Status report on transformational and major Crown projects - 2017-18 Departmental Plan

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

The ACP-S has the following project outcomes:

• Acquire five C-17 Globemaster III aircraft; and
• Deliver associated infrastructure at 8 Wing Trenton.

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

Canada will receive IRBs equivalent to 100% of the contracted value for both the acquisitions and Boeing’s share of the integrated in-service support from the US Government.

• Implementation June 2006
• Close-out (expected) 2021

• Effective Project Approval June 2006
• Advanced Contract Award Notice Posted on MERX July 2006
• Contract Award February 2007
• Delivery First Aircraft August 2007
• Initial Operational Capability – first four aircraft October 2008
• Full Operational Capability – first four aircraft December 2012
• Amended Project Approval (to add fifth aircraft) December 2014
• Initial Operational Capability – fifth aircraft March 2015
• Full Operational Capability – fifth aircraft September 2015
• Effective Project Close-out January 2017
• Full Project Close-out 2021

• 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; and
• Full Operational Capability conditions for the fifth aircraft were met on 11 September 2015.

Scope: To take advantage of an opportunity to increase availability and flexibility of the strategic airlift fleet, the ACP-S project’s scope was increased in December 2014 to include the procurement of a fifth aircraft.

Cost: The ACP-S project is currently within the 2014 approved budget.

Schedule: The project is on track to deliver the project milestones in accordance with its 2014 approved schedule. Project Close-out activities are underway. Effective Project Close-out should occur in January 2017, and Full Project Close-out is expected in 2021 after standardizing the fifth aircraft to the rest of the aircraft fleet. Standardization occurs during depot level maintenance which occurs every five years.

Work Plan: In the Fiscal Year 2017-18, the project will continue work to complete remaining elements to move the project from Effective Project Close-out towards Full Close-out.

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

The ACP-T has the following project outcomes:

• Acquire 17 CC-130J aircraft;
• Acquire the associated In-Service Support;
• Deliver the associated training; and
• Deliver the associated infrastructure at 8 Wing Trenton.

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

Canada will receive IRBs equivalent to 100% of the eligible contract value from Lockheed Martin Corporation for both the acquisitions and the In-Service Support.

• Cascade Aerospace – Abbotsford, British Columbia, Canada
• IMP Aerospace – Enfield, Nova Scotia, Canada
• CAE – Montreal, Quebec, Canada
• Standard Aero – Winnipeg, Manitoba, Canada
• HAAS Group – Oshawa, Ontario, Canada

• Implementation December 2007
• Close-out (expected) March 2018

• Revised Preliminary Project Approval June 2006
• Solicitation of Interest and Qualification August 2006
• Issue of Request for Proposal August 2007
• Effective Project Approval December 2007
• Contract Award December 2007
• Initial Operational Capability September 2013
• C-130J Project Arrangement Approved November 2014
• Full Operational Capability (FOC) August 2018
• Effective Project Close-out March 2018

• In-Service Support provisions were contracted in December 2009;
• Maintenance training systems were contracted in February 2010;
• All 17 aircraft were delivered on time and on budget, in Block 6 configuration. Aircraft deliveries began in May 2010 with all aircraft being delivered as of May 2013;
• Block 7 avionics modification required was contracted in November 2013;
• Fleet embodiment and conversion of the CC-130J Training System to the Block 7.0 configuration was completed; and
• ACP-T project-funded modifications at CFB Trenton were completed.

Scope: The ACP-T project is on track to deliver its 2007 approved scope.

Cost: The ACP-T project is currently within the 2007 approved budget.

Schedule: The project has experienced a delay against the 2007 approved schedule. The ACP-T FOC and Project Close-out dates were amended twice. The first change was as a result of a delay in the implementation of the development of the Block 7 modifications. Then, due to changing Communications, Navigation, Surveillance - Air Traffic Management (CNS-ATM) requirements, the CC-130J fleet had to be modified to include an Automatic Dependent Surveillance - Broadcast (ADS-B) system in order to operate over the US and Europe.

Close-out activities are being completed concurrently with ADS-B modifications. The effective Project Close-out is expected in March 2018. The Full Operational Capability will coincide with the expected completion of the ADS-B system modification in August 2018.

Work Plan: In the Fiscal Year 2017-18, the ACP-T project will continue work to complete remaining elements to move the project to Full Operational Capability and Effective Project Close-out.

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

The AOPS project has the following project outcomes:

• Acquire six Arctic and Offshore Patrol Ships;
• Deliver associated jetty infrastructures in Halifax and Esquimalt;
• Deliver a berthing and fueling facility at Nanisivik, Nunavut; and
• Acquire associated In-Service Support elements.

This capability will be delivered to the Royal Canadian Navy.

Canada will receive IRBs equivalent to 100% of the contracted value for the AOPS implementation.

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.

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

In-Service Support:
DND is proceeding to put in place a single long-term In-Service Support Contract (ISSC) to support the AOPS and Joint Support Ship (JSS) vessels. The contract will be competed separately from the design and construction of the two ship classes.

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

• Implementation December 2014
• Close-out (expected) 2024

Preliminary Project Approval May 2007
Design Engineering Logistics Maintenance and Support

• Contract Awarded May 2008
• Revised Project Approval (Definition) I October 2011
• Ancillary Contract Awarded June 2012
• Revised Project Approval (Definition) II December 2012
• Definition Contract Awarded March 2013
• Project Approval (Implementation) December 2014
• Award of Implementation Contract January 2015
• Delivery of First Ship 2018
• Initial Operational Capability 2019
• Full Operational Capability 2023
• Project Close-out 2024

• In accordance with the 2012 approved budget, the Definition Contract was completed in November 2015 under budget;
• Ship 1 entered into full production in September 2015;
• Ship 2 entered into full production in August 2016; and
• Jetty infrastructure projects in Esquimalt, Halifax and Nanisivik are progressing and are on track to be in place when required.

Scope: The project is on track to deliver its 2014 approved scope.

Cost: The project is currently within the 2014 approved budget. Under the contract terms Irving Shipbuilding Inc. is required to inform Canada within seven months of the delivery of Ship 1 whether Ship 6 is affordable within the same contractual ceiling price.

Schedule: Production activities are underway, with Ship 1 delivery expected in 2018 in accordance with the 2014 approved schedule.

Work Plan: In the Fiscal Year 2017-18, the AOPS project is scheduled to achieve the following milestones:

• Ship 2 – Keel laying;
• Ship 3 – Cut steel and enter into full production; and
• Nanisivik Naval Facility – Initial Operational Capability.

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

CCMP is an omnibus project that includes multiple sub-projects for modernizing cryptographic equipment and a cyclical project for modernizing the key management infrastructure.

This project contributes to DND’s Program Alignment Architecture (PAA) Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values.

The CCMP Omnibus project will deliver affordable information protection to departments and agencies in the Government of Canada by means of the following sub-projects:

• Classified Security Management Infrastructure (CSMI);
• Secure Voice / Telephone Family;
• Link Encryption Family;
• Network Encryption Family;
• Combat Identification Family (Identification Friend or Foe (IFF)); and
• Secure Radio Family:
  • Combat Net Radio Enhancement (CNRE) – this project received funds from CCMP; it is a dependency, not a sub-project; and
  • Secure Radio Sub-Project

Note: The Secure Mobile Environment sub-project was cancelled.

Implementation of the first CCMP sub-project September 2009
Close-out (expected) 2021

Classified Security Management Infrastructure Project November 2006

CCMP SUB-PROJECT COMPLETION DATES:
Secure Voice / Telephone Re-key Infrastructure September 2009
Secure Voice / Telephone Family July 2012

CSMI – Phase 1A 2017
CSMI – Phase 1B March 2013
CSMI – Phase 2A 2018
CSMI – Phase 2B 2021
CSMI – Phase 3 (cancelled) all capability will be delivered in CSMI Phase 2B

Link Encryption Family 2020
Note: DND’s Link Encryption Project was completed in March 2013

Network Encryption Family 2018

Combat Identification Family (Identification Friend or Foe (IFF)) 2018

Secure Radio Family 2021

Secure Mobile Environment (cancelled) N/A

Combat Net Radio Enhancement 2019

• The Secure Voice / Telephone Re-key Infrastructure sub-project was completed in September 2009;
• The Secure Voice / Telephone Family sub-project was completed in July 2012;
• The DND Link Encryption Project was completed in March 2013; and
• The CSMI Phase 1B sub-project was completed in March 2013.

Scope: The CCMP Omnibus project is on track to deliver its 2005 approved scope.

Cost: The CCMP Omnibus project is currently within the 2005 approved budget.

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

The project originated as a 12-year program ending in 2016. In the submission that was approved in November 2012, the end date of the program was extended to March 2020. On 31 March 2016, a Change Request approved by the CCMP Senior Decision Board extended the end date of the program to March 2021. This change will be noted in the next CSMI Phase 2B submission targeting approval in March 2017. Although the baseline schedule and cash flow are being updated, extending the end date of the program will not impact the overall cost.

Work Plan: In the Fiscal Year 2017-18, the CCMP will work on the following sub-projects that are scheduled for completion in 2017 and 2018: CSMI Phase 1A, CSMI Phase 2A, IFF Mode 5 and the Network Encryption Family. In addition, work will continue on CSMI Phase 2B, Secure Radio, Combat Net Radio Enhancement and the Link Encryption Family that are scheduled for completion from 2019 to 2021.

This project contributes to the Program Alignment Architecture (PAA) Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values.

The CSH project has the following project outcomes:

• Deliver 15 CSH aircraft at full operational capability.

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

Canada’s Industrial and Regional Benefits (IRB) Policy was applied to this project. Canada has received its IRBs and the contractor has successfully completed its IRB obligations.

Westland Helicopters – Yeovil, UK
Augusta Spa – Cascina Costa, Italy
General Electric Canada Inc. – Mississauga, Ontario, Canada

Implementation September 2001
Close-out (expected) Spring 2017

Effective Project Approval April 1998
Contract Award April 1998
First Aircraft Delivery September 2001
Final Aircraft Delivery July 2003
Full Operational Capability September 2004
Effective Project Completion September 2004
Project Close-out Spring 2017

• All 15 Cormorant helicopters were delivered as of July 2003;
• Spare parts, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for applicable RCAF search and rescue bases were delivered and are in place to support operations;
• Initial training was completed; and
• Effective Project Completion (EPC) was achieved in September 2004 at which point the Project Management Office was closed; however, some contract deliverables remained outstanding which are being pursued post EPC.

Scope: The project will deliver its 1998 approved scope.

Cost: The project will deliver under the 1998 approved budget.

Schedule: To conform to the design specification, the project is funding a minor retrofit on the fleet which is to be carried out when major maintenance is conducted. Due to this work, the Project Close-out date identified in the 1998 submission was delayed from 2006 to 2017. Retrofit activities are underway and Project Close-out is expected in Spring 2017.

Work Plan: In the Fiscal Year 2017-18, the CSH project is to receive the outstanding deliverables from the contractor and close the CSH acquisition project.

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

The CSC project has the following project outcomes:

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

This capability is being delivered to the Royal Canadian Navy.

Definition June 2012
Implementation (expected) Early 2020s

Project Approval (Definition Phase 1) June 2012
Project Approval (Definition Phase 2) 2017
Contract Approval (Definition Phase 2) 2017
Project Approval (Implementation) Early 2020s
Implementation Contract - Awarded Early 2020s
First Delivery Mid 2020s
Project Close-out Early 2040s

• Government officials announced in January 2015 that Irving Shipbuilding Inc. will be the Prime contractor for the Canadian Surface Combatant project;
• Government officials announced the procurement process by which the ships will be acquired on 1 May 2015;
• Prequalification of bidders was completed in October 2015; and
• Over the summer of 2016, Canadian Industry and the pre-qualified short listed respondents were engaged on the draft Request for Proposals. Irving Shipbuilding Inc. released the Request for Proposals on 27 October 2016. The bid period will close on 27 April 2017.

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

Cost: The upcoming Definition Phase 2 will initially focus on further requirements reconciliation and the ship design phases. Completion of the design phases will inform the costing of the project. This activity will be jointly undertaken by project staff, Irving Shipbuilding Inc. and its sub-contractors. It is recognized that the budget for CSC was set early in the process and may need to be revisited.

Schedule: Definition Phase 1 activities are underway and Definition Phase 2 is expected to start in 2017. It is estimated the project will be in the Definition Phase 2 for three years until the award of the implementation contract – this is an improvement over the previous four years minimum that would be required if the CSC were to be a new design. The evaluation of the Request for Proposals was previously targeted for completion Spring 2017 as approved in May 2016 but has now shifted to Summer 2017 due to the delay in the release of the Request for Proposals.

Work Plan: In the Fiscal Year 2017-18, the CSC project will seek expenditure and contracting authorities for Definition Phase 2 and contracting authority for the Combat Management System (CMS) Software Support. These authorities will allow Canada to enter into contract with Irving Shipbuilding Inc. to carry out the Initial Design Review activities which commence with the Requirements Reconciliation task. The contracting authority for the CMS Software Support will allow Canada to enter into contract with the CMS provider to provide long term software support.

The combined objective of the CP-140 Aurora Incremental Modernization Project (AIMP) and the Aurora Structural Life Extension Project (ASLEP) is to modernize and extend the life of 14 of Canada’s 18 CP-140 Aurora aircraft until the fleet’s planned retirement date of 2030. This work will provide the capability to conduct Intelligence, Surveillance and Reconnaissance (ISR) in order to detect threats to Canadian security as early as possible.

AIMP was an omnibus project with 23 sub-projects. As of October 2013, the remaining AIMP sub-projects have been consolidated under one project.

This project contributes to achieving the Program Alignment Architecture (PAA) Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values.

The AIMP has the following project outcomes:

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

The ASLEP has the following project outcome:

• Deliver structural upgrade of 14 CP-140 Aurora aircraft.

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

Implementation June 2015
Close-out (expected) December 2020

Block I Full Operational Capability July 2007
Block II Full Operational Capability March 2012
Block III Full Operational Capability April 2019
Block IV Definition Approved October 2013
Block IV Implementation Approved June 2015
Contract Award to General Dynamic Mission Systems-Canada October 2015
Block IV Initial Operational Capability December 2018
Block IV Full Operational Capability June 2020
Project Close-out December 2020

ASLEP

• Implementation Approved May 2008
• Amended Implementation Approved October 2013
• Full Operational Capability April 2019
• Project Close-out July 2019

• AIMP:
  • Blocks I and II are complete and have delivered a modernized CP-140 navigation and communication capability to the RCAF;
  • As of 31 December 2016, 11 of 14 aircraft have received updated mission computer and sensors under Block III; and
  • Block IV was contracted with General Dynamics Mission Systems-Canada in October 2015.
• ASLEP:
  • As of 31 December 2016, 10 of 14 aircraft have received structural life extension.

Scope: Both projects are on track to deliver their implementation approved scope (AIMP: 2015, ASLEP: 2013). 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.

Cost: Both projects are on track to deliver within the 2015 approved budgets. The rising US$ exchange rate has affected the AIMP and ASLEP. Both projects were approved by their Senior Review Board to use contingency funds to cover shortfalls caused by the exchange rate fluctuation.

Schedule: As a result of delays in production, Full Operational Capability dates for AIMP and ASLEP have been delayed from the 2015 approved schedule.

Work Plan: In the Fiscal Year 2017-18, AIMP Block III/ASLEP will deliver the 12^th modernized and 11^th life-extended aircraft from combined production. In addition, AIMP Block IV will complete the design phase for the three additional capabilities and induct the prototype aircraft for modification.

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

The FWSAR project has the following project outcomes:

• Acquire 16 new, sensor-equipped aircraft to replace the SAR fleets of CC-115 Buffalo and CC-130H Hercules;
• Acquire long-term In-Service Support; and
• Deliver associated infrastructure.

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

Implementation December 2016
Project Close-out (expected) 2023

Expenditure Authority – Definition phase March 2012
Project Approval (Definition) March 2015
Project Approval (Implementation) December 2016
Contract Award December 2016
First Aircraft Delivery 2019
Initial Operational Capability 2020
Full Operational Capability 2022
Project Close-out 2023

• The FWSAR project received Project Approval for the Definition Phase in spring 2015;
• The Request for Proposal was released on 31 March 2015;
• The bid evaluation completed in summer 2016; and
• A contract was awarded to Airbus Defence and Space on 1 December 2016.

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

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

Schedule: The project is currently on track to deliver the project milestones in accordance with the 2016 approved schedule.

Work Plan: In the Fiscal Year 2017-18, the FWSAR project will continue the implementation phase of the project and participate in the preliminary design and review activities such as User Requirement Review, System Requirement Review, Preliminary Design Review, and Critical Design Review for the acquisition and In-Service Support.

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

The FME project has the following project outcomes:

Phase 1:

• Acquire 18 Leopard 2 AEVs; and
• Acquire four Leopard 2 ARVs.

Phase 2:

• Acquire Tactical Mobility Implements (TMI), specifically 18 Dozer Blades, 16 Track Width Mine Ploughs and 16 Mine Clearing Roller Systems; and
• Deliver modifications to the entire Leopard 2 tank fleet to accept TMI.

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

Canada will receive IRBs equivalent to 100% of the contracted value in Phase 1 only, with the exception of the government-to-government purchase of the Leopard 2 MBT chassis.

Phase 1 (AEV) Implementation March 2012
Phase 2 (TMI) Implementation November 2013
Close-out (expected) March 2018

Synopsis Sheet (Identification) September 2008
Senior Project Advisory Committee Approval November 2008
Preliminary Project Approval - Phase 1 June 2009
Request for Proposal released - Phase 1 October 2010
Advanced Contract Award Notice (ACAN) posted on MERX - Phase 2 July 2011
Request for Proposal released - Phase 2 June 2011
Revised Project Approval - Phase 1 March 2012
Contract Award - Phase 1 April 2012
Project Approval - Phase 2 November 2013
Contract Award - Phase 2 December 2013
Initial Operational Capability (IOC) - Phase 1 May 2017
IOC - Phase 2 March 2017
Full Operational Capability (FOC) December 2017
Project Close-out March 2018

• The first seven AEV have been accepted by Canada;
• All four of the ARVs have been delivered;
• Ten mine roller systems have been delivered;
• Four dozer blades have been delivered;
• Four mine ploughs have been delivered; and
• Modifications to the Leopard 2 MBT fleets are currently underway, with 33 vehicles completed.

Scope: The project is on track to deliver its approved 2012 scope.

Cost: The project is currently within budget as approved in 2012.

Schedule. The project will incur a small delay to the approved 2012 schedule of Close-out in September 2017, with Close-out now anticipated in March 2018. Due to the limited availability of the Canadian Army to conduct training, the IOC dates for Phases 1 and 2 were delayed. The Senior Review Board (SRB) meeting on 5 February 2016 endorsed revisions to the IOC dates. Initial Cadre Training for Phase 2 is being completed on schedule in October 2016, but lack of spare parts is preventing declaration of IOC. Once contracts for spare parts are fulfilled to sufficient capacity, IOC Phase 2 will be declared.

Work Plan: In the Fiscal Year 2017-18, the project will continue delivery of modified Leopard 2 MBTs, AEVs and mobility implements, and will begin fielding AEVs to Canadian Army units after Initial Cadre Training for Phase 1 is complete.

The FFCP has the following project outcome:

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

This capability will be delivered to the Royal Canadian Air Force (RCAF).

Options Analysis April 2012
Definition (expected) Fall 2017

Project Approval (Definition) Fall 2017
Project Approval (Implementation) TBD
Contract Award TBD
Delivery First Aircraft TBD
Initial Operational Capability TBD
Full Operational Capability TBD
Project Close-out TBD

• On November 22, 2016, the Government announced that it will launch an open and transparent competition for the permanent replacement of Canada’s CF-18 fighter aircraft, including acquiring new aircraft and the associated In-Service Support.

Scope: DND is collaborating with PSPC and ISED to replace the CF-18 fighter aircraft, focusing on options that match Canada’s defence needs.

Cost: The project’s implementation budget is contingent on approval as part of the Project Approval process for Implementation.

Schedule: The project is currently on schedule.

Work Plan: In the Fiscal Year 2017-18, the project will work with industry and foreign governments to obtain further information on costs, delivery times, interoperability, readiness, economic benefits, and other elements that will help inform the upcoming bid solicitation process.

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

The HCM/FELEX project has the following project outcomes:

• Deliver 12 modernized HALIFAX-Class ships.

This capability is being delivered to the Royal Canadian Navy.

Canada will receive IRB’s equivalent to 100% of the contracted value for both the acquisitions and the In-Service Support.

In-Service Support Contractor (Class Design Agent):
Fleetway Incorporated – Halifax, Nova Scotia, Canada

Internal Communications System:
DRS Flight Safety and Communications. – Kanata, Ontario, Canada

Multi-Ship Contract (East):
ISI Halifax Shipyard. – Halifax, Nova Scotia, Canada

Multi-Ship Contract (West):
Seaspan Victoria Shipyards – Victoria, British Columbia, Canada

Combat System Integration Contract:
Lockheed Martin Canada – Montreal, Quebec, Canada

Harpoon/Advanced Harpoon Weapons Control System:
The Boeing Company – St-Louis, Missouri, USA

Implementation October 2010
Close-out (expected) January 2019

Preliminary Project Approval
FELEX February 2005
HCM/FELEX February 2007
Refit Procurement Strategy Approval March 2007
Revised Preliminary Project Approval (Part 1) June 2007
Multi-Ship Contracts Awarded (Docking Work Periods and Refits)
West Coast March 2008
East Coast March 2008
Effective Project Approval (Part 2) September 2008
Combat System Integration Contract Award November 2008
Refits Begin October 2010
Initial Operational Capability January 2015
Full Operational Capability January 2018
Project Close-out January 2019

• As of January 2017, 10 of 12 ships have completed their modernization and returned to the Navy for operational employment; and
• Two ships are currently undergoing their acceptance trials, HMCS Toronto and HMCS Regina.

Scope: The project is on track to deliver its September 2008 approved scope.

Cost: The project is currently within budget, based on September 2008 approval.

Schedule: The project is on track to deliver the project milestones in accordance with its September 2008 approved schedule. Implementation activities are ongoing and Full Operational Capability is expected in January 2018.

Work Plan: In the Fiscal Year 2017-18, the HCM/FELEX project will focus on achieving Full Operational Capability.

This project contributes to the 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 project is linked to the Force Capability Guidance that allows the CAF to support the Government's foreign policy and national security objectives through this joint-nation project.

The PDMSU project has the following project outcomes.

• Develop an improved point defence missile as part of a 12 country initiative;
• Acquire and integrate an upgraded Point Defence Missile System for the Halifax Class ship; and
• Acquire stock of the Evolved Seasparrow missile Block 2.

This capability is being delivered to the Royal Canadian Navy.

The development work, performed under the ESSM Block 2 Engineering and Manufacturing Development Memorandum of Understanding (MOU), consists of Government work and industrial work. While the Government 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 stands at 14.43% 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.

Canada’s Integrated Regional Benefits (IRB) Policy does not apply to this project.
In the Definition phase the Canadian Industry will receive 14.43% of the industrial portion of the ESSM Block 2 Engineering and Manufacturing Development Memorandum of Understanding.

The Implementation planning is ongoing.

Definition November 2014
Implementation (expected) March 2017

Project Approval and Definition Expenditure Authority November 2014
Initial ESSM Block 2 Engineering and Manufacturing Development MOU Payment November 2014
Project Implementation Submission March 2017
Initial Operational Capability (IOC) December 2021
Full Operational Capability (FOC) December 2025
Project Close-out March 2028

• Project Approval and Definition Expenditure Authority were granted on 6 November 2014; and
• The Project Approval enabled Canada to sign the ESSM Block 2 Engineering and Manufacturing Development Memorandum of Understanding on 12 November 2014.

Scope: The project is on track to deliver its 2014 approved scope.

Cost: The project is currently within its November 2014 approved budget.

Schedule: The PDMSU project is on track to deliver the project milestones in accordance with its 2014 approved schedule. Project submission activities are underway and the PDMSU project Implementation submission is expected to be presented in March 2017.

Work Plan: Subject to Implementation submission approval, in the Fiscal Year 2017-18 the project will focus on ordering the initial set of Block 2 missiles, completion of the missile and systems interface specifications, and initiation of contracts for the integration of the new capability on the Halifax class ships.

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

The IFCP has the following project outcome:

• Deliver an interim fighter capability to support execution of the roles and missions asked by the Government of Canada.

This capability will be delivered to the Royal Canadian Air Force (RCAF).

Options Analysis November 2016
Definition (expected) TBD

Project Approval (Definition) TBD
Project Approval (Implementation) TBD
Contract Award TBD
Delivery First Aircraft TBD
Initial Operational Capability TBD
Full Operational Capability TBD
Project Close-out TBD

• On November 22, 2016, the Government announced that it will immediately explore the acquisition of 18 new Super Hornet aircraft to supplement the CF-18s until the permanent replacement arrives.

Scope: Before proceeding, the Government reserves the right to decide if they can provide the interim fleet at a cost, time, level of capability, and economic value that is acceptable to Canada.

Cost: The project’s implementation budget is contingent on approval as part of the Project Approval process for Implementation.

Schedule: The project is currently on schedule.

Work Plan: In the Fiscal Year 2017-18, the project will enter into discussions with the U.S. Government and Boeing regarding use of the Super Hornet jets for an interim period of time.

The objective of the Land Forces Intelligence, Surveillance, Target Acquisition and Reconnaissance (LF ISTAR) System is to deliver and evolve an integrated, interoperable ISTAR capability through the acquisition of or enhancement to capabilities in the areas of communications, command and control and sensors. This work 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.

LF ISTAR is an omnibus project with 10 sub-projects.

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

The LF ISTAR Omnibus project will deliver an integrated intelligence capability by means of the 10 sub-projects:

• Tactical Unmanned Aerial Vehicle;
• Beyond Line of Sight (BLOS) Communication Network;
• Datalink Communication;
• Command and Control (C2);
• Electronic Warfare (EW);
• In-Service Sensors (ISS);
• Medium Range Radar;
• Acoustic Weapon Locating System;
• Family of Mini-UAV; and
• Lightweight Counter Mortar Radar.

This capability is being delivered to the Canadian Army.

Type 1 Radios Data Link Communication project – Foreign Military Sales (FMS):
US Army – USA

Light Weight Counter Mortar Radars (LCMR) – Foreign Military Sales:
US Army – USA

Remote Viewing Terminal (ISS Project):
L3 Communications, CSW – Salt Lake City, Utah, USA

Mini Unmanned Aerial System:
MDA – Richmond, British Columbia, Canada

Medium Range Radar:
Rheinmetall Canada Inc. – St-Jean-sur-Richelieu, Québec, Canada

Small Unmanned Aerial System – Foreign Military Sale (in progress):
US Navy – USA

Man Portable Surveillance and Target Acquisition Radar (MSTAR) Upgrade (ISS Project): TBC

Implementation November 2005
Close out (expected) September 2018

Omnibus Project Preliminary Project Approval April 200

Tactical Unmanned Air Vehicle – Effective Project Approval May 2003
Project Closed June 2009

Beyond Line of Sight Communication – Effective Project
Approval November 2005
Project Closed May 2010

Data Link Communication – Effective Project Approval December 2006
Initial Operational Capability April 2010
Full Operational Capability June 2015
Project Close-out September 2016
Project Closed Demcember 2016

Command and Control (C2) – Effective Project Approval February 2008

Initial Operational Capability October 2012
Full Operational Capability November 2017
Project Close-out March 2018

Electronic Warfare (EW) Urgent Operational Requirement –
Effective Project Approval November 2005

Electronic Warfare (EW) –
Effective Project Approval Amendment 1 February 2008
Initial Operational Capability March 2006
Full Operational Capability June 2015
Effective Project Close-out January 2016

In-Service Sensors - Project Approval Implementation January 2012
Initial Operational Capability March 2015
Full Operational Capability March 2018
Project Close-out July 2018

Medium Range Radar - Project Approval Implementation January 2012
Contract Award June 2015
Initial Operational Capability September 2017
Full Operational Capability June 2018
Project Close-out September 2018

Acoustic Weapon Locating Sensors –
Effective Project Approval November 2005
Project Closed May 2010

Family of UAV Urgent Operational Requirement –
Effective Project Approval November 2005
Family of UAV
Project Approval Implementation Amendment 1 January 2012
Initial Operation Capability September 2014
Full Operational Capability March 2018
Project Close-out July 2018

Light Weight Counter Mortar Radar
Effective Project Approval March 2007
Initial Operation Capability March 2008
Full Operational Capability October 2016
Project Close-out March 2017

All LFISTAR sub-projects - Deliveries Complete May 2018
Project Close-out September 2018

• Four sub-projects have been successfully completed and closed;
• One sub-project has achieved full operational capability and is in the closing process;
• Five sub-projects are still active; and
• Two important contracts and a few smaller procurement activities are still to be awarded before LF ISTAR project Close-out.

Scope: The project is on track to deliver its approved 2003 scope.

Cost: The project is currently within budget. Some funds will need to be reallocated amongst sub-projects, but the overall cost will remain within the LF ISTAR Omnibus approved budget from 2003.

Schedule: The project has experienced some delays from its approved 2003 schedule. The project is progressing well and has only the following remaining capabilities to deliver before project Close-out, currently estimated for September 2018:

• Medium Range Radar. Contract awarded in summer 2015 for initial delivery in July 2017 (1st radar);
• Small UAV system. FMS case was signed in summer 2016 for an expected delivery of the first Small UAV system in fall 2017;
• Remote Viewing Terminal. Contract was awarded in fall 2015 and delivery of equipment started in July 2016. Last items will be delivered in March 2017;
• Man Portable Surveillance and Target Acquisition Radar (MSTAR). Contract will be awarded in fiscal year 2016-17 and complete delivery by March 2018; and
• ISTAR C2 will continue to deliver the final items of the Advance Patrol Collection Kit until the end of 2017.

Work Plan: In the Fiscal Year 2017-18, the LF ISTAR project will:

• Finalize closure of projects in Close-out phase;
• Deliver the first 2 Medium Range Radar to the Canadian Army;
• Deliver the first small Unmanned Aircraft System (Blackjack) to the Canadian Army;
• Deliver the initial MSTAR Version 4 to the Canadian Army;
• Complete the delivery of the Advanced Patrol Collection Kit; and
• Seek Revised Expenditure Authority (within the LF ISTAR approved allocation) for the Family of UAV sub-project.

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

The JSS project will deliver two Joint Support Ships, with an option for a third vessel if it is affordable or if additional internal funding becomes available.

This capability is being delivered to the Royal Canadian Navy.

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

In-Service Support: DND is proceeding to put in place a single long-term In-Service Support Contract (ISSC) to support the Arctic and Offshore Patrol Ship (AOPS) and Joint Support Ship (JSS) vessels. The contract will be competed separately from the design and construction of the two ship classes.

Definition June 2010
Implementation (expected) 2018

Options Analysis Fall 2009
Revised Project Approval (Definition) 1 June 2010
Revised Project Approval (Definition) 2 April 2014
Revised Project Approval (Definition) 3 December 2014
Revised Project Approval (Definition) 4 June 2015
Revised Project Approval (Definition) 5 August 2016
Revised Project Approval (Definition) 6 Spring 2017
Project Approval (Implementation) 2018
Award of Implementation Contract 2018
Delivery of first ship 2021
Initial Operational Capability 2021
Full Operational Capability 2022
Project Close-out 2022

• Under the National Shipbuilding Strategy announcement on 19 October 2011, Vancouver Shipyards Co. Ltd (VSY) is to build the JSS.
• 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.
• The Initial Design Review (IDR) work started on 23 September 2014.
• Seaspan’s Vancouver Shipyards Co Ltd was awarded the Joint Support Ship long lead items contract in December 2015. The work of the contract was to select the key equipment suppliers and obtain the necessary vendor furnished information to complete the ship design.

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

Cost: The Project Definition activities remain within the August 2016 approval. The Definition work will define the project’s implementation budget.

Schedule: JSS Project Definition activities are underway in accordance with the August 2016 approval. The Design and Production Engineering contract is expected to be awarded in Fiscal Year (FY) 2016-17 and work to be completed in 2018.

Work Plan: In the FY 2017-18, the JSS project will continue to source and procure long lead items and progress the design to enable start of construction in FY 2018-19.

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

The JUSTAS project has the following project outcome:

• Deliver a mature long range, long endurance Unmanned Aircraft System capability that meets the objectives of the CAF.

This capability will be delivered to the Royal Canadian Air Force, and will support the Canadian Army, the Royal Canadian Navy and Special Operations Forces.

Options Analysis August 2005

Project Approval (Definition) TBD
Project Approval (Implementation) TBD
Contract Award TBD
First aircraft delivery TBD
Initial Operational Capability TBD
Full Operational Capability TBD
Project Close-out TBD

JUSTAS is in the Options Analysis phase. Responses from the Request for Information (closed in April 2016) will be used to develop options.

Work Plan: In the Fiscal Year 2017-18, the JUSTAS project will develop options aligned with the outcome of the Defence Policy Review, analyze each option through the Business Case Analysis, and determine the recommended option.

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

The LAV III upgrade project has the following project outcome:

• Deliver 550 LAV III vehicles upgraded in the areas of mobility, protection and lethality.

This capability is being delivered to the Canadian Army.

Canada will receive IRBs equivalent to 100% of the contracted value from General Dynamics Land Systems-Canada for both the acquisitions and In-Service Support.

Implementation October 2011
Close-out (expected) March 2021

Approval for Definition June 2009
Approval for Implementation October 2011
Contract Award October 2011
First Vehicle Delivery December 2012
Initial Operational Capability June 2014
Full Operational Capability March 2021
Project Close-out March 2021

• Initial Operational Capability occurred in June 2014; and
• A total of 409 vehicles have been delivered to date.

Scope: In November 2016 the project received the additional authority to deliver the full upgrade to the 141 LAV III Operational Requirements Integration Task (LORIT) vehicles which were originally only to receive a partial upgrade under the scope of the project approved in October 2011.

Cost: The project is within the budget established in November 2016 as part of the amended scope approval.

Schedule: The project remains on schedule as established in November 2016 as part of the amended scope approval.

Work Plan: In the Fiscal Year 2017-18, the LAV III upgrade project will focus on delivering the remaining contracted vehicles and resolving the outstanding technical issues with the prime contractor.

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

The LWTH project has the following project outcomes:

• Acquire 25 new M777 155mm Lightweight Towed Howitzers;
• Acquire up to 34 digital Gun Management Systems;
• Acquire 37 wheeled gun tractors for the Medium Support Vehicle System (MSVS) - Standard Military Pattern (SMP);
• Acquire operation stock ammunition;
• Acquire associated Integrated Logistics Support; and
• Deliver associated Infrastructure.

This capability is being delivered to the Canadian Army.

Canada will receive IRBs equivalent to 100% of the value for the BAE Systems M777 Lightweight Towed Howitzer Foreign Military Sales Acquisition case.
Canada will receive IRBs equivalent to 100% of the value for SELEX GMS acquisition contract.

Implementation October 2012
Close-out (expected) March 2018

Identification Phase Approval – Identification Phase January 2008
Preliminary Project Approval (PPA) – Definition Phase June 2008
M777 Foreign Military Sale (FMS) Agreement November 2008
Digital Gun Management System Contract Award November 2009
Effective Project Approval (EPA) – Implementation Phase January 2010
M777 Initial Support Contract Award June 2010
Initial Operational Capability (IOC) October 2012
Full Operational Capability (FOC) December 2017
Project Close-out March 2018

• Deliveries of the M777 howitzers were completed in the summer of 2011;
• IOC was achieved in October 2012;
• Delivery of ammunition components such as propellant, projectiles and fuses; and
• Integrated logistic support within the users’ community as well as with the Original Equipment Manufacturer and our allies.

Scope: The project is on track to deliver its 2008 approved scope.

Cost: The project is currently within the 2008 approved budget.

Schedule: The project has experienced a delay of 5 years against the 2010 approved schedule, primarily as a result of delays to the MSVS SMP project and technical challenges associated with the Course Correcting Fuze - Precision Guidance Kit. The infrastructure component of the project is progressing well with minor construction work remaining to be completed.

The remaining project deliverables are the MSVS Gun Tractor variant and a portion of the ammunition requirements. The delivery of the improved ammunition (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. FOC is expected in December 2017.

Work Plan: In the Fiscal Year 2017-18, the project will receive all remaining Precision Guided Kit – Course Correcting Fuze ammunition. The project will continue work towards completing the integration of this ammunition with the current M777 Artillery equipment. In addition, the project will start receiving deliveries of the Gun Tractor vehicles from the MSVS project. The Gun Tractor vehicles will have a specialty Ammunition Stores and Handling System integrated onto them.

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

The MHP has the following project outcomes:

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

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

Canada will receive IRBs equivalent to 107% of the contracted value for the acquisitions and 80% of the contracted value for the In-Service Support portion from Sikorsky Aircraft.

Implementation June 2014
Close-out (expected) 2022

• Preliminary Project Approval June 2003
• Effective Project Approval November 2004
• Contract Award November 2004
• Amended Project Approval (Implementation) June 2014
• First Delivery (Block 1 Maritime Helicopters) June 2015
• First Delivery (Block 2 Maritime Helicopters) 2018
• Final Delivery 2021
• Project Close-out 2022

• Six Cyclones were formally accepted in the Block I configuration in June 2015;
• One Capability Release 1.1 Cyclone was accepted in November 2015 with a second Capability Release 1.1 Cyclone accepted in December 2015;
• The latest Ship’s Helicopter and Operating Limits (SHOL) testing was conducted from January to April 2016 on HMCS HALIFAX; and
• The Block 2 Critical Design Review was successfully completed on 27 April 2016.

Scope: On 18 June 2014, following a revised Effective Project Approval, the Government of Canada and Sikorsky International Operations Incorporated signed a contract amendment. This amendment extended the In-Service Support Agreement out to 2038 and re-baselined the project schedule.

Contract Amendment 007 was signed on 28 January 2016 which includes an additional seven Capability Release 1.1 Cyclones being delivered to the Royal Canadian Air Force within the 2016-17 timeframe.

Cost: The MHP is currently within the 2004 approved budget.

Schedule: The MHP is on track to deliver the project milestones in accordance with its approved schedule, as re-baselined in the revised Effective Project Approval in June 2014. Implementation activities are ongoing. The Royal Canadian Air Force is conducting Operational Testing and Evaluation with the Block 1 and Capability Release 1.1 aircraft in advance of formal Release to Service in 2017.

Work Plan: In the Fiscal Year 2017-18, the MHP will achieve Release to Service which is a critical milestone for achieving Initial Operational Capability in April 2018. Conversion Training of operational crews from Sea King to Cyclone will commence in July 2017. Flight testing for Block 2 Integrated Mission Systems is scheduled to start in July 2017 in support of delivery of the first Block 2 helicopters in June 2018.

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

The MSVS project has the following project outcomes, divided in phases:

• Phase 1:
  • Acquire 1,300 Militarized Commercial-Off-The-Shelf (MilCOTS) trucks.
• Phase 2:
  • Acquire 994 Specially Equipped Vehicle (SEV) baseline shelters (26 are funded by the Medium-to-Heavy Lift Helicopters (MHLH) project and 7 by the Land Forces Intelligence, Surveillance, Target Acquisition and Reconnaissance project, Family of UAVs sub-project (LF ISTAR FUAV)).
• Phase 3:
  • Modify 836 baseline shelters (also referred to as “Shelter Kitting”).
• Phase 4:
  • Acquire 1,500 Standard Military Pattern (SMP) Trucks in five variants: Cargo; Cargo with Material Handling Crane; Load Handling System; Mobile Repair Team; and Gun Tractor. (Plus 37 funded by the Lightweight Towed Howitzer (LWTH) project);
  • Acquire 150 integrated Armour Protection Systems. (Plus 7 funded by LWTH);
  • Acquire 300 Load Handling System trailers; and
  • Acquire long-term In-Service-Support.
• Phase 5:
  • Deliver associated Infrastructure.

This capability is being delivered to the Canadian Army.

MilCOTS:
Navistar Defence LLC, Warrenville, Illinois, USA

Baseline Shelters:
DEW Engineering and Development ULC, Ottawa, Ontario, Canada

Kitting:
DEW Engineering and Development ULC, Ottawa, Ontario, Canada

Standard Military Pattern:
Mack Defence LLC, Allentown, Pennsylvania, USA

Implementation May 2015
Close-out (expected) December 2020

• Preliminary Project Approval June 2006
• MilCOTS - Delivery Complete March 2011
• Baseline Shelter - Contract Award July 2009
• Baseline Shelter - First Delivery May 2012
• Baseline Shelter - Delivery Complete February 2015
• Kitting - Contract Award December 2012
• Kitting - First Delivery January 2014
• Kitting - Delivery Complete November 2016
• SMP - Project Approval (Implementation) May 2015
• SMP - Contract Award June 2015
• SMP - First Delivery Fall 2017
• SMP - Delivery Complete Spring 2019
• Project Close-out December 2020

• Phase 1 – The MilCOTS vehicles are in-service.
• Phase 2 – The last delivery of the Baseline Shelters was completed in February 2015.
• Phase 3 – Shelter Kitting delivery was completed in November 2016.
• Phase 4 – SMP Trucks:
  • Project Approval (Implementation) was achieved in May 2015; and
  • The contract was awarded in June 2015. Truck, trailer and armour protection system testing are ongoing.
• Phase 5 – Infrastructure work is in progress.

Scope: The project is on track to deliver its 2015 approved scope.

Cost: The project is currently within the 2015 approved budget.

Schedule: Mack Defense LLC requested the postponement of the SMP Truck deliveries from June to September 2017 to minimize concurrent requirement verification and production efforts. Therefore, the planned delivery of the SMP Trucks (Phase 4) has been delayed by approximately three months from the 2015 schedule.

Work Plan: In the Fiscal Year 2017-18, the project will continue project implementation and work towards achieving the Phase 4, SMP Trucks’ first vehicle delivery in fall 2017.

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

The MHLH project has the following project outcomes:

• Acquire 15 Chinook CH-147F helicopters;
• Deliver the associated infrastructure and support elements to create a new helicopter unit in Petawawa; and
• Deliver aircrew training through the Operational Training Systems Provider initiative.

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

Canada will receive IRBs equivalent to 100% of the contracted value for both the acquisitions and the integrated In-Service Support.

Aircraft and In-Service Support:
The Boeing Company – Philadelphia, Pennsylvania, USA

Aircrew Training:
CAE – St-Laurent, Quebec, Canada

Petawawa Infrastructure:
Ellis-Don Corporation – Ottawa, Ontario, Canada

Implementation June 2009
Close-out (expected) 2020

Preliminary Project Approval June 2006
Advanced Contract Award Notice Posted on MERX July 2006
Effective Project Approval and Boeing Acquisition
Contract Award June 2009
CAE Contract Amendment to include MHLH
Operational Training March 2010
Ellis-Don Corporation Contract Award October 2010
First Aircraft Delivery June 2013
Boeing Contract Amendment – In-Service Support
(first five years) June 2013
Last Aircraft Delivery June 2014
Initial Operational Capability (IOC) February 2015
Full Operational Capability (FOC) June 2018
Project Close-out 2020

• All 15 aircraft have been delivered on time with the final aircraft being delivered in June 2014; and
• Initial Operational Capability was declared in February 2015.

Scope: The MHLH project is on track to deliver its 2009 approved scope.

Cost: The MHLH project is currently within the 2009 approved budget.

Schedule: The Full Operational Capability and Project Close-out are delayed relative to the 2009 approved schedule. The new dates for Full Operational Capability and Close-out are June 2018 and 2020 respectively. Delays to the original Full Operational Capability and Close-out dates were due to pilot production and Directional Infrared Counter Measure (DIRCM) system integration and delivery.

Work Plan: In the Fiscal Year 2017-18, in addition to completing the last elements necessary to sign off the basic air vehicle airworthiness certification, the MHLH project will deliver some critical mission capabilities such as the Radar Warning Receiver (RWR) system, the litter mission kits, the cargo handling system and the Infrared suppression system blankets and blockers.

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

The MG project has the following project outcomes:

• Phase 1
  • Acquire access to Wideband Global SATCOM (WGS) satellite constellation via a Memorandum of Understanding (MOU) with the United States Department of Defence (DoD) and other international partners (Denmark, the Netherlands, Luxembourg, and New Zealand). The MOU is the vehicle used to fund the construction and launch of the ninth WGS satellite and, thereby, provide access to the US DoD WGS constellation to the Department of National Defence and other international partners to at least the year 2031; and
  • Acquire early access terminals.
• Phase 2 – Design, build and support seven permanent antennas at three sites across Canada.
• Phase 3 – Acquire deployable terminals for strategic use to operate specifically with the WGS constellation.

This capability is being delivered to the Canadian Army.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to the first two phases of this project.

In Phase 1, Canada will receive IRBs equivalent to 100% of the contracted value on a separate agreement between Boeing and Public Services and Procurement Canada for the ninth WGS space vehicle (satellite).

In Phase 2, Canada will receive IRBs equivalent to 100% of the contracted value for both the acquisition and the In-Service Support.

In Phase 3, Canada will receive IRBs equivalent to 100% of the contracted value for both the capital acquisition and the In-Service Support as part of the Defense Procurement Strategy.

Space segment:
United States Department of Defense (DoD) via a Memorandum of Understanding

Anchor Segment:
General Dynamics Mission Systems – Canada; Ottawa, Ontario, Canada

Strategic Deployment Terminals - To be determined (TBD)

Early Access Terminals:
Telesat Canada – Ottawa, Ontario, Canada

Implementation October 2014
Close-out (expected) 2019

Preliminary Project Approval October 2011
Initial Operational Capability May 2013
Effective Project Approval (EPA) October 2014
Anchor Segment Interim Operational Capability December 2017
Terminal Implementation Complete December 2018
Full Operational Capability March 2019
Project Close-out 2019

• Phase 1
  • Preliminary Project Approval was attained in October 2011; and
  • The Wideband Global SATCOM (WGS) MOU was signed in January 2012.
• Phase 2
  • Expenditure and Contract Authority for Phase 2 was achieved in October 2014;
  • 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; and
  • Construction of the Central anchor station commenced on 13 October 2015.
• Phase 3
  • Industry engagement commenced in the fall of 2015, with an Industry Day in March 2015; and
  • The Terminal Segment Request for Proposal was released in August 2016.
• The MG project has directly supported Operation IMPACT, Operation UNIFIER, Operation CARIBBE, Operation NANOOK, Operation REASSURANCE, and Operation RENNAISSANCE 15-1.

Scope: The project is on track to deliver the 2014 approved scope. In addition, the WGS satellites 8 and 9 will undergo a Wideband Digital Channelizer upgrade, which will almost double their current bandwidth. 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.

Cost: The project is currently within the 2014 approved budget.

Schedule: The project has experienced a delay against the 2014 approved schedule. Expenditure Authority for Phase 3, the strategic deployable terminals, will be sought in 2017 after the definition is completed.

Work Plan: In the Fiscal Year 2017-18, the MG project will complete the construction at all sites (East, Central, and West) and bring the Central site to an Interim Operational Capability.

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

The PMSC project has the following project outcomes:

• Phase 1
  • Acquire access to the US Department of Defense (DoD) AEHF Military Satellite Communications System via an MOU signed in November 2007.
• Phase 2
  • Acquire AEHF satellite terminals in multiple variants: naval, land transportable, and deployable;
  • Install AEHF satellite terminals, where necessary; and
  • Deliver associated Infrastructure.

Implementation November 2013
Close-out March 2025

Preliminary Project Approval August 1999
Effective Project Approval November 2003
Initial Terminal Delivery November 2011
Initial Operational Capability November 2013
PMSC System Full Operational Capability December 2024
Project Close-out March 2025

• Phase 1 – Complete
  • Preliminary Project Approval was provided in August 1999; and
  • The Military Satellite Communications Memorandum of Understanding (MOU) was signed in November 1999.
• Phase 2
  • Effective Project Approval was provided in November 2003; and
  • The PMSC Initial Operational Capability was achieved 12 November 2013.

Scope: The project is on track to deliver the 2003 approved scope. Capability is being delivered to the Canadian Army, Navy, and Air Force.

Cost: The project is currently within the 2003 approved budget. Risk mitigation strategies have been identified to minimize future costs due to installations that exceeded budgeted estimates. These strategies 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.

Schedule: The installation of the PMSC system on the Halifax Class ships is progressing well with 9 of the 12 ships completed and another two ships in progress. The final ship is 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 2024 from the original (2003 approved) expected date of November 2017.

Work Plan: In the Fiscal Year 2017-18, the project will complete installation of the PMSC system on Halifax Class ships and progress installation of PMSC on two Victoria Class Submarines (VCS). The first VCS System Operations Verification Test (SOVT) with the US DoD is anticipated in spring 2018.

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

The SCLE project has the following project outcomes:

• Acquire four functional Victoria class submarines, acquired from the United Kingdom Ministry of Defence, with up-to-date "safe to dive" certificates;
• Acquire four crew trainers; including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer;
• Acquire a technical data package consisting of manuals, design data and build records, drawings, trials reports and maintenance and configuration records;
• Acquire initial spares including on-board and depot spares, special tools and other support equipment;
• Deliver initial conversion training of four Canadian submarine crews and the fleet support personnel necessary to maintain and operate the Victoria Class submarines; and
• Provide adequate support capability on both east and west coasts to allow for the home-porting of submarines in Halifax, Nova Scotia and Esquimalt, British Columbia.

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

Canada’s Industrial and Regional Benefits (IRB) Policy was applied to this project. Canada received IRBs equivalent to 100% of the contracted value for both the acquisitions and the In-Service Support.

Implementation April 2006
Close-out (expected) 2018

Implementation Approval June 1998
Main Contract Award July 1998
Initial Support Contract Award July 1998
Revised Implementation Approval June 2003
Initial Operational Capability (IOC) April 2006
Full Operational Capability (FOC) November 2012
Effective Project Close-out (EPC) 2016
Project Close-out 2018

• The project has delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates;
• The project has delivered 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; and
• Canadianization, which comprises 17 associated projects, has been completed on three submarines. The final two remaining projects are being implemented in HMCS Corner Brook’s ongoing Extended Docking Work Period (EDWP) which is scheduled to complete in 2018.

Scope: The project is on track to deliver the 2003 approved scope.

Cost: All performance objectives of this project will be met within the allocated budget approved in 2003.

Schedule: The project is on track to deliver the project milestones in accordance with its 2015 update to Government. Effective Project Close-out process of the project began in FY 2015-16. Project Close-out will be achieved with the end of HMCS Corner Brook’s EDWP scheduled for 2018.

Work Plan: In FY 2017-18, the project is expected to deliver most long lead supply items and undertake the installation of the last Canadianization engineering changes on HMCS Corner Brook currently in EDWP.

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

The TAPV project has the following project outcomes:

• An initial purchase of 500 TAPV;
• An optional purchase of up to 100 additional vehicles;
• Procurement and delivery of essential Integrated Logistics Support (ILS) to sustain the fleet for 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 capability is being delivered to the Canadian Army.

Implementation June 2012
Close-out (expected) end 2018

Preliminary Project Approval June 2009
Project Approval (Implementation) June 2012
Contracts awarded June 2012
Initial Operational Capability Spring 2017
Full Operational Capability mid 2018
Project Close-out end 2018

• The Request for Proposal (RFP) was issued in March 2011;
• The project entered implementation phase, with Project Approval (Implementation) and contract award (acquisition and support contracts) approved 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 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, was completed in April 2016. Repeat engineering qualification testing is being conducted as necessary. This testing did not represent any additional investment by Canada beyond the contract awarded to Textron in June 2012; and
• Initial vehicle delivery was achieved in August 2016.

Scope: The project is on track to deliver the 2012 approved scope.

Cost: The project is within its 2012 approved budget.

Schedule: The project has experienced a delay of over two years against the 2012 approved schedule, primarily as a result of the need to return to the design phase following identification of design challenges.

Work Plan: In the Fiscal Year 2017-18, the project will complete the delivery and fielding of the TAPV, and aims to complete establishment of the support system.

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

The TRP has the following project outcomes, in two phases:

Phase 1

• Borrow 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; and
• Acquire 100 surplus Leopard 2 MBTs from the Netherlands Government.

Phase 2

• Acquire 20 Leopard 2 A6M - Operational MBTs equipped with the L55 Gun, additional mine protection, and slat armor systems;
• Acquire 20 Leopard 2 A4M - Operational MBTs equipped with the L44 Gun, mine protection, slat armor, and all around add-on armor systems;
• Acquire 42 Leopard 2 A4 - MBTs primarily used for training, equipped with the L44 Gun and basic protection;
• Acquire 8 Leopard 2 Armoured Recovery Vehicles (ARV);
• Provide 4 Leopard 2 MBTs to the FME project for conversion to Leopard 2 ARVs;
• Provide 6 Leopard 2 MBTs to the FME project for conversion to Leopard 2 Armoured Engineer Vehicles (AEV); and
• Acquire appropriate ammunition, parts and special maintenance tools and training.

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

MBT and ARV loan:
German Ministry of Defence (MoD)

MBT upgrades:
Krauss Maffei Wegmann (KMW), Germany

ARV upgrades:
Rheinmetall Land System (RLS), Germany

MBT purchase:
Netherlands Government

Phase 2

Convert 20 to Leopard 2 A4M:
KMW, Germany

Convert 20 to Leopard 2 A6M:
KMW, Germany

Repair 42 Leopard 2 A4:
Rheinmetall Canada Inc. – Saint-Jean-sur-Richelieu, Quebec, Canada

Acquire eight Leopard 2 ARVs:
RLS, Germany and Rheinmetall Canada Inc. – Saint-Jean-sur-Richelieu, Quebec, Canada

Integrated Logistics Support (ILS) – Ammunition:
General Dynamics Ordnance and Tactical Systems – Le Gardeur, Quebec, Canada

ILS – Simulators:
Rheinmetall Defence Electronics, Germany

ILS – Special Tools and Test Equipment:
Several manufacturers (11 Contracts)

ILS – Initial Provisioning of Spare Parts:
Phase One, several manufacturers (11 Contracts) - Phase Two, several manufacturers (Five contracts)

Sub-Calibre Training Devices:
Krauss Maffei Wegmann (KMW), Germany

A4M Upgrade:
Krauss Maffei Wegmann (KMW), Germany

Implementation August 2007
Close-out (expected) December 2017

Preliminary Project Approval March 2007
Revised Preliminary Project Approval June 2008
Initial Operational Capability (IOC) August 2007
Effective Project Approval June 2009
Full Operational Capability (FOC) September 2017
Project Close-out December 2017

• All 82 Leopard 2 A4, A4M and A6M MBT and the first eight Leopard 2 ARVs funded by the TRP project have been delivered;
• Four ARVs funded by the Force Mobility Enhancement project have also been delivered; and
• A4M Upgrade is progressing with 18 of 20 vehicles complete.

Scope: The project is on track to deliver the 2009 approved scope.

Cost: Costs continue to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities. The project is within the 2009 approved budget.

Schedule: The project is behind the schedule established in the 2009 Effective Project Approval. The Senior Review Board (SRB) at its meeting in June 2015 endorsed an extension to Close-out from May 2015 to December 2017 in order to complete Integrated Logistics Support requirements involving sparing and Special Tooling and Test Equipment (STTE).

Work Plan: In the Fiscal Year 2017-18, the project will focus on the delivery of spare parts, and special tools and test equipment. It will also focus on finalization of the Weapons Effects Simulation integration with the ARV and design change to the Commanders System Control Unit (CSCU) and Control Logic Distribution Module (CLMD) for Military Grid Reference System (MGRS) and Lased Target on the 2A4M.

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

The UWSU project has the following project outcomes:

• Acquire a minimum of six ship-sets that will include a new passive array and low frequency active towed sonar, a new sonobuoy processing system, an upgrade to the hull mounted sonar and a new active intercept capability; and
• Fit all twelve Halifax Class ships with the required infrastructure to allow for the transfer of equipment and sensors between ships as required for operational requirements if all equipment upgrades are not permanently fitted on all ships.

This capability will be delivered to the Royal Canadian Navy.

Definition May 2015
Implementation (expected) December 2017

Project Approval (Definition) May 2015
Issue of Request for Proposal (RFP) February 2017
Project Approval (Implementation) December 2017
Contract Award January 2018
Initial Operational Capability August 2020
Full Operational Capability June 2024
Project Close-out September 2024

• Price and Availability request released to industry in July 2012; and
• Draft Request for Proposal (RFP) released in July 2016.

Scope: The project is on track to deliver the May 2015 approved scope.

Cost: The project is currently within budget, based on May 2015 approval.

Schedule: The project is currently on schedule and project milestones having been re-baselined upon entering Definition phase in May 2015. Definition activities are ongoing, and the RFP is expected to be posted on the buyandsell website in January 2017.

Work Plan: In the Fiscal Year 2017-18, the project plans to complete the bid evaluation process and seek approval for the implementation phase and contracting authority to enter into both acquisition and In-Service Support contracts.