Section I - Organizational Expenditure Overview - RPP 2015-16

The Honourable Jason Kenney, PC, MP - Minister of National Defence

MINISTER’S MESSAGE

It is my pleasure to report to Parliament and Canadians on the plans and priorities of the Department of National Defence (DND) and the Canadian Armed Forces (CAF)¹ for 2015-16.

In 2015-16, National Defence and the Canadian Armed Forces will continue to successfully fulfill the three roles and six missions of the CAF, as well as implement the vision of a renewed Canada First Defence Strategy (CFDS). This strategy builds on the successes of the first CFDS published in 2008 while adapting to a new security environment.

The CAF will evolve to address these changes. Experience has shown that Defence must be ready at a moment’s notice to respond to crises at home, to provide assistance in support of other countries, and to carry out a combat role when required.

As always, protecting Canada’s sovereignty and ensuring the security of Canadians remains the CAF’s priority. Over the coming years, the CAF will continue to maintain a strong presence across the nation, defending Canada, and protecting its air and maritime approaches. CAF search and rescue crews will stand ready to respond to thousands of incidents and save lives across Canada each year. Our men and women in uniform will also be prepared to assist first responders when natural or man-made disasters strike as they have done so many times in recent years. There continues to be an important role for DND/CAF in Canada’s North. We will maintain our close relationship with whole-of-government partners in the exercise of Arctic sovereignty as demonstrated through operations like NANOOK.

The Defence mission is not carried out in isolation. Just as DND/CAF work alongside other government departments and agencies, we will continue to work hand-in-hand with our traditional allies, as well as new partners. On the greater North American continent, we will strengthen our long-standing and well-entrenched defence relationship with the United States. Through the North American Aerospace Defence Command (NORAD), our two countries will work together in the defence of North America. Additionally, we will conduct exercises and training with the United States to increase the interoperability of our two militaries. We will also work with the United States and other partners to stop international threats from reaching our shores. For example, through Operation CARIBBE, Canada is participating in the multinational campaign against illicit trafficking by transnational organized crime in the Caribbean basin and the eastern Pacific Ocean.

The CAF are prepared to support international partners and multinational organizations such as the North Atlantic Treaty Organization (NATO) and the United Nations, whether providing humanitarian assistance in the face of disaster or conducting military operations to address both conventional and non-conventional threats. This is demonstrated by Canada’s involvement in Operation REASSURANCE where we are working with NATO to enhance security and stability in Central and Eastern Europe, and Operation IMPACT where Canada is working with partners to bolster Iraqi security forces as they fight against extremism. In an ever-evolving security environment, threats may also come in other forms and the CAF must be prepared to deal with them, such as those in the cyber realm.

In the past few years, National Defence has faced a changing fiscal environment. In response, we have launched a number of initiatives, including Defence Renewal, aimed at improving business processes and practices. With these programs underway, 2015-16 will give priority to their implementation. Both Defence Renewal and the renewal of the CFDS are focused on re-evaluating requirements, finding efficiencies and generating savings for reinvestment in military capabilities and readiness, including the internal reinvestment of personnel to higher priority tasks.

National Defence will apply best practices to ensure the CAF have the capabilities to carry out their important missions, working in close partnership with Canadian industry. Improvements have already been made in defence procurement through an open dialogue with Canadian industry, with efforts like the Defence Procurement Strategy and the publication of the Defence Acquisition Guide. These initiatives will provide clarity to the procurement process and ensure industry is better positioned to deliver equipment and services to the CAF. In fact, a number of projects will be seeing significant progress in 2015-16. Having undergone modernization, the first ships of Royal Canadian Navy’s Halifax Class will reintegrate into the fleet. Under the National Shipbuilding Procurement Strategy, construction will begin on the Harry DeWolf Class, Canada’s new Arctic Offshore Patrol vessels. The CAF is also preparing for the integration of a new maritime helicopter with the Navy’s fleet.

A dedicated and hard-working civilian/military workforce – the Defence Team – is required for National Defence to continue to make headway on Defence priorities. The military and civilian personnel of the Defence Team are the most important asset in achieving operational excellence and implementing the objectives we have set out in the CFDS. Taking care of this Team remains a priority. The Government of Canada will continue to honour the commitment of CAF personnel and their families by ensuring that appropriate support is provided and continuously improved. This includes comprehensive mental health and medical care.

The Reserve Force is a key contributor to operations and support of the CAF, and we will continue to see that their role within the Defence Team is a strong one. A high-performing civilian workforce is also vital to Defence in all areas, including Defence research and materiel support. We are committed to delivering on Destination 2020 – the next phase of public service renewal – and to providing our civilian workforce with a safe and respectful workplace that keeps pace with our changing environment.

The successes of today are built on a foundation of past achievements. In 2015-16, National Defence will continue to commemorate significant events in Canada’s history and times of conflict such as the 75^th anniversary of the Battle of Britain. We will also plan for future commemorations including the 75^th anniversary of the Dieppe Raid and the centennials of the Battles of the Somme and Beaumont-Hamel, Vimy Ridge and Passchendaele.

I am proud of these accomplishments and honoured to lead this great Department. I look forward to working with Canadians and my colleagues in Parliament to strengthen the Defence institution in the coming year.

The Honourable Jason Kenney, P.C., M.P.

Minister of National Defence

SECTION I: ORGANIZATIONAL EXPENDITURE OVERVIEW

ORGANIZATIONAL PROFILE

Appropriate Minister: The Honourable Jason Kenney, P.C., M.P.

Institutional Head: John Forster, Deputy Minister

Chief of the Defence Staff: General Thomas J. Lawson, CMM, CD

Ministerial Portfolio:

Department of National Defence
Canadian Armed Forces
Communications Security Establishment ²
Military Police Complaints Commission ³
Military Grievances External Review Committee ⁴
Office of the Communications Security Establishment Commissioner ⁵

Enabling Instruments:

For further information, see the Legislation and National Defence ¹⁰ page on the Defence website.

Year of Incorporation / Commencement: 1923

Other: For further information, see the Department of National Defence and the Canadian Armed Forces website ¹¹ .

ORGANIZATIONAL CONTEXT

Raison d’être and Responsibilities

On behalf of the people of Canada, the Canadian Armed Forces (CAF) and the Department of National Defence (DND) stand ready to perform three key roles:

Defend Canada - by delivering excellence at home;
Defend North America - by being a strong and reliable partner with the United States in the defence of the continent; and
Contribute to International Peace and Security - by projecting leadership abroad.

Released in 2008, the Canada First Defence Strategy (CFDS) ¹² sets a detailed roadmap for the modernization of the CAF to enable the continued delivery on these roles. The Strategy also commits National Defence to the execution of six core missions:

Conduct daily domestic and continental operations, including in the Arctic and through the North American Aerospace Defence Command (NORAD);
Support a major international event in Canada;
Respond to a major terrorist attack;
Support civil authorities during a crisis in Canada such as a natural disaster;
Lead and/or conduct a major international operation for an extended period; and
Deploy forces in response to crises elsewhere in the world for shorter periods.

In 2015-16, Defence will continue to successfully fulfill the three roles and six missions above, as well as implement the vision of the renewed Canada First Defence Strategy ¹³ , while also accomplishing the following defence activities:

Continue to deliver on our Defence priorities while supporting the Government of Canada’s domestic and international goals;
Maintain defence readiness in order to respond to an evolving global security environment;
Continue to strengthen and support a strong military and civilian workforce; and
Carry out the defence mission, implementing identified efficiency measures to ensure sound financial management of the Defence budget and stewardship of public resources.

This Defence mandate is the responsibility of the Minister of National Defence (MND). The MND presides over the Department and over all matters relating to National Defence and the CAF, as established by the National Defence Act (NDA). He is assisted by the Deputy Minister (DM), who is appointed by the Governor-in-Council on the advice of the Prime Minister and is the MND’s most senior civilian advisor, authorized under the law to carry out, on the Minister’s behalf, many aspects of the management and direction of the Department. He is responsible for policy advice, departmental management, interdepartmental coordination, international defence relations, public service renewal, federal-provincial relations, and portfolio management. He is also an Accounting Officer under the Financial Administration Act and is accountable before Parliamentary Committees to provide explanations on matters for which he is responsible. The Chief of the Defence Staff (CDS) has direct responsibility for the command, control and administration of the CAF, and is appointed by the Governor-in-Council, on the advice of the Prime Minister. The CDS advises the MND on issues such as current and future military requirements, force capabilities, and possible courses of action and the military or operational consequences of undertaking (or failing to undertake) various military activities. The CDS is accountable to the MND for the conduct of all CAF activities, as well as for the readiness and the ability to fulfill military commitments and obligations undertaken by the Government. The CDS is also the advisor to the Prime Minister and Cabinet on major military developments and issues.

Strategic Outcomes and Program Alignment Architecture

The Government of Canada’s Management, Resources and Results Structure ¹⁴ (MRRS) is the foundation of a government-wide approach aimed at strengthening the management and accountability of public expenditures and clearly demonstrating results for Canadians. The Program Alignment Architecture (PAA) is part of the MRRS. Defence’s PAA shows how its programs align with the Department’s two strategic outcomes. Internal Services is a stand-alone program which defines activities and resources that support the organization’s program needs and corporate obligations.

Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values

1.0 Program: Defence Combat and Support Operations
1.1 Sub-Program: Domestic and Continental Defence Operations
1.1.1 Sub-Sub-Program: Operations to Defend Canada Against Armed Threats
1.1.2 Sub-Sub-Program: Ongoing Defence, Security and Sovereignty of Canada Operations
1.1.3 Sub-Sub-Program: Ongoing Defence Operations through NORAD
1.1.4 Sub-Sub-Program: Ongoing Continental Defence Operations in Cooperation with the United States
1.2 Sub-Program: International Combat Operations
1.2.1 Sub-Sub-Program: International Operations over Extended Periods
1.2.2 Sub-Sub-Program: International Crisis and Surge Response Operations
1.2.3 Sub-Sub-Program: Ongoing Defence Operations through Standing NATO Commitments
1.3 Sub-Program: Ongoing Centralized Operations and Operational Enablement
1.3.1 Sub-Sub-Program: Overarching Command and Control of Domestic and International Operations
1.3.2 Sub-Sub-Program: Ongoing Defence Intelligence Operations
1.3.3 Sub-Sub-Program: Operational Support Services
1.3.4 Sub-Sub-Program: Military Diplomacy and Global Engagement
2.0 Program: Defence Services and Contributions to Government
2.1 Sub-Program: Disaster Relief and Humanitarian Operations
2.1.1 Sub-Sub-Program: Domestic and Continental Assistance and Response Operations
2.1.2 Sub-Sub-Program: International Humanitarian Assistance and Disaster Response Operations
2.1.3 Sub-Sub-Program: Non-Combatant Evacuation Operations
2.2 Sub-Program: Defence Services for Canadian Safety and Security
2.2.1 Sub-Sub-Program: Counter Terrorism, Terrorism Event Response and Consequence Management Operations
2.2.2 Sub-Sub-Program: Assistance to Major Canadian Event Operations
2.2.3 Sub-Sub-Program: National Search and Rescue Program
2.2.4 Sub-Sub-Program: Search and Rescue Operations
2.2.5 Sub-Sub-Program: Defence Services to other Government Departments and Agencies
2.2.6 Sub-Sub-Program: Canadian Safety and Security Program
2.3 Sub-Program: Military Heritage and Outreach
2.3.1 Sub-Sub-Program: Military History, Heritage and Awareness
2.3.2 Sub-Sub-Program: Youth Program

Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values

3.0 Program: Defence Ready Force Element Production
3.1 Sub-Program: Force Elements Readiness Sustainment
3.1.1 Sub-Sub-Program: Maritime Roles - Readiness Sustainment
3.1.2 Sub-Sub-Program: Land Roles - Readiness Sustainment
3.1.3 Sub-Sub-Program: Aerospace Roles - Readiness Sustainment
3.1.4 Sub-Sub-Program: Special Operations Roles - Readiness Sustainment
3.1.5 Sub-Sub-Program: Joint and Common Roles - Readiness Sustainment
3.2 Sub-Program: Force Elements Integration Training
3.2.1 Sub-Sub-Program: Maritime Environment - Integration Training
3.2.2 Sub-Sub-Program: Land Environment - Integration Training
3.2.3 Sub-Sub-Program: Aerospace Environment - Integration Training
3.2.4 Sub-Sub-Program: Special Operations - Integration Training
3.2.5 Sub-Sub-Program: Joint - Integration Training
3.2.6 Sub-Sub-Program: International and Domestic - Interoperability Training
3.3 Sub-Program: Force Elements Production
3.3.1 Sub-Sub-Program: Maritime Environment - Force Element Production
3.3.2 Sub-Sub-Program: Land Environment - Force Element Production
3.3.3 Sub-Sub-Program: Aerospace Environment - Force Element Production
3.3.4 Sub-Sub-Program: Special Operations - Force Element Production
3.3.5 Sub-Sub-Program: Joint and Common - Force Element Production
3.4 Sub-Program: Operational Readiness Production, Coordination and Command and Control
3.4.1 Sub-Sub-Program: Maritime Environment - Force Element Production, Coordination and Command and Control
3.4.2 Sub-Sub-Program: Land Environment - Force Element Production, Coordination and Command and Control
3.4.3 Sub-Sub-Program: Aerospace Environment - Force Element Production, Coordination and Command and Control
3.4.4 Sub-Sub-Program: Special Operations Forces - Force Element Production, Coordination and Command and Control
3.4.5 Sub-Sub-Program: Joint and Common - Force Elements Production, Coordination and Command and Control
4.0 Program: Defence Capability Element Production
4.1 Sub-Program: Military Personnel and Organization Lifecycle
4.1.1 Sub-Sub-Program: Military Personnel - Regular Force Portfolio Management
4.1.2 Sub-Sub-Program: Military Personnel - Reserve Force Portfolio Management
4.1.3 Sub-Sub-Program: Military Personnel - Recruitment
4.1.4 Sub-Sub-Program: Military Personnel - Transition and Release
4.1.5 Sub-Sub-Program: Military Personnel - Professional Development Training
4.1.6 Sub-Sub-Program: Military Personnel - Occupation Training
4.1.7 Sub-Sub-Program: Military Personnel - Morale and Well Being
4.1.8 Sub-Sub-Program: Military Personnel - Health Care
4.1.9 Sub-Sub-Program: Organization - Security, Protection, Justice and Safety
4.1.10 Sub-Sub-Program: Military Personnel and Organization - Strategic Coordination, Development and Control
4.2 Sub-Program: Materiel Lifecycle
4.2.1 Sub-Sub-Program: Materiel - Portfolio Management
4.2.2 Sub-Sub-Program: Materiel – Acquisition
4.2.3 Sub-Sub-Program: Materiel - Equipment Upgrade and Insertion
4.2.4 Sub-Sub-Program: Materiel - Divestment and Disposal
4.2.5 Sub-Sub-Program: Materiel - Engineering, Test, Production and Maintenance
4.2.6 Sub-Sub-Program: Materiel - Inventory Management and Distribution
4.2.7 Sub-Sub-Program: Materiel - Strategic Coordination, Development and Control
4.3 Sub-Program: Real Property Lifecycle
4.3.1 Sub-Sub-Program: Real Property - Portfolio Management
4.3.2 Sub-Sub-Program: Real Property - Acquisition
4.3.3 Sub-Sub-Program: Real Property - Divestment and Disposal
4.3.4 Sub-Sub-Program: Real Property - Operations, Maintenance and Repair
4.3.5 Sub-Sub-Program: Real Property - Environment and Remediation
4.3.6 Sub-Sub-Program: Real Property - Strategic Coordination, Development and Control
4.4 Sub-Program: Information Systems Lifecycle
4.4.1 Sub-Sub-Program: Info Systems - Portfolio Management
4.4.2 Sub-Sub-Program: Info Systems - Acquisition, Development and Deployment
4.4.3 Sub-Sub-Program: Info Systems - System Management and User Support
4.4.4 Sub-Sub-Program: Info Systems - Strategic Coordination, Development and Control
5.0 Program: Defence Capability Development and Research
5.1 Sub-Program: Capability Design, Development and Integration
5.1.1 Sub-Sub-Program: Capability Design and Management
5.1.2 Sub-Sub-Program: Concept, Doctrine Development and Warfare Experimentation
5.1.3 Sub-Sub-Program: Science and Systems Development and Integration
5.2 Sub-Program: Strategic Direction and Planning Support
5.2.1 Sub-Sub-Program: Strategic Capability Planning Support
5.2.2 Sub-Sub-Program: Strategic Force Posture Planning Support
6.0 Program: Internal Services
6.1 Sub-Program: Management and Oversight
6.2 Sub-Program: Communications
6.3 Sub-Program: Legal Services
6.4 Sub-Program: Human Resources Management
6.5 Sub-Program: Financial Management
6.6 Sub-Program: Information Management
6.7 Sub-Program: Information Technology
6.8 Sub-Program: Real Property
6.9 Sub-Program: Materiel
6.10 Sub-Program: Acquisition

Organizational Priorities

Organizational priorities express the key areas of focus for Defence to accomplish its mission. The Defence Renewal Team will support Defence’s priority management by providing continuous assessment and identification of opportunities for efficiency and reinvestment of resources back into the Department. In 2015-16, Defence will focus on the organizational priorities presented below.

Priority: Ensuring Sustainable Operational Excellence both at Home and Abroad for the Defence of Canada and the Protection of Canadians
Type ¹: Ongoing Strategic Outcomes: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values
Description
Why this is a priority? The ultimate measure of success of the Defence Team is the successful conduct of operations by the CAF to protect Canadians and Canadian national interests at home and abroad. All Defence activities and efforts must be directed towards these ends. What are the plans for meeting this priority? The following are the various priority elements common to the priority theme along with their respective plans in 2015-16. Further details are provided in Section II under the supported Strategic Outcomes. Priority Element: In order to aid, defend and protect Canada and Canadians, Defence needs to be able to continue its operations in the face of any possible situation including but not limited to natural disasters, infectious disease outbreaks, or hostile attacks. Plan: Implement initiatives to improve Defence Business Continuity (See: 6.0 Internal Services) Priority Element: Defence requires an integrated and secure, flexible and agile information environment that is conducive to efficient operations and decision making. Plan: Provide an integrated and effective IM and IT environment in support of all Defence operations (See: 4.4.1: Info Systems – Portfolio Management, 4.4.3: Info Systems - System Management and User Support, 4.4.4: Info Systems – Strategic Coordination, Development and Control, 5.1.1 Capability Design and Management) Priority Element: The Policy on Government Security directs all departments and agencies to ensure that security management is an identifiable and integral element of departmental governance, programs and services. Plan: Develop and implement initiatives to integrate security management into departmental operations (See: 4.1.9 Organization – Security, Protection, Justice and Safety, 4.4.1: Info Systems – Portfolio Management, 4.4.3: Info Systems - System Management and User Support, 6.0 Internal Services) Priority Element: In the coming years, a number of significant historical anniversaries will be celebrated. Events such as the 100^th anniversary of World War I, including a significant number of regimental centenaries, the 75^th anniversary of World War II as well as the 150^th anniversary of the Confederation in 2017, will all have significant resource implications. These events represent a significant opportunity to engage Canadians and deepen their understanding of the contributions that the Royal Canadian Navy, the Canadian Army, the Royal Canadian Air Force and Defence have made to the development of the nation throughout its history. Plan: Support Government efforts for commemoration of important anniversaries (See: 2.3.1 Military History, Heritage and Awareness, 6.2 Communications) Priority Element: Exercising Canadian Arctic sovereignty is a priority of the Government of Canada, as articulated in Canada’s Northern Strategy, the Arctic Foreign Policy and the Canada First Defence Strategy. Plan: Exercise Arctic sovereignty (See: 1.1.2 Ongoing Defence, Security and Sovereignty of Canada Operations, 1.3.1 Overarching Command and Control of Domestic and International Operations)
Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the Report on Plans and Priorities or the Departmental Performance Report.

Priority: Maintaining Required CAF Posture and Defence Readiness
Type: Ongoing Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values
Description
Why this is a priority? Defence will maintain its ability to deliver the Canada First Defence Strategy (CFDS) by managing operational readiness in support of its Six Core Missions within Canada, in North America and in support of international operations. What are the plans for meeting this priority? The following are the various priority elements common to the priority theme along with their respective plans in 2015-16. Further details are provided in Section II under the supported Strategic Outcome. Priority Element: The CAF must ensure resources are aligned and available to support determined readiness levels and therefore able to posture military capability to meet planned and anticipated requirements of the Government of Canada as articulated in the CFDS. Plan: Assess and monitor CAF Force Posture and Defence Readiness in regard to the domestic and international situation (See: 3.0 Defence Ready Force Element Production, 3.1.1 Maritime Roles – Readiness Sustainment, 3.1.2 Land Roles – Readiness Sustainment, 3.1.3 Aerospace Roles – Readiness Sustainment, 3.1.5 Joint and Common Roles - Readiness Sustainment, 3.4.5 Joint and Common - Force Elements Production, Coordination and Command and Control, 5.1.3 Science and Systems Development and Integration) Priority Element: The alignment of resources and equipment to required levels of readiness enables the CAF to conduct missions when required, and includes such things as establishing a link between readiness levels and resources and front-line equipment maintenance. The CAF must be prepared and ready to meet a broad range of possible future tasks in line with evolving Government of Canada defence priorities. Plan: Implement the Defence Renewal strategic initiatives contributing to CAF Posture and Defence Readiness (See: 5.2.2 Strategic Force Posture Planning Support) Priority Element: The CFDS is the primary guiding document for DND/CAF and across the Defence portfolio. The Government will publish and the Department will implement CFDS Renewal in order to meet current and future challenges. *Plan: Undertake Canada First* Defence Strategy Renewal** (See: 5.1.1 Capability Design and Management, 6.1 Management and Oversight)

Priority: Maintaining Required CAF Posture and Defence Readiness

Type: Ongoing

Strategic Outcome:

Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values

Description

Why this is a priority?
Defence will maintain its ability to deliver the Canada First Defence Strategy (CFDS) by managing operational readiness in support of its Six Core Missions within Canada, in North America and in support of international operations.

What are the plans for meeting this priority?
The following are the various priority elements common to the priority theme along with their respective plans in 2015-16. Further details are provided in Section II under the supported Strategic Outcome.

Priority Element: The CAF must ensure resources are aligned and available to support determined readiness levels and therefore able to posture military capability to meet planned and anticipated requirements of the Government of Canada as articulated in the CFDS.
- Plan: Assess and monitor CAF Force Posture and Defence Readiness in regard to the domestic and international situation (See: 3.0 Defence Ready Force Element Production, 3.1.1 Maritime Roles – Readiness Sustainment, 3.1.2 Land Roles – Readiness Sustainment, 3.1.3 Aerospace Roles – Readiness Sustainment, 3.1.5 Joint and Common Roles - Readiness Sustainment, 3.4.5 Joint and Common - Force Elements Production, Coordination and Command and Control, 5.1.3 Science and Systems Development and Integration)
Priority Element: The alignment of resources and equipment to required levels of readiness enables the CAF to conduct missions when required, and includes such things as establishing a link between readiness levels and resources and front-line equipment maintenance. The CAF must be prepared and ready to meet a broad range of possible future tasks in line with evolving Government of Canada defence priorities.
- Plan: Implement the Defence Renewal strategic initiatives contributing to CAF Posture and Defence Readiness (See: 5.2.2 Strategic Force Posture Planning Support)
Priority Element: The CFDS is the primary guiding document for DND/CAF and across the Defence portfolio. The Government will publish and the Department will implement CFDS Renewal in order to meet current and future challenges.
- Plan: Undertake Canada First Defence Strategy Renewal (See: 5.1.1 Capability Design and Management, 6.1 Management and Oversight)

Priority: Strengthening the Defence Team
Type: Ongoing Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values
Description
Why this is a priority? By investing in the Personnel pillar of the Canada First Defence Strategy (CFDS) – military and civilian, National Defence will align the Defence Team to ensure successful execution of the Six Core Missions within Canada, North America and around the globe. What are the plans for meeting this priority? The following are the various priority elements common to the priority theme along with their respective plans in 2015-16. Further details are provided in Section II under the supported Strategic Outcome. Priority Element: Building a modern, technologically advanced and capable military is becoming increasingly dependent on having in place the right personnel with the right skills at the right time, and aligning this to evolving capabilities and organizational needs. Plan: Implement the Defence Renewal strategic initiatives contributing to strengthening the Defence Team (See: 2.3.2 Youth Program, 3.4.3 Aerospace Environment - Force Element Production, Coordination and Command and Control, 4.1 Military Personnel and Organization Lifecycle, 4.1.1 Military Personnel - Regular Force Portfolio Management, 4.1.3 Military Personnel - Recruitment, 4.1.5 Military Personnel - Professional Development Training, 6.1 Management and Oversight, 6.4 Human Resources Management) Priority Element: The Government of Canada has a moral commitment to military personnel in recognition of the sacrifices they make and the services they render. As part of Economic Action Plan 2013, the Government committed to examining disability management in the public service. Plan: Provide enhanced support to the ill and the injured and to the families of CAF members (See: 4.1.7 Military Personnel - Morale and Well Being, 4.1.8 Military Personnel - Health Care) Priority Element: The personnel pillar of the CFDS is a critical component in enabling the CAF to deliver excellence at home, and be a strong and reliable defence partner of North America and a valuable contributor to overseas operations. The strategic effect to be achieved is to ensure that the right military and civilian personnel, with the right qualifications, are in the right place at the right time. Plan: Advance a comprehensive plan or initiatives to align and optimize the military and civilian workforce (See: 4.1.2 Military Personnel - Reserve Force Portfolio Management, 4.1.10 Military Personnel and Organization - Strategic Coordination, Development and Control, 5.1.1 Capability Design and Management, 6.4 Human Resources Management) Priority Element: Defence requires an adaptive, agile and responsive personnel management system that meets personnel capability requirements and provides progressive professional development and competency-based employment to meet organizational needs. Plan: Maximize military and civilian potential by continuing to strengthen leadership capacity through succession planning, continuous learning and professional development (See: 4.1.10 Military Personnel and Organization - Strategic Coordination, Development and Control, 6.4 Human Resources Management) Priority Element: Defence’s operational effectiveness depends on the formulation and implementation of specific programs to maximize the prevention of hazardous occurrences and minimize the impact of injury, illness and disease, thus contributing to the morale and well-being of all personnel. Plan: Implement the Defence Occupational Health and Safety Plan (See: 4.1.9 Organization - Security, Protection, Justice and Safety)

Priority: Strengthening the Defence Team

Type: Ongoing

Strategic Outcome:

Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values

Description

Why this is a priority?
By investing in the Personnel pillar of the Canada First Defence Strategy (CFDS) – military and civilian, National Defence will align the Defence Team to ensure successful execution of the Six Core Missions within Canada, North America and around the globe.

Priority Element: Building a modern, technologically advanced and capable military is becoming increasingly dependent on having in place the right personnel with the right skills at the right time, and aligning this to evolving capabilities and organizational needs.
- Plan: Implement the Defence Renewal strategic initiatives contributing to strengthening the Defence Team (See: 2.3.2 Youth Program, 3.4.3 Aerospace Environment - Force Element Production, Coordination and Command and Control, 4.1 Military Personnel and Organization Lifecycle, 4.1.1 Military Personnel - Regular Force Portfolio Management, 4.1.3 Military Personnel - Recruitment, 4.1.5 Military Personnel - Professional Development Training, 6.1 Management and Oversight, 6.4 Human Resources Management)
Priority Element: The Government of Canada has a moral commitment to military personnel in recognition of the sacrifices they make and the services they render. As part of Economic Action Plan 2013, the Government committed to examining disability management in the public service.
- Plan: Provide enhanced support to the ill and the injured and to the families of CAF members (See: 4.1.7 Military Personnel - Morale and Well Being, 4.1.8 Military Personnel - Health Care)
Priority Element: The personnel pillar of the CFDS is a critical component in enabling the CAF to deliver excellence at home, and be a strong and reliable defence partner of North America and a valuable contributor to overseas operations. The strategic effect to be achieved is to ensure that the right military and civilian personnel, with the right qualifications, are in the right place at the right time.
- Plan: Advance a comprehensive plan or initiatives to align and optimize the military and civilian workforce (See: 4.1.2 Military Personnel - Reserve Force Portfolio Management, 4.1.10 Military Personnel and Organization - Strategic Coordination, Development and Control, 5.1.1 Capability Design and Management, 6.4 Human Resources Management)
Priority Element: Defence requires an adaptive, agile and responsive personnel management system that meets personnel capability requirements and provides progressive professional development and competency-based employment to meet organizational needs.
- Plan: Maximize military and civilian potential by continuing to strengthen leadership capacity through succession planning, continuous learning and professional development (See: 4.1.10 Military Personnel and Organization - Strategic Coordination, Development and Control, 6.4 Human Resources Management)
Priority Element: Defence’s operational effectiveness depends on the formulation and implementation of specific programs to maximize the prevention of hazardous occurrences and minimize the impact of injury, illness and disease, thus contributing to the morale and well-being of all personnel.
- Plan: Implement the Defence Occupational Health and Safety Plan (See: 4.1.9 Organization - Security, Protection, Justice and Safety)

Priority: Ensuring Defence Affordability
Type: Ongoing Strategic Outcomes: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values
Description
Why this is a priority? To ensure Defence affordability in the short, medium and long term, the Defence Team must balance each of the four pillars of the Canada First Defence Strategy (CFDS) – Personnel, Equipment, Readiness and Infrastructure and carefully manage investments to maximize capability output, ensure stewardship of Defence resources and deliver best value for Canada. What are the plans for meeting this priority? The following are the various priority elements common to the priority theme along with their respective plans in 2015-16. Further details are provided in Section II under the supported Strategic Outcomes. Priority Element: Defence will take advantage of savings achieved through optimizing organizations and procedures can be reinvested in operational capability and readiness. Plan: Implement the Defence Renewal strategic initiatives contributing to Defence affordability (See: 4.3.1 Real Property - Portfolio Management, 4.3.2 Real Property - Acquisition, 4.3.5 Real Property - Environment and Remediation, 4.3.6 Real Property - Strategic Coordination, Development and Control, 6.1 Management and Oversight) Priority Element: Defence strategic level resource planning must be able to respond quickly, effectively and efficiently to significant changes in the strategic picture. Plan: Improve the strategic management framework (See: 6.1 Management and Oversight, 6.2 Communications) Priority Element: Defence must maintain an affordable and sustainable Investment Plan that delivers on CFDS commitments while also accounting for the potential for cost increases and funding requirements for new and expanded capabilities. Plan: Improve management of the Investment Plan to balance the CFDS requirements (See: 5.1.3 Science and Systems Development and Integration, 5.2.1 Strategic Capability Planning Support, 6.5 Financial Management) Priority Element: The Government has directed that a new framework for Defence procurement be put into practice and to improve Defence’s capacity for timely delivery of capital assets to meet the CFDS objectives and maximize the broader economic agenda of the Government. Plan: Support the implementation of the Defence Procurement Strategy and improve Defence procurement (See: 4.2.2 Materiel – Acquisition, 4.2.6 Materiel - Inventory Management and Distribution, 4.2.7 Materiel - Strategic Coordination, Development and Control) Priority Element: Implementing the Policy on Internal Control will allow Defence to ensure an effective risk-based system of Internal Control over Financial Reporting (ICFR) is in place. Plan: Continue to strengthen the core Control Framework in support of the Treasury Board Policy on Internal Control (See: 6.5 Financial Management) Priority Element: Defence must be able to demonstrate compliance with Government regulations and Treasury Board mandatory reporting requirements pertaining to procurement, management and control of inventories. Plan: Continue to strengthen the effective stewardship and management of inventory and materiel resources while implementing the Defence Renewal maintenance and materiel strategic initiatives (See: 4.2.2 Materiel – Acquisition, 4.2.5 Materiel - Engineering, Test, Production and Maintenance, 4.2.6 Materiel - Inventory Management and Distribution, 6.10 Acquisition)

Priority: Ensuring Defence Affordability

Type: Ongoing

Strategic Outcomes:

Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values
Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values

Description

Why this is a priority?
To ensure Defence affordability in the short, medium and long term, the Defence Team must balance each of the four pillars of the Canada First Defence Strategy (CFDS) – Personnel, Equipment, Readiness and Infrastructure and carefully manage investments to maximize capability output, ensure stewardship of Defence resources and deliver best value for Canada.

Priority Element: Defence will take advantage of savings achieved through optimizing organizations and procedures can be reinvested in operational capability and readiness.
- Plan: Implement the Defence Renewal strategic initiatives contributing to Defence affordability (See: 4.3.1 Real Property - Portfolio Management, 4.3.2 Real Property - Acquisition, 4.3.5 Real Property - Environment and Remediation, 4.3.6 Real Property - Strategic Coordination, Development and Control, 6.1 Management and Oversight)
Priority Element: Defence strategic level resource planning must be able to respond quickly, effectively and efficiently to significant changes in the strategic picture.
- Plan: Improve the strategic management framework (See: 6.1 Management and Oversight, 6.2 Communications)
Priority Element: Defence must maintain an affordable and sustainable Investment Plan that delivers on CFDS commitments while also accounting for the potential for cost increases and funding requirements for new and expanded capabilities.
- Plan: Improve management of the Investment Plan to balance the CFDS requirements (See: 5.1.3 Science and Systems Development and Integration, 5.2.1 Strategic Capability Planning Support, 6.5 Financial Management)
Priority Element: The Government has directed that a new framework for Defence procurement be put into practice and to improve Defence’s capacity for timely delivery of capital assets to meet the CFDS objectives and maximize the broader economic agenda of the Government.
- Plan: Support the implementation of the Defence Procurement Strategy and improve Defence procurement (See: 4.2.2 Materiel – Acquisition, 4.2.6 Materiel - Inventory Management and Distribution, 4.2.7 Materiel - Strategic Coordination, Development and Control)
Priority Element: Implementing the Policy on Internal Control will allow Defence to ensure an effective risk-based system of Internal Control over Financial Reporting (ICFR) is in place.
- Plan: Continue to strengthen the core Control Framework in support of the Treasury Board Policy on Internal Control (See: 6.5 Financial Management)
Priority Element: Defence must be able to demonstrate compliance with Government regulations and Treasury Board mandatory reporting requirements pertaining to procurement, management and control of inventories.
- Plan: Continue to strengthen the effective stewardship and management of inventory and materiel resources while implementing the Defence Renewal maintenance and materiel strategic initiatives (See: 4.2.2 Materiel – Acquisition, 4.2.5 Materiel - Engineering, Test, Production and Maintenance, 4.2.6 Materiel - Inventory Management and Distribution, 6.10 Acquisition)

Risk Analysis

Defence is influenced by a wide range of external and internal factors, both domestic and international, that have an impact on how it carries out its mandate. These factors present both risks and opportunities, which are taken into account as Defence delivers on its roles and responsibilities. By continuously monitoring emerging issues, developments and trends, Defence can anticipate and respond to challenges and the risks associated with them.

For fiscal year 2015-16, seven key Corporate Risks having a Defence-wide impact are highlighted. The composition of the corporate risks differs from previous years as changes to our environment and effective Defence risk responses drove a reassessment of the corporate risk profile. New risks are identified in the tables below. To fulfill the Government of Canada's expectations, Defence will manage these Corporate Risks in an effective manner.

For details, see the links to the PAA or to the organizational priorities related to these risks in the tables below. Only the applicable PAA links for the initiatives covered within this report are shown. There are other existing controls in place responding to these risks.

Key Risks

Risk	Risk Response Strategy	Link to PAA
Defence Readiness There is a risk that a major unexpected event may require Defence to reallocate resources at short notice, which may dramatically affect ongoing mission(s), and jeopardize the Government’s international security related commitments.	Defence will advance the following plans of organizational priorities: Assess and monitor CAF Force Posture and Defence Readiness in regard to the domestic and international situation: Ensure resources are aligned and available to support determined readiness levels; Establish a Director General Strategic Support in order to improve support planning at the strategic level; Develop mechanisms to synchronize sustainment readiness across the CAF; Continue to evolve the joint training domain by developing a Joint Readiness Roadmap and Joint Operational Managed Readiness Program based upon the CFDS roles and missions and the Force Posture and Readiness directive; and Research and develop improvements to force development, generation, readiness and employment in support of named CAF operations.	3.0, 3.1.1 3.1.2 3.1.3 3.1.5 3.4.5 5.1.3
	Continue to strengthen the effective stewardship and management of inventory and materiel resources while implementing the Defence Renewal maintenance and materiel strategic initiatives: Optimize weapon system performance and value for money by leveraging the capabilities of the CAF, DND and industry.	4.2.5
	Implement the Defence Renewal strategic initiatives contributing to CAF posture and Defence readiness: Strengthen the link between Force Posture and Readiness and resource expenditure; and Support mission readiness through improvements in the effectiveness and efficiency of maintenance execution within the environmental services.	5.2.2
	*Undertake Canada First* Defence Strategy Renewal:** Provide an updated defence strategy for National Defence to meet the challenges of the future; Ensure Canada First Defence Strategy (CFDS) Renewal objectives are implemented; Ensure CFDS Renewal capability objectives are achieved; Ensure CFDS Renewal is delivered within the program scope and affordability; and Ensure Defence has the capabilities necessary to meet government expectations in the future.	5.1.1 6.1

Risk	Risk Response Strategy	Link to PAA
Defence Team Capacity There is a risk that Defence will not have the right number of personnel with the right competency, at the right place, and at the right time, which may affect its capability to fulfill current or future Government of Canada and Defence expectations.	Defence will advance the following plans of organizational priorities: Implement the Defence Renewal strategic initiatives contributing to strengthening the Defence Team: Improve effectiveness and efficiency of training; Provide more sustainable individual training and education (IT&E) program that will reduce redundancies and stovepipes that exist in the current system, with a view of creating efficiencies and enhancing effectiveness; Examine procedures, policies, and practices, potentially leading to a transformation of traditional career management. As a first step, Defence will reprioritize cost moves to improve effectiveness and efficiency; Transform and integrate Military Personnel Management: realize process efficiencies allowing reallocation of effort; improve data quality and operational readiness; decommission redundant systems; eliminate policy and process barriers; and permit long term cost-avoidance; Improve Canadian Forces Recruiting Group’s ability to attract, process and enrol Canadians from all geographic regions of Canada in order to meet Regular and Reserve Force targets; and Continue to modernize civilian human resources management, advice and services in order to improve cost-effectiveness.	3.4.3 4.1 4.1.1 4.1.3 4.1.5 6.4
	Provide enhanced support to the ill and the injured and to the families of CAF members: Commence work on the Surgeon General’s Population Health Strategy; Increase and enhance mental health clinical capabilities at bases across the country to a sustainment level to improve health outcomes of CAF members and enhance family support services; Improve the efficiency of the CAF mental health system; and Modernize Military Family Services programs and processes that honour, acknowledge and support families’ contributions to the CAF.	4.1.7 4.1.8
	Advance a comprehensive plan or initiatives to align and optimize the military and civilian workforce: Validate the force structure required for Primary Reserve to force generate for operational tasks so as to optimize Reserve Force resources; Institute a Multi-Year Establishment Plan to validate and prioritize Regular and Reserve Force personnel requirements based on current and future known manning pressures associated with joint and common defence requirements and the force development of new or emerging capabilities; Identify the right size and composition of the Regular Force Trained Effective Establishment through the CAF Establishment Study; and Implement a workforce capability plan to align current and future workforce requirements, furthering the goal of balancing CFDS requirements.	4.1.2 4.1.10 5.1.1 6.4
	Maximize military and civilian potential by continuing to strengthen leadership capacity through succession planning, continuous learning and professional development: Implement the new CAF appraisal system to provide a holistic capability that supports the delivery of career management modernization via integration; Develop a sustainable personnel management system for a rationalized, single conflict management process that enables issues to be addressed more effectively and meets the needs of force employers, force generators, CAF personnel and their families; Ensure the Performance Management process is leveraged to maximize employee potential to meet both current and future needs of the Defence Team; and Update the organizational learning strategy to support the learning and training requirements of the Defence Team.	4.1.10 6.4

Risk	Risk Response Strategy	Link to PAA
Strategic Resilience New Key Risk. There is a risk that unexpected events may change the strategic picture such that it requires significant changes to strategic level of resource planning and result in disruption to National Defence’s business operations.	Defence will advance the following plans of organizational priorities: Provide an integrated and effective IM and IT environment in support of all Defence operations: Provide an efficient, effective, and sustainable portfolio of focused IT investments to best meet business objectives and reduce application footprint and support through reduction and transition to common enterprise platforms; As part of Defence Renewal, develop an enterprise-wide IT Service Management capability to optimize service delivery and enable long-term transformational change; and Under Defence Renewal, deliver an efficient, effective, and sustainable Defence IM/IT Program through rationalized IT expenditure across DND/CAF, featuring optimized procurement of hardware/software, application/database development and maintenance, and professional services.	4.4.1 4.4.3 4.4.4
	Implement the Defence Renewal strategic initiatives contributing to strengthening the Defence Team: Establish mechanisms to integrate information across the institution and promote effective knowledge sharing to provide innovation programs that create impact while driving performance value; and Provide ongoing leadership coaching to managers and leaders with a view to driving two-way communications and problem solving to ensure an active and robust strategic communication campaign, integrate knowledge sharing into all leadership training and exercises and achieve higher employee satisfaction rates.	6.1
	*Undertake Canada First* Defence Strategy Renewal:** Provide an updated defence strategy for National Defence to meet the challenges of the future; Ensure CFDS renewal objectives are implemented; Ensure CFDS renewal capability objectives are achieved; Ensure CFDS renewal is delivered within the program scope and affordability; and Ensure Defence has the capabilities necessary to meet government expectations in the future.	5.1.1 6.1
	Implement the Defence Renewal strategic initiatives contributing to Defence affordability: Reduce cycle time of the project approval process; Enhance the use and rigour of the Defence performance measurement system so as to empower people to develop, evaluate and vet performance metrics; and Under the lean headquarters initiative, determine opportunities for optimization of spans and layers of control to improve institutional agility and find efficiencies in the headquarters structure.	6.1
	Improve the strategic management framework: Ensure that strategic intent, and the goals and priorities that flow from it, are both clearly articulated and commonly interpreted by strategic-level leadership; Renew top-level governance structure and processes to enable more effective and efficient decision making; Continuously review and update the Defence Administrative Orders and Directives to ensure clarity over policy and procedures; and Internally communicate change and translate strategic objectives into individual responsibilities for every member of the Defence Team.	6.1 6.2
	*Improve management of the Investment Plan to balance Canada First* Defence Strategy requirements:** Improve and validate cost estimates in order to make strategic investment decisions based on reliable and affordable investment plan cost estimates; and Implement investment plan work plan and improved governance processes, to provide senior management with a more robust departmental management and control framework to enhance the decision making process.	5.2.1 6.5

Risk	Risk Response Strategy	Link to PAA
Capability Delivery There is a risk that the complexity of development, programme approval and Government of Canada defence procurement processes will prevent Defence from meeting its investment targets in critical physical assets (equipment, physical and information infrastructure and real property) in a timely, sustainable and affordable manner to enable CAF operations.	Defence will advance the following plans of organizational priorities: Provide an integrated and effective IM and IT environment in support of all Defence operations: Implement the IM/IT strategy aligned with departmental priorities.	4.4.4
	Implement the Defence Renewal strategic initiatives contributing to Defence affordability: Provide a rationalized real property portfolio that supports the core Defence mission requirements; Improve real property acquisition delivery to optimize the allocated resources and timeline in order to meet the project statement of requirements; and Reduce cycle time of the project approval process.	4.3.1 4.3.2 6.1
	Improve the strategic management framework: Renew top-level governance structure and processes to enable more effective and efficient decision making; and Internally communicate change and translate strategic objectives into individual responsibilities for every member of the Defence Team.	6.1 6.2
	Support the implementation of the Defence Procurement Strategy and improve Defence procurement: Complete the transition to steady state of the Project Manager Competency Development Initiative to ensure qualified project managers meet identified requirements; Support the implementation of the Defence Procurement Strategy to strengthen Canada's defence and economy, and leverage military procurement in support of the Government's broader economic agenda; Implement enhanced security measures to comply with core elements on the management and security of controlled goods; Strengthen the management of intellectual property assets to improve acquisition, management and disposal of materiel; and Continue the Policy Portfolio Management Project to advance the alignment of materiel acquisition and support with business functions and the Defence Procurement Strategy.	4.2.2 4.2.6 4.2.7

Risk	Risk Response Strategy	Link to PAA
Financial Controls and Reporting of Inventory and Assets New Key Risk. There is a risk that the financial reporting of inventory and capital assets in the Public Accounts of Canada and the Departmental Financial Statements may not accurately reflect the true value of the department’s asset holdings which may result in a loss of confidence in the department’s ability to manage the public purse.	Defence will advance the following plans of organizational priorities: *Continue to strengthen the core Control Framework in support of the Treasury Board Policy on Internal Control:* Building on the continuing implementation of the Treasury Board Policy on Internal Control, Defence will develop a properly maintained, monitored and reviewed effective risk-based system of internal control over financial reporting; Produce high quality life cycle cost, risk and sensitivity information that contributes to improved accountability and transparency, leading to more informed decision making; and Provide the joint delegation of Canada to NATO with policy coherence and enable effective representation of Canada’s financial/resource interest.	6.5
Continue to strengthen the effective stewardship and management of inventory and materiel resources while implementing the Defence Renewal maintenance and materiel strategic initiatives: Complete the inventory of first and second line ammunition stock within the Royal Canadian Navy, the Canadian Army and the Royal Canadian Air Force weapons and serial number items; Advance the National Stocktaking Project to enable the stocktaking and verification of selected inventory and the pricing/valuation verification on selected samples; Advance the Inventory Management Modernization and Rationalization Project, by rationalizing dormant and legacy stocks. Rationalize the materiel inventory by reducing overbuys over the next four years; Map and align inventory management business process with departmental activities aimed to institutionalize financial modern management practices; and Continue the Automatic Identification Technology Project which will contribute to the modernization of the National Defence Global Supply Chain.	4.2.6

Risk

Risk Response Strategy

Link
to PAA

Financial Controls and Reporting of Inventory and Assets
New Key Risk. There is a risk that the financial reporting of inventory and capital assets in the Public Accounts of Canada and the Departmental Financial Statements may not accurately reflect the true value of the department’s asset holdings which may result in a loss of confidence in the department’s ability to manage the public purse.

Defence will advance the following plans of organizational priorities:

Continue to strengthen the core Control Framework in support of the Treasury Board Policy on Internal Control:

Building on the continuing implementation of the Treasury Board Policy on Internal Control, Defence will develop a properly maintained, monitored and reviewed effective risk-based system of internal control over financial reporting;
Produce high quality life cycle cost, risk and sensitivity information that contributes to improved accountability and transparency, leading to more informed decision making; and
Provide the joint delegation of Canada to NATO with policy coherence and enable effective representation of Canada’s financial/resource interest.

6.5

Continue to strengthen the effective stewardship and management of inventory and materiel resources while implementing the Defence Renewal maintenance and materiel strategic initiatives:

Complete the inventory of first and second line ammunition stock within the Royal Canadian Navy, the Canadian Army and the Royal Canadian Air Force weapons and serial number items;
Advance the National Stocktaking Project to enable the stocktaking and verification of selected inventory and the pricing/valuation verification on selected samples;
Advance the Inventory Management Modernization and Rationalization Project, by rationalizing dormant and legacy stocks. Rationalize the materiel inventory by reducing overbuys over the next four years;
Map and align inventory management business process with departmental activities aimed to institutionalize financial modern management practices; and
Continue the Automatic Identification Technology Project which will contribute to the modernization of the National Defence Global Supply Chain.

4.2.6

Risk	Risk Response Strategy	Link to PAA
Security There is a risk that some elements of the Defence security program may not assure the protection of all assets and the continuity of critical services in support of Defence readiness, capacity, and operational capability.	Defence will advance the following plans of organizational priorities: Develop and implement initiatives to integrate security management into departmental operations: Increase the resources attributed to personnel security to enable faster analysis and processing of security clearance files; Establish an updated Security Assessment and Authorization Risk Register for all departmental IT assets to improve IM/IT security; Enhance IT security of DND/CAF networks to ensure the confidentiality, integrity, accessibility and availability of information, systems and supporting networks; Implement the Defence Command and Control Allied Interoperability project to maintain interoperability at the departmental, national and international levels; Execute the master implementation plan to support the DM and CDS security accountabilities; and Establish a mandatory Security Awareness Program to promote greater and broader baseline security awareness resulting in a decrease in security-related incidents.	4.1.9 4.4.1 4.4.3 6.0
Provide an integrated and effective IM and IT environment in support of all Defence operations: Review and update IM/IT security policies to ensure they are current, relevant, and consistent with Government of Canada directives.	4.4.4

Risk

Risk Response Strategy

Link
to PAA

Security
There is a risk that some elements of the Defence security program may not assure the protection of all assets and the continuity of critical services in support of Defence readiness, capacity, and operational capability.

Defence will advance the following plans of organizational priorities:

Develop and implement initiatives to integrate security management into departmental operations:

Increase the resources attributed to personnel security to enable faster analysis and processing of security clearance files;
Establish an updated Security Assessment and Authorization Risk Register for all departmental IT assets to improve IM/IT security;
Enhance IT security of DND/CAF networks to ensure the confidentiality, integrity, accessibility and availability of information, systems and supporting networks;
Implement the Defence Command and Control Allied Interoperability project to maintain interoperability at the departmental, national and international levels;
Execute the master implementation plan to support the DM and CDS security accountabilities; and
Establish a mandatory Security Awareness Program to promote greater and broader baseline security awareness resulting in a decrease in security-related incidents.

4.1.9
4.4.1
4.4.3
6.0

Provide an integrated and effective IM and IT environment in support of all Defence operations:

Review and update IM/IT security policies to ensure they are current, relevant, and consistent with Government of Canada directives.

4.4.4

Risk	Risk Response Strategy	Link to PAA
Integrated IM/IT (Opportunity) There is an opportunity for Defence to take advantage of emerging technology to further an integrated IM/IT infrastructure that can provide a flexible and agile information environment conducive to efficient interoperable joint CAF operations and executive Defence decision making, while achieving value for money and demonstrating sound stewardship.	Defence will advance the following plans of organizational priorities: Provide an integrated and effective IM and IT environment in support of all Defence operations: Establish more effective application portfolio management focused on IT investments that best meet Defence’s business objectives. Develop, as part of Defence Renewal, an enterprise-wide IT Service Management capability that consists of Regional Service Management Centers to optimize service delivery and enable long-term transformational change. Continue to evolve and leverage the Defence Resource Management Information System’s IM/IT enterprise capabilities so as to maximize return on investment; Improve IM/IT program management and governance to ensure the mission, vision and business expectations are met and risks are mitigated; Implement the IM/IT Strategy aligned to Defence priorities; Under Defence Renewal, provide an efficient, effective and sustainable IM/IT program through the rationalization of the departmental IT expenditures; and Review and update IM/IT security policies to ensure they are current, relevant, and consistent with Government of Canada directives.	4.4.1 4.4.3 4.4.4
Develop and implement initiatives to integrate security management into departmental operations: Ensure DND/CAF is interoperable at the departmental, national and international levels.	4.4.3

Risk

Risk Response Strategy

Link
to PAA

Integrated IM/IT (Opportunity)
There is an opportunity for Defence to take advantage of emerging technology to further an integrated IM/IT infrastructure that can provide a flexible and agile information environment conducive to efficient interoperable joint CAF operations and executive Defence decision making, while achieving value for money and demonstrating sound stewardship.

Defence will advance the following plans of organizational priorities:

Provide an integrated and effective IM and IT environment in support of all Defence operations:

Establish more effective application portfolio management focused on IT investments that best meet Defence’s business objectives.
Develop, as part of Defence Renewal, an enterprise-wide IT Service Management capability that consists of Regional Service Management Centers to optimize service delivery and enable long-term transformational change.
Continue to evolve and leverage the Defence Resource Management Information System’s IM/IT enterprise capabilities so as to maximize return on investment;
Improve IM/IT program management and governance to ensure the mission, vision and business expectations are met and risks are mitigated;
Implement the IM/IT Strategy aligned to Defence priorities;
Under Defence Renewal, provide an efficient, effective and sustainable IM/IT program through the rationalization of the departmental IT expenditures; and
Review and update IM/IT security policies to ensure they are current, relevant, and consistent with Government of Canada directives.

4.4.1
4.4.3
4.4.4

Develop and implement initiatives to integrate security management into departmental operations:

Ensure DND/CAF is interoperable at the departmental, national and international levels.

4.4.3

PLANNED EXPENDITURES

Budgetary Financial Resources (dollars)

2015-16 Main Estimates	2015-16 Planned Spending	2016-17 Planned Spending	2017-18 Planned Spending
18,942,053,629	18,942,053,629	19,228,670,882	18,715,858,466

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

Human Resources (Full-time equivalents - FTEs)

The Canadian Armed Forces (CAF) is currently below its desired end-state for total Regular Force manning of 68,000 +/- 500, due to higher than forecasted attrition and other factors. Measures will continue to be applied to increase production and limit voluntary attrition in order to re-establish the CAF to its authorized strength as soon as practical.

The Department is in a period of profound change. Consequently, it is expected the civilian FTE count will ebb and flow and the approved 24,418 civilian FTE ceiling may not be attained in the near term.

The following table summarizes Defence’s total planned human resources FTEs ¹⁵ for the next three fiscal years, 2015-18.

	2015-16	2016-17	2017-18
Military - Regular Force	68,000	68,000	68,000
Civilian *	24,418	24,418	24,418
TOTAL	92,418	92,418	92,418

Sources: Vice-Chief of the Defence Staff Group / Chief Military Personnel Group / Assistant Deputy Minister (Human Resources - Civilian) Group
* One FTE does not necessarily equal one employee (i.e. Two part-time employees may count as one FTE). See Appendix: Definitions.

Human Resources - Reserve Force Personnel

The CAF is currently below the Government of Canada directed target of 27,000 average paid strength for Primary Reserve, due to higher than forecasted attrition and challenges in meeting recruiting quotas. Measures will be taken to improve success in recruiting and reduce voluntary attrition where possible. In addition, a major review of Primary Reserve requirements will continue so as to ensure the allocation and employment of Primary Reserve personnel is consistent with Defence priorities, is sustainable and remains within Government of Canada direction. The remaining two active sub-components of the Reserve Force – the Canadian Rangers and the Cadet Organizations Administration and Training Service – will be maintained at the current approved total strength targets of 5,000 and 8,000 respectively.

The following table provides Defence’s total planned human resources for Reserve Force Personnel ¹⁶ for the next three fiscal years, 2015-18.

	2015-16	2016-17	2017-18
Primary Reserve - Average Paid Strength	27,000	27,000	27,000
Cadet Organizations Administration and Training Service - Total Strength	8,000	8,000	8,000
Canadian Rangers - Total Strength	5,000	5,000	5,000

Source: Vice-Chief of the Defence Staff Group

Budgetary Planning Summary for Strategic Outcomes and Programs (dollars)

Strategic Outcomes, Programs and Internal Services	2012-13 Expenditures	2013-14 Expenditures	2014-15 Forecast Spending	2015-16 Main Estimates	2015-16 Planned Spending	2016-17 Planned Spending	2017-18 Planned Spending
Strategic Outcome – Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values
Program 1.0 Defence Combat and Support Operations	1,542,935,869	1,488,574,710	1,526,597,829	1,294,500,580	1,294,500,580	1,318,814,331	1,341,768,128
Program 2.0 Defence Services and Contributions to Government	438,761,017	520,303,388	412,095,485	382,286,293	382,286,293	389,063,763	395,704,958
Subtotal	1,981,696,886	2,008,878,098	1,938,693,314	1,676,786,873	1,676,786,873	1,707,878,094	1,737,473,086
Strategic Outcome – Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values
Program 3.0 Defence Ready Force Element Production	3,443,414,107	3,340,624,380	3,151,577,766	3,102,147,905	3,102,147,905	3,136,189,956	3,096,539,994
Program 4.0 Defence Capability Element Production	13,594,506,574	12,464,777,545	13,167,629,291	13,336,464,765	13,336,464,765	13,537,771,679	13,016,837,684
Program 5.0 Defence Capability Development and Research	452,080,281	437,853,050	374,909,905	373,537,801	373,537,801	382,101,670	388,627,701
Subtotal	17,490,000,962	16,243,254,975	16,694,116,961	16,812,150,471	16,812,150,471	17,056,063,305	16,502,005,379
Internal Services	506,492,283	512,241,132	444,247,772	453,116,285	453,116,285	464,729,483	476,380,000
Total¹	19,978,190,131	18,764,374,206	19,077,058,047	18,942,053,629	18,942,053,629	19,228,670,882	18,715,858,466

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group

Notes:

The net decrease of $512.8 million between 2016-17 and 2017-18 planned spending is attributed to the net adjustment on major capital equipment and infrastructure projects.
Due to rounding, figures may not add up to total shown.

ALIGNMENT OF SPENDING WITH THE WHOLE-OF-GOVERNMENT FRAMEWORK

Alignment of 2015-16 Planned Spending with the Whole-of-Government Framework ¹⁷ (dollars)

Departments and agencies are required to indicate in their Report on Plans and Priorities the alignment of Programs to Government of Canada outcome areas. The alignment of strategic outcomes and their corresponding Programs to the whole-of-government framework makes it possible to calculate spending by Government of Canada outcome area and correctly total all government spending. For a description of each of the outcome areas, see the Treasury Board of Canada Secretariat website ¹⁸.

Strategic Outcome	Program	Sub-Program	Spending Area	Government of Canada Outcome	2015-16 Planned Spending
Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values	1.0 Defence Combat and Support Operations	1.1 Domestic and Continental Defence Operations	Social Affairs	A safe and secure Canada	245,548,780
		1.2 International Combat Operations	International Affairs	A safe and secure world through international engagement	276,191,127
		1.3 Ongoing Centralized Operations and Operational Enablement	International Affairs	A safe and secure world through international engagement	772,760,673
	2.0 Defence Services and Contributions to Government	2.1 Disaster Relief and Humanitarian Operations	International Affairs	A safe and secure world through international engagement	17,211,347
		2.2 Defence Services for Canadian Safety and Security	Social Affairs	A safe and secure Canada	74,338,007
		2.3 Military Heritage and Outreach	Social Affairs	A vibrant Canadian culture and heritage	290,736,940
Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values	3.0 Defence Ready Force Element Production	3.1 Force Elements Readiness Sustainment	Social Affairs	A safe and secure Canada	857,493,065
		3.2 Force Elements Integration Training	Social Affairs	A safe and secure Canada	488,216,655
		3.3 Force Elements Production	Social Affairs	A safe and secure Canada	1,324,608,968
		3.4 Operational Readiness Production, Coordination and Command and Control	Social Affairs	A safe and secure Canada	431,829,217
	4.0 Defence Capability Element Production	4.1 Military Personnel and Organization Lifecycle	Social Affairs	A safe and secure Canada	3,719,682,096
		4.2 Materiel Lifecycle	Social Affairs	A safe and secure Canada	6,764,814,323
		4.3 Real Property Lifecycle	Social Affairs	A safe and secure Canada	2,092,203,438
		4.4 Information Systems Lifecycle	Social Affairs	A safe and secure Canada	759,764,908
	5.0 Defence Capability Development and Research	5.1 Capability Design, Development and Integration	Social Affairs	A safe and secure Canada	349,845,125
	5.0 Defence Capability Development and Research	5.2 Strategic Direction and Planning Support	Social Affairs	A safe and secure Canada	23,692,677

Total Planned Spending by Spending Area (dollars)

Spending Area	Total Planned Spending
Economic Affairs	N/A
Social Affairs	17,422,774,198
International Affairs	1,066,163,147
Government Affairs	N/A

Departmental Spending Trend

Departmental Spending Trend Graph

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Source: Assistant Deputy Minister (Finance and Corporate Services) Group

Over the period 2012-13 to 2017-18 actual expenditures, forecast spending and planned spending varies from a high of $20.0 billion in 2012-13 to a low of $18.7 billion in 2017-18. This net decrease of $1.3 billion is summarized as follows:

Explanation of Departmental Financial Spending Trend Changes from 2012-13 to 2017-18 (dollars)
Funding related to measures announced by the government in Budget 2012 and Budget 2013 to make government more efficient and return to a balanced budget	(1,278,776,166)
Funding associated with the Canada First Defence Strategy	(930,071,827)
Funding associated with Manuge v. Her Majesty the Queen Class Action Lawsuit	(424,660,000)
Funding in statutory primarily related to lower Employee Benefit Plan forecasts	(337,537,160)
Funding to support Canada's international security operations in Afghanistan	(196,053,000)
Funding related to the establishment of Shared Services Canada and Communications Security Establishment as stand-alone agencies	(64,570,837)
Compensation adjustments to pay and allowances	(22,423,208)
Other miscellaneous departmental requirements	(104,780,729)
Total Decreases	(3,358,872,927)
Annual escalator on Defence spending as announced in Budget 2008 to provide long-term and predictable funding	1,770,554,000
Net adjustments to spending on major capital equipment and infrastructure projects to align financial resources with current project acquisition timelines	255,899,262
Funding authorized to be carried forward between fiscal years	70,088,000
Total Increases	2,096,541,262
Net Change	(1,262,331,665)

ESTIMATES BY VOTE

For information on the Department of National Defence and the Canadian Armed Forces' organizational appropriations, consult the 2015–16 Main Estimates ¹⁹ on the Treasury Board of Canada Secretariat website.

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Date modified:: 2015-04-02

Section I - Organizational Expenditure Overview - RPP 2015-16

We have archived this page and will not be updating it.

We have archived this page and will not be updating it.

MINISTER’S MESSAGE

SECTION I: ORGANIZATIONAL EXPENDITURE OVERVIEW

ORGANIZATIONAL PROFILE

ORGANIZATIONAL CONTEXT

Raison d’être and Responsibilities

Strategic Outcomes and Program Alignment Architecture

Organizational Priorities

Risk Analysis

Key Risks

PLANNED EXPENDITURES

Human Resources (Full-time equivalents - FTEs)

Human Resources - Reserve Force Personnel

Budgetary Planning Summary for Strategic Outcomes and Programs (dollars)

ALIGNMENT OF SPENDING WITH THE WHOLE-OF-GOVERNMENT FRAMEWORK

Departmental Spending Trend

ESTIMATES BY VOTE

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