Supplementary Estimates B - Funding

Supplementary Estimates (B) 2024-25 Overview

Details

• The following funding items are included in Supplementary Estimates (B) 2024-25:
  • Future Aircrew Training Program ($659,116,167)
  • Canadian Multi-Mission Aircraft project ($561,000,000)
  • Military aid to Ukraine ($443,800,000)
  • Military aid to Ukraine (Budget 2024) ($319,728,499)
  • Joint Support Ship project ($315,327,080)
  • Halifax-class frigate sustainment (Budget 2024) ($299,189,390)
  • Science and technology research to modernize the North American Aerospace Defence Command ($209,199,957)
  • National Procurement Program (Budget 2024) ($202,080,000)
  • Funding for a number of previously approved defence investments funded through the Capital Investment Fund ($127,926,484)
  • Acquisition of Medium-Range Air-to-Air Missiles ($109,549,100)
  • Logistics Vehicle Modernization project ($30,209,506)
  • Interim Auxiliary Oiler replenishment vessel service agreement (Budget 2024) ($15,279,780)
  • Electronic Health Record Platform project (Budget 2024) ($5,640,886)
  • Initiatives to address gender-based violence ($1,490,006)
  • Compensation and benefits for the Canadian Armed Forces ($943,238)
• The Supplementary Estimates B would increase National Defence's authorities for the current fiscal year to $34.6B ($35.7B including CSE and agencies).

Transfers

• In addition to receiving new funding, these Supplementary Estimates include 12 transfers with Other Government Departments [four coming into National Defence ($1,560,198) and eight going out (-$24,818,157)]. There are also three internal transfers from Vote 1b (-$5,999,652) to Vote 5b ($5,999,652) with a $0 net effect.

Military Assistance Donations to Ukraine

Key Facts

Details

• Budget 2024 provided $1.6 billion over five years ($320 million per year) for unwavering support for Ukraine, starting in this fiscal year, for the provision of lethal and non-lethal military aid to Ukraine. This funding for 2024-25 is being accessed via Supplementary Estimates B.
• On July 11, 2024, at the NATO Summit in Washington, D.C., the Prime Minister announced an additional $443.8 million for National Defence to support the costs of military equipment, assistance, and training for the Armed Forces of Ukraine (AFU). This funding is being accessed via Supplementary Estimates B.
  • At the NATO Defence Ministers' meeting on October 18th in Brussels, it was announced that $65 million of this package will be used to procure additional small arms, ammunition, and personal protective equipment for women soldiers.
• During the NATO Summit in Washington, the Prime Minister also announced an additional $56.2 million for the NATO Comprehensive Assistance Package (CAP) for Ukraine Trust Fund to support Ukraine's immediate and long-term needs, and support for both the launch of the NATO Security Assistance and Training for Ukraine (NSATU) and for the Ukraine Defence Contact Group's (UCDG) Air Force Capability Coalition. Together, these announcements totalled $500 million.

Armoured Combat Support Vehicles

• During President Zelenskyy's visit to Ottawa on September 22, 2023, Prime Minister Trudeau announced that Canada would invest $650M to supply Ukraine with Armoured Combat Support Vehicles (ACSV), including medical evacuation vehicles.
• The initial delivery of 10 ambulance-variant ACSV built by Canadian workers was made in late October after extensive training was provided by CAF members in Germany.

Recent Announcements

• On September 6, 2024, at the 24th meeting of the Ukraine Defense Contact Group (UDCG), Minister Blair announced that Canada will donate and transport 80,840 additional CRV-7 rocket motors and 1,300 warheads to Ukraine. This follows Canada's initial delivery of 2,160 CRV-7 rocket motors, as pledged earlier this year.
  • The additional 80,840 rocket motors are being prepared for shipment to Poland and will arrive in the coming months. The decommissioned rocket motors were previously used by the Royal Canadian Air Force (RCAF) on CF-18 fighter aircraft. Canada will also be donating 970 surplus C6 machine guns as well as 10,500 surplus 9mm pistols from our inventory.
  • In addition, Canada will donate decommissioned chassis from 29 M113s and 64 Coyote LAVs, formerly used by the Canadian Armed Forces. These surplus vehicles, no longer operational in the Canadian Army, will be repurposed or used for spare parts by Ukraine.
  • Minister Blair also announced that in early September, Armed Forces of Ukraine (AFU) pilots arrived in Canada to begin fighter-lead-in-training (FLIT). Canada has taken over leadership of the FLIT element of the UDCG Air Force Capability Coalition (AFCC) – backed by an investment of $389 million over five years in F-16 pilot training for Ukrainian personnel.
• At the 23rd UCDG meeting on June 13, 2024, the Minister of National Defence announced that Canada will donate 29 Nanuk Remote Weapons Systems – manufactured by Rheinmetall Canada – from surplus CAF inventory, and more than 130,000 rounds of surplus small arms ammunition to Ukraine.

NASAMS

• On January 10, 2023, Canada's purchase of NASAMS and associated munitions from the United States to donate to Ukraine was announced.

Future Aircrew Training (FAcT) Program

Key Facts

Details

Future Aircrew Training Program

• The 25-year contract awarded to SkyAlyne Canada Limited Partnership will equip the CAF with state-of-the-art platforms for training operations at home and abroad.
  • A second contract with a potential total value of $1.08 billion was awarded for in-service support of the fleets for up to 25 years, if all option periods are exercised. This in-service support will be in place once the fleet has reached Full Operational Capability in 2028.
• The contract will also include classroom instruction, simulator and flight training, as well as numerous on-site support activities for prospective RCAF Pilots, Air Combat Systems Officers, and Airborne Electronic Sensor Operators.
• Initial aircrew training for pilots, air combat system officers, and airborne electronic sensor operators will utilize existing RCAF training sites:
  • 15 Wing Moose Jaw, Saskatchewan;
  • Southport (formerly known as Canadian Forces Base Portage la Prairie), Manitoba; and
  • 402 Squadron, operating from 17 Wing Winnipeg, Manitoba.
• The FAcT program is replacing training services under two separate contracts:
  • CAE Military Aviation Training in Moose Jaw, Saskatchewan, which provides North Atlantic Treaty Organization (NATO) Flying Training in Canada.
    • The contract ends in 2027 (can be extended by one year).
  • Contracted flying training and support is provided by Allied wings in Southport, Manitoba.
    • The contract will expire in 2027.
• Through FAcT, Canada will acquire over 70 training aircraft, split into five fleets of:
  • Grob G120TP: a two-seat turboprop training and aerobatic aircraft
  • Pilatus PC-21: a tandem-seat turboprop advanced trainer
  • Beechcraft King Air 260: a twin-turboprop aircraft
  • Airbus Helicopters H-135: a twin-engine light utility helicopter
  • De Havilland Dash 8-400: a turboprop aircraft commonly used by airlines for regional flights
• Canada's Industrial and Technological Benefits Policy applies to both FAcT contracts and requires the companies to make investments and provide business activities in Canada equal to the value of the contract.

National Procurement

Key Facts

Details

Our North, Strong and Free (ONSAF)

• The commitment in ONSAF to improve the sustainability of military equipment, includes funding for in-service support contracts to increase asset availability, as well as investing in spare parts that will enhance the serviceability and overall usability of our key service fleets.

National Procurement Program (Budget 2024)

• The National Procurement program is accessing $9.6 billion over the next 20 years through incremental funding to support existing modernization and sustainment initiatives at increased levels.
• Incremental funding is required to address ageing Canadian Armed Forces (CAF) fleets, outdated equipment, and inflation.
• All contracting and procurement activities under the National Procurement Program are managed through call-ups against pre-existing competitive contracts, competitive contractual arrangements, and competitive supplier arrangements.
• Incremental funding for the National Procurement Program will enable Canada to fulfill domestic and international defence commitments.

National Defence Departmental Results Report

• In fiscal year 2022-23:
  • 51.2% of maritime fleets were serviceable to meet training, readiness and operational requirements.
  • 56% of key land fleets were serviceable to meet training, readiness and operational requirements.
  • 43.9% of aerospace fleets were serviceable to meet training, readiness and operational requirements.

Halifax-Class Frigates

Key Facts

Joint Support Ships (Protecteur-Class)

Key Facts

Details

• Replenishment ships increase 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 Protecteur-class will also have an enhanced ice-capable hull designed to operate in limited Arctic waters and it will be able to access the Arctic Archipelago during the summer navigation season.

Protecteur-class Survival Capabilities

• Threat detection: systems to detect and protect against chemical, biological, radiological, and nuclear threats.
• Fleet integration and defensive systems: for example, multiple defensive weapons systems, a combat management system, and air search radar.

Canadian Multi-Mission Aircraft

Key Facts

Details

Canadian Multi-Mission Aircraft (CMMA)

• The CMMA project will equip the CAF with a modern long-range crewed aircraft specialized in Anti-Submarine and Anti-Surface Warfare capabilities; and optimized for Command, Control, Communications and Computers (C4) and Intelligence, Surveillance and Reconnaissance (ISR).
• On November 30, 2023, the Government of Canada announced its decision to procure between 14 and 16 aircraft specialized in anti-submarine and anti-surface warfare from Boeing through a foreign military sale with the US.
• In August 2024, the Minister of National Defence welcomed Boeing's $61 million investment in the British Columbia aerospace sector, including:
  • $48 million for research and development within Boeing's Vancouver facility, to help ensure Canada's aerospace industry remains at the forefront of technological advancements.
  • $13 million into Indigenous-owned COTA Aviation, establishing a hands-on aerospace manufacturing training facility geared towards increasing the representation and participation of Indigenous peoples in aerospace and defence.
• Boeing will open an innovation centre in Montreal, invest in research centres, and develop partnerships with universities across Canada.

Aurora Upgrades

• National Defence continues to support its CP-140 Aurora fleet until its estimated life expectancy of 2030, ensuring it remains operational until the P-8A Poseidon is operationally ready.
• The Aurora Incremental Modernization Project (AIMP) involved 23 individual projects to acquire, integrate, and install new mission systems and sensors onto the CP-140 for intelligence, surveillance, and reconnaissance.
• Upgrades to the CP-140 are now being rationalized to ensure value for money, and to ensure the RCAF has the capacity to rapidly transition to the P-8A Poseidon.
  • Upgrades include the Link 16 Data-link system (a military tactical data exchange network used by NATO countries), Multi-Fleet Air Traffic Management Avionics updates, and Secure Radio Modernization among others.
• AIMP achieved full operational capacity this summer, ensuring the seamless transition between fleets.

Logistics Vehicle Modernization

Key Facts

Details

• The Logistics Vehicle Modernization (LVM) project will acquire a new fleet of light and heavy logistics vehicles with associated equipment. These vehicles are used by the Canadian Armed Forces to transport personnel, equipment, and supplies in support of operations at home and abroad.
• Replacing the existing fleet of light and heavy logistics vehicles supports commitment #40 under Strong, Secure, Engaged.
• The LVM project will provide equipment with a minimum life expectancy of 20 years. This procurement will include:
  • new light and heavy logistics vehicles;
  • trailers;
  • interchangeable modules that provide a variety of specialised functions;
  • special-purpose containers;
  • material handling systems and equipment;
  • protection kits;
  • initial in-service and logistic support;
  • infrastructure;
  • long-term in-service support.
• The new vehicles will replace the current fleet of light support vehicles, heavy logistics vehicles, and the minor fleet of heavy engineer support vehicles, which have all been in use since the late 1980s, early 1990s.

Continental Defence and NORAD Modernization

Key Facts

Details

NORAD Modernization

• Investments are broken down into five inter-related areas:
  1. Bolstering our ability to detect threats earlier and more precisely by modernizing our surveillance systems ($6.96B from fiscal year 22/23 - 41/42)
  2. Improving our ability to understand and communicate threats to decision-makers in a timely manner through upgrades to our command, control, and communications systems ($4.13B from fiscal year 22/23 - 41/42)
  3. Strengthening our ability to deter and defeat aerospace threats by modernizing our air weapons systems ($6.38B from fiscal year 22/23 - 41/42)
  4. Ensuring our Canadian Armed Forces can launch and sustain a strong military presence across the country, including in Canada's North, through investments in new infrastructure and support capabilities ($15.68B from fiscal year 22/23 - 41/42)
  5. Future-proofing our capabilities to defend North America through investments in science and technology ($4.23B from fiscal year 22/23 - 41/42)
• National Defence continues to conduct engagements with provincial and territorial partners as well as Indigenous governments and communities, taking a distinctions-based approach, to build relationships and understand their priorities relating to potential NORAD modernization investments.

Electronic Health Record Platform

Key Facts

Details

• The Canadian Forces Health Services (CFHS) operates thirty-three clinics and sub-clinics of various sizes throughout Canada, in addition to two in Europe, providing healthcare to Canadian Armed Forces (CAF) members wherever they serve.
• CFHS also has a presence on His Majesty's Canadian (HMC) Ships at sea, as well as in deployed operations.
• CFHS employs approximately 6,100 personnel across various clinical and administrative roles.

Canadian Forces Health Information System (CFHIS)

• The existing electronic health record system, CFHIS became operational in 2005.
• CFHIS provides healthcare users with secure access to basic health information on CAF patients from anywhere in the world, with access to the Defence Wide Area Network.

Electronic Health Record Platform (EHRP)

• The EHRP will offer modern operational and clinical decision-support tools, secure access to health information, advanced analytics, and a patient-centred experience that is equal to provincial and Defence partners.
• The EHRP will also extend its capabilities to HMC Ships and deployed units.
• Integration with NATO and other allies' electronic health records, as well as with national civilian healthcare partners, will be a crucial capability in improving the seamless care of CAF members when they are treated outside of the military healthcare system.

Capital Investment Fund Initiatives

Key Facts

Details

• $131.2 million is being requested for the following projects:
  • $33 million reprofile for the Canadian Multi-Mission Aircraft (see Canadian Multi-Mission Aircraft)
  • $69.1 million for the Multi-Role Boat project to competitively procure 30 new Rigid Hull Inflatable Boats and 30 articulated cranes, to provide an upgraded ship's boat capability for the Halifax Class frigates (see Halifax-Class Frigates);
  • $10.4 million for the Identity, Credential and Access Management project to establish a single digital identity across multiple platforms within National Defence, with other government departments, and with allies (United States, North Atlantic Treaty Organization, and Five Eyes partners);
  • $10.3 million for the CC130J Hercules Block 8.1, which will deliver upgrades to the transport aircraft fleet and simulators;
  • $3.7 million for the Light Utility Vehicle project for the definition phase to equip the Canadian Armed Forces (CAF) with new fleets of light utility vehicles;
  • $3.3 million for the Common Heavy Equipment Replacement project, to replace existing CAF heavy support equipment; and,
  • $1.4 million for the Advanced Improvised Explosive Device Detection and Defeat project to acquire four different types of counter explosive threat equipment.

Background

• The CIF was introduced as part of Strong, Secure, Engaged, to enable a full 20-year view of capital investments under a consolidated defence budget.
• Prior to 2019, the planning of National Defence's capital program was managed on both a cash and accrual basis.
  • Accrual Basis: the cost of acquiring an asset is spread over its useful life. Operating funding for the asset is recorded in the year that the expenditure is made.
  • Cash Basis: funding for cash payments related to the acquisition of capital assets and operating funding is allocated in the year in which the expenditure is made (immediately).
• Further, some operating costs were covered by the cash budget, while others were sourced from the accrual budget. This introduced significant complexity in planning for major equipment projects, which was a fundamental challenge of large procurements of the past.
• The CIF introduced important changes to how the defence budget is managed to ensure that the Defence team has the flexibility to effectively manage key investments in defence capabilities.
• Annual CIF forecasts may exceed the supplied funding by up to 5% in a given year, provided the overall 20-year envelope is not exceeded.
• National Defence provides an annual CIF report to the Department of Finance and Treasury Board Secretariat to determine the affordability of the CIF when compared to the supplied funding.

Support and Resources to Persons Affected by Sexual Misconduct

Key Facts

Details

Responsive Legal Options (RLO) Initiative

• This initiative includes the Independent Legal Assistance (ILA) Program and Alternate Reporting (AR).
• The first part of the initiative seeks to establish a program that provides free access to ILA for victims of sexual misconduct.
  • The ILA program aims to facilitate access to legal services to enable people to make informed decisions based on their specific circumstances, needs, and goals.
• The second part of this initiative seeks to examine AR options for CAF members that do not trigger any administrative, disciplinary or judicial proceedings.
  • The AR component of the RLO initiative is still within the exploratory phase; however, the goal is to provide affected members with choices and options in the reporting process.
• Funding will support personnel costs associated with the seven Full Time Equivalents (FTEs) already hired (for both ILA and AR), as well as six new FTEs to be hired for the ILA program.

Prevention Research Initiative

• The Prevention Research Initiative aims to better inform sexual misconduct prevention efforts by conducting research on the perpetration of sexual misconduct in the CAF and developing response frameworks, as well as training and tools to manage incidents.
• With funding previously provided, SMSRC has completed initial hiring for establishment of the Research Team.
• New funding will support the hiring of three new FTEs who will provide additional support and assistance on the implementation of research activities and projects. New funding will also continue to support the existing six FTEs approved through the Budget 2021 submission.

Response and Support Coordination Program

• The Response and Support Coordination Program was launched in 2019 to provide affected members with a dedicated Coordinator. This was expanded to support all SMSRC clients in May 2023.

Community Support for Sexual Misconduct Survivors Grant Program

• The SMSRC Grant Program was established to broaden the range of services available to those affected by sexual misconduct in the wider Defence community and to increase collaboration between DND/CAF and community-based organisations.

Peer Support Groups

• In partnership with Veterans Affairs Canada (VAC), SMSRC offers virtual peer support services for those that have been affected by sexual misconduct during their service or in their place of work who are 18 years and older.

Compensation and Benefits

Details

• This request proposes to make amendments to two sections of the Compensation and Benefits Instructions for the Canadian Forces (CBI).
• CBI 204 – Pay of Officers and Non-commissioned Members to update the pay rates for entry-level pilots effective 1 April 2024.
  • Although the rates for entry-level pilots aligned with the industry standards when they were established in 2021, they failed to consider the Team Concept, seeing junior captain pilots earning less than their General Service Officer counterparts.

• CBI 205.48 – Stress Allowance for Test Participants to include specific high-stress duties and activities and to simplify administration with an increased single daily rate, retroactive to 1 April 2023.
  • The increased Stress Allowance provides a daily allowance for members who are subjected to abnormal physiological or psychological stress or discomfort while participating in Defence-approved tests or experiments.
  • Beyond these tests or experiments, the Canadian Armed Forces (CAF) has identified other types of employment, duties and training in which CAF members are subjected to a similar abnormal level of physiological or psychological stress or discomfort.
  • In addition, the daily allowance is being increased to a flat rate of $75 to reflect cost of living increases since the rate was established in 2017.
  • The previous allowance was for a daily maximum of $66.60 for:
    • $13.37 for each day on which the member is subject to stress or discomfort which is designed to be abnormal; and
    • $53.23 for each test or experiment that is designed to subject the member to extreme stress or discomfort.

Medium-Range Air-to-Air Missiles

Key Facts

Details

• To ensure our fighter fleet is immediately effective in the event of combat, in Supplementary Estimates B we are requesting $110 million for Medium-Range Air-to-Air Missiles (MRAAM) that will be used by both the CF188 Hornet and the F-35A.
• MRAAM is being acquired through a Foreign Military Sales (FMS) case with the United States Government.
• The funding being requested in these Supplementary Estimates will be used against the acquisition payment schedule of the FMS case.
• Acquisition of the MRAAM missiles through an FMS case is aligned with our commitment to ensure new weapons and systems support interoperability, and ultimately strengthen our collective defence with key allies.

Future Fighter Capability Project (See Future Fighter Capability Project)

• On January 9, 2023, following a rigorous and competitive procurement process, the Government of Canada announced an agreement with the United States Government and Lockheed Martin with Pratt & Whitney for the acquisition of 88 F-35A fighter aircraft.
• The Future Fighter Capability Project represents the most significant investment in the Royal Canadian Air Force in more than 30 years.
• The F-35A 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 boosting our interoperability with key allies and partners. The F-35As will replace existing CF-18 Hornet fighter fleet.
• The Future Fighter Capability Project is to acquire a very small stock of four of each of the air-to-air weapons to be employed on Canada's F-35A in order to complete Canadian verification and validation activities. The additional quantities of air-to-air weapons for were planned to be acquired separately.