Status Report on Transformational and Major Crown Projects - RPP 2016-17

• AIRLIFT CAPABILITY PROJECT – STRATEGIC
• AIRLIFT CAPABILITY PROJECT - TACTICAL
• ARCTIC OFFSHORE PATROL SHIP
• CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM
• CANADIAN SEARCH AND RESCUE HELICOPTER PROJECT
• CANADIAN SURFACE COMBATANT PROJECT
• CP-140 - AURORA INCREMENTAL MODERNIZATION PROJECT
• FIXED-WING SEARCH AND RESCUE AIRCRAFT REPLACEMENT PROJECT
• FORCE MOBILITY ENHANCEMENT PROJECT
• FUTURE FIGHTER CAPABILITY
• HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION
• HALIFAX CLASS POINT DEFENCE MISSILE SYSTEM UPGRADE
• INTELLIGENCE, SURVEILLANCE, TARGET ACQUISITION SYSTEM
• JOINT SUPPORT SHIP
• JOINT UNMANNED SURVEILLANCE AND TARGET ACQUISITION SYSTEM
• LIGHT ARMOURED VEHICLE III UPGRADE PROJECT
• LIGHTWEIGHT TOWED HOWITZER
• MARITIME HELICOPTER PROJECT
• MEDIUM SUPPORT VEHICLE SYSTEM PROJECT
• MEDIUM-TO-HEAVY LIFT HELICOPTERS
• MERCURY GLOBAL
• PROTECTED MILITARY SATELLITE COMMUNICATIONS
• SUBMARINE CAPABILITY LIFE EXTENSION
• TACTICAL ARMOURED PATROL VEHICLE
• TANK REPLACEMENT PROJECT
• UNDERWATER WARFARE SUITE UPGRADE

AIRLIFT CAPABILITY PROJECT – STRATEGIC

Description

The objective of the Airlift Capability Project – Strategic (ACP-S) is to acquire new aircraft that will provide the Canadian Armed Forces (CAF) with the global reach necessary to operate effectively over long distances, as well as to deliver personnel and cargo directly into a theatre of operation, including threat environments.

Project outcomes

Deliver C-17 Globemaster III aircraft and the required infrastructure at 8 Wing Trenton. The project contributes towards achieving the roles and missions of the CAF. Once delivered and declared at full operational capability, this project will contribute to the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values. Revised project approval for a fifth aircraft and related spares is providing increased flexibility and availability in the CAF Strategic Airlift fleet.

This capability is being delivered to the Royal Canadian Air Force.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project for the acquisition of C-17 Globemaster III aircraft. IRBs equivalent to 100% of the contracted value are required for both the capital acquisition and Boeing’s share of the integrated in-service support from the US Government.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

On 11 December 2014, Treasury Board approved a project amendment to increase availability and flexibility of the strategic airlift fleet.

Major Milestones

Progress report and explanation of variances

Four aircraft were accepted on schedule and the fleet initially achieved Full Operational Capability in December 2012. A fifth aircraft was acquired and delivered in March 2015. Full Operational Capability conditions were met on 11 September 2015 and Effective Project Closure is anticipated in March 2016.

AIRLIFT CAPABILITY PROJECT - TACTICAL

Description

The objective of the Airlift Capability Project – Tactical (ACP-T) is to ensure a continued tactical airlift capability. This project has replaced the CAF’s aging CC-130E Hercules fleet, and will provide the CAF with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.

Project outcomes

Deliver 17 CC-130J aircraft, the associated In-Service Support and training, and the required infrastructure at 8 Wing Trenton. The project contributes to achieving the roles and missions of the CAF. Once delivered and declared at full operational capability, this project will contribute to the following Program Alignment Architecture (PAA) Strategic Outcomes: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Air Force and will support the Canadian Army.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. Lockheed Martin Corporation has committed to provide IRBs equivalent to 100% of the eligible contract value for both the capital acquisition and the in-service support portions. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

The project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 CC-130J aircraft. The contract was subsequently amended in December 2009 to include provisions for in-service support, in February 2010 for maintenance training systems, and in November 2013 for the Block 7 avionics modification required to satisfy final Project Deliverables. Aircraft deliveries began in May 2010 with all aircraft being delivered as of May 2012. The first CC-130J entered the Block 7.0 modification line in January 2015. Fleet embodiment and conversion of the CC-130J Training System to the Block 7.0 configuration will progress to completion in the 2016-17 Fiscal Year.

Major Milestones

Progress report and explanation of variances

All 17 aircraft have been delivered on time and on budget. With contract provisions for in-service support and maintainer training, and in conjunction with the infrastructure upgrades at the aircraft’s Main Operating Base in Trenton, Ontario, the project is progressively establishing the support systems for this new capability in preparation for the declaration of Full Operational Capability.

ARCTIC OFFSHORE PATROL SHIP

Description

The Arctic/Offshore Patrol Ship (AOPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to demonstrate sovereignty in Canada's waters, including the Arctic. The AOPS project is acquiring ships, In-Service Support elements, jetty infrastructures in Halifax and Esquimalt as well as a berthing and fueling facility at Nanisivik, Nunavut.

Project outcomes

Deliver ships, a 25-year In-Service Support Contract (ISSC) and associated infrastructures in Halifax, Esquimalt and Nanisivik. This project will sustain Maritime Forces capabilities of conducting armed, seaborne surveillance of Canada's waters, including the Arctic. Once declared at full operational capability, it will contribute towards achieving the roles and missions of the CAF and Canada’s Northern Strategy objectives as well as the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Navy.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. IRBs equivalent to 100% of the contracted value for the AOPS Implementation Contracts is required. For the In-Service Support contract, a Defence Procurement Strategy Value Proposition will be a weighted and rated aspect of the evaluation to select the Most Qualified Bidder.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

The project commenced its Implementation Phase in January 2015 and entered into Full Production with the construction of the first ship on 1 September 2015. Jetty infrastructure projects in Esquimalt, Halifax and Nanisivik are progressing as planned.

Major Milestones

Progress report and explanation of variances

AOPS construction is now in full production with the first ship on schedule for delivery in 2018. The Definition Contract was completed in November 2015 under budget. All tasks were executed successfully. The testing of the production processes and procedures performed under Task 6 (Test Production Module) generated lessons that were applied to the production processes for the construction of the first ship.

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM

Description

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

The CCMP omnibus project includes the following sub-projects:

• Secure Voice / Telephone Re-key Infrastructure;
• Secure Voice / Telephone Family;
• Classified Security Management Infrastructure;
• Combat Identification Family (Identification Friend or Foe (IFF));
• Link Encryption Family;
• Network Encryption Family;
• Secure Radio Family;
• Combat Net Radio Enhancement; and
• Secure Mobile Environment.

Project outcomes

Deliver affordable Information Protection by means of cryptographic solutions with an adequate level of security to protect Government of Canada classified electronic information and to provide enhanced interoperability to facilitate the exchange of classified information both nationally and internationally. This requires the right balance between interoperability and sovereignty, while striving to meet unique Canadian requirements. Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values.

Industrial benefits

There are no Industrial and Regional Benefits requirements associated with this project.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Implementation for some sub-projects, definition or completed for others.

Major Milestones

Progress report and explanation of variances

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

The CCMP originated as a 12-year program ending in 2016. In the Treasury Board submission that was approved in November 2012, the end date of the program was extended to 2020. Although the CCMP baseline schedule and cash flow are being updated, extending the end date of the program will not impact the overall cost of the CCMP.

CANADIAN SEARCH AND RESCUE HELICOPTER PROJECT

Description

Maintaining a national search and rescue capability is a key Defence mission. The purpose of the Canadian Search and Rescue Helicopter (CSH) project was to replace the CH-113 Labrador with a fleet of 15 new helicopters. The new helicopters have addressed the operational deficiencies of the CH-113 Labrador fleet and eliminated the supportability difficulties of the older airframes. Given expected aircraft availability rates and a sufficient fleet size, continuous operations are anticipated well into the 21^st century.

Project outcomes

Deliver 15 CSH aircraft at full operational capability to the Royal Canadian Air Force (RCAF) for Search and Rescue services for the population of Canada. This project contributes towards the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy was applied to this project. The contractor has successfully completed its IRB obligations. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievement.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

As of July 2003, all 15 Cormorant helicopters had been delivered. Spare parts and infrastructure were also in place to support operations, and initial training had been completed. Effective Project Completion (EPC) was achieved in September 2004 at which point the Project Management Office was closed; however, some contract deliverables were still outstanding and to be pursued post EPC. Final contract completion is projected to occur in fiscal year 2016-17.

Major Milestones

Progress report and explanation of variances

The project delivered the 15 aircraft and procured the required aircraft spares, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for the four RCAF search and rescue bases. The project also established and funded the first two years of an in-service support contractor for follow-on support.

The Cormorant has been operational at the squadrons in Comox, British Columbia, Gander, Newfoundland, Greenwood, Nova Scotia and Trenton, Ontario. CH-149 operations at 424 Squadron in Trenton have been suspended in 2005 due to the lack of aircraft availability and difficulty in maintaining adequate aircrew training. The fleet size was reduced to 14, following the loss of an aircraft in a 2006 crash.

It should be noted that although EPC was achieved in September 2004, there is some work still ongoing. This work remaining is related to retrofit after design specification that is completed when major maintenance is conducted on the fleet. Full completion is expected in Fall 2016.

CANADIAN SURFACE COMBATANT PROJECT

Description

The Canadian Surface Combatant (CSC) project will recapitalize Canada’s surface combatant fleet through replacement of the capability found in the Iroquois Class destroyers and the Halifax Class frigates, along with the provision of the necessary integrated logistics support and infrastructure. To sustain the ships through their operational life, the CSC project is applying modern supportability and systems engineering principles in order to drive ship design and sustainment decisions. The CSC project will define and award In-Service Support contract(s). The CSC project will pursue system commonality in ship design and acquisition, potentially generating acquisition and through-life cost savings in a number of areas including crewing, training, maintenance and logistics support.

Project outcomes

The CSC project will recapitalize the capability currently found in Canada’s destroyers and frigates – deliver ships, infrastructure, associated support and In-Service Support contract(s). The introduction of CSC will ensure that the Royal Canadian Navy can “continue to monitor and defend Canadian waters and make significant contributions to international naval operations”. The CSC project contributes to achieving the roles and missions of the CAF and to achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Navy.

Industrial benefits

Canada’s Defence Procurement Strategy, announced in February 2014, applies to the competitive sourcing of the combat systems portion of this project. The CSC project is collaborating with Innovation, Science and Economic Development Canada (ISEDC) to define its implementation. ISEDC, with the collaboration of the project, consulted with industry on the implementation of the Strategy in a series of information sessions across Canada during the August-September 2014 timeframe.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

The project is in Definition Phase I. Following the Government’s announcement of the CSC procurement strategy to acquire the ships, key activities for the remainder of the Definition Phase include the selection of a Combat Systems Integrator and a Warship Designer which will work with Irving Shipbuilding Inc., the National Shipbuilding Procurement Strategy designated shipyard and intended Prime contractor, to successfully design, develop, integrate and deliver the combatant ships.

Major Milestones

Progress report and explanation of variances

Following an extensive consultation with industry, Government officials announced in January 2015 that Irving Shipbuilding Inc. will be the Prime contractor for the Canadian Surface Combatant project. Subsequently on 1 May 2015, Government officials announced the procurement process by which the ships will be acquired. Soon after, prequalification of bidders was initiated, and then completed in October 2015.

Definition phase II will start in late 2016 early 2017 and will initially focus on further requirements reconciliation. This activity will be jointly undertaken by project staff, Irving Shipbuilding Inc. and its sub-contractors.

It is estimated the project will be in the Definition phase II leveraging the Definition contract for four years until the Implementation contract is awarded.

CP-140 - AURORA INCREMENTAL MODERNIZATION PROJECT

Description

To deliver 14 modernized and life-extended CP-140 Aurora aircraft to the RCAF through four aircraft installation blocks.

Project outcomes

Block IV will add three new capabilities (Beyond Line of Sight Satcom, Link 16 and self-defence) to ensure the CP-140 Aurora remains operationally relevant until its planned retirement date of 2030.

Industrial benefits

A value proposition was submitted to General Dynamics Mission Systems-Canada based on a requirement to achieve 100% Industrial technical benefits.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Block IV Implementation

Major Milestones

Progress report and explanation of variances

To date, the Aurora Incremental Modernization Project has delivered a modernized navigation and communication capability to the RCAF and has updated the mission computer and sensors on nine of 14 aircraft, of which six have also had a structural life extension. The modernized Aurora aircraft has restored Canada’s airborne maritime surveillance capabilities while providing significant enhancements to its overland surveillance capabilities with its world-class integrated mission systems capabilities as demonstrated during domestic and international surveillance missions. The next block of the modernization has been contracted with General Dynamics Mission Systems-Canada in October 2015 to further enhance the Aurora’s capabilities and to maintain its operational relevance to its eventual retirement in the 2030 timeframe. By the end of 2016, 11 of 14 aircraft will have been modernized; of which 10 will have also had a structural life extension.

FIXED-WING SEARCH AND RESCUE AIRCRAFT REPLACEMENT PROJECT

Description

The purpose of the Fixed Wing Search and Rescue Aircraft Replacement (FWSAR) project is to replace the fixed-wing search and rescue (SAR) capability currently being provided by the CC-115 Buffalo and CC-130H Hercules aircraft.

This replacement will address the operational deficiencies of the CC-115 Buffalo and legacy CC-130H Hercules fixed-wing SAR aircraft while eliminating the supportability and affordability difficulties of the older airframes. The solution will provide the capability to conduct an effective response and immediate assistance to SAR incidents within the Canadian SAR Area of Responsibility.

Project outcomes

Deliver a replacement capability currently performed by the CC-115 Buffalo and CC-130H Hercules aircraft. The project contributes towards achieving the roles and missions of the CAF. Once delivered and declared at full operational capability, this project will contribute to the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Air Force. The primary beneficiary is the Canadian population who require Search and Rescue Services.

Industrial benefits

The FWSAR project is fully compliant with the Defence Procurement Strategy.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Definition

Major Milestones

Progress report and explanation of variances

The FWSAR project received Project Approval from Treasury Board in spring 2015 and released the Request for Proposal on 31 March 2015.

FORCE MOBILITY ENHANCEMENT PROJECT

Description

The Force Mobility Enhancement (FME) project is part of the Family of Land Combat Vehicles (FLCV) projects. FME is a two-phase project.

In Phase One, the project will replace the Leopard 1 Armoured Engineer Vehicle (AEV) BADGER fleet with a modern, heavily protected and mobile platform capable of supporting the newly acquired Leopard 2 Main Battle Tank (MBT) out to the year 2035. In this phase, the project will also acquire Leopard 2 based Armoured Recovery Vehicles (ARV) to support the AEV and MBT. The ARVs will be acquired by exercising contract options from the Tank Replacement Project (TRP).

In Phase Two, the project will acquire Tactical Mobility Implements (TMI) for the Leopard 2 MBT, to include mine rollers, mine ploughs, and dozer blades. The project will also modify the entire Leopard 2 tank fleet to accept TMI.

Project outcomes

Delivery of 18 Leopard 2 AEVs, four Leopard 2 ARVs and TMI, specifically 18 Dozer Blades, 16 Track Width Mine Ploughs and 16 Mine Clearing Roller Systems to be installed onto Leopard 2 MBT as required; 82 Leopard 2 tanks will be fitted for the TMI. The FME project deliverables will provide crucial capabilities for the Leopard 2 and provide required support to other key armoured fleets used by the Canadian Army. Once delivered and declared at full operational capability, this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Canadian Army (CA).

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. IRBs valued at 100% of the contract value are required in Phase One only, with the exception of the government-to-government purchase of the Leopard 2 MBT chassis. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Phase One (AEV), Implementation: The FME project received Treasury Board (TB) Project Approval Implementation for Phase One on 15 March 2012.

Phase Two (TMI): Implementation: The FME project received TB Project Approval Implementation for Phase Two on 21 November 2013.

Major Milestones

Progress report and explanation of variances

The first AEV was delivered in October 2015. AEV #2 and #3 are scheduled for delivery in December 2015. Three of four of the ARVs have been accepted by Canada. Two mine roller systems have been delivered, while dozer blades and mine ploughs are scheduled for delivery in 2016. Modifications to the Leopard 2 tank fleets are currently underway, with 8 vehicles completed.

On 10 December 2013 and 26 August 2014, the contractor informed DND that deliveries of Armoured Engineer Vehicles would be postponed. At the Senior Review Board (SRB) meeting on 7 October 2014, the SRB endorsed a 12-month extension of the project to April 2018.

The 12 month extension for the FME Project will cause schedule, operational, financial and personnel impacts, all of which can be managed internally by the CA and the Materiel Group.

FUTURE FIGHTER CAPABILITY

Description

The objective of the Future Fighter Capability Project is to acquire new fighter aircraft in order to replace the aging CF-18 and maintain Government capability to protect Canadian sovereignty, defend North America, and contribute to the security of our allies, and to allied and coalition operations abroad.

Project outcomes

The Future Fighter Capability Project will deliver a fighter aircraft capable of executing the roles and missions asked by the Government of Canada. Once delivered and full operational capability is declared, this project will contribute to achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Air Force (RCAF).

Industrial benefits

The Defence Procurement Strategy (DPS) applies to this project and DND will collaborate with Innovation, Science and Economic Development Canada (ISEDC) to define its implementation.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Options Analysis

Major Milestones

Progress report and explanation of variances

In April 2012, the Government of Canada announced a comprehensive response to Chapter 2 of the 2012 Spring Report of the Auditor General of Canada that included a Seven-Point Plan to meet and/or exceed the Auditor General’s recommendation for replacing Canada’s CF-18 fighter fleet. A key part of the Seven-Point Plan was an evaluation of options to review and assess all available fighter aircraft. An Independent Review Panel oversaw the evaluation process and participated in key milestones of the work.

PSPC and DND will collaborate to launch an open and transparent competition to replace the CF-18 fighter aircraft, focusing on options that match Canada’s defence needs.

HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION

Description

The HALIFAX Class Modernization/Frigate Life Extension (HCM/FELEX) project is the principal component of the overall HALIFAX Class Modernization (HCM) program. The project will plan and manage 12 HALIFAX ship's mid-life refits, acquire the major elements of a new combat system, deliver stability enhancements, and magnetic signature improvements. A Commander Task Group capability will also be added in four of the 12 ships. Major equipment acquisitions through HCM/FELEX will include a modernized Command and Control System, Tactical Data Link Improvements, Identification Friend or Foe upgrades for Mode S/5, new radars, a new Electronic Support Measures System, upgrades to the Internal Communications system, and an upgraded Harpoon Weapon System. These acquisitions will satisfy the capability deficiency introduced by the need to contribute in the new littoral operations role of the HALIFAX Class. The mid-life refit period will also provide an opportunity for the insertion of existing equipment sustainment measures to ensure equipment viability through to end of life for the class.

Project outcomes

Deliver 12 modernized HALIFAX-Class ships capable to execute the roles and core missions of the mandate of National Defence. Once delivered to the Royal Canadian Navy, the modernized HALIFAX Class ships will be the main contribution towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. IRBs equivalent to 100% of the contract values are required. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

The implementation of the HCM/FELEX project will occur through three principal contracts: Two Multi-Ship Contracts (MSC) for docking work periods/refits and one Combat System Integration contract to develop, procure and install the key combat system elements of the project. Project completion is expected by January 2019.

Major Milestones

Progress report and explanation of variances

As of June 2015, the HCM/FELEX project is nearing the end of a successful Implementation. Ten of 12 ships have completed their contracted refits and the remaining two are in shipyards undergoing their modernizations. The project recently accepted the modernized design after an extensive testing program and achieved its initial operational capability milestone. The modernized ships are now being employed successfully by the Navy for Government of Canada priorities such as OP REASSURANCE.

The project is currently within budget, on schedule, and on track to achieve Final Operational Capability in January 2018.

HALIFAX CLASS POINT DEFENCE MISSILE SYSTEM UPGRADE

Description

The Point Defence Missile System Upgrade (PDMSU) will upgrade the current Evolved Seasparrow Missile (ESSM) Point Defence Missile System to sustain the Royal Canadian Navy’s Halifax Class ship’s ability to defend against current and future threats originating from surface, sub-surface, air and land-based platforms. This project fits within the mandate of National Defence by investing in the development of the modernized Halifax Class Point Defence Missile System to counter the rapidly evolving threats identified in the Threat Definition Update document. This project is linked to the Force Capability Guidance that directs a sustainment of the Royal Canadian Navy's Anti-Air Warfare capability by providing the CAF with a viable option to continue to support the Government's foreign policy and national security objectives by remaining a strong and reliable partner in the defence of North America that is equally capable of making meaningful contributions to international security.

Project outcomes

The Project outcomes are the development, acquisition, integration, installation and support of an upgraded Point Defence Missile System for the Halifax Class ship to execute the roles and core missions of the mandate of National Defence. Once delivered to the Royal Canadian Navy, the upgraded Point Defence Missile System will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

Industrial benefits

The work, performed under the ESSM Block 2 Engineering and Manufacturing Development Memorandum of Understanding (MOU), consists of Government work and industrial work. While the Government of Canada work will be performed primarily by the U.S. Government, the industrial work will be shared among the Contributing Participants in accordance with their cost share percentages, which currently stands at 15% for Canada for the Definition Phase. Work share for Implementation Phase will be governed by the MOU for the Production of the ESSM Block 2 and will also include provisions for the work share, based on percentage of total missile acquired.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Definition: This phase is supporting Canada’s participation in the NATO Seasparrow Engineering and Manufacturing Development of the ESSM Block 2, performed through a MOU. International endorsement of MOU allowed the NATO Seasparrow Surface Missile System Project to award the contract for the development of ESSM Block 2 to Raytheon Missile Systems Company.

Major Milestones

Progress report and explanation of variances

Project Approval and Definition Expenditure Authority were granted to the Point Defence Missile System Upgrade project on 6 November 2014.

The Project Approval enabled Canada to sign the ESSM Block 2 Engineering and Manufacturing Development Memorandum of Understanding on 12 November 2015. The initial ESSM Block 2 Engineering and Manufacturing Development MOU Payment could not be made on 4 March 2015.

The project is currently within budget. The Project Implementation Submission is expected to be presented to the Treasury Board in early 2017.

INTELLIGENCE, SURVEILLANCE, TARGET ACQUISITION SYSTEM

Description

Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) is an omnibus project that received Treasury Board approval for Definition Phase activity in April 2003. The purpose of this project is to develop, deliver and evolve an integrated, interoperable ISTAR capability that will improve the ability of commanders to visualize the operational area, manage sensors and information collection resources, and to plan and implement actions to successfully complete operational missions. The project will provide enhancements to existing capabilities and include the acquisition of new capabilities in the areas of communications, command and control and sensors.

Project outcomes

To deliver an integrated intelligence capability with the surveillance, target acquisition, and reconnaissance assets to improve Commanders’ Situational Awareness at all level of commands. Once all sub-projects are delivered and declared at full operational capability, ISTAR project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values.

This capability is being delivered to the Canadian Army.

Industrial benefits

The ISTAR project was the first project to implement the new Defence Procurement Strategy through the introduction of a rated Value Proposition and of Industrial and Technological Benefits for its Medium Range Radar sub-project Request for Proposal.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Implementation is ongoing. Three sub-projects have been successfully completed and closed; two have achieved full operational capability and are in the closing process. Five sub-projects remain to be completed.

Major Milestones

Progress report and explanation of variances

The ISTAR project is progressing well with and has only the following three capabilities to deliver before project closure, current estimated for September 2018:

• Medium Range Radar. Contract awarded in Summer 2015 for initial delivery in June 2017 (1^st radar)
• Small UAV system. FMS case under development with the US Navy for an expected delivery in spring 2017.
• Man-portable Surveillance and Target Acquisition Radar (MSTAR) and Remote Viewing Terminal will start delivery in early FY 2016-17.

JOINT SUPPORT SHIP

Description

The Joint Support Ship (JSS) project will recapitalize Canada's naval support vessels, modernizing and apportioning joint force capabilities in line with the strategic vision of the CAF. The JSS project will provide Canada with a modern, task-tailored and globally deployable naval support capability. The JSS project will acquire two new support ships (with an option for a third vessel if it is affordable or if additional internal funding becomes available). In addition to being able to provide at-sea support to deployed naval task groups, they will also be capable of providing limited sealift and support to operations ashore.

Project outcomes

The project will deliver two Joint Support Ships. This project contributes to achieving the roles and missions of the CAF and the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Navy.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. IRBs equal to 100% of the contract values for the capital acquisition and in-service support will be required. For the in-service support contract, a Defence Procurement Strategy Value Proposition will be a weighted and rated aspect of the evaluation to select the Most Qualified Bidder.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Definition

Major Milestones

Progress report and explanation of variances

The JSS design selection process was completed in May 2013, and the selection of the Military-off-the-Shelf (Berlin Class) design was announced on 2 June 2013.

The permanent design license for the Military-off-the-Shelf design was procured in September 2014 and the Initial Design Review work started on 23 September 2014. The IDR contract consists of three tasks and will allow VSY to review the design information and develop the detailed plans and cost data for the follow-on JSS Design and Production Engineering (D&PE) work. The D&PE Contract is expected to complete in Fall 2017 followed by the award of the Implementation Contract to VSY for the build.

JOINT UNMANNED SURVEILLANCE AND TARGET ACQUISITION SYSTEM

Description

This project will deliver a mature Long Endurance Unmanned Aircraft System to provide mandatory capabilities for domestic and international operations. The Joint Unmanned Surveillance and Target Acquisition System (JUSTAS) will complement existing reconnaissance, surveillance, and target acquisition capabilities, increase maritime and Arctic domain awareness and provide precision force application in support of deployed Land and Special Operations Forces.

Project outcomes

Deliver a mature Long Endurance Unmanned Aircraft System capability that meets the objectives of the CAF for a robust domestic and international surveillance capability. JUSTAS delivery contributes to the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Air Force, and will support the Canadian Army and the Royal Canadian Navy.

Industrial benefits

As per Canada’s Defence Procurement Strategy, it is expected that the Industrial Technological Benefits and Value Proposition will apply to this acquisition. Details will be confirmed during the Option Analysis and Definition phases.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Option Analysis

Major Milestones

Progress report and explanation of variances

JUSTAS is in Options Analysis and expects to release a Request for Information in early 2016.

LIGHT ARMOURED VEHICLE III UPGRADE PROJECT

Description

The recent experience of the CAF and other nations in Afghanistan, Iraq and global operational theatres highlighted the ongoing requirement for a highly protected, yet highly mobile Light Armoured Vehicle (LAV). The threats of mines and Improvised Explosive Devices (IEDs) have proliferated and are likely to be faced in most medium to high threat missions. Despite improvements to the protection of the vehicle, the current LAV III fleet has insufficient protection to defeat modern threats. Further, it has insufficient mobility given the increased protection and payload requirement of the vehicle. As well, the target acquisition and fire control systems require upgrading to overcome obsolescence issues and to improve technical effectiveness and lethality. The LAV III Upgrade Project will capitalize on existing and evolving technology to upgrade a significant portion of the LAV III fleet to a standard required to protect the soldiers and equipment of the CAF in current and future operations.

Project outcomes

To deliver 550 LAV III vehicles upgraded in the areas of mobility, protection and lethality capable of executing the roles and core missions of the CAF. Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Canadian Army.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. General Dynamics Land Systems-Canada is committed to provide IRBs valued at 100% of the contract value. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Implementation: The project finalized the system design and the first deliveries occurred at the end of 2012.

Major Milestones

Progress report and explanation of variances

Approximately 336 legacy LAV III have been inducted into production. 304 vehicles have been produced and 218 have been fielded to operational units. Initial Operational Capability occurred in June 2014.

LIGHTWEIGHT TOWED HOWITZER

Description

The Lightweight Towed Howitzer (LWTH) project addresses a Canadian Army (CA) indirect fire key capability deficiency and also provides required capability enhancements in terms of the lethality, range, precision, mobility and digitization needed to support the missions and tasks likely to be assigned to the CAF. Specifically, the project is required to field 25 M777 lightweight 155mm towed howitzers to the CA, each with a Gun Management System (GMS), to augment the 12 M777 howitzers already in service. The project will also field improved ammunition, Gun Line Communication System (GLCS), an Ammunition Storage and Handling System (ASHS) and wheeled gun tractors, based upon the Medium Support Vehicle System (MSVS) Standard Military Pattern (SMP) vehicle, as delivered by the ongoing MSVS project.

Project outcomes

Deliver the following capabilities:

• 25 M777 155mm Lightweight Towed Howitzers, each equipped with a GMS, a Gun Line Communication System (digital radio/Enhanced Position Location Reporting System (EPLRS), a Land Ethernet Switch (LES), a Power Distribution Unit (PDU), and an antenna);
• 37 wheeled gun tractors (based upon the MSVS SMP) that will pull the howitzer and be equipped with an Ammunition Storage and Handling System (ASHS);
• Ammunition (including propellant, projectiles and fuses);
• Integrated Logistics Support; and
• Infrastructure enhancements.

Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Canadian Army.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. The LWTH project has IRB agreements with BAE Systems on the M777 Lightweight Towed Howitzer Foreign Military Sales Acquisition case and with SELEX on the GMS acquisition contract. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Implementation

Major Milestones

Progress report and explanation of variances

The LWTH project is achieving defined project objectives. Deliveries of the M777 howitzers were completed in the summer of 2011 and IOC was achieved in October 2012. The project has also delivered ammunition components such as propellant, projectiles and fuses. It has also put in place a robust integrated logistic support within the user’s community as well as with the Original Equipment Manufacturer and our allies.

The infrastructure component of the project is progressing very well with minor construction work to be completed by the end of Fiscal Year (FY) 2015-16.

The only remaining deliverables of the project are the Medium Support Vehicle System gun tractor variant and a portion of the ammunition requirements.The delivery of the improved ammunitions (Precision Guided Kit - Course Correcting Fuze) as well as its integration to the Canadian M777 systems is the last ammunition component to be delivered by the project.

MARITIME HELICOPTER PROJECT

Description

The purpose of the Maritime Helicopter Project (MHP) is to replace the CH-124 Sea King with a fleet of 28 new fully equipped Maritime Helicopters bundled with a long-term in-service support contract and the modification of the HALIFAX class ships to accommodate the new Maritime Helicopters. This replacement will address the operational deficiencies of the current CH-124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multi-purpose shipborne Maritime Helicopters for operations well into the 21^st century.

Project outcomes

Deliver 28 fully equipped Maritime Helicopters to support operations and deploy with the Halifax Class Frigates capable of executing the roles and core missions of the CAF. Once delivered and declared at full operational capability, it will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Air Force and will support the Royal Canadian Navy.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. Sikorsky has committed to IRBs equivalent to 107% of the contract value for the capital acquisition and 80% of the maximum contract value for the in-service support. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Implementation

Major Milestones

Progress report and explanation of variances

In June 2014, Public Services and Procurement Canada and the Department of National Defence received a revised Effective Project Approval from Treasury Board. Based on this approval, the Government of Canada and Sikorsky International Operations Incorporated signed a contract amendment on 18 June, 2014. This amendment extended the In-Service Support Agreement out to 2038 and re-baselined the project schedule. This new schedule allows for eight initial capability Block 1 Aircraft to be delivered starting in June 2015.

Other components of the project such as construction of the Training Centre building in Shearwater, Nova Scotia, and ship modification work on the 12 Halifax Class Frigates have progressed well. In January 2015, the Government of Canada and Sikorsky International Operations Incorporated began Initial Cadre Training in Shearwater, which is still on going.

To date, 27 helicopters have completed their initial build, and the 28^th is on the production line. Six Cyclones were formally accepted in the Block 1.0 configuration in June 2015, and one Capability Release 1.1 Cyclone was accepted in November 2015 with a second Capability Release 1.1 Cyclone accepted in December 2015.

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT

Description

The Medium Support Vehicle System (MSVS) project scope consists of four separate procurement activities:

• Phase 1 - Militarized Commercial-Off-The-Shelf (MilCOTS) Trucks;
• Phase 2 - Baseline Shelters;
• Phase 3 - Modification of the Shelters (also referred to as “Shelter Kitting”); and
• Phase 4 - Standard Military Pattern (SMP) Trucks in five variants: a Cargo variant, a Cargo with Material Handling Crane variant, a Load Handling System variant, a Cargo Mobile Repair Truck variant and a Gun Tractor Variant. The requirement also includes Trailers, Armour Protection Systems, and In-Service-Support.

The project scope also includes an infrastructure component.

Project outcomes

Deliver a replacement fleet of medium-weight trucks capable of executing the roles and core missions of the CAF. At the conclusion of the project, the Canadian Army will have acquired two fleets of medium-weight vehicles (MilCOTS and SMP) as well as new kitted baseline shelters. Once delivered and declared at full operational capability, the project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to the MilCOTS, Baseline Shelter and SMP contracts. IRBs equal to 100% of the contract values are required. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements. The IRB Policy does not apply to the Phase 3 Kitting contract.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Implementation

Major Milestones

Progress report and explanation of variances

• Phase 1 - The MilCOTS vehicles are in-service.
• Phase 2 - The last delivery of the Baseline Shelters was completed in February 2015.
• Phase 3 - The design and production of the Kits are ongoing.
• Phase 4 - SMP Trucks - Project Approval (Implementation) was achieved and the contract was awarded.

MEDIUM-TO-HEAVY LIFT HELICOPTERS

Description

The Medium-to-Heavy Lift Helicopters (MHLH) project will establish a new transport helicopter capability to support land-based domestic and international operations. The project will deliver 15 Chinook CH-147F helicopters and the associated infrastructure and support elements to create a new helicopter unit based in Petawawa, Ontario. One of the logistics support elements is aircrew training which will be provided through the Operational Training Systems Provider initiative.

Project outcomes

Deliver 15 Chinook CH-147F helicopters and associated support elements capable of executing the roles and core missions of the CAF. Once delivered and declared at full operational capability, this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Air Force and will support the Canadian Army.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. IRBs equivalent to 100% of the contracted value are required for both the capital acquisition and integrated in-service support. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

The MHLH Project entered the implementation phase in June 2009

Major Milestones

Progress report and explanation of variances

All 15 aircraft have been delivered on time with the final aircraft being delivered in June 2014. Initial Operational Capability was declared in February 2015. The project continues to progressively establish the support systems and aircraft capabilities to enable the declaration of Full Operational Capability in 2017. Project close out is planned for 2018.

MERCURY GLOBAL

Description

The Mercury Global (MG) project will deliver the access and infrastructure to tap into the United States Wideband Global System (WGS). The project will provide Military Satellite Communications for near-worldwide assured, wideband communications to the CAF for the command and control of deployed Canadian commanders and forces, as well as interoperability with some of our principal allies, the United States, Australia, Denmark, the Netherlands, Luxembourg, Belgium and New Zealand.

Project outcomes

Deliver a near-worldwide, assured, wideband global Military Satellite Communications System. When operational, this system will ensure, in part, that the CAF will be well-equipped with modern strategic satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability, the project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to the first 2 phases of this project. In Phase 1, a separate IRB agreement between Boeing and PSPC was reached in which Boeing committed to IRBs equivalent to 100% of DND’s proportionate share of the final negotiated price of the Boeing contract with the US DoD for the ninth Wideband Global Satellite. In Phase 2, IRBs were required and Innovation, Science and Economic Development Canada is closely monitoring the IRB achievements. A shift from IRBs to Industrial Technology Benefits as part of the Defence Procurement Strategy will be undertaken in the Phase 3 procurement of strategic deployable terminals.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

The project is currently in phase 2, the anchor segment implementation. Phase 3, the terminal segment, is scheduled for Expenditure Authority approval in November 2016.

Major Milestones

Progress report and explanation of variances

In Phase 1, procurement of early access terminals and participation in the US Department of Defense (DoD) Wideband Global Satellite constellation to the year 2031 was approved by Treasury Board (TB) with Preliminary Approval in October 2011. The MOU is the vehicle used to fund the construction and launch of the ninth Wideband Global System satellite and, thereby, provide the US DoD Wideband Global System service to the Department of National Defence and other international partners to at least, the year 2031. The MOU was signed in January 2012. In addition, approval was granted to define the anchor and the terminal segments and to provide funds to facilitate early use of the Wideband Global Satellite Communications service.

Expenditure and Contract Authority for Phase 2 was achieved in October 2014 for the procurement and installation of the associated Wideband Global Satellite anchor stations. General Dynamics Mission Systems-Canada was awarded contracts for both the installation of the anchor stations and in-service support of the system for a period of seven (7) years, with options for support up to an additional ten (10) years. Construction of the Central anchor station commenced on 13 October 2015. Expenditure Authority for Phase 3, the strategic deployable terminals, will be sought in 2016 after the definition is completed. Industry engagement commenced in the Fall of 2015 and Request For Proposal is scheduled for Winter of 2016.

With a Wideband Digital Channelizer upgrade, Wideband Global SATCOM satellites 8 and 9 within the nine-satellite constellation will almost double their current bandwidth availability through innovative and efficient frequency allocation. This satellite modification is being undertaken by the U.S. Department of Defense; International Partners will not share the cost, in part or in total, for this upgrade.

Through the Initial Operating Capability, MG has directly supported Operation IMPACT, Operation UNIFIER, Operation CARIBBE, Operation NANOOK, Operation REASSURANCE, and Operation RENNAISSANCE 15-1. This effort provides additional robustness to the overall operation and underscores the value proposition of MG.

PROTECTED MILITARY SATELLITE COMMUNICATIONS

Description

The Department of National Defence (DND) and the CAF are being provided with global communications that are secure, guaranteed and directly interoperable with our Allies by the Protected Military Satellite Communications (PMSC) project. The project will deliver guaranteed access to an Advanced Extremely High Frequency (AEHF) Military Satellite Communications System for near-worldwide assured, secure, survivable, and jam-resistant communications to the CAF for the command and control of deployed Canadian commanders and forces, as well as interoperability with some of our principal allies, the United States, the United Kingdom, and the Netherlands.

Project outcomes

Deliver a near-worldwide, assured, secure, survivable, and jam-resistant AEHF Military Satellite Communications System. This system will ensure, in part, that the CAF will be well-equipped with modern strategic and tactical satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability the project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values.

Industrial benefits

Under the completed Phase 1, the US DoD committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations were permitted to bid on project work. In Phase 2 Canada’s Industrial and Regional Benefits Policy (IRB) was applied and an IRB Agreement was negotiated with Raytheon. IRB equal to 100% of the contract value are required. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

The PMSC project is being implemented in two phases with project completion expected March 2021.

Major Milestones

Progress report and explanation of variances

In the completed Phase 1, procurement of guaranteed access to the US Department of Defense (DoD) AEHF satellite constellation was approved by Treasury Board (TB) with Preliminary Project Approval (PPA) in August 1999. TB also granted approval for DND to enter into a Military Satellite Communications Memorandum of Understanding (MOU) with the US DoD. This would ensure DND access to the US DoD AEHF satellite constellation. This MOU was signed in November 1999. In addition, approval was granted to define the terminal segment.

Phase 2 has been underway since November 2003, when TB granted Effective Project Approval for the procurement and installation, where necessary, of the associated AEHF satellite terminals.

Risk mitigation strategies have been identified to minimize future costs due to installations that exceeded budgeted estimates. These strategies have included, awarding installation activities to the supplier with the lowest overall cost structure, while the feasibility of proceeding with firm-fixed price contracts has been explored and implemented.

The installation of the PMSC system on the Halifax Class ships is progressing well with 8 of the 12 ships completed. An additional 2 ships are scheduled for completion by March 2016 with the balance of 3 ships scheduled for completion by December 2017.

Due to slippages in the US DoD overall satellite launch schedule and the Victoria Class submarine installations, the PMSC System Full Operational Capability, has moved to December 2020 from the original expected date of November 2017.

The PMSC Initial Operational Capability was achieved 12 November 2013.

SUBMARINE CAPABILITY LIFE EXTENSION

Description

The Submarine Capability Life Extension (SCLE) project replaced the Oberon class submarine fleet with four surplus British Upholder class (renamed Canadian Victoria class) submarines. The project will ensure that Canada preserves its submarine capability within the existing capital budget. The project supports Canada's ability to conduct surveillance and control of its territory, airspace and maritime areas of jurisdiction, as well as Canada's ability to participate in bilateral and multilateral operations.

Project outcomes

The SCLE Project has acquired a complete submarine capability to replace the previous OBERON class submarines; this replacement capability includes:

• four functional Victoria class submarines, acquired from the United Kingdom Ministry of Defence, with up-to-date "safe to dive" certificates;
• four crew trainers; including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer;
• a technical data package consisting of manuals, design data, trials reports and maintenance and configuration records;
• initial spares including on-board and depot spares, special tools and other support equipment; and
• initial conversion training of four Canadian submarine crews and the fleet support personnel necessary to maintain and operate the Victoria Class.

This project contributes to achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Navy (RCN).

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applied to this project. IRBs valued at 100% of the contract value were required and the contractor successfully met its IRB obligations. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievement.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Implementation: The project has delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews. Canadianization of three platforms and 15 of 17 associated projects have been completed. The last platform (HMCS CORNER BROOK) will complete Canadianization during her Extended Docking Work Period (EDWP) which is set to start in early Fiscal Year (FY) 2015-16. Effective Project Close Process of SCLE will begin FY 2015-16. The project close-out will be achieved with the end of HMCS CORNER BROOK’s EDWP scheduled for the Spring 2018.

Major Milestones

Progress report and explanation of variances

Effective Project Approval (EPA) was granted to the SCLE project in June 1998. The expenditure ceiling was increased by Treasury Board in June 2003 to accommodate the increased scope to include 17 submarines related projects and initiatives that were progressing outside the bounds of SCLE. The SCLE project is within budget.

Canada has accepted all four Upholder submarines from the United Kingdom. The operational status of each of these vessels is summarized below as follows: Her Majesty’s Canadian Submarine (HMCS) VICTORIA and WINDSOR are now operational on the west and east coast respectively. HMCS VICTORIA has proven the class weapon capability with the successful sinking of a decommissioned United States Navy Ship during the multinational Rim of the Pacific exercise in 2012. HMCS CHICOUTIMI has completed the first deep maintenance period conducted by industry and is now in operational service on the West Coast. This achievement represented the attainment of “Steady State” in December 2014. HMCS CORNER BROOK is to enter her deep maintenance period in 2015 and will return to the RCN in 2018.

Based on progress to date and current information, all performance objectives of this contract will be met within the allocated budget.

Although the EPC process is expected to begin in FY 2015-16, a small number of engineering changes still require installation in HMCS CORNER BROOK during her ongoing deep maintenance as well as the procurement of long-lead supply items. This will necessitate the scheduling of funding to achieve Project Close-Out in 2018.

TACTICAL ARMOURED PATROL VEHICLE

Description

The Tactical Armoured Patrol Vehicle (TAPV) project is part of the family of land combat vehicles, announced in July 2009, and provides the Canadian Army (CA) with a flexible, multi-purpose capability enabling the CAF to respond effectively and successfully to the full spectrum of military operations.

The TAPV project will deliver a wheeled combat vehicle to the CA that will fulfill a wide variety of roles on the battlefield, including but not limited to reconnaissance and surveillance, security, command and control, cargo and armoured personnel carrier. It will have a high degree of tactical mobility and crew survivability.

The project scope includes an initial purchase of 500 TAPV and an optional purchase of up to 100 additional vehicles, plus support products and the establishment of associated long-term in-service support.

Project outcomes

The TAPV project expects to achieve the following outcomes:

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

This project contributes to achieving the roles and missions of the CAF and the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Canadian Army.

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to the acquisition and support contracts, with requirements for IRBs equal to 100% of the contract values. Innovation, Science and Economic Development Canada is the IRB Authority responsible for monitoring IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Implementation

Major Milestones

Progress report and explanation of variances

The TAPV Project entered its implementation phase with the project approval of Treasury Board in June 2012. The TAPV project is within its approved budget.

In November 2008, the Senior Project Advisory Committee approved a procurement strategy for a phased approach within a competitive process. PSPC released the Letter of Interest/Price and Availability in July 2009 to obtain cost and schedule information to support the Project Approval (Implementation) submission. A Statement of Interest and Qualification was released in March 2010 and closed in June 2010 with seven pre-qualified bidders announced in July 2010. A draft Request for Proposal (RFP) was issued in November 2010 and the final RFP was issued in March 2011 with a closing date of August 2011. RFP evaluation and testing of contender vehicles commenced in fall 2011 and was completed in January 2012. Project Approval (Implementation) and contract award (acquisition and support contracts) were achieved on 7 June 2012. Six pre-production vehicles were received in July 2013 and underwent Qualification Testing at Canadian Forces Base Valcartier and at the United States Army Aberdeen Test Centre in Maryland, USA. In August 2014, a first round of testing successfully identified design challenges associated with reliability. The project returned to the contract design phase in order to allow the complex, inter-related designs for the vehicle’s structure, suspension and steering to be improved. A second round of reliability testing, at the Nevada Automotive Test Center, USA, is expected to be completed by early 2016. Repeat engineering qualification testing is being conducted as necessary. This testing does not represent an additional investment by Canada beyond the contract awarded to Textron for the acquisition of the TAPVs in June 2012. Initial vehicle delivery is expected in 2016.

TANK REPLACEMENT PROJECT

Description

The purpose of the Tank Replacement Project (TRP) is to replace Canada's aging Leopard 1 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The TRP is divided into two phases. Phase One consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBTs), two Armoured Recovery Vehicles (ARVs), and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBTs from the Netherlands Government. Phase Two consists of the repair, overhaul, upgrade and introduction of 82 Leopard 2 MBTs and eight ARVs into service with the CAF as well as the Integrated Logistics System (ILS) inherent to the variants. In addition, ten Leopard 2 MBT chassis from the original procurement of 100 surplus Leopard 2 MBTs were transferred by the TRP to the Force Mobility Enhancement (FME) Project for conversion into Leopard 2 Armoured Engineer Vehicles (AEVs).

Project outcomes

Deliver the following capabilities:

• 20 Leopard 2 A6M - Operational MBTs equipped with the L55 Gun, additional mine protection, and slat armor systems;
• 20 Leopard 2 A4M - Operational MBTs equipped with the L44 Gun, mine protection, slat armor, and all around add-on armor systems;
• 42 Leopard 2 A4 - MBTs primarily used for training, equipped with the L44 Gun and basic protection;
• 12 Leopard 2 ARVs (including four funded through the Force Mobility Enhancement (FME) project);
• Appropriate ammunition, parts and special maintenance tools and training; and
• 10 Leopard 2 MBTs provided to the FME project for conversion to Leopard 2 ARV and AEVs.

Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values.

This capability is being delivered to the Canadian Army (CA).

Industrial benefits

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project’s Phase 2, but not Phase 1. IRBs equal to 100% of the contract values are required for the Phase 2 acquisitions. Innovation, Science and Economic Development Canada is the IRB Authority and closely monitors IRB achievements.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Implementation. The project received Preliminary Project Approval from Treasury Board (TB) in March 2007 and EPA in June 2009.

Major Milestones

Progress report and explanation of variances

All 82 Leopard 2 A4, A4M and A6M MBT and the first eight Leopard 2 ARVs funded by the TRP project have been delivered. Three of four ARVs funded by Force Mobility Enhancement project have also been accepted. A4M Upgrade is progressing with 7 vehicles of 20 complete. Costs continue to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities.

At the Senior Review Board (SRB) meeting in June 2015, the SRB endorsed an extension to close-out from May 2015 to Fall 2017 in order to complete Integrated Logistics Support requirements involving sparing, and Special Tooling and Test Equipment (STTE).

UNDERWATER WARFARE SUITE UPGRADE

Description

A project to provide an upgraded underwater warfare suite, including sensors, processors and updated software, that corrects the overall deficiency in the current Halifax Class frigates’ detection ranges of submarines and torpedoes, improves the ship’s underwater sensor performance in the challenging littoral environment and provides a system design to enable continual improvement in a cost effective manner.

Project outcomes

The Underwater Warfare Suite Upgrade project will modernize the underwater warfare sensor suite currently installed in the Halifax Class frigates through the acquisition of a minimum of six ship-sets of equipment. The performance of the underwater sensors will be improved through the upgrade and/or replacement of the components of the underwater warfare sensor suite, and also by acquiring new equipment that will introduce new capability to the Royal Canadian Navy. Each ship-set includes new passive towed array sonar, a new sonobuoy processing system, an upgrade to the hull mounted sonar and a new active intercept capability. The project will also procure a minimum of four towed low frequency active sonars. All twelve Halifax Class ships will be fitted with the required infrastructure to allow for the transfer of equipment and sensors between ships, as required.

Industrial benefits

Not yet defined. As the total cost of the project is in excess of $100 million, the industrial and technological benefits policy will apply and the selected defence contractor will be required to undertake business activities in Canada, equal to the value of the contract. Value proposition will be determined through Defence Procurement Strategy governance, and will be rated and weighted as part of the bid evaluation.

Sponsoring and Participating Departments and Agencies

Prime and Major Subcontractor(s)

Project phase

Definition

Major Milestones

Progress report and explanation of variances

The project is currently within budget and on schedule, project performance having been re-baselined upon entering Definition stage.