Status Report on Transformational and Major Capital Projects

Description

The objective of the Arctic and Offshore Patrol Ships (AOPS) project is to deliver 6 ice-capable, offshore patrol ships that will be used by the Royal Canadian Navy (RCN) to conduct sovereignty and surveillance operations in Canada’s waters, including the Arctic, as well as to conduct a wide variety of operations abroad.

Project outcomes

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

The AOPS project has the following project outcomes:

• Acquire 6 Arctic and Offshore Patrol Ships for the RCN;
• Deliver associated jetty infrastructures in Halifax, Nova Scotia;
• Contribute funding to associated jetty infrastructure project in Esquimalt, British Columbia;
• Deliver a berthing and fuelling facility at Nanisivik, Nunavut;
• Acquire associated Integrated Logistics Support products; and
• Provide project management support for the acquisition of 2 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 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), specifically the RCN:

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

Industrial benefits

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

Sponsoring department

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

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Department of Fisheries and Oceans (DFO), for the acquisition of 2 AOPS variants for the CCG using the DND Build Contract.

Prime contractor

Acquisition:

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

Major subcontractors

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

Project phase

Major milestones

Progress report and explanation of variances

The AOPS project is achieving project objectives, notably:

• In accordance with the 2012 approved budget, the Definition Contract was completed under budget in November 2015; 
• 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;
• With the official cutting of steel, the fourth ship in the class, the future HMCS William Hall, entered full production in June 2019;
• HMCS Harry DeWolf was delivered to Canada in July 2020;
• The jetty infrastructure project in Halifax was completed in July 2019, with the exception of a rail crane, and is ready to berth the AOPS and other ships of the fleet;
• With the official cutting of steel, the fifth ship in the class, the future HMCS Frédérick Rolette, entered full production in May 2021;
• HMCS Margaret Brooke was delivered to Canada in July 2021; 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 2 additional ships for the Canadian Coast Guard.

Cost: In November 2018, the Government of Canada approved the increased budget to build a sixth AOPS and to extend the production schedule.

Schedule: In November 2018, the Government of Canada approved the extension of the production schedule by 18 months, thereby mitigating part of the production gap between the AOPS and Canadian Surface Combatant construction.

The COVID-19 pandemic and associated restrictions have impacted the project’s schedule and cost estimates, primarily due to effects on production efficiency and supply chain issues. These challenges notwithstanding, in the Fiscal Year 2022-23, the Arctic and Offshore Patrol Ship project achieved the following:

• With the official cutting of steel, the sixth ship in the class, the future HMCS Robert Hampton Gray, entered full production in August 2022;
• HMCS Max Bernays was delivered to Canada in September 2022;
• In November 2022, the future HMCS William Hall was launched at Halifax Shipyard in Nova Scotia;
• In December 2022, the AOPS Shipbuilding Contract was amended to include procurement of 2 AOPS variants for the Canadian Coast Guard; and
• Work progressed during the summer 2022 construction season on the Nanisivik Naval Facility in Nunavut.

Cost and Schedule: Amended project approval and expenditure authorities were approved in November 2022, providing increased budget to complete the sixth ship, procure the required spare parts and jetty rail crane, and extend the production period by at least 26 months. The increased budget and schedule addressed the increased costs and delays due in part to COVID-19 impacts, as well as other program delays and cost increases such as global supply-chain issues and production efficiency challenges faced since the previously approved 2018 cost estimates.

Description

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

Project outcomes

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

The ACSV project will procure 360 Armoured Combat Support Vehicles.

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

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

General Dynamics Land Systems – Canada (GDLS-C) – London, Ontario, Canada

Major subcontractors

• Kongsberg Defence and Aerospace – Protech Systems – Kongsberg, Norway
• Plasan Sasa Ltd – Sasa, Israel
• SED Systems – Saskatoon, Saskatchewan, Canada
• The Will-Burt Company – Orrville, Ohio, 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

Project phase

Major milestones

Progress report and explanation of variances

The ACSV project is achieving project objectives, notably:

• Production started in May 2020;
• Critical Design approval for the Ambulance and Command Post variant achieved;
• The first ACSV, a Troop Cargo Vehicle variant, was produced by General Dynamics Land Systems - Canada (GDLS-C) in December 2020;
• The first Ambulance variant produced by GDLS-C in July 2021; and
• The first Command Post variant was produced by GDLS–C in March 2022.

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, Ambulance, Command Post Vehicles will continue in 2023. The first ACSV Electronic Warfare variant is scheduled for delivery in early 2024.

There have been some delays to the identification of requirements phase for infrastructure due to COVID-19 pandemic, as well as schedule delays on the equipment deliveries due to a necessary chassis upgrade to account for platform weight increases.

Year-end results: In the Fiscal Year 2022-23, the ACSV project achieved the following:

• The first ACSV Command Post variant was produced in March 2022;
• Reliability, Availability, Maintainability, and Durability testing Phase I was completed;
• Critical Design approval for the Electronic Warfare and Fitter Cargo variants achieved;
• A total of 86 Type 2 variants have been produced by GDLS-C to date; and
• An additional 39 ACSVs (TCV variant) previously produced for delivery to Canada were donated to Ukraine by the Government of Canada.  These vehicles will be replaced by the contractor.

Description

The objective of the CP-140 Aurora Incremental Modernization Project (AIMP) is to modernize the mission systems and sensors of Canada’s 14 CP-140 Aurora aircraft to maintain the fleet’s operational capabilities until the fleet’s current planned retirement date of 2030. This work will provide the fleet with the capability to conduct Intelligence, Surveillance, and Reconnaissance (ISR) and Anti-Submarine Warfare (ASW) to detect threats to Canadian security as early as possible.

Project outcomes

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

AIMP has the following project outcomes:

• Deliver Block I upgrades, which includes replacement/upgrade of high frequency radio gear, cockpit voice recorder, and flight data recorder;
• Deliver Block II upgrades, which includes navigation and communications upgrades;
• Deliver Block III upgrades, which includes mission computer and sensor upgrades; and
• Deliver Block IV upgrades, which will add 3 new capabilities (Beyond Line of Sight Satcom, Link 16, and self-defence).

Once the fleet have been introduced into service, they will be contributing to various Program Inventories under Operations and Ready Forces. The CP-140 AIMP will deliver the following capabilities to the DND/CAF, specifically the Royal Canadian Airforce (RCAF):

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

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor (for Block IV)

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

Major subcontractors

CAE - Montreal, Quebec, Canada

Project phase

Major milestones

AIMP:

Progress report and explanation of variances

The AIMP has achieved several project objectives, notably:

• Blocks I, II, and III are complete and have delivered a modernized CP-140 Intelligence, Surveillance, and Reconnaissance and Anti-Submarine Warfare capability to the RCAF; and
• Block IV is unfolding, with aircraft modifications work underway at IMP Aerospace until 2024.

Scope: AIMP Block IV is on track to deliver its full scope.

Cost: AIMP Block IV is on track to deliver within the approved budget.

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

In the Fiscal Year 2022-23, the AIMP project achieved the following:

• Delivered 2 Block IV aircraft;
• Completed the Block IV upgrade of 2 Procedures Crew Trainer ground training devices; and
• Completed Ground Proof of Compliance testing of the Directed Infra-Red Counter Measures system.

Description

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

Project outcomes

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

The CSC project has the following project outcomes:

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

Once the vessels are introduced into service, they will contribute to various Program Inventories under Operations and Ready Forces. The CSC project will deliver the following capabilities to the DND/CAF, specifically the Royal Canadian Navy (RCN):

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

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

Irving Shipbuilding Inc., Halifax, Nova Scotia, Canada

Major subcontractors

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

Project phase

Major milestones

Progress report and explanation of variances

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;
• Strong, Secure, Engaged: Canada’s Defence Policy (SSE), was released on 7 June 2017, citing the procurement of 15 Canadian Surface Combatants with an updated overall project budget;
• CSC RFP closed and initial bids received on 30 November 2017;
• Bid evaluation process commenced on 4 December 2017;
• 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 on 16 October 2018;
• 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 on 7 February 2019;
• The project substantially completed the Requirements Reconciliation Phase and commenced Preliminary Design on 5 November 2019;
• 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 on 7 October 2021;
• Completed Preliminary Design Review, with appropriate agreed actions, enabling the progressive start of Functional Design on 16 December 2022; and
• Granted amended project authorities to progress ship design and acquire long lead items in preparation for construction, further advance DND infrastructure requirements as well as to enable shipyard infrastructure upgrades on 13 December 2022.

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 of Canada 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 full cost for personnel, operations, maintenance, and the cost to build the ships is greatly influenced by the design, which has just progressed through Preliminary Design Review in December 2022.  Accordingly, the full cost for the project will only be known later in the process.  A build cost estimate is expected in late 2023 to support Project Implementation authorities.  Further, DND is updating the full lifecycle cost estimate of the CSC prior to entering Project Implementation.

Schedule: Following Definition Contract award in February 2019 and progress through 4 years of design, design work will progress to support the start of low-rate production in 2024 and full-rate production in 2025.  To support this, the project expects to enter Project Implementation in 2024.  Work is underway with Canada’s prime contractor, Irving Shipbuilding Inc., to optimize a build schedule, to support first ship delivery in the early 2030s (2030-2033). The revised ship delivery schedule recognizes the complexity of the CSC design and is informed by best practices and lessons-learned from allies who are building variants of the same design.

Description

The objective of the Cormorant Mid-Life Upgrade (CMLU) Project is to extend Canada’s Rotary Wing Search and Rescue (SAR) capabilities to at least 2042, by addressing equipment obsolescence related to flight safety, capability sustainment, component supportability, emerging airspace regulatory requirements, and training through the procurement of a domestic simulator. Additionally, the project will increase the size of the CH-149 fleet from 13 to 16 helicopters to rectify capability deficiencies and ensure the CH-149 meets the operational availability requirements to support a national 24/7 Search and Rescue service at the 4 Rotary Wing SAR Main Operating Bases (Comox, British Columbia; Trenton, Ontario; Greenwood, Nova Scotia; and Gander, Newfoundland).

Project outcomes

This project currently contributes to Program Inventory: 5.3 Aerospace Equipment Acquisition and Program; 1.1 Operations in Canada; and 2.4 Ready Air and Space Forces of the Departmental Results Framework. Its outcome is to deliver on Cormorant mid-life upgrades, while ensuring that the project remains in approved scope, schedule, and expenditure authority, contributing to operational effectiveness.

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.

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

• Replacing obsolete systems and equipment and providing aircraft improvements to the latest configuration;
• Increasing the fleet size from 13 to 16 to be able to return a full Rotary Wing Search and Rescue compliant capability to the Trenton Main Operating Base;
• Upgrading the avionics, communications, and sensor systems; and
• Upgrading training through the purchase of a domestic Simulator.

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

Industrial benefits

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

This procurement will advance Canadian innovation in world-class defence and aerospace industries while creating jobs and contributing to economic growth in Canada. Through the application of Canada’s Industrial and Technological Benefits (ITB) Policy, both CAE Inc. and Leonardo U.K. Ltd will invest 100% of the CMLU contract value with Canadian partners and suppliers in Key Industrial Capability (KIC) areas such as defence system integration, training and simulation, aerospace systems and components.

Under its sub-contract award, IMP will deliver 13 of the 16 upgraded Cormorants to Canada from its Halifax facilities. The first 3 helicopters will be completed at Leonardo’s United Kingdom facilities. IMP personnel will undertake on-the-job training in the United Kingdom to complete the build of the remaining 13 CMLU helicopters in Canada. Overall, the CMLU project has the potential to contribute almost $79 million annually to Canadian GDP and 650 jobs annually for Canadian companies, especially in Greenwood and Halifax, Nova Scotia and Gander, Newfoundland and Labrador, over a 12-year period.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

Innovation, Science and Economic Development Canada (ISED)

Prime contractor

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

Major subcontractors

• IMP Aerospace & Defense – Halifax, Nova Scotia, Canada
• General Electric - Evendale, Ohio, United States
• Rockwell Collins Canada – Ottawa, Ontario, Canada

Project phase

Progress report and explanation of variances

Upon review of the May 2020 contractor proposal and, following additional negotiations, the determination that the proposal was unaffordable, the project investigated alternate solutions. These resulted in a prioritized capability ladder and a proposed strategy to purchase the simulator directly from CAE in Montreal. Given the importance of SAR, the Department identified additional funding for the project, and Canada re-engaged with Leonardo and CAE in December 2021, and reached an affordable solution in December 2022.

Scope: A prioritized capability (scope) ladder was approved and the project is procuring scope within the approved ladder.

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

Budget: The project has contracted for 16 upgraded helicopters that have the necessary integrated systems to allow for operation with all required search sensors.

In the Fiscal Year 2022-23, the CMLU project achieved the following:

• Completion of Definition activities which included finalization of all requirements;
• Awarded 2 Major contracts: Leonardo and CAE; and
• Start of implementation engineering and management activities, including completing the Systems Requirements Review.

Description

The objective of the Fixed-Wing Search and Rescue Aircraft Replacement (FWSAR) project is to replace the capability provided by the legacy fixed-wing Search and Rescue (SAR) fleets of CC-115 Buffalo and CC-130H Hercules aircraft. This will be accomplished by acquiring new, sensor-equipped aircraft with long-term In-Service Support (ISS), to ensure the CAF can continue to provide an acceptable response to SAR incidents anywhere in the Canadian Area of Responsibility (AoR).

Project outcomes

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

The FWSAR project has the following objectives:

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

The FWSAR project will deliver against the following core responsibilities of the DND and the CAF; specifically, for the Royal Canadian Airforce (RCAF):

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

The primary beneficiary are those who require Search and Rescue Services.

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

Major subcontractors

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

Project phase

Major milestones

Progress report and explanation of variances

The FWSAR project is achieving project objectives, notably:

• The FWSAR project received amended 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 in British Columbia occurred in January 2018;
• The assembly of the first CC-295 aircraft began in September 2018; 
• During FY 2018-19, the critical design reviews were completed for aircraft, training devices and the ISS solution;
• The first Kingfisher aircraft was accepted by the Government of Canada in Spain in December 2019;
• The aircraft maintenance trainer arrived in Comox, British Columbia, from Spain in February 2020;
• The first Kingfisher aircraft arrived in Comox, British Columbia on 17 September 2020;
• Maintainer Initial Cadre Training started in Comox, British Columbia in October 2020;
• Aircrew interim training started in Comox, British Columbia in November 2022;
• A fifteenth aircraft was accepted in Spain on 3 December 2022; and
• A fifth Kingfisher aircraft arrived in Comox, British Columbia on 25 March 2023.

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

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

Schedule: In late 2021, the project assessed the complexity and volume of the remaining work needed to ensure the aircraft design meets Canada’s Search and Rescue requirements. As a result, the target date for Initial Operational Capability shifted to 2025-26 due to the significant amount of engineering and testing remaining, along with the work required to deliver the necessary technical publications, courseware, and support systems.

Year-end Results: In Fiscal Year (FY) 2022-23, the FWSAR project achieved the following:

• Accepted 6 aircraft for a total of 15;
• Completed several airworthiness certifications and qualifications, including low-level flight, Cold Soak Open Range, and Computed Air Release Point;
• Completed initial maintenance technician training; and
• Finalized preparations for commencement of Initial Operational Test and Evaluation, anticipated in early FY 2023-24.

Description

The objective of the Future Fighter Capability Project (FFCP) is to successfully acquire and transition into service 88 F-35A advanced fighter aircraft and associated equipment, weapons, infrastructure, information technology, and sustainment, including training and software support. This project will leverage Canadian capabilities and support the growth of Canada’s aerospace and defence industries.

Project outcomes

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

The FFCP has the following project outcomes:

• Deliver a fighter capability to execute the roles and missions 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 DND/CAF, specifically the Royal Canadian Airforce (RCAF):

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

Industrial benefits

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

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

Major subcontractors

Northrop Grumman, BAE Systems, and Raytheon Technologies

Project phase

Major milestones

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

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

Schedule: FFCP has continued to steadily progress project activities throughout Fiscal Year 2022-23. Following the conclusion of the competitive dialogue process and selection of a preferred bidder at the end of March 2022, the finalization phase of the procurement process was completed in FY 2022-23, leading to Contract Approval and the start of the Implementation Phase of the project. The schedule for future implementation milestones has been adjusted to reflect the anticipated aircraft delivery schedule and the timelines to build the require facilities, train pilots and technicians, and set-up the necessary sustainment capabilities.

Year-end Results: In the Fiscal Year 2022-23, the FFCP achieved the following:

• Progressed site preparation activities in Cold Lake, Alberta and Bagotville, Quebec for the eventual construction of a Fighter Squadron Facility at each location, anticipated to start in early 2024;
• Finalized an agreement with the United States Government and Lockheed Martin with Pratt & Whitney for the acquisition of 88 F-35A fighter aircraft for the RCAF;
• Initiated project implementation activities to enable the delivery of an initial set of F-35A and associated equipment and services via the F-35 Production, Sustainment, and Follow-on Development Memorandum of Understanding (PSFD MOU); and
• Began planning work to ensure the suitability and readiness of the 2 Main Operating Bases, including the required infrastructure and logistics support, to receive aircraft and enable operations in Bagotville, Quebec and Cold Lake, Alberta.

Description

The objective of the Halifax-class Point Defence Missile System Upgrade (PDMSU) project is to develop and acquire an evolution to the current Evolved SeaSparrow Missile (ESSM) Point Defence Missile System, fitted in the Halifax-class ships. This work will sustain the Royal Canadian Navy’s Halifax-class ships’ ability to defend against current and future threats originating from surface, sub-surface, air, and land-based platforms.

Project outcomes

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

The 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 DND/CAF, specifically the Royal Canadian Navy (RCN):

• 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.

Industrial benefits

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.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

NATO SeaSparrow Surface Missile System Project

Major subcontractors

Raytheon Missiles & Defense – Tucson, Arizona, USA

Project phase

Major milestones

Progress report and explanation of variances

The PDMSU project has achieved project objectives, notably:

• The Government of Canada signed the ESSM Block 2 Engineering and Manufacturing Development MOU on 12 November 2014; and
• The Government of 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 ESSM Block 2 Risk Reduction Firing completed in November 2022 resulted in the need for another firing prior to declaring Initial Operational Capability. The next firing planned for Summer 2023 will collect more data to verify integration in the Combat Management System and missile software updates. Initial Operational Capability (IOC) is delayed to December 2023, following a second Risk Reduction Firing. All other future milestones remain unchanged, in accordance with its 2017 approved schedule.

In FY 2022-23, the PDMSU project achieved the following:

• Fired the first ESSM Block 2 missiles in optimized mode;
• Completed the missile firing analysis;
• Started planning for a second Risk Reduction Firing; and
• Received the first shipment of ESSM Block 2 at Canadian Forces Ammunition Depot Rocky Point.

Description

The Hornet Extension Project (HEP) will help ensure that the Royal Canadian Air Forces (RCAF) Hornet fighter fleet is able to meet operational commitments, including to the North American Aerospace Defence Command (NORAD) and the North Atlantic Treaty Organization (NATO), until 2032 when the permanent replacement fleet is expected to be fully operational.

Project outcomes

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

The HEP has the following project outcomes:

• Phase 1 of the project will deliver upgrades to the avionics and mission support systems for up to 88 CF-188s 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 DND/CAF, 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.

Industrial benefits

Industrial Technological Benefits (ITB) Policy will be considered for all acquisitions more than $20M to achieve 100% of total contract value in Canadian Content Value as Direct and Indirect ITB Transactions. The policy applies to 5 contracts: Sniper Pod contract with Lockheed Martin, GPS contract with Northrop Grumman, and with Raytheon for the APG-79(v)-4 Radar, AIM-9X missiles, and Joint Standoff Weapons (JSOW).

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

DND; PSPC; Innovation, Science and Economic Development (ISED)

Prime contractor

The Project is contracted through a combination of contract vehicles without a prime contractor. Primarily, equipment is being acquired through agreements with the United States Government under the Foreign Military Sales program, and some equipment is being acquired directly from Original Equipment Manufacturers. Engineering and integration work is performed in Canada through 2 existing CF-188 contracts.

Major subcontractors

• Raytheon Intelligence & Space, Arlington, Virginia, USA
• Raytheon Missiles & Defense, Tucson, Arizona, USA
• Lockheed Martin, Orlando, Florida, USA
• Northrop Grumman Corporation, Falls Church, Virginia, USA
• Collins Aerospace, Cedar Rapids, Indiana, USA
• CAE, Arlington, Texas, USA
• L3Harris, Mirabel, Quebec, Canada
• Peraton, Calgary, Alberta, Canada

Project phase

• HEP Phase 1: Implementation
• HEP Phase 2: Implementation

Major milestones

Progress report and explanation of variances

The HEP is achieving project objectives, notably:

• Project Approval (Definition) with Expenditure Authority received on 6 June 2019;
• Independent Review Panel Defence Acquisition (IRPDA) for Phase 2 completed on 20 June 2019;
• Integration meeting with the United States Navy/Air Force to finalize Phase 2 activities, delivery scheduled, and costing completed on 16-17 October 2019;
• Approval (Definition) Phase 2 and (Implementation) with Expenditure Authority and Contracting Authority received on 15 May 2020;
• Received aircraft software source code from the United States Navy to start adding in Canadian capability requirements on 13 November 2020:;
• All 9 Letters of Offer and Acceptance (LOAs) from the United States Government have been accepted for acquisitions under the Foreign Military Sales program on 26 February 2021;
• Establishment of a Detachment at China Lake, California for flight testing 26 July 2021;
• Sniper Pod enhancement contract awarded to Lockheed Martin on 6 October 2021;
• Contract awarded to Northrop Grumman for new GPS/Inertial Navigation system in November 2021;
• Treasury Board Secretariat approval for full Implementation with amended Expenditure Authority and Contracting Authority received on 9 December 2021;
• Facilities contract awarded to Raymond EMC on 4 May 2022; and
• Embedded Global Positioning System / Inertial Navigation System contract awarded to Northrop Grumman on 29 July 2022.

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

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

Schedule: The project is currently on schedule to have equipment delivered and integration completed to meet the capabilities required for Initial Operational Capability by December 2023 and Full Operational Capability by June 2025.

In the Fiscal Year 2022-23, the HEP achieved the following:

• Took initial equipment deliveries including APG-79(v)4 radars, transponders, and a facility;
• Continued flight testing and airworthiness certification activities for new aircraft software and equipment; and
• Finalized plan with L3Harris for HEP aircraft production.

Description

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

Project outcomes

This project currently contributes to Program Inventory 5.3 Aerospace Equipment Acquisition of the Departmental Results Framework, its outcome is to ensure Aerospace equipment projects remain in approved scope, schedule, and expenditure authority. This project will also contribute to Program Inventory 6.2 Defence Infrastructure Construction, Recapitalization and Investment of the Departmental Results Framework, its outcome is to ensure that the departmental infrastructure portfolio is of the right size and composition.

The IFCP has the following project outcomes:

• Successful acquisition of F/A-18-A/B aircraft and integration into the CF-188 fighter fleet;
• Help address the capability gap by having sufficient, mission-ready aircraft to support execution of the roles and missions asked by the Government of Canada; and
• Relocation of AETE from Cold Lake, Alberta to Ottawa, Ontario Airport.

Once the fleet have been introduced into service, they will contribute to various Program Inventories under Operations and Ready Forces. The IFCP will deliver the following capabilities to the DND/CAF, specifically the Royal Canadian Air Force (RCAF):

• Increases number of available F/A-18 aircraft which will contribute towards ensuring operations within Canada, North America, and internationally are effective;
• Ensures Air and Space forces Elements meeting Force Posture and Readiness requirements remain ready;
• Ensures mission-ready aircraft are available as planned to meet training and operational readiness requirements; and
• Once the relocation of AETE from Cold Lake, Alberta to the Ottawa, Ontario Airport is complete, they will be contributing to various Program Inventories under Operations and Ready Forces as a strategic asset for DND and the CAF, specifically the RCAF, by ensuring the timely implementation of new operational capabilities.

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

Major subcontractors

CF-188 Prime Air Vehicle Optimized Weapons System Management Contractor (L-3 Harris), Avionics Optimized Weapons System Management Contractor (Peraton), Propulsion Group System Optimized Weapons System Management Contractor (Magellan)

Project phase

Major milestones

Progress report and explanation of variances

The IFCP is achieving project objectives:

Cost: Selection of the F-35 under the Future Fighter Capability Project (FFCP) improved clarity regarding the transition from legacy to future fighter capability. This enabled the Interim Fighter Capability Project (IFCP) to reduce the total number of aircraft to be released to operational service, while ensuring that the resulting fleet size would be sufficient to meet RCAF operational mandates and support the transition to the future fighter. The reduced number of aircraft released, coupled with increased cost certainty on infrastructure and technical publications work, have enabled the project to remain affordable.

Schedule: Delays were encountered on both equipment and infrastructure. Notably, the project experienced significant delays in the delivery of spares. In relation to the infrastructure associated with the relocation of AETE, delays were attributable to inflation, labor shortages, and global supply chain disruptions, with a cumulative effect of significantly impacting the baseline project schedule.

In the Fiscal Year 2022-23, IFCP achieved the following:

• Completed aircraft acceptance and Canadianization of 4 IFCP aircraft to make them functionally identical to the existing CF-188 fleet, and integrated them into the current fighter force structure, bringing the total number of IFCP aircraft released to RCAF for operations to 12;
• Accepted spare parts and equipment deliveries as they become available;
• Issued the Certificate of Airworthiness for aircraft that are released to service and the ones that are upcoming;
• Negotiated a Firm-Price basis of payment with the Prime Air Vehicle contractor to ensure that remaining aircraft work and integration of technical data and publications can be completed with expenditure guardrails;
• Completed tendering process and awarded contracts for Hangar 14 renovations at the Ottawa International Airport;
• Commencement of Hangar 14 renovations in November 2022; and
• Completed renovation of Lancaster Road facility in Ottawa, Ontario and its occupation by previous occupants of Hangar 14.

Description

The objective of the Joint Support Ship (JSS) project is to deliver 2 new support ships to replace the Royal Canadian Navy’s (RCN) Auxiliary Oiler Replenishment vessels that have reached the end of their service. The capabilities required of the Joint Support Ships are crucial to the RCN. These new Protecteur-class ships will enable a Naval Task Group to remain at sea for extended periods of time. These vessels will provide core replenishment capabilities, plus added capacity for limited sealift and limited support to operations ashore.

Project outcomes

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

The JSS project will deliver 2 Joint Support Ships in support of Strong, Secure, Engaged: Canada’s Defence Policy (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 DND/CAF, specifically the RCN:

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

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

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

Major subcontractors

• Serco Canada Marine Corporation – Ottawa, Ontario, Canada
• Thales Canada Inc. – Ottawa, Ontario, Canada
• Det Norske Veritas - Germanischer Lloyd Canada (DNV-GL) – Montreal, Quebec, Canada
• ThyssenKrupp Marine Systems Canada Inc. – Ottawa, Ontario, Canada
• VARD Electro – Tennfjord, Norway
• VARD Electro Canada Inc. – Vancouver, British Columbia, Canada
• Trident Maritime Systems – Crozet, Virginia, 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

Project phase

Major milestones

Progress report and explanation of variances

The JSS project is achieving project objectives, notably:

• The JSS Project received Project Approval for its implementation in February 2020. Subsequently, the Design and Production Engineering Contract, as well as the Long Lead Items Contract, were amended. The Early Block Build Contract was also amended to act as a bridge until the Build Contract was awarded to Seaspan Vancouver Shipyards in June 2020;
• The Final Design Review was held on 22 July 2021. This was the third and final design review of the JSS design to confirm it meets all of Canada’s requirements;
• Through the Long Lead Items contract, the shipyard has established a comprehensive supply chain involving a significant number of Canadian companies from coast to coast that are delivering essential material and equipment, and are contributing to the project’s progress as well as the Canadian economy;
• Since construction started, originally under the Early Block Build Contract which began in June 2018, 121 of 123 blocks of JSS1 are structurally complete with only the 2 Replenishment at Sea (RAS) posts remaining to be consolidated to the ship. Additionally, there are 23 of 115 JSS2 blocks under construction;
• 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, Quebec) for the Sea-to-Shore connector systems. The first 2 sets of these systems have been delivered with the last 2 sets planned for delivery in 2023 and early 2024.

Scope: The mandate to deliver 2 Joint Support Ships remains unchanged.

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

While construction of both JSS continues to progress, the project has faced challenges because of the COVID-19 pandemic, as well as those related to building a first-of-class ship. Budget risk remains significant given the current forecast for spending indicates the project will exceed current budgetary limits.

Schedule: The project schedule was reviewed, updated, and announced to the public as part of PSPC National Shipbuilding Strategy update on 30 June 2022. The ship deliveries have been delayed because of the COVID-19 pandemic, as well as those related to building a first-of-class ship. With the consolidation of structural steel on JSS1 in early 2023, work focus is shifting to outfitting, such as the installation of cables and piping systems. The project is monitoring shipyard workforce projections to execute the construction plan.

In FY 2022-23, the JSS project achieved the following:

• Significant work was completed for the first ship, including completion of the majority of the steel work, and progressing outfitting;
• Work progressed on the construction of the second ship; and
• Canada took delivery of 2 of the 4 Sea-to-Shore connector systems.

Description

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

Project outcomes

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

The LAV Reconnaissance Surveillance System project has the following project outcomes:

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

Once these vehicles are introduced into service, they will be contributing to various Program Inventories under Operations and Ready Forces. The LAV Reconnaissance Surveillance System project will deliver the following capabilities to the CAF:

• A modernized land fleet that will assist with ensuring operations within Canada, North America, and internationally are effective;
• An element of Deployable Land Forces in support of Force Posture and Readiness; and
• A fleet that is available as planned to meet training and operational readiness requirements.  

Industrial benefits

Canada’s Industrial and Regional Benefits Policy applies to this project. Canada will receive industrial and regional benefits equivalent to 100% of the contracted value from General Dynamics Land Systems-Canada.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

Major subcontractors

Leonardo DRS - Arlington, Virginia, USA

Project phase

Major milestones

Progress report and explanation of variances

The LAV Reconnaissance Surveillance System project has achieved project objectives, notably:

• Surveillance System Critical Design Review 2016; and
• Project Critical Design Review 2019.

Scope: The project is anticipated to deliver the 2014 approved scope.

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

Schedule: The project has experienced a six-year delay against the 2014 approved schedule due to the technical challenges in developing a compliant surveillance system, one of the most significant challenges being the bankruptcy of a major sub-contractor.  Delivery of the first system has been delayed several times from the original 2017 date to 2023.

In FY 2022-23, the LAV Reconnaissance Surveillance System project continued verification of compliance testing and resolution of identified technical challenges, while advancing technical publications and training material development in preparation for initial fielding.

Description

The Logistics Vehicle Modernization (LVM) project will acquire a new fleet of light trucks of a 4 to 5 tonne cargo capacity, trailers and modules to mount on the trucks, and trailers that will provide accommodation space to conduct various tasks (such as office space, command posts, and workshops).  The project will also acquire heavy trucks and trailers with a 15-tonne cargo capacity, trailers for engineering construction equipment and to transport a main battle tank, and modules for accommodation and specialized cargo (such as fuel). Both fleets will acquire armoured protection kits for the cabs. The LVM project will pursue sustainment outcomes tailored to meet Canadian Armed Forces (CAF) operational requirements for the planned 20 years of service. The project will also fund new infrastructure requirements required to support the new fleets. 

Project outcomes

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

The LVM project has the following project outcomes:

• Acquire light and heavy logistics fleets;
• Deliver long-term In-Service Support; and
• Provide 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 DND and the CAF, specifically to the Canadian Army:

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

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

To be determined (TBD)

Major subcontractors

TBD

Project phase

Major milestones

Progress report and explanation of variances

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:
  • Daimler AG (withdrew in September 2020 to join the General Dynamics Land Systems team)
  • General Dynamics Land Systems – Canada Corporation, General Dynamics Land Systems Incorporated
  • Iveco Defence Vehicles S.p.A.
  • Mack Defence LLC and ARQUUS
  • Navistar Defence LLC (withdrew in September 2021 to join the Rheinmetall Inc and Rheinmetall MAN Military Vehicles GmbH team)
  • Oshkosh Defence Canada Incorporated and Oshkosh Defence, LLC
  • Rheinmetall Canada Inc. and Rheinmetall MAN Military Vehicles GmbH

• Engagements with Qualified Suppliers from August 2019 to December 2021 to review and refine requirements and solicitation documents;

• Contract awarded to the Nevada Automotive Test Centre (NATC) to conduct the bid evaluation Technical Compliance Program on 5 August 2020;
• Completed Virtual Industry at-large Engagement session on 29 November 2021; and
• Request for Proposal (RFP) released to the Qualified Suppliers on 9 December 2021.

Year-end Results: In the Fiscal Year 2022-23, the LVM project achieved the following:

• 31 May 2022: Request for Proposal (RFP) closed to the Qualified Suppliers; and
• 1 June 2022: Bid Evaluation Started.

Description

The objective of the Maritime Helicopter Project (MHP) is to acquire a new maritime helicopter capability to replace the CH-124 Sea King. This acquisition will address the operational deficiencies of the current CH-124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multipurpose shipborne Maritime Helicopters for operations well into the 21st century.

Project outcomes

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

The MHP has the following project outcomes:

• Acquire 28 fully equipped Maritime Helicopters;
• 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 DND and the CAF, specifically being delivered to the Royal Canadian Air Force, and will support the Royal Canadian Navy:

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

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. Canada will receive IRBs equivalent to 100% of the contracted value for the acquisitions and 80% of the contracted value for the In-Service Support portion from Sikorsky Aircraft.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

Sikorsky International Operations Incorporated – Stratford, Connecticut, USA

Major subcontractors

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

Project phase

Major milestones

Progress report and explanation of variances

The MHP is achieving project objectives, notably:

• A total of 26 CH-148 Cyclone helicopters have been delivered and accepted, all of which are in the Block 2 configuration, with Capability Release 2.1 kits being implemented on 3 of them; 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 out to 2038 and re-baselined the project schedule.

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

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

In FY 2022-23, the Maritime Helicopter Project achieved the following:

• Accepted 2 aircraft, with 2 deliveries remaining;
• Received Provisional airworthiness clearances of flight and mission simulators;
• Delivery of 2 of 6 maintenance trainers; and
• Initiated the first mission system software enhancement.

Description

The Protected Military Satellite Communications (PMSC) project utilizes the United States (US) Department of Defense (DoD) Advanced Extremely High Frequency (AEHF) Military Satellite Communications (MILSATCOM) System to deliver worldwide (65ºN - 65ºS), assured, protected, secure, survivable, jam-resistant beyond line-of-sight communications between the national command authority and deployed forces in support of Canadian Armed Forces (CAF) missions. The PMSC project is providing the CAF with a protected, global MILSATCOM capability as well as interoperability with the United States, the United Kingdom, and the Netherlands. The project includes MILSATCOM terminals for deployed land, sea, and air forces.

Project outcomes

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 (current state):
  • 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 in place, the new system will contribute to various Program Inventories under Operations and Ready Forces. The project will deliver the following capabilities to DND and the CAF:

• Ensures fleet is available as planned to meet training and operational readiness requirements; and
• Ensures effective operations in Canada, North America, and internationally.

Industrial benefits

The US DoD committed to a work share with Canadian Industry under the completed Phase 1 portion. Canada’s Industrial and Regional Benefits (IRB) Policy was applied to Phase 2 of this project and an IRB agreement was negotiated with Raytheon. Innovation, Science and Economic Development Canada will seek IRBs equivalent to 100% of the contracted value for both the acquisitions and the In-Service Support.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

United States Department of Defense via Foreign Military Sales (FMS)

Major subcontractors

Raytheon – Waltham, Massachusetts, USA

Project phase

Major milestones

Progress report and explanation of variances

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 achieved Full Operational Capability 1 (FOC 1) after completing the first of class installation of the PMSC system on the HMCS Corner Brook Victoria-class Submarine. The trials are scheduled for the fall of 2023. The completion of the 3 remaining submarines will be done by DND/CAF throughout the remainder of the project.

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 June 2034 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 and Support Memorandum of Understanding to 2035 was approved by the Office of the Secretary of Defence in October 2021.

In FY 2022-23, the PMSC project achieved the following:

• Full Operational Capability for the first phase of Implementation (FOC 1) of the PMSC project in June 2022.

Description

The project will deliver a Remotely Piloted Aircraft System (RPAS) capability to support 3 Lines of Tasking, to provide Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) information, and to deliver precision strike effects. The RPAS capability will be integrated as part of a networked, joint system-of-systems, in support of Strong, Secure, Engaged: Canada’s Defence Policy (SSE).

Project outcomes

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 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 DND and CAF, specifically to the Royal Canadian Airforce (RCAF), and will support the Canadian Army, the Royal Canadian Navy (RCN), and the Commanders of the Special Operations Forces and Joint Operational Commands (CJOC).

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

Industrial benefits

Canada’s Industrial and Technological Benefits (ITB) Policy applies to the acquisition and sustainment of the Remotely Piloted Aircraft System. This will require that industry make investments in Canada equal to the value of the acquisition and in-service support contracts/agreements. The Government of Canada will seek, through a competitive process, contractual commitments from industry that align with the Value Proposition (VP) strategic objectives.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

To be determined (TBD)

Major subcontractors

TBD

Project phase

Major milestones

Progress report and explanation of variances

The project RPAS is achieving project objectives, notably:

• Strong, Secure, Engaged: Canada’s Defence Policy (SSE) announced Canada would acquire remotely piloted aircraft systems on 7 June 2017;
• Project Approval (Definition) was received on 4 April 2019;
• 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 from May 2019 to February 2022; and
• The Request For Proposal (RFP) was issued to the 2 Qualified Suppliers. In June 2022, 1 of the 2 qualified suppliers withdrew from the competition on 11 February 2022:

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 in 2021.

Year-end Results: In the Fiscal Year 2022-23, the RPAS project achieved the following:

• Single proposal received from US Government and General Atomics Aeronautical Systems on 8 August 2022;
• Bid evaluation started on 8 August 2022;
• Finalization Phase started with the remaining qualified supplier 30 January 2023; and
•  Contract awared for infrastructure design-build of 14 Wing Greenwood Air Maintenance Detachment in Nova Scotia, on 3 February 2023.

Description

The Strategic Tanker Transport Capability (STTC) project will provide the Royal Canadian Air Force (RCAF) with the ability to refuel aircraft in flight (Air-to-Air Refuelling (AAR)) and the ability to provide airlift for personnel and equipment including aeromedical evacuation. The multi-role platform will provide AAR for both domestic and expeditionary coalition operations, while complementing the strategic airlift capabilities of the RCAF fleet. The STTC aircraft will have the adaptability to transfer between strategic AAR and strategic airlift roles with minimal changes to aircraft configuration. The STTC project will acquire sufficient aircraft to replace the existing fleet capability of 5 CC-150 Polaris aircraft, along with the necessary supporting infrastructure, training capability, and associated In-Service Support (ISS). Inclusion of the North American Aerospace Defence Command (NORAD) Modernization Additional AAR Initiative with STTC will bring an increase to project scope and budget and will deliver an expanded AAR capability that will enable the RCAF to meet NORAD Readiness Posture requirements.

Project outcomes

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

The STTC project, with an increased scope, has the following outcomes:

• To provide Air-to-Air Refuelling to enable CAF force elements;
• To provide the infrastructure and responsiveness to support the Readiness Posture required for NORAD in both Western and Eastern Canada; 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 DND and CAF:

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

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

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

Major subcontractors

TBD

Project phase

Major milestones

Progress report and explanation of variances

Scope: The project is on track to deliver the 2020 approved scope, with increased scope being considered in FY 2023-24, notably:

• Project entered the definition phase in December 2020;
• Invitation to Qualify posted on buyandsell.gc.ca in February 2021;
• Qualified Suppliers list posted on buyandsell.gc.ca in April 2021;
• Virtual Industry Engagement Session held online in June 2021;
• First version of Draft Contract shared with Qualified Suppliers in September 2021;
• Directed Request for Proposal (RFP) to source list suppliers for used aircraft in November 2021;
• RFP for acquisition of STTC multi-role aircraft released to Qualified Supplier in May 2022;
• Project approved for Early Implementation, procurement and operationalization of used A330-200 commercial aircraft in June 2022;
• Contract award for acquisition of 2 used A330-200 aircraft in July 2022;
• Directed second RFP to source list suppliers for additional used aircraft in October 2022; and
• Revised RFP for acquisition of STTC multi-role aircraft released to Qualified Supplier in January 2023.

Cost: The project is currently within the approved December 2020 budget, but with the increased scope from NORAD Modernization, the project is to seek amended Project Approval and Expenditure Authority in FY 2023-24.

Schedule: Following entry to Early Implementation in June 2022, the project is on track to seek approval to enter Acquisition implementation phase.

Year-end Results: In the Fiscal Year 2022-23, the STTC project achieved the following:

• Received approval to commence Early Implementation, which led to the acquisition of the first 2 used Airbus A330-200 aircraft;
• Commenced activities to enable the operation of first 2 CC-330 aircraft, with Ottawa International Airport in Ontario being identified as the interim operating location;
• Awarded interim training and maintenance support contracts to enable operationalization of CC-330 aircraft in strategic airlift role;
• Worked with RCAF and central staffs to develop and recommend plans for the inclusion of the NORAD Modernization Additional AAR initiative within STTC project scope;
• Concluded collaborative development of the aircraft acquisition contract and released a revised RFP to the single Qualified Supplier;
• Completed 2 industry engagement sessions focussing on long-term, in-service support of the STTC Fleet, which provided information to aid in advancement of the Sustainment Business Case Analysis and development of framework options for the long-term ISS RFP; and
• Advanced development of infrastructure requirements definition and planning, with consideration of increased scope for additional AAR.

Description

The objective of the Underwater Warfare Suite Upgrade (UWSU) project is to modernize the underwater warfare sensor suite currently installed in the Halifax-class frigates. The work will address deficiencies, improve ship underwater sensor performance in the challenging littoral environment, and provide a system design to enable continual improvement in a cost-effective manner. The UWSU project will improve the performance of the underwater sensors through the upgrade and/or replacement of the components of the underwater warfare sensor suite. The UWSU In-Service Support Contract (ISSC) will provide long-term, full-spectrum support to the UWSU systems.  

Project outcomes

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 12 full-up, ship-sets that will include a new passive array and low frequency active towed sonar, a new sonobuoy processing system, an upgraded 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 DND and CAF, specifically to the Royal Canadian Navy (RCN):

• 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.

Industrial benefits

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

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

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

Prime contractor

General Dynamics Mission Systems-Canada, Ottawa, Ontario and Dartmouth, Nova Scotia, Canada

Major subcontractors

• 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

Prime contractor (In-Service Support)

General Dynamics Mission Systems-Canada: Ottawa, Ontario and Dartmouth, Nova Scotia, Canada

Project phase

Major milestones

Progress report and explanation of variances

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;
• Amended project approval was received from the Minister of National Defence 14 June 2021; and
• Endorsed a phase software/capability release.

Scope: The project is on track to deliver the implementation phase approved scope of full upgrades for all 12 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.

In FY 2022-23, the UWSU project will aim to achieve the following:

• UWSU hardware production, and installation completed on the first ship, HMCS Ville de Québec;
• Shore-based systems hardware installation completed at Land Based Test Sites (LBTS), and Acoustics Data Analysis Center;
• Equipment packages received for the next 3 shipboard installations; and
• Factory Acceptance Testing of subsystems completed at the contractor site and commenced the software integration process.

Description

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

Project outcomes

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.

Industrial benefits

Industrial Technological Benefits Policy will be considered for all acquisitions more than $20M.

Sponsoring department

Department of National Defence (DND)

Contracting authority

Public Services and Procurement Canada (PSPC)

Participating departments

DND; PSPC; Innovation, Science and Economic Development (ISED)

Prime contractor

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

Major subcontractors

No contracts have been let at this time.

Project phase

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

Major milestones

• Project Approval (Definition) Minor Obsolescence-Mitigation and Maintenance Initiative – November 2020
• Project Approval (Definition) Galley Improvement Project – November 2020
• Project Approval (Definition) Flank Array Modernization Project – November 2020
• Project Approval (Definition) Periscope Modernization Project – November 2020
• Project Approval (Implementation) Messes, Mess Decks and Heads and Wash Places – January 2022
• Project Approval (implementation) Radar Cross Section Signature Reduction and Food Storage – March 2022

Progress report and explanation of variances

The VCM project is achieving project objectives, notably:

• VCM Project received Project Approval for Definition of the Galley Improvement, Flank Array Modernization, and Periscope Modernization Projects in November 2020;
• VCM Project received Minister of National Defence approval for the Minor Obsolescence-Mitigation and Maintenance Initiative in November 2020;
• 3 Minor Capital Projects (Messes, Mess Decks and Heads and Wash Places) received Project Approval for Implementation in January 2022; and
• 2 Minor Capital Projects (Radar Cross Section Signature Reduction and Food Storage) received Project Approval for Implementation March 2022.

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

Cost: The project is within its approved budget.

Schedule: The project has deviated from the schedule approved as part of the November 2020 project definition approval. Initial Operational Capability is scheduled for January 2027 and Full Operational Capability is scheduled for December 2036. Full Operational Capability will be achieved later than forecasted due to changes to the Class Plan for the Victoria-class submarines, which has resulted in the shifting of dates for available installation opportunities.

In the FY 2022-23, the VCM project achieved the following:

• Habitability and deployment upgrades commenced on HMCS Victoria; and
• Requests for Information were released for the Flank Array Modernization Project, the Periscope Modernization Project, the Air Monitoring System Project, and the Solid Waste Handling Project.