Key Procurement Projects (Domestic/Arctic/North American Security)
- I recognize that defence procurement is vital to ensuring the Canadian Armed Forces is equipped and ready to fulfill the important missions we ask of it.
- That is why we are committed to advancing several key procurement projects that will deliver the necessary capabilities to our Forces, while providing high-value economic benefits to Canadians.
- For instance, on January 9, 2023, the Government announced that it had finalized an agreement with the US Government and Lockheed Martin for the acquisition of 88 F-35 fighter aircraft.
- The F-35 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-35 deliveries will begin in 2026 and support initial training that will be conducted in the United States.
- To enhance Arctic capabilities and support Canadian sovereignty in the North, National Defence is also procuring six new Arctic and Offshore Patrol Vessels, designed to operate in previously inaccessible northern waters.
- Three of the Arctic and Offshore Patrol Vessels are already in the water, and we anticipate the delivery of the remaining three by 2025.
- At the subsurface level, National Defence is committed to modernizing its Victoria-class submarine fleet, to ensure continued operations into the 2030s.
- This work, now underway, will improve submarine living and deployment conditions, and will ensure survivability against future threats.
- In addition, National Defence is modernizing the CP-140 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 is integrating and installing new mission systems and sensors onto the Auroras.
- Taken together, these procurement projects will help ensure that the Canadian Armed Forces maintain world-class equipment and capabilities to effectively carry out its missions at home, abroad, and across the Arctic.
If pressed on AOPS technical issues:
- We are aware of the technical issues, and addressing these issues is our priority to ensure ships are returned to operations and our men and women in uniform remain safe.
- Technical issues are not unusual during the introduction period of a new capability.
- As in-service issues are resolved, the corrections will be taken into account during the production of follow-on vessels.
If pressed on purchasing the P-8:
- We are committed to buying military equipment that meets the defence requirements of the Canadian Armed Forces.
- The Letter of Request issued to the US does not commit us to purchasing the P-8A Poseidon and the project remains in Options Analysis.
- The final decision will be based on the capability offered, availability, pricing and benefits to Canadian industry.
Key Facts
Future Fighter Capability Project
- 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).
- 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.
- 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 agreed to economic benefit targets equal to bid 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.
Defence of Canada Fighter Infrastructure Project
- Project Budget: $6.7B
- Timeline: Work will be staggered as the project is comprised of several different infrastructure elements across a number of locations throughout Canada. Upgrades under this project are expected to begin in 2023 and all work is expected to be completed in the mid-2030s.
- Under the DCFI project, DND will modernize, recapitalize, and add new infrastructure to support the current fleet, as well as the arrival of our new fleet of 88 F-35 fighter jets.
- The DCFI project will build and upgrade infrastructure required for the F-35 including airfields, electrical and IM/IT systems, hangarettes, Quick Reaction Alert facilities, maintenance facilities, storage warehouses, accommodations, and training facilities to support operations, personnel, and logistics.
Arctic and Offshore Patrol Ships
- Project Budget: Up to $5.0B
- Timeline:
- July 31, 2020: First AOPS vessel 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: Third ship, HMCS Max Bernays, 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.
Victoria-Class Modernization Project
- 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.
CP-140 Aurora
- 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.
- As announced by Public Services and Procurement Canada on 27 March, 2023, Canada is considering options for the CMMA, including the P-8A Poseidon. The project remains in Options Analysis, and the final decision will be based on the capability offered, availability, pricing and benefits to Canadian industry.
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