Procurement

Fixed-Wing Search and Rescue

  • The Canadian Armed Forces have effective search and rescue capabilities to keep Canadians safe.
  • Our existing fleets (CC-130H Hercules and CC-130J Hercules) are being used to ensure continued operations while we transition to a new aircraft.
  • We are currently procuring 16 new Fixed-Wing Search and Rescue aircraft (CC-295 Kingfisher) that will enable more effective search and rescue missions in all weather conditions.
  • We have already welcomed 15 of these aircraft and anticipate the initial operational capability of the new fleet in 2025-2026.
  • This project will generate positive economic dividends for the Canadian economy, including by providing highly skilled jobs across the country.
  • For example, Canadian companies are providing many key components on the aircraft, such as the engine (Pratt & Whitney) and infrared vision systems (L3 Harris (Wescam)), which will be integrated into the manufacturer’s broader supply chain.
  • Airbus (the manufacturer) has also developed a joint-venture with Newfoundland and Labrador-based PAL Aerospace to provide in-service support for the Kingfisher aircraft in Canada.
  • We will continue to advance this project and welcome the many jobs and investments it generates for the Canadian economy.

If pressed on delivery delays:

  • We are currently working with the manufacturer to ensure the design and development challenges associated with the integration of the new technical capabilities are addressed.
  • We remain confident that Canada will be provided with an advanced search and rescue capability that will support Canadians for years to come.
  • To ensure life-saving search and rescue services continue uninterrupted, existing fleets, including the CC-130H Hercules and the CC-130J Hercules, are being used until the transition to the new aircraft is complete.

Key Facts

  • Contract Value: $2.9B and up to $5.9B (including taxes).
  • Economic Benefit: As part of the Request for Proposal, Airbus is required to reinvest 100% of the contract value into the Canadian economy.
  • GBA Plus: The Fixed-Wing Search and Rescue Training Facility in Comox will include:
    • Gender neutral washrooms that accommodate those with disabilities;
    • Nursing rooms;
    • Cultural rooms for prayer; and
    • All equipment has been designed to accommodate all genders.

Details

The CC-295 Kingfisher aircraft will be able to:

  • Detect, identify, and classify objects and people, in low light and challenging conditions, using state-of-the-art sensors;
  • Communicate better with other search and rescue systems through modern communication, navigation, and data management tools;
  • Conduct searches across the full range of Canada’s search and rescue areas of responsibility; and
  • Be available when needed as a result of robust in-service support, including maintenance, engineering, and training support.

Timeline

  • Ground and flight testing is currently being conducted in Spain, the U.S., and Canada. Five aircraft are located in Comox, BC, and 10 remain in Seville, Spain, in preservation state.
  • Initial aircrew and maintenance training was completed on May 11, 2023.
  • Initial operational capability was anticipated for summer 2022; however, this timeline has shifted to 2025-2026. This delay is attributed to several factors related to the progress of the aircraft’s certification, technical considerations, and training maturity.

Economic Benefits

  • The Industrial and Technological Benefits Policy applies to the FWSAR contract. Bidders were required to partner with a Canadian company to deliver a maintenance and support program that ensured Canadian businesses were involved.
  • Airbus partnered with Newfoundland-based PAL Aerospace, and developed a joint-venture, Airpro SAR Services, that serves as the in-service support Canadian integrator. This approach ensures the majority of the maintenance and support services work is performed in Canada through a network of suppliers under a program managed by Airpro SAR Services.
  • In addition, many of Canada’s leading aerospace and defence companies have been provided opportunities to integrate into the CC295 program for Canada and into Airbus’ broader global supply chain. For example:
    • Pratt & Whitney Canada has provided the engines.
    • L3 Harris (Wescam) the electro optical infrared vision systems.
    • CAE has been subcontracted to deliver the training program and training centre in Comox, British Columbia.
  • This work is providing well-paying jobs for Canadians, growing the economy and supporting a strong Canadian aerospace and defence sector by providing export opportunities for Canadian businesses in global supply chains.

Current Search and Rescue Response Capabilities

  • To ensure ongoing coverage following the retirement of the CC-115 Buffalo, the Canadian Armed Forces will continue to rely on the existing CC-130H Hercules and CC-130J Hercules aircraft until the CC-295 Kingfisher assumes search-and-rescue operations.
  • Trenton Search and Rescue Region (Prairies, Ontario, part of Quebec, Nunavut and the Northwest Territories): FWSAR coverage will continue to be provided by the CC-130H Hercules at 17 Wing Winnipeg and CC-130J Hercules at 8 Wing Trenton.
  • Halifax Search and Rescue Region (North Atlantic to 30W, part of Quebec, part of Baffin Island and Atlantic Province): FWSAR coverage will continue to be provided by the CC-130H Hercules based at 14 Greenwood, NS.
  • Victoria Search and Rescue Region (Eastern Pacific Ocean, British Columbia and Yukon Territory): 435 Squadron from Winnipeg delivers FWSAR coverage using a detachment at 19 Wing Comox. The CC-130H Hercules detachment will remain at 19 Wing Comox until the Kingfisher is able to assume SAR operations. Victoria SSR will also have support from CH-149 Cormorant helicopters based out of 442 Squadron in Comox, B.C. For missions at sea, Victoria SSR may also call upon the Royal Canadian Air Force’s 407 Squadron CP-140 Auroras and U.S. Coast Guard fixed-wing aircraft to support the Cormorants, as required.

Canadian Multi-Mission Aircraft

  • To enable Canada to credibly defend its interests, at home and abroad, the Canadian Armed Forces need to be able to identify, detect, track, and potentially engage advanced surface and sub-surface threats using an array of highly sophisticated sensors.
  • That is why, under Canada’s Defence Policy – Strong, Secure, Engaged (SSE), National Defence is committed to acquiring a next generation Canadian Multi-Mission Aircraft (CMMA).
  • This aircraft will replace the aging CP-140 Aurora and enable the Canadian Armed Force to sustain a technological advantage over potential adversaries.
  • The CMMA aircraft will equip the Canadian Armed Forces with a long-range, crewed maritime patrol aircraft specialized in anti-submarine and anti-surface warfare.
  • It will be optimized for C4ISR -command, control, communication, computers, intelligence, surveillance, and reconnaissance.
  • This procurement will further help ensure that the Canadian Armed Forces maintains a world-class anti-submarine warfare/anti-surface warfare, intelligence, surveillance, and reconnaissance capability.

If pressed on NDDN motion on CMMA procurement process

  • I welcome the Committee’s motion regarding the CMMA procurement process.
  • National Defence is working to develop a comprehensive response to the Committee’s resolution.
  • We look forward to providing it to the Committee in due course.

If pressed on decision to request a P-8A offer from the US Government rather than hold a competition that would allow other suppliers to bid

  • Canada’s adversaries are deploying increasingly sophisticated, stealthy, and lethal capabilities.
  • At the same time, the CP-140 Aurora is reaching its estimated end of service date of 2030.
  • The Canadian Armed Forces require a multi-mission aircraft capability that meets all High Level Military Requirements and that is readily available to transition into service as a Military Off The Shelf (MOTS) replacement for the CP140 Aurora.
  • An off-the-shelf solution would enable a seamless replacement that is fully operationally ready; interoperable with Allies and proven key partners; and, able to contribute to Canada’s domestic and international commitments.
  • While the P-8A Poseidon is the only readily available aircraft that meets all operational requirements, namely anti-submarine warfare and C4ISR, this procurement is not finalised and still subject to a decision by the Government of Canada.
  • In response to Canada’s Letter of Request which outlined Canada’s Multi-Mission Aircraft requirements, in July 2023, we received the United States Letter of Offer and Acceptance though the Foreign Military Sales program.
  • This letter confirmed Canada’s request for the ability to purchase up to 16 P-8A Poseidon aircraft and associated equipment and initial servicing, as well as access to intellectual property and technical data.
  • The receipt of the Letter of Offer and Acceptance does not commit Canada to purchasing the P-8A and this option continues to be evaluated.
  • The final decision will be based on the capability offered, availability, pricing and benefits to Canadian industry.

If pressed on the need to move quickly (the threat)

  • Although Canada’s defence policy was grounded in a thorough assessment of the global security environment as it was understood in 2017, the speed at which our adversaries would evolve their military technology was underestimated.
  • Escalating global challenges have accelerated the operational demand for an effective CMMA capability for Canada and identified the criticality of the operational readiness of this capability, including interoperability with our allies.

If pressed on the options Canada has considered to date

  • As with any procurement, we examine our military requirements and hold consultations with industry, in order to determine the best capability for our members and value for money.
  • In the case of the CMMA project, we had multiple engagements with industry, led by PSPC.
  • We consulted Allies throughout the process and continue to do so.
  • These are also lessons that we have learned with ongoing projects.
  • For instance, the Maritime Helicopter Project (MHP) obtained approval in November 2004 and FOC has been progressively delayed to a current estimate of 2024. To date, that represents about 20 years of development on a uniquely Canadian solution.

If pressed on proposed Canadian CMMA solutions or a ‘mixed solution’

  • If a decision was taken to pursue a developmental CMMA solution, the new project timeline would most likely require a competitive strategy be pursued.
  • In such a scenario, there would be no guarantee that a Canadian company, or companies, would win such a competition.
  • Additionally, there is a very high likelihood that Canada would be the sole customer for a developmental CMMA and would therefore bear all developmental costs/risks for this capability as the launch customer. These non-recurring engineering costs would be considerable.
  • In terms of pursuing a ‘mixed’ solution, supporting two fleets could result in duplications in areas such as maintenance, increase the complexity and cost of future capability upgrades, and potentially reduce operational flexibility.

Key Facts

  • The Canadian Multi-Mission Aircraft (CMMA) will equip the CAF with a long-range manned Command and Control, Communications and Computers (C4) and Intelligence, Surveillance and Reconnaissance (ISR) and Anti-Submarine Warfare (ASW), and Anti-Surface Warfare (ASuW) aircraft with extended capabilities.

Details

Canadian Multi-Mission Aircraft (CMMA)

  • The aim of the CMMA Project is to deliver an enhanced long-range, long-endurance, multi-mission capability to replace the CP-140 fleet. It will be specialized in Anti-Submarine and Anti-surface warfare and optimized for C4ISR (command, control, communication, computers, intelligence, surveillance and reconnaissance).
  • The CMMA project is currently evaluating options:
    • In April 2021, DND launched a third-party CMMA Candidate Aircraft Analysis which identified potential CMMA candidates, their suitability against required CMMA Missions and ranked these potential solutions against High-Level Mandatory Requirements (HLMRs)
    • In February 2022, on behalf of DND, PSPC released a Request for Information (RFI) to validate market analysis conducted by PSPC as part of its role as the Government of Canada procurement authority.
    • The RFI sought input from Industry on High Level Mandatory Requirements (HLMR) and capability requirements pertaining to the replacement of the CP140 Aurora fleet, including Industry’s interest, capability and experience, which was used to help inform the project’s next step for options available for the replacement of the CP140 Aurora.
    • Following engagements with industry, Canada’s closest Allies and through independent third-party studies, the government has determined that the P-8A Poseidon is the only currently available aircraft that meets all of the CMMA operational requirements, namely anti-submarine warfare and C4ISR.
    • To explore this option in more detail, in March 2023 Canada submitted a Letter of Request through the United States government’s Foreign Military Sales program outlining Canada’s requirements and requesting an offer.
    • A Letter of Offer and Acceptance was received from the United States government in July 2023 and is currently being reviewed by the project team.
    • PSPC and DND have conducted a review of the LOA and concluded that the capability offered meets all CMMA High Level Mandatory Requirements.
    • ISED is reviewing the Boeing Economic Benefits proposal to ensure the proposal leverages economic benefits for Canada.
    • LOA validity period ends 30 Nov 2023. There is a risk that if the LOA expires, that it would have to be repriced.

Aurora Modernization Project

  • The CP-140 Aurora is Canada’s primary surveillance aircraft.
  • The aircraft is used for multiple types of missions over land and water.
  • This includes long range surveillance and reconnaissance in support of military operations, as well as providing assistance to other government agencies to combat illegal fishing, pollution, and drug trafficking.
  • The strategic capability offered by the aircraft is why we are modernizing the fleet and extending the life of the 14 aircraft to the 2030 timeframe through the Aurora Structural Life Extension Program and Aurora Incremental Modernization Project.
  • Full operational capability for the Aurora Incremental Modernization Project is planned for late 2024.
  • Nevertheless, this aircraft was first procured in 1982 and will be 48 years old upon retirement.
  • Canada’s adversaries are also deploying increasingly sophisticated, stealthy, and lethal capabilities in the surface and subsurface domains, particularly in the last few years.
  • There is a growing imperative to replace the CP-140.
  • To ensure our military has the equipment required to protect Canada’s coastline into the future, the CP-140 Aurora is expected to be replaced with the Canadian Multi-Mission Aircraft.
  • The CMMA aircraft will equip the Canadian Armed Forces with a long-range, manned maritime patrol aircraft specialized in Anti-Submarine and Anti-surface Warfare and optimized for C4ISR (command, control, communication, computers, intelligence, surveillance and reconnaissance).
  • Taken together, the upgrades to the Aurora fleet and future CMMA aircraft will help ensure that the Canadian Armed Forces maintains a world-class intelligence, surveillance, and reconnaissance capability.

Key Facts

  • The Aurora Structural Life Extension Project (ASLEP) involved replacing the wings and horizontal stabilizers on the aircraft. The ASLEP was completed in April 2020 at a cost of $418 million.
  • The Aurora Incremental Modernization Project (AIMP) is integrating new mission systems and sensors onto the aircraft. This project is being executed in a phased approach with four blocks; Blocks I, II and III are complete, and Block IV is in the implementation phase. The AIMP has a project cost of $1.8 billion (including taxes).

Details

  • The modernized CP-140 Aurora Long-Range Maritime Patrol Aircraft is a vital Canadian Joint Intelligence, Surveillance and Reconnaissance platform given its cutting-edge anti-submarine warfare and long-range surveillance capabilities. This aircraft is used extensively by the CAF, both in the Arctic and abroad, and is planned to be replaced with the Canadian Multi-Mission Aircraft (CMMA).

Life Extension and Upgrade Work

  • National Defence originally intended to modernize ten aircraft however, in October 2013, an additional $548 million was announced to life-extend and modernize four additional Auroras.
  • The 2013 approval also included definition of three new operational capabilities for all fourteen aircraft (referred to as Block IV) including: 1) a state-of-the-art self-protection system; 2) a Link 16 Data-link system (a military tactical data exchange network used by NATO countries); and 3) a High-bandwidth beyond-line-of-sight satellite communications system. Block IV implementation was approved in June 2015.
  • Timelines for Aurora Incremental Modernization Project (AIMP) Block IV:
    • Initial operational capability (IOC) will be achieved incrementally by capability: IOC for the self-protection system is summer 2023, and IOC for the beyond-line-of-sight satellite communications system and Link 16 is the first quarter of 2024.
    • Project IOC has been delayed several times due to the increased complexity of the design, test and evaluation resource limitations and the requirement to coordinate system certifications with United States Government test agencies.
    • Full operational capability is planned for late 2024;
    • As of August 2023, eight Block IV aircraft are currently in Greenwood, N.S. In addition to operational employment, these aircraft are being used for concept development, training, and ground and flight testing. Three others are undergoing modifications at IMP Aerospace in Halifax, noting that Block IV modifications have yet to be cleared for operational use.
    • Further updates to the CP-140, to be implemented in the next five years, will include: Multi-Fleet Air Traffic Management Avionics updates; Secure Radio Modernization; and Light-Weight Torpedo Upgrade.
  • Concurrent to the Aurora Incremental Modernization Project (AIMP) which focussed on integrating new mission systems and sensors onto the aircraft, the CP140 also benefitted from the Aurora Structural Life Extension Project (ASLEP) which involved replacing the outer wings and horizontal stabilizers on the aircraft. The ASLEP was completed in April 2020 at a cost of $418 million.
  • These upgrades will keep the CP-140 operationally relevant and effective until 2030.

Victoria-Class Modernization Project

  • Victoria-class submarines are among Canada’s most strategic assets for conducting surveillance of Canadian, international, and near-Arctic waters.
  • That is why we launched the Victoria-Class Modernization Project to update this fleet and ensure it remains operationally relevant in an evolving operating environment.
  • The decision to modernize remains the most effective means of ensuring continued submarine operations into the mid-2030s.
  • The Victoria-Class Modernization Project will also support jobs across Canadian shipyards and through the supply chain.
  • This will include the supply chains for equipment, providing opportunities for Canadian small and medium-sized businesses.

If pressed on the Canadian Patrol Submarine project

  • We are in the initial stages of defining the operational and capability requirements for a new class of submarines to replace the Victoria-class.
  • We have conducted initial engagements with countries and companies that currently have, or are in the process of building, submarines that meet Canadian requirements.
  • We are examining all options to meet the Navy’s requirements.

Key Facts

  • Budget: Up to $1.0B
  • Timelines:
    • First modernization starting date: 2023
    • First delivery: 2027
    • Final delivery: 2036
  • The Victoria-class Modernization Project involves 16 projects. -All of these projects are in either the definition or implementation phase.
  • Economic benefit: This modernization project will benefit Canadian industrial and technological sectors and provide robust economic benefits for Canada.
  • Maintenance and modernization projects will support jobs across Canada both at the shipyards and through the supply chain.

Details

  • Canadian submarines deliver a world-class, force-multiplying deterrent effect as well as an unmatched sovereign defence and security capability.
  • These submarines are capable of covertly monitoring evolving situations at home and abroad.
    • At home, submarines provide critical, sovereign force protection capacity for our sea-based forces when required.
    • Abroad, these submarines can conduct “indications and warnings” and vital joint-targeting information, weapon delivery, or Special Operations Force insertion.
  • Canada purchased four Victoria-class submarines from the British Government in 1998.
  • The first three Victoria-class submarines were accepted into service between 2000 and 2003. The fourth submarine suffered a fire in transit to Canada, which delayed its acceptance into Royal Canadian Navy service until 2015.
  • These submarines are scheduled for end of life in the 2034-2040 timeframe.
  • The decision to modernize remains the most effective means of ensuring continued submarine operations for the Royal Canadian Navy into the 2030s.
  • The Victoria-class Modernization Project will focus primarily on enhancing three distinct capabilities:
    • Habitability – to improve habitability and deployment conditions onboard Victoria-class submarines;
    • Joint Force Capability – position the Victoria-class submarines to contribute meaningfully to joint operations ashore; and,
    • Survivability – to ensure the survivability of the Victoria-class submarines against an evolving complex threat in an ever-changing battle space.

Gender-Based Analysis Plus (GBA+)

  • New equipment will enhance accessibility for crew members, including improvements in both privacy and functionality of:
    • Sleeping areas;
    • Wash places (including gender-neutral washrooms); and
    • Dining/social areas.

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