Status report on Transformational and Major Crown Projects

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

The AOPS project has the following outcomes:

• Acquire six Arctic and Offshore Patrol Ships;
• Deliver associated jetty infrastructures in Halifax;
• Contribute funding to associated jetty infrastructure project in Esquimalt;
• Deliver a berthing and fueling facility at Nanisivik, Nunavut; and
• Acquire associated Integrated Logistics Support products.

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

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

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

Department of National Defence (DND)

Public Services and Procurement Canada (PSPC)

Innovation, Science and Economic Development Canada (ISED) and its regional agencies
Department of Fisheries and Oceans (DFO), for two ships for the Canadian Coast Guard

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.

• Gibbs & Cox – Arlington, Virginia, USA
• 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

The AOPS project is achieving project objectives, notably:

• In accordance with the 2012 approved budget, the Definition Contract was completed in November 2015 under budget;
• With the official cutting of steel, the lead ship in the class, HMCS Harry DeWolf, entered full production in September 2015;
• With the official cutting of steel, the second ship in the class, 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 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;
• HMCS Harry DeWolf was delivered to the Royal Canadian Navy in July 2020;
• The jetty infrastructure project in Halifax was completed in July 2019 and is ready to berth the AOPS and other ships of the fleet; and
• The jetty infrastructure project in Esquimalt is progressing and is on track to be in place when required.

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

Cost: In November 2018, the Government of Canada approved the increased budget to build a sixth AOPS and to extend the production schedule. An assessment is ongoing to confirm cost and schedule impacts resulting from the COVID-19 pandemic.

Schedule: In November 2018, the Government of Canada approved the extension of the production schedule by 18 months, thereby mitigating part of the production gap between the AOPS and Canadian Surface Combatant construction. An assessment is ongoing to confirm cost and schedule impacts resulting from the COVID-19 pandemic.

Year-End Results: In Fiscal Year 2020-21, the first of class, HMCS Harry DeWolf, was delivered upon successfully completing sea trials. The ship successfully navigated the waters off the coast of Newfoundland and Labrador and ice off the coast of Nunavut, crossing the 60th parallel in February 2021. While respecting COVID-19 restrictions, construction of an additional three ships progressed, along with numerous inspections, tests and trials. The COVID-19 pandemic and associated restrictions have impacted the project’s schedule and budget, primarily due to effects on production efficiency. The summer 2020 construction season of the Nanisivik Naval Facility was impacted by the COVID-19 pandemic, and the facility is now scheduled to be operational in the summer of 2022.

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 the approved scope, schedule and expenditure authority.

The ACSV Project will procure 360 Armoured Combat Support Vehicles.

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

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

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

The ACSV is achieving project objectives, notably:

• Production started in May 2020;
• Critical Design approval for Ambulance variant achieved; and
• First ACSV, a Troop Cargo Vehicle variant, produced by General Dynamics Land Systems Canada in December 2020.

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

Cost: The project is within the 2019 approved budget.

Schedule: Qualification testing of Troop Cargo Vehicle will continue through the end of Fiscal Year (FY) 2021-22. The project is currently on schedule to complete Final Design Work for Type II variants in 2022.

Year-End Results: In FY 2020-21, the ACSV project substantially completed design reviews on the first three variants and commenced qualification testing on the first variant produced.

The combined objective of the CP-140 Aurora Incremental Modernization Project (AIMP) and the Aurora Structural Life Extension Project (ASLEP) is to modernize and extend the life of Canada’s 14 CP-140 Aurora aircraft in order to maintain the fleet’s operational capabilities until the fleet’s current planned retirement date of 2030 (a study is underway to assess life extension to 2040). This work will provide the capability to conduct Intelligence, Surveillance and Reconnaissance (ISR) and Anti-Submarine Warfare (ASW) in order to detect threats to Canadian security as early as possible.

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

AIMP has the following project outcomes:

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

ASLEP has the following project outcome:

• Deliver structural upgrade on 14 CP-140 Aurora aircraft.

Once the fleets have been introduced into service, they will be contributing to various Program Inventories under Operations and Ready Forces. The CP-140 Aurora Incremental Modernization/Structural Life Extension Projects will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Air Force (RCAF):

• Provides a modernized aerospace fleet, which will contribute towards ensuring that operations within Canada, North America, and on an international scale are effective; 
• Ensures that Air and Space forces Elements meeting Force Posture and Readiness requirements remain ready; and
• Ensures that the fleet is available as planned to meet training and operational readiness requirements.

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

AIMP:

ASLEP:

The AIMP and ASLEP projects have achieved several project objectives, notably:

• AIMP:
  • Blocks I, II and III are complete and have delivered a modernized CP-140 ISR and ASW capability to the RCAF; and
  • Block IV is unfolding, with aircraft modifications work underway at IMP Aerospace until 2024.

• ASLEP:
  • All 14 aircraft have received structural life extension; and
  • The project is in the Closeout phase.

Scope: ASLEP has delivered its full approved scope. The AIMP Block IV is facing challenges to complete the scope. The Department is assessing options to address the pending issues.

Cost: ASLEP is on track to deliver within the 2015 approved budget. The Department is assessing options to address a forecasted modest shortfall in the budget to complete AIMP.

Schedule: As a result of delays in engineering, various technical issues and materialized risks, AIMP Block IV IOC and FOC dates have been delayed from the 2015 approved schedule.

Year-End Results: In Fiscal Year 2020-21, the final ASLEP aircraft was delivered, achieving FOC on 24 April 2020. AIMP Block IV has modified three aircraft, with two more aircraft undergoing modification.

The objective of the Canadian Cryptographic Modernization Program (CCMP) is to modernize the Government of Canada’s aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada’s ability to establish secure communications both nationally and internationally.

CCMP is an Omnibus Project that includes multiple sub-projects for modernizing cryptographic equipment and a cyclical project for modernizing the key management infrastructure.

This project currently contributes to Program Inventory 5.4 Defence Information Technology Systems Acquisition, Design and Delivery of the Departmental Results Framework. Its outcome is to ensure that Information Technology capabilities address a capability gap or deficiency.

The CCMP Omnibus Project will deliver affordable information protection to departments and agencies in the Government of Canada by means of the following sub-projects:

• Classified Security Management Infrastructure (CSMI);
• Secure Voice / Telephone Family;
• Link Encryption Family;
• Secure Mobile Environment;
• Network Encryption Family;
• Combat Identification Family (Identification Friend or Foe (IFF)); and
• Secure Radio Family:
  • Secure Radio Sub-Project; and
  • Combat Net Radio Enhancement (CNRE) – this project received funding toward cryptography from CCMP, but it is not a Defence CCMP sub-project.

Once the project is complete, it will be contributing to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces:

• Protect and defend critical military platforms and networks from electronic warfare and cyber-attack, and exploit vulnerabilities of an adversary through cyberspace.

CCMP Sub-project Dates:

The CCMP Omnibus project is achieving project objectives, notably:

• The Secure Voice / Telephone Re-Key Infrastructure sub-project was completed in September 2009: under budget, within scope, schedule extended;
• The CSMI Phase 1B sub-project was completed in March 2012: under budget, within scope, schedule extended;
• The Secure Voice / Telephone Family sub-project was completed in December 2011: under budget, within scope, schedule extended;
• The DND Link Encryption Project was completed in March 2013: under budget, within scope, schedule extended;
• The CSMI Phase 1A sub-project was completed in September 2018, under budget, within scope, schedule extended;

• The CSMI Phase 2A sub-project was completed in March 2019, under budget, within scope, schedule extended;
• The Network Encryption Family sub-project was completed in June 2020, under budget, within scope, schedule extended; and

• The Combat Identification (IFF Mode 5) sub-project was completed in August 2020, under budget, within scope, schedule extended.

Scope: The CCMP Omnibus Project is on track to deliver its 2005 approved scope.

Schedule: The schedule is dependent on the United States (U.S.) Cryptographic Modernization Initiative and the Key Management Infrastructure Program. Canada’s collaboration with the United States of America allows Canada to leverage U.S. research and development and maintain interoperability with its Allies. Completion dates for the sub-projects are regularly reviewed for alignment with the U.S. initiative/program.

The CCMP Omnibus Project that was originally expected to end in 2016 has been extended to Fiscal Year 2025-26, pending approval, due to increased complexity, delays in the CSMI Project that relies on the U.S. Key Management Infrastructure Program, and delays in U.S. development of solutions and implementation on weapon platforms such as ships, submarines and aircraft.

Year-End Results: In FY 2020-21, CCMP achieved the following:

CSMI Phase 2B – CSE prepared a CSMI Phase 2B Amended Treasury Board (TB) submission outlining a revised way forward for CSMI. The submission is scheduled for presentation to TB in April 2021.

DND Network Encryption Family Sub-Project – Completed Link, Network and Fleet Broadcast encryptor implementation on Halifax-class ships. Having completed all land-based installations in 2016 and all ships in 2020, the project reached Full Operational Capability (FOC) in March 2020 and closed in June 2020.

DND Combat Identification (IFF Mode 5) – Completed the delivery of all encryptors required for the modernization of land, air, and sea-based IFF Mode 5 systems. The project continued to support IFF Mode 5 training and system certifications until its FOC in March 2020. The project closed in August 2020.

DND Secure Radio – Completed the delivery and fielding of selected backpack and handheld secure radios and received initial quantities of required end cryptographic units to start engineering, integration, and testing with legacy communication systems. Expected completion date of this sub-project is June 2026, pending approval.

CNRE – Full rate production is proceeding on schedule. Project Closeout was extended to March 2022 to complete delivery of cables and Satellites on the Move.

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

The CSC project has the following project outcomes:

• Recapitalize the capability currently found in Canada’s frigates and retired destroyers;
• Acquire associated integrated logistics support;
• Deliver associated infrastructure; and
• Define and award In-Service Support contract(s).

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

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

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

The CSC project is achieving project objectives, notably:

• Government officials announced in January 2015 that Irving Shipbuilding Inc. will be the prime contractor for the CSC project;
• Government officials announced the initial procurement strategy on 1 May 2015;
• Prequalification of bidders was completed in October 2015;
• An initial reconciliation of requirements was completed in October 2015;
• The refined procurement strategy was announced in June 2016;
• Over 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 27 October 2016;
• Canada’s Defence Policy, Strong, Secure, Engaged, was released on 7 June 2017, citing the procurement of 15 Canadian Surface Combatants with an updated overall project budget;
• 30 November 2017: CSC RFP closed and initial bids received;
• 4 December 2017: Bid evaluation process commenced;
• 16 October 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;
• 7 February 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; and
• 5 November 2019: The project substantially completed the Requirements Reconciliation Phase and commenced Preliminary Design. Final administrative action is underway to close out Requirements Reconciliation early in Fiscal Year (FY) 2021-22.

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

Cost: The current Definition Phase initially focused on requirements reconciliation and is now in Preliminary Design to evolve the ship design. Completion of the individual design phases will progressively inform the costing of the project. This activity is being jointly undertaken by project staff, Irving Shipbuilding Inc. and its sub-contractors. Project costs have been revalidated through financial reviews conducted to support the project’s March 2021 Revised Project Approval (Definition Phase 2) corporate submission.

Schedule: Following Definition Contract award in February 2019 and progress through the initial two years of design, the current Definition Phase is now expected to take five years to support the start of ship construction in 2023-24. While work is still underway with Canada’s prime contractor, Irving Shipbuilding Inc., to optimize a build schedule, first ship delivery is now expected to occur in the early 2030s. The revised ship delivery schedule recognizes the complexity of the CSC design and is informed by best practices and lessons learned through allies who are building variants of the same design.

Year-End Results: In FY 2020-21, the CSC project progressed the remaining work to complete Requirements Reconciliation, and work is underway to close out that phase in FY 2021-22. The project achieved a successful joint (DND/PSPC) corporate submission to obtain the authorities necessary to acquire the required long lead items, to progress the design to support the start of construction in 2023-24, and to design and build a Land Based Test Facility that is essential to supporting ship design, integration, build and acceptance activities. Throughout the fiscal year, the project progressed Preliminary Design, with completion of Preliminary Design targeted for mid-2022.

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

In addition, the CMLU Project will support results for CR 1: Operations and CR 2: Ready Forces, specifically:

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

This Project will address capability deficiencies and extend the fleet of CH-149 Cormorant aircraft’s Estimated Life Expectancy to at least 2042 by:

• Reducing total cost of ownership through the replacement of obsolete systems and equipment and providing aircraft improvements to the latest configuration;
• Increasing the fleet size to be able to return a full Rotary Wing SAR compliant capability to the Trenton Main Operating Base;
• Upgrading the avionics, communications and sensor systems; and
• Upgrading training resources through the creation of a Rotary Wing SAR Training Centre that includes a flight simulator and other training devices.

The overall outcome of the project will be a combination of improved aircraft availability, improved equipment capability to support more successful searches and reduce search times, and the potential of increased interoperability with fixed wing SAR and other search agencies to provide operational efficiencies and enhance SAR outcomes.

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 objectives:

• Leverage investments that maximize direct opportunities for Leonardo’s Canadian sub-contractors on the CH149 fleet in Key Industrial Capability areas and opportunities where technologies developed in Canada can be easily integrated into the existing design;
• Leverage investments from Leonardo that enable it to grow its presence in Canada and broaden its Canadian supply base in line with its main areas of business, defence, aerospace and space; and
• Seek opportunities in Supplier Development, Research and Development and investments in Skills Development and Training activities, including under-represented groups.

The actual benefits to Canadian industry and the regions that will benefit from the project will be dependent on the final Project solution to be adopted.

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

The CMLU Project pursued its Definition activities. Upon review of the May 2020 Contractor Proposal and determination that the proposal was unaffordable, the Project started investigating alternate solutions.

Scope - Negotiations with the contractor were put on pause due to the proposals being unaffordable. The project office and the Royal Canadian Air Force are investigating alternate solutions within the approved budget to address emerging obsolescence. Project solutions may not meet all the current High Level Mandatory Requirements.

Schedule - The investigation of alternate solutions may delay the current Estimated Project Approval Implementation milestone of June 2022. Key milestones such as First Aircraft Delivery, Initial and Full Operational Capability, etc., which are dependent on Contract Award, will be adjusted once the Contract Award date has been confirmed.

Budget (Definition) – The Project may need additional Project Approval Definition funds should the Definition phase extend past June 2022, which is possible given the need to investigate alternate solutions.

Year-End Results: In FY 2020-21, the CMLU project achieved the following:

• Following the release of a Request for Proposal in January 2020, a Contractor proposal was received mid-May 2020;
• Canada then engaged with the Contractor to reconcile Non-Compliances and outstanding issues. Ultimately the proposal proved to be unaffordable;
• The Project then began investigating alternate solutions. This unforecasted requirement to investigate alternate solutions requires the extension of the Definition phase and will delay the original Implementation target date; and
• Of note, during this same period, the CH-149 fleet achieved a minimum average of 99.5% SAR operational availability at each of the current three main operating bases (Comox, Greenwood, and Gander) and was able to maintain aircrew training.

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure that Aerospace equipment projects remain within the 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 reduce search times across Canada’s AoR.

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 that operations within Canada, North America, and on an international scale remain effective; 
• Ensure that the Air and Space forces elements for Force Posture and Readiness requirements remain ready; and
• Ensure that the fleets available are as planned to meet training and operational readiness requirements.

The primary beneficiary is the Canadian population who require Search and Rescue Services.

Department of National Defence (DND)

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

The FWSAR project is achieving project objectives, notably:

• The FWSAR project received Project Approval for the Definition Phase in the spring of 2015;
• The Request for Proposal was released on 31 March 2015;
• The bid evaluation was completed during the summer of 2016;
• A contract was awarded to Airbus Defence and Space on 1 December 2016;
• The ground breaking for the Comox Training Centre occurred in January 2018;
• The assembly of the first CC-295 aircraft began in September 2018;
• During Fiscal Year (FY) 2018-19, the critical design reviews were completed for aircraft, training devices and the ISS solution;
• The first Kingfisher aircraft was accepted by the Government of Canada in Spain in December 2019; and
• The aircraft maintenance trainer arrived in Comox, British Columbia, from Spain in February 2020.

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

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

Schedule: During this reporting period, the project completed re-baseline of its schedule, which accounted for the overall workload and complexity of the work remaining, and COVID-19 impacts.

Year-End Results: In FY 2020-21, the FWSAR Aircraft Replacement Project achieved the following:

• Accepted an additional four aircraft in Spain, bringing the total number of aircraft accepted by Canada to five;
• Delivered to Canada from Spain in September 2020 the first aircraft originally accepted in December 2019; and
• Accepted six of the seven training devices, followed by the commencement of the aircrew and maintainer training within the newly constructed CC-295 Training Centre in Comox, British Columbia.

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

The FFCP has the following project outcomes:

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

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

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

The Industrial and Technological Benefits (ITB) Policy, including Value Proposition (VP), applies to the Future Fighter Capability Project to ensure that long term, high-quality economic benefits are leveraged for Canadian industry. As part of their bid package, FFCP eligible Suppliers are required to submit a proposal to make investments in Canadian industry that align with Canada’s VP objectives.

More specifically, Canada has implemented a VP that seeks to motivate generational investments in Canada’s aerospace and defence industries over the coming decades, and that drives innovation, exports and skills development in Canada’s Key Industrial Capabilities, including such areas as In-Service Support, Aerospace Systems and Components and Space Systems.

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

Cost: An acquisition budget of $15B-$19B Canadian was announced as part of Canada’s Defence Policy, Strong, Secure, Engaged. The project’s implementation budget will be informed by ongoing project definition work, including engagement with governments and industry, and is contingent on approval as part of the Project Approval process for Implementation.

Schedule: Notwithstanding adjustments and minor delays due to the COVID-19 pandemic and associated work restrictions, project activities continued to progress in 2020. Three eligible suppliers submitted competitive proposals in July 2020, and the evaluation of the Proposals is ongoing. Infrastructure activities also progressed, with detailed design ongoing for an aircraft agnostic Fighter Squadron Facility in each Cold Lake and Bagotville. The next major milestone is the completion of the ongoing evaluation and the selection of the bidder or bidders moving on to the next phase, expected in 2021.

Year-End Results: In Fiscal Year 2020-21, the FFCP has achieved the following:

Fighter Capability Acquisition:

• 31 July 2020: The Government of Canada received bids from all three suppliers currently eligible to participate in the future fighter competitive procurement process; and
• Proposals are being rigorously assessed on elements of capability, cost, and economic benefits. The evaluation also includes an assessment of bidders’ impact on Canada’s economic interests.

Infrastructure in support of the Future Fighter Capability:

• 20 May 2020: Canada issued a Request for Proposal for the design and construction of a new fighter jet facility at 4 Wing Cold Lake. This facility will host three fighter squadrons and space for daily operations, maintenance, and training;
• 17 June 2020: Canada issued a second Request for Proposal, this time for the design and construction of a new fighter jet facility at 3 Wing Bagotville. This facility will host two squadrons and will include space for daily operations, maintenance and training; and
• On 13 August 2020, a $9.2 million design contract for a Fighter Squadron Facility in Cold Lake, Alberta was awarded, and a similar $12.1M contract was awarded on 28 September 2020, for a Fighter Squadron Facility in Bagotville, Quebec. These contracts enable the commencement of design and site preparation work for infrastructure that is not aircraft specific.

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

The PDMSU project has the following project outcomes:

• Develop an improved point defence missile as part of a 12-country initiative;
• Acquire and integrate an upgraded Point Defence Missile System for the Halifax-classships; and
• Acquire stock of the ESSM Block 2.

Once introduced into service, the missile and its capabilities will be contributing to various Program Inventories under Operations and Ready Forces. The PDMSU project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Navy:

• Provide improved capabilities which will contribute towards ensuring that operations within Canada, North America, and on an international scale are effective; and
• Acquire new capabilities to ensure that Canada and North America are defended against threats and attacks.

The development work, performed under the ESSM Block 2 Engineering and Manufacturing Development Memorandum of Understanding (MOU), consists of Government work and industrial work. While the Government work will be performed primarily by the United States Government, the industrial work is shared among the contributing participants in accordance with their cost share percentages.

Work share for the Implementation Phase is governed by the MOU for the Production of the ESSM Block 2, with work share based on the country’s percentage of total missiles acquired. As a result, the work share is 100% of the value associated with the production of the contracted missiles.

Canada’s Industrial and Regional Benefits (IRB) Policy does not apply to this project.

The PDMSU project has achieved project objectives, notably:

• Canada signed the ESSM Block 2 Engineering and Manufacturing Development MOU on 12 November 2014; and
• Canada signed the ESSM Block 2 Production MOU on 29 March 2017.

Scope: The project is on track to deliver its 2017 approved scope.

Cost: The project is currently within its 2017 approved budget.

Schedule: The PDMSU project is on track to deliver the project milestones in accordance with its 2017 approved schedule, although the first missile delivery is now scheduled for mid-2021.

Year-End Results: In Fiscal Year 2020-21, the PDMSU project continued the development of the Combat Systems software upgrade, updated the missile/canister simulation unit, performed an initial set of shipboard testing of complete Block 2 solution, and performed vibration and shock testing to qualify the Packaging, Handling, Storage and Transportation solution.

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

The HEP project has the following project outcomes:

• Phase 1 of the project will deliver upgrades to the avionics and mission support systems for up to 94 CF-188 to ensure compliance with regulatory requirements and interoperability standards; and
• Phase 2 of the project will deliver combat capability upgrades for up to 36 aircraft.

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

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

• Raytheon Intelligence & Space, Arlington, Virginia, USA
• Raytheon Missiles & Defense, Tucson, Arizona, USA
• Lockheed Martin, Orlando, Florida, USA
• Northrop Grumman Corporation, Falls Church, Virginia, USA
• The Boeing Company, St Louis, Missouri, USA
• Collins Aerospace, Cedar Rapids, Indiana, USA
• L3Harris, Arlington, Texas, USA
• L3Harris, Mirabel, Quebec, Canada

• HEP Phase 1: Concurrent Definition and Implementation
• HEP Phase 2: Concurrent Definition and Implementation

The HEP project is achieving project objectives, notably:

• 6 June 2019: Project Approval (Definition) with Expenditure Authority received;
• 20 June 2019: Independent Review Panel Defence Acquisition (IRPDA) for Phase 2 completed;
• 27 September 2019: Defence Procurement Strategy Governance Board Gate #1 for Phase 2 completed;
• 16-17 October 2019: Integration meeting with the United States Navy/Air Force to finalize Phase 2 activities, delivery scheduled and costing completed;
• 29 November 2019: Defence Procurement Strategy Governance Board Gate #2 and #3 completed for specific Phase 1 and 2 systems;
• 15 May 2020: Approval (Definition) Phase 2 and (Implementation) with Expenditure Authority and Contracting Authority received;
• 22 October 2020: Annual Senior Review Board;
• 13 November 2020: Received aircraft software source code from the United States Navy to start adding in Canadian capability requirements; and
• 26 February 2021: All nine Letters of Offer and Acceptance (LOAs) from the United States Government have been accepted for acquisitions under the Foreign Military Sales program.

Scope: The project is on track to deliver the approved scope.
Cost: The project is within its approved budget.
Schedule: The project is currently on schedule to have equipment delivered and integration completed to meet the capabilities required for IOC by December 2023 and FOC by June 2025.

Work Plan: In Fiscal Year 2020-21, the project achieved the following:

• Approval (Definition Phase 2 and (Implementation) with Expenditure Authority and Contracting Authority received; and
• All nine LOAs from the United States Government have been accepted for acquisitions under the Foreign Military Sales program.

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

The IFCP has the following project outcomes:

• Successful acquisition of F/A18-A/B aircraft and integration into the CF-18 fighter fleet;
• Help address the capability gap by having sufficient operational aircraft to support execution of the roles and missions asked by the Government of Canada; and
• Relocation of AETE from Cold Lake to Ottawa Airport.

Once the fleets 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):

• Increases number of available F/A-18 aircraft, which will contribute towards ensuring that operations within Canada, North America, and on an international scale are effective; 
• Ensures that Air and Space forces Elements meeting Force Posture and Readiness requirements remain ready; and
• Ensures that the fleet is available as planned to meet training and operational readiness requirements.

The IFCP project is achieving project objectives, notably:

• In Fiscal Year (FY) 2018-19, IFCP achieved the following:
• On 12 December 2017, the project received amended Expenditure Authority for Definition;
• On 1 November 2018, the project received Expenditure Authority and Contract Approval for Implementation;
• On 9 November 2018, PSPC signed a Government to Government Purchasing Arrangement with the Government of Australia for the purchase of aircraft, spare parts and support equipment; and
• On 23 February 2019, Canada took delivery of the first two supplementary F/A-18 aircraft.

• In FY 2019-20, IFCP achieved the following:
• Completed acceptance, modifications, and testing required to obtain airworthiness clearances on the first two aircraft, to support RCAF declaration of Initial Operational Capability on 28 June 2019;
• Established a three person detachment in Australia to coordinate the acceptance of aircraft, spare parts and equipment; and
• Received third (17 November 2019) and fourth (13 February 2020) aircraft from Australia.

Cost: The project is currently within its approved budget, including contingency.

Schedule: The project is currently on its approved schedule for the delivery of equipment to the RCAF; however, infrastructure activities associated with the relocation of AETE have experienced significant delays associated with securing leased accommodations for current occupants of the Hangar in Ottawa with associated impact on hangar renovations.

Year-End Results: In FY 2020-21, IFCP achieved the following:

• Received and transported 11 additional Australian F/A-18 to Canada, bringing the total aircraft received to date to 15;
• Continued aircraft acceptance and “Canadianization” of aircraft received;
• Released one additional aircraft to RCAF operations;
• Achieved 66% design complete milestone for 14 Hangar renovations in Ottawa; and
• Relocated lead elements of AETE to temporary facilities in Ottawa.

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

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

Once the vessels are introduced into service, they will 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 that operations within Canada, North America, and on an international scale are effective; 
• Ensures that Maritime Forces Elements are deployable in support of Force Posture and Readiness; and
• Ensures that fleets are available as planned to meet training and operational readiness requirements.

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

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

• Serco Canada Marine Corporation – Ottawa, Ontario, Canada
• Thales Canada Inc. – Ottawa, Ontario, Canada
• Det Norske Veritas - Germanischer Lloyd Canada (DNV-GL) – Montreal, Quebec, Canada
• ThyssenKrupp Marine Systems Canada Inc. – Ottawa, Ontario, Canada
• VARD Electro – Tennfjord, Norway
• VARD Electro Canada Inc. – Vancouver, British Columbia, Canada
• Trident Maritime Systems – Crozet, Virginia, USA
• L-3 Communications MAPPS Inc. – 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, USA
• Ultra Electronics - Dartmouth, Nova Scotia, Canada
• Jastram Engineering – North Vancouver, British Columbia, Canada
• Gibbs and Cox Maritime Solutions – New York, New York, USA
• Joiner Systems Inc. – Vancouver, British Columbia, Canada
• Genoa Design International – Mt Pearl, Newfoundland, Canada
• Bronswerk Marine – Brossard, Quebec, Canada
• Bluedrop Training & Simulations Inc. (BTSI) – Halifax, Nova Scotia, Canada
• Aluma Safway Inc. – Richmond, British Columbia, Canada
• Imeco Inc. – Marinette, Wisconsin, USA
• Babcock Canada – Ottawa, Ontario, Canada

The JSS project is achieving project objectives, notably:

• The JSS Project received Project Approval for its implementation in February 2020. Subsequently, the Design and Production Engineering Contract, as well as the Long Lead Items Contract, were amended. The Early Block Build Contract was also amended to act as a bridge until the Build Contract was awarded to Seaspan Vancouver Shipyards in June 2020;
• Since construction started, originally under the Early Block Build Contract which began in June 2018, approximately 43 of 123 blocks have been substantially completed by end-March 2021, with another 68 of 123 blocks under construction;
• Having adopted a hybrid design and build strategy, the Final Design Review is planned for summer 2021;
• Through the Long Lead Items contract, the shipyard has established a comprehensive supply chain involving a significant number of Canadian companies from Coast to Coast that are delivering essential material and equipment, and are contributing to the project’s progress as well as the Canadian economy;
• With the continued shipyard construction activities for JSS, Canada’s detachment in Vancouver successfully established and conducted the necessary client inspections on constructed JSS blocks. Collaboration with the Canadian Coast Guard was leveraged to find efficiencies in sharing local inspection resources; and
• 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. These systems are planned for delivery in 2021.

Scope: The mandate to deliver two Joint Support Ships remains unchanged.

Cost: The Project budget was reviewed and updated as part of the February 2020 project implementation approval. The project has all financial and contractual authorities necessary to realize its mandate.

Schedule: The Project schedule was reviewed and updated as part of the February 2020 project implementation approval.

Year-End Results: In FY 2020-21, the JSS project achieved the following:

• With project implementation authorities received in February 2020, supporting contracts were amended to bridge activities until the Build contract award, which occurred on 10 June 2020;
• Shipyard activities were impacted but not interrupted by COVID-19, with production continuing throughout the pandemic; and
• By end-March 2021, there were 111 of 123 blocks for the first ship in production, with 43 of them substantially completed.

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

The LAV III upgrade project has the following project outcomes:

• Deliver 550 LAV III vehicles upgraded in the areas of mobility, protection and lethality.

Once these vehicles are introduced into service, they will be contributing to various Program Inventories under Operations and Ready Forces. The LAV III Upgrade project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Canadian Army:

• Provides modernized land fleets, which will contribute towards ensuring that operations within Canada, North America, and on an international scale are effective;
• Ensures that Land Forces Elements are deployable in support of Force Posture and Readiness; and
• Ensures that fleets are available as planned to meet training and operational readiness requirements.

The LAV III upgrade project has achieved project objectives, notably:

• Initial Operational Capability occurred in June 2014;
• As of 1 July 2016, the Commander of the Canadian Army accepted the upgraded LAV III as the Canadian Army deployable LAV fleet. Exercise "Maple Resolve 16," held in Wainwright in May 2016, successfully tested more than 110 upgraded LAV III; and
• The last of the 550 vehicles was delivered in July 2019.

Scope: In November 2016, the project received the additional authority to deliver the full upgrade to the 141 LAV III Operational Requirements Integration Task vehicles, which were originally only to receive a partial upgrade under the scope of the project approved in October 2011.

Cost: The project is within the budget established in November 2016 as part of the amended scope approval.

Schedule: The project remains on schedule as established in November 2016 as part of the amended scope approval and achieved Effective Project Closure in November 2020.

Year-End Results: In Fiscal Year 2020-21, the LAV III Upgrade project achieved the following:

• Following the last vehicle delivery, the project office focused on achieving the activities leading to Effective Project Closeout, which was achieved in November 2020.

This project contributes to Program Inventory 5.2 Land Equipment Acquisition of the Departmental Results Framework. Its outcome is to ensure that Land equipment projects remain within the 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 that fleets are available as planned to meet training and operational readiness requirements; and
• Provides modernized fleets, which will contribute towards ensuring that operations in Canada, North America and on an international scale are effective.

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

• In April 2019, Canada published the formal invitation to qualify. The list of Qualified Suppliers (in alphabetical order) is as follows:
  • General Dynamics Land Systems – Canada Corporation, General Dynamics Land Systems Incorporated and Daimler Truck AG;
  • Iveco Defence Vehicles S.p.A.;
  • Mack Defence LLC and ARQUUS;
  • Navistar Defence LLC;
  • Oshkosh Defence Canada Incorporated and Oshkosh Defence, LLC; and
  • Rheinmetall Canada Inc. and Rheinmetall MAN Military Vehicles GmbH.
• On-going engagements with Qualified Suppliers since August 2019 to review and refine requirements and solicitation documents;
• Draft Request for Proposal (RFP) documentation is being released to qualified suppliers in phases starting mid-2020; and
• In August 2020, a contract was awarded to Nevada Automobile Testing Centre for conducting physical testing of vehicles as part of the process to evaluate bids planned for 2022.

Year-End Results: In Fiscal Year 2020-21, the LVM project released a draft RFP in phases to six qualified suppliers that may bid on the requirement. Engagements were held at each major release to solicit feedback from qualified suppliers. The project remains on track to release a final RFP to qualified suppliers in late summer 2021.

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

The MHP has the following project outcomes:

• Acquire 28 fully equipped Maritime Helicopters;
• Deliver long-term In-Service Support; and
• Modify the Halifax-class ships to accommodate the new Maritime Helicopters.

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

• Ensures that Maritime Forces and Air and Space Forces Elements remain ready and are deployable in support of Force Posture and Readiness;
• Ensures that the fleet is available as planned to meet training and operational readiness requirements; and
• Contributes towards ensuring that operations in Canada, North America and on an international scale are effective.

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

The MHP is achieving project objectives, notably as of 13 April 2021:

• A total of 23 CH-148 Cyclone helicopters have been delivered, 19 of which are in the Block 2 configuration, and two in Configuration Requirement 2.1; and
• Since IOC declaration in 2018, Cyclones have continuously supported domestic and international operations.

Scope: On 18 June 2014, following a revised Project Approval (Implementation), the Government of Canada and Sikorsky International Operations Incorporated signed a contract amendment. This amendment extended the In-Service Support Agreement to 2038 and re-baselined the project schedule.

Cost: The MHP PMO is expecting to request additional Project Authority and funding, aiming to complete the project within the approved scope.

Schedule: The MHP is on track to deliver the project milestones in accordance with its re-baselined approved schedule.

Year-End Results: In Fiscal Year 2020-21, the Maritime Helicopter Project accepted 7 helicopters, bringing the total of in-service Block 2 Cyclones to 19. The two first helicopters in Configuration Requirement 2.1 were also accepted in that same period.

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

The MSVS project has the following project outcomes, divided into phases:

• Phase 1
  • Acquire 1,300 Militarized Commercial-Off-The-Shelf (MilCOTS) trucks.
• Phase 2
  • Acquire 994 Specially Equipped Vehicle baseline shelters (26 are funded by the Medium-to-Heavy Lift Helicopters (MHLH) project and seven by the Land Forces Intelligence, Surveillance, Target Acquisition and Reconnaissance project, Family of Unmanned Aerial Vehicles sub-project).
• Phase 3
  • Modify 846 baseline shelters (also referred to as “Shelter Kitting”).
• Phase 4
  • Acquire 1,500 Standard Military Pattern (SMP) Trucks in five variants: Cargo; Cargo with Material Handling Crane; Load Handling System; Mobile Repair Team; and Gun Tractor. (Plus 37 funded by the Lightweight Towed Howitzer project, 36 trucks funded by the MHLH project, and 14 trucks funded by the Air Force Expeditionary Capability (AFEC) Project);
  • Acquire 150 integrated Armour Protection Systems (APS). (Plus 7 funded by LWTH, and 4 funded by MHLH);
  • Acquire 300 Load Handling System trailers (Plus 14 funded by MHLH, and 8 funded by AFEC); and
  • Acquire In-Service Support.
• Phase 5
  • Deliver associated Infrastructure.

This new capability will contribute to various Program Inventories under Operations and Ready Forces. The project is delivering the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically to the Canadian Army:

• Ensures that fleets are available as planned to meet training and operational readiness requirements; and
• Contributes towards ensuring that operations in Canada, North America and on an international scale are effective.

MilCOTS:
Navistar Defence LLC - Warrenville, Illinois, USA

Baseline Shelters:     
DEW Engineering and Development ULC - Ottawa, Ontario, Canada

Kitting:
DEW Engineering and Development ULC - Ottawa, Ontario, Canada

SMP:
Mack Defence LLC - Allentown, Pennsylvania, USA

The MSVS project has achieved the following project objectives:

• Phase 1
  • The MilCOTS trucks are in service.
• Phase 2 and 3
  • Baseline Shelters and associated kitting are in service.
• Phase 4
  • SMP Trucks, trailers and APS are in service. Minor support elements continue to be delivered by the Contractor.
• Phase 5
  • Infrastructure work is in progress with one minor project remaining to be completed in spring 2021.

Scope: The project is on track to deliver its 2015 approved scope for Phase 4 and Phase 5.

Cost: The project is within the 2015 approved budget.

Schedule: Final equipment delivery occurred in September 2020. The project achieved Full Operational Capability in February 2021.

Year-End Results: In Fiscal Year 2020-21, the MSVS project completed delivery of all equipment to units across Canada. A 5-year in-service support contract extension was awarded in July 2020. Full Operational Capability was reached in February 2021. The first international deployment of Standard Military Pattern trucks to Latvia occurred in December 2019. The project has set the conditions to enter into the Project Closeout Phase in early spring 2021.

This project contributes to Program Inventory 5.4 Defence Information Technology Systems Acquisition, Design and Delivery of the Departmental Results Framework. Its completion ensures that new Information Technology capabilities have addressed a capability gap or deficiency.

The MG project had the following project outcomes:

• Phase 1
  • Acquire access to the Wideband Global SATCOM (WGS) satellite constellation via a Memorandum of Understanding (MOU) with the United States (US) Department of Defence (DoD) and other international partners (Denmark, the Netherlands, Luxembourg, and New Zealand). The MOU was the vehicle used to fund the construction and launch of the ninth WGS satellite, and thereby provide access to the US DoD WGS constellation to the Department of National Defence and other international partners to at least the year 2031; and
  • Acquire early access terminals.
• Phase 2
  • Design, build and support seven permanent antennas at three sites across Canada.
• Phase 3
  • Acquire deployable terminals for strategic use to operate specifically with the WGS constellation.

Now that the new system is in place, it contributes to various Program Inventories under Operations and Ready Forces. The project has delivered the following capabilities to the Department of National Defence and the CAF:

• Ensures that fleets are available as planned to meet training and operational readiness requirements; and
• Ensures that operations in Canada, North America and on an international scale are effective.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to the first two phases of this project. In Phase 1, Canada received IRBs equivalent to 100% of the contracted value on a separate agreement between Boeing and Public Services and Procurement Canada (PSPC) for the ninth WGS space vehicle (satellite). In Phase 2, Canada will receive IRBs equivalent to 100% of the contracted value for both the acquisition and the In-Service Support.

In Phase 3, Canada will receive ITBs equivalent to 100% of the contracted value for both the capital acquisition and the In-Service Support as part of the Defence Procurement Strategy (DPS).

Space segment:
United States Department of Defense via a Memorandum of Understanding

Anchor Segment:
General Dynamics Mission Systems – Canada; Ottawa, Ontario, Canada

Strategic Deployment Terminals:
General Dynamics Mission Systems – Canada; Ottawa, Ontario, Canada

Early Access Terminals:
Telesat Canada – Ottawa, Ontario, Canada

• Satellite Manufacturer – Boeing, St. Louis, Missouri, USA
• Deployable SATCOM Terminal Manufacturer – Ultra Electronics, London, United Kingdom
• Anchor Station Development, Fairfax, Virginia, USA

The MG project has achieved project objectives, notably:

• Phase 1 – Definition
  • Preliminary Project Approval was attained in October 2011; and
  • The WGS SATCOM MOU was signed in January 2012.
• Phase 2 – Implementation
  • Expenditure and Contract Authority for Phase 2 was achieved in October 2014;
  • General Dynamics Mission Systems - Canada was awarded contracts for both the installation of the anchor stations and In-Service Support of the system for a period of seven (7) years, with options for support up to an additional ten (10) years;
  • Construction, installation, and integration at all 3 MG Anchor Segment sites are complete. WGS certification was completed in August 2018. Acceptance testing was completed in March 2019; and
  • All three Anchor Segment sites were operationally accepted as of November 2019. Implementation of anchor segments was completed in June 2020.
• Phase 3 – Implementation
  • A Request for Proposal for 67 Strategic Deployable Terminals (SDTs) closed on 31 January 2017;
  • Approval for Expenditure Authority was achieved 10 January 2018;
  • Contract Award for the Terminal segment, i.e. 67 SDTs, took place 22 February 2018;
  • Factory Acceptance Testing and System Acceptance Testing were completed in September 2018 and November 2018 respectively;
  • Full delivery of all SDTs was completed in March 2021; and
  • MG project has directly supported Operation IMPACT, Operation UNIFIER, Operation CARIBBE, Operation NANOOK, Operation REASSURANCE, and Operation RENNAISSANCE 15-1.

Scope: The project has delivered the 2014 and 2018 approved scope. In addition, WGS satellites eight (8) and nine (9) have completed the Wideband Digital Channelizer upgrade, which will almost double their current bandwidth. This satellite modification was undertaken by the U.S. DoD; International Partners will not share the cost, in part or in total, for this upgrade. These satellites have been launched and are currently operational.

Cost: The project will close within the 2014 and 2018 TB approved budgets.

Schedule: The project experienced a delay against the 2014 approved schedule. The schedule was re-baselined in the approved 2018 TB submission. Delivery of the light SDTs was extended to March 2021 (due to certification requirements).

Year-End Results: In Fiscal Year (FY) 2020-21, the MG project achieved the following:

• Phase 2 – Implementation
  • Full acceptance of Anchor Segment sites was delayed from FY 2019-20 and completed in June 2020.
• Phase 3 – Implementation
  • Accepted delivery of all medium and heavy strategic deployable terminals;
  • Accepted delivery of commercial Ka-band light strategic deployable terminals; and
  • Accepted delivery of X-band Light strategic deployable terminals.
• Phase 3 – Closeout
  • A Project Completion Report has been drafted and will be circulated for signature to formally approve project closure in June 2021.

This project contributes to Program Inventory 5.4 Defence Information Technology Systems Acquisition, Design and Delivery of the Departmental Results Framework. Its outcome is to ensure that Information Technology capabilities address a capability gap or deficiency.

The PMSC project has the following project outcomes:

• Phase 1 – Definition (Complete)
  • Procure access to the US DoD AEHF MILSATCOM System via a Memorandum of Understanding (MOU); signed in November 1999.
• Phase 2 – Implementation
  • Acquire AEHF satellite terminals in multiple variants: ground stations, naval, land transportable, and deployable;
  • Install AEHF (advanced extremely high frequency) satellite terminals where necessary; and
  • Deliver associated Infrastructure.

Once this new system is in place, it will contribute to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence (DND) and the Canadian Armed Forces (CAF):

• Ensures that fleets are available as planned to meet training and operational readiness requirements; and
• Ensures that operations in Canada, North America and on an international scale are effective.

The PMSC project has achieved project objectives, notably:

• Phase 1 – Definition (Complete)
  • Preliminary Project Approval was provided in August 1999; and
  • System access was procured via a Military Satellite Communications MOU with the US DoD for development and fielding, signed in November 1999.
• Phase 2 – Implementation
  • Project Approval (Implementation) was received in November 2003;
  • An Operations and Sustainment MOU with the US DoD for continued access to 2024 was signed in November 2009;
  • FMS cases were established starting in March 2006 for procurements of terminal equipment; and
  • The PMSC Initial Operational Capability was achieved 12 November 2013.

Scope: The project is on track to deliver the 2003 approved scope.

Cost: The project is currently within the 2003 approved budget. Risk mitigation strategies have been identified to minimize future costs due to installations that exceeded budgeted estimates. These strategies included awarding installation activities to the supplier with the lowest overall cost structure, and the feasibility of proceeding with firm-fixed price contracts was explored and implemented.

Schedule: The project is scheduled to achieve Effective Project Closeout in June 2022 after completing the first of class installation and test of the PMSC system on the HMCS Corner Brook Victoria-class Submarine. The completion of the three remaining submarines will be done by DND/CAF.

Due to slippages in the US DoD overall satellite launch schedule and Victoria-class Submarine installations, the PMSC System Full Operational Capability has moved to March 2029 from the original (2003 approved) expected date of November 2017.

Year-End Results: In Fiscal Year 2020-21, the PMSC project achieved the following:  

• The Installation and test of the PMSC system on the HMCS Corner Brook is on track to complete in Q4 of FY 2021-22;
• The In-Service Support of the Surface Fleet PMSC terminal was formally transitioned to Maritime Equipment Program Management in October 2020; and
• The removal of the Lightweight Terminal requirement was approved by the Defence Capabilities Board in April 2021.

The extension of the AEHF MOU has been approved and is currently staffed for approval through the Office of the Secretary of Defence.

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

The RPAS project has the following project outcome:

• Deliver a mature long range, long endurance RPAS capability that meets the requirements of the CAF.

Once this new system is in place, it will contribute to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence (DND) and the CAF, specifically to the Royal Canadian Air Force, and will support the Canadian Army, the Royal Canadian Navy, and the Commanders of the Special Operations Forces and Joint Operational Commands:

• Ensures that fleets are available as planned to meet training and operational readiness requirements; and
• Ensures that operations in Canada, North America and on an international scale are effective.

The RPAS project is achieving project objectives, notably:

• April 2019: Project entered the definition phase;
• May 2019: Invitation to Qualify and Qualified Suppliers list was posted on buyandsell.gc.ca;
• October 2019: Qualified Suppliers information session was held on Airworthiness Certification and Cyber Security;
• February 2020: Qualified Suppliers information session was held on Sustainment and Technical requirements; and
• November 2020: The draft Request for Proposal was issued.

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

Cost: The project is currently within the 2019 approved budget.

Schedule: While the schedule remains aggressive, the project met its 2019-20 milestones and is on track to issue solicitation documents.

Year-End Results: In Fiscal Year 2020-21, the project team issued a draft Request for Proposal in November 2020 and continued to engage the two qualified suppliers to review and refine requirements in preparation for issuance of the final Request for Proposal.

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

The TAPV project has the following project outcomes:

• Procurement and delivery of essential Integrated Logistics Support to sustain the fleet for the first two years;
• An initial purchase of 500 TAPV with an option for 100 more;
• Acquisition of an operational stock and two years of training stocks of ammunition;
• Construction of required infrastructure at bases; and
• Implementation of a long-term (25-year) through life In-Service Support Contract to be funded through Army National Procurement funds.

This modern 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, specifically to the Canadian Army (CA):

• Ensures that Land Forces Elements are deployable in support of Force Posture and Readiness;
• Ensures that fleets are available as planned to meet training and operational readiness requirements; and
• Ensures that operations in Canada, North America and on an international scale are effective.

• Textron Marine and Land Systems – Louisiana, USA
• Kongsberg Protech Systems Canada – London, Ontario, Canada
• Rheinmetall Canada – Ottawa, Ontario, Canada

The TAPV project has achieved project objectives, notably:

• As of December 2018, all 500 vehicles were delivered;
• Initial Operational Capability achieved in August 2017; and
• In 2017 and 2019, TAPVs were effectively used to respond to flooding in Quebec as part of Operation LENTUS.

Scope: The project is on track to deliver the 2012 approved scope, as well as additional special tools, test equipment and infrastructure required to support the CA’s 2018 redistribution of vehicles.

Cost: The project is within its 2012 approved budget.  

Schedule: In August 2014, a first round of testing identified design challenges associated with reliability. The project returned to the contract design phase in order to allow the complex, inter-related designs for the vehicle’s structure, suspension and steering to be improved. A second round of reliability testing was successful, and qualification activities were completed by June 2016.

The project experienced a delay against the 2012 approved schedule, primarily as a result of the need to return to the design phase following identification of the design challenges, and as a result of production and quality issues.

In Fiscal Year (FY) 2018-19, the final vehicle delivery occurred together with the transition of the fleet to in-service.
In FY 2019-20, the fleet was redistributed, and additional special tools and test equipment and infrastructure upgrades were implemented to support the redistribution.

Year-End Results: In FY 2020-21, the project achieved effective project closure. Work continued to deliver ancillary equipment in support of the vehicle and complete infrastructure activities at Canadian Force Bases Valcartier, Shilo, and Meaford.

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

The UWSU project has the following project outcomes:

• Acquire six full-up ship-sets that will include a new passive array and low frequency active towed sonar, a new sonobuoy processing system, an upgrade to the hull mounted sonar and a new active intercept capability; and
• Fit all twelve Halifax-class ships with the required infrastructure to allow for the transfer of equipment and sensors between ships as required for operational requirements if all equipment upgrades are not permanently fitted on all ships.

Once vessels are outfitted with the required upgrades, they will contribute to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically to the Royal Canadian Navy:

• Ensure that Maritime Forces elements are deployable in support of Force Posture and Readiness; and
• Ensure that fleets are available as planned to meet training and operational readiness requirements.

• Ultra-Electronics Marine Systems- Canada: Dartmouth, Nova Scotia, Canada
• Nautel-Canada; Hacket’s Cove, Nova Scotia and Cornwall, Ontario, Canada
• Jasco Research-Canada: Halifax, Nova Scotia and Victoria, British Columbia, Canada
• Omnitech-Canada: Dartmouth, Nova Scotia, Canada

The UWSU project has achieved project objectives, notably:

• Implementation approval was received 14 June 2018;
• Contract Award occurred 28 June 2018;
• Project Kick-off occurred in September 2018;
• System Requirements Review occurred in November 2018;
• Preliminary Design Review completed in July 2019; and
• Main aspects of Critical Design Review completed in December 2020.

Scope: The project is on track to deliver the implementation phase currently approved scope of six full up and six fitted for but not with. The project is seeking an amendment to its authorities in order to fully upgrade all twelve ships. If additional funding is made available, flexible contract options will allow for all twelve ships to be fully fitted.

Cost: The implementation phase expenditures remain within the current authorized budget. The amended authorities will cover the need for additional budget for more ships to be fully upgraded.

Schedule: Key milestones toward an Initial Operating Capability are being actively managed against technical and schedule challenges. Docking work period and trials readiness program schedules have impacted project schedules towards Initial and Final Operational Capability achievement.

Year-End Results: In Fiscal Year (FY) 2020-21, the UWSU project achieved the following:

• Completion of main aspects of Critical Design Review;
• Progress towards pre-production build and integration;
• Progress of preparations for factory acceptance testing; and
• Completion of the initial ship installation specification package.