Status report on transformational and major Crown projects

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Aerospace Equipment Acquisition.

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’s Industrial and Regional Benefits (IRB) Policy applies to this project. 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

Closeout (expected): 2021

The ACP-S project is achieving project objectives, notably:

• 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 for the fifth aircraft were met in September 2015; and
• Effective Project Closeout was achieved in October 2016.

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 Treasury Board capital expenditure.

Schedule: The project is on track to deliver the project milestones in accordance with its 2014 approved schedule. Project Closeout activities are underway. Effective Project Closeout occurred in October 2016, and Full Project Closeout 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 2018-19, the ACP-S project will achieve the following: Delivery of a Flatbed Utility Trailer and other assorted items/services purchased via FMS.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Aerospace Equipment Acquisition.

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.

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

Closeout (expected): 2019

The ACP-T project is achieving project objectives, notably:

• 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 June 2010 with all aircraft being delivered as of May 2012;
• Block 7 avionics modifications were contracted in November 2013;
• Automatic Dependent Surveillance - Broadcast (ADS-B) system integration was contracted in December 2016; and
• ACP-T project-funded modifications at CFB Trenton were completed in October 2016.

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 Closeout 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.

Closeout activities are being completed concurrently with ADS-B modifications. The Effective Project Closeout is expected in December 2018. The Full Operational Capability will coincide with the expected completion of the ADS-B modification in August 2018.

Work Plan: In the Fiscal Year 2018-19, the ACP-T project will achieve the following:

• Operational Test and Evaluation (OT&E) of ADS-B including aircrew proficiency training and completed by March 2018;
• Maintenance Training Courseware updated May 2018;
• All aircraft modified with ADS-B by the end of July 2018;
• Maintenance Training Program Ready for Training August 2018;
• Full Operational Capability August 2018; and
• Effective Project Closure Activities completed December 2018.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Maritime Equipment Acquisition.

The AOPS project has the following project outcomes:

• Acquire five to six Arctic and Offshore Patrol Ships;
• Deliver associated jetty infrastructures in Halifax and Esquimalt; and
• Deliver a berthing and fueling facility at Nanisivik, Nunavut.

This capability will be delivered to the Royal Canadian Navy.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. Canada will receive IRBs equivalent to 100% of the contracted value for the AOPS implementation.

Acquisition:

Irving Shipbuilding Inc. – Halifax, Nova Scotia, Canada

In-Service Support:

Thales Canada Inc. and Thales Australia Inc. – Ottawa, Ontario, Canada

Gibbs & Cox Maritime Solutions – Arlington, Virginia, USA

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

Closeout (expected): 2024

The AOPS project is achieving project objectives, notably:

• In accordance with the 2012 approved budget, the Definition Contract was completed in November 2015 under budget;
• With the official cutting of steel, the lead ship in the class, the future Her Majesty’s Canadian Ship (HMCS) Harry DeWolf, entered full production in September 2015;
• With the official cutting of steel, the second ship in the class, the future HMCS Margaret Brooke, entered full production in August 2016;
• Movement of the three mega-blocks for Ship 1, the lead ship in the class, the future HMCS Harry DeWolf, from inside the Halifax Shipyard’s Assembly and Ultra Hall facility to the exterior land level construction point occurred throughout 2017;
• With the official cutting of steel, the third ship in the class, the future HMCS Max Bernays, entered full production in December 2017; and
• Jetty infrastructure projects in Halifax and Nanisivik are progressing and are on track to be in place to support ship delivery. The Esquimalt jetty infrastructure focus remains on the award of the construction contract in 2019.

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 2019 in accordance with the approved schedule.

Work Plan: In the Fiscal Year 2018-19, the AOPS project will achieve the following:

• Launch of the lead ship in the class, the future HMCS Harry DeWolf;
• Movement of the first two mega-blocks for the second ship in the class, the future HMCS Margaret Brooke;
• Keel laying for the third ship in the class, the future HMCS Max Bernays; and
• Cut-steel for the fourth ship in the class, the future HMCS William Hall.

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 is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Defence Information Technology Systems Acquisition, Design and Delivery.

The CCMP Omnibus project will deliver affordable information protection to departments and agencies in the Government of Canada (GC) 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.

N/A

Various allied manufacturers of cryptographic equipment

Implementation of the first CCMP sub-project: September 2009

Closeout of the CCMP Omnibus project (expected): 2022

The CCMP Omnibus project is achieving project objectives, notably:

• 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 2017 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 CCMP Omnibus Project originated as a 12-year program ending in 2016 but it has been extended to 2022 due to increased complexity and delays in the CSMI Project that relies on input from the United States Key Management Infrastructure (KMI) Program.

Work Plan: In the Fiscal Year 2018-19, the CCMP project will achieve the following: CSMI Phase 1A, CSMI Phase 2A and IFF Mode 5 are scheduled for completion in 2018-19. Work will continue on the CSMI Phase 2B, Network Encryption, Secure Radio and Combat Net Radio Enhancement projects that are scheduled for completion between 2020 and 2022. Project that relies on input from the United States Key Management Infrastructure (KMI) Program.

The objective of the Canadian Search and Rescue Helicopter (CSH) project is to acquire a fleet of 15 new helicopters that will replace the CH-113 Labrador. This acquisition will provide the capability to support search and rescue services for the population of Canada.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Aerospace Equipment Acquisition.

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 (RCAF).

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.

Leonardo MW Ltd. (formerly Augusta Westland International Limited, and before that, European Helicopters Industries Ltd. (EHI)) – Farnborough, UK

Westland Helicopters - Yeovil, UK

Augusta Spa - Cascina Costa, Italy

General Electric Canada Inc. - Mississauga, Ontario, Canada

Implementation: September 2001

Closeout (expected): 2017-18

The CSH project has achieved the following project objectives, notably;

• 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 Closeout date identified in the 1998 submission was delayed from 2006 to 2017. All retrofit activities have physically been completed. Claims have been received for completions of the last 2 milestones and payments are being processed. Final step will be to formally close the project, which is expected to be completed by end of FY 2017-18.

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

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Maritime Equipment Acquisition.

The CSC project has the following project outcomes:

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

This capability is being delivered to the Royal Canadian Navy.

The Industrial and Technological Benefits (ITB) Policy of Canada’s Defence Procurement Strategy (DPS) applies to the selection of an existing warship design and design team to design the Canadian Surface Combatant. As such, a DPS value proposition will be a weighted and rated aspect of the evaluation to select the bidder and design that provides the best overall value for Canadians. Canada will receive equivalent to 100% of the contracted value for both the acquisition and the In-Service Support contracts.

Irving Shipbuilding Inc., Halifax, Nova Scotia, Canada

Being selected through a competitive Request for Proposals (RFP)

Definition: June 2012

Implementation (expected): Early 2020s

The CSC project is achieving project objectives, notably:

• Government officials announced in January 2015 that Irving Shipbuilding Inc. will be the Prime contractor for the Canadian Surface Combatant project;
• Government officials announced the initial procurement strategy on 1 May 2015;
• Prequalification of bidders was completed in October 2015;
• An initial reconciliation of requirements was completed in October 2015;
• The refined procurement strategy was announced in June 2016;
• Over the summer of 2016, Canadian Industry and the pre-qualified short listed respondents were engaged on the draft Request for Proposals. Irving Shipbuilding Inc. released the Request for Proposals on 27 October 2016.
• Canada’s Defence Policy, Strong, Secure, Engaged, was released on 7 June 2017, citing the procurement of 15 Canadian Surface Combatants with an updated overall project budget: and
• November 30, 2017: Canadian Surface Combatant Request for Proposal closed and bids received; Bid completeness checks completed.

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.

Schedule: Definition Phase 1 activities are underway and Definition Phase 2 is expected to start in fall 2018. 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 (RFP) was previously targeted for completion in spring 2017 as approved in May 2016 but has now shifted to spring 2018 due to the delay in the release of the RFP and extension of bid period.

Work Plan: In the Fiscal Year 2018-19, the CSC project will achieve the following:

• Summer 2018 CSC design selected;
• Fall 2018 Definition Contract awarded to Irving Shipbuilding Inc.;
• Fall 2018 Definition Sub-Contract awarded by Irving Shipbuilding Inc. for the selected design and design team.

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 in order to maintain the fleet’s operational capabilities 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 originally an omnibus project consisting of 23 sub-projects. As of October 2013, the remaining on-going AIMP projects were consolidated under one project.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Aerospace Equipment Acquisition.

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 on 14 of the 18 CP-140 Aurora aircraft.

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

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

General Dynamics Mission Systems - Canada - Ottawa, Ontario, Canada

Lockheed Martin Aeronautics - Marietta, Georgia, USA

IMP Aerospace – Halifax, Nova Scotia, Canada

Implementation: June 2015

Closeout (expected): June 2022

AIMP

ASLEP

The AIMP and ASLEP projects are achieving project objectives, notably:

• AIMP:
  • Blocks I and II are complete and have delivered a modernized CP-140 navigation and communication capability to the RCAF;
  • As of 31 March 2018, 12 of 14 aircraft have received updated mission computer and sensors under Block III; and
  • Block IV achieved critical design review in August 2017, and prototype aircraft was inducted for modification in November 2017.
• ASLEP:
  • As of 31 March 2018, 11 of 14 aircraft have received structural life extension.

Scope: Both projects are on track to deliver their implementation approved scope (AIMP: 2015, ASLEP: 2013), though AIMP Block IV is at risk due to IMP Aerospace capacity to meet modification schedule for all aircraft for planned FOC. 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. An increase in IMP Aerospace rates (both retroactive and forecast), for which negotiation is ongoing with PSPC, has increased cost and reduced flexibility.

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 2018-19, the AIMP and ASLEP projects will achieve the following: Delivery of last two Block III Combined Production aircraft in April and December 2018. Completion of the prototype AIMP Block IV modification in September, with Ground and Flight test over the winter 2018-19. Induction of the second Block IV aircraft (‘Proof-of-Fit’) in Summer 2018.

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

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Aerospace Equipment Acquisition.

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 a Training solution including new Training Facility;
• Acquire long-term In-Service Support;
• Deliver associated infrastructure; and
• Reduce search times across Canada’s AoR.

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

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

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

PAL Aerospace – St. John’s, Newfoundland, Canada

CAE – Montreal, Quebec, Canada

Pratt & Whitney Canada – Longueuil, Quebec, Canada

L-3 WESCAM – Burlington, Ontario, Canada

Implementation: December 2016

Project Closeout (expected): 2023

The FWSAR project is achieving project objectives, notably:

• 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 was 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 2018-19, the FWSAR project will achieve the following:

• Critical Design Review of the Aircraft;
• Critical Design Review of the In-Service Support Systems;
• Critical Design Review of the Training Program; and
• Start of fuselage integration for integration for aircraft number one and aircraft number two.

The objective of the Force Mobility Enhancement (FME) project is to acquire a Leopard 2-based Armoured Engineer Vehicle (AEV) and Armoured Recovery Vehicles (ARV) capability to replace the current Leopard 1-based AEV and ARV fleets. This acquisition will provide the capability to move earth and clear mines, to ensure that troops have a clear, safe path.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Land Equipment Acquisition.

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’s Industrial and Regional Benefits (IRB) Policy applies to this project. 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 Main Battle Tanks (MBT) chassis.

Flensburger Fahrzeugbau (FFG) - Flensburg, Germany

Gesellschaft mit beschränkter Haftung (GmbH) - Flensburg, Germany

Krauss-Maffei Wegmann GmbH and Co. KG (KMW) - Munich, Germany

Urdan Metal and Casting Industries Ltd - Tel Aviv, Israel

Kongsberg Defence and Aerospace - Norway

Flensburger Fahrzeugbau (FFG) Canada - Bathurst, New Brunswick, Canada

Kongsberg Protech Systems Canada - London, Ontario, Canada

Phase 1 (AEV) Implementation: March 2012

Phase 2 (TMI) Implementation: November 2013

Closeout (expected): March 2019

The FME project is achieving project objectives. As of 31 December 2017:

• 13 of 18 AEV have been accepted by Canada;
• All four of the ARVs have been delivered;
• All 16 mine roller systems have been delivered;
• All 18 dozer blades have been delivered;
• All 16 mine ploughs have been delivered; and
• Modifications to the Leopard 2 MBT fleets are currently underway, with 60 of 82 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 delay to the approved 2012 schedule of Closeout in September 2017, with Closeout now anticipated in March 2019. 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. IOC for Phase 1 was completed in December 2017. FOC for FME is delayed until December 2018 due to contractor delivery delays for outstanding spares.

Work Plan: In the Fiscal Year 2018-19, the FME project will achieve the following: FOC and Project Closeout will be achieved upon acceptance of the remaining AEVs, completion of the remaining Optimized Front Protection modifications and completion of the remaining Leopard 2 MBTs Tactical Mobility Implement modifications.

The objective of the Future Fighter Capability Project (FFCP) is to successfully acquire and transition into service 88 advanced fighter aircraft along with the associated equipment, weapons and sustainment capability that leverages Canadian capabilities and contributes to economic growth and jobs.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Aerospace Equipment Acquisition.

The FFCP has the following project outcomes:

• 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).

Canada’s Industrial and Technological Benefits (ITB) Policy applies to the acquisition and sustainment of the permanent replacement fighter fleet. This will require that industry make investments in Canada equal to the value of the acquisition and In-Service Support contracts/agreements. Canada will seek, through negotiations, contractual commitments from industry that align with the Value Proposition (VP) strategic objectives.

Canada will continue to engage with stakeholders on advancing industrial and technological benefits for companies in Canada, and promoting innovation, ensuring best value and supporting Canada’s defence priorities.

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

To be determined (TBD)

TBD

Definition: November 2017

The FFCP project is achieving project objectives, namely:

• 7 June 2017: Strong, Secure, Engaged Defence Policy announced Canada would purchase 88 advanced fighter jets.
• 30 November 2017: Project Approval and Expenditure Authority granted to the FFCP for entry into Definition Phase.
• 12 December 2017: The Government of Canada launched an open and transparent competition to permanently replace Canada’s fighter fleet with 88 advanced fighter aircraft, and announced it is creating a Suppliers List, inviting foreign governments and their fighter aircraft manufacturers together to demonstrate their suitability to participate in this process.
• On 22 January 2018, FFCP held an Industry Day to present foreign governments and industry with the information required for them to make an informed decision about participating in the procurement. One-on-one meetings with Industry representatives were also held the rest of that week (23-26 January 2018).

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

Cost: An acquisition budget of $15B-$19B Canadian was announced as part of “Strong, Secure, Engaged” Defence Policy. The project’s implementation budget will be informed by ongoing project definition work including engagement with governments and industry, and is contingent on approval as part of the Project Approval process for Implementation.

Schedule: While the schedule remains aggressive, the project is currently on schedule to issue solicitation documents in 2019.

Work Plan: In the Fiscal Year 2018-19, the FFCP project will achieve the following:

• Responses to the Suppliers List Invitation will be assessed in early spring 2018; The Suppliers List will identify key suppliers that will be eligible to participate in the competition and submit a proposal.
• Ongoing supplier engagement will continue in 2018 and into 2019 to inform the procurement process, refine Canada’s needs and develop the solicitation documentation.

The Project plans to release draft solicitation documents to potential suppliers for review in Fall 2018.

The objective of the Halifax Class Modernization/Frigate Life Extension (HCM/FELEX) project is to modernize the combat systems and carry out a mid-life upgrade on the Royal Canadian Navy's fleet of 12 Canadian-built Halifax Class patrol frigates. This work will ensure that the Halifax Class patrol frigates continue to operate effectively as the backbone of the Royal Canadian Navy fleet.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Maritime Equipment Acquisition

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

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

N/A

Implementation: October 2010

Closeout (expected): January 2019

The HCM/FELEX project is achieving project objectives, notably:

• As of December 2017, all 12 ships have completed the refit portion of their modernization and have been returned to the Navy for operational employment.

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 2018-19, the HCM/FELEX project will achieve the following:

• The project will declare FOC in January 2018;
• The project will gain Senior Review Board approval to execute an Effective Project Closeout in the fall of 2018; and
• The project will gain approval of its Effective project Closeout plan in the fall of 2018.

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

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Maritime Equipment Acquisition.

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 ships; 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 work will be performed primarily by the U.S. Government, the industrial work is shared among the Contributing Participants in accordance with their cost share percentages.

Work share for Implementation Phase is governed by the MOU for the Production of the ESSM Block 2, with work share based on the country’s percentage of total missile acquired. As a result, the work share is 100% of the value associated with the production of the contracted missiles.

Canada’s Integrated Regional Benefits (IRB) Policy does not apply to this project.

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

NATO SeaSparrow Surface Missile System Project

Raytheon Missile Systems Company - Louisville, KY, USA

Implementation: March 2017

Closeout (expected): March 2028

The PDMSU project is achieving project objectives, notably:

• Canada signed the ESSM Block 2 Engineering and Manufacturing Development Memorandum of Understanding on 12 November 2014.
• Canada signed the ESSM Block 2 Production Memorandum of Understanding on 29 March 2017.

Scope: The project is on track to deliver its 2017 approved scope.

Cost: The project is currently within its 2017 approved budget.

Schedule: The PDMSU project is on track to deliver the project milestones in accordance with its schedule.

Work Plan: In the Fiscal Year 2018-19, the PDMSU project will initiate the development of Combat Systems software upgrade to support the ESSM Block 2 capabilities, perform the in-field testing and evaluation of Block 2 transceiver, and initiate the first phase of Packaging, Handling, Storage and Transportation (PHS&T) testing.

The objective of the Interim Fighter Capability Project (IFCP) is to pursue the acquisition of Australian F/A-18 aircraft, associated spares and equipment to supplement the current CF-18 fleet to address the fighter capability gap.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Aerospace Equipment Acquisition.

The IFCP has the following project outcomes:

• Augment current CF-18 fighter fleet capability to support execution of the roles and missions assigned by the Government of Canada.

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

The Industrial and Technological Benefits (ITB) Policy of Canada’s Defence Procurement Strategy (DPS) does not apply to the purchase of military equipment from a foreign government where a prime contractor is not involved; however, there will be opportunities for Canadian Industry supporting the current fleet.

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

Acquired from the Australian Government through Government to Government arrangement (Instrument of Sale).

TBD

Definition: February 2017

Implementation (expected): Fall 2018

The IFCP project is achieving project objectives, namely:

• On December 12, 2017, the Government announced that it will pursue the acquisition of Australian F/A-18 aircraft, associated spares and equipment to supplement the current CF-18 fleet to address the fighter capability gap.

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

Schedule: The project is currently on its December 2017 approved schedule.

Work Plan: In the Fiscal Year 2018-19, the IFCP project will achieve the following:

1. Complete project definition activities and achieve PA (Implementation); and
2. Sign Instrument of Sale with Government of Australia.

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 is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Land Equipment Acquisition.

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.

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

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

ELTA System, Israel – Partnered with Rheinmetal Canada for Medium Range Radar

Implementation: November 2005

Closeout (expected): March 2020

The LF ISTAR project is achieving project objectives, namely:

• Five sub-projects have been successfully completed and closed;
• One sub-project has achieved full operational capability and is in the closing process (ISTAR LCMR);
• Four sub-projects are still active and reaching end of implementation phase with the next 2 years; and
• Two important contracts (MSTAR and Second Small UAS) and a few smaller procurement activities are still to be awarded before LF ISTAR project Closeout.

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. Meetings are in progress to complete Revised Expenditure Approval.

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 Closeout, currently estimated for March 2020:

• Medium Range Radar. Contract awarded in summer 2015 for initial delivery in July 2017 (1^st radar) and complete delivery is expected by December 2019;
• Small UAV system. FMS case was signed in summer 2016 for an expected delivery of the first Small UAV system in 2017; Intent is to complete acquisition of a full FUAV capability including the FUAV Blackjack 2^nd system;
• Remote Viewing Terminal. Contract was awarded in fall 2015 and delivery of equipment started in July 2016. Last items will be delivered in 2018;
• Man Portable Surveillance and Target Acquisition Radar (MSTAR). Contract was be awarded in June 2017 and complete delivery is expected by December 2019; and
• ISTAR C2 will continue to deliver the cabling for shelters until the end of 2019.

Work Plan: In the Fiscal Year 2018-19, the LF ISTAR project will achieve the following: Implementation activities will focus on remaining sub-projects to continue delivery of required equipment and provide In-Service Support to fielded equipment. The Contract for the 2^nd FUAV Blackjack system is expected to be awarded once the procurement strategy has been approved.

The objective of the Joint Support Ship (JSS) project is to acquire new support ships to replace the Auxiliary Oiler Replenishment (AOR) fleet. This acquisition will provide the capability to provide at-sea support to deployed naval task groups, and to provide limited sealift and support to operations ashore.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Maritime Equipment Acquisition.

This capability is being delivered to the Royal Canadian Navy.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. Canada will receive IRBs equivalent to 100% of the contracted value for both the acquisitions and the In-Service Support. For the In-Service Support contract, a Defence Procurement Strategy (DPS) value proposition will be a weighted and rated aspect of the evaluation to select the most qualified bidder.

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

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

In-Service Support: A single long-term In-Service Support Contract (ISSC) to support the Arctic and Offshore Patrol Ship (AOPS) and Joint Support Ship (JSS) vessels is in place.

Alion Science and Technology (Canada) Corporation – Ottawa, Ontario, Canada

Thales Canada Inc. – Ottawa, Ontario, Canada

Computer Sciences Canada Inc. – Ottawa, Ontario, Canada

Germanischer Lloyd Canada (DNV-GL) – Montreal, Quebec, Canada

ThyssenKrupp Marine Systems Canada Inc. – Ottawa, Ontario, Canada

VARD Electro – Tennfjord, Norway

VARD Electro Canada Inc. – Vancouver, British Columbia, Canada

Trident Maritime Systems – Crozet, Virginia, USA

L-3 Communications MAPPS Inc. – St. Laurent, Quebec, Canada

Definition: June 2010

Implementation (expected): Fall 2019

The JSS project is achieving project objectives, notably:

• Under the National Shipbuilding Strategy (NSS) announcement on 19　October 2011, SeaSpan’s 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 is to select the key equipment suppliers and obtain the necessary vendor furnished information to complete the ship design;
• The Design and Production Engineering (D&PE) Contract was awarded to the shipyard and work against the first task, Functional Design, is underway; and
• A Request for Information was published to industry to acquire a raft/pontoon solution to transport materiel from the Joint Support Ship at sea to the shore.

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: Challenges in achieving multiple approvals and contract/task awards have delayed planned construction and delivery dates for these ships as they relate to the August 2016 approval. Further delays may occur depending on the progress of the other NSS projects preceding JSS at the same shipyard.

Work Plan: In the Fiscal Year 2018-19, the JSS project will achieve the following: The JSS design will progress towards achieving an acceptable production design to enable the start of construction. With approved increased authorities being pursued to enable the procurement of long lead items as early as Spring 2018, it is expected that procurement of long lead items will commence by Summer 2018, to ensure materiel availability to start construction. Current discussions underway between Canada and the shipyard could also result in schedule compression opportunities being exploited, including the potential to commence the early construction of some JSS components.

The objective of the Light Armoured Vehicle (LAV) III upgrade project is to upgrade a significant portion of the LAV III fleet. The LAV III upgrade project will capitalize on existing and evolving technology to provide a highly protected, yet highly mobile Light Armoured Vehicle capability which will protect the soldiers and equipment of the CAF in current and future operations.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Land Equipment Acquisition.

The LAV III upgrade project has the following project outcomes:

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

This capability is being delivered to the Canadian Army.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. 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.

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

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

N/A

Implementation: October 2011

Closeout (expected): 2021

The LAV III upgrade project is achieving project objectives, notably:

• Initial Operational Capability (IOC) occurred in June 2014;
• As of 1 July 2016, the Commander of the Canadian Army accepted the upgraded LAV III as the Canadian Army deployable LAV fleet. Exercise "Maple Resolve 16", held in Wainwright in May 2016 successfully tested more than 110 upgraded LAV III; and
• A total of 437 of 550 vehicles have been delivered as of December 2017.

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 2018-19, the LAV III Upgrade project will achieve the following:

• Delivery of the remaining upgraded vehicles will continue as planned;
• Tracking and correction of known deficiencies; and
• Acquisition of additional Protection Kit spares.

The objective of the Lightweight Towed Howitzer (LWTH) project is to acquire 25 M777 155mm lightweight towed howitzers, to augment the 12 M777 howitzers already in service. The project will also institutionalize capability enhancements in terms of the lethality, range, precision, mobility and digitization, which will support the missions and tasks likely to be assigned to the CAF.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Land Equipment Acquisition.

The LWTH project has the following project outcomes:

• Acquire 25 new M777 155mm Lightweight Towed Howitzers;
• Acquire up to 34 Digital Gun Management Systems (DGMS);
• Acquire 37 Medium Support Vehicle System (MSVS) Standard Military Pattern (SMP) trucks;
• Acquire training and operation stock ammunition (modular propellant and precision ammunition);
• Acquire Ancillary equipment (e.g. radio, generator, fuse setter);
• Acquire associated Integrated Logistics Support; and
• Deliver associated Infrastructure.

This capability is being delivered to the Canadian Army.

Canada’s Industrial Regional Benefits (IRB) Policy applies to this project. 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.

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

BAE Systems - Barrow-in-Furness, Cumbria, UK

Leonardo - Edinburgh, UK

Implementation: October 2012

Effective Project Closeout (expected): March 2018

The LWTH project is achieving project objectives, notably:

• Deliveries of the M777 howitzers were completed in the summer of 2011;
• IOC was achieved in October 2011;
• Delivery of ammunition components such as propellant, projectiles and fuses;
• Integrated logistic support within the users’ community as well as with the Original Equipment Manufacturer and our allies;
• Infrastructure component of the project completed in the summer of 2016; and
• Precision Guidance Kit (PGK) ammunition integration trial completed in October 2016.

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 five years against the 2010 approved schedule, primarily as a result of technical challenges associated with the Course Correcting Fuse (CCF) Precision Guidance Kit (PGK) ammunition. 52% of CCF/PGK were delivered by November 2017 and final delivery is now scheduled in July 2018. PGK is the last remaining linkage to FOC.

Work Plan: In the Fiscal Year 2018-19, the LWTH project will achieve the following: LWTH will achieve EPC in March 2018 and Project Closeout will be achieved upon acceptance of the final equipment deliverables and completion of all remaining minor activities such as FMS Cases for batteries, ammunition and MSVS Gun tractors.

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

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Aerospace Equipment Acquisition.

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’s Industrial and Regional Benefits (IRB) Policy applies to this project. 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.

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

Sikorsky International Operations Incorporated - Stratford, Connecticut, USA

General Dynamics Mission Systems - Canada - Ottawa, Ontario, Canada

L-3 MAS - Mirabel, Quebec, Canada

Implementation: November 2004

Closeout (expected): 2022

The MHP is achieving project objectives, notably:

• As of 19 January 2018, a total of 15 CH-148 Cyclone helicopters have been delivered.
• Of the 15 Block 1 helicopters, seven have been returned to the contractor for retrofit and delivery in the Block 2 configuration.
• The eight helicopters at 12 Wing are being used for training and operational testing to enable achievement of Initial Operating Capability in 2018.

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

Cost: The MHP 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 Project Approval (Implementation) in June 2014. Implementation activities are ongoing.

Work Plan: In the Fiscal Year 2018-19, the MHP project will achieve the following:

• The Commander of the Royal Canadian Air Force to declare Initial Operational Capability;
• Delivery of the first eight Block 2 aircraft;
• Embark the first Cyclone on a Single Ship International Deployment; and
• Commence Cyclone operations out of 443 Squadron based in Patricia Bay, British Columbia.

Return of all Block 1 aircraft to Sikorsky for retrofit into the Block 2 configuration.

The objective of the Medium Support Vehicle System (MSVS) project is to acquire a new medium-weight truck capability that will replace the Medium Logistic Vehicle Wheeled (MLVW) fleet. The acquisition will provide the capability to transport troops, cargo, and equipment and to perform Unit level and combat services support functions.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Land Equipment Acquisition.

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 seven by the Land Forces Intelligence, Surveillance, Target Acquisition and Reconnaissance project, Family of UAVs sub-project (LF ISTAR FUAV)).
• Phase 3:
  • Modify 846 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 seven funded by LWTH);
  • Acquire 300 Load Handling System trailers; and
  • Acquire In-Service Support.
• Phase 5:
  • Deliver associated Infrastructure upgrades.

This capability is being delivered to the Canadian Army.

Canada’s Industrial and Regional Benefits (IRB) applies to Phase 1, Phase 2 and Phase 4 of this project. Canada will receive IRBs equivalent to 100% of the contracted value for both the acquisitions and In-Service Support. The IRB Policy does not apply to Phase 3, the "Shelter Kitting" contract.

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

N/A

Implementation: May 2015

Closeout (expected): 2020

The MSVS project is achieving project objectives, notably:

• Phase 1 – The MilCOTS trucks 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 contracts were awarded in June 2015 for acquisition and In-Service Support. Requirements verification program is ongoing.
• Phase 5 – Infrastructure work is in progress.

Scope: The project is on track to deliver its 2015 approved scope for Phase 4 and Phase 5.

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

Schedule: Mack Defense LLC requested the postponement of the SMP Truck deliveries 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 2018-19, the MSVS project will achieve the following: The closure of Phase 2 and 3 of the MSVS Project which are related to the delivery of the Baseline Shelters and their kitting. With the delivery of the SMP Trucks, it is planned to reach an initial operating capability including logistics support for the vehicles.

The objective of the Medium-to-Heavy Lift Helicopters (MHLH) project is to establish a new transport helicopter capability based in Petawawa, Ontario to support land-based domestic and international operations.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Aerospace Equipment Acquisition.

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

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

N/A

Implementation: June 2009

Closeout (expected): 2020

The MHLH project is achieving project objectives, notably:

• All 15 aircraft have been delivered on time with the final aircraft being delivered in June 2014;
• 450 Tactical Helicopter Squadron is operating from a brand new purpose-built facility located in Garrison Petawawa; 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 Closeout were delayed relative to the 2009 approved schedule. The new dates for Full Operational Capability and Closeout are summer 2018 and 2020 respectively. Delays to the original Full Operational Capability and Closeout dates were due to pilot production and Directional Infrared Countermeasures system integration and delivery.

Work Plan: In the Fiscal Year 2018-19, the MHLH project will achieve Full Operational Capability.

The objective of the Mercury Global (MG) project is to acquire assured access capabilities to around-the-world wideband satellite communications (SATCOM), which will provide the Canadian Armed Forces (CAF) with secure, reliable and high availability wideband communications.

This project is attributed to Departmental Results Framework Core Responsibility - Procurement of Capabilities / Defence Information Technology Systems Acquisition, Design and Delivery.

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; and
• Phase 3 – Acquire deployable terminals for strategic use to operate specifically with the WGS constellation.

This capability is being delivered to the Canadian Armed Forces.

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 (PSPC) 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 Industrial and Technological Benefits (ITBs) equivalent to 100% of the contracted value for both the capital acquisition and the In-Service Support as part of the Defence Procurement Strategy (DPS).

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

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

Satellite Manufacturer - Boeing, St. Louis, Missouri, USA

Implementation: October 2014

Closeout (expected): September 2019

The MG project is achieving project objectives, notably:

• Phase 1 – Definition
  • Preliminary Project Approval was attained in October 2011; and
  • The Wideband Global SATCOM (WGS) MOU was signed in January 2012.
• Phase 2 – Implementation
  • 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, installation and integration at all 3 MG Anchor Segment sites are substantially complete. WGS certification is in progress and acceptance testing is set to begin in March 2018.
• Phase 3 – Implementation
  • An RFP for 67 Strategic Deployable Terminals (SDTs) closed on 31 January 2017;
  • TB approval for Expenditure Authority was achieved 10 January 2018; and
  • Contract Award for the Terminal segment, i.e. 67 SDTs, is anticipated by 31 January 2018.
• 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 and 2018 Treasury Board (TB) approved scope. In addition, WGS satellites eight (8) and nine (9) have completed the Wideband Digital Channelizer upgrade, which will almost double their current bandwidth. This satellite modification was undertaken by the U.S. Department of Defense; International Partners will not share the cost, in part or in total, for this upgrade. These satellites have been launched and are currently operational.

Cost: The project is currently within the 2014 and 2018 TB approved budgets.

Schedule: The project has experienced a delay against the 2014 approved schedule. The schedule has been re-baselined in the approved 2018 TB submission.

Work Plan: In the Fiscal Year 2018-19, the MG project will achieve the following: Delivery of the 67 SDTs are expected in FY 2018-19. The SDT contract also includes Initial Cadre Training for operators and maintainers. Transition to In-Service Support (ISS) will take place as the terminals are delivered, the contractor is mandated for 15 years of ISS for the SDTs under the same contract. For the MG Anchor Segment, WGS Type Certification is planned to be achieved by November 2018 allowing all Anchor Stations across the different sites to be certified. The Central, Eastern and Western sites are planned to be accepted by January 2019. Developing the Network Management System which will control all Anchor Stations is ongoing.

The objective of the Protected Military Satellite Communications (PMSC) project is to acquire guaranteed access to an Advanced Extremely High Frequency (AEHF) Military Satellite Communications System, which will provide the capability for near-worldwide (65⁰N-65⁰S) assured, secure, jam-resistant communications 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.

This project is attributed to Departmental Results Framework Core Responsibility - Procurement of Capabilities / Defence Information Technology Systems Acquisition, Design and Delivery.

The PMSC project has the following project outcomes:

• Phase 1 – Definition (Complete)
  • Procure access to the United States (US) Department of Defense (DoD) AEHF Military Satellite Communications System via an MOU signed in November 1999.
• Phase 2 – Implementation
  • Acquire AEHF satellite terminals in multiple variants: naval, land transportable, and deployable;
  • Install AEHF satellite terminals, where necessary; and
  • Deliver associated Infrastructure.

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

The US Department of Defence (DoD) committed to a work share with Canadian Industry under the completed Phase 1 portion. Canada’s Industrial and Benefits (IRB) Policy was applied to Phase 2 of this project and an IRB agreement was negotiated with Raytheon. Canada will receive IRBs equivalent to 100% of the contracted value.

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

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

Raytheon - Waltham, Massachusetts, USA

Implementation: November 2003

Effective Project Closeout (expected): September 2026

The PMSC project is achieving project objectives, notably:

• Phase 1 – Definition (Complete)
  • Preliminary Project Approval (PPA) was provided in August 1999; and
  • System access was procured via a Military Satellite Communications Memorandum of Understanding (MOU) with the US DoD for development and fielding, signed in November 1999.
• Phase 2 – Implementation
  • Project Approval (Implementation) was received in November 2003;
  • A Military Satellite Communications MOU with the US DoD for operations and support was signed in November 2009;
  • Foreign Military Sales (FMS) cases were established starting in March 2006 for procurements of terminal equipment; and
  • The PMSC Initial Operational Capability was achieved 12 November 2013.

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

Cost: The project is currently within the 2003 approved budget. Risk mitigation strategies have been identified to minimize future costs due to installations that exceeded budgeted estimates. These strategies have included, awarding installation activities to the supplier with the lowest overall cost structure, and the feasibility of proceeding with firm-fixed price contracts has been explored and implemented.

Schedule: Installation of the PMSC system on the Canadian Patrol Frigates (CPF) is progressing well with 11 of the 12 ships completed. The remaining ship is scheduled for completion in March 2018.

Due to slippages in the US DoD overall satellite launch schedule and Victoria Class Submarine (VCS) installations, the PMSC System Full Operational Capability, has moved to Juen 2026 from the original (2003 approved) expected date of November 2017.

Work Plan: Project scope is largely delivered and transitioned to the responsible in-service organization. In the Fiscal Year 2018-19, the PMSC project will achieve the following: Delivery of an FMS sustainment case contract in support of the Naval Multiband Terminal) control groups and antennas, support DGMEPM/DMEPM (Submarines) installation of PMSC on HMCS CORNERBROOK during her current Extended Docking Work Period (EDWP), and transition leadership of the International Partner AEHF Working Group (IPAWG) and Operations and Sustainment MOU to the in-service technical authority.

The objective of the Remotely Piloted Aircraft System project (RPAS) is to provide a capability to conduct Joint Intelligence, Surveillance and Reconnaissance (ISR) and precision strikes operations in a networked, system-of-systems environment that will enable the flow of information among multiple, interconnected platforms and operational headquarters.

This project is attributed to the Strong, Secure, Engaged defence policy document.

The RPAS project has the following project outcome:

• Deliver a mature long range, long endurance Remotely Piloted Aircraft System capability that meets the objectives of the Canadian Armed Forces (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.

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

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

To be determined (TBD)

TBD

Option Analysis: 24 September 2015

RPAS is in the Options Analysis phase.

The Industry responses to a Request for Information (RFI) in 2016 were used to develop the Business Case Analysis (BCA) options. The BCA was endorsed by Defence Capability Board on 27 October 2017. At the Senior Review Board of 20 September 2017, project Joint Unmanned Surveillance and Target Acquisition System was renamed to the Remotely Piloted Aircraft System.

In the Fiscal Year 2018-19, the RPAS project will continue to develop options.

The objective of the Submarine Capability Life Extension (SCLE) project is to acquire a submarine capability to replace the Oberon class submarine fleet. The acquisition 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.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Maritime Equipment Acquisition.

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.

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

The Government of the United Kingdom, (UK) of Great Britain and Northern Ireland, Ministry of Defence, UK

British Aerospace Engineering (BAE) Marine Systems (formerly Vickers Shipbuilding and Engineering Limited (VSEL)/Marconi Marine), Cumbria, UK

Implementation: June 1998

Closeout (expected): 2019

The SCLE project is achieving project objectives, notably:

• 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 2019.

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: Due to the requirement to complete the installation and testing of two Engineering Change (EC) projects in HMCS Corner Brook, Project Closeout is dependent upon finishing the ongoing Extended Docking Work Period (EDWP) in early 2020, 1 year later than previously planned.

Work Plan: In the Fiscal Year 2018-19, the SCLE project will progress with the remaining EC projects (Mark 48 torpedo and Self Noise Monitoring System), as well as finalize material purchases in preparation for Project Closeout.

The objective of the Tactical Armoured Patrol Vehicle (TAPV) project is to deliver a wheeled combat vehicle, which has a high degree of tactical mobility and crew survivability, to the Canadian Army that will fulfill a variety of roles on the battlefield, including but not limited to reconnaissance and surveillance, security, command and control, and cargo and armoured transport of personnel and equipment.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Land Equipment Acquisition.

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.

Canada’s Industrial and Regional Benefits (IRB) Policy applies to the acquisition and support contracts, with requirements for IRB equal to 100% of the contract value.

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

Textron Systems Canada Incorporated - Ottawa, Ontario, Canada

Textron Marine and Land Systems - Louisiana, USA

Kongsberg Protech Systems Canada - London, Ontario, Canada

Rheinmetall Canada - Ottawa, Ontario, Canada

Engineering Office Deisenroth Canada - Ottawa, Ontario, Canada

Implementation: June 2012

Closeout (expected): 2020

The TAPV project is achieving project objectives, notably:

• 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;
• Qualification of the design, which included a rigorous test program, was completed in 2016;
• Initial vehicle delivery was achieved in August 2016. As of December 2017, 389 vehicles have been delivered;
• In May 2017, TAPVs were effectively used to respond to flooding in Quebec as part of Operation LENTUS; and
• Initial Operational Capability achieved in August 2017.

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

Cost: The project is within its 2012 approved expenditure authority.

Schedule: 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 was successful, and other qualification activities were completed by June 2016.

Work Plan: In the Fiscal Year 2018-19, the TAPV project will achieve the following:

• complete delivery of remaining vehicles
• complete constructions of new infrastructure
• achieve Full Operational Capability, and Effective Project Completion

The objective of the Tank Replacement Project (TRP) is to acquire a Leopard 2 Main Battle Tank (MBT) capability to replace the Leopard 1 MBT fleet. The acquisition will provide the CAF with a modern, heavily protected, mobile, direct fire support capability. The TRP is divided into two phases.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Land Equipment Acquisition.

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).

Canada’s Industrial and Regional Benefits (IRB) Policy applies to solely Phase Two of this project. Canada will receive IRBs equivalent to 100% of the contracted value for both the acquisitions and In-Service Support.

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

N/A

Implementation: June 2009

Closeout (expected): December 2017

The TRP is achieving project objectives, notably:

• 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;
• A4M Upgrade is complete for all 20 vehicles; and
• A6M Driver Viewing Enhancement (DVE) upgrade is progressing with 19 of 20 completed.

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 Project Approval (Implementation). The Senior Review Board (SRB) at its meeting in February 2017 approved the use of Effective Project Closeout in December 2017 with formal Project Closeout in December 2018 in order to receive final delivery for Integrated Logistics Support requirements.

Work Plan: In the Fiscal Year 2018-19, the TRP project will achieve the following: project Closeout will be achieved upon completion of the last A6M DVE upgrade, other minor System Engineering changes and delivery of Integrated Logistics Support spares and technical publications.

The objective of the Underwater Warfare Suite Upgrade (UWSU) project is to upgrade the underwater warfare sensor suite currently installed in the Halifax Class frigates. The work will address deficiencies, improve ship underwater sensor performance in the challenging littoral environment and provide a system design to enable continual improvement in a cost-effective manner.

This project is attributed to the Departmental Results Framework Core Responsibility - Procurement of Capabilities / Maritime Equipment Acquisition.

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.

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

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

To be determined (TBD)

N/A

Definition: May 2015

Implementation (expected) April 2018

The UWSU project is achieving project objectives, notably:

• Initial Price and Availability request released to industry in July 2012;
• Draft Request for Proposal (RFP) released in July 2016;
• Official RFP release in April 2017;
• Bid Evaluation completed in November 2017; and
• Scope and budget decisions and preparations for implementation approval in early 2018.

Scope: The project is on track to deliver the May 2015 approved scope. The final scope options for ships six through twelve, if all equipment upgrades are not permanently fitted on all ships, will be indicated as part of the implementation approval submission.

Cost: The project is currently within the definition phase authorized budget, based on May 2015 approval. Substantive cost for the implementation phase will be indicated within the implementation approval submission.

Schedule: Milestone dates reflect substantive schedule estimates incorporating the impact of delays for definition and implementation approvals, plus also for installations within the Halifax-Class docking work period program. Milestone dates would be extended if more than a minimum of six full-up ship set installations are required.

Work Plan: In the Fiscal Year 2018-19, the UWSU project will achieve the following:

• Implementation Approval - June 2018;
• Contract Award - July 2018; and
• System Requirements Review - September 2018.