Procurement of Capabilities

Description

Procure advanced capabilities to maintain an advantage over potential adversaries and to keep pace with allies, while fully leveraging defence innovation and technology. Streamlined and flexible procurement arrangements ensure that Defence is equipped to conduct missions.

Results

The Department of National Defence (DND) continued to procure advanced capabilities to maintain an operational advantage over potential adversaries, and to keep pace with allies in a difficult environment. Defence procurement is highly challenging, requiring that DND balance procurement costs with operational requirements, schedule, and socio-economic benefits. In FY 2022-23, this was further compounded by a rapidly changing security environment, evolving technology, complex procurements, and staffing shortages in critical areas of procurement. It also continued to be affected by the lingering effects of the pandemic on the global supply chain, impacting such projects as those under the National Shipbuilding Strategy, and resulting in schedule delays and cost escalations.

Effective defence procurement is vital to ensuring the Canadian Armed Forces (CAF) is equipped and ready to fulfill the important missions required to protect and defend Canada and Canadians. It begins with integrated, comprehensive, and focused analyses that shape the development or refinement of CAF capabilities, and in FY 2022-23, the department continued to support defence procurement through rigorous and timely consideration in the project approval process.

The department has collaborated with the North American Aerospace Defense Command (NORAD) to advise on the requisite capabilities and areas of investments required to effectively execute the continental defence missions as outlined in Strong, Secure, Engaged (SSE): Canada's Defence Policy initiatives 109 and 111, North Warning System renewal and NORAD Modernization. United States Northern Command (USNORTHCOM) developed the Integrated Priority List that highlights the capabilities and investments required to effectively execute the NORAD mission sets. The CAF has leveraged USNORTHCOM’s Integrated Priority List to continue advocating for current and future requirementsto influence and inform the DND and the United States Department of Defense acquisition processes.

The department transitioned all North Warning System (NWS) operations and sustainment activities to a new supplier fully incorporating Indigenous procurement considerations and initiated several projects for NWS renewal for execution in FY 2023-24 and FY 2024-25, capitalizing on NWS human resources funding from Budget 2021.

The department continued to leverage the Public Services and Procurement Canada)-led Risk-Based Approach (RBA). In FY 2022-23, efforts were undertaken to better define program eligibility, identify more opportunities to streamline the RBA approval process, and promote the use of the RBA amongst applicable stakeholders using more refined tools, training, and communication. For further details, please see section DR 5.1 of this report. —a pilot that was extended until March 2025—to streamline the approval of eligible low-risk, low-to-medium complexity Defence procurement requirements.

The RBA resulted in average savings of 62 business days in processing time per project for eligible Defence requirement. In addition, Defence requirements approved via the RBA created capacity gains allowing Treasury Board of Secretariat (TBS) resources to focus on the approval of medium-to-high risk and high complexity Defence requirements. Research conducted by PSPC also suggests that Defence procurement practitioners find the RBA process to be less administratively burdensome.

NORAD Modernization Objectives: Canada and the United States continued moving forward with investments to modernize NORAD’s capabilities, and there has been a requirement to synchronize both bilateral and unilateral investments. Starting at the highest level, in the Roadmap for a Renewed United States‑Canada Partnership announced in February 2021, it was agreed to expand cooperation on continental defence and in the Arctic, including NORAD modernization.

Subsequently, the Minister of National Defence and United States Secretary of Defense announced a Joint Statement on NORAD Modernization in August 2021, intended to guide collaborative efforts over the coming years. This work has been guided by a common understanding of NORAD modernization, which refers to the shared commitment to: modernize, improve, and better integrate the capabilities required for NORAD to maintain persistent awareness and understanding of potential threats to North America in the aerospace and maritime domains; to deter acts of aggression against North America; to respond to aerospace threats quickly and decisively when required; and to provide maritime warning consistent with the NORAD Agreement.

NORAD modernization efforts at NORAD Headquarters have been focused on identifying the capabilities and investments required to effectively execute the NORAD mission sets of Aerospace Warning, Aerospace Control and Maritime Warning within the broader defence, security and safety of North America. Advocacy for current and future requirements has been necessary to influence and inform the DND/CAF and the United States Department of Defense acquisition processes. This advocacy continued to better position the DND/CAF and Department of Defense to deliver the capabilities required to regain the competitive military advantage over our adversaries.

The Deputy Minister and the Chief of the Defence Staff released the DND/CAF Implementation Directive on NORAD Modernization to set the strategic conditions that support the Government of Canada intent to modernize Canada’s contribution to NORAD in a manner that provides significant capabilities increase, leveraging allies work on similar capabilities, and rapidly addresses the emerging threats facing Canada and North America. The Defence Capability Board endorsed the proposed location of Canada's Arctic OTHR (A-OTHR) as part of a Canada-United States plan to maximize coverage of the approaches to North America. The Prime Minister announced that Canada's A-OTHR sites would be in Southern Ontario during the United States President visit on 23 and 24 March 2023.

A number of Strong, Secure, Engaged initiatives, specifically 109 (North Warning System Replacement) and 111 (NORAD Modernization), have yet to be fully defined and funded. Given the magnitude and scope of these initiatives, significant collaborative work remains to ensure the DND/CAF deliver relevant, interoperable capabilities that contribute to the collective defence of North America. The CAF proposed investments, build towards modernizing NORAD (in accordance with Strong, Secure, Engaged initiatives 109 and 111) provide the starting point for Canadian capability contributions to NORAD Modernization, inform the broader Government of Canada continental defence policy development, and provide the basis for development of discrete investment options to address specific priority areas or Commander, North American Aerospace Defense Command focus areas. The Joint Statement on NORAD Modernization issued by the Minister of National Defence and the United States Secretary of Defense in August 2021 articulated both nations’ commitment to NORAD Modernization. The Joint Statement prioritizes the following investment areas:

• Situational awareness;
• Modernized command and control systems;
• Capabilities to deter and, if necessary, defeat evolving aerospace threats to North America; and
• Research, Development, and Innovation.

The department continued engaging Indigenous People as partners to work strengthen domestic and continental defence including the implementation of NORAD Modernization. Regarding the land use agreements and requirements, engaging Indigenous partners has provided a holistic approach to understanding their needs and identifying shared solutions such as multipurpose infrastructure, where possible.

Gender-based analysis plus

To ensure effective defence procurement, the department has continued to build Defence Team capacity to conduct Gender-based analysis Plus (GBA Plus), to apply GBA Plus findings and conclusions to decision-making for equipment acquisition and materiel support activities, and to integrate them into the requirements and/or evaluation criteria of Requests for Proposals.In Fiscal Year 2022-23, the department applied GBA Plus findings and conclusions to decision-making for equipment acquisition and materiel support activities and integrated them into the requirements and evaluation criteria of Requests for Proposals. For example:

• The Arctic and Offshore Patrol Ship project was designed and constructed after a full GBA Plus to support diversity and inclusion;
• The Logistics Vehicle Modernization project included the requirement to produce a GBA Plus Compliance Plan to accommodate anthropometric, gender, and religious diversity in its Request for Proposal; and
• The Strategic Tanker Transport Capability project has incorporated GBA Plus considerations into the Statement of Work and Requirements Specification for the Strategic Tanker Transport Capability aircraft. Further engagement with GBA Plus advisors will be initiated as the Request for Proposals for In-Service Support of the Strategic Tanker Transport Capability fleet is developed.

The department monitored progress made by PSPC and Treasury Board Secretariat on the inclusion of the Code of Conduct for Procurement into the Directive on the Management of Procurement. They also monitored the approval of a Supplier Diversity Program in support of the Policy on Social Procurement in preparation for making required changes to Defence Team procurement policy, which will support Government of Canada objectives.

More information on GBA Plus can be found in the “GBA Plus Supplementary Information Table” in the Supplementary Information Tables section of this report.

United Nations’ 2030 Agenda for Sustainable Development and the United Nations Sustainable Development Goals (SDGs)

As directed by SSE initiative 100 and the Defence Energy and Environment Strategy, defence procurement will continue to adhere to Canadian environmental standards and integrate energy and environmental considerations into procurement decision-making. In support of Government of Canada’s net-zero emissions by 2050 objective, procurement of new defence capabilities will conform to the Greening Government Strategy by pursuing energy and operational efficiency. The environmental and energy considerations in defence procurement support the United Nations’ 2030 Agenda for Sustainable Development and the United Nations Sustainable Development Goal #13 Climate Action; and the GBA Plus in decision-making for equipment acquisition and materiel support activities supports the United Nations Sustainable Development Goal #5 Gender Equality.

Key Risks

There are many risks associated with the Procurement of Capabilities Core Responsibility. Three of the Key Corporate Risks are articulated below:

Materiel Procurement – There is a risk that DND/CAF may have difficulty procuring materiel capabilities at the right level to support operations.

Information Technology Procurement – There is a risk that DND/CAF may have difficulty procuring information technology capabilities at the right level to support operations.

Materiel Maintenance – There is a risk that DND/CAF may have difficulty maintaining its materiel capabilities at the right level to support operations.

The risks above can affect the department’s ability to achieve the Departmental Results of the Procurement of Capabilities Core Responsibility.

As the Defence Departmental Results Framework reflects a chain of delivery from conceiving of the required armed forces, to developing them and then executing operations, the activities to mitigate the risks to the Procurement of Capabilities Core Responsibility can also be found in other Core Responsibilities which deliver building blocks that enable the results of Procurement of Capabilities.

Many of the preventative and mitigating controls for these risks are articulated as activities of each Departmental Result below.

Departmental Result 5.1 – Defence procurement is streamlined

In FY 2022-23, DND continued to leverage the PSPC-led Risk-Based Approach (RBA) - a pilot project that was extended until March 2025 - to streamline the approval of eligible low-risk, low-to-medium complexity Defence procurement requirements. Additionally, in January 2023, Treasury Board Secretariat (TBS) and Public Service and Procurement Canada (PSPC) launched a new ‘50-day challenge’ aimed at further streamlining the approval process. The purpose of the ’50-day challenge’ is to reduce the amount of time that it takes TBS to review the requirements and authorize PSPC to exercise exceptional contracting authorities for RBA approval. The ’50- day challenge’ highlights the importance and efforts being undertaken to further streamline Defence procurement.

DND participated in all four meetings of the FY 2022-23 Defence Industry Advisory Group (DIAG). These meetings included DND-led discussions on NORAD modernization efforts, supply chain resiliency, Continuous Capability Sustainment methodology, as well as the creation of NATO’s Defence Innovation Accelerator for the North Atlantic headquarters in Canada, and Defence’s efforts to meet the Government of Canada’s indigenous procurement targets. In addition, DND’s Assistant Deputy Minister of Materiel assumed the Chair for this Group for the 2023 calendar year and held a dedicated meeting of the DIAG to consult industry on the defence policy update and implementation issues.

Beyond the DIAG, the Defence Team participated in the second annual Canadian Defence Marketplace, a virtual networking event held by the Canadian Association of Defence and Security Industries to effectively respond to COVID-19 social distancing requirements as well as CANSEC 2022, the first in-person return of Canada’s largest defence industry trade show since the onset of the global pandemic. DND and CAF officials also spoke at several industry events, including the CAF Outlooks in Ottawa; the Aerospace, Defence and Security Expo in Vancouver, British Columbia; Best Defence Conference in London, Ontario; the Canadian Defence Security and Aerospace Exhibition Atlantic in Halifax, Nova Scotia; the Symposium on the Defence and Security Market in Montreal, Quebec; and the Canadian Global Affairs Institute’s Annual Defence Procurement Conference in Ottawa, Ontario.

The Canadian Army successfully established a new method for delivering operational clothing allowing for the rapid delivery of modernized components. This effort will provide a continuous approach, which allows the development of equipment in alignment with changing operational requirements. This initiative has a governance mechanism in place to ensure items are addressed in a prioritized manner, and which is prepared to adjust development efforts to remain in alignment with the fully envisioned scope.

Finally, the Minister of National Defence (MND) held several roundtables with industry in FY 2022-23. For example, to address supply chain challenges related to the production of munitions that emerged during Canadian efforts to support Ukraine, the MND held a roundtable discussion with the five companies of Canada’s Munitions Supply Program in September 2022. In addition, in January 2023 MND met with the Boards of Directors from Canadian Association of Defence and Security Industries and the Aerospace Industries Association of Canada to discuss the ongoing defence policy update and related industry concerns.

Results achieved

The following table shows, for the Department of National Defence and the Canadian Armed Forces, the results achieved, the performance indicators, the targets and target dates for FY 2022–23, and the actual results for the three most recent fiscal years for which actual results are available.

Departmental results	Performance indicators	Target	Date to achieve target	2020–21 Actual results	2021–22 Actual results	2022-23 Actual results
5.1 Defence procurement is streamlined	% of projects that meet the approved project development and approval timelines (low risk and low complexity projects)	100%	31 March 2023	67%	75%	86%Footnote *
	% of goods and services contracts that are awarded within established performance targets	100%	31 March 2023	92%	96%	95.6%Footnote **

Financial, human resources and performance information for the Department of National Defence and the Canadian Armed Forces’ Program Inventory is available in the GC InfoBase.

Departmental Result 5.2 – Defence equipment acquisition is well managed

To manage the lengthy acquisition process required to develop and implement complex projects, the department continued to grow and professionalize the procurement workforce. Key results for FY 2022-23 include:

• The efforts of the Professionalization Working Group were further progressed through quarterly working group meetings, which enabled collaboration across various professional communities. Additionally, key priorities for future professionalization efforts were identified through a community professionalization assessment, and development of a high-level competency framework was initiated to enable the organization to better understand the competencies required for different roles;
• The Project Management Competency Development Program qualified over 80 project staff at various levels; and
• DND began developing training in Three Point Estimating for Project Schedules, including the delivery of a pilot course, and promoted professionalization through the delivery of various professional development learning sessions for the project management community. Earned Value Management was further progressed resulting in amendments to DND’s policy guidance on project management, the Project Approval Directive.    
  

Key equipment acquisition projects in FY 2022-23, include:

• Manned Airborne Intelligence, Surveillance and Reconnaissance: Construction of the aircraft hangar at 8 Wing Trenton was completed in March 2023 and Aircrew training was ongoing in FY 2022-23. The contractor is mandated to manage the in-service support program, logistics and maintenance and has progressed toward airworthiness accreditation prior to aircraft delivery. As the Test and Evaluation efforts near completion, a more specific delivery date will be known. Based on this latest timeline, delivery of the first Manned airborne intelligence, surveillance and reconnaissance aircraft to the CAF is planned for late 2023, with the other two expected later in 2024. A revised date for Full Operational Capability is being reviewed;
• Canadian Surface Combatant: The project design progressed towards construction readiness. On 16 December 2022, the project completed Preliminary Design Review with appropriate agreed actions and is progressively transitioning towards functional design following a risk-based approach. In December 2022, the project was granted amended authorities for Definition, for work to be completed in parallel with the previously approved ship design efforts and prior to the start of Project Implementation and ship construction. The resulting authorities also included those related to Shipyard and DND Infrastructure scope;
• Arctic and Offshore Patrol Ship: Canada accepted the third of six planned ships, His Majesty’s Canadian Ship (HMCS) Max Bernays, on 2 September 2022. Three more ships are under construction. Construction of the sixth ship, the future HMCS Robert Hampton Gray, began on 15 August 2022. The fourth ship, the future HMCS William Hall, was launched on 27 November 2022. In the summer of 2022, HMCS Margaret Brooke made her first operational deployment as part of Operation NANOOK, setting a record for travelling the furthest north by an Arctic and Offshore Patrol Vessel. HMCS Margaret Brooke also visited Hopedale, Newfoundland and Labrador, conducting an affiliation ceremony with the Nunatsiavut Government;
• Joint Support Ship (JSS): The vast majority of structural steel work on the hull of JSS 1 was completed. The completion of major steelwork for JSS 1 will be achieved in summer 2023 and the contractor is advancing the outfitting of cabling, piping, and equipment onboard JSS 1. Progression on outfitting is the next key stage of ship construction prior to activating systems onboard and bringing the ship alive prior to its launch and delivery. Construction of JSS 2 commenced on 16 May 2022, and a year later in May 2023, there were 27 of 115 blocks are under construction. Additionally, the JSS project office delivered two of four Sea to Shore Connector units;
• Fixed-wing Search and Rescue Aircraft Replacement Project (FWSAR): Six aircraft were accepted, for a total of 15. Several airworthiness certifications and qualifications were completed, including low-level flight, Cold Soak Open Range and Computed Air Release Point. Initial maintenance technician training was completed. Final preparations have been made for commencement of Initial Operational Test and Evaluation, anticipated in early FY 2023-24;
• Future Fighter Capability Project: On 9 January 2023, the Government announced an agreement with the United States Government and Lockheed Martin with Pratt & Whitney for the acquisition of 88 F-35 fighter aircraft for the Royal Canadian Air Force (RCAF). The rigorous and competitive procurement process ensured that DND/CAF have selected the right fighter aircraft, at the right price, with the right benefits for Canadians. To prepare for the arrival of these aircraft in Canada, the department has taken steps for the construction of some of the new fleet’s facilities in Canadian Forces Base (CFB) Bagotville, Quebec and CFB Cold Lake, Alberta;
• Remotely Piloted Aircraft System (RPAS): Following the issuance of a Request for Proposal, the project received a proposal in August 2022. Bid evaluation was completed in FY 2022-23. Proposal finalization activities are underway;
• Strategic Tanker Transport Capability: The project received Treasury Board Secretariat (TBS) approval in June 2022 to enter an early implementation phase. With this approval, the Integrated Project Team awarded a contract for the procurement of two used A330-200 Airbus aircraft and took the steps necessary to prepare to operationalize those two aircraft, including the awarding of a contract for the delivery of training to RCAF aircrew who will fly the two CC-330 aircraft in their current commercial configuration in a strategic airlift role. Additionally, significant progress was made on the continued development of the main aircraft acquisition contract in collaboration with Airbus Defence & Space, with a revised Request for Proposal released in January 2023;
• Logistics Vehicle Modernization Project (LVM): The project released its Request for Proposal in December 2021 and received two bids in May 2022. The project started bid evaluations in June 2022. The bid evaluation is comprised of costing, industrial benefits, economic impact assessment, and technical elements. The latter includes a Technical Compliancy Program wherein bidders' test articles are put through a multitude of field tests;
• Armoured Combat Support Vehicle (ACSV): A total of 86 Type 2 variants have been produced by General Dynamics Land Systems-Canada to date. An additional 39 ACSVs (Troop/Cargo Vehicle variant) previously produced for delivery to Canada were donated to Ukraine by the Government of Canada. These vehicles will be replaced by the contractor.
• CP-140 Aurora Incremental Modernization Project: The project advanced as planned with half the fleet of 14 aircraft modified to the last block of work, Block IV (as of April 2023), and three more on the production line at contractor facilities. Ground and flight testing progressed as anticipated, with Initial Operational Capability (IOC) to be achieved incrementally by capability in FY 2023-24;
• Interim Fighter Capability Project: Selection of the F-35 under the Future Fighter Capability Project improved clarity regarding the transition from legacy to future fighter capability. This enabled the Interim Fighter Capability Project to reduce the total number of aircraft that will be made ready for operational service, while still ensuring that total fleet assets will be sufficient to meet RCAF operational mandates, and support the transition to the future fighter. All aircraft are expected to be in service by FY 2023-24; some equipment deliveries remain outstanding and prior hangar renovation delays were increased by storm damage. The reduced number of operational aircraft required, coupled with increased cost certainty on infrastructure and technical publications work, have enabled the project to remain affordable;
• CF-18 Hornet Extension Project: The project took delivery of scheduled initial equipment and completed the engineering, aircraft software development, and prototyping to permit the start of flight testing. The production line for aircraft modifications is planned to start in May 2023 and the project is on schedule to deliver at least six aircraft for Initial Operational Capability for December 2023;
• CH-148 Cyclone Project: The Maritime Helicopter Project accepted two aircraft, with two deliveries remaining; the in-service support setup progressed, including verification of 300+ operational readiness requirements (verification to be completed in FY 2024-25, provisional airworthiness clearances of flight and mission simulators, delivery of two of six maintenance trainers and initiated the first mission system software enhancement; and
• Victoria-class Modernization: The Victoria-Class Modernization consists of various projects which will enhance the habitability, joint force capability, and survivability of the Victoria-class submarines. In FY 2022-23, the Defence Team began the implementation of several projects that will improve the living conditions in the Victoria-class submarines, including improvements to sleeping quarters, washroom facilities, and galleys. These improvements are being implemented in HMCS Victoria and will be installed in the remaining submarines in the fleet as each submarine enters scheduled maintenance periods. The Defence Team moved to the next phase of the procurement process on three major projects during FY 2022-23, with the finalization of Statements of Operational Requirement and Statements of Work. Prioritization of efforts resulted in a delay in transitioning projects into both the Definition and Implementation Phases.

Results achieved

The following table shows, for the DND and CAF, the results achieved, the performance indicators, the targets and target dates for FY 2022–23, and actual results for the three most recent fiscal years for which results are available.

Departmental results	Performance indicators	Target	Date to achieve target	2020–21 Actual results	2021–22 Actual results	2022-23 Actual results
5.2 Defence equipment acquisition is well-managed	% of capital equipment projects that remain in most recent approved scope	100%	31 March 2023	94.12%	93.8%Footnote *	94%Footnote *
	% of capital equipment projects that remain on most recent approved schedule	100%	31 March 2023	94.12%	93.75%Footnote *	81Footnote **
	% of capital equipment projects that remain within most recent approved expenditure authority	100%	31 March 2023	94.12%	87.5%*	88Footnote ***

Financial, human resources and performance information for the Department of National Defence and the Canadian Armed Forces’ Program Inventory is available in the GC InfoBase.

Departmental Result 5.3 – Defence information technology acquisition is well-managed

DND continued to deliver on key information management, information technology, and space projects as outlined in SSE. Key focuses for FY 2022-23 included:

• Stabilized and optimized third line and support for critical Command and Control (C2) applications and systems;
  • Key players in Director General Information Management Project Delivery (DGIMPD) are involved with the Military Intelligence Integrated Database Community, which is critical to operations and the intelligence function. They are also involved with Machine-assisted Rapid-repository System, which is set to replace Military Intelligence Integrated Database in the coming years. Machine-assisted Rapid-repository System infuses Artificial Intelligence and Machine Learning (ML) and makes it a much richer program for analysts.
• Acted as the departmental representatives for a wide range of in-service, strategic/non-tactical computer information system and strategic communication services:
  • Led a project aimed at consolidating strategic networks.
• Provided assured and timely in-service support to assigned critical/high-priority strategic and operational joint capabilities and services; and
  • Actively involved in Joint Intelligence Surveillance and Reconnaissance (JISR) Executive Committee & JISR Steering Committee; and
  • Provided Wideband Global SATCOM (WGS) and other SATCOM services in support of CAF Operations around the World.
• Collaborated with other capability delivery organizations, within and outside of DND to ensure maximized business and operational benefits.

Search and Rescue Mission Management System (SMMS) has collaborated with numerous capability delivery organizations both within and outside DND including:

• Shared Services Canada to design, integrate and test a new highly redundant Search and Rescue (SAR) network from the SAR sites through to the application in the Cloud;
• The Joint Defence Cloud Program (DND) to establish the first DND Hosted cloud-based application;
• Technical Authority for Joint Strategic Communication collaborated with the 77 Line Regiment (77LR) to deliver DND Third line Maintenance for Strategic Antennas, Cabling, and Towers;
• Project Delivery Authority for Secure Radio Modernization in collaboration with United States Program Management Offices, Communication Security Establishment (CSE), Director General Land Equipment Program Management (DGLEPM), Director General Aerospace Equipment Program Management (DGAEPM), Director General Marine Equipment Program Management (DGMEPM), all Aircraft Fleet Weapon System Managers, Naval Class Desk Managers, RCN Fleet Maintenance Facilities to engineer, integrate, and install Cryptographically Modernized Secure Radios and End Cryptographic Units (ECUs);
• Project Delivery Authority for Defence Cryptographic Modernization (Defence CMP) collaborated with CSE and OGDs to deliver and provide oversight of the DND component of the Canadian Cryptographic Modernization Program (CCMP).

DND delivered full operational capability for the following projects and initiatives in FY 2022-23:

• Juniper Green;
• Enterprise Modernization Initiative, Material Identification; and
• Polar Epsilon 2.

DND continued to adopt project management practices to expedite delivery and to retain agility and flexibility in the fast-evolving information technology capability delivery domain. This effort included:

• Early engagement with industry and delivery partners;
• Close engagement with PSPC and Innovation, Science, and Economic Development Canada to streamline our processes; and
• Created a Space Assistant Deputy Minister Committee to govern a highly complex and highly classified Project Complexity and Risk Assessment level 4 project where the CIO is the lead Implementer.

Maintained close engagement with TBS/the Office of Chief Information Officer to ensure alignment with Government of Canada Digital policy, architecture, and standards.

Results achieved

The following table shows, for the Department of National Defence and Canadian Armed Forces, the results achieved, the performance indicators, the targets and target dates for FY 2022–23, and the actual results for the three most recent fiscal years for which actual results are available.

Departmental results	Performance indicators	Target	Date to achieve target	2020–21 Actual results	2021–22 Actual results	2022-23 Actual results
5.3 Defence information technology acquisition is well-managed	% of information technology projects that remain within approved scope	100%	31 March 2023	100%	100%	100%
	% of information technology projects that remain on approved schedule	100%	31 March 2023	76%	87%	89%Footnote *
	% of information technology projects that remain within approved expenditure authority	100%	31 March 2023	100%	93%	100%

Financial, human resources and performance information for the Department of National Defence and the Canadian Armed Forces’ Program Inventory is available in the GC InfoBase.

Departmental Result 5.4 – Supplies are available and well managed

In FY 2022-23 the department enhanced materiel accountability by continuing to implement modern, effective inventory controls, supply chain management and inventory valuation, such as:

• Developed and implemented a Defence Supply Chain Performance Management Framework that informs decision-making around the areas of materiel readiness, compliance, and optimized cost and that helps prioritize supply chain practitioner work in supporting the CAF;
• Continued to modernize the business processes for substantive and enduring materiel management improvements. In FY 2022-23, workflows, procedures, policies, and practices used to achieve the Defence Supply Chain expected outcomes were evaluated through fit/gap workshops to identify how the replacement Enterprise Resources Planning system will address current business challenges. 1,500 Business Requirements or use cases were reviewed, adjusted, and/or approved; and
• Worked to further improve governance effectiveness, to improve the execution of supply chain functions in support of training and operations.

Results achieved

The following table shows, for the Department of National Defence and Canadian Armed Forces, the results achieved, the performance indicators, the targets and target dates for FY 2022–23, and the actual results for the three most recent fiscal years for which results are available.

Departmental results	Performance indicators	Target	Date to achieve target	2020–21 Actual results	2021–22 Actual results	2022-23 Actual results
5.4 Supplies are available and well managed	% of stock that is unavailable to meet forecasted demand	5.28% or less	31 March 2023	7.36%	7.39%	7.61%Footnote *
	% of stock disposed that was identified as surplus	At least 23%	31 March 2023	33.4%	57.9%	41.5%
	% of stock where Warehouse replenishment settings require review to achieve better materiel positioning and timely customer satisfaction	3.28% or less	31 March 2023	No results available New Indicator as of FY 2022-23	No results available New Indicator as of FY 2022-23	3.34%Footnote **

Notes:

Financial, human resources and performance information for the Department of National Defence and the Canadian Armed Forces’ Program Inventory is available in the GC InfoBase.

Budgetary financial resources (dollars)

The following table shows, for Procurement of Capabilities, budgetary spending for FY 2022-23, as well as actual spending for that year.

2022–23 Main Estimates	2022–23 Planned spending	2022–23 Total authorities available for use	2022–23 Actual spending (authorities used)	2022–23 Difference (actual spending minus planned spending)
4,792,013,007	4,792,013,007	4,877,192,200	3,860,260,422	(931,752,585)

Financial, human resources and performance information for the Department of National Defence and the Canadian Armed Forces’ Program Inventory is available in the GC InfoBase.

Human resources (full-time equivalents)

The following table shows, in full‑time equivalents, the human resources the department needed to fulfill this core responsibility for FY 2022–23.

2022–23 Planned full-time equivalents	2022–23 Actual full-time equivalents	20222–23 Difference (actual full-time equivalents minus planned full-time equivalents)
2,122	2,339	217

Financial, human resources and performance information for the Department of National Defence and the Canadian Armed Forces’ Program Inventory is available in the GC InfoBase.