Status Report on Transformational and Major Capital Projects

Project name

Arctic and Offshore Patrol Ships

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 AOPS for the RCN;
• Deliver associated jetty infrastructures in Halifax;
• Contribute funding to associated jetty infrastructure project in Esquimalt;
• Deliver a berthing and fueling facility at Nanisivik, Nunavut;
• Acquire associated Integrated Logistics Support products; and
• Provide project management support for the acquisition of two Arctic and Offshore Patrol Ship variants for the Canadian Coast Guard (CCG), to be funded by separate CCG expenditure authorities.

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 (DND) and the Canadian Armed Forces (CAF), specifically the RCN:

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

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

• Innovation, Science and Economic Development Canada (ISED) and its regional agencies
• Department of Fisheries and Oceans (DFO), for the acquisition of two AOPS variants for the CCG using the DND Build Contract

Acquisition:
Irving Shipbuilding Inc. – Halifax, Nova Scotia, Canada

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

• 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;
• 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 the RCN 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;
• 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 the RCN in July 2021; and
• In October 2021, the future HMCS Max Bernays was launched at Halifax Shipyard in Nova Scotia; 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. As announced by the Government in May 2019, DND will also provide support to the AOPS variant project for the acquisition of two additional ships for the CCG.

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 (CSC) construction. An assessment is ongoing to confirm cost and schedule impacts resulting from the COVID-19 pandemic.

Year-end Results: In the (FY) 2021-22, the AOPS project achieved the following:

• With the official cutting of steel, the fifth ship in the class, the future HMCS Frédérick Rolette, entered full production in May 2021;
• The future HMCS Margaret Brooke was delivered to the RCN in July 2021;
• The future HMCS Max Bernays was launched at Halifax Shipyard in Nova Scotia in October 2021; and
• HMCS Harry DeWolf participated in CAF missions Operation NANOOK, the US-led counter-drug Operation CARIBBE in the Pacific, and completed a circumnavigation of North America by being the first RCN ship to transit the Northwest Passage since 1954.

Project name

Armoured Combat Support Vehicle Project

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 ACSV.

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 CAF, specifically the Canadian Army:

• Provide a modernized, armoured combat support fleet which will contribute towards ensuring effective operations within Canada, North America, and internationally;
• Ensure Land Forces Elements are deployable in support of Force Posture and Readiness; and
• Ensure 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 the Ambulance variant achieved;
• The first ACSV, a Troop Cargo Vehicle variant, was produced by General Dynamics Land Systems Canada in December 2020; and
• The first Ambulance variant produced by (GDLS-C) in July 2021.

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

Cost: The project is within the 2019 approved budget.

Schedule: The project is currently on schedule to complete qualification testing and begin delivery to the Canadian Army of the first two variants in late 2022.

Year-end Results: In the fiscal year 2021-22, the ACSV project achieved the following:

• Preliminary Design Review of Electronic Warfare (EW) variant completed;
• Logistics Analysis Review for Command Post (CP) variant completed;
• First ACSV - Ambulance (AMB) and Command Post (CP) variants produced by GDLS-C; and
• A total of 72 Type 2 variants have been produced to date.

Project name

Aurora Incremental Modernization Project

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

AIMP has the following project outcomes:

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

Once the modernized fleet has been introduced into service it will contribute to various Program Inventories under Operations and Ready Forces. The CP-140 AIMP will deliver the following capabilities to the Department of National Defence and the Canadian Armed Forces, specifically the Royal Canadian Air Force (RCAF):

• Provide modernized aerospace fleet, which will contribute towards ensuring operations within Canada, North America, and internationally are effective;
• Ensure Air and Space forces Elements meeting Force Posture and Readiness requirements remain ready; and
• Ensure 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

The AIMP project has achieved several project objectives, notably:

• 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.

Scope:  The Department has prepared a submission to seek an increase in project approval and expenditure authority to allow completion of the full scope of AIMP Block IV.

Cost: The Department has prepared a submission to seek an increase in project approval and expenditure authority to allow completion of the full scope of AIMP Block IV.

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

Year-end Results: In the fiscal year 2021-22, the AIMP project achieved the following:

• Installation of the Block IV design on six of the 14 CP-140 aircraft;
• Completion of the first phase of Proof of Compliance flight test; and
• Completion of the first phase of Operational Test and Evaluation.

Project name

Canadian Cryptographic Modernization Program

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 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 network from electronic warfare and cyber-attack, and exploit vulnerabilities of an adversary through cyberspace.

Project Approval:

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.^{Footnote *}
• The CSMI Phase 1B sub-project was completed in March 2012: under budget, within scope, schedule extended.^{Footnote *}
• 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.^{Footnote *}
• The CSMI Phase 2A sub-project was completed in March 2019 under budget, within scope, schedule extended.^{Footnote *}
• The Network Encryption Family sub-project was completed in June 2020, under budget, within scope, schedule extended.
• 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 (FY) 2025-26, due to increased complexity, delays in the CSMI Project that relies on the US Key Management Infrastructure Program, and delays in U.S. development of solutions and implementation into weapon platforms such as ships, submarines and aircraft.

Year-end Results: In the FY 2021-22, the CCMP Omnibus Project achieved the following:

• Three CCMP Omnibus Project sub-projects remain active.
• CSE CSMI Phase 2B – In May 2021, Treasury Board approved the amended CSMI Phase 2B submission that outlined a revised way forward for CSMI.  Since the early 2000s, CSE has been part of a government-wide effort to develop, deploy and update devices and supporting infrastructure that allow the Government of Canada to protect classified information and communications. The CSMI project is part of this broader initiative and aims to replace the core IT infrastructure that supports those devices.
  Expected completion date of CSMI Phase 2B is December 2025.
  Expected completion date of the CCMP Omnibus Project is March 2026.
• DND Secure Radio – Delivered initial quantities of Cryptographic Universal Enclosures (CUEs) and Technical Information to start Navy Platforms engineering, integration, and testing. The Project has met the requirements of the VINSON/ANDTV Cryptographic Modernization (VACM) Initial Operational Capability (IOC) Milestone in late summer 2021. In addition, the project received initial quantities of ARC-210 Gen 6 Radios for the Aircraft Fleets’ radio modernization and the engineering and integration work has started.
  Expected completion date of DND’s Secure Radio sub-project is June 2026.
• DND CNRE – Full Operational Capability (FOC) was achieved in January 2021.
  Project Close-out was extended to March 2023 to complete delivery of cables and Satellites on the Move.

Project name

Canadian Surface Combatant Project

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

The CSC project has the following project outcomes:

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

Once the vessels are introduced into service they will 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:

• Introduce a new fleet, which will contribute towards ensuring operations within Canada, North America, and internationally are effective;
• Ensure Maritime Forces Elements are deployable in support of Force Posture and Readiness; and
• Ensure fleet 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;
• 5 November 2019: The project substantially completed the Requirements Reconciliation Phase and commenced Preliminary Design;
• Preliminary Design Review began in December 2021, and is forecasted to complete in Fall 2022; and
• 30 September 2021: A contract was awarded to Poole Construction Company Limited (PCL) for the Design and Build of a Land Based Test Facility to be built at Hartlen Point in Nova Scotia.

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

Cost: The current Definition Phase initially focused on requirements reconciliation and is now in Preliminary Design to evolve the ship design. Completion of the individual design phases will progressively inform the costing of the project. This activity is being jointly undertaken by project staff, Irving Shipbuilding Inc. and its sub-contractors. 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 (2030-33). 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 the fiscal year 2021-22, the CSC project achieved the following:

• Commenced Preliminary Design Review in December 2021;
• Awarded a contract to PCL Construction for the Design and Build of a Land Based Test Facility in September 2021;
• Established a Foreign Military Sales case with the US Government for the acquisition of AEGIS Weapon System in August 2021; and
• Progressed Project Implementation Statement of Work development, in preparation for a future Implementation/Build Contract.

Project name

Fixed-Wing Search and Rescue Aircraft Replacement Project

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 FWSAR project has the following objectives:

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

The FWSAR project will deliver against the following core responsibilities of the Department of National Defence and the Canadian Armed Forces; specifically, for the Royal Canadian Air Force:

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

The primary beneficiary are those who require SAR Services.

• 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;
• The aircraft maintenance trainer arrived in Comox, British Columbia, from Spain in February 2020;
• The first Kingfisher aircraft arrived in Comox, British Columbia in September 2020;
• Maintainer Initial Cadre Training and Aircrew Interim Training started in Comox, British Columbia in October 2020;
• A fourth Kingfisher aircraft arrived in Comox, British Columbia in November 2021; and
• The ninth Kingfisher aircraft was accepted by Canada in Spain in December 2021.

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 a re-baseline of its schedule that accounted for realized risk since the previous schedule re-baseline completed in 2020-21, and unforeseen technical issues.

Year-end Results: In the FY 2021-22, the FWSAR project achieved the following:

• Accepted the final training devices, for a total of seven, in British Columbia;
• Accepted four additional Kingfisher aircraft for a total of nine; and
• Delivered three additional Kingfisher aircraft to Comox, British Columbia for a total of four.

Project name

Future Fighter Capability Project

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

The FFCP has the following project outcomes:

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

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

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

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 were 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 in 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 and is contingent on approval as part of the Project Approval process for Implementation.

Schedule: Notwithstanding adjustments and delays due to the COVID-19 pandemic and associated work restrictions, FFCP has continued to steadily progress throughout Fiscal Year (FY) 2021-22. This includes competition of the evaluation of submitted proposals, and the selection of the bidder to enter the finalization phase of the procurement process. The project continues to work toward awarding a contract in late 2022. The detailed design of an aircraft agnostic Fighter Squadron Facility in each of Cold Lake and Bagotville continues to progress, along with site preparation at these locations to support eventual construction activities.

Year-end Results: In FY 2021-22, the FFCP achieved the following:

• On 1 December 2021, the Government announced that, following the completion of the initial evaluation of proposals, two Bidders remained eligible in the competitive procurement process;
• On 28 March 2022, the Government announced that it will enter into the Finalization Phase of the procurement process with the U.S. government and Lockheed Martin, for the F-35 fighter jet;
• Infrastructure design and site preparation work has begun for Bagotville and Cold Lake to prepare for the arrival of the Future Fighter;
• The new facilities are being designed with the environment and Gender-Based Analysis-Plus (GBA+) considerations in mind;
• The Fighter Squadron Facilities are designed to meet Leadership in Energy and Environmental Design (LEED) Silver and Net-Zero Carbon standards; and
• The GBA+ considerations include gender-inclusive facilities, lactation rooms, multi-faith cultural rooms and a location for smudging ceremonies.

Project name

Halifax-Class Point Defence Missile System Upgrade Project

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 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-class ships; 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 operations within Canada, North America, and internationally are effective; and
• Acquire new capabilities to ensure 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 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:

• Waterfront Integration Test (WIT) conducted on Halifax-class frigate in summer 2021.  This testing indicated further software/firmware updates required;
• First ESSM Block 2 missiles received in July 2021, but returned following WIT results in August 2021, for required updates;
• Additional WIT conducted March 2022.  Result indicated the missile and supporting systems are ready for first of class firing;
• First of class Risk Reduction Firing (RRF) scheduled in Fall 2022 delayed from Fall 2021;
• IOC now estimated for December 2022; and
• FOC remains on schedule for December 2025.

Year-end Results: In the fiscal year 2021-22, the PDMSU project achieved the following:

• Finalized the Packaging, Handling, Storage and Transportation (PHS&T) approach;
• Delivery of the first six ESSM Block 2 to Canadian Forces Ammunition Depot Bedford;
• Performed two Waterfront Integration Test events for shipboard integration testing of Block 2 solution; and
• Began planning and coordination for the first firing of ESSM Block 2 in Fall 2022.

Project name

Hornet Extension Project

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 94 aircraft to ensure compliance with regulatory requirements and interoperability standards; and
• Phase 2 of the project will deliver combat capability upgrades for 36 aircraft.

Once the aircraft have been upgraded they will be contributing to various Program Inventories under Operations and Ready Forces. The 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 fleet are available as planned to meet training and operational readiness requirements.

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

• 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
• CAE, Arlington, Texas, USA
• L3Harris, Mirabel, Quebec, Canada
• Peraton, Calgary, Alberta, Canada

The HEP has achieved several project objectives, notably, on:

• 26 July 2021: Establishment of a Detachment at China Lake, California for flight testing;
• 6 October 2021: contract award to Lockheed Martin for Sniper Pod upgrades; and
• 9 December 2021: Treasury Board approval for project to proceed completely into Implementation phase with amended Expenditure and Contracting Authorities.

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.

Year-end Results: In the fiscal year 2021-22, the HEP achieved the following:

• Established a detachment in China Lake, California to support flight testing;
• Awarded Sniper Pod enhancement contract to Lockheed Martin;
• Received initial deliveries of ARC-210 Generation 6 radios and wiring kits for the new radar to commence aircraft prototyping; and
• Commenced flight testing for the initial build of aircraft software for Phase 2 aircraft.

Project name

Interim Fighter Capability Project

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 IFCP has the following project outcomes:

• Successful acquisition of F/A18-A/B aircraft and integration into the CF-18 Hornet 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 the Ottawa Airport.

Once the fleet 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):

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

• CF-18 Prime Air Vehicle Optimized Weapons System Management Contractor (L-3 Harris),
• Avionics Optimized Weapons System Management Contractor (Peraton),
• Propulsion Group System Optimized Weapons System Management Contractor (Magellan)

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 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.

In the 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.

Year-end Results: In FY 2021-22, IFCP achieved the following:

• Transported and received the remaining operational Australian F/A-18 and two non-operational aircraft;
• Completed aircraft acceptance and “Canadianization” to make IFCP aircraft functionally identical to the existing CF-18 fleet, and integrated the aircraft into the current fighter force structure;
• Accepted initial delivery of spare parts and equipment as they become available from Australia;
• Completed design and commenced renovation of leased facility in Ottawa;
• Released five additional aircraft to RCAF for operations for a total of eight; and
• Completed 14 Hangar design activities and planning to commence renovations in June 2022.

Cost: The IFCP PMO will be requesting additional Project Authority and funding, aiming to complete the project within the approved scope.

Schedule: Pending the additional Project Authority and additional funds, the IFCP has identified some major deliverables that will be delayed.  Since these deliverables are not on the critical path, there is nil impact on the project’s re-baselined approved schedule.

Project name

Joint Support Ship Project

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 JSS 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:

• Introduce a new fleet which will contribute towards ensuring operations within Canada, North America, and internationally are effective;
• Ensure Maritime Forces Elements are deployable in support of Force Posture and Readiness; and
• Ensure fleet 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 88 of 123 blocks have been structurally completed by end-March 2022, with the remainder under construction;
• The Final Design Review was held on 22 July 2021. This was the third and final design review of the JSS design to confirm it meets all of Canada’s requirements;
• Through the Long Lead Items Contract, the shipyard has established a comprehensive supply chain involving a significant number of Canadian companies from coast to coast that are delivering essential material and equipment, and are contributing to the project’s progress as well as the Canadian economy;
• With the continued shipyard construction activities for JSS, Canada’s detachment in Vancouver successfully established and conducted the necessary client inspections on constructed JSS blocks. Collaboration with the Canadian Coast Guard was leveraged to find efficiencies in sharing local inspection resources;
• Separate from JSS design and construction contracts, a contract was competitively awarded in 2019 to Navamar Inc. (Montreal) for the Sea-to-Shore connector systems. The first of these systems was delivered in March 2022, with initial cadre training and acceptance planned for April 2022; and
• In December 2021, the Contractor provided an updated Build proposal under the terms of the contract. Negotiations regarding the associated revised Target Cost are ongoing.

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. However, in light of the continued impacts of the COVID-19 pandemic, this cost estimate is currently under review. While a cost increase is expected, analysis of the updated build proposal and full impacts on the overall project is proceeding.

Schedule: The Project schedule was reviewed and updated as part of the February 2020 project implementation approval. The ship deliveries are expected to be delayed due to COVID impacts on the shipyard and the supply chain.

Year-end Results: In the fiscal year 2021-22, the JSS project achieved the following:

• Construction of the first ship continued, with 88 of its 123 blocks structurally completed, and the remainder under construction;
• The Final Design Review was held in July 2021;
• The contractor provided an updated build proposal, initiating a process to revise the target cost for the first ship; and
• The project received delivery of the first of four Sea-to-Shore Connector Systems in March 2022, with the remainder expected throughout 2022-23.

Project name

Logistics Vehicle Modernization Project

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 project has the following project outcomes:

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

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

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

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

• In April 2019, Canada published the formal invitation to qualify. The current list of Qualified Suppliers (in alphabetical order) is as follows:
  • General Dynamics Land Systems – Canada Corporation, General Dynamics Land Systems Incorporated and Daimler Truck AG;
  • Iveco Defence Vehicles S.p.A.;
  • Mack Defence LLC and ARQUUS;
  • 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; 
• On-going engagements with Qualified Suppliers since August 2019 to review and refine requirements and solicitation documents;
• Draft Request for Proposal (RFP) documents released to Qualified Suppliers in Phases (July 2020 through August 2021);
• Engagements were held at each major release to solicit feedback from Qualified Suppliers; and 
• In December 2021, the project released the RFP.

Year-end Results: In November 2021, the LVM project hosted an Industry Consultation day with non-Qualified Suppliers. The RFP was released to the Qualified Suppliers on 9 December 2021.

Project name

Maritime Helicopter Project

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

The MHP has the following project outcomes:

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

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

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

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

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 out to 2038 and re-baselined the project schedule.

Cost: The MHP PMO will be requesting additional Project Authority and funding, aiming to complete the project within the approved scope.

Schedule: MHP has identified a risk of slippage with its re-baselined approved schedule due to some deliverables pending additional Project Authority and Additional Funds.

Year-end Results: In the fiscal year 2021-22, the MHP achieved the following:

• A total of 25 CH-148 Cyclone helicopters have been delivered, 22 of which are in the Block 2 configuration, and three in Capability Release 2.1; and
• Since IOC declaration in 2018, Cyclones have continuously supported domestic and international operations.

Project name

Medium Support Vehicle System Project

The MG project is in project closeout:

• The project attained full operational capability on 18 February 2021; and
• The project entered effective project close-out 7 May 2021.

Project name

Mercury Global Project

The MG project is in project closeout:

• The project attained full operational capability on 30 November 2020; and
• The project entered project close-out 30 June 2021.

Project name

Protected Military Satellite Communications Project

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 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):

• Ensure fleet available as planned to meet training and operational readiness requirements; and
• Ensure Operations in Canada, North America and internationally 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 and amended in 2021 to extend until 2034;
  • 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 having completed the first of class installation and test of the PMSC system on the HMCS Corner Brook Victoria-Class Submarine in October 2021. The completion of the three remaining submarines will be done by DND/CAF.

Due to slippages in the US DoD delivery of equipment combined with Canadian Patrol Frigate and Victoria Class Submarine work period scheduling challenges, the PMSC System Full Operational Capability, has moved to March 2029 from the original (2003 approved) expected date of November 2017.

The In-Service Support of the Surface Fleet PMSC terminal was formally transitioned to Maritime Equipment Program Management in October 2020.

The removal of the Lightweight Portable Terminal requirement was approved by the Defence Capabilities Board in April 2021.

The extension of the Advanced Extremely High Frequency Operation & Support Memorandum of Understanding to 2034 was approved by the Office of the Secretary of Defence in October 2021.

Year-end Results: In the fiscal year 2021-22, the PMSC project achieved the following:

• The Project has delivered over 95% of the capability with only three of the four Victoria Class Submarines remaining to be equipped with a Universal Modular Mast, Naval Multiband Terminal and a Submarine High Data Rate antenna.
• Completed the installation and test of the first of class PMSC system onboard the HMCS CORNER BROOK submarine in October 2021.
• Completed the Initial Cadre Training for the submarine operators and maintainers in October 2021.
• The removal of the Lightweight Terminal requirement was approved by Defence Capabilities Board in April 2021.

The extension of the AEHF MOU was approved by Treasury Board and by the Office of the Secretary of Defence in October 2021.

Project name

Remotely Piloted Aircraft System Project

This project contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework, and its outcome to ensure that Aerospace equipment projects remain in 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 Canadian Armed Forces (CAF).

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

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

The project RPAS is achieving project objectives, notably:

• 7 June 2017: Strong, Secure, Engaged announced Canada would acquire remotely piloted aircraft systems.
• 4 April 2019: Project entered the Definition Phase.
• May 2019 to February 2022: Conducted comprehensive engagement with Qualified Suppliers on a wide range of topics, including RPAS procurement process, Canada’s Industrial and Technological benefits, Value Proposition framework, Terms and conditions, Life Cycle Cost Evaluation, sustainment and training requirements, airworthiness certification and cyber security.
• 11 February 2022: The Request for Proposal (RFP) was issued to the two Qualified Suppliers.

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

Cost: The project is currently within the approved budget.

Schedule: The re-baselined project schedule was approved by Defence Procurement Strategy Governance in 2021.

Year-end Results: In the fiscal year 2021-22, the RPAS project achieved the following:

• Completed industry engagement necessary to finalize the Request for Proposal.
• The RFP was issued on 11 February 2022.

Project name

Strategic Tanker Transport Capability Project

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

The STTC project has the following outcomes:

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

The STTC project will deliver against the core responsibilities of the Department of National Defence and the Canadian Armed Forces:

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

Scope: The project is on track to deliver the 2020 approved scope, notably:

• December 2020: Project entered the definition phase;
• February 2021: Invitation to Qualify posted on buyandsell.gc.ca;
• April 2021: Qualified Suppliers list posted on buyandsell.gc.ca;
• June 2021: Virtual Industry Engagement Session held online; and
• September 2021: First version of Draft Contract shared with Qualified Suppliers.

Cost: The project is currently within the approved budget.

Schedule: The project is on track to seek approval for the Implementation Phase.

Year-end Results: In the fiscal year 2021-22, the STTC project achieved the following:

• Continued development of contractual documentation through collaboration with the Qualified Supplier on requirements specification;
• Began Operational Implementation Working Group meetings with RCAF project stakeholders to prepare for the future introduction to service of STTC; and
• In collaboration with Assistant Deputy Minister (Infrastructure and Environment), initiated a variety of studies to inform the development of infrastructure requirements.

Project name

Underwater Warfare Suite Upgrade Project

This project 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 UWSU project has the following project outcomes:

• Acquire twelve 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.

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

• 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;
• Main aspects of Critical Design Review completed in December 2020; and
• Amended project approval was received from the Minister of National Defence 14 June 2021.

Scope: The project is on track to deliver the implementation phase approved scope of full upgrades for all twelve Halifax-class ships.

Cost: The implementation phase expenditures remain within the current authorized budget.

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 the fiscal year 2021-22, the UWSU project achieved the following:

• Progress towards completion of remaining Critical Design Review elements;
• Continued progress towards pre-production build, integration and factory acceptance testing;
• Progress towards integrated logistical support and technical data package baselines;
• Progress towards completion of the first ship and shore site installation; and
• Progress towards first ship and shore site acceptance testing.

Project name

Victoria Class Modernization Project

The main objectives of the VCM enterprise are to make Canada and its allies stronger by:

• Improving the habitability and deployment conditions onboard the Victoria-class submarines;
• Positioning the Victoria class submarines to contribute meaningfully to Joint Operations Ashore; and
• Ensuring survivability of the Victoria-class submarines against an evolving complex threat in an ever changing battlespace.

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

The VCM project is achieving project objectives, notably:

• November 2020: VCM Project received Project Approval for Definition of the Galley Improvement, Flank Array Modernization and Periscope Modernization Projects;
• November 2020: VCM Project received Minister of National Defence approval for the Minor Obsolescence-Mitigation and Maintenance Initiative;
• March 2021: Defence Procurement Strategy Governance Board Gate #1 for Periscope Modernization Project and Flank Array Modernization Project completed; and
• January 2022 – March 2022: Five Minor Capital Projects entered the Implementation Phase.

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

Cost: The project is within its approved budget.

Schedule: The project remains aligned with the schedule approved as part of the November 2020 project definition approval. Initial Operational Capability is scheduled for January 2028 and Full Operational Capability is scheduled for December 2033.

Year-end Results: In the fiscal year 2021-22, the VCM project achieved the following:

• Five of ten Minor Capital Projects entered the Implementation Phase;
• Periscope Modernization Sustainment Business Case Analysis Phase 1 completed; and
• Request for Information released for the Flank Array Modernization Project.