House Committee on Public Accounts (PACP): Office of the Auditor General: Report 2, Delivering Canada's Future Fighter Jet Capability, October 7, 2025

Delivering Canada's Future Fighter Jet Capability

• The timeframe for the audit was January 1, 2023, to September 30, 2024, with some additions preceding and following this period (up to June 2025).
• The report includes four recommendations centred on improving project planning, risk management, costing and transparency for the F-35 procurement.
• National Defence has agreed to all four recommendations and is implementing the necessary changes in advance of the Fall 2025 deadline.
• National Defence remains on track to meet the commitments outlined in the Management Action Plan.

• According to the Office of the Auditor General (OAG): "This audit focused on whether National Defence developed plans to introduce the CF-35A fighter aircraft into service and achieved progress on these plans so that fighter capability would be delivered on time and on budget to meet the government's operational commitments to NORAD and NATO and to asserting Canadian sovereignty."
• The report expresses four broad concerns regarding the introduction of the F-35, noting that:
  • delays and significant risks could jeopardize the timely introduction of the F-35;
  • risk management practices need improvement;
  • the project's cost estimate has increased significantly since 2022, and does not account for all aspects of the project; and,
  • the scope of the project, as originally defined, was not sufficient on its own to make the F-35 fleet fully operational.

The report provides the following recommendations:

• National Defence should finalize its identification and assessment of risks that the Future Fighter Capability Project could face, develop clear and specific risk mitigations, and measure the effectiveness of mitigation actions.
• National Defence should take immediate action to complete all plans and schedules for the project to bring the F-35 aircraft into service and implement them in a timely manner.
• National Defence should review on at least an annual basis the Future Fighter Capability Project cost estimates and adjust them as needed to have timely and accurate information for decision-making.
• When reporting publicly on the established cost of bringing the aircraft into service, National Defence should include all needed elements required for achieving full operational capability of the F-35A aircraft.

Previous Auditor General Reports on Fighter Jets

• 2012 Spring Report: Chapter 2 – Replacing Canada's Fighter Jets
  • Examined whether the government exercised due diligence in managing Canada's participation in the Joint Strike Fighter Program, established to design, develop and manufacture the F-35 Lightning II aircraft.
  • The audit also looked at the federal decision-making process to acquire the F-35 as a replacement for the CF-18.
• 2018 Fall Reports of the Auditor General: Report 3—Canada's Fighter Force
  • This audit focused on whether National Defence managed risks related to Canada's fighter aircraft fleet so that it could meet Canada's commitments to NORAD and NATO until a replacement fleet is operational.

Budget: $27.7 billion

• The acquisition budget includes 88 F-35A jets, associated equipment, sustainment set-up and services, and the construction of Fighter Squadron Facilities.

Timeline: Initial 16 Aircraft

• The initial eight aircraft will be delivered in 2026-2027 to Luke Air Force Base, Arizona, for the training of Canadian pilots.
• First Aircraft Arrival in Canada: 2028 to Canadian Forces Base (CFB) Cold Lake
• Initial Operational Capability: 2029
• Full Operational Capability: 2033

CF-18 Hornets

• The CF-18 Hornet fighter fleet will meet Canadian Armed Forces' operational requirements to the North American Aerospace Command (NORAD) and the North Atlantic Treaty Organization (NATO) until the scheduled retirement of the fleet in 2032.

F-35 Procurement Review

• On March 14, 2025, Prime Minister Mark Carney announced a review of the F-35 acquisition, including whether it remains the best choice for Canada.
• The review is expected to focus on operational needs, industrial benefits, strategic partnerships, and potential alternatives in light of current domestic and global realities.
• The review draws on expert input, independent advice, and prior analysis to support a timely, objective, and well-informed decision.

F-35 Acquisition

• Canada's current fighter fleet, the CF-18 Hornet, has already begun its retirement and will be entirely removed from service by 2032.
• This means that the replacement capability must be in place and fully operational by 2032 to avoid a critical capability gap.
• The planned F-35 acquisition delivery schedule has been coordinated with the phased retirement of the CF-18 to minimize operational impacts during the transition.

CF-18 Fleet and Committee Reporting:

• National Defence has reported annually in June to the Standing Committee on Public Accounts on the Hornet Extension Project, following the 2018 Auditor General report on Canada's Fighter Force.
• The 2018 Auditor General report recommended that National Defence analyze the upgrades required for the CF-18 to remain operationally relevant until the arrival of a next generation fighter fleet and seek approval for those which are appropriate and achievable.

Joint Strike Fighter Program (JSF) and Production, Sustainment and Follow-on Development (PSFD) Memorandum of Understanding (MOU)

• The JSF Program is a multinational cooperative effort to build an advanced combat aircraft equipped to fulfill multiple roles.
• The F-35 was conceived, developed, and continues to be operated and sustained as a joint/coalition platform, built on strong partnerships with the U.S., allies and partner nations across the globe.
• The program operates under well-established agreements that include maximizing commonality to achieve affordability and coalition interoperability; implementing a global sustainment system to deliver continuous cost and performance improvements; and promoting industrial involvement for participants.
• Canada has been an active participant in the JSF Program since it began, and in 2006 became a partner in the PSFD MOU, which expires in December 2051.
• Eight partner countries cooperate under the JSF PSFD MOU: Australia, Canada, Denmark, Italy, Netherlands, Norway, United Kingdom, and the United States.
• Currently, there are 12 countries purchasing the F-35 through the United States Foreign Military Sales Program: Belgium, Finland, Germany, Israel, Japan, South Korea, Poland, Singapore, Switzerland, Czechia, Greece, and Romania.

Economic Benefits

• As a partner in the F-35 program, Canada has access to industrial participation in production of the aircraft.
• To date, over 110 Canadian companies have contributed to the production and development of the F-35.
• Currently, over 36 Canadian companies have F-35 contracts, including Magellan Aerospace in Manitoba (horizontal tail assembly), GasTops in Ontario (engine sensors), and Heroux-Devtek in Quebec (landing gear components).
• Each F-35 aircraft coming out of the production line contains approximately $3.6 million dollars of Canadian-made components.
• The acquisition and initial sustainment of the F-35 project has the potential to contribute over $425 million annually to Canada's gross domestic product and maintain 3,300 jobs annually for Canadian industry and value chain partners (direct and indirect).
• The procurement is expected to generate additional opportunities for Canadian industry to integrate into the global supply chain, which will support a fleet of over 3000 aircrafts worldwide.
• In November 2024, the Government of Canada announced that L3Harris MAS of Mirabel, Quebec, was identified as its strategic partner to work with Canada and the F-35 Joint Program Office to investigate requirements for an F-35 air vehicle maintenance, repair, overhaul, and upgrade facility, also known as an air vehicle depot.

• On March 24, 2023, the Government of Canada announced the Defence of Canada Infrastructure Project (DCFI).
• Through the DCFI project, National Defence will invest $7.3 billion to modernize, recapitalize, and build new infrastructure to support the arrival of the F-35 fighter jets and bolster Canada's ability to project air power in defence of North American for the coming decades.
• Over its duration, the DCFI project will deliver 33 elements. Each element is an individual piece of infrastructure or upgrade which is grouped into four main categories:
  • operations;
  • logistics;
  • personnel support infrastructure; and
  • enabling infrastructure work.
• The DCFI project will upgrade airfields, electrical and IM/IT systems, and build hangarettes (version of a standard aircraft hangar, typically designed to house one or a few smaller aircraft), Quick Reaction Alert facilities, maintenance facilities, storage warehouses, accommodations, and training facilities to support operations, personnel, and logistics.
• While the DCFI is largely centred on enhancing infrastructure in Cold Lake and Bagotville, it also includes investments in other Wings and Northern locations.
• The DCFI project is scheduled for Initial Operational Capability in 2029, with Full Operational Capability scheduled by 2032.

• Concept work for the Future Fighter Capability Project (FFCP) found that the current infrastructure layout and design at Canada's two main airbases, Cold Lake and Bagotville, is outdated and retains design elements from the 1950s.
• These facilities are no longer fit-for-purpose and require extensive upgrades to accommodate the future fighter aircraft.
• In response to both legacy infrastructure issues and new infrastructure requirements for a future fighter capability, National Defence established the DCFI project as a distinct endeavour from the FFCP acquisition.
• DCFI relies on FFCP for information and input related to the aircraft to develop compatible and purpose-built fighter infrastructure / facilities.
• A majority of the infrastructure investments under the DCFI project will occur at the main fighter operating bases in 4 Wing Cold Lake and 3 Wing Bagotville, but investments will also be made to support fighter operations and deployment across Canada, including at the following Wings and northern locations:
  • 19 Wing Comox
  • 1 Canadian Air Division Headquarters Winnipeg
  • 17 Wing Winnipeg
  • 8 Wing Trenton
  • 22 Wing North Bay
  • 14 Wing Greenwood
  • 5 Wing Goose Bay
  • Forward Operating Location Yellowknife
  • Forward Operating Location Inuvik
  • Forward Operating Location Iqaluit

Auditor General Audit on Delivering Canada's Future Fighter Jet Capability

• The Auditor General reported delays in building key infrastructure to support the new aircraft, noting that new fighter squadrons are three years behind schedule.
• The Auditor General was critical of the added costs of the interim solution to build temporary aircraft shelters and modify or improve existing facilities until the permanent infrastructure is ready for operation.
• The Auditor General further highlighted concerns that the full infrastructure required to support the F-35 fleet not included in the FFCP.

Current Staffing Levels

• Fill rate is 66% for fighter pilots (up 2% from June 2024)
• Fill rate is 85% for air maintenance personnel (up 2% from June 2024)

Retention

• The new pay scale compensates pilots based on their experience and qualifications.
• As an example, a pilot at the top of the Captain-rank pay scale can now earn 40% more than they could previously.

Training

• Initial pilot training takes place in Portage La Prairie, MB and Moose Jaw, SK.
• In fiscal year 2024/2025, the RCAF trained 31% more pilots then the previous year
• In the same year, the RCAF trained 8.5% more technicians then the previous year

Examples of Recruitment and Training Initiatives for Pilots and Technicians

• The RCAF Intake and Liaison Team (AFILT) supports the enrolment of members with previous military experience. In Fiscal Year 2024/2025, AFILT facilitated the enrolment of 58 fully qualified members into the Air Force.
• The Non-Commissioned Member Subsidized Training and Education Plan (NCM-STEP), offers paid education opportunities in partnership with 14 aviation colleges across Canada.
  • The RCAF enrolled 58 members through NCM-STEP last fiscal year and an additional 31 members through the Semi-Skilled and Skilled Entry Plans.
• The Future Aircrew Training (FAcT) program, which will provide new aircraft, simulators, and training approaches to modernize pilot training. See Tab 08 for FAcT.

Auditor General Reports

• In fall 2018, the Auditor General of Canada (AG) published Report 3 – Canada's Fighter Force.
  • In the report, the AG noted that "the Royal Canadian Air Force faced a growing shortage of trained and experienced pilots and technicians".
  • Recommendation 1 stated that: "National Defence should develop and implement recruitment and retention strategies for fighter force technicians and pilots that are designed to meet operational requirements and prepare for the transition to the replacement fleet".
  • National Defence has reported annually, by June 30th, to the Standing Committee on Public Accounts (PACP) on this recommendation since 2019.
  • The Committee was re-constituted and have continued with previous business, including requesting regular updates on previous studies, including for June 30, 2025.
• On June 10, 2025, the AG published Report 2 – Delivering Canada's Future Fighter Jet Capability.
  • While none of the AG's recommendations address pilot and technician staffing directly, the audit does highlight insufficient staffing levels as a significant risk to the timeline for the F-35 to reach Full Operational Capability.

• The strategic partner model is an innovative approach to defence procurement that streamlines processes and accelerates timelines in partnering with industry.
• The identification of CAE as a strategic partner will help ensure that Canada maintains world-leading, domestic capacity in flight training and simulation.
• It is anticipated that the program will contribute $145 million annually to Canada's gross domestic product and create or maintain 1,100 jobs annually across Canada, primarily in Alberta, Ontario and Quebec, over a 37-year period.
• Project Budget: approximately $5 billion in acquisition from now until 2035 and an additional $10 billion over the following 20 years of steady state operations.
• Project Timelines:
  • Requirements Development Contract Award – Fall 2026
  • Execution Contract Award – 2029-30
  • Initial Program Capability – 2031-32
  • Full Program Capability – 2034

• For almost 25 years, Canada operated the NATO Flying Training Centre at 15 Wing Moose Jaw and 4 Wing Cold Lake, training Canadian and allied pilots to become fighter pilots.
• In March 2024, the program came to an end when the CT-155 Hawk trainer aircraft were retired from service to begin the required transition to training solutions needed for the future fighter.
• Until the FFLIT program is operational, Canada will partner with allies to receive training.

• On May 28, 2024, a 25-year contract valued at $11.2 billion was awarded to SkyAlyne Canada Limited Partnership – a joint venture consisting of CAE Inc. and KF Aerospace.

Economic Benefits:

• This significant investment is expected to directly support the growth of Canada's defence sector by creating and sustaining up to 3,400 jobs.

Aircraft:

• Through FAcT, Canada will acquire 71 training aircraft, parsed-out into five fleets:
• CT-102B Astra II (Grob G 120TP): a two-seat turboprop basic flying training and aerobatic aircraft.
• CT-157 Siskin II (Pilatus PC-21): a tandem-seat turboprop advanced flying training aircraft (jet).
• CT-145E Expeditor II (Beechcraft King Air 260): a twin-turboprop aircraft for advanced flying training (multi-engine).
• CT-153 Juno (Airbus Helicopters H-135): a twin-engine light utility helicopter for advanced flying training (rotary-wing).
• CT-142Q Citadel (De Havilland Dash 8-400): a turboprop aircraft to train Air Combat Systems Officers and Airborne Electronic Sensor Operators.

• The Digital Services Group (DSG) is collaborating closely with Shared Services Canada (SSC) to ensure National Defence's infrastructure is supported through the Network Modernization Project.
• SSC is mandated to provide government institutions with secure and reliable IT services and tools, including to the Department of National Defence (DND).
• SSC is increasing support to DND to advance digital modernization objectives, and to respond to the Government of Canada priority to reinvest in the Canadian Armed Forces (CAF).
• Cooperation between National Defence and the Communications Security Establishment Canada (CSE) ensures the best use of tools and capabilities, reduces unnecessary duplication of efforts, leverages each other's authorities, and improves the chances of meeting mission objectives.

• On September 17, 2025, an article was published in the Globe and Mail describing a presentation given by a Royal Canadian Air Force (RCAF) member at a digital technology conference organized by the Canadian Global Affairs Institute.
• This presentation included critical comments concerning lengthy approval processes, procurement delays, and review mechanisms that extended timelines and put the RCAF at perceived potential operational disadvantages.
• The member leads the RCAF Digital Hub (RDH), which works with private-sector partners to roll out a range of cloud-based applications and replace long-outdated methods. This includes the hub's Dispatch tool which helps the RCAF track and organize its missions.
• The RCAF aims to accelerate digital modernization through the collaboration of multidisciplinary teams, enabling the optimization of RCAF systems and empowering RCAF personnel to excel in the modern battle space.

• On June 9, 2025, the Prime Minister and Minister of National Defence announced Canada's plan to rebuild, rearm, and reinvest in the Canadian Armed Forces (CAF). The investment for 2025-26 will be over $9 billion and focused on six broad categories, as reflected in Supplementary Estimates (A):
  • Recruitment, retention and support programs for the CAF ($2.1 billion);
  • Defence research and development and support for the Canadian defence industry ($2 billion);
  • Military aid to Ukraine and to expand defence partnerships ($2 billion);
  • Support for strategic military capabilities ($1 billion);
  • New and existing CAF equipment and infrastructure ($834 million); and
  • Digital tools and capabilities ($180 million)
• The remainder of the $9 billion will be accessed through Supplementary Estimates B and C.
• While the majority of the investment will be allocated to National Defence, some funding will be allocated to partner departments and agencies ($401 million), most notably $370 million for the Communications Security Establishment.

Estimates 2025-26

• In Main Estimates 2025-26, National Defence was allocated $35.7 billion, an increase of $5.1 billion (or 16.6%) over last year's Main Estimates
• In Supplementary Estimates (A) 2025-26, a further $8.7 billion was obtained to bring the National Defence annual budget to $44.3 billion.

Supplementary Estimates (A)

Defence Spending

• 2025-26: Canada's defence spending is projected to reach 2.01% of its Gross Domestic Product (GDP), with 22.6% devoted to major equipment, up from 1.47% of GDP and 18.3% on major equipment in fiscal year 2024-25.

North Atlantic Treaty Organization (NATO) Common Funded Budget

• In addition to investing in their own armed forces, all NATO Allies contribute directly to NATO's budget based on an agreed cost-share formula derived from Gross National Income. Canada is the 6th largest contributor to NATO's common funded budget.

• On June 25, 2025, Canada and its NATO Allies agreed to a new Defence Investment Pledge of investing 5% of annual GDP by 2035.
• As part of this 5% pledge, Canada will invest 3.5% of GDP for core military capabilities, expanding on the June 9, 2025, announcement.
• This includes strengthening the foundation of National Defence, through investments in our people, capabilities, infrastructure, and digital capabilities.
• An additional 1.5% of GDP will be dedicated to investments in critical defence and security-related expenditure, that will – among other things – protect our critical infrastructure, defend our networks, unleash innovation, and strengthen our defence industrial base.

Our North, Strong and Free (ONSAF)

• Measures to increase and accelerate defence investment will complement Canada's Defence Policy: ONSAF.
• Announced on April 8, 2024, ONSAF features six major themes:
  • Supporting our people;
  • Strengthening our foundations;
  • Building an innovative industrial base;
  • Defending Canada;
  • Defending the Arctic and North America; and
  • Defending Canada's global interests and values.
• Further, ONSAF included investments of:
  • $8.1 billion over five years (fiscal year 2024-25 to 2028-29); and
  • $73 billion over twenty years (fiscal year 2024-25 to 2043-44).

Parliamentary Budget Officer (PBO) Analysis

• The PBO published a report on October 30, 2024, entitled The Fiscal Implications of Meeting the NATO Military Spending Target in follow-up to its update in July 2024.
  • The report stated that additional spending would be required to meet the NATO 2% commitment but concluded that such expenditures are possible without unduly impacting Canada's deficit-to-GDP ratio.
  • However, it reiterated a position that the PBO took in summer 2024, that ONSAF underestimates GDP growth and that, as a result, Canada's defence budget would have to rise significantly to meet the NATO 2% target.
  • The PBO labelled the ONSAF GDP forecast as "erroneous" as it assumed a nominal GDP growth rate of 1.7%, which "does not even keep pace with inflation and therefore assumes a 4-year economic recession, almost twice the length of the country's longest recession in the last 40 years".
• The PBO relies on its own methodology for calculating GDP, which it says is broadly similar to the Department of Finance's methodology.
• National Defence uses Canadian GDP figures provided by NATO, which use several data sources, including the Organization for Economic Co-operation and Development (OECD), and is a standard practice for NATO Allies.
• While the timeline has accelerated for Canada to reach 2%, the PBO's criticism of National Defence spending projections is likely to endure as long as methodological differences persist.
• The PBO is preparing an updated report on Canada's defence spending, which is expected to be released in fall 2025.

• The authorized Target Strength of the Canadian Armed Forces (CAF) Regular Force is 71,500, and that of the Primary Reserve Force is 30,000.
  • As of August 31, 2025, the current Force Strength is approximately 65,400 Regular Force and 24,100 (Average Paid Strength) Primary Reserve Force members. This is approximately 12,000 short of the authorized strength.
• Between April 1, 2025, and August 31, 2025, the CAF received approximately 52,900 applicants.
  • Canadian citizens represent more than 68% (approximately 35,900) of the total applicant pool.
  • Permanent Residents represent more than 32% (approximately 17,000) of the pool.
• In FY 2025-2026 (as of August 31, 2025), approximately 4,400 individuals joined the Regular Force and Primary Reserve, 19.8% of whom were women.
  • 2024-2025 intake: approximately 11,500 individuals.
  • 2023-2024 intake: approximately 8,100 individuals.

Cost-of-Living Supports – Salary Increases

• On August 8, 2025, the Prime Minister and the Minister of National Defence announced the following updates to CAF compensation measures:
• Pay adjustment (retroactive to April 1, 2025)
  • This significant, pensionable adjustment is a result of the modernization of the Military Factor, a percentage added to the base salaries of CAF members.
  • The adjustment is expected to be in place by late fall 2025.
• Military Service Pay (retroactive to April 1, 2025)
  • A new annual, pensionable compensation measure will be implemented, paid as a lump sum, based on years of service, for both Regular Force and Reserve Force members.
  • Details (Years of Service: Compensation based on Regular Force/Reserve Force):
    • 5-10 years: $2,000/$400
    • 11-15 years: $3,500/$700
    • 16-20 years: $5,000/$1,000
    • 21+ years: $6,000/$1,200
• Further details on other pay-related measures are included in the background.

Cost-of-Living Supports – Childcare

• Budget 2024 announced a total investment of $100 million over five years to enhance access to childcare services for CAF families.
• This is in recognition of military service which requires frequent moves and deployments making it more difficult for military members and their families to find and maintain childcare. While a small number of childcare spots are available through Military Family Resource Centres at 25 of 27 bases and wings, the vast number of CAF families must compete for childcare spots in the local civilian community where they live.
• In March 2025, the Government announced it had reached agreements with 11 of 13 provinces and territories to extend their current early learning and childcare agreements until March 31, 2031. The extended agreements provide up to an additional $36.8 billion over five years (2026–27 to 2030–31) and include a 3% funding increase annually for four years, starting in 2027-2028.
• In part, this funding will help improve childcare access for military families by working with not-for-profit childcare providers to expand near bases and creating opportunities for scholarships for interested CAF family members to train and certify as Early Childhood Educators, in addition to creating a network of childcare coordinators to help families quickly connect to local childcare resources.

Cost-of-Living Supports – Housing

• Budget 2024 announceda total investment of $1.4 billion to build 1,400 homes and renovate 2,500 existing units.
  • This investment is planned over the next 20 years to build and renovate housing on bases and wings across the country, so that our military families can find housing near to where they are posted on bases such as Esquimalt, Edmonton, Borden, Trenton, Kingston, Petawawa, Ottawa, Valcartier, Halifax, and Gagetown.
  • This includes a new accommodations facility at Canadian Forces Base Borden which provides to up 480 modern sleeping quarters, common lounge areas, study areas, laundry rooms, storage, and office spaces to the recruits who train on base.

Additional Compensation Measures

• Recruitment Allowance for Stressed Occupations - Effective April 1, 2026
  • Members will receive $10,000 upon completion of basic training, $20,000 once qualified in trade, and $20,000 upon completion of the first contract, when signing on for another period of service.
• Instructors' Allowance - Effective April 1, 2026
  • All members posted to a designated training school will receive $300/month. Instructors at Canadian Forces Leadership and Recruit School will receive an additional $35/day they instruct up to $12,000/year, while instructors at other establishments will receive an additional $20/day they instruct up to $8,400/year.
• Changes to Environmental Allowances - Effective April 1, 2026
  • The current monthly allowance, prorated for the number of years in the environment, will transition back to a daily flat rate of $100/day, and will be received when the member is actually at sea or in the field.
• Domestic Operations and Arctic Allowance - Effective April 1, 2026
  • In addition to any environmental allowances being received, members will receive $45/day when deployed on a named domestic operation (for example, Operation LENTUS), and an additional percentage of their land duty (50%) or sea duty (25%) allowance when deployed in the Arctic.
• Posting Frequency Mitigation Measures - Effective April 1, 2026
  • For Regular Force, the current allowance of a month's pay, or ½ month's pay for a single member or Imposed Restriction (IR) move (see below), will be replaced with $13,500 for each of the first three moves, $20,500 for moves 4-6, and $27,000 after that. This applies to single members as well, although those on IR will continue to receive half of the new allowance, given the other IR benefits being provided.
• Imposed Restriction Improvements - Effective first day of third month following approval for members on Imposed Restriction
  • The CAF will improve IR benefits. Specifically, a member will now receive a food allowance of $19.51/day, a transportation allowance of $350/month and an incidentals allowance of $200/month.

"This is For You" Augmented Reality Experience

• In June 2025, National Defence launched the "This is For You" Augmented Reality Experience which allows participants to:
  • take flight as part of an air crew delivering supplies to Canadian Forces Station Alert;
  • participate as a soldier providing assistance to Canadian citizens during a natural disaster; or
  • take action as a sailor on HMCS Harry DeWolf, whose crew finds a distressed research vessel.
• The goal of this ambitious project is to capture the imagination of Canadians, especially those who are between 18-34 years old and are potential recruits for the CAF.
• The development and launch of this AR experience is part of the ongoing "This is For You" recruitment campaign that also includes a national advertising campaign, including a series of video ads and new eye-catching decals on the windows of 23 Canadian Forces Recruiting Centres across the country.
• See tab 6 for more information on pilot recruitment and retention (including air technicians).

National Defence Real Property Portfolio Overview

• 2.2 million hectares of land
• 19,000 buildings, 20,000 works (electrical water), 5,500 kilometres of roads
• Average age of assets is 37 years old; 255 are more than 50 years old

Our North, Strong and Free (ONSAF)

• ONSAF commits to investing $10.2 billion over 20 years in current and new infrastructure to support the required tempo of training, operations and day-to-day military activities. These investments will range from asset maintenance and repair to other improvements to military facilities, such as piers and runways.

Examples of Major Recent Defence Infrastructure Projects

• Canadian Forces Base (CFB) Halifax: Continue design and construction of the $191 million Combatant Training and Integration Centre at CFB Halifax. Once complete, this facility will house cutting-edge training systems to train personnel for future River-class Destroyer operations.
• Defence Research and Development Canada (DRDC) Suffield: Initiating the design of the combined Modernize Chemical and Biological Facilities and Neurobehavioral Blast Research Facility projects for a value of $761 million. This project aims to deliver a state-of-the-art facility to support ongoing and future research activities to directly support the CAF's ability to respond to Chemical and Biological threats and improve blast protection and blast treatment for personnel.
• CFB Esquimalt: The ongoing $1.1 billion A/B Jetty Recapitalization Project at CFB Esquimalt's Dockyard in BC to support new fleets built through the National Shipbuilding Strategy. Work in 2025/26 includes the completion of "B" Jetty and the start of construction of "A" Jetty.
• CFB Gagetown: Completion of the new $90 million facility for the 4 Engineering Support Regiment (4ESR), the Canadian Army's High Readiness Engineer Unit. This modern 20,000m2 facility enables the unit to continue to meet the demands of domestic and expeditionary crisis response.
• The Digital Services Group (DSG) is collaborating closely with Shared Services Canada to ensure National Defence's infrastructure is supported through the Network Modernization Project. Additionally, DSG is enhancing WiFi solutions to support Defence Team members on bases and wings.

• Much of the existing Real Property (RP) portfolio was not designed for today's operational needs. In addition, a significant proportion of the assets are at the end of their life cycle and are forecasted to be in "critical" condition by 2030.
• The condition of the National Defence portfolio is aligned with the overall Government of Canada RP portfolio; the average age of assets is increasing, overall portfolio condition is deteriorating, deferred maintenance costs are growing, and the functionality and suitability of the portfolio are declining.
• Additionally, due to climate change, 64% of National Defence assets are at a high or greater risk of failure by the 2050s.
• Through portfolio modernization, National Defence is increasing the energy efficiency of defence infrastructure, reducing greenhouse gas (GHG) emissions, and providing modern net-zero or net-zero ready facilities to support personnel.
  • As of 2023/24, Defence had reduced GHG emissions from its real property and conventional fleet by about 38% from 2005 levels, nearing the 40% GHG emission reduction target for real property and conventional fleet by 2024/2025.
• For 2025/26, National Defence is allocating over $370 million to minor capital projects for existing infrastructure. In addition to buildings and facilities, this includes $31 million for municipal works projects, such as roads and utilities.
• In support of the Defence Real Property Portfolio Strategy, the Infrastructure Maintenance and Renewal Programis aimed at stabilizing the aging and deteriorating Defence RP portfolio, addressing maintenance requirements, and prioritizing long-term recapitalization investments. Taken together, the Program will:
  • Modernize infrastructure management;
  • Contribute to reducing GHG emissions by 40% by 2025 and setting National Defence on a path to meeting the net zero carbon target by 2050;
  • Support Indigenous reconciliation initiatives; and
  • Provide a resilient and sustainable RP portfolio in support of future operations.

Contracting of Professional Services

• National Defence relies on contracted resources to supplement internal capabilities or to provide a capability not available within the Defence Team.
• Examples of contracted resources include:
  • Temporary Help Services – resources that provide support and expertise for a period not exceeding 48 weeks;
  • Professional Services – resources procured through standing offers, supply arrangements, competitive or non-competitive processes that complete work in accordance with contract milestones; and
  • Training – resources that provide specialized expertise to National Defence employees.
• In Fiscal Year 2024-25, National Defence expenditures on "Professional and Special Services" totaled $6.9 billion.
  • Of this amount, National Defence expenditures on "management consulting" totaled $65.4 million. This is for all expenses coded as a subset of professional services under "Management Consulting" and does not distinguish between type of vendor (e.g. staff augmentation, financial management services, etc.).

Conflict of Interest

• In 2024-2025, the Review Services branch received 1,619 Conflict of Interest (COI) submissions from employees and CAF members, 79 of which were assessed as presenting a real, apparent, or potential COI.
• In the first quarter of 2025–2026, 2,263 questionnaires were completed for new hires, resulting in 96 positive responses requiring a Confidential Report.
• All defence contracts incorporate the Code of Conduct for Procurement, which outlines the expectations and obligations for vendors and sub-contractors who respond to bid solicitations and are awarded contracts.
• It states that by submitting a bid, vendors warrant that no real, apparent, or perceived conflict of interest exists or is likely to arise during the performance of the contract. If a vendor becomes aware of any situation that creates or may create a conflict of interest, they must immediately disclose the matter in writing to the contracting authority.
• A Guide to Mitigating Conflicts of Interest in Procurement has also been released by Treasury Board Secretariat to support the identification, reporting, mitigation and monitoring of conflicts in the federal procurement process.

• All Government of Canada employees have an obligation to prevent, identify, disclose, and manage conflicts of interest.
• Persons hired to and within the Defence Team are expected to follow key policies, including the National Defence and Canadian Armed Forces Code of Values and Ethics and public servants must attest to these values and ethics as part of the performance management process.
• Before entering into a contractual arrangement with the Government of Canada for which they would receive any direct or indirect benefit or income, Defence Team members must submit a confidential conflict of interest report as required whenever they engage in any outside activity. For Canadian Armed Forces members, Chain of Command approval must also be obtained in advance.

Improving Conflict of Interest (COI) Processes

• Step 1: As part of the letter of offer process, employees must complete a mandatory screening questionnaire. This includes a series of yes/no questions. If an employee answers "yes" to any of them, they are required to submit a Confidential Report to the National Defence Review Services branch within 30 days.
• Step 2: The Review Services branch reviews the Confidential Report to assess and determine whether a potential conflict of interest exists and, if so, what mitigation measures are required.
• The Proactive Conflict of Interest Questionnaire initiative is being expanded across the Defence Team to include both civilian and military members on a cyclical basis and will also extend to Canadian Coast Guard and Department of Fisheries and Oceans employees who joined National Defence as of September 2.