Procurement

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Arctic and Offshore Patrol Ships (AOPS) *Including Nanisivik Naval Facility

  • National Defence is committed to enhancing Arctic capabilities and supporting Canadian sovereignty in the North.
  • That is why National Defence is procuring six new Arctic and Offshore Patrol Ships, designed to operate in previously inaccessible northern waters.
  • Three of the Arctic and Offshore Patrol Ships are already in the water, and we anticipate the delivery of the remaining three by 2025.
  • We are aware of the technical issues. Addressing these is our priority to ensure our men and women in uniforms remain safe.
  • Technical issues are not unusual during the introduction period of a new capability.
  • As issues are resolved, the corrections will be taken into account during the production of follow-on vessels.
  • National Defence will continue to advance this project, which supports over 2,000 jobs in the Canadian economy.

If pressed on cost increases:

  • Ship production is complex and relies on multiple activities, each having forecasted cost and availability of material and labour.
  • The increased cost is due primarily to accumulated costs of the pandemic, higher than forecasted inflation, and longer lead time in procuring parts.

If pressed on delays for the Nanisivik Naval Facility:

  • Infrastructure work in the Arctic poses many challenges, including complex logistics.
  • Work is ongoing to complete the Nanisivik Naval Facility, which will operate as a docking and refueling facility to support the Arctic Offshore Patrol Ships and other government vessels.
  • We are working to find solutions that could allow the Naval Facility to begin operations in 2025

If pressed on the heating of the Nanisivik Naval Facility’s fuel tanks:

  • This facility is a strategic asset for Canada and will be used not only by Defence, but also by the Coast Guard.
  • Operating in the High Arctic for four to six weeks is a critical milestone towards operating for longer periods.
  • National Defence is working on a longer term plan to lengthen the operating season, once success and capabilities have been established with the current model.

Key Facts

  • Budget: Up to $5.0B
  • Timeline:
    • July 31, 2020: The first AOPS vessel was delivered. 
    • 2021: HMCS Harry DeWolf completed a circumnavigation of North America, including a transit of the Northwest Passage.
    • August 15, 2022: Production of the sixth and final ship for the RCN began.
    • September 2, 2022: The third ship, HMCS Max Bernays, was accepted.
    • 2025: Delivery target for the final ship.
  • 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.

Details

Arctic and Offshore Patrol Ships

  • Built at Irving Shipbuilding Inc., Halifax.
  • The AOPS will be able to operate in up to one meter of first-year ice, which is the ice condition experienced annually in the various waterways of the Canadian Arctic between June and October. Ice capability provided by the AOPS will provide a greater and longer Canadian Armed Forces presence in the Canadian North.
  • This will allow the Royal Canadian Navy (RCN) to have unescorted access to areas of the Arctic that were previously inaccessible.
  • These vessels are able to perform a wide variety of tasks, including:
    • Surveillance operations of Canadian waters;
    • Support of sovereignty operations;
    • Support to international operations;
    • Humanitarian assistance, emergency response and disaster relief;
    • Search and Rescue.
  • Timeline:
    • Ship 1 delivered on: July 31, 2020
    • Ship 2 delivered on: July 15, 2021
    • Ship 3 delivered on: September 2, 2022
    • Ship 4 anticipated delivery: 2023
    • Ship 5 anticipated delivery: 2024
    • Ship 6 anticipated delivery: 2025
  • Indigenous Relations:
    • Each AOPS will be affiliated with a region of Inuit Nunangat. These affiliations are a long-standing naval tradition and deeply valued by the sailors and the civilian communities.
      • HMCS Harry DeWolf formally affiliated with the Qikiqtani region of Nunavut: May 2019.
      • HMCS Margaret Brooke formally affiliated with the Nunatsiavut region on September 21, 2022 in Hopedale, Labrador.
      • The remaining ships will be affiliated with the following regions in Inuit Nunangat: Kitikmeot; Kivalliq; Inuvialuit; Nunavik.
    • Over the next several years, the six vessels and their crews will build ties with the communities in these regions, founded on mutual respect, during routine operations in Canada’s Northern waters.
    • HMCS Margaret Brooke participated in Op NANOOK TUUGAALIK (Op NA-TU) and NUNAKPUT (Op NA-NU) from August 2, 2022 to September 29, 2022.
      • One of HMCS Margaret Brooke’s central tasks on Op NANOOK was the development of meaningful and longstanding relationships between the ship and its affiliated region.
      • HMCS Margaret Brooke conducted a visit to Hopedale, NL during which they conducted an affiliation ceremony with the Nunatsiavut Government. This ceremony was of great importance as it strengthened the relationships between the community and the ship.

Nanisivik Naval Facility

  • In 2007, the Government announced its plan to convert the deep-water port at Nanisivik to a logistics hub, which will operate as a docking and refueling facility for the Royal Canadian Navy and other government vessels, and serve to enhance the Navy’s presence in the North.
    • The construction of the Nanisivik Naval Facility in Nunavut is nearing completion. The primary role of the facility will be to refuel the Royal Canadian Navy’s Arctic and Offshore Patrol ships during the navigable season, while also continuing to provide the Canadian Coast Guard with refueling support and storage capacity for re-supply missions.
  • The Auditor General’s report on Arctic Waters Surveillance noted that the Nanisivik Naval Facility (NNF) would not be equipped with heated fuel tanks, limiting its period of operation to approximately 4 weeks per year.
    • As an Arctic facility, the operational year is usually from early August to as late as October, depending on ice-coverage and temperatures. As long as the waters are navigable and the facility is accessible, the site will be open to ships. There are a number of factors which contribute to the length of the facilities operating season.
    • The RCN have agreed with the Government of Nunavut to not break ice near the facility in order to protect community access to frozen waters and protect wildlife, therefore access is restricted to the RCN’s operational season, which is typically between four and six weeks.
    • As well, the NNF requires fuel to be shipped in at the start of the season and removed at the end of the season. The fuel barge cannot typically access NNF until early August because of ice coverage. Depending on the temperatures in late September, fuel may start to thicken as the fuel tanks and lines are not heated, limiting the Navy’s ability to use the fuel. At that time the fuel must be removed from the tanks.
    • National Defence is working on a longer term plan to lengthen the operating season, once success and capabilities have been established with the current model.

CP-140 Aurora Long-Range Patrol Aircraft

  • The CP-140 Aurora is Canada’s primary surveillance aircraft.
  • It is used for multiple types of missions over land and water, ranging from long range surveillance and reconnaissance in support of military operations to assisting other government agencies to combat illegal fishing, pollution, drug trafficking.
  • That is why National Defence is modernizing the Aurora fleet and extending the life of the 14 aircraft to the 2030 timeframe through the Aurora Structural Life Extension Program and Aurora Incremental Modernization Project.
  • Under the Aurora Structural Life Extension Project, all 14 of the Aurora fleet have had their outer wings and horizontal stabilizers replaced.
  • The Aurora Incremental Modernization Project, a combination of 23 individual projects, continues to acquire, integrate, and install new mission systems and sensors onto the Auroras.
  • In line with our commitment under Strong, Secure, Engaged, we are considering the future of this capability past the 2030 timeframe.
  • However, many additional aircraft systems would require replacement prior to 2030 to mitigate known future obsolescence issues.
  • In February, the government issued a Request for Information to potential suppliers for the Canadian Multi-Mission Aircraft (CMMA), which will be used to inform next steps.
  • Taken together, these investments will help ensure that the Canadian Armed Forces maintains a world-class intelligence, surveillance, and reconnaissance capability.

Key Facts

  • The Aurora Structural Life Extension Project (ASLEP) involved replacing the wings and horizontal stabilizers on the aircraft. The ASLEP was completed in April 2020 at a cost of $418 million.
  • The Aurora Incremental Modernization Project (AIMP) is acquiring, integrating and installing new mission systems and sensors onto the aircraft. This project is being executed in a phased approach with four blocks; Blocks I, II and III are complete, and Block IV is in the implementation phase. The AIMP has a project cost of $1.6 billion.
  • The Canadian Multi-Mission Aircraft (CMMA) will equip the CAF with a long-range manned Command and Control, Communications and Computers (C4) and Intelligence, Surveillance and Reconnaissance (ISR) and Anti-Submarine Warfare (ASW), and Anti-Surface Warfare (ASuW) aircraft with extended capabilities. The funding range is greater than $5 billion.

Details

  • The modernized CP-140 Aurora Long-Range Maritime Patrol Aircraft is a vital Canadian Joint Intelligence, Surveillance and Reconnaissance platform given its cutting-edge anti-submarine warfare and long-range surveillance capabilities. This aircraft is used extensively by the CAF, both in the Arctic and abroad, and will be replaced in the early 2030s with the CMMA.

Life Extension and Upgrade Work

  • National Defence originally intended to modernize ten aircraft but, in October 2013, a $548 million addition to AIMP and ASLEP was announced to life-extend and modernize four additional Auroras.
  • The 2013 approval also included definition of three new operational capabilities for all fourteen aircraft (referred to as Block IV) including 1) a state-of-the-art self-protection system; 2) a Link 16 Data-link system (a military tactical data exchange network used by NATO countries); and 3) a High-bandwidth beyond-line-of-sight satellite communications system. Block IV implementation was approved in June 2015, and will ensure the fleet’s operational effectiveness until 2030.
  • Timelines for AIMP Block IV:
    • Initial operational capability (IOC) will be achieved incrementally by capability: IOC for the self-protection system is summer 2023, and IOC for the beyond-line-of-sight satellite communications system and Link 16 is first quarter of 2024. Project IOC has been delayed several times due to the increased complexity of the design, test and evaluation resource limitations and the requirement to coordinate system certifications with United States Government test agencies. 
    • Full operational capability is planned for late 2024;
    • As of January 2023, seven Block IV aircraft are currently in Greenwood, N.S. In addition to operational employment, these aircraft are being used for concept development, training, and ground and flight testing. Three others are undergoing modifications at IMP Aerospace in Halifax.
  • Further updates to the CP-140, to be implemented in the next five years, will include: Multi-Fleet Air Traffic Management Avionics (MFATMA) updates; Secure Radio Modernization; and Light-Weight Torpedo Upgrade, to keep the CP-140 operationally relevant and effective until CMMA is ready to replace it.

Canadian Multi-Mission Aircraft (CMMA)

  • The aim of the CMMA Project is to deliver an enhanced long-range, long-endurance, multi-mission capability to replace the CP140 fleet. It will be specialized in ASW and ASuW, and optimized for C4ISR.
  • The CMMA project is currently in Option Analysis:
    • In February 2022, a Request for Information was released to potential suppliers for the Canadian Multi-Mission Aircraft, which will be used to help inform the project next step for options available for the replacement of the CP140 Aurora.

 

Canadian Surface Combatant (CSC)

  • National Defence is committed to meeting 21st century security challenges, including by providing our Royal Canadian Navy with next-generation warships.
  • We are working with industry to finalize the selected ship design for the Canadian Surface Combatants, with a view to beginning initial low-rate production in 2024.
  • This project will promote investments in innovation and supplier development, generating over 30 billion dollars in GDP, and creating and sustaining more than ten thousand jobs over the next 25 years.
  • This includes job training and apprenticeship opportunities for Indigenous Canadians, visible minorities, and underrepresented groups.
  • We will remain transparent as we work with industry to find efficiencies, accelerate project timelines, and update costs as the design progresses.

If pressed on delays and cost increases:

  • While the ongoing COVID-19 pandemic has impacted project schedules due to temporary shipyard closures and supply chain challenges, we are still making important progress.
  • This involves preparations to begin initial low-rate production in 2024 and the continued purchase of long lead acquisition material.
  • Given the early stages of the process, National Defence continues to focus on finalizing the ship design.
  • Project costs are continually being reviewed. 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.

Parliamentary Budget Officer (PBO) Report:

  • The PBO’s report estimates entire life cycle costs for the Canadian Surface Combatants, from the development to the disposal phase.
  • This will help National Defence better understand costs based on all factors, such as ship size, crew size, ship complexity, and operational roles.

Key Facts

  • Estimated Budget: $58B (Design and Acquisition)
  • Timeline: First delivery in early 2030s
  • PBO 2022 Report Costs:
    • Total Life-Cycle Cost: $306B
      • Development: $4.3B
      • Acquisition: $80.2B
      • Operation & Sustainment: $219.8B
      • Disposal: $1.7B
  • GBA+: 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.

Details

  • 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.
  • The new warships will be able to conduct a broad range of tasks, including:
    • Delivering decisive combat power at sea, either independently or as part of a Canadian or international task group;
    • Supporting the Canadian Armed Forces and Canada’s allies ashore;
    • Conducting counter-piracy, counter-terrorism, interdiction and embargo operations for medium intensity operations; and,
    • Delivering humanitarian aid, search and rescue, and law and sovereignty enforcement for regional engagements.

Project status

  • In February 2019, the Government selected a design for CSC, and announced that Irving Shipbuilding had contracted Lockheed Martin Canada to provide the design and design team.
  • Canada is now working with Irving Shipbuilding, Lockheed Martin Canada, and their subcontractors to evolve the selected ship design and systems integration.

Parliamentary Budget Officer (PBO) Estimates

  • PBO 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 life cycle costs includes costs from the development through to disposal phases of the project. Previous PBO reports focused solely on the cost of the acquisition and development phase.
  • The report estimates the development and acquisition phase to be $84.5 billion (excluding taxes).
  • The estimated increases in cost compared to previous PBO reports is attributed to the increase in consumer price index and updated project production timelines, mitigated by the removal of provincial taxes which had been included in the previous PBO estimate.
  • A costing refresh will be done by DND before entering the Implementation phase of the project.

Economic benefits:          

  • Construction will occur in Halifax, Nova Scotia at Irving Shipbuilding.
    • More than 10,000 jobs will be created over the 25-year build period.
    • Generating at least $31B in GDP.
  • Irving Shipbuilding Inc. and Lockheed Martin Canada will invest an amount equal to their contract value back into Canada’s economy.
  • The CSC project will promote growth of key industrial capabilities in Canada by creating investments in innovation, supplier development, and export opportunities with a focus on cyber security and the marine sector.

Joint Support Ships (JSS)

  • National Defence is committed to procuring two Joint Support Ships that will help defend Canada and contribute to international security by providing crucial at-sea replenishment capabilities.
  • These ships will also have military capabilities, providing our sailors the protection they need when deployed in high-threat environments.
  • The Joint Support Ships are critical for the future of the Royal Canadian Navy and will serve to increase the range and endurance of our naval fleets.
  • These ships are a key element of the Royal Canadian Navy’s ability to provide medical and humanitarian assistance in response to crises around the world.
  • The construction of both ships is underway with the delivery of the first ship expected in 2025.
  • National Defence continues to review timelines as we assess the impact of supply chain issues on production efficiency.
  • We continue to work with industry and partners as we advance this project, which supports nearly 4,000 jobs in Canada and provides a $2.4 billion investment into the Canadian economy.

If pressed on the MV Asterix

  • The MV Asterix is an interim commercial solution while the Joint Support Ships are being built, and mitigates the capability gap.
  • While the Asterix is meeting an immediate need, the ship is not equipped to conduct the full spectrum of military activities required by the Royal Canadian Navy.

Key Facts

  • Budget: Up to $4.1BFootnote *
  • Timelines:
    • Joint Support Ship 1: Cut steel: 2018; Planned delivery: 2025
    • Joint Support Ship 2: Cut steel: 2022; Planned delivery: 2027
  • Economic Benefits: The Joint Support Ship (JSS) program will sustain 3,900 jobs in the Canadian marine industry while the ships are under construction including more than 1,000 at Seaspan.
  • GBA+: 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.

Details

  • In June 2020, a $2.4 billion contract (including taxes) was awarded to Seaspan Vancouver Shipyards to progress with full-rate construction.
  • The two new JSS are intended to replace the Navy’s Auxiliary Oiler Replenishment vessels. They will provide at-sea support to naval task groups, limited sealift capabilities, and support to operations ashore.
  • The JSS are critical to the future of the RCN, and constitute a vital and strategic national asset. The presence of replenishment ships increases the range and endurance of a naval task group, permitting it to remain at sea for significant periods of time without returning to port for replenishment.
  • 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. They will be crewed by CAF personnel.
  • The new JSS will have capabilities such as:
    • Underway support to naval task groups:
      • Re-supply of fuel, ammunition, spare parts and other supplies between ships at sea;
      • Operation and maintenance of helicopters; and,
      • Task group medical and dental facilities.
    • Sealift: JSS will be capable of transporting and delivering cargo both in support of task group operations and in support to operations ashore.
    • Support to operations ashore: To meet a range of possibilities in an uncertain future security environment, the JSS will leverage its on-board facilities to support operations ashore, ranging from combat to humanitarian and disaster relief.
    • Support to northern operations: JSS will have an Enhanced Ice capable hull designed to operate in limited Arctic waters and will be able to access the Nanasivik Naval Facility during summer navigation season.

JSS Survival capabilities

  • Equipped with systems to detect and protect against chemical, biological, radiological, and nuclear threats.
  • Equipped with a full range of features and systems that enhance their survivability and allow them to fully integrate with other warships (e.g., a combat management system, multiple defensive weapons systems, an electronic support measures suite, air search radar and dual shafts for enhanced redundancy).

Parliamentary Budget Officer (PBO) Estimate

  • In November 2020, the PBO released a fiscal analysis of the JSS project in response to a request from the House of Commons Government Operations and Estimates Committee (OGGO).
  • The PBO estimated that the JSS will cost $ 4.1 billion (with taxes) which was in line with National Defence's cost estimate.

Victoria-Class Submarine Modernization Project

  • National Defence is committed to ensuring that our submarines can defend North American waters and work with our international partners and allies abroad.
  • Victoria-class submarines are among Canada’s most strategic assets for conducting surveillance of Canadian, international, and near-Arctic waters.
  • Our submarines are a highly effective strategic deterrent that enable Canada to project power and influence globally, alone or in cooperation with allies.
  • That is why National Defence is committed to modernizing its fleet, to ensuring continued operations into the 2030s.
  • This work is now underway. It will improve submarine living and deployment conditions and will ensure survivability against future threats.
  • It will also support jobs across Canadian shipyards and through the supply chain.
  • This will include the supply chains for equipment, providing opportunities for Canadian small and medium-sized businesses.   

Key Facts

  • Budget: Up to $1.0B
  • Timelines:
    • First modernization starting date: 2023
    • First delivery: 2026
    • Final Delivery: 2036
  • Economic benefit: This modernization project will benefit Canadian industrial and technological sectors and provide robust economic benefits for Canada.
  • Maintenance and modernization projects will support jobs across Canada both at the shipyards and through the supply chain.

Details

  • Canadian submarines deliver a world-class, force-multiplying deterrent effect as well as an unmatched sovereign defence and security capability.
  • These submarines are capable of covertly monitoring evolving situations at home and abroad.
    • At home, submarines provide critical, sovereign force protection capacity for our sea-based forces when required.
    • Abroad, these submarines can conduct “indications and warnings” and vital joint-targeting information, weapon delivery, or Special Operations Force insertion.
  • The decision to modernize remains the most effective means of ensuring continued submarine operations for the Royal Canadian Navy into the 2030s.
  • The Victoria-class Modernization project will focus primarily on enhancing three distinct capabilities:
    • Habitability – to improve habitability and deployment conditions onboard Victoria-class submarines;
    • Joint Force Capability – position the Victoria-class submarines to contribute meaningfully to joint operations ashore; and,
    • Survivability – to ensure the survivability of the Victoria-class submarines against an evolving complex threat in an ever-changing battle space.

Gender-Based Analysis Plus (GBA+)

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

Future Fighter Capability Project (FFCP)

  • On January 9, 2023, the Government announced that it had finalized an agreement with the United States Government and Lockheed Martin with Pratt & Whitney for the acquisition of 88 F-35A fighter aircraft for the Royal Canadian Air Force (RCAF).
  • The rigorous and competitive procurement process has ensured that we have selected the right fighter aircraft, at the right price, with the right benefits for Canadians.
  • The F-35A will be essential for protecting the safety and security of Canadians and enhancing Arctic sovereignty, while allowing Canada to meet its NATO and NORAD obligations well into the future.
  • F-35A deliveries will begin in 2026 and support initial training that will be conducted in the United States.
  • To prepare for the later arrival of these aircraft in Canada, we have already taken steps for the construction of some of the new fleet’s facilities in Bagotville and Cold Lake.
  • Construction of these Fighter Squadron facilities will generate over 900 jobs.
  • We are confident this procurement will deliver the capability needed for the Royal Canadian Air Force, while providing high-value economic benefits for Canada's aerospace and defence sector for decades to come.

Key Facts

  • Project Budget: $19 billion in acquisition funding was established in Strong, Secure, Engaged. This includes the aircraft, associated equipment, sustainment set-up and services, as well as the construction of Fighter Squadron Facilities (FSF) in Bagotville and Cold Lake.
  • Procurement: Canada has committed to an initial tranche of 16 F-35A aircraft via the Production, Sustainment, and Follow-on Development Memorandum of Understanding (PSFD MOU).
  • Delivery of first aircraft as early as 2026. The project will work with the F-35A Joint Program Office (JPO) through the project implementation phase to acquire additional F-35A fighter aircraft along with the associated equipment and services.
  • 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 DND builds the necessary infrastructure to support aircraft delivery and commence operations in Canada.
  • Fighter Squadron Facilities: To prepare for the arrival of the aircraft, National Defence will continue the infrastructure work that has begun in Cold Lake, AB, and Bagotville, QC, and begin the construction of the Fighter Squadron Facilities at these locations. These facilities will be home to the operational and training squadrons as well as provide space for some maintenance activities.
  • GBA+: A GBA+ analysis was conducted for the FFCP, and the project will continue to assess potential differential impacts based on gender and other identity factors. This includes considering GBA+ impacts on equipment/ aircraft design and training, as well as design of the facilities at Bagotville and Cold Lake.
  • Economic benefits: Canada’s participation in the Joint Strike Fighter Program MOU has resulted in $2.8B USD in contracts awarded to Canadian companies. Lockheed Martin and Pratt and Whitney have committed to provide economic benefits equal to contract value over the life of the Joint Strike Fighter Program.
  • Indigenous relations: The infrastructure design-builders in Bagotville and Cold Lake will prepare benefit plans to support Indigenous procurement objectives.
  • Parliamentary Budget Officer (PBO) Report: PBO is undertaking an independent life-cycle cost analysis of the announced F-35A procurement and is expected to publish their report in May 2023.

Details

Project Details

  • The Future Fighter Capability Project (FFCP) will successfully acquire and transition into service 88 advanced fighter aircraft along with the associated equipment, weapons, infrastructure, information technology, and sustainment, including training and software support. This project will leverage Canadian capabilities and support the growth of Canada’s aerospace and defence industries.
  • The process, led by Public Service and Procurement Canada, is overseen by an independent fairness monitor.

Project Timelines

  • December 2017: The Government of Canada launched an open and transparent competition for the permanent replacement of Canada’s fighter aircraft fleet.
  • July 23, 2019: The Government of Canada released the Request for Proposals to eligible suppliers.
  • July 31, 2020: The Government of Canada received bids from eligible suppliers.
  • December 1, 2021: The Government of Canada announced that following evaluation of the proposals submitted, two bidders remained eligible—SAAB (Sweden) and Lockheed Martin (United States).
  • March 28, 2022: The Government of Canada announced that it would enter into the finalization phase with the top ranked bidder: the U.S. Government and Lockheed Martin, for F-35A fighter jets.
  • January 9, 2023: The Government of Canada announced that it had finalized an agreement with U.S. Government and Lockheed Martin with Pratt & Whitney for the acquisition of 88 F-35A fighter jets for the Royal Canadian Air Force (RCAF).

Economic Benefits

  • Canada has implemented a Value Proposition to motivate generational investments in our aerospace and defence industries over the coming decades, and that drive innovation, exports, and skills development in Canada’s Key Industrial Capabilities including In-Service Support, and Aerospace Systems and Components.
  • To date Canadian companies have secured approximately USD $2.8B in production contracts. 

Fighter Squadron Facilities

  • In anticipation of the arrival of the aircraft, National Defence is preparing for the construction of some of the new fleet’s facilities in Bagotville (Québec) and Cold Lake (Alberta). This will support long-term maintenance and operation of the aircraft.
  • A $12.1 million design contract for a Fighter Squadron Facility in Bagotville (Québec) was awarded on September 28, 2020.
  • A $9.2 million design contract for a Fighter Squadron Facility in Cold Lake (Alberta) was awarded on August 13, 2020.
  • Construction on both facilities is expected to begin in the summer/fall 2023.

Gender-Based Analysis Plus (GBA+)

  • New infrastructure for the future fighter capability will be designed to take into account GBA+ considerations, including safety and the equitable fairness of infrastructure such as washrooms, sleeping quarters, and cultural spaces. The following GBA+ considerations are being incorporated into the design of the FSF:
    • A lactation room has been incorporated into the design of the FSF facilities based on DND Policy requirements that a lactation room be made available to CAF personnel;
    • A multi-faith room has been included in the design of the FSF based on the Chaplain Guideline for Canadian Forces Sacred Space;
    • An area for Indigenous Smudging ceremonies has been included in the design of the FSF;
    • The FSF will be accessible for persons with disabilities and to personnel requiring assistance in alignment with Government of Canada requirements for accessibility excluding maintenance and service areas; and
    • Respectful gender inclusive washrooms, showers, and change rooms have been incorporated into the design of the infrastructure based upon consultations with stakeholders. The design of these rooms has taken into consideration issues of safety by having well-lit areas and reducing isolated spaces.

Indigenous Considerations

  • The requirement for federal departments and agencies to ensure a minimum of 5% of the total value of each department and agencies 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. Also, the FFCP procurement is conducted through Government-to-Government Arrangements (MOU and FMS Cases), and is therefore not subject to the set-aside Program for Indigenous Business.
  • However, FFCP has endeavored to find means to directly and indirectly support the Government of Canada’s Indigenous commitments.  Specifically, within the FFCP Infrastructure component, proactive engagements are taking place by the Modified-Design Build (MDB) contractors with identified Indigenous communities with the intent that the Indigenous partnerships formed will contribute to mutually beneficial and sustainable economic benefits to the Indigenous communities in the Bagotville and Cold Lake areas.

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 Production Sustainment and Follow-On Development (PSFD) MOU, which was renewed in 2021.
  • To date, Canada has spent USD $712.5M to participate in the program. The most recent payment was for USD $99.5M, made on 1 May, 2022.
  • As of December 2022, approximately USD $2.8B in contracts had been awarded to Canadian companies for JSF program-related work since program inception in 1997.
  • The annual payments also provided Canada with the option to buy the aircraft at the lowest possible cost and with priority access to the production line. This provides Canada with production and delivery flexibility, even as the number of Foreign Military Sales customers steadily increase.
  • 8 partner countries are part of the JSF PSFD MOU: Australia, Canada, Denmark, Italy, Netherlands, Norway, United Kingdom, and the U.S.
  • To date, there are 9 foreign military sales customers: Belgium, Finland, Germany, Israel, Japan, South Korea, Poland, Singapore, and Switzerland. 

Fixed-Wing Search And Rescue (FWSAR)

  • National Defence is committed to providing the Canadian Armed Forces with the necessary equipment to serve Canadians.
  • This is why we are procuring 16 new Fixed-Wing Search and Rescue aircraft to enable more effective missions in all weather conditions.
  • We have already welcomed 15 of these aircraft and anticipate the initial operational capability of the new fleet in 2025-2026.
  • This project will generate positive economic dividends for the Canadian economy, including by providing highly skilled jobs across the country. "We will continue to advance this project, despite unforeseen delays, and welcome the many jobs and investments it generates for the Canadian economy.
  • To ensure life-saving search and rescue services continue uninterrupted, existing fleets are being used until the transition to the new aircraft is complete.

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.

Key Facts

  • Contract Value: $2.9B and up to $5.4B (including taxes).
  • Economic Benefit: As part of the Request for Proposal, Airbus is required to reinvest 100% of the contract value into the Canadian economy.
  • GBA+: The Fixed-Wing Search and Rescue Training Facility in Comox will include:
    • Gender neutral washrooms that accommodate those with disabilities;
    • Nursing rooms;
    • Cultural rooms for prayer; and
    • All equipment has been designed to accommodate all genders.

Details

Timeline

  • Ground and flight testing is currently being conducted in Spain, the U.S., and Canada. Four aircraft are in Comox, BC and 11 remain in Seville Spain, in preservation state.
  • Many certification issues remain to be addressed before the aircraft can become operationalized.
  • Initial operational capability was anticipated for summer 2022; however this timeline has shifted to 2025-2026. This delay is attributed to several factors related to the progress of the aircraft’s certification, technical considerations, and training maturity.
    • March 2019: The first aircraft rolled off the production line.
    • September 17, 2020: The first delivered aircraft arrived at 19 Wing Comox, British Columbia.
    • November, 2022: Initial aircrew flight training for the initial operational test and evaluation crews began.
    • December 23, 2022: The fifteenth and latest aircraft was accepted in Spain.
    • April, 2023: Initial operational testing and evaluation is scheduled to begin.
    • Full Operational Capability is currently set for 2029.

The new aircraft will:

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

Indigenous relations

  • National Defence is engaged with the K’òmoks First Nation in the construction of the training centre at 19 Wing Comox, British Columbia, on K’òmoks First Nation traditional territory.

CH-148 Cyclone

  • The CH-148 Cyclone is a capable maritime helicopter that will continue to operate alongside our existing and future naval fleets.
  • The fleet of CH-148 Cyclones is operational, and all aircraft are maintained and operated in accordance with our rigorous Airworthiness Program.
  • Any technical and maintenance issues that are identified are thoroughly investigated and immediately brought to the attention of our airworthiness authorities and the manufacturer.
  • The Canadian Armed Forces continue to ensure that operations and training are conducted in a safe and deliberate manner.

If pressed on the tail cracks:

  • National Defence has worked closely with Sikorsky, the manufacturer, to ensure repairs were undertaken immediately.
  • There is no immediate safety hazard and the fleet continues to be operationally effective.

Key Facts

Project Budget:

  • CH-148 Cyclone fleet: 28 aircraft procured
  • Acquisition cost: $3.2 billion
  • In-service support until 2038: $5.8 billion

Project Details:

  • Contract award: 2004
  • First delivery: 6 Cyclones in 2015
  • Deliveries to date: 26 Cyclones (25 in service)Footnote *. Remaining Cyclones are anticipated to be delivered in 2023.
  • Final delivery: Delivery and acceptance of all 28 Cyclone helicopters is expected to be completed in 2023.
  • Full operational capability: Expected in September 2026

Details

  • As outlined in Canada’s defence policy, Strong, Secure, Engaged, the Government of Canada is making investments to ensure that members of the Royal Canadian Air Force (RCAF) have the equipment they need to fulfill their missions.
  • The CH-148 Cyclone is at the forefront of modern aircraft technology and a very capable maritime helicopter. With a suite of sensors, and planned mission system upgrades, the Cyclone will continue to excel in all the missions it is designed to undertake
  • The aircraft 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.
  • Maritime helicopters must be able to operate with the Royal Canadian Navy (RCN) Halifax-class ships. They must also integrate with future RCN fleets – the Arctic and Offshore Patrol Ships, the Joint Support Ships, and the Canadian Surface Combatants.
  • National Defence is confident in the safety of the CH-148. All aircraft are maintained and operated in accordance with our rigorous Airworthiness Program.

2022 Cyclone mission to Canada’s Arctic

  • A mission was conducted during the summer of 2022 to ensure that sensors embedded in the CH-148 Cyclone could meet their intended operational capabilities in the Arctic.
  • The mission involved sending a Cyclone from its home base at 12 Wing Shearwater, Nova Scotia, to Alert, Nunavut, the world’s most northerly settlement. At the end of this mission, the CH-148 Cyclone was found capable of operating in the northernmost reaches of the world.

Cyclone missions in International Waters

  • Since July 2018, thirteen (13) CH148 Cyclones have been deployed on Halifax Class Ships on twenty-two (22) missions: to support NATO assurance and deterrence measures in central and eastern Europe (Operation Reassurance); to make middle eastern waters more secure (Operation Artemis); to participate in the CAF’s ongoing commitment to global peace, defending Canada’s interests around the world (Operation Projection); and to participate in a coordinated multinational effort for implementation of United Nations Security Council sanctions against North Korea (Operation Neon).

Flight Safety Investigation Report Recommendations Update

  • Since the release of the CH148822 Flight Safety Investigation Report (FSIR) in June 2021, work has been ongoing to address the report’s recommended preventive measures.
  • In particular, aircrew and experts in flight controls, engineering, software design, and human factors have met in working groups to define a solution to enhance the Flight Control System of the CH-148.
  • This work was followed by independent testing by both Sikorsky and the RCAF.
  • As a result, a technical solution has been reached that addresses the FSIR recommendations. This solution consists of software changes that will:
    • Provide greater latitude to safely maneuver the aircraft should the Flight Director be overridden, with an automatic disconnect function and warning should an unsafe condition arise; and
    • Incorporate visual improvements to the annunciation system to enhance pilot awareness.
  • A proposal for the implementation of this technical solution was received from Sikorsky in December 2022. Negotiations to reach an agreement are underway.
  • DND/CAF intends to immediately begin airworthiness certification of the design change and move to fleet-wide implementation once an agreement is reached on the Sikorsky proposal.

Tail cracking issue

  • In November 2021, during routine maintenance, National Defence detected cracks in the tails of some CH-148 Cyclone aircraft. Repairs were undertaken immediately 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 is currently finalizing its analysis to determine if any additional repair work is required to ensure that the cracking problem does not reoccur.

RADARSAT

  • Canada’s three RADARSAT Constellation Mission satellites support Canadian Armed Forces’ global operations.
  • These satellites are also critical to monitoring Canada’s Arctic, navigable sea routes and coastal areas.
  • Canada is working with industry to advance technologies and options for a successor mission to RCM once its end of design life is reached in 2026.

Key Facts

  • National Defence owns and operates the Automatic Identification System (AIS) payloads, which are key components to provide Maritime Domain Awareness.
  • RADARSAT Constellation Mission (RCM): Provides a “big picture” overview of Canada’s vast land mass, especially the Arctic, and navigable sea routes and coastal areas, as well as global surveillance for the Canadian Armed Forces.
  • RCM data: This important asset is used by over a dozen federal departments to deliver services to Canadians.
  • Project lifespan: This Project has a seven year design life, and is expected to be fully operational until the 2026.
  • National Defence delivered and operates the Polar Epsilon 2 ground stations to process Maritime Domain Awareness data from RCM.
  • The Royal Canadian Air Force is the functional authority for National Defence’s space program, which is organized around four main lines of operation:
    • Surveillance of space (Space Domain Awareness);
    • Surveillance from space (Intelligence, Surveillance, and Reconnaissance);
    • Positioning, navigation, and timing (Global Positioning System); and,
    • Satellite communications.
  • Canada’s Strategy for Satellite Earth Observation released on January 20, 2022 commits to continuing to fully leverage satellite Earth observation, collaborative partnerships and the use of domestic and international satellite data across sectors to support a safer and more prosperous country.

Details

Future Capabilities

  • National Defence has started a project to have its own dedicated radar imaging satellite constellation. The new satellite system includes two projects that are expected to become operational in 2035:
    • The Enhanced Satellite Communications Project - Polar (ESCP-P) will provide sovereign, dedicated, reliable and secure communications to enable core Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) capabilities in the Arctic. Its Initial Operational Capability (IOC) and Full Operational Capability (FOC) are expected for 34/35 and 37/38, respectively.
    • The Defence Enhanced Surveillance from Space Project (DESSP): Planned replacement and upgrade of capabilities provided by RADARSAT Constellation Mission and Polar Epsilon 2. The system, through unique DND/CAF ground processing, will provide DND/CAF with the capability to conduct global surveillance with a key focus on Maritime Domain Awareness. The DESSP will contribute into the Five Eyes (FVEYs) intelligence network as part of Canada’s commitment to allied burden sharing arrangements.
  • National Defence is currently exploring options to address the gap between the expected life of the RADARSAT Constellation Mission and delivery of its own satellite constellation.

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