industrial and Regional Benefits Policy applied to this project.

Canada will receive industrial and regional benefits equivalent to 100% of the contracted value from General Dynamics Land Systems-Canada.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

Major subcontractors

Leonardo DRS - Arlington, Virginia, United States

Project phase

Implementation
Close out (expected)

November 2014
Winter 2026-27

Major milestones

Project Approval (Definition)

December 2012

Project Approval (Implementation)

November 2014

Contract Award

February 2015

First Delivery

August 2023

Initial Operational Capability

Not Achieved

Full Operational Capability

Not Applicable

Project Closeout

Winter 2026-27

Progress report and explanation of variances

The LRSS project has achieved project objectives, notably:

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

Scope: The project will be de-scoped and closed out.

Cost: The project is within the budget established in 2014.

Schedule: The project 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. Given further anticipated delays, persistent technical complexities and technological advancements that have outpaced the original project scope, a decision to de-scope and close out the project was made.

Work Plan: In fiscal year (FY) 2026-27, the project is scheduled to Close Out.

Year-end Results: In FY year 2025-26, the project negotiated a mutually beneficial close out plan with the Prime Contractor, to include a planned donation of 66 combat-capable former LRSS LAV 6.0 vehicles to Ukraine.

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Project name

Logistics Vehicle Modernization Project

Description

The Logistics Vehicle Modernization (LVM) project will acquire a new fleet of light trucks with a 4 to 5 tonne cargo capacity; modules to mount on the trucks that will provide accommodation space to conduct various tasks (such as office space, command posts and workshops); trailers; and armoured protection kit 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 up to 25 years of service. The project will also fund new infrastructure and upgrades to existing infrastructure required to support the new fleets.

Project outcomes

This project contributes to Program Inventory 5.2 Land Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure Land equipment projects remain in approved scope, schedule, and expenditure authority.

The LVM has the following project outcomes:

  • Acquire light and heavy logistics fleets;
  • Deliver long-term In-Service Support; and
  • Build and upgrade infrastructure to support the new fleets.

Once the fleets are brought into service, they will contribute to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the CAF, specifically to the Canadian Army:

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

Industrial benefits

The Industrial and Technological Benefits (ITB) Policy including the Value Proposition will apply to the LVM Project. The ITB obligation will be equal to the value of the contract. The Economic Impact Assessment is also part of the solicitation process.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

General Dynamics Land Systems Canada (GDLS-C) – London, Ontario, Canada
Marshall Canada – Moncton, New Brunswick, Canada

Major subcontractors

The partners under GDLS-C/Marshall Canada will design and produce their respective parts of the LVM capability, with subcontractors in Canada and abroad, as follows:

Daimler, Mercedes Benz - Germany

  • Partner to produce Light and Heavy rolling chassis;

Soframe - France

  • Partner for integration of Flat Deck, LHS trailer, APKs, and Body Builder integration;

Manac - Saint-Georges, Quebec

  • To produce Light Trailers;

Broshuis - Netherlands

  • To produce Heavy Trailers;

Angloco - United Kingdom

  • To produce LVM Heavy Capability Firefighting Modules;

Steelcraft - Kitchener, Ontario

  • To produce LVM Heavy Flat Racks;

NP Aerospace - Burlington, Ontario

  • To produce Heavy Armoured Personnel Transport module (APTM);

Isometrics - North Carolina, United States

  • To produce Heavy Fuel and Water Modules; and

DEW Engineering - Miramichi, New Brunswick

  • To integrate the light capability.

Project phase

Implementation

May 2024

Major milestones

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

Amended Project Approval (Implementation)

Fall 2025

First Delivery

Fall 2027

Initial Operational Capability

Fall 2028

Full Operational Capability

Fall 2030

Effective Project Closeout

Fall 2031

Progress report and explanation of variances

The LVM Project is achieving project objectives, notably:

  • Acquisition and In-Service Support contracts were awarded to GDLS-C and Marshall Canada in a joint venture on May 23, 2024;
  • Preliminary Design Review for the light capability (light truck, various modules and trailers) started on October 28, 2024;
  • Collaborative Environment was delivered in November 2024; and
  • Light and Heavy Preliminary Design Review completed in October 2025.

Scope: Core acquisition scope remains unchanged. Amended Project Approval (Implementation) has been sought to exercise unfunded options through an amendment to the acquisition contract.

Cost: The cost remains unchanged to Expenditure Authority (Implementation). Contract amendment has been sought to seek amended Expenditure Authority (Implementation) to exercise unfunded options.

Schedule: Options delivery timelines will be negotiated with LVM Contractors. Options will be delivered after the core scope, no earlier than 2028.

Work Plan: In fiscal year 2026-27, the project plans to conduct the following activities:

  • Contractor-Conducted Durability Trial (Heavy), summer portion and winter portion;
  • Light User Trial and Heavy User Trial including Human Factors Evaluation trial;
  • Logistics Demo light capability (including Cyber Penetration Testing and Technician Pilot Initial Cadre Training); and
  • LVM First Equipment Delivery Support Readiness Verification - Light.

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Project name

Maritime Helicopter Project

Description

The objective of the Maritime Helicopter Project (MHP) is to acquire a new, multi-purpose maritime helicopter capability to support domestic and deployed operations well into the 21st century.

Project outcomes

This project contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule, and expenditure authority.

The MHP has the following project outcomes:

  • Acquire 28 fully equipped Maritime Helicopters;
  • Establish the delivery framework for 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 of 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 fleet is available as planned to meet training and operational readiness requirements; and
  • Contribute towards ensuring that operations in Canada, North America and internationally are effective.

Industrial benefits

Canada's Industrial and Regional Benefits (IRB) Policy applies to this project.

Canada will receive IRBs equivalent to 100% of the contracted value for the acquisitions and 80% of the contracted value for the In-Service Support portion from Sikorsky Aircraft.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

Lockheed Martin Sikorsky International Operations Incorporated – Stratford, Connecticut, United States

Major subcontractors

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

Project phase

Implementation
Closeout (expected)

November 2004
December 2030

Major milestones

Project Approval (Definition)

June 2003

Project Approval (Implementation)

November 2004

Contract Award

November 2004

Revised Project Approval (Implementation)

June 2014

First Delivery (Block 1 Maritime Helicopters)

June 2015

First Delivery (Block 2 Maritime Helicopters)

April 2018

Initial Operational Capability (IOC)

June 2018

Final Delivery

October 2025

Full Operational Capability

December 2029

Effective Project Closeout

December 2030

Progress report and explanation of variances

The MHP achieved project objectives, as follows:

  • The last of 28 CH-148 Cyclone helicopters were delivered in the Block 2 configuration in October 2025;
  • Three helicopters were upgraded to the final Capability Release 2.1 configuration in fiscal year (FY) 2024-25, bringing the total to seven. The remaining helicopters are expected to be converted in FY 2026-27, except for the long-term storage aircraft; most support services have undergone initial set up and are maturing;
  • All 12 frigates can support and sustain embarked CH-148 Cyclone operations for deployments, with some limitations on high sea states; and
  • Since the declaration of IOC in 2018, Cyclones have continuously supported domestic and international operations.

Scope: The project has experienced technical challenges and slippage through the implementation phase. There is an increasing scope risk that high sea states will not be achieved.

Cost: The Maritime Helicopter Project requested and obtained an increase in expenditure authority from the Treasury Board Secretariat (TBS) 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.

Schedule: The 2023 TBS approved baseline FOC milestone in 2026 will be delayed by pressures related to ship equipment procurement and delivery of full electronic warfare capability. FOC is currently expected in 2029 and Project Closeout in 2030.

For fiscal year 2026-27, the MHP will achieve:

  • Upgrading the second set of flight and mission simulators to the Capability Release 2.1 configuration; and
  • All aircraft will be modified to the final Capability Release 2.1 configuration, except for the long-term storage aircraft.

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Project name

Remotely Piloted Aircraft System

Description

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.

Project outcomes

This project contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework, and its outcome of ensuring that Aerospace equipment projects remain in approved scope, schedule, and expenditure authority.

The RPAS project has the following project outcome:

  • Deliver a RPAS capability that meets the requirements of the Canadian Armed Forces (CAF).

Once this new capability 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 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.

Industrial benefits

Canada's Industrial and Technological Benefits (ITB) Policy applies to the acquisition and sustainment of the Remotely Piloted Aircraft System. This requires industry to make investments in Canada equal to the value of the acquisition and in-service support contracts/agreements.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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. The Ground Control Centre will be built by Bird Construction Inc.

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

Major subcontractors

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

Project phase

Implementation

November 2023

Major milestones

Project Approval (Definition)

April 2019

Project Approval (Implementation)

November 2023

Contract Award (Implementation)

December 2023

First Delivery and Acceptance

Early 2028

Initial Operational Capability

2027-28 to 2029-30

Full Operational Capability

2030-31 to 2032-33

Project Closeout

2033-34 to 2034-35

Progress report and explanation of variances

The RPAS project is achieving project objectives, notably:

  • February 3, 2023: 14 Wing Greenwood Air Maintenance Detachment Infrastructure Modified Design-Build (MDB) contract awarded;
  • May 23, 2023: Infrastructure MDB Contract awarded for the Ground Control Centre (GCC) in Ottawa, Ontario;
  • November 23, 2023: Amended Project Approval and Expenditure Authority for Implementation granted;
  • December 18, 2023: Direct commercial sale contract signed with General Atomics Aeronautical Systems Inc. (GA-ASI);
  • December 18, 2023: Foreign Military Sale (FMS) case signed with the United States Government;
  • October 2024: Assemblies (wings, fuselage, etc.) for the first two aircraft entered the GA-ASI production line;
  • November 2024: Modified Design Build contract for Air Maintenance Detachment (West) at 19 Wing Comox for Design Phase awarded to Maple Reinders Constructors Ltd.;
  • January 2025: Canada joined the MQ-9 International Cooperation Support Partnership;
  • February 2025: Commander RCAF approved CQ9B Guardian designation for the RPAS fleet;
  • Sustainment Preliminary Design Review was completed during the week of May 12, 2025; and
  • Ground Control Centre construction at Uplands started on July 30, 2025.

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 fiscal year 2026-27, the project plans to:

  • Produce the first RPAS Test Article and initiate Qualification Testing and Evaluation;
  • Advance Airworthiness Certification and Accreditation;
  • Continue construction of the Ground Control Centre;
  • Execute Cyber Mission activities; and
  • Conduct sustainment activities, including developing training programs and publications.

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Project name

River-Class Destroyer Project

Description

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

Project outcomes

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

This project will also support Program Inventory 6.2 Defence Infrastructure Construction, Recapitalization and Investment of the Departmental Results Framework, although DND infrastructure required to support RCD ships was removed from the direct scope of the RCD project through Authorities established in 2025. Associated infrastructure will now be treated as part of a broader modernization of naval infrastructure, and an effective strategy to fund and manage the full scope of required infrastructure still needs to be developed with urgency. The outcome of the Program Inventory 6.2 is to ensure that Defence Infrastructure Projects are adequately funded and efficiently delivered.

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 be contributing to various Program Inventories under Operations, Ready Forces and Sustainable Bases Information Technology Systems and Infrastructure. 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 ensuring operations within Canada, North America, and internationally are effective;
  • Ensures Maritime Forces Elements are deployable in support of Force Posture and Readiness; and
  • Ensures fleet are available as planned to meet training and operational readiness requirements.

Industrial benefits

The Industrial and Technological Benefits (ITB) Policy of Canada's Defence Procurement Strategy (DPS) applied to the evaluation and selection of an existing warship design and design team to design the River-Class Destroyers. Canada will receive equivalent to 100% of the contracted value for both the acquisition and the In-Service Support contracts.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

Irving Shipbuilding Inc. - Halifax, Nova Scotia, Canada

Major subcontractors

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

Project phase

Implementation

February 2025

Major milestones

Project Approval (Definition Phase 1)

June 2012

Revised Project Approval (Definition Phase 1)

December 2014

Request for Proposal Release

October 2016

Revised Project Approval (Definition Phase 2)

June 2017

Contract Award (Definition Phase 2)

February 2019

Revised Project Approval (Definition Phase 2)

May 2019

Revised Project Approval (Definition Phase 2)

March 2021

Revised Project Approval (Definition Phase 2)

December 2022

Cut Steel (Low-Rate Production)

June 2024

Project Approval (Implementation)

February 2025

Implementation Contract Award

March 2025

Full Rate Production

April 2025

First Delivery

2032-33

Progress report and explanation of variances

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 May 1, 2015;
  • Prequalification of bidders was completed in October 2015;
  • An initial reconciliation of requirements was completed in October 2015;
  • The refined procurement strategy was announced in June 2016;
  • Over the summer of 2016, Canadian Industry and the pre-qualified short-listed respondents were engaged on the draft Request for Proposals (RFP). Irving Shipbuilding Inc. released the RFP on October 27, 2016;
  • Canada's Defence Policy Strong, Secure, Engaged, was released on June 7, 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, Nova Scotia;
  • December 10, 2021: The project entered Preliminary Design Review (PDR);
  • 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;
  • June 2024: The class name was announced as the River-class Destroyer at the start of low-rate production;
  • March 2025: Implementation contract awarded to Irving Shipbuilding Inc. for the construction of the first three River-class destroyers; and
  • April 2025: Start of Full Rate Production of Batch 1 Ships.

Scope: Industry was engaged in early 2016 on a potential refinement to the procurement strategy to competitively select an existing warship to modify rather than to develop a new design. Informed by this engagement, Government announced the approval of the refined procurement strategy on June 13, 2016. The project remains on track to achieve the scope as approved in May 2016.

Cost: Following extensive analysis, the cost to build and deliver Batch 1 ships has been established at $22.2B. This estimate includes material and labour costs associated with ship construction, initial spares, training, maintenance and logistics support products required to support the ships in service and ammunition. The estimate includes not only the costs of Canada's Implementation Contract with Irving Shipbuilding Inc., but also costs associated with the delivery of equipment, systems and ammunition for which Canada is responsible to deliver as Government Supplied Materiel, procured by Canada, either through the United States Foreign Military Sales Program or through other contracts directly with equipment suppliers.

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. 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 fiscal year 2026-27, the project plans to:

  • Achieve Critical Design Review;
  • Complete the Keel Laying First Block;
  • Continue the construction of a Land Based Test Facility located at Hartlen Point, Nova Scotia; and
  • Initiate the Procurement of Batch 2 Long Lead Items.

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Project name

Strategic Tanker Transport Capability

Description

The Strategic Tanker Transport Capability (STTC) project will provide the Royal Canadian Air Force (RCAF) with the ability to refuel aircraft in flight (Air-to-Air Refueling (AAR)) and the ability to provide airlift for personnel and equipment including aeromedical evacuation. The multi-role platform will provide AAR for both domestic and expeditionary coalition operations, while complementing the strategic airlift capabilities of the RCAF fleet. The STTC aircraft will have the adaptability to transfer between strategic AAR and strategic airlift roles with minimal changes to aircraft configuration. By incorporating the increased scope that came with the June 2023 inclusion of NORAD Modernization's Additional Air-to-Air Refuelling Initiative, 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.

Project outcomes

This project will contribute to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule and expenditure authority.

The STTC project has the following outcomes:

  • Provide Air-to-Air Refueling to enable CAF force elements; and
  • Provide strategic cargo and passenger transport in support of Government of Canada objectives.

The STTC project will deliver against the core responsibilities of DND/CAF:

  • Meet its NORAD obligations;
  • Meet commitments to NATO Allies; and
  • Contribute to international peace and stability through various deployments, deploy Disaster Assistance Response Team, and conduct Non-Combatant Evacuation Operations.

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

Major subcontractors

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

Project phase

Implementation

June 2023

Major milestones

Project Approval (Definition)

December 2020

Project Approval (early implementation)

June 2022

Project Approval (Implementation)

June 2023

Contract Award (Aircraft Acquisition)

June 2023

Contract Award (Sustainment)

2026

Initial Operational Capability

2028-29

Full Operational Capability

2032-33

Project Closeout

2032-33

Progress report and explanation of variances

Scope: The project is on track to deliver the June 2023 approved increased 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 Request for Proposals (RFP) for acquisition of STTC multi-role aircraft released to Qualified Supplier;
  • June 2023: Contracting and amended Expenditure Authority (Implementation) achieved;
  • June 2023: Contract award for acquisition of three additional used A330-200 aircraft, and contract award for procurement of four new A-330 Multi-role Tanker Transport (MRTT) aircraft and conversion of five used A-330 aircraft;
  • March 2024: CC-330 Main Operating Base (MOB)-East announced to be 8 Wing Trenton, Ontario, with additional announcements for Western and Forward Operating Location in 2025;
  • May 2024: Qualified Suppliers for Maintenance and Materiel Support elements of Long-Term In-Service Support (LT ISS) publicly released;
  • July 2024: Defence Construction Canada issued contract award for Modified Design Builder of CC330 facilities at MOB-East, 8 Wing Trenton;
  • September-October 2024: Third and fourth used A330-200 delivered and registered as CC-330001 and CC-330004;
  • November 2024: Final RFP for LT ISS work packages released to Qualified Suppliers;
  • February 2025: Contract award for MOB-East 8 Wing Airfield works to Strong Brothers Construction Ltd.;
  • March 2025: Fifth and final used aircraft accepted by Canada, first new aircraft on the Final Assembly Line at Airbus SAS in Toulouse, France;
  • March 2025: Early Implementation siteworks at MOB-East began with tree clearing for future CC-330 Hangar;
  • Delivered in-service support to three used CC-330 Husky aircraft in support of numerous DND/CAF strategic airlift missions;
  • Continued development and design of STTC Project Infrastructure at Eastern and Western MOB, and Forward Operating Location;
  • March 2025: Fifth used A330-200 delivered and registered as CC-330005;
  • June 2025: First new A330-200 flown from Toulouse, France to Getafe, Spain, to commence conversion to MRTT;
  • July 2025: Minister of National Defence participated in a groundbreaking ceremony in Trenton for MOB-East CC-330 Husky infrastructure works; and
  • July 2025: Evaluation of LT ISS bids completed.

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 LT ISS in late 2025.

Work Plan: In fiscal year 2026-27, after having received remaining Implementation Authorities for LT ISS and infrastructure, the project plans to achieve the following:

  • Continue implementation of Aircraft Acquisition contract activities with Airbus Defence and Space, including activities focused on aircraft certification, qualification, flight test readiness reviews, and all associated Integrated Logistics Support setup activities related to Maintenance, Materiel and Training elements of the acquisition contract;
  • Track production and transfer of second new Airbus A330-200 aircraft from manufacture in Toulouse, France to initiation of conversion activities in Getafe, Spain;
  • Continue delivery of in-service support to three used CC-330 Husky aircraft in support of RCAF strategic airlift missions, and collaborate with Interim in-service support provider on the fleet maintenance program and planning to ensure readiness of used aircraft for future MRTT conversion activities at Airbus in Getafe, Spain;
  • Initiate implementation of LT ISS work packages to Maintenance, Materiel, OEM and Training System Support Contractors, including kick-off and progress review meetings, receipt, review and exchange of LT ISS Work Package contract deliverables;
  • Preparations for Sustainment Readiness Verification, as an enabling milestone to be completed ahead of first aircraft delivery;
  • Continue infrastructure development and design activities associated with CC-330 Husky facilities to be constructed at MOB-East 8 Wing Trenton;
  • Continuation of infrastructure development and design activities associated with CC-330 Husky facilities at MOB-West Edmonton, and northern Forward Operating Location; and
  • Anticipate release of tender and eventual contract award of modified design-build or design-bid-build infrastructure contracts for activities at MOB-West and Forward Operating Location.

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2026-03-13