Procurement

• National Defence is procuring 15 new Canadian Surface Combatant ships, which will generate more than 10,000 jobs over the build period and at least $31 billion in GDP.
• These ships will be capable of operating independently, alongside our allies and partners, and will deliver the combat power to meet future threats at sea and in coastal environments.
• In these Main Estimates, National Defence is requesting $1.4 billion to continue ship design work, including finalizing engineering data and information required for the vendor to begin construction of the ship.
• Additionally, these funds will be used to purchase long lead materiel that is crucial to the ship’s function and requires significant production time, like an engine as a general example.   
• National Defence is working with industry to finalize the selected ship design, and we expect to cut steel on the first ship in the 2024 timeframe, with anticipated delivery in the early-2030s.
• This project will promote investments in innovation, supplier development, and will create export opportunities with a focus on cyber security, clean technology, and the marine sector. 

If pressed on timelines and delays:

• The ongoing COVID-19 pandemic has impacted all project schedules due to temporary shipyard closures and supply chain challenges.
• However, contractor work was able to continue as the current phase of the project, which consists of progressing the ship design, was feasible through remote work arrangements.
• Following the delivery and acceptance of the last ship, National Defence anticipates full operational capability of the new fleet in late 2040s.
• We will continue to work with industry and partners to find efficiencies, accelerate project timelines, and update costs as the design progresses and construction proceeds.

• Canada’s two Joint Support Ships will provide crucial at sea replenishment capabilities and will be a major addition to the Royal Canadian Navy fleet.
• The Joint Support Ships will have military capabilities, enabling the Navy to defend Canada and contribute to international peace and security around the world in any threat environment.
• For example, these ships will provide essential supplies and fuel to our Naval Task Groups and Allies’ ships, increasing their range and endurance.
• That is why, National Defence is requesting $690.3 million in these Main Estimates to continue construction of both ships, including the procurement of long lead items such as engines and radars, which have significant lead times for production.
• Construction of the second JSS commenced on 16 May 2022, and these funds will support sustaining that effort.  
• This project will directly benefit Canadians by sustaining nearly four thousand jobs and providing $2.4 billion in investment into the Canadian economy.

If pressed on the interim solution (MV Asterix):

• The Asterix is an interim solution while the Joint Support Ships are being built, and ensures there is no capability gap.
• As the Royal Canadian Navy awaits full operational capability of the new Joint Support Ships in 2026, the Asterix is a cost-effective, reliable interim solution, and ensures there is no capability gap.
• For example, this fall, the MV Asterix operated alongside the Royal Canadian Navy and other countries during Operation CUTLASS FURY, the largest Canadian-led naval exercise.
• While the Asterix is not a long-term solution, it ensures that the Royal Canadian Navy’s effectiveness and readiness is not compromised.

• National Defence is in the process of acquiring six Arctic and Offshore Patrol ships.
• This project is helping to revitalize the Canadian shipbuilding industry by sustaining 2,000 jobs annually.
• These vessels will also enhance the Navy's ability to support surveillance of Canada’s three oceans, and to conduct a range of missions worldwide, including humanitarian assistance.
• Additionally, these vessels can operate in up to 1 meter of ice, allowing for a greater Canadian Armed Forces presence in the North.
• National Defence is requesting $340 million in these Main Estimates to continue funding construction efforts during the implementation phase activities.
• This includes continuing construction on ships three to six, completing associated infrastructure construction, and work on the fueling facility in Nanisivik.

If pressed on timelines and delivery:

• Despite the circumstances of the COVID-19 pandemic, progress remains on track to deliver these ships.
• In fact, National Defence has already accepted the delivery of two ships, the HMCS Harry DeWolf and the HMCS Margaret Brooke, and we expect the delivery of all ships by 2025.
• The HMCS Harry DeWolf, entered into service on July 31, 2021, and recently completed a circumnavigation of North America, which included a transit of the entire Northwest Passage, the first Royal Canadian Navy ship to do so since 1954.
• A third ship, the HMCS Max Bernays, is in the water, and National Defence looks forward to its delivery this fall.  
• As the production of ships continues, National Defence is identifying and maximizing efficiencies with the construction of each subsequent ship.
• For example, the cost of the second vessel delivered was significantly lower than the cost of the first, and it is expected that we will see further cost reductions for future ships.

• To ensure the viability of our submarines so they can operate into the 2030s, National Defence is currently undertaking a modernization of Canada’s fleet of four Victoria-class submarines.
• As such, National Defence is requesting $19.6 million in these Main Estimates to continue modernization efforts, which have already begun.
• For example, these funds will continue the definition phase of modernizing critical systems and infrastructure in the submarines, including the periscope, galley, sonar, Atmospheric Monitoring System, the propeller, and the hull form.
• Overall, this modernization will improve submarine living and deployment conditions, joint force capability with onshore operations, and ensure survivability against future threats.
• This maintenance and modernization project will support jobs across Canadian shipyards.
• The supply chains for equipment will also provide opportunities for Canadian small and medium sized businesses.
• Additionally, this modernization work will benefit the Canadian economy by supporting jobs across Canada, both at shipyards and through supply chains.

If pressed on AUKUS alliance:

• Canada maintains strong military relations and intelligence sharing agreements with AUKUS countries, regardless of the alliance.
• As a Pacific nation, Canada will continue to play an active role in the region, and maintain a persistent presence to support peace, security, and Canadian interests in the region.

• National Defence is modernizing core Royal Canadian Navy capabilities through the Point Defence Missile System Upgrade project for our Halifax-class frigates.
• This project involves the development and acquisition of a new missile, which will be integrated into our Halifax-class frigates’ current defence system.
• In these Main Estimates, National Defence is requesting $25.3 million to support this project to procure eight Evolved SeaSparrow Missile Block 2, and to continue integration and test events.
• This funding will also pay for Canada’s contributions to the NATO SeaSparrow Consortium production support costs.
• The first six missiles were delivered to Canada in June 2021; testing and trailing of the missiles resulted in a return to the Original Equipment Manufacturer in fall 2021 for additional updates.
• The missiles will be updated and returned to Canada in summer 2022 for the first of class firing in fall 2022.
• The delivery of more missiles will commence in fall 2022, with delivery of all missiles expected by 2028.
• The Canadian economy has benefited directly from this project, by receiving over $60 million USD through work performed by Honeywell Canada during the definition phase of the project.

• A modern fighter aircraft fleet is vital to protecting North American airspace and supporting our defence and security efforts at home and abroad.
• That is why this Government launched an open and transparent competition to acquire 88 new, advanced fighter aircraft.
• The process, led by Public Service and Procurement Canada, has oversight by an independent fairness monitor and a third-party reviewer.
• We are currently in the finalization phase of the project with the top-ranked bidder: the United States government and Lockheed Martin, for the F-35 fighter jet.
• This means the bidder must successfully demonstrate that a contract will meet our criteria, such as value for money, protection against risks, and delivery assurances.
• In these Estimates, National Defence is seeking $34.7 million to complete the finalization phase of the procurement process.
• As well, the requested funds will support the continuation of infrastructure design activities of new Fighter Squadron Facilities at Canadian Forces Bases in Cold Lake and Bagotville.

If pressed on timelines:

We continue to work towards awarding a contract in 2022, with delivery of the first aircraft as early as 2025.

• National Defence is taking concrete steps to ensure that the Royal Canadian Air Force can protect North American airspace and continue to fulfil NORAD and NATO commitments.
• The Hornet Extension Project will ensure that Canada’s Hornet fighter fleet can continue to meet these commitments until 2032, when the replacement fleet is expected to be fully operational.
• In these Estimates, National Defence is seeking $170.6 million to begin taking delivery of a portion of the new equipment, and to conduct flight testing to confirm the proper functioning of new systems.
• This project will directly benefit Canadians by providing up to $800 million in investment into the Canadian economy.
• National Defence will continue to move forward with the project as we navigate impacts of the pandemic on supply chains and availability of personnel.

• The Canadian Armed Forces is proud to provide life-saving search and rescue services.
• This is why we are procuring 16 new Fixed Wing Search and Rescue aircraft, which will provide improved search and rescue capabilities across Canada, including in the Arctic.
• In these Estimates, National Defence is seeking $186 million to support progress on this project.
• For example, these funds will be used to continue aircraft production and certification, along with the initial training for aircrew and maintenance teams.
• We continue to advance the project while adjusting to the global pandemic and unforeseen issues, and now anticipate the initial operational capability in 2025-2026.
• In the meantime, we will continue use of existing fleets to ensure there is no gap in Search and Rescue coverage across Canada including the North and the High-Arctic.
• We will continue to work in collaboration with Airbus to ensure that the issues are addressed, and the best value is provided to Canadians.

If pressed on delivery delays:

• These delays are due to the extended timelines associated with capability design and development, along with other factors such as unforeseen technical issues and the impacts of COVID-19.
• While the delay is unfortunate, these types of issues are not unusual given the complexity of the capability being developed.
• We are taking appropriate actions to ensure life-saving search and rescue services will continue to be available for those in need across the country.

• Strategic airlift is a critical capability for the Canadian Armed Forces to conduct operations at home and abroad.
• That is why our Government is acquiring a new fleet of strategic airlift aircraft, known as the Strategic Tanker Transport Capability, to replace the CC-150 Polaris.
• In these Estimates, National Defence is requesting $10.1 million to support project management costs, including conducting preliminary infrastructure assessments.
• This new fleet of aircraft will augment our current capabilities by performing multiple tasks, including in-flight refuelling of other aircraft, personnel and cargo airlift, and medical evacuations.
• The project is currently in its Definition Phase and we anticipate a contract to be awarded in the 2022-2023 timeframe.
• National Defence will continue to progress this project and ensure that Canada has the strategic airlift capabilities to enable both domestic and international operations.

• National Defence is working to acquire a new medium altitude, long endurance, and armed Remotely Piloted Aircraft System.
• This system will provide the strategic surveillance, intelligence, and precision strike capabilities critical for addressing modern security challenges.
• In these Estimates, National Defence is requesting $11.7 million to produce the Request for Proposal for this project, conduct the bid evaluation, and plan for associated new infrastructure.
• This infrastructure will include new hangars for the aircraft, and a ground control centre to house the control stations,
• We anticipate awarding the contract in fiscal year 2023/24, with delivery of the first system in fiscal year 2025/26 to 2026/27.
• This procurement process is being led by Public Service and Procurement Canada with oversight by an independent fairness monitor.
• We are confident this competitive process will deliver the best results for the Canadian Armed Forces, while providing economic benefits for Canada.

If pressed on the precision strike capabilities:

• While this Remotely Piloted Aircraft System will possess a precision strike capability, it will only be armed when necessary for the pre-approved, assigned task.
• At all times, employment of precision strike capability will adhere to the Law of Armed Conflict, as well as any other applicable domestic or international laws.

• 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 Estimates, National Defence is requesting $284 million to support the continuation of this project.
• These funds will be used to qualify and produce the first three models of the vehicle, commence training an initial cadre of Canadian Armed Forces instructors, and acquire spare parts.
• 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.
• These vehicles will provide Canadian Armed Forces members with the protection and mobility needed to successfully conduct operations at home and abroad.

• In February 2015, the Government awarded a contract to General Dynamics Land Systems-Canada to acquire 66 state-of-the-art Light Armoured Vehicle surveillance systems.
• In these estimates, National Defence is requesting $155.9 million to pay for the delivery of the first vehicles, surveillance systems, required spare parts, and technical publications.
• We anticipate the first delivery of these vehicles in August 2022, and have already scheduled initial reliability testing in Canada for the fall.
• This project is sustaining approximately 450 engineering and manufacturing jobs in London, Ontario and throughout General Dynamics Land Systems supply chain in Canada.
• This project will provide the Canadian Army with a modern system that will facilitate timely and accurate intelligence in order to achieve success in operations at home and abroad.