Procurement

• Launched in 2017, Strong, Secure, Engaged continues to be National Defence’s guiding strategy for responding effectively to a changing world.
• SSE aims to ensure that the Canadian Armed Forces are a modern, capable, combat-ready military that can keep Canada secure and contribute to a more peaceful world.
• That is why we remain committed to the significant and strategic long-term investments and projects identified in Canada’s defence policy.
• In fact, since 2017, 75% of the policy’s capital projects are in the implementation phase, near completion, or completed.
• Despite the impact of COVID-19 on supply chains, we continue to deliver on major procurement projects, including new ships, new aircraft, and new vehicles for the Canadian Armed Forces.

If pressed on the PBO report on SSE progress:

• We are fully committed to openness, transparency, and accountability to Parliament and appreciate the important work of the Parliamentary Budget Officer.
• We have adjusted spending as project schedules and timelines are refined and lessons are learned.
• As we continue to advance and deliver on all SSE projects flexibility in our funding model will allow us redistribute funds effectively.
• We will regularly update the Parliamentary Budget Officer as we move forward with our Defence Capital projects.

If pressed on the impact of COVID-19 on procurement:

• COVID-19 has had a significant impact on the procurement process and defence industry.
• While progress has been made to mitigate and adapt, new challenges have developed and continue to affect a number of elements involved in military procurement.
• For example, National Defence is currently assessing the schedule and cost impacts of COVID-19 on procurement, including on:
  • Production;
  • Skilled labour shortages; and,
  • Supply chains, which impact availability and delivery of parts and materiel.
• National Defence will continue to press ahead on the timely delivery of Strong, Secure, Engaged in order to procure the best equipment for our members at the best value for taxpayers.

• Naval ships play critical roles in protecting Canada’s maritime domain, including our Arctic waters, and in contributing to international peace and security.
• That is why we are undertaking the largest fleet modernization in decades which will include Arctic and Offshore Patrol Ships, Canadian Surface Combatants, and Joint Support Ships.
• National Defence continues to advance these projects as it navigates the impacts of the COVID-19 pandemic on our shipyards and suppliers.
• For example, we have already accepted delivery of two Arctic and Offshore Patrol Ships with a third to come shortly.
• Through these projects we will help revitalize the Canadian shipbuilding industry, creating and sustaining tens of thousands of jobs across Canada.

If pressed on delayed procurement projects:

• COVID 19 has had a significant impact on the procurement process and defence industry.
• But new challenges continue to affect a number of elements involved in military procurement.
• That is why National Defence is constantly analyzing and assessing the situation in collaboration with shipyards and partners.
• We are adjusting spending as timelines are refined and valuable lessons are learned.

If pressed on allied involvement in the development of the Canadian Surface Combatant:

• We are working closely with industry and allies to find efficiencies and best practices.
• In fact, we meet with allies regularly to compare lessons learned.
• Thanks to this collaboration we are able to get a clearer idea of how best to move forward.

• Naval combat ships are critical for defending Canadian waters, and contribute to naval diplomacy and international security.
• That is why National Defence is procuring 15 new Canadian Surface Combat (CSC) ships for the Royal Canadian Navy.
• 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.
• 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 delayed procurement projects:

• COVID 19 has had a significant impact on the procurement process and defence industry.
• But new challenges continue to affect a number of elements involved in military procurement.
• That is why National Defence is constantly analyzing and assessing the situation in collaboration with shipyards and partners.
• We are adjusting spending as timelines are refined and valuable lessons are learned.

If pressed on allied involvement in the development of the Canadian Surface Combatant:

• We are working closely with industry and allies to find efficiencies and best practices.
• In fact, we meet with allies regularly to compare lessons learned.
• Thanks to this collaboration we are able to get a clearer idea of how best to move forward.

• Canada’s Joint Support Ships will provide crucial at sea replenishment capabilities and will be a major addition to the Royal Canadian Navy fleet.
• The two new Joint Support Ships will have standard military capabilities, enabling the Navy to defend Canada and contribute to international peace and security.
• These ships will also provide the Royal Canadian Navy and Allies with essential supplies and fuel while they are deployed around the world, and provide protection in high-threat environments.
• Despite the impact of COVID-19 on supply chains, construction on the first ship remains underway, while the construction timeline of the second ship is currently being assessed. 
• This project will directly benefit Canadians by sustaining 3,900 jobs and providing $2.4 billion of investment into the Canadian economy.

If pressed on delayed procurement projects:

• COVID 19 has had a significant impact on the procurement process and defence industry.
• But new challenges continue to affect a number of elements involved in military procurement.
• That is why National Defence is constantly analyzing and assessing the situation in collaboration with shipyards and partners.
• We are adjusting spending as timelines are refined and valuable lessons are learned.

If pressed on the interim solution (MV Asterix):

• The Asterix is an interim solution while the Joint Support Ships are built.
• While the Asterix is not a long-term solution, it ensures that the Royal Canadian Navy’s effectiveness and readiness is not compromised.

• Arctic and Offshore Patrol Ships (AOPS) are critical to increasing Canadian presence in the Arctic and supporting Canadian sovereignty.
• National Defence is making major progress on this procurement project: one ship is already operational, a second has been accepted, and we anticipate delivery of the remaining four by 2025.
• In fact, the HMCS Harry DeWolf 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.
• National Defence recognizes the importance of working closely with Indigenous and Northern communities; each ship will be affiliated with an Inuit region to build strong ties with these remote communities.
• With a budget of up to $4.3 billion, this project benefits the Canadian economy by sustaining 2,000 jobs annually.

• Victoria-class submarines are among Canada’s most strategic assets for conducting surveillance of Canadian, international, and near Arctic waters, while also supporting allies.
• To ensure these important vessels can operate into the 2030s, National Defence is currently undergoing a modernization of Canada’s fleet of four Victoria-class submarines.
• This modernization will improve submarine living and deployment conditions, joint force capability with onshore operations, and ensure survivability against future threats.
• The improvement of living conditions will also take into account gender-based considerations for privacy and functionality in various areas of the submarines.
• This extensive project is valued at up to $1.0 billion and will benefit Canadian industrial and technological sectors and provide robust economic benefits for Canada.

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.

• 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.
• I am pleased to say that we have entered 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.
• We are confident this process will deliver the best results for the Canadian Armed Forces, while providing economic benefits for Canada.

If pressed on timelines:

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

If pressed on the procurement of CF-18 Hornet fighter aircraft:

• 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.
• National Defence continues its stringent integration process of the supplementary CF-18 (former Australian aircraft) to the current fleet.
• All supplementary aircraft were delivered and transferred to Canada by May 2021.
• We aim to integrate all of the supplementary aircraft into our current fleet by the end of June 2023.
• National Defence will continue to move forward with the project as we navigate impacts of the pandemic on supply chains and availability of personnel.

• Strategic airlift is a critical capability for the Canadian Armed Forces to conduct operations at home and abroad.
• It is routinely used to transport personnel and cargo, including for vaccine distribution and for evacuations.
• The Strategic Tanker Transport Capability project will augment our strategic airlift capability and enhance our ability to conduct in-flight refueling and strategic airlift operations.
• The project is currently in its Definition Phase and we anticipate a contract to be awarded in the 2022-2023 timeframe.
• National Defence is also exploring options to expand its strategic airlift capability and further contribute to operations at home and abroad.

• The Remotely Piloted Aircraft System will provide strategic surveillance, intelligence, and precision strike capabilities critical to addressing modern security challenges.
• This is why we are working to acquire a new medium altitude, long endurance, and armed Remotely Piloted Aircraft System.
• This system will be integrated into a network of intelligence, surveillance, and reconnaissance systems to provide essential, near real-time information to senior leadership.
• 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.

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.

• The Canadian Armed Forces provides life-saving search and rescue services to Canadians.
• This is why National Defence is procuring 16 Kingfisher Fixed-Wing Search and Rescue aircraft to modernize this critical capability.
• These aircraft will provide improved search and rescue capabilities across Canada, including in the Arctic, in difficult weather conditions, and at night.
• As of February 2022, we have accepted nine aircraft, four of which have been delivered to Canada.
• We anticipate that all remaining aircraft will be accepted by Canada by the end of 2022.
• To ensure life-saving search and rescue services continue uninterrupted, existing fleets will continue to be used until the transition to the new aircraft is complete.
• Through this project, one-hundred percent of the contract will be reinvested into the Canadian economy, sustaining highly skilled jobs across Canada.

If pressed on delivery delays:

• The aircraft’s certification effort has taken additional time as a result of the volume and complexity of the work associated with developing this new capability, as well as impacts related to COVID-19.  
• A revised project schedule is currently being assessed.