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Procurement

Canadian Surface Combatant (CSC)

  • National Defence is committed to providing the Royal Canadian Navy with next-generation warships.
  • We are procuring 15 Canadian Surface Combatants, which will be built in Halifax, Nova Scotia, as part of the National Shipbuilding Strategy.
  • In these Main Estimates, National Defence is requesting $1.28B for the Canadian Surface Combatant (CSC) project.
  • This funding will be used to support our work with industry to finalize the selected ship design.
  • It will also be used to enhance shipyard infrastructure.
  • In fact, we anticipate starting work in summer 2024, to ensure that the shipyard in Halifax is prepared to begin full production in 2025.
  • This year, and further to the funding we are requesting in the Estimates, we will also move ahead with design and construction activities for the Land Based Test Facility in Hartlen Point, Nova Scotia.
  • The Facility will be used to test combat, navigation and communication systems for the upcoming Canadian Surface Combatant ships.

If pressed on delays and cost increases:

  • While the project budget has not changed, we are assessing potential cost increases, mainly due to delays in the project schedule and higher than forecasted inflation.
  • We have received an initial cost estimate from Irving Shipbuilding Inc. for all 15 ships, which is under review to better understand risks and savings opportunities associated with the proposal.
  • We continue to make important progress, including preparations to begin low-rate production – that is, to build small parts of the vessel - in summer 2024.

Project Overview

  • The CSC will replace and update the capabilities found in both the retired Iroquois-class destroyers and the Halifax-class frigates. This single class of ship will be capable of meeting multiple threats on the open ocean and the coastal environment.

Economic benefits:

  • This project will also generate at least $31 billion dollars in GDP and create and sustain more than ten thousand jobs over the next 25 years.
  • This includes job training and apprenticeship opportunities for Indigenous peoples, visible minorities, and underrepresented groups.

Spending Details

Funding Request:

  • In these Main Estimates, National Defence is requesting $1.28B for the Canadian Surface Combatant (CSC) project. It will be used to continue finalizing ship design (definition phase activities) and shipyard infrastructure enhancements, as well as to progress related infrastructure projects such as the Land Based Test Facility in Hartlen Point, Nova Scotia.

How Funding Will Be Spent:

  • To progress CSC design in preparation for the beginning of Full Rate Production (cutting steel and focusing shipyard on CSC production) on Ship 1 in April 2025.
  • To advance shipyard infrastructure enhancements to support the start of CSC construction. Infrastructure enhancements will include, dredging, marine structures, and rock infill.
  • To progress infrastructure projects to prepare for the delivery of CSC ships to Canada, including to start construction activities on the Land Based Test Facility in late 2024/early 2025. [The Facility will be used to test the combat, navigation and communication for the future ships].

Next Operational Milestone(s) :

  • The Final Critical Design Review (to assess that the final design meets performance and engineering requirements of development specifications) is forecasted for early 2025.
  • Low-rate production (begin building small sections of the vessel) on Ship 1 will begin in summer 2024.
  • The Implementation Contract Award (contract to build) is expected in late-2024/early-2025.
  • Full Rate Production of Ship 1 should begin April 2025.

Project Deliverables to Date:

  • The Preliminary Design Review was completed in December 2022.
  • The CSC design progressed through the Initial Critical Design Review stage in April 2024.

Timeline and project budget:

  • Estimated Budget: $56-60B (Design and Acquisition, excluding taxes)
Timeline: First delivery in early 2030s.

Details

Infrastructure Investment

  • Irving Shipbuilding (ISI) is expanding and modifying its site and facilities at the Halifax Shipyard and supporting facilities in Dartmouth, including at Woodside Industries and Marine Fabricators.
  • Canada has agreed to provide ISI with $463M (taxes included) for infrastructure improvements at the shipyard to ensure that they have the capability to construct the current CSC design and to meet the delivery schedule to support the RCN.
    • The Halifax Shipyard site expansion will include dredging, marine structures, and rock infill behind the structure creating approximately 13 acres of additional yard space.
    • The decision to fund the upgrades was supported by a business case that demonstrated the upgrades will result in improvements to the build strategy and processes, with associated improvements to schedule and cost.
  • Infrastructure enhancements began in 2023 to support the start of CSC construction activities. Shipyard infrastructure upgrades are progressing consistent with initial planned schedules.

Parliamentary Budget Officer 2022 Report

  • On October 27, 2022, the PBO published a report on the total life cycle cost for the CSC project, projected to be $306B.
  • Total lifecycle costs includes costs from the development through to disposal phases of the project. Previous reports focused solely on the cost of the acquisition and development phase.
  • This report estimates the development and acquisition phase to be $84.5 billion (excluding taxes), which represents an increase of 9% to the previous estimated cost of $77.3 billion (inclusive of taxes).
    • Total Life-Cycle Cost: $306B
    • Development: $4.3B
    • Acquisition: $80.2B
    • Operation & Sustainment: $219.8B
    • Disposal: $1.7B
  • In this report, PBO made significant efforts to report on costs following National Defence’s costing methodology, including the removal of taxes, allowing for a simpler comparison between National Defence and PBO’s estimates.
  • Given the early stages of the process, National Defence continues to focus on finalizing the design. The current National Defence estimated budget for this purchase is $56-60B (Design and Acquisition, excluding taxes).

GBA Plus

  • CSC ships will include berths, wash places, bathrooms, medical facilities, and off-duty areas that are designed to accommodate all genders and promote privacy.

Indigenous Relations

  • Irving Shipbuilding Inc. is leading initiatives, including job training and apprenticeships for Indigenous Canadians, visible minorities, and underrepresented groups in shipbuilding.

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Halifax-Class Frigates

  • The Halifax-class frigates enable the Royal Canadian Navy (RCN) to deliver on its core missions at home and abroad.
  • These frigates are the backbone of the RCN and can conduct maritime engagements against air, surface, and subsurface threats.
  • They are currently Canada's only surface combatant ships, capable of defending Canadian interests against adversaries at sea.
  • Which is why, in these Main Estimates, National Defence is requesting $104 million for the Halifax-class Point Defence Missile System Upgrade (PDMSU) project.
  • The purchase of approximately 50 additional Evolved SeaSparrow Missile (ESSM) Block 2’s is critical to protecting our members and the Halifax-class.
  • This capability ensures that the Halifax-class can continue defending against evolving surface, sub-surface and land-based threats.
  • More broadly, Our North, Strong and Free commits $9.9 billion over 20 years to improve the sustainment of our naval fleets, including extending the life of the Halifax-class frigates.
  • Investments in the Halifax-class will include more timely maintenance, coupled with regular upgrades to reinforce the RCN’s ability to quickly respond to unforeseen events.
  • These and future investments will help ensure that the RCN has the capacity to support maritime operations at home and abroad, until the transition to the future fleet – Canadian Surface Combatant – is complete.

Project Overview

Halifax-class Modernization Project

  • In November 2008, two multi-ship competitive contracts were awarded to Irving Shipbuilding Inc. (on the East Coast) and Seaspan’s Victoria Shipyards Co Ltd. (on the West Coast) to undertake a mid-life refit of the RCN’s 12 Halifax-class frigates, as well as an overhaul of the fleet’s combat systems.
    • This project included a number of upgrades to the fleet, including new radar suites; an internal communications system upgrade; a harpoon missile system upgrade (surface-to-surface); and new electronic warfare systems.
  • Effective Project Closeout for the Halifax-class modernization was declared in January 2019, with Final Project Closeout expected in summer 2026.
  • Modernization program costs are expected to total approximately $4.3 billion.
  • PDMSU is a distinct project and therefore not counted under the Halifax-Class Modernization program budget.
  • The PDMSU project will upgrade the current Evolved Sea Sparrow Missile Point Defence Missile System. This involves developing, acquiring, and integrating a minimum of 174 missiles with the 16-launcher system currently aboard frigates. This system, expected to be fully operational by December 2025, will sustain the Halifax-class ships’ ability to defend against current and future threats, at home and abroad.

Economic Benefits:

  • To date, the collaborative development and manufacturing of the ESSM Block 2 has provided over $154 million worth of industrial workshare to Canadian firms and this will continue to grow as missile production continues.

Point Defence Missile System Upgrade – Spending Details

Spending Details

Funding Request:

  • In these Main Estimates, National Defence is requesting $104 million for the Halifax-class Point Defence Missile System Upgrade (PDMSU) project.

How Funding Will Be Spent:

  • This funding will support the planned procurement of approximately 50 additional Evolved SeaSparrow Missile (ESSM) Block 2 [medium-range, surface-to-air interceptor] to protect the Royal Canadian Navy’s (RCN) Halifax-class against evolving surface, sub-surface and land-based threats.
    • The missiles counter high-speed anti-ship cruise missiles, supersonic maneuvering anti-ship missiles, high-speed maneuverable surface threats, and low-velocity air threats such as drones and helicopters.
  • Funding will also go towards Canada’s contribution to the NATO SeaSparrow Consortium.
    • The Consortium is a joint military and industrial consortium that provides a shared forum to support the design, production, acquisition, maintenance, and evolution of the existing ESSM Point Defence Missile System capability.

Next Operational Milestone(s):

  • Initial Operational Capability: Anticipated for spring 2024.
  • Full Operational Capability: Anticipated for December 2025.

Project Deliverables to Date:

  • To date, the PDMSU project has completed all integration engineering for the Halifax-class frigates with several ships ready for operational use of ESSM Block 2.

Timeline and Project Budget:

  • The PDMSU project budget is $802 million (excluding taxes).

Arctic and Offshore Patrol Ships (AOPS)

  • National Defence is committed to enhancing and safeguarding Canada’s sovereignty in the North, which is why we are procuring six new Arctic and Offshore Patrol Ships, designed to operate in previously inaccessible northern waters.
  • These ships will operate in the Arctic between June and October, providing a greater and longer Canadian Armed Forces presence in the North.
  • Four of the Arctic and Offshore Patrol Ships have already been delivered, with the fifth planned for delivery by the end of Summer 2024.
  • In these Main Estimates, National Defence is requesting $237.1 million to continue construction of the fifth and sixth Arctic and Offshore Patrol Ships (AOPS), which are anticipated to be delivered in 2024 and 2025 respectively.
  • This will include finalizing construction activities and at-sea testing of AOPS 5 and supporting ongoing construction of the final AOPS.
  • Further, as outlined in our renewed Defence Policy Our North, Strong and Free, we will explore options for enabling these ships to embark maritime helicopters.
  • National Defence will continue to advance this project, which supports over 2,000 jobs in the Canadian economy, including in Nova Scotia and within the broader shipbuilding industry.

If pressed on technical issues (including flooding):

  • Technical issues are not unusual during the introduction period of a new capability.
  • Most of the in-service issues are technical in nature, such as anchor and bow thruster deficiencies, which we have addressed.
  • Engineering work to address the flooding issue for the class is complete and final corrective actions will be implemented in HMCS Harry DeWolf and HMCS Margaret Brooke by the end of Summer 2024.
  • Addressing the remaining issues continues to be a top priority.
  • As issues are resolved, the corrections are incorporated into the production of all follow-on vessels.

If pressed on who will pay for repair costs:

  • A shipbuilder’s Material and Workmanship warranty is in effect for 12 months following a ship’s delivery.
  • To date, the Material and Workmanship warranty has covered $7.4M (excluding taxes) in repair costs.

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Project Overview

  • Under Strong, Secure, Engaged (SSE), National Defence committed to the acquisition of six Arctic and Offshore Patrol Ships, which will significantly enhance the Canadian Armed Forces capabilities and presence in the Arctic, better enabling the Royal Canadian Navy to assert and uphold Canada’s Arctic sovereignty.
  • These vessels perform a wide variety of tasks, such as:
    • Surveillance operations of Canadian waters;
    • Humanitarian assistance, emergency response and disaster relief;
    • Search and Rescue.

Spending Details

Funding Request

  • In these Main Estimates, National Defence is requesting $237.1 million to continue construction of the fifth and sixth Arctic and Offshore Patrol Ships (AOPS).

How Funding Will Be Spent:

  • AOPS Build Contract ($205M): Funding for on-going construction of final AOPS by the Halifax Shipyard. This includes finalizing construction activities and at-sea testing of AOPS 5, the future HMCS Frédérick Rolette, with delivery expected by end of summer 2024. Funding will also support the ongoing construction of AOPS 6, the future HMCS Robert Hampton Gray, as well as the continued delivery of spare parts to existing ships.
  • Infrastructure Expenses ($19M):Ongoing construction activities for the Nanisivik Fueling Facility and crane procurement for the Jetty NJ in Halifax.
  • Project Management Office (PMO) Expenses ($13.1M): Inclusive of military, civilian, supporting Other Government Department salaries and operating expenses.

Next Operational Milestone(s):

  • Summer 2024: The shipbuilder (Irving Shipbuilding) will conduct at-sea testing of AOPS 5, the future HMCS Frédérick Rolette, with delivery to Canada expected by end of Summer 2024.

Project Deliverables to Date:

  • 4 of 6 AOPS have been delivered to Canada. Production of the remaining two is in-progress.
  • In April 2024, the third ship, HMCS Max Bernays, completed its inaugural sail from Halifax, Nova Scotia, to its new homeport of Esquimalt, British Columbia, the first AOPS to do so.
  • AOPS have deployed on Operation NANOOK, conducted Northern presence and surveillance operations, and operated with United States Navy and Coast Guard assets.

Timeline and Project Budget:

  • AOPS Budget: Up to $4.98B (excluding taxes)
  • Timeline:
    • July 31, 2020: The first AOPS, HMCS Harry DeWolf, was delivered. 
    • July 15, 2021: The second AOPS, HMCS Margaret Brooke, was delivered.
    • August 15, 2022: Production of the sixth and final ship for the RCN began.
    • September 2, 2022: The third ship, HMCS Max Bernays, was delivered.
    • August 31, 2023: The fourth ship, HMCS William Hall, was delivered.
    • Summer 2024: Delivery target for the fifth ship, the future HMCS Frédérick Rolette.
    • 2025: Delivery target for the sixth and final ship, the future HMCS Robert Hampton Gray.

Details

Deficiencies and Repairs with the AOPS

  • AOPS is the first new warship built in Canada in the last 20 years. Shipbuilding in general is difficult and when building the first ship in a class, it is expected that there will be issues identified throughout the building process—including after delivery—that require correction.
  • Prior to delivery of HMCS Harry DeWolf, HMCS Margaret Brooke, HMCS Max Bernays and HMCS William Hall, construction deficiencies were identified and documented as part of a rigorous quality assurance program. Both the Government of Canada and the shipbuilder agreed that certain deficiencies could be corrected after delivery.
  • The Project Management Office works closely with the shipbuilder to resolve these deficiencies while progressing the ships’ trials and operational schedule. In the meantime, appropriate mitigation measures have been put in place where necessary.
  • A Technical Investigation into issues with the Main Diesel Generator (MDG) on the AOPS was finalized in early February 2023. The changes recommended by this investigation are being implemented in ships 1 to 4 and will be incorporated within follow-on ships as appropriate.
  • Ships 1 and 2 (HMCS Harry DeWolf and HMCS Margaret Brooke) have completed repairs to their Main Diesel Generators and Central Fresh Water Cooling System. This work was completed in Harry DeWolf in July 2023 and was completed in HMCS Margaret Brooke at the end of August of 2023.
  • Repair work on Ship 3 (HMCS Max Bernays) was completed under the builder warranty.
  • Work on Ship 4 (HMCS William Hall) is now complete and the vessel was delivered in August 2023. Issues identified in-service are being rectified proactively during the construction of new ships, including Ships 5 and 6.

Indigenous Relations

  • Each ship will be affiliated with an Inuit region to build strong ties with Arctic Indigenous communities as they operate in and around their territories.

GBA+

  • The AOPS were designed to accommodate a mixed-gender crew:
    • Reduced cabin occupancy to facilitate a mix-gendered crew, create privacy, and promote greater comfort;
    • Flexible use spaces will accommodate various spiritual practices and promote welfare and team cohesion; and
    • Integrated Wi-Fi will facilitate crew communications with families back home.

Joint Support Ships (JSS)

  • National Defence is committed to procuring Joint Support Ships that will help defend Canada and contribute to international security by providing crucial at-sea replenishment capabilities.
  • The JSS will provide Canada with a modern, task tailored, globally deployable, naval support capability that can provide support to the ships and aircraft of a naval task group at sea.
  • Which is why in these Main Estimates, National Defence is requesting $549.6 million to continue funding the purchase of these ships.
  • These funds will enable the launch of the first ship in November 2024, followed by sea trials and delivery to the Royal Canadian Navy (RCN) in 2025. 
  • Further, investing in these new ships will provide an invaluable operational capability to the RCN, and significant investment in local economies from coast to coast.
  • This project will sustain over 1,000 jobs at Vancouver Shipyards in British Columbia and a total of 3,900 jobs in the broader marine industry.

If pressed on JSS delivery delays:

  • We remain committed to providing the Royal Canadian Navy with the equipment they need to ensure their current and future operational effectiveness.
  • The revised schedule is a result of supply chain challenges due to the COVID-19 pandemic and further unanticipated delays due to a first-of-class delivery.
  • The first ship, previously scheduled for delivery in 2023, is now expected in 2025.
  • The second ship, which was previously scheduled for delivery in 2025, is now expected in 2027.
  • We are actively monitoring progress and working with Vancouver Shipyards to ensure the timely delivery of these ships.

Project Overview

  • The Joint Support Ship (JSS) project will deliver two new ships, to the RCN under the National Shipbuilding Strategy and will replace the auxiliary oiler replenishment (AOR) vessels that reached the end of their operational lives.
    • The JSS will have capabilities such as: Underway Support to Naval Task Groups, such as the re-supply of fuel, food, ammunition, spare parts and other supplies between ships at sea; Sealift; Support to Operations Ashore; and Support to Northern Operations.
    • These ships will also have military capabilities, providing our sailors the protection they need when deployed in high-threat environments.

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Spending Details

Funding Request

  • In these Main Estimates, National Defence is requesting $549.6 million to continue funding the purchase of two Joint Support Ships (JSS).

How Funding Will Be Spent:

  • Continued outfitting (equipping the ship with cabling, piping, equipment) of JSS1, which will lead to launch in November 2024.
  • Continued construction of JSS2.
  • The JSS is made from a number of large blocks that are fabricated separately and then joined together to make the overall hull/structure of the ship.
  • JSS2 will have 115 blocks, with 32 already completed and 64 currently under construction.
  • Continued funding for the JSS Project Management Office.

Next Operational Milestone:

  • JSS1 naming ceremony planned for mid-November 2024, prior to launch on 17 November 2024.
  • Sea trials are projected to take place in 2025, followed by delivery to the Royal Canadian Navy in 2025.

Project Deliverables to Date:

  • JSS1 block consolidation (all blocks have been assembled to create the hull/structure of the ship) complete as of August 2023.
  • Outfitting the ship with cabling, piping, equipment, etc. is in progress.
  • JSS2 construction began in May 2022, with a keel laying ceremony held 27 October 2023.

Timeline and Project Budget:

  • Budget: Up to $4.1BFootnote * (excluding taxes)
  • Timelines:
    • JSS1: Cut steel: 2018; Planned delivery: 2025.
    • JSS2: Cut steel: 2022; Planned delivery: 2027.

Details

GBA Plus
The JSS were designed specifically to accommodate a mixed-gender crew by including gender-inclusive toilets, chair heights and sightlines, and private showers and changing areas.

MV Asterix

  • The MV Asterix remains an interim solution to mitigate the capability gap while the Joint Support Ships are being built.
  • The period of service for the Asterix was extended to January 2025, however, the contract option periods provide a potential interim capability up to January 2028.

Interim Auxiliary Oil Tanker Replenishment

  • National Defence has contracted the services for a commercial interim Auxiliary Replenishment vessel (iAOR) to help bridge the gap until the Joint Support Ships are operational.
  • This is an important capability which allows the Halifax-class frigates to continue to operate for extended periods away from home port, without relying on foreign ships or port visits for frequently required support/resupply.
  • In these Main Estimates, National Defence is requesting $98.7 million to fund the extended service contract for the continued use of the iAOR, MV Asterix.
  • This funding will provide the Royal Canadian Navy (RCN) with essential continued at-sea replenishment capability to January 2025.
  • This contract can be further extended up to January 2028, ensuring that the RCN will maintain this capability until the arrival of the Joint Support Ships.
  • The MV Asterix continues to play a vital support role to the RCN, notably supporting operations such as PROJECTION, ARTEMIS, NEON and NANOOK.

If pressed on the increased value of MV Asterix contract:

  • With the extension to January 2025, the contract value increased by $188 million. A rigorous budget review was conducted and the value remains within the original program budget.

Project Overview

  • The interim supply ship provides capabilities such as at-sea oiler replenishment, aviation support, medical and humanitarian assistance or disaster relief (large medical facilities and emergency accommodation for up to 350 passengers).

Spending Details

Funding Request:

  • In these Main Estimates, National Defence is requesting $98.7 million to fund the extended service contract for the continued use of the interim Auxiliary Oil Tanker (iAOR), MV Asterix.

How Funding Will Be Spent:

  • This funding will be used for the Interim Auxiliary Oiler Replenishment provision of service contract, including operations, maintenance, and insurance costs.
  • The contract’s pre-negotiated annual budget (the requested funds) will be fully expended by deploying MV Asterix for a projected 72 days at sea during Fiscal Year 2024-2025.

Next Operational Milestone(s):

  • In Fiscal Year 2024-2025, MV Asterix will support the Royal Canadian Navy’s (RCN) participation in Task Group Exercises (TGEX) and RIMPAC (a biennial US-led multinational maritime exercise, which takes place in and around the Hawaiian Islands).

Project Deliverables to Date:

  • As of end of Fiscal Year 2023-2024, MV Asterix has provided contracted services to the RCN for a total of 766 days at sea.
  • MV Asterix has supported operations such as PROJECTION, ARTEMIS, NEON, and NANOOK.
  • MV Asterix has been involved in exercises such as RIMPAC, CUTLASS FURY, KAEDEX, TALISMAN SABRE and JOINT WARRIOR.

Timeline and Project Budget:

  • Contract Value: Up to $912,397,498 (including taxes).
  • Project Details:
    • Contract Awarded: November 15, 2015
    • Awarded to: Federal Fleet Services Inc.
    • Contract Duration: 5 years, with an additional five 1-year option periods at the discretion of the Government of Canada
    • Approval was granted on June 22, 2022 to amend the Interim Auxiliary Oiler Replenishment provision of service contract with Federal Fleet Services Inc (FFS), for an additional period of up to two (2) years, from January 29, 2023 until January 28, 2025, for a revised total contract amount not to exceed $912,397,498 (including $105,583,256 in applicable taxes).
  • Vessel entered into service on January 29, 2018.

Details

  • The RCN had to retire the former Her Majesty’s Canadian Ships (HMCS) Protecteur and Preserver earlier than anticipated. This left the RCN with an urgent requirement to fill a critical gap in at-sea replenishment capability until the new Joint Support Ships (JSS) are delivered.
  • The iAOR Pre-Service Delivery period began in November 2015 as the vessel was modified to the required specifications in the contract. Upon completion, the vessel was delivered and accepted into service in January 2018.
  • The contract option periods provide the ability to extend the service up to January 2028.
  • The key role of the interim provision of service contract is to provide an at-sea supply and replenishment service to the RCN during non-combat domestic and international operations. It could also offer significant additional capabilities, such as aviation support, space for medical support, and humanitarian assistance or disaster relief.

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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 the fleet and ensure it remains relevant in an evolving operating environment.
  • In these Main Estimates, National Defence is requesting $10 million to continue the definition and implementation phases of the modernization of the Victoria-class submarines.
  • This will support the continued design and acquisition of new galley equipment, which will improve the quality of life for submariners.
  • The improvement of living conditions will take into account inclusiveness and gender-based considerations for privacy and functionality in various areas of the submarines.
  • These funds will also go towards projects to upgrade our submarines sonar sensors and search and attack periscope.
  • The decision to modernize remains the most effective means of ensuring continued submarine operations into the mid-2030s, while we explore options for renewing and expanding our submarine fleet.
  • The Victoria-class Modernization Project will also support jobs across Canadian shipyards and throughout the supply chain, including for small and medium-sized businesses.

If pressed on the Canadian Patrol Submarine Project:

  • Canada’s renewed Defence Policy, Our North Strong and Free highlights the importance of Canada’s Arctic, and the role that the future submarine fleet will play in monitoring and protecting this important region.
  • Future submarines will need longer range and endurance, modern monitoring and surveillance equipment, and greater lethality than is currently available in the Victoria-class.
  • As the Prime Minster has said - we will be looking at what type of submarines are the most appropriate to protect our coastlines.
  • Given the changing security situation and operational demands on the Royal Canadian Navy (RCN) – such as in the Indo-Pacific, amongst others – our intent is to avoid a capability gap.
  • The RCN is currently defining the requirements for Canada’s future submarine fleet and analysing options for the replacement of the Victoria-class to meet operational needs.

Project Overview

  • The Victoria-class Modernization Project will focus primarily on enhancing three distinct capabilities:

Habitability – to improve habitability and functionality of conditions onboard Victoria-class submarines.

  • These changes will be informed by GBA Plus analysis and include: improvements to the accessibility of living spaces, privacy enhancements, and the creation of gender-neutral washrooms.

Joint Force Capability – to position the Victoria-class submarines to contribute meaningfully to joint operations ashore.

  • For example, the Acoustic Quieting Project will reduce the submarine’s noise signature, thereby making the platform less likely to be detected.
  • Meanwhile, the Periscope Modernization and Flank Array Modernization Project will contribute to an increased ability to conduct intelligence, surveillance and reconnaissance missions.

Survivability – to ensure the survivability of the Victoria-class submarines against an evolving complex threat in an ever-changing battle space.

Economic Benefits:

  • 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 at the shipyards and through the supply chain.

Spending Details

Funding Request:

  • In these Main Estimates, National Defence is requesting $10 million to continue the definition and implementation phases of the modernization of the Victoria-class submarines.

How Funding Will Be Spent:

  • Project Management Office personnel resources (Project Managers, Procurement Officers, contractors).
  • Milestone payments for the new galley design and acquisition of new galley equipment.
  • Initial milestone payment for the Flank Array Modernization [sonar sensors, that will increase detection ranges with high fidelity acoustic data] and Periscope Modernization projects [upgrades to search and attack periscope to digitized systems that are commonly used across allied navies].

Next Operational Milestone:

  • Installation of the new galley on HMCS Victoria will be completed in conjunction with the HMCS Victoria Extended Docking Work Period in December 2029.

Timeline and Project Budget:

  • Budget: Up to $1.0B (including taxes)
  • Timelines:
    • First modernization starting date: 2023
    • First delivery: 2027
    • Final delivery: 2036

A/B Jetty – Esquimalt

  • In these Main Estimates, National Defence is requesting $55.9 million to support the A/B Jetty Recapitalization Project at Canadian Forces Base (CFB) Esquimalt.
  • The A/B Jetty Recapitalization project will replace two jetties at HMC Dockyard in Esquimalt Harbour.
  • “A” Jetty is nearly 80 years old and has exceeded its service life. “B” Jetty was demolished in 2017.
  • Upon completion in 2030, the new jetties will provide berths for the future Joint Support Ship and Canadian Surface Combatant ships, as well as the Arctic and Offshore Patrol ships.
  • As part of the ongoing A/B Jetty replacement, the project will also remove contaminated sediments and other material from the seabed, improving the long-term marine environment within Esquimalt Harbour.
  • These projects will help ensure that the Royal Canadian Navy (RCN) remains ready to serve the interests of Canada at sea.

Project Overview

  • Due to the degraded functional and technical condition of the existing "A" and the old "B" jetty structures, the recapitalization of these facilities has long been an infrastructure priority for National Defence.
  • The jetties are being replaced by a fully integrated steel-pile concrete structure complete with new utility services and cranes to support RCN ships at their berths.

A/B Jetty Recapitalization Spending Details

Funding Request

  • In these Main Estimates, National Defence is requesting $55.9 million to continue funding the implementation phase of the A/B Jetty Recapitalization Project at Canadian Forces Base Esquimalt.

How Funding Will Be Spent:

  • Begin the site preparation work for the construction of “A” Jetty.  This will include soil remediation, rock removal, and the commencement of construction of an electrical substation.
  • Complete final construction activities and commission “B” Jetty and put into active service for the use of the Royal Canadian Navy (RCN). 
  • Procure two Jetty cranes, one for “A” Jetty and one for “B” Jetty, to service and supply RCN Ships when they are berthed alongside the Jetties.

Next Operational Milestone(s):

  • Current projection dates of Phase 2B (“B” Jetty) and Phase 3 (“A” Jetty) work:
    • “B” Jetty substantial completion and transfer of ownership to National Defence for RCN use in Summer 2024.
    • Phase 3 (“A” Jetty) site preparation and construction work to commence Summer 2024. Substantial completion expected Summer 2029. 
    • “B” Jetty crane installation in Winter 2026; “A” Jetty crane installation Summer 2028.
    • “A” Jetty Substantial completion and transfer of ownership to National Defence for RCN use in Summer 2029.

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Project Deliverables to Date:

  • The A/B Jetty project is being implemented in 3 Phases. Phase 1: Design and Utilities; Phase 2: “B” Jetty, and: Phase 3: “A” Jetty.
    • 2018: Phase 2B (“B” Jetty) design work complete.
    • 2019: Phase 2B (“B” Jetty) construction contract award.
    • 2020: Phase 2A (“B” Jetty Site Preparation) construction work complete.
    • April 2024: Phase 3 (“A” Jetty) design work complete.

Timeline and Project Budget:

  • Budget:  The total project budget approved as of May 2023 is $1,047,284,647.  Funding Breakdown as follows:
    • Vote 1 – Environmental Remediation / Federal Contaminated Sites Action Plan $103,348,324
    • Vote 1 – DND (includes Vote 1 expenditures associated with all Phases and rail cranes) $1,845,210.
    • Vote 5 – Arctic Offshore Patrol Ship contribution $100,000,000
    • Vote 5 – DND Accrual funding $842,091,113
  • Schedule: 
    • Definition phase (design) began in 2011.
    • Phase 1 (Design and Utilities)
      • Commencement 2012
      • Completion 2014
    • Phase 2 (“B” Jetty) construction
      • Commencement 2017
      • Completion 2024
    • Phase 3 (“A” Jetty) construction
      • Commencement 2024
      • Completion 2030

Future Fighter Capability Project (FFCP)

  • The Future Fighter Capability Project represents the most significant investment in the Royal Canadian Airforce (RCAF) in more than 30 years.
  • These aircraft will be essential for protecting the safety and security of Canadians, enhancing Arctic sovereignty, allowing Canada to meet its NATO and NORAD obligations, and boost our interoperability with key allies and partners.
  • Which is why, in these Main Estimates, National Defence is requesting $247.1 million to continue this important project.
  • Specifically, these funds will advance infrastructure activities in support of Fighter Squadron Facility (FSF) construction in Bagotville, QC, and Cold Lake, AB.
  • In fact, site preparation activities have already started at these locations.
  • Construction of these facilities will generate over 900 jobs in the surrounding regions.
  • In parallel, the Defence of Canada Fighter Infrastructure Project (DCFI) will ensure the Canadian Armed Forces are ready to receive the new fleet.
  • These funds will further support initial acquisition activities for the purchase of the 88 F-35 advanced fighter jets, as well as Canada’s annual contribution to common development costs of the aircraft.
  • We continue advancing towards the acquisition of an initial tranche of aircraft, with the first deliveries anticipated to begin in 2026.
  • We are confident this procurement will deliver the capability needed for the RCAF, while providing high-value economic benefits for Canada’s aerospace and defence sector for decades to come.

Project Overview

  • FFCP will successfully acquire and transition into service 88 advanced F-35A fighter aircraft along with the associated equipment, weapons, infrastructure, information technology, and sustainment, including training and software support.
  • Three variants of the aircraft are being produced. The F-35A is the conventional takeoff and landing variant, whereas the B and C variants are the short take-off and landing and the carrier-based variants respectively.

Economic Benefits

  • Canada’s participation in the U.S.-led multinational Joint Strike Fighter Program has yielded approximately USD$3.5 billion in contracts for Canadian companies since 1997.
  • There are currently 36 contractors in Canada active on this project, contributing a wide-range of manufacturing and services to the global F-35 fleet.

Spending Details

Funding Request

  • In these Main Estimates, National Defence is requesting $247.1 million to continue initial acquisition activities for the purchase of 88 F-35 advanced fighter jets as well as infrastructure activities in support of Fighter Squadron Facility (FSF) construction.

How Funding Will Be Spent:

  • F-35 Production, Sustainment, and Follow-on Development Memorandum of Understanding (PSFD MOU) Payments ($170.7M): Funding for long lead material (equipment, products and systems that require months to years from order to delivery) to support production, and Canada’s annual contribution to common development costs.
  • Infrastructure Expenses ($61.2M):Cost for continued design work and site preparation for FSF construction.
  • Project Management Office (PMO) Expenses ($15.2M): Inclusive of military, civilian, supporting Other Government Department (OGD) salaries and operating expenses.

Next Operational Milestone(s):

  • First Aircraft Delivery to Canada: 2026 (first eight aircraft will be employed in the US for training of Canadian pilots).
  • First Aircraft Arrival in Canada: 2028
  • Initial Operational Capability: 2029

Project Deliverables to Date:

  • Long lead material procured to support production of initial quantity of Canadian aircraft in production lots 18 and 19.
  • Initial infrastructure designs and site preparation activity work required for the FSFs has been completed.   

Timeline and Project Budget:

  • Budget: $19 billion (excluding taxes)for acquisition.
  • Procurement: Canada has committed to an initial tranche of 16 F-35A aircraft via the PSFD MOU.
  • Delivery: The first aircraft will be delivered in 2026.
  • Initial Pilot Training: The initial aircraft will be located at the F-35A Pilot Training Center in Luke Air Force Base, Arizona, to enable the training of RCAF pilots while National Defence completes the necessary infrastructure to support aircraft delivery and commence operations in Canada.

Details

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

  • The JSF Program is a U.S.-led multinational cooperative effort to build an advanced combat aircraft equipped to fulfill multiple roles.
  • The objectives of the JSF program include: developing, producing, and sustaining the most advanced, affordable fighter for participants; 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 in 1997, and in 2006 became a partner in the PSFD MOU, which was renewed in 2021. The current PSFD MOU was renewed to December 2051.
  • To date, Canada has spent USD $809.8M to participate in the program. The most recent payment was for USD $97.3M.
  • 8 partner countries cooperate under the JSF PSFD MOU: Australia, Canada, Denmark, Italy, Netherlands, Norway, United Kingdom, and the U.S.
  • To date, there are 10 foreign military sales customers of the F-35: Belgium, Finland, Germany, Israel, Japan, South Korea, Poland, Singapore, Switzerland, and the Czech Republic.

Parliamentary Budget Officer Report

  • On 2 November 2023, the PBO published a report that encompassed analyses of the development, acquisition, operations, and sustainment, as well as disposal costs of the FFCP project.
  • In its report, the PBO estimates acquisition costs to be $19.8 billion (this is the current phase of the project) and for the total life-cycle cost to total $73.9 billion.
  • The PBO’s findings are largely aligned with those previously published by National Defence.
  • Canada’s historical contributions to the Joint Strike Fighter Program MOU (2006) was not included as part of PBO’s costing.

GBA Plus

  • New accessible infrastructure for the CF-35A will be designed to include GBA+ considerations, including safety and the equitable fairness of infrastructure such as washrooms, sleeping quarters, and cultural spaces. 

Indigenous Considerations

  • The requirement for federal departments and agencies to ensure a minimum of 5% of the total value of each and all department and agency contracts are awarded to Indigenous businesses does not apply to FFCP procurement. 
  • This commitment came into effect after FFCP’s release of its Request for Proposal, during the proposal evaluation phase. Furthermore, the FFCP procurement is conducted through Government-to-Government Arrangements (MOU and Foreign Military Sales Cases) and is therefore not subject to the set-aside Program for Indigenous Business.

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Defence of Canada Fighter Infrastructure (DCFI)

  • The Defence of Canada Fighter Infrastructure (DCFI) project will ensure that the Canadian Armed Forces are ready to receive 88 CF-35A fighter jets.
  • In these Main Estimates, National Defence is requesting $53.1 million to continue the concept and design work required, prior to the implementation of infrastructure upgrades at 12 locations across the country.
  • These funds will support the important progress we have already made on a number of these initiatives.
  • For example, we have started implementing IM/IT upgrades in Bagotville and Cold Lake. In FY24/25, these will include a bandwidth upgrade to 10Gb by Shared Services Canada (SSC) and the creation of a communications package.
  • In the near term, we also anticipate the design work for the Cold Lake Quick Reaction Alert (QRA) facilities to begin in summer 2024.
  • These important upgrades will generate regional employment near several Royal Canadian Air Force Wings and Northern locations and continue to be an important part of Canada’s NORAD modernization plan.

Project Overview

  • The DCFI project will upgrade airfields, electrical and IM/IT systems, build hangarettes, QRA facilities, maintenance facilities, storage warehouses, accommodations, and training facilities to support operations, personnel, and logistics.
  • 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.

Spending Details

Funding Request

  • In these Main Estimates, National Defence is requesting $53.1 million to continue the concept and design work required prior to the implementation of infrastructure upgrades at 12 locations across the country.

How Funding Will Be Spent:

  • Award of modified design build contract and begin design for Cold Lake Quick Reaction Alert (QRA) facility.
  • Change Order / Design start for Hangarettes in Cold Lake and Bagotville.
  • Demolition of Cold Lake Hangar 7.
  • Site studies, environmental and technical assessments for Cold Lake, Bagotville, Forward Operating Location (FOL) Inuvik and Deployed Operating Base (DOB) Comox.

Next Operational Milestone(s):

Current projected dates for upcoming work in Cold Lake:

  • Contract awarded for the Demolition of Cold Lake Hangar 7 in March 2024.  
  • Designated substances (hazardous materials) removal commenced in mid-April 2024, and will likely continue until Aug 2024. Projected completion is expected by Feb 2025.
  • Implementation work for power grid modernization is set to start in 24/25 with completion by 2027.
  • Early implementation of IM/IT upgrades for FY24/25 include a bandwidth upgrade to 10Gb by Shared Services Canada (SSC) and the creation of a communications package by end of May 2024. 
  • Technical studies, including building condition assessments, will begin in Summer 2024 and last until FY 25/26 for various facilities at Cold Lake.

Current projected dates for upcoming work in Bagotville:

  • Early implementation of IM/IT upgrades for FY24/25 includes bandwidth upgrade to 10Gb by SSC to be completed in FY24/25 and creation of a communications package to be completed by end May 2024.
  • Additional work in this space includes the construction of IM/IT connectivity redundancy, a new manhole and conduit system to complete the base’s west connectivity loop, both to be completed in May/June 2024.
  • Technical studies, including building condition assessments, will begin in Summer 2024 and last until FY 25/26 for various facilities at Bagotville.

Current projected dates for upcoming work in FOL Inuvik and DOB Comox:

  • Work in Inuvik planned to commence Summer 2024, includes an infrastructure options analysis (OA), Environmental Site Assessment (ESA)-Phase 1, Archeological Phase 1, utilities study, topological survey, wildlife and vegetation study, and Species at Risk (SAR) survey.
  • Comox studies planned to commence Spring 2024 are a geotechnical investigation, topological survey, utility study and Environmental Site Assessment (ESA) Phase 1.

Project Deliverables to Date:

  • Project Authority (PA) and Expenditure Authority (Dec 2022) for the following infrastructure elements:
    • Design and Implementation of Power Grid Modernization and IM/IT upgrades in Cold Lake and Bagotville
    • Design of the Cold Lake Quick Reaction Alert (QRA) facility
    • Design of the Hangarettes in Bagotville and Cold Lake
    • Design of the weapons storage and maintenance in Cold Lake and Bagotville
    • Identification/Options Analysis work for Fighter Infrastructure at the Forward Operating Locations (FOLs) and Deployed Operating Bases (DOBs) and tech training facilities, maintenance facilities warehousing and airfield rehabilitation at the main operating bases.
  • Contract award for demolition Hangar 7: March 2024.

Timeline and Project Budget:

  • Approved Project Budget: $7.3B (including taxes)
Project Timeline: The DCFI project is scheduled for Initial Operational Capability in 2029, with Full Operational Capability scheduled by 2032.

Details

  • 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, and
    • Forward Operating Location Iqaluit.

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Hornet Extension Project (HEP)

  • The Hornet Extension Project will help ensure that our CF-18 fighter aircraft continue to meet Canada’s NORAD and NATO commitments, until our replacement F-35 fleet is fully operational.
  • In these Main Estimates, National Defence is seeking $291.5 million to continue the implementation of key upgrades.
  • This spending, for example, will be used to deliver new radars, missiles and other equipment.
  • It also covers the production of modified CF-18 fighters for Squadron operations, and flight testing to confirm that new systems are functioning properly.
  • This project continues to provide benefits to the Canadian economy and aerospace sector.
  • Firms contracted under the project have committed to undertaking business activities equal to the value of their contracts.
  • This includes investments in cutting edge Research & Development projects, supply chain partnerships, and collaborative skills development.
  • This will result in direct benefits to Canadians by providing up to $800 million in investment into the Canadian economy.

Project Overview

  • This project will allow the Hornet fighter fleet to meet operational commitments, including to NORAD and NATO, until 2032, when the permanent fleet of F-35s is expected to be fully operational.
  • The Project is being implemented in two concurrent phases:
    • Phase 1: Focused on civilian aviation regulatory and Allied military interoperability upgrades on up to 88 aircraft, through:
      • New transponder and interrogator to discern friendly from enemy aircraft;
      • Cryptographic systems to ensure secure voice radios and satellite communications; and,
      • Targeting pod enhancements, new helmet night vision equipment, upgraded simulators and aircraft mission computers.
    • Phase 2: Focused on additional combat capability upgrades on 36 aircraft, through:
      • New sensors;
      • New weapons; and,
      • Enhanced survivability and improved mission planning and security systems.
    • 33 Phase 1 and 15 Phase 2 aircraft have been upgraded to date with the wiring modifications necessary for equipment installation.

Spending Details

Funding Request:

  • In these Main Estimates, National Defence is requesting $291.5 million to continue the implementation of enhancements and upgrades to the existing fleet of CF-18 fighter jets.

How Funding Will Be Spent:

  • Take delivery of the majority of remaining equipment including new radars, short range missiles and secure facilities.
  • Software development, flight testing and contractor modifications on aircraft.

Next Operational Milestone(s):

  • Initial Operational Capability to be achieved by end of June 2024.

Project Deliverables to Date:

  • Completed wiring modifications necessary for equipment installation on 33 Phase 1 and 15 Phase 2 aircraft.
  • Equipment delivered, including all new radios and transponders as well as initial new radars (8) and secure facilities (4).
  • Completed software development, flight testing and maintenance training for Initial Operational Capability.

Timeline and Project Budget:

  • Budget: $1.3B (excluding taxes)
  • Timeline: Scheduled to achieve Full Operational Capability milestone by end March 2026.

Fixed-Wing Search and Rescue (FWSAR)

  • 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 acquiring 16 new Fixed-Wing Search and Rescue aircraft (CC-295 Kingfisher) that will enable more effective search and rescue missions in all weather conditions.

In these Main Estimates, National Defence is requesting $62 million to support the continuation of this project.

  • Ground and flight testing is currently being conducted in Spain, the U.S., and Canada.
  • Five (5) aircraft are in Comox, BC, while ten (10) aircraft remain in Seville, Spain. These 10 are held in a preservation state and will be fully updated to the latest configuration prior to delivery to the four main operating bases.
  • The final aircraft will be accepted in the latter half of 2025 and we anticipate 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.

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.
  • As we work towards initial operational capability of the CC-295 Kingfisher, the Royal Canadian Air Force continues to focus on their ability to retain and replace personnel for the CC-130H, CC-130J, CH-149, and CH-146 communities.

Project Overview

  • The Government of Canada is acquiring 16 CC-295s to take over the search and rescue duties undertaken by legacy fleets, CC-115 Buffalo aircraft and CC-130H Hercules aircraft.
  • The CC-295 Kingfisher 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; and
    • Conduct searches across the full range of Canada’s search and rescue areas of responsibility.

Economic Benefit:

  • As part of the Request for Proposal, Airbus is required to reinvest 100% of the contract value into the Canadian economy.

Fixed-Wing Search and Rescue Aircraft Replacement Project – Spending Details

Funding Request:

  • In these Main Estimates, National Defence is requesting $62 million to continue funding the purchase of 16 CC-295 Fixed-Wing Search and Rescue Aircraft.

How Funding Will Be Spent:

  • Milestone payments for aircraft certification/qualification activities and additional work requests: ($25M).
  • Milestone payments for aircrew courseware and training ($20M).
  • Project Management Office (PMO) costs ($10M): Inclusive of military, civilian, supporting Other Government Department (OGD) salaries and operating expenses.
  • Milestone payment for the completion of Initial Support Readiness Verification (Comox) ($7M).

Next Operational Milestone(s):

  • Initial Operational Testing and Evaluation (IOT&E) for the Rescue Phase of the overall test campaign.

Project Deliverables to Date:

  • Canada has accepted 15 of 16 aircraft. The final aircraft will be accepted by Canada in 2025 once all qualification and certified processes have been completed.
  • Five aircraft are in Comox, British Columbia, and the remainder are in Spain. More aircraft will be ferried to Canada as operating bases transition to the CC-295.
  • Certification testing for several campaigns – including low-level flight, cold soak operations, computed air release point and Canadian runway friction index testing – have been conducted.
  • Aircrew Initial Cadre Training and Maintenance Conversion Training is underway in Comox, British Columbia.
  • Initial Operational Testing and Evaluation (IOT&E) is underway.

Timeline and Project Budget:

  • Contract Value: currently $2.9B and up to $5.9B (including taxes).
  • Initial Operational Capability (IOC) is anticipated in 2025-2026.
  • Final Operational Capability (FOC) is anticipated in 2029-2030.

Details

Delays in achieving Initial Operational Capability (IOC)

  • IOC was initially 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.

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Canadian Multi-Mission Aircraft (CMMA)

  • To enable Canada to credibly defend its interests, at home and abroad, and sustain a technological advantage over potential adversaries we are acquiring up to 16 P-8A Poseidon aircraft for the Royal Canadian Air Force.
  • In these Main Estimates, National Defence is requesting $606 million to support the continuation of this project.
  • The vast majority of this funding ($551 million) will be used towards scheduled payments for the approved Foreign Military Sales (FMS) with the United States Government.
  • The FMS case will allow National Defence to finalise this procurement quickly, in order to replace the aging CP-140 Aurora, which have been in service for more than 40 years.
  • The P-8 Poseidon is a proven capability that is operated by several of our defence partners, including all other Five Eyes nations, as well as Norway and Germany. 
  • It is also the only currently available aircraft that meets all Canadian Multi-Mission Aircraft operational requirements, as there is no alternative on the market today.
  • In fact, the first aircraft is scheduled for delivery in 2026.
  • Ultimately, the P-8A Poseidon will provide the Canadian Armed Forces with a modern, long-range, crewed maritime patrol aircraft, specialized in anti-submarine and anti-surface warfare.

Project Overview

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

Economic Benefits:

  • As part of the procurement, through Industrial Technological Benefits, Boeing will make targeted investments across Canada, with the potential to create up to 3,000 jobs annually and contribute at least $358 million annually to Canada’s GDP over 10 years.
  • Boeing will open an innovation centre in Montreal, invest in research centres, and develop partnerships with universities across Canada.

Spending Details

Funding Request

  • In these Main Estimates, National Defence is requesting $606 million to continue funding the purchase of 14 P-8A Poseidon multi-mission aircraft (with an option for up to two additional aircraft).

How Funding Will Be Spent:

  • Scheduled payments for the approved Foreign Military Sales to the United States Government ($551M).
    • These payments will support the production of Canada’s P-8A aircraft, such as training devices.
  • Infrastructure site studies and design ($55M).
    • Efforts to be undertaken in preparation of the permanent infrastructure solution, as well as development and implementation of interim training facilities.

Next Operational Milestone:

  • Eight RCAF personnel to be posted to Jacksonville, FL in Fall 2024 to undergo training with United States Navy (USN) to become P-8A Instructors. This will allow Canada to access the USN training program to support delivery of the Canadian P-8A.

Project Deliverables to Date:

  • The CMMA project is in the early stages of implementation, as Project Approval was received in November 2023.
  • Activities are progressing well, with deliverables expected to commence early next Fiscal Year, in support of the first P-8A aircraft arriving in 2026.

Timeline and Project Budget:

  • Project Cost: Estimated at $10.6 billion (including taxes):
    • 14 aircraft with an option for up to two additional aircraft, associated support and test equipment, training devices, training services, maintenance and engineering support, materiel support, initial weapons, expendables (i.e., flares and sonobuoys), required infrastructure construction and/or changes, and sustainment set-up.
  • First Aircraft Delivery: 2026
  • Initial Operational Capability: 2028
  • Full Operational Capability: 2033

Strategic Tanker Transport Capability Project (STTC)

  • Strategic airlift is a critical capability for the Canadian Armed Forces (CAF) to conduct and sustain operations at home and abroad.
  • That is why, to replace the CC-150 Polaris, Canada is acquiring nine CC-330 aircraft under the Strategic Tanker Transport Capability (STTC) project.
  • This project involves a mix of new and used aircraft which will be converted to perform multiple tasks, such as in-flight refueling, as well as providing personnel and cargo lift.
  • In these Main Estimates, National Defence is requesting $511.7 million to support the continued implementation of this important Capability project.
  • To progress this project, this year, our funding is focused on the continued procurement of used aircraft as well as in-service support for the interim CC-330 Husky fleet as it conducts operational missions for the RCAF.
  • Two additional used aircraft are to be transferred to Canada in Fall 2024.
  • We remain confident that Canada will be provided with a strategic tanker transport capability that will support the Canadian Armed Forces for years to come.

Project Overview

  • The Strategic Tanker Transport Capability project will acquire a new fleet of aircraft to replace the CC-150 Polaris, which currently has an estimated life expectancy to 2027.
  • This project will include the acquisition of four new Airbus A330 Multi Role Tanker Transport aircraft and five used Airbus A330-200 aircraft, four of which will be converted to Multi Role Tanker Transport aircraft, and one converted for strategic Government of Canada transport.
  • The Aircraft will conduct multiple tasks, such as:
    • In-flight refueling of other aircraft;
    • Military personnel and cargo airlift;
    • Medical evacuations; and,
    • Strategic transport of Government of Canada officials.

Spending Details

Funding Request

  • In these Main Estimates, National Defence is requesting $511.7 million to continue funding the acquisition of nine CC-330 aircraft under the Strategic Tanker Transport Capability (STTC) project.

How Funding Will Be Spent:

  • Used Aircraft Procurement ($114M): Canada will purchase the third and fourth (of five) used aircraft 2024-2025.
  • Main Acquisition Contract ($350M): Milestone payments will be made against STTC acquisition contract.
  • Interim In-Service Support ($39M): To support operations of the first two used CC-330 Husky aircraft.
  • Remaining funding (approximately $8.7M) will go towards project personnel costs, infrastructure studies and design, personnel and aircrew training, travel, and used aircraft inspections.

Next Operational Milestone(s):

  • Two additional used aircraft are to be transferred to Canada in Fall 2024. One will be transferred to Airbus Defence and Space in Spain to be modified to the Mutli-Role Tanker Transport (MRTT) configuration.
  • Critical Design Review of the final configuration of the STTC aircraft is scheduled to occur in mid-October 2024.

Project Deliverables to Date:

  • Two used A330-200 aircraft, designated CC-330 Husky, were delivered to Canada on 31 August 2023 and 16 February 2024. These aircraft are performing strategic airlift missions for National Defence/the Royal Canadian Air Force.
  • Canada has trained and qualified CC-330 aircrew, including pilots, cabin crew and loadmasters, to support 1 strategic airlift Line of Tasking.

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Timeline and Project Budget:

  • Project Budget: Estimated total project cost is $10.2 billion (including taxes).
  • Project Timeline:
    • First Used Aircraft Delivery: 2023
    • Delivery of First Multi-Role Tanker Transport (MRTT) configured CC-330 Husky: 2027/2028
    • Initial Operational Capability: 2028/2029
    • Final Operational Capability: 2032/2033

Economic Benefits:

  • This project has the potential to contribute over $145 million annually to Canada’s GDP, and create up to 1,050 jobs annually for Canadian industry over a thirteen-year period.

Details

Modifications

  • New aircraft in the fleet will start out as A330-200 model aircraft and come off the assembly line and then undergo a conversion to achieve the final STTC configuration.
  • Used aircraft will undergo the same conversion process to produce an equivalent STTC aircraft.
  • As part of the conversion, some of the modifications that will be undertaken include:
    • Upgrading to a suite of secure communications capabilities, secure operational data links, and already certified self-protection system to allow the RCAF to safely employ these aircraft in areas of elevated threat and risk.
    • Adding air-to-air refueling capabilities, specifically capable of refueling a wider range of allied aircraft simultaneously and without reconfiguration, tasks that the current fleet cannot do.
    • Expanded Aeromedical Evacuation Capability - the CC330 aircraft will have the ability to be reconfigured to contain an expanded and enhanced Aeromedical Evacuation configuration, in which trained medical personnel will have the equipment they need to deliver care to patients.

Infrastructure

  • New infrastructure will be required to house the new fleet of aircraft. The western and northern locations remain to be determined. CFB Trenton will serve as the Eastern Main Operating Base.
  • National Defence is in the process of analyzing infrastructure options and assessing schedule, cost, scope, risk, operational benefits, personnel and logistics implications of the various options to inform the decisions for permanent operating locations in the west and in the north. A decision is anticipated in spring 2024 for the western operating base and summer/fall 2024 for the northern location.
  • The RCAF has selected Ottawa International Airport as the location for interim operations of the first two used CC-330 aircraft.

Armoured Combat Support Vehicles (ACSV)

  • In September 2019, the Government awarded a contract to General Dynamics Land Systems-Canada to acquire 360 new armoured combat support vehicles.
  • These vehicles will offer critical combat support in high-threat environments by serving as command posts, ambulances, mobile repair, vehicle recovery, and engineering support.
  • In these Main Estimates, National Defence is requesting $249 million to continue moving ahead on this project.
  • The majority of these funds will be used for payments for delivery of 70 ACSVs, with the Troop Cargo variants along with the first Command post variant to be delivered to the Canadian Army by the end of this fiscal year.
  • These vehicles will provide Canadian Armed Forces members with the protection and mobility needed to successfully conduct operations at home and abroad.
  • This project is helping sustain 1,650 jobs in London, Ontario, and more than 8,500 defence industry jobs in the supply chain across Canada.

Donations to Ukraine

  • To date, Canada has donated over 200 Canadian-made Armoured Personnel Carriers, eight commercial pattern armoured vehicles, and 39 armoured combat support vehicles, which have all now been delivered to Ukraine.
  • An additional 50 vehicles are scheduled to be donated to Ukraine starting the summer of 2024 through to 2025. 
  • The first 10 of these will be Ambulances that will be replaced later under the existing National Defence contract.
  • The remaining 40 vehicles will be produced specifically for Ukraine under a Canadian Commercial Corporation contract.

Project Overview

  • The new and modern fleet of ACSVs will provide ambulances, mobile repair and vehicle recovery vehicles, as well as engineer support vehicles and command posts, for both domestic and international operations.
  • They will provide a high degree of maneuverability and protection to its crew for domestic and international operations and training.
  • The vehicles are based on the existing Light Armoured Vehicle 6.0 platform, which will reduce training and sustainment costs, and maximize the availability of common spare parts.

Economic Benefits:

  • This project is helping to sustain 1,650 jobs in London, Ontario, and more than 8,500 defence industry jobs in the supply chain across Canada.
  • In addition, the agreement with General Dynamics requires that the company reinvest 100% of the value of the contract back into the Canadian economy.

Spending Details

Funding Request:

  • In these Main Estimates, National Defence is requesting $249 million to continue funding the purchase of 360 Armoured Combat Support Vehicles (ACSVs) in eight variants.

How Funding Will Be Spent:

  • Payments for delivery of 70 ACSVs ($215M).
    • Ambulance, and Troop Cargo variants of the ACSV along with the first Command Post Variants are to be delivered to the Canadian Army by the end of this Fiscal Year.
  • Milestone Payments for Design and Development for the remaining five ACSV variants ($27M).
    • Design and Development of the Electronic Warfare, Maintenance Recovery Vehicle, Engineer, Fitter/Cargo and Mobile Repair Team variants of the ACSV continue, and this funding supports milestone payments for those efforts.
  • Project Management Office (PMO) Costs ($7M).
    • Inclusive of military, civilian, supporting Other Government Department (OGD) salaries and operating expenses.

Next Operational Milestone(s):

  • The first Command Post vehicle delivery to the Canadian Army is scheduled for the fall of 2024. This would be the third variant delivered to the Canadian Army.
  • The Electronic Warfare and Maintenance Recovery Vehicle variant deliveries are anticipated to commence in 2026.

Project Deliverables to Date:

  • ACSV deliveries started in October 2023. As of April 2024, over 30 vehicles have been delivered to the Canadian Army:
    • 28 of the 49 Ambulances have been fielded.
    • 10 of the 41 Troop/Cargo Vehicles have been fielded.
  • Initial Cadre Training for the Ambulance and Troop/Cargo Vehicle variants has been completed with the Canadian Army.

Timeline and Project Budget:

  • Project Budget: Estimated total project cost is $2.5 billion (excluding taxes).
  • Delivery: First vehicles were produced in December 2020, with deliveries continuing through to FY 2027/2028.
  • Project Timeline:
    • First ACSV Delivery: 2023
    • Initial Operational Capability: 2024
    • Final Operational Capability: 2027

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CH-148 Cyclones

  • It is imperative that our members in uniform have the equipment they need to fulfill their missions.
  • This includes the CH-148 Cyclone, a capable maritime helicopter that operates alongside our naval fleets.
  • Which is why, in these Main Estimates, National Defence is requesting $21.2 million to continue the implementation of the Maritime Helicopter Project.
  • This will include enhancements of the CH-148 Cyclone system as well as the testing and acceptance of simulators and other training devices.
  • The Cyclone can be used for surface and sub-surface surveillance, search and rescue missions, utility and tactical transport at sea and overland, and more.
  • To date, 27 Cyclone helicopters have been delivered, and the last one is scheduled for delivery in 2025.
  • National Defence remains committed to providing the Canadian Armed Forces with modern equipment, while also ensuring the best value possible for Canadians.

If pressed on main rotor blade issues:

  • The safety of our personnel is paramount.
  • We are aware of a manufacturing defect affecting some of the main rotor blades installed on the in-service CH-148 Cyclones.
  • As soon as a potential issue was identified, we immediately conducted an inspection and removed any affected rotor blades from service.
  • We have also returned the affected blades to the manufacturer for replacement, and it is anticipated that this issue will be completely resolved by September 2024.

Project Overview

  • The Government of Canada is procuring 28 CH-148 Cyclone helicopters. The CH-148 is a maritime helicopter that serves several key roles, including anti-submarine and anti-surface warfare, disaster relief, counter-narcotic operations, fisheries and pollution patrols, search and rescue missions, and international peacekeeping.
  • The project includes associated logistical and in-service support, spare parts, modifications to the Halifax-class ships and construction of a new training facility.

Spending Details

Funding Request:

  • In these Main Estimates, National Defence is requesting $21.2 million to continue the implementation of the Maritime Helicopter Project, including CH-148 Cyclone system enhancements and training suite acceptance.

How Funding Will Be Spent:

  • Electronic warfare/surveillance system engineering and testing.
  • Testing and acceptance of simulators and other training devices.
  • Procurement of night vision system with compatible lighting for the ship flight deck.

Next Operational Milestone(s):

  • Final helicopter delivery (28th) is expected in Spring 2025.

Project Deliverables to Date:

  • 27 helicopters delivered.
  • 12 frigates modified to support CH-148 Cyclone operations.
  • The Maritime Helicopter Training Centre was set up under the in-service support contract in Shearwater, N.S., and has been in operation since 2018. The Centre trains all maritime helicopter pilots, mission systems operators and maintainers.

Timeline and Project Budget:

  • Project Budget:
  • Acquisition Cost: $3.3 billion
  • In-Service Support until 2038: $5.8 billion
  • Project Details:
  • Contract award: 2004
  • First delivery: 2015
  • Deliveries to date: 27Footnote *
  • Final delivery: Spring 2025
  • Full operational capability: 2026

Details

Main Rotor Issue

  • In June 2022, the aircraft’s Original Equipment Manufacturer (OEM) notified National Defence of an airworthiness risk affecting 46 main rotor blades installed on in-service CH-148 Cyclones.
  • There are reoccurring preventive inspections being conducted until all of the suspect blades are returned to the OEM.
  • As of 1 May 2024, 3 blades are affected on one aircraft that is currently undergoing inspection.

Tail Cracking Issue

  • In November 2021, during routine maintenance, National Defence detected cracks in the tails of 21 CH-148 Cyclone aircraft. Repairs were undertaken immediately on all aircraft with the support of the manufacturer, Sikorsky.
  • Sikorsky has worked closely with National Defence technicians and engineers since the cracks were found and has made the determination that the cracks are the result of structural loads caused by the Electronic Support Measures and Sat/Com antenna mounts while in flight.
  • Sikorsky has identified a long-term design fix consisting of replacing the structural area experiencing the extra stress with a more robust design through the use of a thicker material.
    • Status of Implementation of the Long-Term Fix: We are waiting on parts to implement the fix. Completion of the fleet is estimated to be 2027. Even though analysis has shown the design change to be sufficient, the 50-hr inspection is being made a permanent feature to collect actual data for predicting fatigue life.

Corrective Action since 2020 Accident

  • Stakeholders from DND and the Contractor worked together to design a software change to prevent re-occurrence of the situation that led to the crash along with enhancements to the annunciation system to increase pilot awareness. Ground testing has been very successful and flight testing is scheduled for this June.

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