ARCHIVED - 2010-2011 DPRs - Status Report on Major Crown Projects

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• Agriculture and Agri-Food Canada
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• Royal Canadian Mounted Police
• Transport Canada

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Agriculture and Agri-Food Canada

Status Report on Major Crown/Transformational Projects

Description

Agriculture and Agri-Food Canada (AAFC) identified the need to make strategic changes to the way Grants and Contributions (Gs&Cs) programs were delivered to the Canadian public with the aim of simplifying their administration while, at the same time, strengthening accountability and risk-based approaches for managing programs.

Drivers for this coordinated action include the overall Government of Canada (GoC) Gs&Cs reform, administrative reform efforts and service excellence, and the Report of the Independent Blue Ribbon Panel on Gs&Cs Programs “From Red Tape to Clear Results” for efficient management and effective access to Gs&Cs.

AAFC’s response to these drivers resulted in the need for the Grants and Contributions Delivery Project (GCDP) which is two-fold in scope:

• Business Transformation: the departmental adoption of a Common Business Process Model to design, deliver and report on non-Business Risk Management (BRM) Gs&Cs programs; and
• Common Tools Utilization: the implementation of a departmental “one common platform” for the electronic delivery and management of non-BRM Gs&Cs programs.

The GCDP was repositioned in April 2010 to ensure that: it complied with the Department's overall Gs&Cs reform; it supported GoC administrative reform efforts; and rigorous project management controls required for projects of this size were implemented.

Phase I of the GCDP was completed in March 2011. This Phase included the completion of a flexible component based architecture, design and costing, confirmation of the "best fit" solution, selection of three programs (Early Adopters) to represent all non-BRM programs and completion of a business alignment exercise for validation of a Common Business Process Model.

In February, 2011, approval was received to move forward with Phase II of the GCDP for the implementation of the Common Business Process Model onto a common information system, the Grants and Contributions Delivery System (GCDS), using a validated solution. Together, the Common Business Process Model and associated information system will improve the access, management and delivery of non-BRM programs. Completion of the GCDP is set for March 2013.

Project Phase

This project is currently in the implementation phase.

Leading and Participating Departments and Agencies

Leading and Participating Departments and Agencies

Lead Department	Agriculture and Agri-food Canada
Contracting Authority	Agriculture and Agri-food Canada, Public Works and Government Services Canada
Participating Departments	Public Works and Government Services Canada, Treasury Board Secretariat

Prime and Major Subcontractors

Prime and Major Subcontractors

Prime Contractor	Deloitte & Touche LLP - 100 Queen Street, Suite 800, Ottawa, Ontario, K1P 5T8
Major Subcontractor	CSDC Systems Inc. (formerly Grantium) - 279 Laurier Ave. West, Suite 200, Ottawa, Ontario K1P 5J9

Major Milestones - GCDP Phase I and II

Major Milestones Phase I

Major Milestones - Phase I	Completion Date
Preliminary Project Approval	June 4, 2009
Conceptual Design and Approved Architecture	June 30, 2010
Confirm "Best Fit" Solution	October 31, 2010
Preliminary / Detailed Design	November 30, 2010
EPA Package Approval	February 17, 2011
Business Transformation (Early Adopter Programs)	March 31, 2011

Major Milestones Phase II

Major Milestones - Phase II	Target Date
Business Transformation	August 31, 2011
GCDS Support Centre Staffing	October 31, 2011
Release 1 - Basic Program Office	November 30, 2011
Release 2 - Saturn Integration and Legal Amendments	April 30, 2012
Release 3 - Front Office	August 30, 2012
Release 4 - Business Intelligence	October 31, 2012
Release 5 - Transactional Processes and Interfaces to other Departmental Systems	October 2012
Treasury Board Reporting (results of the Independent Assessment)	October 2012
Project Closeout	March 31, 2013

Project Outcomes

• Increased decision support through improvement of performance reporting across Gs&Cs programs;
• Increased consistency of program delivery through the rationalization of work processes and enabling technological infrastructure;
• Increased accessibility and transparency for clients of Agriculture and Agri-Food Canada in the delivery of services;
• Increased auditability in how Agriculture and Agri-Food Canada aligns to legal, political and policy changes; and
• Increased value for money in how Agriculture and Agri-Food Canada executes, monitors, and controls ongoing operations.

Progress Report and Explanations of Variances

Progress To Date:
Phase I of the project - Complete
Conceptual Design - Complete
GCDS Support Centre Staffing - Underway
Business Transformation - Common Model in place, business alignment complete for "Early Adopter" Programs as part of Phase I, and alignment of remaining and new programs is underway
Technical design and configuration - Underway

Financial Information:

1. Proof of Concept (PoC) of the GCDP from February 2006 to May 2008, incurred costs of $3,074,200 (excluding GST/HST of $153,710).
2. In June 2009, the GCDP received approval and funding ($2,344,155 - excluding GST/HST of $79,388) to conduct Preliminary Project Approval (PPA). Phase I of the project was from April 1, 2009 to March 31, 2011.
3. On February 17, 2011, project approval was provided for the GCDP and expenditure authority for the implementation of the GCDP at a substantive cost estimate of $9,987,411 (excluding HST of $734,996), for fiscal years 2011-12 and 2012-13, bringing the total expenditure authority to date to $15,405,767 (excluding GST/HST of $968,093), which includes the 2006-2008 PoC and the 2009-2011 PPA.
4. As of June 30, 2011, the GCDP is currently running slightly under budget as some key procurement contracts have not yet been initiated and there have been staffing delays of the Information Systems Branch GCDS Support Centre.
5. The GCDP is to be completed by March 31, 2013.

Industrial Benefits

In February 2007, an independent blue ribbon panel provided recommendations aimed at simplifying the administration of Gs&Cs while, at the same time, strengthening accountability and risk-based approaches for managing the programs. Through the development of the action plan and other work that has taken place over the past year, AAFC is meeting the commitments made by the Government in response to the panel's key recommendations.

With this plan, recipients, stakeholder organizations and federal program administrators will be able to see AAFC's progress, and more importantly, the project's next steps and the Department's commitment to engage them in the process. The last year has seen much activity, and a solid foundation is being laid for systemic change. This kind of change takes time, and there is still much work to be done. However, it is believed that the action plan will serve as a vital roadmap to guide AAFC over the next few years.

Note: Further details on this project can be found in the Status Report on Projects operating with specific Treasury Board Approval in the 2010-11 DPR.

Canada Border Services Agency

Status Report on Major Crown/Transformational Projects

Temporary Resident Biometric Project

Description

The Temporary Resident Biometrics Project is a Citizenship and Immigration Canada led major Crown project, in partnership with the Canada Border Services Agency (CBSA) and the Royal Canadian Mounted Police (RCMP). The business objective of the Temporary Resident Biometrics Project  is to streamline identity management within the Government of Canada temporary resident program. Against the backdrop of the rise of identity fraud globally and the use of ever-more sophisticated means to evade detection, a key challenge in Canada's immigration program is identifying applicants and managing their identity with confidence. The Temporary Resident Biometrics Project is not aimed at a re-engineering of processes and systems, but rather an enhancement to existing visa, study and work permit application and visitor entry processes, and leveraging of investment in existing Citizenship and Immigration Canada, CBSA and RCMP systems to the maximum extent possible.

Budget 2008 provided the CBSA with funding in the amount of $12.67 million. With this funding, the CBSA will design and develop a photo verification solution at all ports of entry, as well as a discretionary biometric verification solution in secondary inspection at selected ports of entry. The CBSA is currently on schedule to implement the above-noted work components by March 2013.

Project Phase

The Temporary Resident Biometrics Project is currently in the analysis and design phase.

Leading and Participating Departments and Agencies

Lead Department	Citizenship and Immigration Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Canada Border Services Agency and Royal Canadian Mounted Police

Prime and Major Subcontractor(s)

Prime Contractor	n/a
Major Subcontractor(s)	n/a

Major Milestones

Major Milestone	Date
Business requirements for Phase 1 (re-scoped option)	April 2010
System requirements for Phase 1 (re-scoped option)	Fall 2010
Memorandum to Cabinet	December 2010
Effective project approval submission	December 2010
Posting of the requests for proposals	March 4, 2011
Evaluating responses to the requests for proposals	Spring-Summer 2011
Business use cases for Phase 1(re-scoped option)	February 2011
Treasury Board of Canada Secretariat approval	March 24, 2011

Project Outcomes

• Migration that significantly benefits Canada's economic, social and cultural development, while protecting the health, safety and security of Canadians. Related program activities: the Immigration Program and the Temporary Resident Program.
• International recognition and acceptance of the principles of managed migration consistent with Canada's broader foreign policy agenda, and protection of refugees in Canada. Related program activities: Canada's role in international migration and protection, and the Refugee Program.
• Successful integration of newcomers into society and promotion of Canadian citizenship. Related program activities: the Integration Program and the Citizenship Program.
• Canada's population is safe and secure from border-related risks. Related program activities: Port of entry operations (Conventional Border).
• Legitimate travellers and goods move freely and lawfully across our border. Related program activities: Port of entry operations (Conventional Border).

Beneficiaries

• The affected client groups are primarily applicants for temporary resident visas. In 2006, Citizenship and Immigration Canada received over 1.2 million applications abroad in the temporary immigration program. The volume of temporary applications has been increasing in recent years and is estimated to reach roughly 1.6 million by 2012.
• Canadian society will be the prime beneficiary of this initiative. Strengthened identity management will provide for increased security and reduced abuse of the immigration program. These are key elements of ensuring the safety, security, and health of Canadian society and maximizing the economic benefits of immigration. A March 2007 survey by Ipsos Reid found that 88 percent of Canadians were supportive of the use of biometrics in verifying the identity of foreign nationals applying for a visa, and 90 percent supported conducting background checks on foreign nationals seeking to enter Canada.

Progress Report and Explanations of Variances

• With the $12.67 million that the CBSA received in Budget 2008, the project has been re scoped to include only photo verification at all Canadian ports of entry, and discretionary fingerprint verification in secondary inspection at selected ports of entry.
• Amended preliminary project approval was received in April 2010.
• The Memorandum to Cabinet to re-scope the project and secure funds was approved in December 2010.
• Various documents in support of overall project management have been prepared, such as a project charter. In addition, business requirements and business use cases to support the reduced scope are well underway.
• In order to procure required equipment and be ready to implement for March 2013, the request for proposals was posted on MERX on March 4, 2011.
• The CBSA has completed its business requirements and business use cases and has begun its system requirements. The Agency has also completed its Training Strategy and begun the Statement of Requirements and Statement of Sensitivity (SOR/SOS), and is currently on schedule to design and develop photo verification at all Canadian ports of entry and discretionary biometric verification at secondary inspection at selected ports of entry.
• The CBSA is currently operating within budget, as allocated by the Department of Finance Canada for the reduced scope project option.
• The CBSA will be ready to implement the Temporary Resident Biometrics reduced scope solution by March 31, 2013, as originally envisioned.

Industrial Benefits

Given the greater assurance of an individual's identity due to the addition of biometrics, Canadian society will be the prime beneficiary of this initiative. Strengthened identity management will provide for increased security and reduced abuse of the immigration program. These are key elements of ensuring the safety, security, and health of Canadian society and maximizing the economic benefits of immigration.

Air Cargo Security

Description

The primary objective of the Air Cargo Security Program is to develop a comprehensive air cargo security regime in Canada that is in line with international partners and that will mitigate the risks associated with the introduction of explosives in cargo or mail and the use of cargo aircraft as weapons. Supply chain programs to identify low-risk cargo will be developed, and procedures to screen high-risk and targeted cargo will be identified.

Project Phase

Implementation of the Canadian Air Cargo Security Program major Crown project priority initiatives in 2010–11.

Leading and Participating Departments and Agencies

Lead Department	Transport Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Canada Border Services Agency

Prime and Major Subcontractor(s)

Prime Contractor	n/a
Major Subcontractor(s)	n/a

Major Milestones

Major Milestone	Date
Air Cargo Security privacy impact assessment	TBD
Memorandum of Understanding for the exchange of information between Transport Canada and the CBSA	TBD
Interoperability between Transport Canada and the CBSA	2011–12
Agreement on the risk assessment process for Transport Canada participants	TBD

Project Outcomes

Air travellers will benefit from this program. Benefits include:

• enhanced regulatory regime;
• oversight, training and compliance;
• screening technologies and processes;
• mutual recognition and interoperability;
• support for risk assessments undertaken by Transport Canada; and
• screening of air cargo items at small and remote Class II and Class Other airports.

Progress Report and Explanations of Variances

A review of the Air Cargo Security privacy impact assessment has now been completed by the Office of the Privacy Commissioner. The December 2010 response included concerns and made recommendations for the Air Cargo Security Privacy Impact Assessment. Those concerns are currently being discussed between the CBSA and Transport Canada legal services. Therefore, completion of a Memorandum of Understanding and the agreement on risk assessment with Transport Canada is pending the results of the privacy impact assessment. Recently, significant delays in project deliverables have been caused by the release of the final report by the Commission of Inquiry entitled Air India Flight 182: A Canadian Tragedy in June 2010, and by disruptions following the discovery in October 2010 of two U.S.-bound parcel bombs concealed inside printer toner cartridges sent by air from Yemen.

Industrial Benefits

• Protect the Canadian public and those working in the air cargo supply chain.
• Streamline trade through risk management.
• Promote the movement of goods both domestically and internationally through effective trade supply chains.
• Improve the ability of the CBSA to detect high-risk cargo.
• Improve controls and make better and more efficient allocations of CBSA resources.
• Ensure the efficient flow of goods contributing to Canada's economic prosperity.

Please note that the lead for Air Cargo Security is Transport Canada. Only CBSA information is included above as a participating department.

eManifest

Description

One of the strategies that the CBSA employs in managing the border is the use of advance information to identify and stop high-risk people and goods before they arrive in Canada. Having successfully implemented the marine and air components of the Advance Commercial Information initiative, the CBSA is now implementing Phase III, which is known as Electronic Manifest, or eManifest.

eManifest is the next critical step required to improve the ability of the CBSA to detect shipments that pose a high or unknown risk to the safety and security of Canadians. The objective of eManifest is to implement electronic processes based on advance electronic cargo information to effectively analyze risk, ensure efficient border procedures and secure the international trade supply chain. Under eManifest, highway and rail carriers, along with freight forwarders and importers in all modes, will transmit advance cargo, conveyance, crew and importer advance trade data prior to the arrival of the cargo at the border. eManifest will complement and build upon the risk management strategies currently employed in both the air and marine modes, by enhancing the risk assessment capacity and scoring methodologies for all modes. This initiative focuses on pushing the border out by getting the right information at the right time in order to protect Canadians from health, safety, and security threats related to commercial goods before they arrive in Canada.

eManifest will feature the following:

• reporting using electronic data interchange;
• a Web portal;
• automated risk assessment;
• an enhanced client notification system;
• a data warehouse and associated business intelligence tools; and
• compliance management and management information reporting.

Project Phase

eManifest has multiple components in different project phases, including several items that have been implemented, and others in the analysis and design, and construction and development phases.

Leading and Participating Departments and Agencies

Lead Department	Canada Border Services Agency
Contracting Authority	Canada Revenue Agency and Public Works and Government Services Canada
Participating Departments	n/a

Prime and Major Subcontractor(s)

Prime Contractor	n/a
Major Subcontractor(s)	n/a

Major Milestones

Major Milestone	Date
Readiness activities – Information technology prerequisites and deployment of the Synchronous Technology and Application Release configuration	Implemented November 2007
Readiness activities – Automated in-transit pilot project (Phase I)	Implemented June 2008
Rail reporting (Phase I)	Implemented March 2009
In-Transit Highway Pilot (Phase II) Customs electronic commerce platform capacity upgrade	Implemented October 2009
Highway carrier reporting Client notification Passage (interim enhancements for highway) Infrastructure capacity upgrade (Phase I)	Implemented October 2010
Highway Web portal Infrastructure capacity upgrade (Phase II)	Summer 2011
Risk assessment (Phase I) Rail reporting (Phase II) Passage (interim enhancements for rail) Commercial reporting	Spring 2012

Project Outcomes

eManifest will feature:

• implementation of critical information technology prerequisites activities;
• advance electronic crew, cargo, conveyance and advance trade data information from highway and rail carriers, freight forwarders, and importers and customs brokers;
• a Web portal for clients to facilitate compliance;
• automated risk assessment in advance of the arrival of goods to Canada's border;
• streamlined border processing through integration of systems for CBSA officers; and
• development of a data warehouse and supporting business intelligence software, which will include the centralization and integration of data from various CBSA systems in order to support intelligent risk assessment of eManifest pre-arrival information through pattern detection and trend analysis.

In addition, some of the products and features listed above will also be retrofitted to the air and marine modes.

eManifest will also allow for:

• enhanced knowledge and capacity to risk assess pre-arrival data and for trade community compliance;
• enhanced cooperation with U.S. Customs and Border Protection through harmonized commercial processes;
• enhanced innovative systems and technology to effectively and efficiently assess data;
• increased success of detection activities to intercept high-risk goods and travellers;
• increased compliance by trade community with CBSA legislation.
• enhanced flow of low-risk people and goods; and
• improved stakeholder satisfaction.

Progress Report and Explanations of Variances

• eManifest received effective project approval from Treasury Board on November 29, 2007, as a major Crown project with an approved budget of $396 million (net of goods and services tax) over five years. 
• Subsequent to effective project approval, the project completion date was revised to reflect a shift in project funding over two years, as part of CBSA's contribution in support of Canada's Economic Action Plan. The impact of the funding realignment has extended the completion date and has necessitated a realignment of project deliverables and implementation time frames.
• vAs a result of the extended time frame, eManifest's funding profile required a reallocation of funds for 2012–14 where there was no Treasury Board funding originally allocated.
• Agency reference levels still reflect preliminary project approval funding amounts. This has resulted in annual internal carry-forwards to align funding to effective project approval plans.
• Expenditures were reduced in 2009–10 as a result of a re-profile of project funding to future years (2012–14). The realignment of funding is attributed to a delay in the implementation of business intelligence and data warehouse infrastructure technology, a delay in end-state Passage functionality at first point of arrival, and associated costs related to the uptake of highway carriers. Synergies of staffing amongst CBSA major projects have also been realized.
• eManifest is to be completed by 2015.

Throughout 2010–11, the eManifest project team has made significant progress in carrying out various project activities. Highlights included:

• Implementation of highway carrier reporting. Electronic Data Interchange systems are now available to highway carriers who have completed registration and testing of their systems with the CBSA to begin transmitting their pre-arrival cargo and conveyance data before arriving at the border. The CBSA continues the registration of new carrier clients.
• Passage enhancements to the existing system to provide border services officers with the ability to retrieve, view, update data online and through reports, log arrival of the conveyances in highway, make decisions and retrieve trip information by alternative keys.
• Phase I of infrastructure upgrades to support an expected increase in eManifest volumes and process requirements for highway carriers.
• Completed development of the Agency's first Internet-based service window, the eManifest Portal, with delivery to the business community expected in the summer of 2011. This secure data option was developed primarily for small to medium-sized enterprises to facilitate their compliance and make the transition from paper to electronic reporting more manageable.

The 2010–11 reporting period also included significant stakeholder engagement activities related to the implementation of eManifest in the highway mode and the deployment of the Web portal. These activities include:

• the distribution of the Electronic Commerce Client Requirements Document for highway carriers to the trade community; and
• the gathering of stakeholders and Agency representatives through the eManifest Stakeholder Partnership Network and other consultative forums to discuss the design, development, implementation and communication activities of eManifest.

Industrial Benefits

As eManifest will help provide CBSA officers with the right information at the right time, Canadian industry will benefit from more certainty at the border and from streamlined release processes. This will enable both industry and the CBSA to manage commercial import volumes more effectively. In addition, eManifest functionality will enable the seamless movement of goods through secure international trade-supply chains. With improved controls along the international trade-supply chains, the CBSA can more efficiently allocate resources to ensure that integrated border services further national security and safety priorities, while continuing to facilitate the free flow of low-risk people and goods.

Canadian Space Agency

3.3.4) Status Report on Major Crown/Transformational Projects

RADARSAT-2

The RADARSAT-2 Major Crown Project (MCP) activities ended during the 2010-2011 fiscal year. The Major Crown Project closure submission received Treasury Board approval in May 2010. This concludes reporting on this MCP.

Summary of Non-Recurring Expenditures ($ in millions)
(As of March 31, 2010)

Program	Current Estimated Total Expenditure	Forecast to March 31, 2010	Planned Spending 2010-2011	Future Years
RADARSAT-2	417.7	417.7	0.0	0.0

The summative evaluation of the RADARSAT-2 Major Crown Project (MCP) was completed in 2009. To learn more about it, go to: www.asc-csa.gc.ca/pdf/mcp-5702-7823.pdf

RADARSAT Constellation

1- Description

The RADARSAT Constellation is the follow-on to RADARSAT-1 and 2. RADARSAT-1 was launched in 1995 and is still operating. RADARSAT-2, developed in partnership with the private sector, was launched in 2007 for a seven-year mission. Canada has established itself as a leading global supplier of C-band satellite radar data. The RADARSAT Constellation will enhance this leadership and position Canadian industry in technology and value-added product markets.

The RADARSAT Constellation is designed as a scalable constellation of three small satellites. The satellites will be launched in 2015 and 2016. With a constellation, the time between successive imaging of the same part of the Earth (revisit time) is significantly reduced. The creation of a three-satellite constellation will increase the frequency of available information, as well as the reliability of the system, making it better suited to operational requirements of Departments. In the event of a satellite failure, the other satellites can continue to provide a reduced level of service. The lower cost of satellites facilitates the replacement of individual satellites and makes the system scalable.

The scope of the RADARSAT Constellation MCP includes the design, development manufacture, integration, test and launch of the satellites plus the design, development, manufacture and installation of the associated ground segment. One year of operation of the 3-satellite constellation is also included as well as an applications development program.

The RADARSAT Constellation will provide all-weather day and night data in support of three main user areas: maritime surveillance, disaster management and ecosystem monitoring. The three satellite constellation provides average daily coverage of most of Canada and its surrounding waters. Coverage increases significantly in Canada’s North. The constellation will provide coverage two to three times daily of the Northwest Passage.

In support of maritime surveillance requirements of Environment Canada, Department of National Defence, Department of Fisheries and Oceans, Canadian Coast Guard and Transport Canada, the RADARSAT Constellation is the principal data source envisaged for wide area surveillance of Canada’s remote areas and marine approaches. Only satellite data can offer regular cost effective coverage to task ships and aircraft to intercept suspect vessels. The daily coverage of marine areas will also support fisheries monitoring, ice and iceberg monitoring, pollution monitoring and integrated ocean and coastal zone management.

In support of disaster management, both in Canada and globally, the RADARSAT Constellation can provide high resolution, all-weather (3 m) imagery of most places in the world on a daily basis. This data is critical to disaster mitigation, warning, response and recovery. Disaster types supported include flood monitoring and relief, oil spills, changes in the permafrost in northern Canada, volcano and earthquake warning and hurricane monitoring.

In support of ecosystem monitoring of Natural Resources Canada, Environment Canada, Parks Canada and Agriculture and Agri-foods Canada, the RADARSAT Constellation will be a critical source of information for agriculture, forestry and wildlife habitat. The Constellation will also provide medium resolution data for wide area change detection, supporting water quantity monitoring, wetlands mapping and coastal change monitoring.

In addition, the RADARSAT Constellation develops Canadian high technology design and manufacturing capabilities and the integration of satellite data into information products and services. Canada’s space and geomatics industries will benefit from increased positioning on international markets and privileged access to data essential to many international users.

The RADARSAT Constellation will provide C-band SAR (Synthetic Aperture Radar) data continuity to existing RADARSAT users, including the Canadian Ice Service, which relies on SAR data to support safe shipping in Canada.

Leading and participating Departments and Agencies

Sponsoring Agency:	Canadian Space Agency
Contracting Authority:	Public Works and Government Services Canada
Participating Departments:	Natural Resources Canada Environment Canada National Defence Foreign Affairs and International Trade Industry Canada Fisheries and Oceans Agriculture and Agri-foods Canada Transport Canada Public Security Indian and Northern Affairs Canada Parks Canada

Prime and Major Sub-Contractors

Prime Contractor:	MacDonald, Dettwiler and Associates (MDA), Richmond, British Columbia
Major Sub-Contractors:	MacDonald, Dettwiler and Associates, Ste.-Anne-de-Bellevue, Québec Magellan Aerospace, Bristol Aerospace, Winnipeg, Manitoba COMDEV Limited, Cambridge, Ontario MacDonald, Dettwiler and Associates, Halifax, Nova-Scotia SED Systems, Saskatoon, Saskatchewan EADS, Composites Atlantic, Lunenburg, Nova-Scotia IMP Group, Halifax, Nova-Scotia EADS, Astrium, Stevenage, United Kingdom

Major Milestones

The major milestones on Major Crown Project, by phase, are the following:

Phase	Major Milestones	Date
A	Requirement Definition	March 2009
B	Preliminary Design	March 2010
C	Detailed Design	January 2012
D	Launch satellite #1 Launch satellite #2 and #3	July 2015 November 2016
E1	Operations (part of MCP)	to March 2018
E2	Operations (not part of MCP)	2018 to 2024

Progress Report and Explanation of Variances

On December 13, 2004, the Domestic Affairs Committee of Cabinet granted approval-in-principle to a ten-year, $600 million program to implement a RADARSAT Constellation aimed at addressing user needs in relation to Canadian sovereignty and marine surveillance, environmental monitoring and change detection, and disaster management. The RADARSAT Constellation is to be government-owned and operated.

In Budget 2005, the CSA was provided with an additional $110.9 million over five years (2005-2006 to 2009-2010). Combined with a further $89.1 million from the CSA’s reference levels, a total of $200 million was identified for CSA to work with the Canadian space industry on the development of the next generation of advanced radar remote sensing satellites. This funding covers Phases A (Initial Planning and Identification Phase) through C (Detailed Definition Phase) of the RADARSAT Constellation Project, but is insufficient for building and operating the satellites.

On June 6, 2005, Treasury Board granted Preliminary Project Approval (PPA) for the RADARSAT Constellation and expenditure authority for the Project Initial Planning and Identification Phase A at a substantive cost estimate of $13 million (excluding GST). Phase A sought to finalize feasibility studies, define user requirements, payload and bus options for the mission, and reduce technology risks for the antenna, transmit/receive modules, and sensor electronics.

The Phase A work started in July 2005 and was completed in December 2006. Phase A was then extended to allow additional technical risk reduction activities to continue during the period prior to the Phase B contract award. This was completed in March 2008.

A revised PPA (Preliminary Project Approval) Treasury Board Submission to proceed to Phases B and C was approved in March 2007. In December 2006, Public Works and Government Services Canada (PWGSC) initiated a competitive Request for Proposal (RFP) process to identify a prime contractor for the RADARSAT Constellation project (i.e., for Phases B/C/D of the space segment and a portion of the ground segment) and negotiate a contract for Phases B and C with the winning prime contractor, MDA. In September 2008, PWGSC obtained authority to enter into a contract with MDA. Negotiations for Phase B were completed in October 2008 and the contract for Phase B was awarded to MDA in November 2008. Phase B was completed in March 2010. The contract for Phase B was amended to include the scope of Phase C which will continue to January 2012.

As amended, PPA was approved by Treasury Board in December 2010 to provide authorization of $96 million for the procurement of Long Lead Items and $5 million for the AIS Technology Demonstration.

The contract for Phase D would follow successful completion of Phases B and C, obtaining the necessary funding and the granting of Effective Project Approval (EPA) from Treasury Board.

Industrial Benefits

Significant industrial benefits in the space and Earth observation sectors are expected from the RADARSAT Constellation program. It is expected to generate employment growth in the Canadian knowledge-based economy and spur the growth of small and medium-sized businesses as the Canadian infrastructure and services industry continues to grow. As of January 31, 2011, the CSA has funded close to $82 million worth of work to Canadian industry directly attributable to the RADARSAT Constellation Major Crown Project.

Regarding the Canadian content and the distribution of contracts within Canada, the prime contract includes a requirement for 70% Canadian content, excluding launch services, and the Prime contractor is required to apply CSA’s overall regional distribution targets on a “best efforts” basis. In addition, considering the past difficulty in achieving the targets in Atlantic Canada, a minimum requirement of 3.5% of the 70% Canadian content has been set for that region. The prime contract includes reporting obligations and performance measures as well as financial penalties for not meeting the minimum Atlantic Canada content. CSA works closely with the Atlantic Canada Opportunities Agency (ACOA) to monitor regional distribution achievements and to support the prime contractor in the delivery of the given targets.

Regional Distribution of RADARSAT Constellation Mission ($ in millions)
Contracts to Canadian Industry
(as of January 31st, 2011)

	British Columbia	Prairies	Ontario	Quebec	Atlantic Provinces	Total Canada
Targets	10%	10%	35%	35%	10% (3.5% min.)*	100%
Actuals %	29.2%	11.8%	20.9%	35.5%	2.6%*	100%
Actuals $	$23.90	$9.63	$17.06	$29.05	$2.10	$81.75

* The absolute Canadian Content requirement for the Atlantic Canada Region is of 2.45% of the total contract value (3.5% of the 70% Canadian Content Requirement. As of January 2011 this contractual requirement has been met since 2.6% of the total contract value has been achieved in the Atlantic Canada region. This 2.6% corresponds to 3.71% of the 70% Canadian Content Requirement.

Summary of Non-Recurring Expenditures ($ in millions)
(As of March 31, 2011)

Program	Current Estimated Total Expenditure	Actuals at March 31, 2011	Future Years
RADARSAT Constellation	286.6	122.2	164.4

James Webb Space Telescope (JWST)

1-Description

The James Webb Space Telescope (JWST) is a joint mission of NASA, ESA, and the Canadian Space Agency. The mission concept is for a large filled-aperture telescope located 1.5 million km from Earth. Like Hubble, the JWST will be used by the astronomy community to observe targets that range from objects within our Solar System to the most remote galaxies, which are seen during their formation in the early universe. The science mission is centered on the quest to understand our origins, and specifically aimed at:

• Observing the very first generation of stars to illuminate the dark universe when it was less than a billion years old.

• Understanding the physical processes that have controlled the evolution of galaxies over cosmic time, and, in particular, identifying the processes that led to the assembly of galaxies within the first 4 billion years after the Big Bang.

• Understanding the physical processes that control the formation and early evolution of stars in our own and other nearby galaxies.

• Studying the formation and early evolution of proto-planetary disks, and characterizing the atmospheres of isolated planetary mass objects.

The JWST was scheduled for launch in 2014 (the launch date is currently under review by NASA). JWST instruments will be designed to work primarily in the infrared range of the electromagnetic spectrum, with some capability in the visible range. JWST will have a large mirror, 6.5 meters in diameter and a sunshield the size of a tennis court that will both fold up and open once in outer space.

Canada is providing the Fine Guidance Sensor (FGS) and Tuneable Filter Imager (TFI). The FGS is integral to the attitude control system of JWST, and consists of two fully redundant cameras that will report precise pointing information of JWST. Canadian expertise in this area has been established with the successful fine error sensors for the FUSE mission. Packaged with the FGS but functionally independent, the Tuneable Filter Imager is a unique, narrow-band camera with imaging capability. For example, it will allow astronomers to search for extrasolar planets through a technique called coronography, which means that the light from a star will be blocked out so that astronomers can see what is in the star's neighbourhood.

The JWST-FGS Major Crown Project, in partnership with COM DEV Canada, consists of the design, development, integration and testing and integration into the spacecraft, launch and commissioning of the Fine Guidance Sensor and Tunable Filter Imager.

By participating in this leading-edge international space exploration mission, the Canadian Space Agency is actively promoting Canadian scientific expertise and innovative, advanced space technologies. The National Research Council's Herzberg Institute of Astrophysics is a key Government of Canada partner for activities related to the development of science instruments and distribution of telescope data.

In return for its overall investment in the JWST, Canada will obtain a minimum of 5% of the time on this unique space telescope. Already, the news of Canada's involvement in this international space exploration mission is inspiring youth, educators and amateur astronomers, and rallying members of Canada's world-renowned astrophysics community.

Leading and Participating Departments and Agencies

Sponsoring Agency:	Canadian Space Agency
Contracting Authority:	Public Works and Government Services Canada for the Canadian Space Agency
Participating Departments:	NRC’s Herzberg Institute of Astrophysics Industry Canada

Prime and Major Sub-Contractors

Prime Contractor:	COM DEV Canada, Ottawa, Ontario
Major Sub-Contractors:	Teledyne, U.S. Corning Netoptix, U.S. IMP Aerospace Avionics, Canada ABB Bomem, Canada MDA, Canada INO, Canada BMV, Canada CDA, U.S. ESTL, Europe

Major Milestones

The major milestones, by phase, are the following:

Phase	Major Milestones	Date
A	Requirement Definition	2003-2004
B	Preliminary Design	August 2004 to May 2005
C	Detailed Design	July 2005 to September 2008
D	Manufacturing/Assembly; Integration/Testing; Pre-launch preparations, Launch/System Commissioning	May 2007 to 2019 (Launch date is under review by NASA)
E	Operations	2019 to 2024

Note: The Major Crown Project terminates with the completion of Phase D.

Progress Report and Explanation of Variances

In March 2004, Treasury Board gave Preliminary Project Approval for Phases B, C and D at an indicative cost of $67.2 million. In December 2006, before the completion of the detailed design of the FGS, the CSA requested increased expenditure authority to complete the project. Treasury Board granted Effective Project Approval for a substantive total cost estimate of $98.4 million in February 2007 with the condition "that the Canadian Space Agency provide reports to Treasury Board at the completion of Phases C and D of the JWST project which include up-to-date information on the project scope, costs, schedule and risks". At the same time, the project became a Major Crown Project.

The first Critical Design Review (CDR), held in March 2007, for the guider function of the FGS, did reveal some technical issues, which required additional effort to resolve. This Review took place after the Effective Project Approval (EPA) received in February 2007. After this first CDR, with the focus now turning toward the preparation of the system level CDR, new issues became apparent requiring additional analysis. Testing of the Tunable Filter Imager prototype also revealed technical issues that needed to be addressed.

During this transition between the completion of the detailed design phase (Phase C) and the initiation of the manufacturing phase (Phase D) the project faced the prospect of a significant cost growth and therefore required the CSA to return to Treasury Board to amend its Effective Project Approval (EPA) for the JWST Major Crown Project. The current estimated total cost for the Definition and Implementation phases is now $134.7 million (excluding contingency). On December 2007, Treasury Board granted a revised Effective Project Approval. Manufacturing, integration and test of the FGS will be completed during Fiscal Year 2010-2011.

Over the last period, the project has been very busy with the hardware and software development. COM DEV Canada, the prime contractor for the JWST Fine Guider Sensor (FGS) project, has been working on the FGS Engineering Test Unit (ETU) and Proto Flight Model (PFM).

After a successful environment test campaign replicating the conditions of the launch, transition to its operation site and operations the ETU was delivered to NASA Goddard Space Flight Center in September 2010.

On the PFM side, COM DEV Canada has successfully completed the optical alignment of the Guider and TFI at cryogenic temperature and is completing the final integration of all the components before proceeding with the environmental test campaign. One key element of the TFI instrument is still under development and must be completed before entering into the environment test campaign. The PFM is planned to be delivered to NASA Goddard Space Flight Center by the end of 2011 or early 2012.

Industrial Benefits

As of March 31, 2011, the CSA has funded close to $104 million worth of work to Canadian industry directly attributable to the JWST-FGS Major Crown Project. Direct industrial benefits from the construction of the JWST-FGS and TFI system will benefit central regions of Canada. Although there is no regional distribution requirement for this project, the following table provides an approximate distribution:

Regional Distribution of JWST Contracts to Canadian Industry ($ in millions)
(As of March 31, 2011)

	Ontario	Quebec	Atlantic Provinces	Total Canada
Actuals %	89.7%	8.5%	1.7%	100%
Actuals $	$93.20	$8.90	$1.80	$103.9

Summary of Non-Recurring Expenditures ($ in millions)
(As of March 2011)

Program	Current Estimated Total Expenditure	Actuals at March 31, 2011	Future Years
JWST-FGS and TFI	147.5	136.5	11.0

Citizenship and Immigration Canada

Status Report on Major Crown/Transformational Projects—Global Case Management System

Description

The Global Case Management System (GCMS) is the electronic business platform for Citizenship and Immigration Canada (CIC). It is integral to making the citizenship and immigration system more modern, efficient, flexible and responsive to Canada’s labour market. It is essential to improving citizenship and immigration services, maintaining program integrity and strengthening the security of Canada.

GCMS is helping CIC move toward an integrated and virtual business model. GCMS also lays the foundation to support future business improvements and innovation, such as the introduction of e-services and improved identity management through biometrics.

Project Phase

GCMS is currently in the project close-out phase. GCMS was granted preliminary project approval in 2001. In September 2004, it was successfully implemented for the Citizenship Program. The first version of GCMS is being used to process more than 200,000 applications each year for Canadian citizenship and proof of citizenship.

The GCMS major Crown project has been successfully completed and has met all of its major milestones on time and under budget authority. The second release of GCMS, which focused on the overseas immigration program, was deployed to all overseas visa offices between June 2010 and March 2011. With international roll-out now complete, GCMS provides a single, integrated processing capability for all citizenship and overseas immigration applications.

Leading and Participating Departments and Agencies

Lead Department	CIC
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Canada Border Services Agency (CBSA)

Prime and Major Subcontractor(s)

Prime Contractor	None (CIC is responsible for system integration)
Major Subcontractor(s)	None (various subcontractors are used)

Major Milestones

Major Milestone	Date
Funding for the GCMS project was approved at the same time as the implementation of policy reforms and the new Immigration and Refugee Protection Act (IRPA).	August 2000
Preliminary project approval and major Crown project designation granted to GCMS.	March 2001
Effective project approval (EPA) granted to GCMS.	January 2002
Request for proposal for the acquisition of a commercial, off-the-shelf software package for case management posted for tender by PWGSC.	February 2002
Contract for the off-the-shelf software package for case management awarded.	March 2003
Amended EPA granted to GCMS to address the impact of procurement delays.	October 2003
First GCMS business component (Citizenship) implemented.	September 2004
Second EPA amendment granted to address the impact of cumulative slippage that includes critical new requirements in project scope, and provides for an incremental deployment approach.	September 2005
System under development audit of the GCMS project completed.	November 2005
Third EPA amendment granted to address a wording anomaly with regard to the Goods and Services Tax (GST).	December 2006
Independent review indicated the need to assess project status and review options for completing GCMS objectives.	December 2006
Fourth EPA amendment granted to undertake this assessment and to develop a revised go-forward plan.	February 2007
Fifth EPA amendment granted, extending the timeframe for completion of a substantive go-forward plan to late fiscal 2007–08.	October 2007
Independent review validated project’s recovery plan and project team’s readiness to deliver.	December 2007
Sixth EPA amendment granted to reduce scope for the second release of GCMS.	August 2008
Independent review confirmed that technology sound, project schedule achievable and that “success is within sight.”	June 2009
Remainder of funding required to complete the project released.	September 2009
Deployment of new GCMS version to existing citizenship users.	May 2010
GCMS deployment to first visa office overseas.	June 2010
GCMS deployment to all visa offices overseas completed.	March 2011

Project Outcomes

GCMS is CIC’s secure electronic business platform that integrates citizenship and immigration data worldwide. It provides a secure and effective system for managing clients that delivers improved program integrity, increased overall efficiency and better service delivery—all elements of the government agenda—in a complex and changing business environment. GCMS lays the foundation to support future business improvements and innovations such as the introduction of e-services and improved identity management through biometrics.

Progress Report and Explanations of Variances

The GCMS project was completed under its approved budgetary estimate of $387 million and GCMS Release 2 was successfully deployed to all international offices before March 31, 2011.

In August 2008, approval was granted to extend the time required to complete the project to March 31, 2011, and increased the project’s total spending authority to $387 million (including GST). Consistent with recommendations from independent reviews conducted between December 2006 and December 2007, GCMS Release 2 was developed with a reduced scope focused on visa offices overseas.

The GCMS project has faced considerable challenges, adding to the cost and time needed to complete the project, including:

• an overly ambitious scope with no initial phased delivery;
• a change of government direction to commercial off-the-shelf software;
• splitting of immigration with the creation of the CBSA;
• amendments to the IRPA, representing a major change in the administration of the immigration system; and
• a need to respond to increased security risks, while respecting privacy.

Industrial Benefits

This major Crown project does not directly benefit Canadian industry; it is a project to provide CIC with an automated, integrated case management tool to support its global business network and to provide enhanced end-to-end client services to support the delivery of CIC’s services.

Status Report on Major Crown/Transformational Projects—Refugee Reform Program (for CIC¹)

Description

Through implementation of the Balanced Refugee Reform Act, Canada is improving its asylum system with the aim of helping those truly in need and doing so much more quickly. The new legislation seeks to streamline the asylum system to ensure that Canada can continue to provide timely protection to those in need while deterring abuse of the system. All eligible asylum claimants will continue to receive a fair hearing based on their personal situation and will have avenues for appeal. The new measures include:

• changes at the Immigration and Refugee Board of Canada (IRB);
• adding a Refugee Appeal Division at the IRB;
• authority to designate countries of origin;
• limits on pre-removal risk assessments and temporary resident permits;
• changes to the humanitarian and compassionate provisions;
• timely removals of failed asylum claimants;
• introduction of an Assisted Voluntary Returns pilot program; and
• enhancing Canada’s resettlement program.

These new measures will continue to exceed Canada’s international and domestic legal obligations to asylum seekers.

Project Phase

The Balanced Refugee Reform Act implementation project is currently in the execution phase. A joint integrated detailed schedule has been approved by all partners and has been baselined. The project management plan is current and has been approved by all partners. Business and information technology (IT) systems are being developed for testing and implementation during a later project phase. Risk, issue and change management processes have been implemented and are working well. A financial reporting structure has been implemented and is also working well.

Leading and Participating Departments and Agencies

Lead Department	CIC
Contracting Authority	PWGSC
Participating Departments	CBSA, IRB, Department of Justice (DOJ)/Federal Court, Royal Canadian Mounted Police (RCMP), Canadian Security Intelligence Service, Courts Administration Service.

Prime and Major Subcontractor(s)

Prime Contractor	None
Major Subcontractor(s)	Various subcontractors are used on a task authorization basis

Major Milestones

Major Milestone	Date
Royal assent received for Balanced Refugee Reform Act	June 29, 2010
Project charter approved	September 30, 2010
Schedule baselined and approved	December 31, 2010
Project management plan approved	December 31, 2010
Performance measurement strategy to Treasury Board Secretariat	March 31, 2011
Refugee reform: Coming into force (CIF)	June 29, 2012
CBSA launch of assisted voluntary returns pilot project	CIF
CIC launch of ministerial reviews and intervention pilot project	CIF
CIC and RCMP launch of enhanced screening pilot project	CIF
Transfer of pre-removal risk assessment function from CIC to IRB	One year post-CIF
Complete assessment of backlog reduction strategy	March 31, 2013
Complete comprehensive three-year evaluation	March 31, 2015

Project Outcomes

The business outcomes of the Refugee Reform Program include:

• streamlining the process from the point of claim to the end of the determination process and imposition of specific timelines for each step of the process;
• enhancing system integrity by reducing abuse of the system through ongoing monitoring and analysis, increased capacity to conduct ministerial interventions, capacity to designate countries of origin, introducing enhanced security screening on a pilot basis, and making it more efficient by maximizing use of resources (time, human, financial); and
• ensuring timely removals through increased removals capacity at CBSA and the introduction of an assisted voluntary returns pilot project.

As part of the Balanced Refugee Reform Act, the government also announced a 20‑percent increase in the number resettled refugees that Canada will receive each year, to approximately 14,500 persons by 2013. This increase means that, by 2013, Canada will welcome 11% of all refugees resettled from around the world.

Metrics of success are being developed by CIC in conjunction with relevant partners in order to measure the success of the project.

Progress Report and Explanations of Variances

As of March 31, 2011, the project is operating within approved funding authority, on schedule, within approved scope, and with no project issues.

Industrial Benefits

There are no industrial benefits. However, bona fide refugee claimants will benefit from a streamlined process and Canadian society at large will benefit from system integrity and timely removal of failed claimants.

Status Report on Major Crown/Transformational Projects—Temporary Resident Biometrics Project

Description

Today, the use of biometrics is expanding rapidly given its unique approach and its potential to identify an individual reliably. The introduction of biometric technology into the temporary resident immigration stream, beginning in 2013, will enhance the screening of applicants by fixing the client’s identity at the time of application for a visa or for a study or work permit, and allowing verification of that identity when the individual seeks entry at the border. As a result, Canada will better ensure the safety and security of Canadian society and reduce abuse of the immigration system by limiting opportunities for persons with Canadian criminal or deportation histories to use alternate identities to return to Canada. The project will also facilitate the processing of legitimate temporary workers, students and visitors. Many other countries, including such key international partners as Australia, New Zealand, the United Kingdom and the United States, have either recently implemented or are planning to implement similar projects.

Project Phase

The Temporary Resident Biometrics Project is currently in its execution phase. During the execution phase, CIC, CBSA and the RCMP continue to work collaboratively to define the deployment strategies for implementing the Temporary Resident Biometrics Project. The partners completed a critical first step by defining a set of comprehensive business and supporting infrastructure requirements. These requirements will be used to define the business solution and how it will work (functional design), how technology will enable the solution (technical design), and how all the pieces fit and work together (supporting architectures).

Substantive plans and strategies for completing the project and managing the business change were finalized and approved by all partners, culminating in 2010–11 with the posting of the IT solution request for proposal (RFP). EPA was granted on March 24, 2011.

During the execution phase, the project will focus on developing, monitoring and controlling deliverables (as defined by the business requirements), while meeting schedule commitments.

Leading and Participating Departments and Agencies

Lead Department	CIC
Contracting Authority	PWGSC
Participating Departments	CBSA and RCMP

Prime and Major Subcontractor(s)

Prime Contractor	None (Tendering in 2011–12)
Major Subcontractor(s)	Not applicable (N/A)

Major Milestones

Major Milestone	Date
EPA	March 2011
Technical Solution IT RFP Posting on MERX	March 2011
IT RFP Tender	2011–12
Visa Application Centres RFP Posting and Tender	2011–12
Deployment	2012–13
Project Shutdown	2013–14

Project Outcomes

Funding was included in Budget 2008 to enhance and strengthen identity management within the Temporary Resident Program, allowing overseas visa officers and border service officers at ports of entry (POEs) to make decisions based on accurate identity and immigration admissibility information, and permitting border service officers to verify applicants’ identity at Canada’s POEs. As a result, the Government of Canada will be in a better position to reduce identity fraud, enhance the safety and security of Canadians through strengthened criminality screening, and facilitate the processing of legitimate applicants by confirming identity promptly.

Protect Canadians

The rise of identity fraud and theft globally and the use of sophisticated means to evade detection presents challenges for Canada’s immigration program in verifying and managing applicants’ identification. Proper identification of applicants is crucial to the decision-making process of CIC officers abroad and CBSA officers at Canadian ports of entry. Decisions taken by CIC and CBSA form the first line of defence against individuals who pose a criminal or security threat to Canadians and against certain migrants who seek to take advantage of Canada’s high standard of living.

Reduced Abuse of Visa Program

Biometrics will allow the government to detect and deter temporary applicants who use different identities, including previously refused visa or permit applicants.

Reduced Abuse of Refugee Program

Biometrics will make it possible to cross-reference visa or permit applicants against the refugee claimant database and vice versa. Even within the limited scope of the field trial (October 2006 to April 2007), 12 cases out of 1,482 recorded entries into Canada were found between the visa and refugee streams—a rate of 0.8%. Under the auspices of the Five Country Conference, CIC, in partnership with CBSA and the RCMP, began sharing 3,000 fingerprint records per country per year under the High Value Data Sharing Protocol in September 2009. Canada is exchanging bilaterally with Australia, New Zealand, the United Kingdom and the United States. This initiative covers refugee claimants as well as immigration enforcement cases. To date, the protocol has yielded positive results, including potential interventions and warrant closures.

To highlight some successes, as of May 31, 2011, Canada had a 38.7-percent match rate with the United States, a 5.2-percent match rate with the United Kingdom, a 0.1-percent match rate with Australia and 0.3-percent match rate with New Zealand. To date, Canada has sent 10,303 fingerprint records to Australia, New Zealand, the United Kingdom and the United States for matching against their biometric holdings resulting in 1,108 matches and 203 referrals to CBSA regions for possible intervention, vacation of status or warrant closure. Given these successes, development of future systematic biometric immigration information is being explored. This type of biometric matching could increase the quality of evidence available for decision makers at the IRB to establish the credibility of refugee claims. This initiative forms part of CIC’s contribution to a joint action plan being developed under the Canada–United States Vision for Perimeter Security and Economic Competitiveness.

Facilitate Removals

Biometrics will facilitate the removal of individuals who should not be in Canada by linking undocumented foreign nationals to the identity and place of origin stated on their visa application. Of the approximately 23,172 in-Canada refugee claimants in 2010, 6,215 or 27% were without identity or travel documents. Biometrics will also detect previous deportees who apply for a Canadian visa under a different identity, thereby preventing them from returning to Canada.

Ensure Border Security

Biometric verification at the POE will strengthen identity management and allow CBSA officers to confirm that the individual arriving in Canada is the same one to whom CIC issued the visa or permit abroad. Currently, one of the key vulnerabilities is the inability to ensure that the visa or permit and the genuine holder remain together once the document is issued by CIC. It is this gap that resulted in 454 Canadian visas being used fraudulently by foreign nationals to travel to Canada in 2010. This includes altered and counterfeit visas as well as impostor fraud. The actual extent of the abuse is estimated to be higher than this figure suggests as not all fraud is detected.

Improve Service Delivery by Building a Global Network of Visa Application Centres

Since 2005, the Government of Canada has contracted with private service providers to operate visa application centres (VACs) that deliver a range of visa services to applicants in 37 locations in 18 countries from Africa, Asia, Eastern Europe and, more recently, Mexico. Safeguards governing the protection of personal information will continue to be part of the terms of agreement with each service provider. In 2010, as a part of its modernization agenda, the Department developed a plan to implement an expanded global service delivery network of VACs, which will enhance service delivery by providing visa applicants easier access to services closer to home and include biometrics enrolment. Given the high volume of temporary resident applications from visa-required foreign nationals temporarily residing in the United States, service delivery options are being explored to allow the applicants to enrol their biometrics at U.S. application support centre locations.

Over the course of the last year, the Department has made important strides in the development of a plan to implement an expanded global service delivery network of VACs. In collaboration with its project partners, the Department has developed a concept of operations, business process maps and the business and technical requirements for its VAC network. In addition, it has conducted industry consultations, which supported the preparation of a statement of work for the upcoming launch of the VAC RFP in 2011–12.

Progress Report and Explanations of Variances

In late 2007, CIC sought policy approval for the introduction of biometrics into the Temporary Resident Program, and funding to support this initiative was included in Budget 2008. On March 24, 2011, EPA for the Temporary Resident Biometrics Project was granted. As part of the major Crown project management process, a department requests an EPA when the planning phase is complete to obtain authority to implement the project. Another significant milestone for the project occurred March 4, 2011, when the biometrics IT solution RFP was posted on the MERX website. The aim of the RFP is to find a vendor that will design, develop and test the biometrics system required to implement the project. The Temporary Resident Biometrics Project is currently in the execution phase; it is scheduled to move into the implementation phase, delivering the project in 2013–14.

EPA was granted for the Temporary Resident Biometrics Project at an indicative cost estimate of $180,282,906, including GST and Harmonized Sales Tax (HST) of $11,430,878 to undertake the activities necessary to complete its planning, design, development and deployment over six years, from 2007–08 to 2013–14.

CIC is the lead organization on this initiative. The project will be delivered in partnership with CBSA and the RCMP, with legal support and support for legislative amendments from DOJ.

On a cash basis, the total cost over six years is $168,852,028 excluding GST/HST of $11,430,878.

CIC, CBSA and the RCMP received expenditure authority at a substantive cost of $62,787,014, excluding HST of $5,102,611 for the implementation of Gate 1 and continuing activities for the project’s Gate 2 deliverables.

In early 2011 an independent review concluded that the project is a solid initiative with a good approach, has clear objectives that are important and measurable, is highly aligned with the core mandates of the three partner agencies, is well defined, and does not have challenges associated with other projects. The review did highlight that the Temporary Resident Biometrics Project is dependent on a significant number of interrelated projects and activities that will need to continue to be monitored.

Chapter Two of the 2011 June Status Report of the Auditor General of Canada, “Large Information Technology Projects,” assessed whether selected departments and agencies had made satisfactory progress in implementing recommendations made in the November 2006 report of the Office of the Auditor General (OAG). As part of this report, the OAG selected the Temporary Resident Biometrics Project in CIC to assess Treasury Board Secretariat’s progress in the way it approves and manages large IT projects since 2006. The biometrics project was found to meet most of its criteria for a well-managed project and was rated satisfactory. CIC is acting on the report’s only recommendation to strengthen risk management by introducing a regular review of project risks and issues, which are reported to senior management committees, by tracking all risks and developing mitigation strategies to address them, and by conducting an independent review at critical project gates to ensure sound management of the project is maintained.

Industrial Benefits

The Temporary Resident Biometrics Project will improve the safety and security of Canadian citizens. Immigration and the granting of Canadian citizenship are vital to the continued growth and prosperity of Canada. To support the Government of Canada outcomes of strong economic growth and a safe and secure world, a balance must be maintained between the desire to welcome newcomers to Canada and the obligation to protect the health, safety and security of Canadian society. Criminals, terrorists and other known inadmissible persons must not be allowed to enter or stay in Canada.

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1 The Refugee Reform Program follows many Treasury Board Secretariat reporting requirements. Although the Refugee Reform is not a major crown project, CIC is voluntarily reporting on this project as a part of its Supplementary Information Table on the Status of Transformational Projects and Major Crown Projects.

Fisheries and Oceans Canada

Status Report on Major Crown Projects

Mid-Shore Patrol Vessels

Description

The Mid-Shore Patrol Vessels (MSPV) project will acquire 9 Mid-Shore Patrol Vessels for the Canadian Coast Guard (CCG) Fleet - five of the nine MSPV will be used primarily to support the Conservation and Protection Program in the Maritimes, Quebec and Pacific Regions. The other four vessels will be used in a joint program with the Royal Canadian Mounted Police (RCMP) to enhance maritime security along the Great Lakes – St. Lawrence Seaway system. This project serves two purposes:

Fleet Renewal - the acquisition of conservation and Protection patrol vessels represents the first step in modernization of the CCG fleet and will ensure the integrity of the fishery monitoring program and will provide the capacity for DFO to support the strategic role in fisheries enforcement; and

Maritime Security - the acquisition of MSPV for Maritime Security will allow CCG, in conjunction with the RCMP, to respond to the Government's commitment to enhance the security of the nation's coasts and waterways.

Project Phase

The MSPV Project is currently in the Construction phase.

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Industry Canada; RCMP; Treasury Board Secretariat; Privy Council Office; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Public Safety Canada; Department of National Defence.

Prime and Major Subcontractor(s)

Prime Contractor	Irving Shipbuilding Inc. P.O. Box 9110, 3099 Barrington Street Halifax, Nova Scotia B3K 5M7 Operating as: Halifax Shipyard
Major Sub-contractor(s)	International Contract Engineering, Damen, Lloyd's Register, MTU.

Project Outcomes

The MSPV project supports the Vessel Procurement and Fleet Renewal Objectives of the Canadian Coast Guard.

Project milestones have been developed and served as outcomes for the MSPV project. Coast Guard's Vessel Procurement Sector is currently developing a Performance Measurement Framework for 2011-12, in line with changes being undertaken to the DFO Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

All 2010-11 objectives for the MSPV project were achieved. The procurement of nine MSPVs by 2014 is on track.

In August 2009, a contract was awarded to Irving Shipbuilding Inc. for the procurement of 9 MSPV. Construction of the first vessel began in September 2010.

Industrial Benefits

Canadian industry will benefit from this project. The Request for Proposal requires overall Industrial Benefits equal to 100% of contract value. Regional allocation of industrial benefits is monitored by Industry Canada.

Major Milestones

Major Milestone	Date
Preliminary Project Approval	August 2005
Effective Project Approval	June 2006
1st Request for Proposal (RFP) (cancelled)	July 2007
Amended Effective Project Approval – to include 4 additional vessels identified in Budget 2007	December 2007
2nd Request for Proposal issued (cancelled)	August 2008
3rd Request for Proposal issued	March 2009
Contract Awarded	August 2009
First Vessel Delivery	Winter 2012
Delivery of final MSPV	Winter 2014

Offshore Fisheries Science Vessels

Description

The Offshore Fisheries Science Vessels (OFSV) project will acquire three OFSV for the Canadian Coast Guard (CCG) Fleet. The OFSV will replace four aging Coast Guard ships on the east and west coasts of Canada that provide a platform from which critical scientific research and ecosystem-based management can be performed.

Project Phase

The OFSV Project is currently in the design phase.

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments or Agencies	Industry Canada; Treasury Board Secretariat; Privy Council Office; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Sub-contractor(s)	Design Contractor: Robert Allan Ltd., Alion Science and Technology (Canada) Corporation and Alion Science and Technology Corporation in joint venture.

Project Outcomes

The OFSV project supports the Vessel Procurement and Fleet Renewal Objectives of the Canadian Coast Guard. Project outcomes contribute to the Fleet Operational Readiness Program Activity in DFO's Program Activity Architecture.

Progress Report and Explanations of Variances

The 2010-11 Report on Plans and Priorities commitment was met. During 2010-11, the concept design phase was finalized and the project progressed into the Preliminary Design phase. In June 2010, the Government of Canada announced that the three OFSV will be built under the National Shipbuilding Procurement Strategy (NSPS). Currently, the project is on schedule to meet the timelines identified for NSPS with the design contract completion scheduled for Fall 2011 and Construction Contract Award scheduled for Spring 2012. Two OFSV are planned to be delivered by 2014 and one in 2015.

Project milestones have been developed and served as outcomes for the OFSV project. Coast Guard's Vessel Procurement Sector is currently developing a Performance Measurement Framework for 2011-12, in line with changes being undertaken to the DFO Program Activity Architecture and Management, Resources and Results Structure.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.

Major Milestones

Major Milestone	Date
Preliminary Project Approval	October 2005
Amended Preliminary Project Approval	November 2006
2nd Amended Effective Project Approval – to include 4 additional vessels identified in Budget 2007	June 2009
Issue Request for Proposal for Design	Spring 2010
Government of Canada announced that the three Offshore Fisheries Science Vessels will be built under the National Shipbuilding Procurement Strategy	June 2010
3rd Amended Preliminary Project Approval — to award contract	September 2010
Issue Design Contract	October 2010
Design Contract Completion	Fall 2011
Effective Project Approval — Target Date	Winter 2012
Construction Contract Award	Spring 2012
First two Vessels to be delivered	2014
Delivery of final OFSV	2015

Offshore Oceanographic Science Vessel

Description

The Offshore Oceanographic Science Vessel (OOSV) project will acquire a replacement vessel for the Canadian Coast Guard's largest science vessel - CCGS Hudson. This vessel was built in 1963 and its replacement is critical to fulfilment of the Department's science mandate as well as mandates of other government departments and agencies. The vessel currently operates on the east coast of Canada.

Project Phase

The OOSV Project is currently in the design phase.

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments or Agencies	Industry Canada; Environment Canada; Natural Resources Canada; Treasury Board Secretariat; Privy Council Office; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Sub-contractor(s)	Design Contractor: STX Canada Marine Inc.

Project Outcomes

The OOSV project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard.

Project milestones have been developed and served as outcomes for the OOSV project. Coast Guard's Vessel Procurement Sector is currently developing a Performance Measurement Framework for 2011-12, in line with changes being undertaken to the DFO Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

The 2010-11 Report on Plans and Priorities commitment was met. In June 2010, the Government of Canada announced that the Offshore Oceanographic Science Vessel would be built under the National Shipbuilding Procurement Strategy (NSPS). Currently, the project is on schedule to meet the timelines identified for NSPS with the design contract completion scheduled for Fall 2011 and construction contract award scheduled for Spring 2012. The vessel is scheduled to be delivered in late 2014 rather than 2013.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.

Major Milestones

Major Milestone	Date
Preliminary Project Approval	July 2008
Government of Canada announced that the three Offshore Oceanographic Science Vessel will be built under the National Shipbuilding Procurement Strategy	June 2010
Contract Award for Design	Fall 2010
Design Completion	Fall 2011
Effective Project Approval – Target Date	Winter 2012
Construction Contract to be Awarded	Spring 2012
Delivery of OOSV	Late 2014

Polar Icebreaker Project

Description

The new Polar Icebreaker is expected to be delivered in time for the decommissioning of the CCGS Louis S. St-Laurent. This new polar icebreaker will help strengthen Canada's Arctic sovereignty and will be able to operate in the Arctic in more difficult weather conditions and for a longer period of time - 3 seasons instead of the current 2 seasons.

Project Phase

The Polar Icebreaker Project is currently in the definition phase.

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments or Agencies	Industry Canada; Treasury Board Secretariat; Privy Council Office; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Environment Canada; National Defence.

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Sub-contractor(s)	n/a at this time

Project Outcomes

The Polar Icebreaker project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard, and supports the Government's Northern Strategy.

Project outcomes contribute to the Fleet Operational Readiness Program Activity in DFO's Program Activity Architecture.

Progress Report and Explanations of Variances

The 2010-11 Report on Plans and Priorities commitment was met. The Baseline Requirements were developed and finalized in 2010-11 and are now being used to instruct and guide the Conceptual Design Package. The Polar Icebreaker is scheduled for delivery in 2017.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.

Major Milestones

Major Milestone	Date
Preliminary Project Approval	June 2009
Design Contract Awards — Target Date	2011
Effective Project Approval — Target Date	2013
Contract Award (Construction)	2013
Delivery of Polar Icebreaker	2017

Air Cushion Vehicle

Description

The Government of Canada is procuring an Air Cushion Vehicle (ACV or hovercraft) to replace CCGS Penac at the Canadian Coast Guard Sea Island Hovercraft Base in Richmond, British Columbia. It will provide ongoing search and rescue coverage in the area, allowing CCG to continue to fulfill its mandate and maintain current levels of service.

Project Phase

The Air Cushion Vehicle (ACV) is currently in the construction phase.

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments or Agencies	Treasury Board Secretariat

Prime and Major Subcontractor(s)

Prime Contractor	Griffon Hoverwork Ltd. Merlin Quay, Hazel Road, Woolston, Southampton SO19-7GB United Kingdom.
Major Sub-contractor(s)	Aluminium Marine Consultant's Limited of Cowes, Isle of Wight (Hull Manufacture /Craft fit out).

Project Outcomes

The ACV project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard. Project outcomes contribute to the CCG Pacific Fleet Search and Rescue operational readiness.

Progress Report and Explanations of Variances

Contractor's proposal and contract negotiations were not completed until March 2011. Contract was awarded on March 15, 2011.

Industrial Benefits

Not applicable, as craft is being built in England.

Major Milestones

Major Milestones	Date
Project announced in Federal Budget 2010	March 2010
Effective Project Approval	May 2010
ACAN put on MERX September 2009, closed September 28, 2010 No challenges to the ACAN were received from Canadian Industry	September 2010
Meeting with the proposed Contractor Griffon Hoverwork Ltd. on the Isle of Wight England mid November 2010. Discussed pro-forma contract, TSOR, Delegated Statutory Inspection Regime and Lloyd's Register	November 2010
TSOR Clarifications issues received from GHW Ltd. and CCG response early December 2010	December 2010
GHW Ltd Submits a priced proposal January 07, 2011	January 2011
Following the Crown's review of the Contractor's proposal and successful contract negotiations the contract was awarded to GHW Ltd. on March 15,2011 Contract Award (Construction)	March 15, 2011
Delivery of the Air Cushion Vehicle	Fall 2013

Health Canada

Status Report on Major Crown/Transformational Projects

Description

Health Information and Claims Processing Services (HICPS) Major Crown Project.

HICPS is the key delivery mechanism for the payment of pharmacy, medical supplies and equipment, and dental benefits under Health Canada's Non-Insured Health Benefits (NIHB) Program.

The HICPS Project was established to conduct a competitive procurement to replace the former HICPS contract, to manage the implementation of the new service contract and ensure a smooth transition from the former incumbent to the new contractor.

Project Phase

Project Close-Out Phase: The HICPS Major Crown Project entered the project close-out phase upon implementation of the new Health Information and Claims Processing Services into production on December 1, 2009. The system continues to be fully operational as a satisfactory service.

Overview: HICPS supports the delivery of much-needed health benefits for over 846,000 eligible First Nations and Inuit clients. Express Scripts C Canada commenced operations in December 2009 with implementation of the new HICPS system. Transition between the previous claims processor and the new Contractor was managed without major impact to Non-Insured Health Benefits' First Nation and Inuit Clients.

Leading and Participating Departments and Agencies

Lead Department	Health Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Indian and Northern Affairs Canada

Prime and Major Subcontractor(s)

Prime Contractor	Express Scripts Canada (ESIC), Mississauga, Ontario, Canada
Major Subcontractor(s)	Not in RPP 2010-2011

Major Milestones

Major Milestone	Date
Initial meetings with Contractor, coordination of implementation phase project plan	Contract Award (December 4, 2007 through January 2008)
Business Requirements Gathering and Design	February 2008 to August 2008
HICPS Development	September 2008 to April 2009
HICPS Testing and Acceptance	May to September 2009
Documentation, Simulations, Validation, Data Conversion and Training	September 2009 to November 2009
HICPS Implementation (ESIC officially takes over real-time service provision)	December 6, 2009
Project Close-Out Phase. Includes: Finalization of System fixes and adjustments; Refinement of some services; and, Evaluation of the HICPS Project and lessons learned.	December 2010 to December 2011

Project Outcomes

The Implementation Phase of the HICPS project was concluded on time and on budget in December 2009. All steps were taken to ensure a seamless transition to Non-Insured Health Benefits clients. Some system adjustments, service refinements and enrolment of providers continued after system implementation. However, the new HICPS system has successfully processed pharmacy, dental, and MS&E benefits for First Nation and Inuit clients since the implementation date.

The Project has now entered the Close-Out Phase and an evaluation is being completed of the HICPS project and lessons learned. The evaluation is scheduled to be completed by December 2011.

The project schedule and budget are consistent with the amount granted by the project authorities.

Progress Report and Explanations of Variances

HICPS was implemented on December 6, 2009 and transition completed between the two service contracts. ;

For fiscal 2010-11, the focus of this initiative has been on refinement of the services and the system project evaluation.

Industrial Benefits

The Industrial Regional Benefits (IRB) model was modified to focus on benefiting the Aboriginal economic community, rather than a specific industry or region of Canada, resulting in an Aboriginal benefit requirement (ABR) which is unique to the HICPS Project.

The development of the ABR approach for the HICPS Project was informed by industry feedback through two Requests for Information (RFI) consultation processes, and approved by Treasury Board. As HICPS Prime Contractor, Express Scripts Canada is required to ensure a mandatory and substantial Aboriginal benefits requirement representing direct or indirect benefits to Aboriginal businesses or individuals.

National Defence

Status Report on Major Crown/Transformational Projects

For Fiscal Year 2009-2010

Table of Contents

• AIRLIFT CAPABILITY PROJECT - STRATEGIC (ACP-S)
• AIRLIFT CAPABILITY PROJECT - TACTICAL (ACP-T)
• ARCTIC/OFFSHORE PATROL SHIP (AOPS)
• ARMOURED PERSONNEL CARRIERS (APC)
• CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM (CCMP)
• CANADIAN FORCES SUPPLY SYSTEM UPGRADE (CFSSU)
• CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER (CFUTTH) PROJECT
• CANADIAN SEARCH AND RESCUE HELICOPTER (CSH) PROJECT
• CANADIAN SURFACE COMBATANT PROJECT (CSC)
• CLOSE COMBAT VEHICLE (CCV)
• FORCE MOBILITY ENHANCEMENT (FME)
• HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION (HCM/FELEX)
• INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE (ISTAR)
• LIGHT ARMOURED VEHICLE III UPGRADE PROJECT (LAV III UPGRADE)
• JOINT SUPPORT SHIP (JSS)
• LIGHT UTILITY VEHICLE WHEELED (LUVW)
• LIGHTWEIGHT TOWED HOWITZER (LWTH)
• MARITIME HELICOPTER PROJECT (MHP)
• MATERIEL ACQUISITION AND SUPPORT INFORMATION SYSTEM (MASIS)
• MEDIUM SUPPORT VEHICLE SYSTEM PROJECT (MSVS)
• MEDIUM-TO-HEAVY LIFT HELICOPTER (MHLH)
• MILITARY AUTOMATED AIR TRAFFIC SYSTEM (MAATS) PROJECT
• NEXT GENERATION FIGHTER CAPABILITY (NGFC)
• PROTECTED MILITARY SATELLITE COMMUNICATIONS (PMSC)
• SUBMARINE CAPABILITY LIFE EXTENSION (SCLE)
• TACTICAL ARMOURED PATROL VEHICLE (TAPV)
• TANK REPLACEMENT PROJECT (TRP)
• WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION (WLAV LE)

AIRLIFT CAPABILITY PROJECT - STRATEGIC

Description

The objective of the Airlift Capability Project - Strategic (ACP-S) is to acquire four new aircraft that will provide the Canadian Forces (CF) with the global reach and speed necessary to operate effectively over long distances, as well as to deliver personnel and cargo directly into a theatre of operation, including threat environments.

Project Phase

Implementation: All four aircraft have been accepted on schedule and project close-out is expected for summer 2012.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	The Boeing Company, St-Louis, Missouri, USA

 

Major Milestones

Major Milestone	Date
Synopsis Sheet (Effective Project Approval)	June 2006
Advanced Contract Award Notice Posted on MERX	July 2006
Contract Award	February 2007
Delivery First Aircraft	August 2007
Delivery Second Aircraft	October 2007
Delivery Third Aircraft	March 2008
Delivery Fourth Aircraft	April 2008
Initial Operational Capability	October 2008
Full Operational Capability	Spring 2012
Project Close-Out	Summer 2012

 

Project Outcomes

Deliver four aircraft and the required infrastructure at 8 Wing Trenton.  Once declared at full operational capability it will contribute towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal. 

The beneficiary of this capability is the Aerospace and Land Forces. 

Progress Report and Explanations of Variances

All four aircraft have been accepted on schedule and the fleet has already flown in excess of 13,500 flying hours. The project office is currently working on the Implementation Phase of the project. As the project transitions to in-service support, Full Operational Capability is expected in spring 2012 when the infrastructure at Trenton is completed and the Squadron can sustain all planned mission types as stated in the Statement of Operational Requirement. 

Industrial Benefits

Industrial and Regional Benefits (IRB) are equivalent to 100% of the acquisition contract, Boeing's share of the in-service support Foreign Military Sales contract value, and the value of the engines. (A separate IRB agreement was negotiated with Pratt and Whitney USA for the value of the C-17 engines). The three IRB agreements total $1.9B. Several IRB announcements have been made and all regions of Canada are benefiting from these contracts.

AIRLIFT CAPABILITY PROJECT - TACTICAL

Description

The objective of the Airlift Capability Project - Tactical (ACP-T) is to ensure a continued tactical airlift capability. This project will replace the Canadian Force's aging CC 130E Hercules fleet. It will also provide the CF with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.

Project Phase

The project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 C-130J aircraft. Aircraft deliveries began in June 2010. The final aircraft is to be delivered no later than August 2012. 

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	Lockheed Martin Corporation, Marietta, Georgia, USA
ISS Sub-Contractor	Cascade Aerospace, Abbotsford, British Columbia, Canada
ISS Sub-Contractor	IMP Aerospace, Enfield, Nova Scotia, Canada
ISS Sub-Contractor	CAE, Montreal, Quebec, Canada
ISS Sub-Contractor	Standard Aero, Winnipeg. Manitoba, Canada
ISS Sub-Contractor	HAAS Group, Oshawa, Ontario, Canada

 

Major Milestones

Major Milestone	Date
Revised Preliminary Project Approval	June 2006
Solicitation of Interest and Qualification	August 2006
Issue of Request For Proposal	August 2007
Effective Project Approval	December 2007
Contract Award	December 2007
First Aircraft Delivery	June 2010
Initial Operational Capability	January 2013
Full Operational Capability	September 2016
Project Close-Out	December 2014

 

Project Outcomes

The ACP-T project will deliver 17 C-130J aircraft and once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal; and ensuring National Defence is ready to meet government defence expectations, specifically the program activity of Aerospace Readiness. 

The beneficiary of this capability is the Aerospace and Land Forces. 

Progress Report and Explanations of Variances

Canada's first aircraft arrived in Canada in June 2010, six months ahead of its original scheduled delivery date. Nine aircraft have now been delivered. During the remainder of 2011, four additional aircraft are scheduled for delivery and by August 2012, the last four aircraft will have been delivered. 

With recent contract amendments and in conjunction with infrastructure upgrades at the aircraft's Main Operating Base in Trenton, Ontario, the support systems are progressively being established to accommodate the new fleet as it is delivered. 

The ACP-T project is currently running on schedule and on budget. 

Industrial Benefits

Lockheed Martin Corporation has committed to provide Industrial and Regional Benefits (IRB) equivalent to 100% of the eligible contracted value for both the capital acquisition and the in-service support portions, including a 15% requirement for the participation of small and medium business. The IRB requirements are administered by Industry Canada, through Public Works and Government Services Canada, for the duration of the contract and any amendments.

ARCTIC/OFFSHORE PATROL SHIP

Description

The Arctic/Offshore Patrol Ship (AOPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to demonstrate sovereignty in Canada's waters, including the Arctic. The AOPS project is acquiring six to eight Arctic/Offshore Patrol Ships, the in-services support elements, jetty infrastructures in Halifax and Esquimalt as well as a berthing and fuelling facility at Nanisivik, Nunavut.

Project Phase

The Project Definition Phase will produce an AOPS ship specification and drawing package that the NSPS selected shipyard will be contracted for the detailed design and build the AOPS. 

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

Prime and Major Subcontractor(s)

AOPS procurement will proceed with the National Shipbuilding Procurement Strategy (NSPS) as announced by the Government of Canada in June 2010. It is anticipated that NSPS will complete the selection and negotiation of the umbrella agreement with the shipyards in fall 2011. The AOPS procurement strategy will include the award of a negotiated acquisition contract to the selected NSPS shipyard and a separate competition for the award of the 25-year In-Service Support Contract.

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval	May 2007
Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP)	December 2007
DELMS RFP Close	February 2008
DELMS Contract Award	May 2008
Effective Project Approval	June 2012
Award of Implementation Contract	June 2012
Delivery of First Ship	2015
Initial Operating Capability of First Ship	2016
Project Complete	2022

 

Project Outcomes

Deliver six to eight ships, a 25 year In-Service Support Contract and associated infrastructures in Halifax, Esquimalt and Nanisivik.  This project will sustain Maritime Forces capabilities of conducting armed, sea-borne surveillance of Canada's waters, including the Arctic.  Once declared at full operational capability it will contribute towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectation, specifically the program activity of Maritime Equipment Acquisition and Disposal. 

The beneficiary of this capability is the Maritime Forces. 

Progress Report and Explanations of Variances

The project continues to progress steadily since obtaining Preliminary Project Approval (PPA) in May 2007 with full up indicative cost excluding GST or HST of $3.0308B ($BY) for Implementation Phase. The Project Definition Phase will produce an AOPS ship specification and drawing package that will be sued when the NSPS selected shipyard is contracted for the detailed design and build. 

Industrial Benefits

Industrial and Regional Benefits (IRB) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.

ARMOURED PERSONNEL CARRIERS

Description

The Armoured Personnel Carrier (APC) is essential for all foreseeable CF roles, including territorial defence, United Nations (UN) peacekeeping and peace enforcement operations, other international commitments, and aid of the civil power. The existing APC fleet did not meet the minimum operational requirements when compared to the modern, technically sophisticated weapons and vehicles Canadian soldiers encounter during operations. They suffered shortcomings in protection, self-defence capability, mobility, carrying capacity and growth potential. The APC project fielded a fleet of modern, wheeled, armoured personnel carriers. 651 Light Armoured Vehicles (LAV) III were procured in six configurations: Infantry Section Carrier, Command Post, Engineer, Forward Observation Officer, TOW (Tube Launched, Optically Tracked, and Wire Guided) Under Armour, and LAV III Less Kits. The latter was eventually configured into the LAV III with Remote Weapon Station.

Project Phase

Implementation: All vehicles were delivered by October 2007 and construction activities for indoor accommodation are well under way. The project is scheduled for completion in March 2012.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	General Dynamics Land Systems, London, Ontario, Canada

 

Major Milestones

Major Milestone	Date
Treasury Board Approval	December 1995
Contract Award	December 1996
First Vehicle Delivery	July 1998
Exercise of First Option	July 1998
Exercise of Second Option	July 1999
Exercise of Third Option	July 1999
Last Vehicle Delivery	October 2007
Project Completion	March 2012

 

Project Outcomes

Deliver 651 LAV III vehicles including variants that met the specific performance requirements as well as infrastructure upgrades to accommodate LAV III vehicles in six locations across Canada. This outcome has been achieved under the Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectation, specifically the program activity of Land Equipment Acquisition and Disposal. 

The beneficiary of this capability is the Land Forces. 

Progress Report and Explanations of Variances

In August 1995, the Government approved, in principle, the procurement of up to 651 APCs. In January 1997, the Government announced the award of a contract to General Dynamics Land Systems - Canada (GDLS-C) to build 240 new eight-wheel-drive APCs. The contract contained three options for an additional 120 and 171 APCs respectively. All three options have been exercised. All vehicles were delivered by October 2007.

The vehicles have been involved in significant operational demands after being fielded and have performed well. They have since undergone a number of modifications to adjust to the modern threat, and will require additional work to optimize their performance against these threats. A separate project has been launched to address this issue.

In March 2004, Treasury Board (TB) authorized $129M for indoor accommodation of the LAV III to facilitate regular maintenance and training programs, and prevent any deterioration that would result from outdoor storage. Construction of these accommodations will take place in six locations: Edmonton, Wainwright, Petawawa, Montréal, Valcartier, and Gagetown. Construction activities are scheduled for completion in early 2012 with a project closure as early as March 2012.

Industrial Benefits

This project includes industrial benefits valued at $1.595B with $852.9M in direct Industrial and Regional Benefits (IRB) and $742.9M in indirect IRBs.

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM

Description

The Canadian Cryptographic Modernization Program (CCMP) is an omnibus project that will modernize the Government of Canada's aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada's ability to establish secure communications both nationally and internationally. 

The CCMP omnibus project includes the following sub-projects:                                               

• Secure Voice / Telephone Re-key Infrastructure;
• Secure Voice / Telephone Family;
• Classified Security Management Infrastructure;
• Combat Identification Family (Identification Friend or Foe (IFF));
• Link Encryption Family;
• Network Encryption Family;
• Secure Radio Family; and
• Secure Mobile Environment.

Project Phase

Implementation for some sub-projects, Definition for others. 

Leading and Participating Departments and Agencies

Lead Department	Communications Security Establishment Canada (CSEC)
Contracting Authority	Public Works & Government Services Canada (PWGSC)
Participating Departments and Agencies	Government of Canada departments and agencies using cryptographic equipment to protect classified information

 

Prime and Major Subcontractor(s)

Prime Contractor	N/A
Major Subcontractor(s)	Various allied manufacturers of cryptographic equipment

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval for the CCMP Omnibus Project	March 2005
Preliminary Project Approval for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure	November 2006
Secure Voice / Telephone Re-key Infrastructure	September 2009
Secure Voice / Telephone Family	December 2011
Classified Security Management Infrastructure - Phase 1A	2012
Classified Security Management Infrastructure - Phase 1B	2012
Link Encryption Family	2013
Secure Mobile Environment	2014
Network Encryption Family	2014
Classified Security Management Infrastructure - Phase 2	2016
Combat Identification Family (Identification Friend or Foe (IFF))	2016
Secure Radio Family	2016
Classified Security Management Infrastructure - Phase 3	2020

 

Project Outcomes

Deliver affordable Information Protection by means of cryptographic solutions with an adequate level of security to protect Government of Canada classified electronic information and to provide enhanced interoperability to facilitate the exchange of classified information both nationally and internationally.  This requires the right balance between interoperability and sovereignty, while striving to meet unique Canadian requirements.  Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Defence operations will improve peace, stability and security wherever deployed, specifically the program activity of Support to Intelligence, Surveillance and Reconnaissance.

Progress Report and Explanations of Variances

The CCMP is on budget. The CCMP schedule is dependent on the American Cryptographic Modernization and Key Management Infrastructure programs. This allows Canada to leverage American Research and Development and maintain interoperability with its Allies. Completion dates for the sub-projects are regularly reviewed to keep them aligned with the American programs. 

• The CCMP originated as a 12-year program ending in 2016. However, the end date of the Classified Security Management Infrastructure project will need to be extended past 2016 to remain aligned with the U.S. Key Management Infrastructure Program. While the Classified Security Management Infrastructure baseline schedule and cash flow will be updated, extending the end date will not impact the overall cost of the CCMP.

Industrial Benefits

There are no associated Industrial and Regional Benefits (IRB) with this project. 

CANADIAN FORCES SUPPLY SYSTEM UPGRADE

Description

The Canadian Forces Supply System Upgrade (CFSSU) project will meet the future supply requirements of the Canadian Forces (CF) during all operational situations while effectively and economically managing Defence's inventory. The system will have an inherent flexibility to manage changes in force structure, size and type of mission. The CFSSU project will employ information technology to modernize CF military supply operations. Not only will this technology dramatically improve productivity, it will also enhance the capability for performance measurement, greatly increase asset visibility, and provide a powerful management tool for provisioning. Additionally, the new supply system will have a deployed capability. The deployed solution is complementing the existing September 2001 corporate implementation to Bases and Wings, as well as the November 2002 implementation, which include all remaining CFSS users, at home and overseas.

Project Phase

Close-Out. CFSSU has been deployed on 17 ships as well as at two sites for Canadian Special Operations Forces Command (CANSOFCOM).

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments and Agencies	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	EDS Canada Inc., Ottawa, Ontario, Canada
Major Subcontractor(s)	Mincom Pty. Ltd., Brisbane, Queensland, Australia ADGA Group, Ottawa, Ontario, Canada

 

Major Milestones

Major Milestone	Date
Contract Award	January 1995
Initial Site Installation	December 1995
Warehouse Management Information System Delivery	July 1997
Test Development Centre Delivery	October 1999
Commence System Development	November 1999
Complete System Development	March 2001
Commence System Pilot	June 2001
Complete System Pilot	August 2001
Commence System Rollout	September 2001
Complete System Rollout	June 2003 (official acceptance)
Project Close-Out (E Status)	September 2004
Project Close-Out (I Status)	Spring 2010

 

Project Outcomes

The CFSSU project contributed to the modernization of military supply operations and inventory management in support of CF operations. In simple terms, the objective of CFSSU project is to supply the right item, at the right time, in the right place, under all conditions, cost-effectively.   The CFSSU solution made maximum use of proven technology.  The project leveraged the Information Management System provided by the company Mincom (MIMS) platform to provide standardized methods of providing supply support to military operations in all three environments - sea, land and air.  The CFSSU project delivered the following capabilities:

• MIMS version 4.4 plus specific user requirements related to warehousing;
• Deployed MIMS solution;
• Bar code functionality at the 7 Canadian Forces Supply Depot (CFSD) and 3 Canadian Supply Group (3 CSG);
• Interfaces with other systems such as the National Materiel Distribution System (NMDS), the Canadian Government Cataloguing System (CGCS) and the Financial Management and Accounting System (FMAS); and
• Customised supply and inventory management reports.

This project contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcomes: Acquiring the resources to meet government defence expectations in all 3 environments, Maritime, Land and Aerospace Equipment Acquisition and Disposal.

The beneficiary of this capability is the Canadian Forces.

Progress Report and Explanations of Variances

TBS initially approved the CFSSU project with an estimated cost of $289.3 million. TBS approved in April 2000, the de-scoping of certain functionality and an increase of $9.8 million to project contingency funding. In addition, $5 million was approved in order to permit Defence the option of restoring the Distribution Resource Planning (DRP) component. The Implementation Phase of DRP was de-scoped and the project budget remained at $304.1 million.

The CFSSU project has been transferred from implementation to close-out in September 2004. Close-out funding is $3.6 million. In March 2006, the Defence Program Management Board approved the usage of close-out funds for the project; these funds are to be used until fully expended or the work is completed. This project is closed and all related activities ended in Spring 2010.

Industrial Benefits

This project includes the following overall Industrial and Regional Benefits (IRB):

Region	Benefits
Atlantic Canada	$51M
Québec	$48M
Ontario	$26M
Western Canada	$105M
Unallocated	$10M
Total	$240M

CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER PROJECT

Description

The purpose of the Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project is to acquire helicopters in support of national and international tactical aviation roles. The project supports the Land Forces, Aerospace Forces, Canadian Expeditionary Force Command (CEFCOM) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. It has replaced three aging helicopter fleets - the CH118 Iroquois, the CH135 Twin Huey and the CH136 Kiowa. The Bell 412CF/CH146 was procured as a single role multi-mission helicopter capable of supporting a majority of the tasks previously undertaken by the fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements to include: the tactical lift of troops; logistical lift; reconnaissance and surveillance; direction and control of fire; aero-medical support; casualty evacuation; command and liaison, and communications assistance. These mission capabilities are employed in support of Defence operational commitments, UN peacekeeping missions, and support to other Government Departments and Agencies, including aid of the civil power.

Project Phase

The project has delivered 100 Bell 412CF/CH146 Griffons, a flight simulator, composite maintenance trainer, facilities, mission kits (including Defence electronic warfare suites), as well as other equipment, documentation and services. It is scheduled for completion in April 2012.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments and Agencies	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	Bell Helicopter Textron, Mirabel, Québec, Canada
Major Subcontractor(s)	Pratt & Whitney, Montréal, Québec, Canada BAE Systems Canada Inc., Montréal, Québec, Canada CAE, Montréal, Québec, Canada

 

Major Milestones

Major Milestone	Date
Contract Award	September 1992
Critical Design Review	April 1993
First Helicopter Delivery	March 1995
Simulator Acceptance	June 1996
Last Helicopter Delivery	December 1997
Project Completion	April 2012

 

Project Outcomes

Deliver 100 Bell 412/CH146 Griffon helicopters and a reduction in the total number of aircraft fleets.  This outcome has been achieved under the Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectation, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The beneficiary of this capability is the Aerospace and Land Forces.

Progress Report and Explanations of Variances

This project received Government approval in April 1992 and Treasury Board approval in September 1992, with an original budget of $1.293B. Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in April 2012 for approximately $200M less than the initial TB budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver (RLWR) functionality.

Industrial Benefits

To date, Bell Helicopter has claimed $289.5M direct and $252.1M indirect Industrial and Regional Benefits (IRB), totaling $541.6M, representing 107% of the overall commitment of $506.7M.

CANADIAN SEARCH AND RESCUE HELICOPTER PROJECT

Description

Maintaining a national search and rescue capability is a key Defence mission. The purpose of the Canadian Search and Rescue Helicopter (CSH) project was to replace the CH-113 Labradors with a fleet of 15 new helicopters. The new helicopters have addressed the operational deficiencies of the CH-113 Labrador fleet and eliminated the supportability difficulties of the older airframes. Given expected aircraft availability rates and a sufficient fleet size, continuous operations are anticipated well into the 21st century.

Project Phase

Completed as of July 2003, all 15 Cormorant helicopters have been delivered. Spare parts and infrastructure are in place to support operations. Initial training is complete. Effective Project Closure was achieved in September 2004 at which point the Project Management Office was closed; however, some aspects of the contract were noted as deficiencies. Final contract completion is projected to occur in 2015.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments and Agencies	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	Agusta Westland International Limited (formerly European Helicopters Industries Ltd. (EHI)), Farnborough, UK
Major Subcontractor(s)	Westland Helicopters, Yeovil, UK Agusta Spa, Cascina Costa, Italy General Electric Canada Inc., Mississauga, Ontario, Canada

 

Major Milestones

Major Milestone	Date
Treasury Board Effective Project Approval	April 1998
Contract Award	April 1998
First Aircraft Delivery (at plant in Italy)	September 2001
Final Aircraft Delivery (at plant in Italy)	July 2003
Project Completion (Effective Project Completion)	September 2004
Expected Project Closure	2015

 

Project Outcomes

Deliver fifteen CSH aircraft and declared at full operational capability which contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The beneficiary of this capability is the Canadian population who find themselves necessarily in need of Search and Rescue services.

Progress Report and Explanations of Variances

The project has procured the required aircraft spares, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for the four CF search and rescue bases. The project has also established and funded the first two years of an in-service support contractor for follow-on support.

The Cormorant has been operational at the squadrons in Comox BC, Gander NL, Greenwood, NS and Trenton ON.CH149 operations at 424 Squadron in Trenton have been suspended temporarily due to the lack of aircraft availability and difficulty in maintaining adequate aircrew training.

It should be noted that although effective project closure was achieved in September 2004, some work is still ongoing and full completion is not expected before 2015. The milestones still outstanding are tied to a three year Technical Publication Revision Service which commenced in FY 2010-11, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least an additional year to address.

Industrial Benefits

The contractor committed to providing direct and indirect Industrial and Regional Benefits (IRB) valued at $629.8M, within eight years from the date the contract was awarded. It is estimated that these benefits created or sustained roughly 5,000 person-years of employment in Canada, and that all regions of Canada benefited from this project. The contractor has completed its obligations to Canada in regards to IRBs under the CSH contract. Small businesses in Canada have also benefited from the project by the placing of $67M in orders.

CANADIAN SURFACE COMBATANT PROJECT

Description

The Canadian Surface Combatant Project (CSC) will recapitalize Canada's surface combatant fleet. Due to the pressing need to replace the IROQUOIS Class destroyers, the CSC Project will begin with the acquisition of a replacement for Area Air Defence and Task Group Command and Control capabilities, forming the basis for the subsequent acquisition of general-purpose warships. The CSC Project will pursue system commonality in design and acquisition in an effort to generate acquisition and through-life cost savings in a number of areas including crewing, training, and maintenance and logistics support. This will result in a number of aspects of the ships being common, regardless of variants produced.

Project Phase

Option Analysis.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments and Agencies	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor(s)	To be determined

 

Major Milestones

Major Milestone	Date
Identification Phase Approval	July 2007
Identification Phase Amendment No. 1 Approval	January 2009
Preliminary Project Approval	To be determined
Effective Project Approval	To be determined
Implementation Contract - Awarded	To be determined
Initial Operational Capability	To be determined
Full Operational Capability	To be determined
Project Completion	To be determined

 

Project Outcomes

Deliver a replacement capability currently found in Canada's destroyers and frigates.  These new ships ensure that the military can continue to monitor and defend Canadian waters and make significant contributions to international naval operations.  The CSC project contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet Government Defence Expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.

The beneficiary of this capability is the Maritime Forces.

Progress Report and Explanations of Variances

The Options Analysis is still underway and the development of project documents is progressing. The Government announced its broad intention for fleet recapitalization and shipbuilding when it announced the Canada First Defence Strategy in May 2008 and the National Shipbuilding Procurement Strategy (NSPS) in June 2010. There has yet to be a specific Canadian Surface Combatant project announcement, but this can be expected in due course.

Industrial Benefits

This procurement will provide Industrial and Regional Benefits (IRB) for the capital acquisition and its associated In-Service Support. These IRB requirements will be negotiated and accepted by Industry Canada prior to contract award.

CLOSE COMBAT VEHICLE

Description

The Close Combat Vehicle (CCV) project will deliver to the Land Forces an extremely well protected armoured vehicle with very high tactical mobility, able to deliver a combat ready Canadian Army infantry section in close combat, while operating in intimate support of Canadian Forces tanks.

Project Phase

Definition:  The CCV Project entered its definition phase with the approval of Treasury Board in June 2009.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor(s)	To be determined

 

Major Milestones

Major Milestone	Date
Treasury Board Effective Project Approval	Spring/Summer 2012
Contract Award	Summer 2012
First Vehicle Delivery	2013
Expected Project Closure	2019

 

Project Outcomes

Deliver 108 CCV, with an option for up to 30 additional vehicles, for a combat ready infantry section in close combat, while operating in intimate support of Canadian Forces tanks, and an associated long-term or through-life in-service support contract.  The project contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet Government Defence Expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

In FY 2010-11, the CCV project successfully completed its Solicitation of Interest and Qualification process, resulting in a list of Pre-Qualified Suppliers. FY 2010-11 saw some delays during the pre-qualification process, resulting in a need for three Solicitations of Interest and Qualification; however the release of the CCV Request for Proposal in March 2011 has the project moving forward.  The project is in its definition phase and is proceeding on budget.  Delivery of the first CCV is currently planned for 2013. 

Industrial Benefits

The CCV contracts will include a requirement for Industrial and Regional Benefits (IRB) equal to 100% of the contract values.  Direct industrial benefits targets have been established at 25% for acquisition and 40% for in-service support.

FORCE MOBILITY ENHANCEMENT

Description

The Force Mobility Enhancement (FME) project is a project to acquire Armoured Engineer Vehicles (AEV), Armoured Recovery Vehicles (ARVs), to support the acquired AEVs and Tactical Mobility Implements (TMI) in support of Canada's Leopard 2 Main Battle Tank (MBT). The project is part of the Family of Land Combat Vehicles (FLCV) project and has been broken down into two phases.

In Phase 1, FME will acquire AEVs and ARVs. Both platforms will support the Leopard 2 MBT until 2035.  In addition, they will support all current armoured vehicle fleets and future fleets, including those in the FLCV project.

In Phase 2, FME will acquire TMIs for the Leopard 2 MBT to include mine rollers, mine ploughs, and dozer blades. TMIs provide a key capability for the Leopard 2-based force as the current Leopard 2 MBT does not have an in service TMI capability. 

Project Phase

Definition: The FME project entered the Definition Phase with the approval of TB on June 18, 2009.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor(s)	To be determined

 

Major Milestones

Major Milestone	Date
Identification Phase Approval - Identification Phase	September 2008
Senior Project Advisory Committee Approval	November 2008
Preliminary Project Approval  - Definition Phase	June 2009
Request for Proposal - Phase 1 Released	October 2010
Request for Proposal - Phase 2 Released	June 2011
Revised Preliminary Project Approval (Phase 1)	October 2011
Contract Award - Phase 1	November 2011
Effective Project Approval (Phase 2)	February 2012
Contract Award - Phase 2	March 2012
Initial Operational Capability - Phase 2	December 2013
Initial Operational Capability - Phase 1	April 2014
Full Operational Capability	2015
Project Close-Out	2017

 

Project Outcomes

Deliver up to 18 Leopard 2 based Armoured Engineer Vehicles (AEV), up to 4 Leopard 2 based Armoured Recovery Vehicles (ARV) and Tactical Mobility Implements (TMI) to install onto the AEVs or ARVs, such as mine rollers, mine ploughs and dozer blades.  The FME project will provide crucial support to the Leopard 2 tanks, LAV III, and future fleets, such as the Close Combat Vehicle and the Tactical Armoured Patrol Vehicle.  Once delivered and declared at full operational capability will contribute towards achieving the Canada First Defence Strategy objectives as well as the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

On June 18, 2009, TB approved $11.3M in Definition funds, allowing the Definition Phase to begin.

Phase 1.  A Letter of Interest (LOI) for Phase 1 was released on 17 July 2009 and closed 28 August 2009. The release of a draft Request for Proposal (RFP) for the acquisition of AEVs (Phase 1) closed on 25 June 2010.  The final RFP for Phase 1 was on the MERX from 5 October 2010 to 18 March 2011.  Two extensions were granted (18 February 2011 and 18 March 2011) due to industries inability to meet Defence's timelines.  Both bidders were found non-compliant and debriefed on 17 May 2011.

Phase 2.  Agreements were reached with Defence Research Development Canada in Suffield (DRDC Suffield) for the upgrade of the existing Leopard 1 Mine Roller and Prairie Agriculture Machinery Institute (PAMI) for the upgrade of the existing Leopard 1 Mine Plough in February 2010 and November 2010 respectively.  An RFP was released on 6 January 2011 for the development of a Transmitter Malfunction Indicate solution for the Leopard 2 MBT and closed on 8 March 2011.  Due to the Intellectual Property requirements, only the Original Equipment Manufacturer replied to the RFP, therefore an Advanced Contract Award Notice (ACAN) is expected.

Due to the accelerated progress of Phase 2, Effective Project Approval (EPA) has advanced and is now scheduled for February 2012.

Industrial Benefits

In accordance with the Senior Project Advisor Committee approval November 2008, 100% of Industrial and Regional Benefits (IRB) will be sought on Phase 1 with the exception of the government-to-government purchase of the Leopard 2 MBT chassis.

HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION

Description

The Halifax Class Modernization/Frigate Life Extension (HCM/FELEX) project is the principal component of the overall HALIFAX Class Modernization (HCM) program. The project will plan and manage HALIFAX Class mid-life refits, acquire the major elements of the new combat system, and deliver stability enhancements, degaussing improvements and a Commander Task Group capability in four ships. Major equipment acquisitions through HCM/FELEX will include a modernized Command and Control System, Multi-Link, Identification Friend or Foe Mode S/5, upgrades to the radars, new Electronic Support Measures System, upgrades to the Internal Communications system, and an upgraded Harpoon Weapon System. These acquisitions will both sustain current capability and contribute to the new littoral operations role of the HALIFAX Class.

Project Phase

Implementation: Implementation of the HCM/FELEX project will occur through three principal contracts:  two Multi-Ship Contracts (MSC) for docking work periods/refits and one Combat System Integration contract to develop, procure and install the key combat system elements of the project. Project completion is expected by January 2019.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

In-Service Support Contractor (Class Design Agent)	Fleetway Incorporated, Halifax, Nova Scotia, Canada
Internal Communications System	DRS Flight Safety, Kanata, Ontario, Canada
Multi-Ship Contract (East)	Halifax Shipyard, Halifax, Nova Scotia, Canada
Multi-Ship Contract (West)	Victoria Shipyards, Victoria, British Columbia, Canada
Combat System Integration Contract	Lockheed Martin Canada, Montréal, Québec, Canada
Harpoon/Advanced Harpoon Weapons Control System (AHWCS)	The Boeing Company, St-Louis, Missouri, USA

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval	February 2005 (FELEX) February 2007 (HCM/FELEX)
Refit Procurement Strategy Approval by Treasury Board Secretariat	March 2007
Revised Preliminary Project Approval (Part 1)	June 2007
Multi-Ship Contracts (MSC) Awarded (Docking Work Periods & Refits)	March 2008 (West) March 2008 (East)
Effective Project Approval (EPA) (Part 2)	September 2008
Combat System Integration Contract Award	November 2008
Refits Begin	October 2010
Full Operational Capability	January 2018
Project Closure	January 2019

 

Project Outcomes

Deliver 12 modernized HALIFAX-Class ships capable to execute the roles and core missions of the Canada First Defence Strategy.  The twelve ships of the HALIFAX-Class were designed for 30 year life with the combat systems designed for 15 years and requiring mid-life upgrade to enable the ships to be effective through end-of-life.  Changes in technology since the HALIFAX-Class was originally designed in the 1980s, particularly networks, have fundamentally changed how warfare is conducted at sea.  Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcomes: Acquiring the resources to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal; and National Defence is ready to meet government defence expectations, specifically the program activity of Maritime Readiness.

The beneficiary of this capability is the Maritime Forces.

Progress Report and Explanations of Variances

In September 2008, Treasury Board granted Effective Project Approval (EPA) and Expenditure Authority for the project with full-up project value of $2,988M ($BY).

A Request for Proposal (RFP) for the Multi-Ship Contracts (docking work periods and refits) resulted in two successful bidders, Halifax Shipyard on the east coast and Washington Marine Group (Victoria Shipyards) on the west coast. Contracts were awarded to the two shipyards in March 2008. The Combat System Integration contract was awarded to Lockheed Martin Canada in November 2008.

The HCM/FELEX project is presently in its Implementation Phase and is currently within budget and on schedule to achieve Full Operational Capability by January 2018.

Industrial Benefits

Industrial and Regional Benefits (IRB) for this project are equivalent to 100% of the contracted value.

INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE

Description

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR) is an omnibus project that received TB approval for Definition Phase activity in April 2003. The purpose of this project is to develop, deliver and evolve an integrated, interoperable, ISTAR capability that will improve the ability of commanders to visualize the operational area, manage sensors and information collection resources, and to plan and implement actions to successfully complete operational missions. The project will provide enhancements to existing capabilities and include the acquisition of new capabilities in the areas of communications, command and control and sensors.

Project Phase

Implementation delays have been experienced in formally advancing the sub-projects to the implementation phase due to the impact of numerous Unforecasted Operational Requirements (UOR) for Afghanistan that are implemented by the LF ISTAR Project Management Office (PMO).  In support of UOR for OPERATION ATHENA in the 2003-04 timeframe, the project delivered equipment in the areas of Command and Control, Tactical Unmanned Aerial Vehicles (TUAV), Weapons Locating Sensors and Electronic Warfare capabilities. These early deliveries enhanced professional knowledge and contributed to project definition work.  Early delivery of elements of the Unmanned Aerial Vehicles, Electronic Warfare, and Data Link Communications sub-projects continued during 2006 with the UOR for OPERATION ARCHER. As well, urgently required systems, in particular the Acoustic Weapons Locating System, the Lightweight Counter Mortar Radar system, and additional Electronic Warfare systems were fielded in 2007. Responding to the need for persistent surveillance identified by the Canadian Forces (CF) Counter Improvised Explosive Devices (IED) Task Force and confirmed in the recommendation of The Independent Panel on Canada's Future Role in Afghanistan, the LF ISTAR PMO delivered additional Small Unmanned Aerial Vehicle capability through a service contract in 2008. In early 2008, the Electronic Warfare sub-project and the Command and Control sub-project were approved for implementation.  The three remaining sub-projects are seeking Effective Project Approval (EPA).

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales	US Army, USA
Light Weight Counter Mortar Radars (LCMR) - Foreign Military Sales	US Army, USA
Small UAV Service Contract	In Situ, Bingen, Washington, USA
Remote Viewing Terminal Unforecasted Operational Requirement (UOR)	L3 Communications, CSW, Salt Lake City, Utah, USA

 

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval	April 2003
Minister of National Defence Approval TUAV UOR Treasury Board Project Approval in Arrears UAV UOR Full Operational Capability Project Closed	May 2003 May 2005 December 2005 June 2009
Beyond Line of Sight Communication Effective Project Approval Initial Operational Capability Full Operational Capability Project Closed	November 2005 July 2006 February 2010 March 2010 May 2010
Communications & Data Link Component Treasury Board Effective Project Approval Initial Operational Capability Planned Full Operational Capability Planned close-out	December 2006 October 2009 January 2013 March 2013
Command and Control (C2) Treasury Board Effective Project Approval Initial Operational Capability Planned Full Operational Capability Planned close-out	February 2008 October 2009 January 2013 March 2013
EW Sensors Treasury Board Effective Project Approval Phase 1 Amendment 1 (AL 1) Initial Operational Capability Planned Full Operational Capability Planned close-out	November 2005 February 2008 March 2008 January 2013 March 2013
Planned In-Service Sensors Enhancement Treasury Board Effective Project Approval Planned Initial Operational Capability Planned Full Operational Capability Planned close-out	October 2011 August 2013 January 2015 March 2015
Planned Medium Range Radar Treasury Board Effective Project Approval Planned Initial Operational Capability Planned Full Operational Capability Planned close-out	October 2011 January 2014 December 2015 March 2016
WLS Acoustic Sensor Effective Project Approval Initial Operation Capability Full Operational Capability Project Closed	November 2005 March 2008 November 2009 May 2010
Family of UAV Treasury Board Effective Project Approval for UOR Family of UAV Treasury Board Effective Project Approval for AL 1 Planned Initial Operation Capability Planned Full Operational Capability Planned Project close-out	November 2005 October 2011 June 2013 June 2015 Oct 2015
Light Weight Counter Mortar Radar Effective Project Approval Initial Operation Capability Planned Full Operational Capability Planned close-out	March 2007 March 2008 December 2012 March 2013
Deliveries Complete all ISTAR sub-projects	December 2015
Project Completion	December 2016

 

Project Outcomes

To deliver an integrated intelligence process with the surveillance, target acquisition, and reconnaissance assets in order to improve Commanders' Situational Awareness at all level of commands.  Once all sub-projects are delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

Current estimates are that the project will be complete in 2016. This delay is associated with the maintenance of an off-the-shelf philosophy. Approvals have been received for all but three of the LF ISTAR sub-projects. Delivery of equipment actually started with UORs in Op ATHENA. Prosecuting the project with the requirement to deploy and support the capabilities directly to operations has delayed a number of the remaining capabilities. Final deliveries are scheduled out to 2015.

The Tactical Unmanned Aerial Vehicle (TUAV) project was closed in June 2009 and the Acoustic Weapon Locating System and Beyond Line Of Sight sub-projects closed in May 2010. 

Industrial Benefits

The benefit to Canadian industry from the ISTAR project continues to be determined during the approval of the procurement strategy for each sub-project. Canadian industry has derived long-term benefits from many aspects of the ISTAR project through the establishment of long-term in-service support contracts.

LIGHT ARMOURED VEHICLE III UPGRADE PROJECT

Description

The recent experiences of the Canadian Forces and other nations in Afghanistan, Iraq and global operational theatres demonstrate the ongoing requirement for a highly protected, yet highly mobile Light Armoured Vehicle. The threats of mines and Improvised Explosive Devices (IEDs) have proliferated and are likely to be faced in most medium to high threat missions. Despite improvements to the protection of the vehicle, the current LAV III fleet has insufficient protection to defeat modern threats. Further, it has insufficient mobility given the increased payload requirement of the vehicle. As well, the target acquisition and fire control systems require upgrading to overcome obsolescence issues and to improve technical effectiveness and lethality. The LAV III Upgrade Project will capitalize on existing and evolving technology to upgrade a significant portion of the LAV III fleet to a standard required to protect the soldiers and equipment of the CF in current and future operations.

Project Phase

Definition.  The objective of the Definition Phase is to design, produce, test and select appropriate upgrade packages to address the three main capability deficient areas of mobility, protection and lethality.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	General Dynamics Land Systems (GDLS), London, Ontario, Canada

 

Major Milestones

Major Milestone	Date
Treasury Board Approval (DND)	June 2009
Treasury Board Approval for Contract Approval (PWGSC)	April 2010
Implementation Start	Fall 2011
First Vehicle Delivery	2012
Last Vehicle Delivery	Late 2017
Project Completed	Spring 2019

 

Project Outcomes

To deliver 550 LAV III vehicles upgraded in the areas of mobility, protection and lethality capable to execute the roles and core missions of the Canada First Defence Strategy.  Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

The project received Preliminary Project Approval (PPA) in June 2009 and was announced by the Minister of National Defence (MND) in July 2009.  The PWGSC submission received TB approval in April 2010.  The Definition Contract start date was April 2010.  Definition work is progressing with upgrade packages designed and built and testing that took place in the fall 2010. Timelines have been adjusted to reflect a later than expected approval of the Definition Contract.  Implementation has been delayed until fall 2011 due to challenges in negotiating a draft implementation contract with GDLS-C.

Industrial Benefits

The majority of the work in the Definition Contract will be completed in London, Ontario.

JOINT SUPPORT SHIP

Description

The Joint Support Ship (JSS) Project will recapitalize Canada's naval support vessels, modernizing and apportioning joint force capabilities in line with the strategic vision outlined in the Canada First Defence Strategy. The JSS will provide Canada with a modem, task tailored and globally deployable naval support capability.  The JSS project will acquire two new support ships (with an option for a third vessel if it is affordable or if additional internal funding becomes available).  In addition to being able to provide at-sea support to deployed naval task groups, they will also be capable of providing limited sealift operations and limited support to forces deployed ashore.

Project Phase

Definition.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

Prime and Major Subcontractor(s)

The prime contractor for the JSS construction will be a designated Canadian shipyard, selected as part of the National Shipbuilding Procurement Strategy (NSPS). It is expected that the shipyard will be identified to PMO JSS by late summer 2011. Identification of major sub-contractors will be determined through the Canadian shipyard's teaming arrangement for JSS construction.

The prime contractor for the project's In-Service Support Contract (ISSC) will be competed separately from the selection of the NSPS designated shipbuilder. The JSS project intends to compete the ISSC after it has entered the project implementation phase.

Major Milestones

Major Milestone	Date
Options Analysis	Fall 2009
Revised Preliminary Project Approval	June 2010
Project Definition Phase Recommenced	July 2010
Contract Award Risk Reduction and Design Studies	Summer 2012
Project Definition Phase Complete	Summer 2013
Effective Project Approval	September 2013
Award of Implementation Contract	October 2013
Delivery of First Ship	Spring 2017
Initial Operating Capability - First Ship	Spring 2018
Delivery of Second Ship	Spring 2018
Final Operating Capability	Fall 2019

 

Project Outcomes

Deliver two Joint Support Ships (JSS) along with a 30 year In-Service Support Contract by the project completion date of 2019.  This project will sustain Maritime Forces capabilities and enhance Canada's ability to ensure peace and stability at Canadian, Continental, and International levels as laid out in the November 2010 Defence Priorities (for years 2011-2014) and the Canada First Defence Strategy.

Project beneficiaries:

• Canadian Shipbuilding Industry as determined by the National Shipbuilding Procurement Strategy (NSPS);
• Canadian and international communities, when humanitarian assistance is required to be rendered; and
• CF (specifically the sustainment of Maritime Forces) for both national and international operations.

Progress Report and Explanations of Variances

On 22 August 2008, the Minister of Public Works and Government Services Canada (PWGSC) announced the termination of procurement process to acquire three Joint Support Ships.  After receiving and evaluating the mandatory requirements for the JSS Project from the bidders, the Crown determined that the proposals were not compliant with the basic terms of the Request for Proposals (RFP).

During the August 2008-September 2009 timeframe the Project Office conducted Options Analysis that examined the cost versus capability of various options.  During late 2009 and early 2010 work continued on a revised procurement approach, centered principally on the concept of early identification and mitigation of program risk.

On 10 June 2010, the JSS project received Treasury Board expenditure authority for its Revised Definition Phase at a substantive cost estimate of $143M ($BY), including HST with an indicative project cost  of $2.613B ($BY), including HST. The revised procurement strategy is based on furnishing a ship design to the National Shipbuilding Procurement Strategy designated Canadian shipyard.  To maintain a competitive environment, JSS design options will include two Military off the Shelf (MOTS) and one New Design option developed in parallel.  The revised procurement approach seeks, in part, to undertake assessments of existing, proven designs, as a potential means of reducing project risks and ensuring program affordability.

Since achieving a revised Preliminary Project Approval, it has been determined that the project's definition activities will exceed the original baseline estimate of 25 months.  Completion of the JSS design assessments is now planned for summer 2012, pushing the Government of Canada Decision Point at the earliest to the fall 2012.  This slippage has occurred to include additional design work to estimate potential MOTS design changes, to clarify Intellectual Property (IP) requirements, to support the MOTS Request for Proposal legal review process and to account for the unique nature of a design-to-cost approach.  The net effect of New Design and MOTS risk reduction slippage is a shift right in the project's projected EPA date.

Project Definition schedule slippage to date is expected to be recoverable during Project Implementation, leaving the project's planned Full Operational Capability in fall 2019.

Industrial Benefits

Industrial and Regional Benefits (IRB) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.

LIGHT UTILITY VEHICLE WHEELED

Description

Light Utility Vehicles Wheeled (LUVW) are highly mobile and essential to facilitating the tactical command of combat, combat support and combat service support units, to assist in the gathering and dissemination of information and to liaise within and between field formations.

The LUVW project mandate is to replace Canadian Iltis vehicles with two separate vehicle acquisitions: Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and  Armour Protection Systems, for use by field force units; and Militarized Commercial Off-the-Shelf (Mil COTS) vehicles (GM Silverado) for use primarily by the Reserve Force.

Project Phase

Close-Out.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor (Phase 1) SMP	Mercedes-Benz Canada (MBC), Toronto, Ontario, Canada
Prime Contractor (Phase 2) Mil-COTS	General Motors Defense Military Trucks, Troy, Michigan, USA

 

Major Milestones

Major Milestone (Phase 1) SMP	Date
Award of Contract	October 2003
First Full Production Delivery	February 2004
Final Production Delivery	November 2006
Project Close-Out	November 2010
Major Milestone (Phase 2) Mil COTS	Date
Award of Contract	October 2002
First Full Production Delivery	October 2003
Final Production Delivery	December 2004
Project Close-Out	November 2010
Project Complete	April 2011

 

Project Outcomes

Deliver 1,159 Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and 170 Armour Protection Systems, for use by field force units; and 1,061 Militarized Commercial Off-the-Shelf (Mil COTS) vehicles (GM Silverado) for use primarily by the Reserve Force. The project contributed towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

Full Operational Capability (FOC) was reached in March 2010 and certified. The LUVW project received approval to close in October 2010. The Project Completion Report was accepted in April 2011. The project is now closed.

The project cost at completion is $296M ($budget year, net of GST).

Industrial Benefits

The Industrial and Regional Benefits (IRB) required for Phase 1 were valued at 100% of the contract value. The latest report from Industry Canada indicates that MBC has successfully fulfilled its IRB obligation under the terms and conditions of Phase 1. There are no mandated industrial benefits for the Phase 2 (Mil COTS) contract. However, all support will be generated by local commercial truck service stations providing industrial benefits to Canada.  For the Initial Support Contract (ISC), there are IRB requirements valued at 75% of the contract value and Industry Canada reports that MBC is up to date and progressing on its activities.  There is an IRB requirement in the current support contract in the amount of 100% of the contract value.

LIGHTWEIGHT TOWED HOWITZER

Description

The Lightweight Towed Howitzer (LWTH) project is a key facet of the land forces current indirect fire capability deficiency. Specifically, the project will field 25 M777 lightweight 155mm towed howitzers, each with a Digital Gun Management System (DGMS), and supported by improved ammunition and a modern truck. The 25 howitzers (six were delivered in a three month period ending July 2009 and the remaining were delivered in May 2011) will augment the 12 M777 howitzers currently in service. These howitzers provide a capability enhancement in terms of lethality, range, precision, mobility and digitization and support future missions and tasks likely to be assigned to the CF. 

Project Phase

Implementation Phase: The LWTH project entered the Implementation Phase with the approval of the Minister of National Defence in January 2010.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and the regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	BAE Systems, Barrow-in-Furrow, Cumbria, UK
Major Subcontractor(s)	SELEX Sensor and Airborne Systems Ltd, Edinburgh, UK

 

Major Milestones

Major Milestone	Date
Identification Phase Approval - Identification Phase	January 2008
Preliminary Project Approval (PPA)- Definition Phase	June 2008
M777 Foreign Military Sale (FMS) Agreement	November 2008
DGMS Contract Award	November 2009
Effective Project Approval (EPA)- Implementation Phase	January 2010
M777 Initial Support Contract Award	June 2010
Initial Operational Capability	October 2011
Final Operation Capability	December 2012
Project Close-Out	March 2013

 

Project Outcomes

Deliver the following capabilities:

• 25 M777 155mm lightweight howitzers each equipped with a Gun Management System and digital radio
• 37  wheeled gun tractors (based upon the MSVS SMP) that will pull the howitzer and be equipped with an ammunition handling and storage system
• Ammunition (including propellant, projectiles and fuses)
• Integrated logistics support
• Limited infrastructure enhancements

Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

The LWTH project is achieving defined project objectives. The M777 Support Contract was awarded in June 2010. Final deliveries of the M777 howitzer and the Gun Management System components commenced in late 2010 and were nearly complete by March 2011. The LWTH project is currently running on budget and on schedule.

Industrial Benefits

The Industrial and Regional Benefits (IRB) are an integral part of the Lightweight Towed Howitzer project. For the M777 lightweight 155mm towed howitzer, the original equipment manufacturer has committed to 100% of the FMS agreement value (less the value of the US government furnished equipment) through a combination of direct and indirect IRBs. For the digital gun management system, the original equipment manufacturer has committed to 100% of the contract value in direct and indirect IRBs.

In view of the low value of the M777 Initial Support contract and the high proportion of parts and labour, the initial support contract will not have IRBs.  However, as the support concept matures, IRBs will be considered.

MARITIME HELICOPTER PROJECT

Description

The purpose of the Maritime Helicopter Project (MHP) is to replace the CH124 Sea King with a fleet of 28 new fully equipped Maritime Helicopters bundled with a long-term in-service support contract and the modification of the HALIFAX class ships to accommodate the new Maritime Helicopters. This replacement will address the operational deficiencies of the current CH124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multi-purpose shipborne Maritime Helicopters for operations well into the 21st century.

Project Phase

Implementation: In November 2010, the project marked the six-year milestone in the Implementation Phase.  The project focus is now shifting from design and engineering to flight test and preparations for operational testing and evaluation, followed by delivery of the compliant Maritime Helicopters starting in 2012.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	Sikorsky International Operations Incorporated, Stratford, Connecticut, USA
Major Subcontractor(s)	General Dynamics Canada, Ottawa, Ontario L-3 MAS, Mirabel, Québec, Canada

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval	June 2003
Invitations for Bids Posted on MERX	December 2003
Effective Project Approval	November 2004
Contract Award	November 2004
First Delivery (Compliant Maritime Helicopters)	2012
Final Delivery	2013
Project Close-Out	2014

 

Project Outcomes

Deliver 28 fully equipped Maritime Helicopters to support operations and deployable with the Halifax Class Frigates capable to execute the roles and core missions of the Canada First Defence Strategy.  Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Maritime Forces.

Progress Report and Explanations of Variances

In December 2008, following discussions to minimize delays in the planned delivery of the integrated Maritime Helicopter, the Government and Sikorsky agreed to a new schedule for the delivery of six interim helicopters starting in November 2010, with delivery of fully-compliant helicopters commencing in June 2012. A second contract amendment in June 2010 modified the requirements for the interim Maritime Helicopter to allow delivery with an earlier version of mission system software while still enabling the start of initial training and operational testing.

Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on the 12 Halifax Class Frigates have progressed well and are on schedule. The first test flight of the Maritime Helicopter occurred in November 2008. The second Maritime Helicopter, the first aircraft with complete Mission System Hardware installed, underwent its first test flight in July 2009. Defence crews, as part of the Combined Test Force with Sikorsky, began aircraft testing in July 2009. The first Ship Helicopter Operation Limitations - Sea Trial and the second Sea Trial are now complete. The project is currently running within its authorized budget.

Industrial Benefits

The Industrial and Regional Benefits (IRB) are equivalent to 107% of the contract value for the capital acquisition and more than 80% of the contract value for the in-service support. Further, Sikorsky has agreed to an additional $80M in IRB in the June 2010 contract amendment for the in-service support contract.

MATERIEL ACQUISITION AND SUPPORT INFORMATION SYSTEM

Description

The mission of the Materiel Acquisition and Support Information System (MASIS) project is to provide the Department of National Defence (DND) with an integrated materiel acquisition and support information system that enables the cost-effective optimization of weapon/equipment system availability throughout the life cycle. The scope of MASIS includes all end-to-end information requirements within Defence related to the materiel acquisition and support functions, which are comprised of systems engineering, integrated logistics support (ILS), equipment configuration, technical data management, asset management, maintenance management, project management, performance management, operational support, business management, decision support analysis and contract management.

Project Phase

Implementation. To date, the project has completed Phases 1 to 4 and implementation of Phase 5 is currently underway where emphasis is on the delivery of the MASIS solution to the Army and Air Force. Project completion is expected for 2013.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments and Agencies	N/A

 

Prime and Major Subcontractor(s)

Prime Contractor	IBM Canada, Ottawa, Ontario, Canada
Major Subcontractor(s)	SAP Canada, Ottawa, Ontario, Canada Pennant, Ottawa, Ontario, Canada

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval - Expenditure Authority for Phase 1	June 1998
Contract Awarded for Prime Systems Integrator	December 1998
MASIS system - Go Live Phase 1 (202 Work Depot Montréal)	September 1999
Expenditure Authority for Phases 2 and 3: Implementation of Complex Contracts; Implementation of the MASIS solution to the Navy; Operations Support & Maintenance for MASIS; Planning and scoping for requirements scheduled to be implemented for the Army.	June 2000
Amended Expenditure Authority for Phase 4: Investigation of opportunities to progress the implementation of MASIS to the maximum extent possible within the future available Phase 5 funding; Management of Operations Support & Maintenance for MASIS (outside MASIS project Expenditure Authority); Project was deemed as a Major Crown Project with this approval.	December 2003
Amended Expenditure Authority for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army.	June 2007
Project Close-Out	December 2013

 

Project Outcomes

Deliver an end-to-end information system to enable materiel acquisition and support processes to the Navy, Army and Air Force. This system has improved visibility and efficiency of weapon system and equipment support.   MASIS has also enabled Defence's vision of business renewal.  Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Joint and Common Support Equipment Acquisition and Disposal. A revision in project scope has been approved to bring the management of supply system inventory into the same SAP-based ERP.

Progress Report and Explanations of Variances

In June 2007, the MASIS project received Treasury Board approval for Phase 5 in the amount of $170M. Phase 5 activities are on budget and planned completion of this project is within the 2013 timeframe.

Industrial and Regional Benefits

All Industrial and Regional Benefits (IRB) are attributed to Ontario since all project expenditures occur in Ontario.

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT

Description

The Medium Support Vehicle System (MSVS) Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. The MSVS project will deliver the following mix of vehicles:

• Medium-sized Standard Military Pattern (SMP) vehicles:
  • Up to 1,500 vehicles, with options for an additional 650;
  • Up to 150 integrated armour protection systems, with options for an additional 150, and
  • Up to 300 companion Load Handling System trailers, with options for an additional 240.
• Medium-sized Militarized Commercial Off-the-Shelf (MilCOTS) vehicles:
  • 1,300 commercial vehicles with militarized components.
• Special Equipment Vehicle (SEV) Kits:
  • 868 special equipment vehicle kits, with options for an additional 110.

Project Phase

Definition for SMP and SEV Kitting, and Implementation for MilCOTS and SEV Baseline Shelters.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor - MiLCOTS	Navistar Defence LLC, Warrenville, Illinois, USA
Prime Contractor - SEV Baseline Shelters	DEW Engineering and Development ULC, Ottawa, Ontario, Canada

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval	June 2006
Mil COTS - Invitation for Bids Posted on MERX	November 2007
Mil COTS - Revised  Preliminary Project Approval	December 2008
Mil COTS - Contract Award	January 2009
Mil COTS - First Delivery	June 2009
Mil COTS - Delivery Complete	March 2011
SEV Baseline Shelter - Invitation for Bids Posted on MERX	May 2008
SEV Baseline Shelter -  Revised  Preliminary Project Approval	June 2009
SEV Baseline Shelter - Contract Award	July 2009
SEV Baseline Shelter - First Delivery	Fall 2011
SEV Baseline Shelter - Delivery Complete	Spring 2014
SEV Kits - Invitation for Bids Posted on MERX	Fall 2011
SEV Kits - Revised Preliminary Project Approval	Spring 2012
SEV Kits - Contract Award	Spring 2012
SEV Kits - First Delivery	Spring 2013
SEV Kits - Delivery Complete	Fall 2015
SMP - Invitation for Bids Posted on MERX	Fall 2011
SMP - Effective Project Approval	Early 2013
SMP - Contract Award	Early 2013
SMP - First Delivery	Spring 2014
SMP - Delivery Complete	Fall 2015
Project Close-Out	2016

 

Project Outcomes

Deliver a replacement fleet of medium-weight trucks capable to execute the roles and core missions of the Canada First Defence Strategy.  At the conclusion of the project, the Canadian Forces will have acquired two fleets of medium-weight vehicles (MilCOTS and SMP) as well as new SEVs.  Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

In June 2009, TB expenditure authority was obtained for SEV Baseline Shelters for $161.4M ($BY) plus GST and a Revised PPA was granted for an indicative full-up cost of $1.244B ($BY) plus GST for all components of the MSVS project.

• MilCOTS - An Agreement in Principle was reached in August 2008 with the single responsive bidder. Contract approval was received in December 2008. The contract was awarded in January 2009 and the last vehicle was accepted in March 2011.

• SEV Baseline Shelters - An Agreement in Principle was reached in April 2009 with the single responsive bidder. Revised PPA and contract approval was received in June 2009. The contract was awarded in July 2009.

• SMP - Portions of a draft Request for Proposal (RFP) were posted on the project website in October 2009 and again in November 2010 for industry comment. The final RFP is planned for release in fall 2011.

• SEV Kitting - A draft SEV Kitting RFP was posted on the project website in late December 2010 for industry comment. The complete draft RFP was released in June 2010 for industry comment. The final RFP is planned for release in fall 2011.

MEDIUM-TO-HEAVY LIFT HELICOPTER

Description

Over the last decade, the ability to move personnel and equipment by air has become a vital and growing capability requirement for the Canadian Forces (CF) in fulfilling a wide range of roles. CF operational experience, particularly in current operational theatres, has highlighted the urgent need for medium-to-heavy lift helicopters (MHLH) to support land forces in a threat environment by quickly, efficiently and safely moving large numbers of personnel and heavy equipment from forward deployed bases, thus reducing their vulnerability to attack. Both at home and overseas, MHLH will provide the Government with a wider range of military options for addressing threats and emergencies beyond the CF's current helicopter fleets.

The MHLH project will deliver 15 Chinook CH-47F helicopters to support land-based domestic and international operations and to support land staff training on the road to high readiness, as well as integrated logistic support and other related support elements.

Project Phase

Implementation.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	The Boeing Company, Philadelphia, Pennsylvania, USA
Prime Contractor	CAE, St-Laurent, Quebec, Canada

 

Major Milestones

Major Milestone	Date
Synopsis Sheet Preliminary Project Approval	June 2006
Advanced Contract Award Notice Posted on MERX	July 2006
Effective Project Approval and Contract Award	June 2009
First  Aircraft	June 2012
First fully mission ready aircraft	June 2013
Initial Operational Capability	June 2014
Full Operational Capability (FOC)*	June 2017
Project Close-Out	June 2018

 

*Resource allocations (pilots) have caused FOC to be extended by two years.

Project Outcomes

Deliver 15 Chinook CH-47F helicopters capable to execute the roles and core missions of the Canada First Defence Strategy.  Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Aerospace Forces.

Progress Report and Explanations of Variances

In June 2009, TB granted Effective Project Approval with a substantive cost of $2.312B. A contract was awarded to The Boeing Company in June 2009 at a value of $1.156B (USD). In March 2010, a contract amendment to the existing CAE contract for Operational Training was issued to include MHLH requirements. The MHLH project is currently on budget and in scope. The project is to be completed by June 2018.

Industrial Benefits

The procurement strategy for MHLH will provide Industrial and Regional Benefits (IRB) equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. Canadian companies will have access to Boeing's global value chain which will allow them to do long-term, high-value work on Boeing's international fleets of aircraft through global partnerships. This new business being generated in Canada means that Canadian firms will hold an enviable place in the global aerospace industry.

MILITARY AUTOMATED AIR TRAFFIC SYSTEM PROJECT

Description

Defence initiated a national air traffic system project to automate air traffic services. Defence established the Military Automated Air Traffic System (MAATS) Project to ensure that military air operations continue to function effectively. The project directly supports the Defence objective of conducting military air traffic control operations.

The MAATS project will provide the essential infrastructure, systems, and automated capabilities to efficiently interface Air Traffic Management Systems (ATMS) and accurately exchange data between applications. The project will deliver a stable, sustainable, and operational ATMS while providing as much integration as possible with NAV Canada's Canadian Automated Air Traffic System (CAATS). New equipment will be installed where system interfaces are not currently available. All existing Defence radar systems, meteorological and aids sensors are retained and interfaced to the MAATS. In 2006, CAATS was no longer in a position to support military operations and DND selected the option to progress the project with an in-house solution. Since 2006, the Aerospace and Telecommunications Engineering Support Squadron (ATESS) has been mandated to design, develop and implement the complete Defence ATMS solutions for MAATS.

Project Phase

Project Close Out.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments and Agencies	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	Raytheon Canada Limited, Richmond, British Columbia, Canada NavCanada, Ottawa, Ontario, Canada
Major Subcontractor(s)	Hewlett Packard Canada Ltd, Ottawa, Ontario, Canada CVDS, Montréal, Québec, Canada Frequentis Canada Ltd, Ottawa, Ontario, Canada

 

Major Milestones

Major Milestone	Date
Treasury Board Effective Project Approval	July 1993
Contract Award	January 1994
Preliminary Design Review	September 1997 May 2000
Critical Design Review	February 2001
Factory Acceptance Test (Closure)	January 2002
Initial Delivery (Montréal)	December 2003
Contract Complete (Last Payment)	December 2004
Approval received to disengage concurrent development with NAV CANADA project and pursue sustainable minimum military requirement	September 2006
Begin Software Development on Phoenix Systems	October 2006
Complete Phoenix NAMS II Development	October 2007
Initial Operational Capability - First Wing Operational with NAMS II Equipment	October 2007
Full Operational Capability (FOC) - All Wings with delivered Equipment	June 2009
Begin project Close-Out	July 2009
MAATS Project Close-Out Senior Review Board (SRB)	January 2010
Project Management Office (PMO) Close-Out	March 2010
Project Complete	September 2011

 

Project Outcomes

Radar and Environmental Data Display Systems (REDDS) were delivered to all seven Canadian Forces Wings by June 2009.  The systems provide radar processing data, navigational aids data, environmental data and flight data entry.  All systems are part of a closed network and are supported by Aerospace and Telecommunications Engineering Support Squadron (ATESS) in Trenton. The REDDS network also provides full connectivity to Nav Canada through their Aeronautical Fixed Telecommunication Network (AFTN).  Full Operational capability was declared June 2009 and contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Aerospace Forces.

Progress Report and Explanations of Variances

TB granted EPA with project costs of $179.2M.

In June 2006, the MAATS project objectives were declared unachievable with CAATS. Given a number of alternative options, the MAATS' PMO recommended to cease MAATS/CAATS development, and continue the project with the implementation of an "in-house" solution coined Phoenix. With the support of Defence, the Programme Management Board (PMB) concurred with the PMO's recommendation in March 2007. MAATS' PMO was directed to de-link the project from NAV Canada's Canadian Automated Air Traffic System (CAATS); concentrate on the re-vitalization and integration of Air Traffic Controller (ATC) information sources at each of the seven Wings (Comox, Cold Lake, Moose Jaw, Bagotville, Trenton, Greenwood, and Goose Bay); keep military Instrument Flight Rules (IFR) operations at the Wings vice at two Military Terminal Control Centres; and pursue the development and fielding of the Phoenix solution.

Since approvals were received in July 2007, the Phoenix solution is well on its way to upgrading the current Air Traffic Management System capability inclusive of the following sub-systems: the Radar Processor, the Navigational Aids and Meteorological Sub-System (NAMS), the Air Movement Statistics Package and the Flight Data System. Phoenix is based on the proven Radar Processing Display System II (RPDS II) which was certified for Operational Airworthiness. Phoenix is built on standard commercial Off-the-Shelf hardware and open source software, thus keeping technical risk low. Installation of Phoenix equipment at 8 Wing Trenton was completed and Provisional Operational Airworthiness Clearance was granted in October 2007, ahead of schedule. Actual close-out activities, including a project completion report to TBS was completed in June 2010.

All sites are now synchronized with same technology and interfaces and the Phoenix environment has been running since 2007 without any downtime or major failure. The Vancouver 2010 Olympics shifted ATESS personnel priorities, delaying the revision of the last delivery called Flight Data Entry Terminal.

Industrial and Regional Benefits

Industrial and Regional Benefits (IRB) to be applied across all regions of Canada. 

NEXT GENERATION FIGHTER CAPABILITY

Description

The objective of the Next Generation Fighter Capability (NGFC) project is to acquire 65 next generation fighters to replace the CF-188 fleet on its retirement so as to maintain a manned fighter capability necessary for the defence of Canada and North America, and for CF collective expeditionary operations.

Project Phase

Options Analysis.  A Project Management Office was stood up in October 2010 and work has been initiated to advance a Treasury Board submission seeking the required expenditure authorities for definition stage activities.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments and Agencies	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	Joint Strike Fighter Program Office (JPO), Washington, DC, USA
Major Subcontractor	Lockheed Martin Aeronautics Company, Fort Worth, Texas, USA

 

Major Milestones

Major Milestone	Date
Synopsis Sheet (Identification)	January 2010
Synopsis Sheet (Effective Project Approval)	To be determined
Treasury Board Expenditure Authority	To be determined
First Participant Procurement Request	January 2012
Delivery First Aircraft	December 2016
Initial Operational Capability	May 2020
Full Operational Capability	September 2025
Project Close-Out	December 2027

 

Project Outcomes

The Next Generation Fighter Capability (NGFC) project will deliver 65 F-35 aircraft capable to execute the roles and core missions of the Canada First Defence Strategy.  Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Aerospace Forces.

Progress Report and Explanations of Variances

In July 2010, the Government of Canada announced its decision to acquire 65 F-35 Lightning II fighter aircraft to replace the CF-188 fleet at an estimated acquisition cost of $9B. The process for acquisition is detailed in the Joint Strike Fighter (JSF) Production, Sustainment and Follow-On Development (PSFD) Memorandum of Understanding (MoU). A Project Management Office was stood up in October 2010 and work has been initiated to advance a Treasury Board submission seeking the required expenditure authorities for definition stage activities.

Industrial and Regional Benefits

By signing the PSFD MoU, the nine partner countries involved agreed to an industrial participation model for the JSF program. As a result, Canada's defence industry has a unique opportunity to be a part of the JSF global participation model for the JSF program. Canada's defence industry has the opportunity to be a part of the JSF global supply chain, which means Canadian companies would not only work in support of the 65 aircraft that Canada is buying, but for the more than 3,000 F-35s that will be built. To date, Canadian companies have received more than $350M in contracts for the development and production of the F-35 and early estimates show that opportunities available to Canada's aerospace industry could total $12B.

PROTECTED MILITARY SATELLITE COMMUNICATIONS

Description

The Department and the Canadian Forces are being provided with global communications that are secure, guaranteed and directly interoperable with our Allies by the Protected Military Satellite Communications (PMSC) project. The project will deliver a Canadian Advanced Extremely High Frequency (AEHF) Military Satellite Communications System for near-worldwide assured, secure, survivable, and jam-resistant communications to the CF for the command and control of deployed Canadian commanders and forces, as well as interoperability with our principal ally, the United States.

Project Phase

The PMSC project is being implemented in two phases with project completion expected for winter 2017.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments and Agencies	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	United States Department of Defense (DoD)
Major Subcontractor(s)	Raytheon, Waltham, Massachusetts, USA Rockwell Collins Inc., Cedar Rapids, Iowa, USA

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval	August 1999
Effective Project Approval	November 2003
Initial Terminal Delivery	Fall 2012
Initial Satellite Delivery	Winter 2012-13
PMSC System Full Operational Capability	Fall 2019
Project Complete	Winter 2019-20

 

Project Outcomes

Deliver a communications capability to support deployed users whether they are joint, naval, land, or air forces.  This communications capability supports both the command and control by the National Command Authority of deployed operations and the command and control of in-theatre operations. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Joint and Common Command and Control Equipment Acquisition and Disposal.

Progress Report and Explanations of Variances

The PMSC project is being implemented in two phases.

In the completed Phase 1, procurement of guaranteed access to the US Department of Defense (DoD) Advance Extremely High Frequency (AEHF) satellite constellation was approved by TB through granting Preliminary Project Approval in August 1999.  TB also granted approval for the Department of National Defence (DND) to enter into a Military Satellite Communications (MILSATCOM) Memorandum of Understanding (MOU) with the US DoD. This would ensure DND access to the US DoD Advance Extremely High Frequency (AEHF) satellite constellation. This MOU was signed in November 1999. In addition, approval was granted to define the terminal segment.

Phase 2 has been underway since November 2003, when TB granted Effective Project Approval (EPA) for the procurement and installation, where necessary, of the associated AEHF satellite terminals.

The total substantive cost for this project (both phases) is estimated at $592M ($BY) including GST/HST.  The project is on budget.

However, due to slippages in the US DoD overall satellite launch schedule and since the satellite constellation is the heart of the AEHF MILSATCOM and PMSC Systems, DND has had no option other than to accept the schedule setbacks and slip DND milestones, such as the PMSC System Full Operational Capability (FOC) by several years. The FOC has been further delayed by Naval Fleet Plan for refit.

Industrial Benefits

Under Phase 1, the US DoD has committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations will be permitted to bid on project work. In Phase 2, the Senior Procurement Advisory Committee (SPAC) endorsed that terminal acquisition and support will be procured through Foreign Military Sales (FMS) with installation done through Defence-managed contracts. Industrial and Regional Benefits (IRB) will be sought by Industry Canada at 100% of the contract value.

SUBMARINE CAPABILITY LIFE EXTENSION

Description

The Submarine Capability Life Extension (SCLE) project replaced the Oberon class submarine fleet with four existing British Upholder class (renamed Canadian Victoria class) submarines. The project will ensure that Canada preserves its submarine capability within the existing capital budget. The project supports Canada's ability to conduct surveillance and control of its territory, airspace and maritime areas of jurisdiction, as well as Canada's ability to participate in bilateral and multilateral operations.

Project Phase

Implementation: The project has delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews. Canadianization of three platforms and 13 of 17 associated projects have been completed. The last platform (HMCS CHICOUTIMI) will complete Canadianization during her Extended Docking Work Period (EDWP) which officially began in July 2010. The remaining associated projects will be completed by project closure in March 2013.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	The Government of the United Kingdom, (UK) of Great Britain and Northern Ireland, Ministry of Defence, UK
Major Subcontractor(s)	British Aerospace Engineering (BAE) Marine Systems (formerly Vickers Shipbuilding and Engineering Limited (VSEL)/Marconi Marine) Cumbria, UK

 

Major Milestones

Major Milestone	Date
Treasury Board Approval	June 1998
Main Contract Award	July 1998
Initial Support Contract Award	July 1998
Initial Operational Capability (IOC)	April 2006
Full Operational Capability (FOC)	Early 2012
Project Close-Out	March 2013

 

Project Outcomes

The SCLE Project has acquired a complete submarine capability to replace the previous OBERON class submarines; this replacement capability includes:

• four functional Victoria class submarines, acquired from the United Kingdom Ministry of Defence, with up-to-date "safe to dive" certificates;
• four crew trainers; including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer;
• a technical data package consisting of manuals, design data, trials reports and maintenance and configuration records;
• initial spares including on-board and depot spares, special tools and other support equipment; and
• initial conversion training of four Canadian submarine crews and the fleet support personnel necessary to maintain and operate the Victoria Class.

This project contributes to achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Maritime Forces.

Progress Report and Explanations of Variances

EPA was granted to the SCLE project in June 1998 at an estimated total cost of $812M ($BY) net of GST. The expenditure ceiling was increased by $84.8M by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. The SCLE project is within budget.

Canada has accepted all four Upholder submarines from the United Kingdom. The operational status of each of these vessels is summarized below:

• Her Majesty's Canadian Submarine (HMCS) Victoria is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Breton. She undocked in April 2011 and is scheduled to complete this activity in 2011.
• HMCS Windsor is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Scott. She is scheduled to undock winter 2012 and complete this activity in 2012.
• HMCS Corner Brook is operational and is participating in various exercises and patrols. She will remain operational until mid-2011.
• HMCS Chicoutimi was handed over to Canada in October 2004 and while en-route to Canada had an electrical incident at sea that resulted in a fire and was returned to Canada via sealift. Although some of the repairs have been completed, a decision was taken to delay the completion of the repair and Canadianization until her EDWP. HMCS Chicoutimi was signed over to the Canadian Submarine Management Group (In- Service Support Contractor) in June 2009. Her EDWP commenced in July 2010 and is scheduled to complete in 2012.

Based on progress to date and current information, all performance objectives of this contract will be met within the allocated budget.

Industrial Benefits

This project will provide an estimated $200M in direct and indirect Industrial and Regional Benefits (IRB). This includes Canadian modifications to the submarines and the relocation of the simulators and trainers to Canada. A further $100M in IRBs have taken the form of waivers to provide industrial offsets in the United Kingdom for Canadian companies bidding on Defence contracts.

TACTICAL ARMOURED PATROL VEHICLE

Description

The Tactical Armoured patrol Vehicle (TAPV) Project is one of the four projects of the Future Land Combat Vehicles System announced in July 2009.

The TAPV Project will deliver a wheeled combat vehicle to the Land Forces that will fulfill a wide variety of roles on the battlefield, including but not limited to reconnaissance and surveillance, security, command and control, cargo and armoured personnel carrier.  It will have a high degree of tactical mobility and a very high degree of crew survivability.

The project scope includes an estimated initial purchase of 500 TAPV and an optional purchase of up to 100 additional vehicles, plus associated long-term in-service support.

Project Phase

Definition: The TAPV Project entered the Definition Phase with the approval of Treasury Board (TB) in June 2009.  Expenditure and contracting authority for the Definition Phase were also delegated to Defence and Public Works and Government Services Canada (PWGSC) respectively for the TAPV and its associated in-service support.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	Not identified at this time
Major Subcontractor(s)	Not identified at this time

 

Major Milestones

Major Milestone	Date
Identification Phase approved	March 2008
Project Charter approved	May 2009
Preliminary Project Risk Assessment endorsed	June 2009
Definition Phase approved	June 2009
Statement of Operational Requirements approved	January 2010
Implementation Phase approved	May 2012 (Planned)
Contract awarded	June 2012 (Planned)
Initial Operational Capability Delivery certified	2014 (Planned)
Full Operational Capability Delivery certified	2016 (Planned)
Project Completion Report Approved	2017 (Planned)

 

Project Outcomes

The TAPV project expects to achieve the following outcomes:

• An initial purchase of 500 TAPV;
• An optional purchase for up to 100 additional vehicles;
• Procurement and delivery of essential Integrated Logistics Support (ILS) to sustain the fleet the first two (2) years;
• Acquisition of an operational stock and two (2) years of training stocks of ammunition; and
• Implementation of a long-term (25-year) through life In-service Support Contract to be funded through Army National Procurement funds.

This project contributes to achieving the Canada First Defence Strategy objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

In June 2009, TB granted Preliminary Project Approval.  Further, TB granted Expenditure Authority for Definition at a substantive cost of $37.5M ($BY). The TAPV Project is within budget.  

In November 2008, the Defence Senior Project Advisory Committee approved a procurement strategy for a phased approach within a competitive process.  Consequently, Public Works and Government Services Canada released the Letter of Interest/Price and Availability in July 2009 to obtain cost and schedule information to support the Effective Project Approval (EPA) submission.  A Statement of Interest and Qualification was released in March 2010 and closed in June 2010 with the seven pre-qualified bidders announced in July 2010.  A draft Request for Proposal (RFP) was issued in November 2010 and the final RFP was issued in March 2011 with a closing date of August 2011.  RFP evaluation and testing of contender vehicles is planned for autumn 2011 with EPA forecast for May 2012.

Industrial Benefits

This procurement will provide Industrial and Regional Benefits (IRB) for the capital acquisition of the TAPV and its associated in-service support.  Direct industrial and regional benefits requirements have been established at 25% for the Acquisition Contract and at 40% for the Support Contract.

TANK REPLACEMENT PROJECT

Description

The purpose of the Tank Replacement Project (TRP) is to replace Canada's aging Leopard 1 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The Tank Replacement Project is divided into two phases. Phase 1 consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT), two Armoured Recovery Vehicles (ARVs) and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBT from the Netherlands Government. Phase 2 consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 tanks and armoured recovery vehicles into service with the CF as well as the Integrated Logistics System (ILS) inherent to the variants.

Project Phase

Implementation:  The project received Preliminary Project Approval (PPA) (inclusive of EPA for Phase 1) from Treasury Board in March 2007 and Effective Project Approval (EPA) in June 2009 for Phase 2. The project is capped at $650 million.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Phase 1
Prime Contractor for ARV upgrades	Rheinmetall Land System (RLS), Germany
Prime Contractor for MBT upgrades	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for loaned tanks	German Government
Prime Contractor for tank purchase	Netherlands Government
Phase 2
Prime Contractor for 20 Leopard 2 A4M (operational) tanks	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 20 Leopard 2 A6M tanks for return to German Government	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 42 Leopard 2 A4 training tanks	Rheinmetall Canada Inc (RhC), Canada
Prime Contractor for 8 Leopard 2 ARVs	To be determined
Prime Contractors for ILS related contracts: Ammunition Simulators Special Tools & Test Equipment (STTE) Initial Provisioning of Spare Parts Sub-Calibre Training Devices (SCTD)	To be determined To be determined To be determined To be determined To be Determined

 

Major Milestones

Major Milestone	Date
Memorandum to Cabinet	March 2007
Treasury Board  Preliminary Project Approval (PPA)	March 2007
Phase 1 - Loan Agreement with German MoD	May 2007
Phase 1 - Contract to KMW for upgrades to Loaned tanks	May 2007
Phase 1 - Contract to RLS for upgrades to Loaned tanks	May 2007
Initial Operating Capability (IOC)	August 2007
Phase 1 - Acquisition of tanks from Dutch Government	December 2007
Phase 1 - PPA amendment approved by Treasury Board	June 2008
Memorandum to Cabinet Amendment	April 2009
Treasury Board Effective Project Approval (EPA) with conditions	June 2009
Phase 2 - Contract to KMW for 20 Leopard 2 A4M Operational tanks (repair, overhaul and upgrade)	June 2009
Phase 1 - Contract to KMW for replacement in kind tank return to German MoD - 20 x Leopard 2A6 (NLD) tanks	July 2009
Phase 2 - Contract for repair and overhaul of 42 x Leopard 2A4 CAN (Training) tanks	August 2010
Full Operational Capability (FOC) - (Phase II)	January 2014
Project Close-Out	January 2015

 

Project Outcomes

Deliver the following capacities:

• 20 Leopard 2 A6M - Operational Mobile Battle Tanks (MBTs) for expeditionary tasks.  L55 Gun with additional mine protection and slat armour systems;
• 20 Leopard 2 A4M - Operational MBTs for expeditionary tasks.  L44 Gun with mine protection, slat armour and all around add-on armour systems;
• 42 Leopard 2 A4 - Mobile Battle Tanks primarily used for training.  L44 Gun with basic protection;
• 8 Leopard 2 Armoured Recovery Vehicle (ARV).  Four ARVs will be geared for expeditionary tasks and four for domestic support; and
• Appropriate ammunition, parts and special maintenance tools and training.

This project contributes to achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

Treasury Board approved the PPA Amendment in June 2008 allowing the replacement in kind concept for the loaned tanks. Canada will retain the loaned German Leopard 2A6 M. In return, the purchased Dutch Leopard 2 A6 will be converted to a German standard and returned to German Ministry of Defence. 

Effective Project Approval was approved by Treasury Board in June 2009 supporting the Phase 2 procurement strategy including development of a work capacity in Canada.  Development of this capacity resulted in the change of the Final Operational Capability in January 2014.  In addition, cost continues to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities. 

Recently, TRP received authority to use $21.4M of contingency in order to support the Munition Supply Program (MSP) mandatory for the establishment of new ammunition capacity in Canada. 

The project continues to move forward aggressively while ensuring effective support to the equipment challenges in Afghanistan and the establishment of critical support contracts.

Industrial Benefits

No Industrial and Regional Benefits (IRB) were required for Phase 1.

For Phase 2, IRBs are a requirement. Bidders are required to submit acceptable IRB proposals with their bids. The successful contractors will be required to undertake IRB activities in Canada valued at 100% of the contract value. IRB proposals will be evaluated by representatives of Industry Canada and the Regional Development Agencies. Contractors will be required to submit annual IRB reports detailing their achievements, which Industry Canada will review and verify.

WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION

Description

The Wheeled Light Armoured Vehicle - Life Extension (WLAV-LE) has addressed deficiencies in command, combat support and combat service support capabilities to ensure that the current fleets of wheeled armoured vehicles are capable of operating in the current and anticipated threat environment. The WLAV-LE improved the mobility, protection and capability of the in-service Bison fleets (primarily composed of Infantry Section Carriers (ISC)) through a life extension and conversion to command and support variants dedicated to the LAV III and LAV-Recce (Coyote) fleets.

Project Phase

Closeout - 100 % of the Bison fleet has been delivered to in-service.  The project is just finalizing the publications and finishing procurement of spares.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and Atlantic Canada Opportunities Agency

 

Prime and Major Subcontractor(s)

Prime Contractor (6 variants)	DEW Engineering and Development ULC (DEW), Ottawa, Ontario, Canada
Major Subcontractor (1 variant)	General Dynamics Land Systems - Canada (GDLS-C), London, Ontario, Canada

 

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval	September 1996
Treasury Board Effective Project Approval	November 1998
Initial Contract Award with DEW	January 2003
Treasury Board Revised Effective Project Approval	September 2006
New Contract Award with DEW	May 2007
Contract Award with GDLS-C	October 2007
Implementation - Initial Operational Capability	March 2009
Implementation - Full Operational Capability	November 2010
Project Completed	September 2011

Project Outcomes

Deliver the following capabilities:

• Conversion of the entire Bison fleet of 199 vehicles to 32 Ambulances, 16 Electronic Warfare, four Nuclear, Biological and Chemical Defence, 32 Maintenance and Recovery Vehicle, 32 Mobile Repair Team, 82 Command, Control, Communications and Intelligence vehicles;
• Provision of updated add-on armour packages for operations stock as a result of changes made to existing vehicles, to provide the crew and mission essential equipment with a basic level of protection; and
• Sufficient Integrated Logistics Support to maintain the fleet for the first two years of operations.

The WLAV-LE project contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

Progress Report and Explanations of Variances

Initially, TB approved the WLAV-LE with an estimated cost of $230.387 million ($BY).  In September 2006, TB granted a reduced expenditure authority to WLAV-LE due to the cancellation of the Armoured Vehicle General Purpose (AVGP) component of the project.  This change resulted from the decision taken by Defence in March 2005 to retire the AVGP fleet.  The total cost estimate is now $170.3 million ($BY).  Project Close-out has been delayed by issues with spares procurement and finalization of publications. The WLAV-LE is currently running under budget and is expected to be completed by September 2011.

Industrial Benefits

There is no Industrial and Regional Benefits (IRB) strategy associated with this project.

The WLAV-LE is excluded from the Agreement on Internal Trade under article 508 - Exceptional Circumstances. The exceptional circumstance is related to the economic hardship facing the local economy from the closure of CF Base Chatham in New Brunswick. A portion of the work is to be carried out in the Chatham area (now defined as the Miramichi Region). It is a provision of the contract with DEW Engineering and Development ULC that the work is to be done in the Chatham Area of the province of New Brunswick to the maximum extent possible and where cost effective to the Crown.

Public Works and Government Services Canada

Status Report on Major Crown/Transformational Projects

Long-Term Vision and Plan for the Parliamentary Precinct

Description

In 2007, PWGSC updated the Long Term Vision and Plan (LTVP) for the Parliamentary Precinct. This update was undertaken in conjunction with the Parliamentary Partners (the Senate, the House of Commons, and the Library of Parliament), and established a comprehensive approach for rehabilitating the heritage buildings, providing additional parliamentary accommodations, and creating a secure and welcoming environment for Parliamentarians, staff, visitors, and tourists. It confirmed the Vision and Guiding Principles for the Precinct and the extensive set of Planning and Design Principles created to guide future development. The Vision of the LTVP is to ensure that changes to Parliamentary Precinct occur in a way that balances the evolving functional needs of parliamentarians and other users with the overriding commitment to preserve the historic, environmental and symbolic primacy of the site. A major component of the LTVP Update was the creation of a new Implementation Framework designed to improve results and enhance accountability. This Framework establishes shorter term objectives in the context of the longer term vision and provides a strategy for getting projects underway and completed in an efficient and timely manner.

The Implementation Strategy for the LTVP is composed of a broad Strategic Direction and a series of rolling Five-Year Programs. The Strategic Direction establishes the renovation of the core historic parliamentary buildings — the triad of the West Block, Centre Block and East Block — as the first priority. Since Centre Block cannot be renovated while occupied, the East and West Blocks will be renovated first. This will be done not only to accommodate the interim uses from Centre Block, but also to address the pressing restoration work that is required on these two buildings. This work initiates a series of projects to create interim accommodation for those functions displaced from the East and West Blocks and, in a cascading fashion, triggers further projects required to house those displaced from buildings renovated for interim Parliamentary uses.

The rolling Five-Year Programs establish short term cycles for the approval of specific projects to implement the Strategic Direction. These shorter cycles provide greater flexibility in responding to government and parliamentary priorities, building conditions and current market conditions, and allow for better accuracy in determining functional requirements and establishing project costs and scheduling. Each Five-Year Program is composed of three components:

The Major Capital Program, which includes primary projects necessary to advance the overall objective of restoring the key heritage buildings;

The Recapitalization Program, which includes a series of urgent building interventions (related mostly to exterior masonry repairs), required to ensure the ongoing viability of buildings and address health and safety issues. These projects will be part of the full restoration work that will ultimately be done on these buildings and by undertaking them early will ensure that future projects are less complicated and costly; and

The Planning Program, which includes the development of more refined plans and reliable cost estimates for projects in the next five-year program.

Project Phase

Accordingly, the current five-year program includes projects for each of the three components. The core focus of the Major Capital Program is the stabilization and renovation of the West Block. Other projects will provide appropriate interim space to sustain the operations of Parliament while the West Block is being renovated, and will create interim and permanent facilities that meet the operational needs of Parliament and allow future phases of the LTVP to proceed in a cost-efficient manner. A number of projects have been completed, including renovations at 1 Wellington and the La Promenade Buildings to provide Committee Rooms and Parliamentary office space and the relocation of fourteen House of Commons operational units from the Wellington Building. These completed renovations and relocations allowed for the emptying of the West Block and 180 Wellington Buildings and the start of their major rehabilitation. Bank of Montreal) is also underway.

The Recapitalization Program focuses on the physical state of the buildings in the Parliamentary Precinct, and includes a series of projects for East Block, Centre Block and Confederation Building. These projects will ensure that the key buildings are consistently restored, as required; addressing problems that cannot wait until the major renovation projects can begin. The primary focus of these projects will be the long term restoration of discrete components of the buildings to extend their life.

The Planning Program develops strategies to ensure that all LTVP projects and objectives are executed in a coordinated and timely manner. Planning studies are currently being developed for Centre Block, to ensure that the major rehabilitation of the building can proceed without delay. In addition to planning studies, the Planning Program includes a number of master planning initiatives, such as the West Sector Area Master Plan, the Underground Infrastructure Master Plan, Material Handling and Transportation Master Plan, the Parliament Hill Master Landscape Plan Update, and Blocks 1, 2 and 3 Sector Area Master Plan. Once completed, these documents will be used to coordinate the preparation of more detailed plans and will provide a road map for efficient, coordinated, integrated development through the foreseeable future while preserving the flexibility necessary to respond to changing conditions.

Funding for individual projects within this five-year program will follow the normal approval process for government expenditures and will be approved by Treasury Board on a project-by-project basis.

Leading and Participating Departments and Agencies

Lead Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Senate of Canada, House of Commons, Library of Parliament

Prime and Major Subcontractor(s)

See separate notes for each specific project.

Major Milestones

See separate notes for each specific project.

Project Outcomes

See separate notes for each specific project.

Progress Report and Explanations of Variances

See separate notes for each specific project.

Industrial Benefits

See separate notes for each specific project.

Parliamentary Precinct Project - Wellington Building

Description

The Wellington Building is located at 180 Wellington Street, across from Parliament Hill. It is a six-storey structure first built in 1925 and later enlarged in the 1950's by Metropolitan Life Insurance Company. The House of Commons has been the major tenant since the Crown expropriated the building in 1973. Renovations of the building are required to address health and safety issues, replace obsolete building systems and meet building code requirements. The building has been completely vacated during the renovations. The Wellington Building is part of the Long Term Vision and Plan and will be used for Parliamentary accommodations.

Project Phase

This project is currently in project implementation. The work will be completed in two phases to expedite project delivery. Phase 1, which is currently being implemented, includes interior demolition, asbestos abatement and seismic reinforcement work. Phase 2, which will begin in fiscal year 2011/2012, will include the restoration of the exterior envelope undertaken as advanced work, followed by base building construction and fit-up the interior space. The entire renovation is targeted to be completed in late 2015, and subject to final funding approval.

Leading and Participating Departments and Agencies

Lead Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Senate of Canada, House of Commons, Library of Parliament

Prime and Major Subcontractor(s)

Prime Contractor

Design consultant for the Wellington renovation project is NORR Architects and Engineers Ltd., 175 Bloor Street East, Toronto, Ontario, M4W 3R8

Major Subcontractor(s)

Adjeleian Allen Rubeli (Structural) 75 Albert Street Suite 1005 Ottawa ON K1P 5E7 Fournier Gersovitz Moss and Associates (Heritage) 1435 rue St. Alexandre #1000 Montreal QC H3A 2G4 Phase 1 Construction: PCL Construction Ltd., 49 Auriga Drive, Nepean, Ontario, K2E 8A1 Amor Construction (Abatement Contractor), 134 Saint Paul Street, Vanier, Ontario, K1L 6A3 OSC Contractors (Demolition contractor), 42 Stafford Drive, Brampton, Ontario, L6W 1L4

Major Milestones

Major Milestone	RPP 2010-2011	DPR 2010-2011
Preliminary Functional Program Completed	July 2007	Completed - July 2007
Revised Preliminary Project Approval and Phase 1 Effective Project Approval	March 2008	Completed - March 2008
Consultant Contract Award	August 2008	Completed - August 2008
Final Functional Program	October 2009	Completed - January 2009
Final Schematic Design Report	October 2009	Completed - Sept 2009
Phase 1 Construction Start	April 2010	Completed - May 2010
Phase 2 Effective Project Approval	2012	Completed - March 2011
Phase 1 Construction Completion	2012	2012
Phase 2 Construction Start	2012	October 2011
Phase 2 Construction Completion	2015	2015

Project Outcomes

	Project objectives (expected results)	Performance indicators	Project outcomes (performance summary)
Long Term Vision and Plan for the Parliamentary Precinct	Parliamentarians have safe, modern facilities that support their work and Parliament Hill is restored as the cultural centre of Canada's federal government, to the benefit of all Canadians	Under the LTVP First Five-year Program, 2007-2012, 90% of projects are to be delivered on-time, on-budget and on-scope	Status:  Of the projects completed in 2010/2011, all were on-time, on-budget and on-scope

Progress Report and Explanations of Variances

A suite of projects to completely empty the Wellington Building are now complete. Fourteen House of Commons operational units were transferred to alternative locations in Crown-owned and leased facilities. Some relocations are temporary, pending completion of the renovation, while others are permanent. Alternative locations include 131 Queen, 155 Queen, 2086 Walkley Road, Confederation Building and 2455 Don Reid Drive in Ottawa and 45 Sacré Coeur in Gatineau.

The design of the renovation for 180 Wellington has been approved by the Senate and the House of Commons, and final contract documents are being developed. Selective interior demolition and asbestos abatement are 50% complete.

The current total project cost is $425.2 million (current dollars, excluding GST/HST). Separate project approval has been received for alternate space at 181 Queen Street and 131 Queen Street.

Industrial Benefits

Several multi-million dollar contracts will be awarded over the seven-year period for building construction, information technology systems, multimedia systems, furniture and other equipment. An estimated 1,500 private sector jobs will be generated by this project.

Parliamentary Precinct Project - West Block

Description

The West Block, located within the Parliamentary Precinct, is the oldest of the parliamentary buildings located on the "Hill". It is a three-storey building that was built in three phases starting in 1859 and completed in 1906. The West Block provides accommodation for Members of Parliament (MPs) and for parliamentary functions and support services.

Project Phase

This project is currently in project implementation. Renovations of the building are required to address health and safety and asset integrity conditions. In order to implement the renovations, the building has been completely vacated, thus requiring the provision of alternate accommodations for the MPs, parliamentary functions such as committee rooms and support services. Consequently, the program of work is being undertaken in two phases.

Phase 1

1. Emergency stabilization and rehabilitation of towers – complete;

2. Repairs and conservation of the exterior masonry – construction start in 2011;

3. Fit-up of alternate accommodations in the La Promenade building and other locations for MPs, committee rooms and support services – complete; and

4. The permanent relocation of the food production facility for Parliament Hill to a remote site – complete.

Phase 2

1. Fit-up of space for the relocation of Confederation Room 200 to the former Bank of Montreal building – construction start 2011;

2. Asbestos abatement, interior demolition, of the West Block building – underway;

3. General rehabilitation of the West Block building – construction start 2011; and

4. Associated infrastructure to support legislative functions during the renovation of the Centre Block, including a courtyard infill to accommodate Chamber activities, and provision of a security screening and material handling facility – construction start 2011*.

*Requires additional funding for completion

Leading and Participating Departments and Agencies

Lead Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Senate of Canada, House of Commons, Library of Parliament

Prime and Major Subcontractor(s)

Prime Contractor	Design consultant for the West Block renovation and fit-up project is ARCOP/FGM, architects in joint venture, 1244 Ste-Catherine Ouest, 3rd floor, Montreal PQ, H3G 1P1
Prime Contractor	Contractor for demolition and abatement at West Block is Ellis Don, 303-150 Isabella St Ottawa, ON K1S 5P7
Prime Contractor	General contractor for the West Block North Towers stabilization and rehabilitation project is L'Unique General Insurance inc., 425, blvd. de Maisonneuve Ouest, suite 750, Montréal (Québec) H3A 3G5 with Verrault, 1080 cote du Beaver Hall, Suite 800, Montreal, Quebec, H2Z 1S8
Prime Contractor	Design consultant for the Bank of Montreal rehabilitation project is NORR Architects and Engineers Ltd., 175 Bloor Street East, Toronto, Ontario, M4W 3R8
Prime Contractor	Design consultant for the La Promenade fit-up project was KWC Architects Inc. 110 Argyle Avenue, Ottawa, Ontario K2P 1B4; project complete.
Prime Contractor	General contractor for the La Promenade fit-up project was Pomerleau Inc., 220-343 Preston St. Ottawa, Ontario,K1S 1N4; project complete.
Prime Contractor	General contractor for construction of the Food Production Facility for Parliament Hill was PCL Construction Ltd, 49 Auriga Drive, Nepean, Ontario, K2E 8A1; project complete.
Prime Contractor	General contractor for the renovation of 1 Wellington was PCL Construction Ltd, 49 Auriga Drive, Nepean, Ontario, K2E 8A1; project complete.

Major Milestones

Major Milestone	RPP 2010-2011	DPR 2010-2011
Revised Preliminary Project Approval	June 2005	Completed - June 2005
Partial Effective Project Approval (Phase 1)	June 2005	Completed - June 2005
$17.2 million Spending Authority Approved for the development of preliminary design to EPA for West Block, Bank of Montreal, Wellington Committee rooms and project management support services for the program	December 2006	Approved - December 2006
Effective Project Approval (Phase 1)	February 2007	Approved - February 2007
MPs, parliamentary functions and support services vacate West Block	2010	Completed – December 2010
Effective Project Approval	2010	Completed - 2010
Major Construction Start	2010	Completed – February 2011
Major Construction Completion	2020	2018*
La Promenade swing space completion	2010	Completed – December 2010
Bank of Montreal	2014	2014
Food Production Facility	2010	Completed – Fall 2009

*Requires additional funding for completion

Project Outcomes

	Project objectives (expected results)	Performance indicators	Project outcomes (performance summary)
Long Term Vision and Plan for the Parliamentary Precinct	Parliamentarians have safe, modern facilities that support their work and Parliament Hill is restored as the cultural centre of Canada's federal government, to the benefit of all Canadians	Under the LTVP First Five-year Program, 2007-2012, 90% of projects are to be delivered on-time, on-budget and on-scope	Status:  Of the projects completed in 2009-2010, all were on-time, on-budget and on-scope

Progress Report and Explanations of Variances

The West Block Program of work consists of sub-projects involving emergency stabilization of towers and masonry, several interim space projects, major rehabilitation of the building and construction of a courtyard infill.

Stabilization

The work coming to completion is required in order to ensure the most at risk areas of the building envelope are stabilized. The masonry pilot project on the South East Tower of the West Block was completed in 2009. Construction work on the North Towers of the West Block is continuing with masonry and copper roof repairs and will be completed at the end of Summer 2011. The Masonry Wall Investigation and Research Project - conducted with the Intelligent Sensing for Innovative Structures (ISIS) Canada and three Canadian universities – is also complete. The objective was to gain and share leading edge knowledge on seismic reinforcing methodologies for heritage masonry walls. PWGSC constructed masonry wall sections, similar to those used in our Parliament buildings, in the University of Calgary seismic laboratories, in order to simulate seismic events and assess the reaction of various reinforcement methodologies.

Relocation Projects

La Promenade swing space - scope of the project consists of restoring the building and fitting up 62 MP suites and 3 committee rooms for Parliamentarians. This project was completed, under budget, in December 2010.

1 Wellington (the former Canadian Museum of Contemporary Photography) - completed on-time and on-budget in 2010/2011. The facility at 1 Wellington currently provides four committee rooms to the House of Commons. The building was handed over to the House of Commons prior to the start of the Fall Parliamentary session.

144 Wellington (former Bank of Montreal Building) – has been identified as the permanent alternate location for West Block's Confederation Room 200 functions. The concept design has been approved, and the contracts for the start of the rehabilitation work are nearing tender stage. Construction will start in early 2012 and completion is scheduled for 2014.

Food Production Facility - was permanently relocated off-site. Completed ahead of schedule and under budget in Fall 2009.

Rehabilitation Project

In January of 2011, Parliamentarians and their staff were relocated to the newly renovated La Promenade building, leaving the West Block empty so that work could begin. The West Block site has been prepared for construction activity, which has begun with demolition and asbestos abatement. The rehabilitation of the building is expected to be completed in 2018.

Current Treasury Board Preliminary Project Approval is $1,171.3 million (current dollars excluding GST/HST).

Industrial Benefits

Several multi-million dollar contracts will be awarded over a ten-year period for building construction, information technology systems, multimedia systems, furniture and other equipment. An estimated 3,500 private sector jobs will be generated by this program of work.

Government of Canada Pension Modernization Project (GCPMP)

Description

The GCPMP is a major component of PWGSC's Transformation of Pension Administration agenda. The purpose of this project is to renew PWGSC's pension administration systems and services, and transform its business processes to industry standard. This will allow PWGSC to ensure the sustainability of the pension administration function. It will also allow PWGSC to cope with the increasing business volume. Demographic trends indicate that by 2016, approximately 40% of the current public service will have become eligible for retirement. As a result, increasingly large numbers of employees are seeking retirement counselling and want access to capabilities that allow them to analyze their pension benefit options. Similarly, demands for enrolment services are increasing as new employees are hired to replace retirees.

PWGSC's approximately 40-year-old systems and business-process infrastructure for pension administration were in grave need of renewal. The limited capabilities of existing processes and the archaic technology of the legacy systems are severely compromising PWGSC's ability to sustain current service levels. As well, they are severely limiting PWGSC's ability to offer future services that are comparable to the delivery performance and cost-effectiveness industry standards. Although the project is focused on the Public Service Superannuation Act administration, the project is implementing a multi-plan solution that will provide for other pension plans within the public service.

Since July 2007 the project has been completing its Implementation Phase, which is expected to take five years. The project is replacing the current pension systems and business processes with commercial-off-the-shelf software applications and industry-standard business processes. Implementation is proceeding according to the following phased approach, which introduces new systems and functionality over five releases aligned with the centralization of pension services delivery from departments to PWGSC:

New system / functionality and centralized service	Target completion date
Release 1.0 - Implementation of Siebel Case Management software and a new Interactive Voice Response System / Centralization of Service Purchase services	Completed in February 2009
Release 1.5 - Implementation of enhanced case management applications, including document imaging capabilities / Centralization of Plan Enrolment and Orientation services	Completed in January 2010
Release 2.0 - Implementation of software functionality related to the administration of Contributor accounts and Pension Benefits Division Act/ Centralization of services related to Pension Benefit and Survivor Pension Entitlements and Employer Support	April 2011
Release 2.5 - Implementation of software functionality related to the administration of Service Buyback and Leave Without Pay / Centralization of Leave Without Pay services	November 2011
Release 3.0 - Implementation of software functionality related to the administration of Annuitant accounts and accounting	September 2012

Project Phase

The two Transformation of Pension Administration projects, the GCPMP and the Centralization of Pension Services Delivery Project (CoPSDP) are currently in their Implementation Phases and are within 18 months of completion. Implementation activities began in July 2007 and are expected to be completed in September 2012.

Leading and Participating Departments and Agencies

Lead Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Public Works and Government Services Canada

Prime and Major Subcontractor(s)

Prime Contractor	HP Enterprise Services (formerly EDS Canada Inc.) 99 Bank St., 6th Floor, Ottawa, Ontario K1P 6B9
Major Subcontractor(s)	James Evans & Associates (JEA) 4th floor, 844 Courtney St. Victoria, British Columbia V8W 1C4 Vangent Canada Limited (formerly Pearson Canada Solutions) 169 Colonnade Road, Nepean, Ontario K2E 7J4 Oracle Canada Inc. 50 O'Connor St., Suite 1301, Ottawa, Ontario K1P 6L2

Major Milestones

Major Milestone	Date
Project Definition Phase (from Preliminary Project Approval to Effective Project Approval):
Preliminary Project Approval for completion of Project Definition	May 2004
Release of draft Request For Proposal	May 2004
Consultations with vendors	July 2004
Release of final Request For Proposal	October 2004 (Release of Request For Proposal was delayed to allow the project to address feedback from consultations)
Close of bidding period	January 2005 (Bidding period was extended at the request of the bidders)
Evaluation of bids	May 2005 (Completion date was deferred to accommodate the extended bidding period and the larger than expected number of bids)
Preparation of the Treasury Board submission for contract authority / Contract award	November 2005 – Contract signed with EDS (now HP) November 2005 – Vendor began work (contract award was deferred to accommodate the extended bidding and evaluation periods. Treasury Board approved the contract award to EDS Canada Inc. in October 2005)
Requirements Mapping and Gap Analysis These activities were rescheduled from original planned date of January 2006 to April 2006 following contract award.	April 2006
Architecture and Design	September 2006
Effective Project Approval	June 2007 (Completion of the Treasury Board Submission was delayed to accommodate Treasury Board’s request to prepare a single submission for both the GCPMP and the CoPSDP)
Implementation Phase (Effective Project Approval to Close-Out):
Phase 5 – Effective Project Approval Start-Up Activities	March 2008 (Final Crown approval and sign-off of vendor deliverables was completed March 2008)
Phase 6 – Design, Construction and Implementation: Release 1.0 – Client Services Basic Case Management and Interactive Voice Response (IVR Release 1.5 – Enhanced Case Management and Imaging Release 2.0 – Replacement of current system and business processes for the administration of active accounts (Contributors) Release 2.5 – Improved business processes and system functionality for the administration of Service Acquisition, Leave Without Pay (LWOP) and Pension Benefits Division Act (PBDA) Software Upgrade Release 3.0 – Replacement of current system and business processes for the administration of retired member accounts (Annuitants) and improvement of Accounting and reporting functionality	Basic Case Management completed December 2008 Interactive Voice Response completed February 2009 Enhanced Case Management completed December 2009 Imaging completed January 2010
Phase 7 – Final Maintenance Transition
Phase 8 – Close-out Phase

Project Outcomes

The Pension Modernization project is renewing the public service pension administration systems and business processes in order to achieve the following objectives:

1. Sustainability – Ensure the ongoing sustainability of the Government of Canada’s pension administration services and systems through the replacement of outdated legacy systems and the provision of automation and web capabilities needed to enable the centralization of pension services delivery.

2. Accountability – Strengthen accountability, governance, and stewardship of pension administration and resources to achieve and maintain greater operational efficiency.

3. Measurable Results – Ensure the provision of accurate, consistent and timely processing of all transactions and payments.

4. Streamlined Business Processes – Re-engineer and streamline business processes to improve effectiveness and provide a seamless information flow.

5. Client Focus – Provide clients with value-added, best-practice services and reporting that offer flexible access and up-to-date information by leveraging the new system’s capabilities to adopt modern service delivery methods and provide industry standard pension administration services to all pension plan members, pensioners and employers.

Progress Report and Explanations of Variances

Effective Project Approval was obtained in June 2007. After almost four years of implementation activities, the project is within budget and implementation is expected to be completed in fiscal year 2012-2013, within eight months of its planned completion.

• Release 1.0 - Client Services: In February 2009, the project completed its first technology release, as well as the centralization of service purchase. The new Siebel Case Management applications, the Genesys software for the Interactive Voice Response system, and the centralized service are now in full operation in the Government's Public Service Pension Centre, located in Shediac, New Brunswick.

• Release 1.5 - In January 2010, the project completed its second technology release, as well as the centralization of plan enrolment and orientation services. Pension administration made an important step towards paperless case processing with the implementation of Document Imaging capabilities in the Cheque Redemption and Control Directorate in Matane, Quebec. Scanned images of mail, fax and email case documents and forms are now immediately available to the Pension Centre staff in Shediac. In addition, this release enhanced Case Management functionality in the Pension Centre and expanded the use of the new tools to approximately 600 users.

• Release 2.0 - Systems and processes to administer active member accounts (including the calculation of estimates) and Pension Benefits Division: Activities for this release began in January 2008, as planned. Design, development and Vendor testing activities for this release have been completed. Client acceptance testing is approximately 85% completed. This release has incurred an overall delay of ~14 months as a result of the carry over of delays with previous releases, increased technical complexity and limited contractor resource capacity, as well as delays in receiving a stable solution from the vendor. Significant progress has been made and the project expects to implement the new solution in April 2011. This delay has resulted in an eight-month delay to the project’s completion date.

• Release 2.5 - Systems and processes related to Service Buyback and Leave Without Pay. The implementation of Release 2.5 functionality began in September 2009 and design activities were completed in January 2011. Development activities are approximately~ 70% completed. This release has incurred an overall nine month delay due to increased complexity, change requests and the impacts of the Release 2.0 delay. Completion is now expected in November 2011.

• Release 3.0 - Systems and processes to administer retired member accounts and to perform accounting functions: Implementation activities for this final release began in April 2010 and design activities are ~50% completed. Due to the impacts of the Release 2.0 delay, completion date for Release 3.0 is being planned for September 2012, resulting in an overall eight-month delay to the project.

• Final project closeout activities will be done in parallel to Release 3.0 and are being planned for September 2012.

Industrial Benefits

A multi-million dollar contract has been awarded for the commercial off-the-shelf software products, as well as for the implementation of the new systems and business processes, support services and ongoing maintenance. The products include Penfax for core pension administration and Siebel for the Customer Relationship Management functions. Implementation of the new solution, business processes and associated business transformation, is the responsibility of the System Integrator, HP Entreprise Services (formerly EDS Canada), to whom the contract was awarded. The implementation is being conducted in several phases over a period of approximately four and a half years (July 2007 to March 2012). During that time, it is expected that there will be some temporary positions required to support the system implementation and business transformation activities in both the National Capital Area and Shediac, New Brunswick. In the long term, the size and responsibilities of the Pension Centre in Shediac, New Brunswick will be more stable as a result of centralization and the modernization of the systems and services.

Transformation of Pay Administration (TPA) Initiative

Description

PWGSC’s Transformation of Pay Administration Initiative was launched in October 2009, after receiving Treasury Board Minister’s approval for the Pay Modernization and Consolidation of Pay Services Projects. These projects will replace the 40-year-old pay system and gradually consolidate pay administration services from departments to PWGSC’s new Centre of Expertise in Miramichi, New Brunswick. The transformation will ensure the long-term sustainability of the Government of Canada pay administration system and services as well as contribute to a more effective and efficient public service, offering better value to Canadians.

The goal of the Pay Modernization Project is to replace the 40-year-old Regional Pay System (RPS) with a modern, commercial, off-the-shelf pay system. Once implemented, the modernized system will establish a platform for more efficient compensation processes. This project will provide a new pay system that will benefit all departments. It will offer extensive Web capabilities for managers and employees of departments using the GC Human Resource Management System such as requesting and approving overtime payments directly through the Web.

The goal of the Consolidation of Pay Services Project is to gradually transfer pay administration services to a Centre of Expertise located in Miramichi, New Brunswick starting in 2011-2012 with those departments using the endorsed Government of Canada Human Resources Management System (PeopleSoft). The consolidation of pay services will contribute to providing more consistent service delivery and continued sustainability of pay services while addressing the high attrition and turnover rates in the compensation community.

Project Phase

The Pay Modernization Project began its Project Definition Phase in October 2009. The Project Definition Phase will take approximately two and a half years.

The Consolidation of Pay Services Project also began its Project Definition Phase in October 2009 which is planned for completion in April 2011. The Implementation Phase of the Project will take approximately five years.

Leading and Participating Departments and Agencies

Lead Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	This Initiative will be delivered by PWGSC ABC branch in partnership with ITSB. Although there are no participating departments in the Initiative delivery, there are primary stakeholders as follows: Treasury Board of Canada Secretariat (TBS): TBS, as the employer for the core public administration, according to the Financial Administration Act (FAA) Schedules I and IV, sets compensation policies and negotiates collective agreements with unions representing employees of those organizations. Separate Agencies: These organizations, named in Schedule V of the FAA, negotiate collective agreements, set compensation policy for their employees, and have primary responsibility to ensure that their employees receive accurate and timely pay and benefits. Crown Corporations and Other Federal Entities: As the employer, these organizations, named under Schedules II and III of the FAA, or are not listed under a specific FAA schedule, negotiate collective agreements and set compensation policy for their employees. Departments, Agencies and other Organizations: These organizations have primary responsibility to ensure that their employees receive accurate and timely pay and benefits.

Prime and Major Subcontractor(s)

Prime Contractor	There is no Prime Contractor as the procurement process has not been completed. The procurement activities for acquiring the Prime Contractor, originally planned for completion by January 2011, will be completed by the end of June 2011.
Major Subcontractor(s)	There is currently a contract with ADGA for Project Management Office (PMO) services for the duration of the project.

Major Milestones

This subsection lists the major milestones associated with the progress of the Pay Modernization and Consolidation of Pay Services Projects.

Pay Modernization Project

Major Milestone	Date
Project Definition Phase (from Preliminary Project Approval to Effective Project Approval):
Preliminary Project Approval	July 2009
Release of draft Request For Proposal	September 22, 2009
Consultations with vendors	January 31, 2010
Release of final Request For Proposal	June 9, 2010 (Postponed at the request of a Central Agency)
Close of bidding period	October 13, 2010 (Bidding period was extended at the request of the bidders)
Evaluation of bids	(Completion date was deferred to April 2011 to accommodate the extended bidding period and the complexity of the bid evaluation.)
Contract award	(Contract award has been deferred to June 2011 to accommodate the extended bidding and evaluation periods.)
Process Modeling and Fit-to-Standard Analysis
Effective Project Approval
Implementation Phase (Effective Project Approval to Close-Out):
Configuration
Testing
Pilot
Deployment
Project Close Out

Consolidation of Pay Services Project

Major Milestone	Date
Project Definition Phase (from Preliminary Project Approval to Effective Project Approval):
Preliminary Project Approval for completion of Project Definition	July 2009
Announcement of region for Centre of Expertise	August 2010 (The Prime Minister announced the Transformation of Pay Administration Initiative in August 2010, including Miramichi as the location of the PWGSC Centre of Expertise. The definition phase activities were rescheduled from the original planned date of June 2010 to the dates listed below)
Planning for building, IT connectivity, architecture and access
Negotiation and timing for transition of each department
Close of bidding period	(Deferred to June 2011)
Evaluation of bids	(Deferred to June 2011)
Implementation Phase (Effective Project Approval to Close-Out):
Wave 1 Departments Transition	(Deferred to June 2012)
Wave 2 Departments Transition	(Deferred to June 2013)
Wave 3 Departments Transition	(Deferred to June 2015)
Project Close Out	(Deferred to June 2015)

Project Outcomes

The expected project outcomes for the Transformation of Pay Administration Initiative have been divided into 3 types: Strategic, Final and Measured.

Outcome Type	Outcome	Project / Initiative
Strategic Outcome	GC is employer of choice	Transformation of Pay Administration Initiative
	Increased Contribution to PS Renewal/MAF	Transformation of Pay Administration Initiative
	Increased stakeholder confidence in Payroll Administration function	Transformation of Pay Administration Initiative
	Supports Recommendations of OGGO Report	Transformation of Pay Administration Initiative
	Greening Government Operations	Pay Modernization Project
Final Outcome	Increased Pay Administration Sustainability	Transformation of Pay Administration Initiative
	Increased GC Operational Savings	Transformation of Pay Administration Initiative
	Increased quality of reporting for departments	Consolidation of Pay Services Project
	Created simplified CA Organization	Consolidation of Pay Services Project
	Eliminated need for departments to keep CAs, space, A-Base, etc.	Consolidation of Pay Services Project
Measured Outcome	Increased employee satisfaction	Transformation of Pay Administration Initiative
	Decreased time to train pay administration staff	Transformation of Pay Administration Initiative
	Decreased cost to deliver pay administration	Pay Modernization Project
	Decreased materiel usage (e.g. paper, mail)	Pay Modernization Project
	Decreased work effort for CA's	Pay Modernization Project
	Increased pay administration staff retention	Consolidation of Pay Services Project
	Increased # of accounts per CA	Consolidation of Pay Services Project

Progress Report and Explanations of Variances

On July 30, 2009, the Treasury Board approved the “Initiative to Fix the Pay System” (Transformation of Pay Administration) which included the Pay Modernization Project with an estimated cost of $192,067,332 (including GST) and the Consolidation of Pay Services Project with an estimated cost of $106,132,817 (including GST).

Pay Modernization Project Definition Phase (in progress)

A Request for Proposal (RFP) to procure a firm to provide Project Management Services was issued, and a contract was awarded to ADGA Group in February 2010.

As a first step in procuring the services of both a Commercial-Off-the-Shelf (COTS) pay solution as well as a System Integrator, a Request for Information (RFI) was developed and posted to industry. The goal of the RFI was to gather information from industry to assist in the preparation of the System Integrator RFP. The information gathered through RFI consultative process was assessed and, where applicable, amendments were made to the draft RFP.

The RFP was published June 09, 2010. The RFP closed on October 13, 2010 after an additional extension of 7 weeks at the request of industry. The contract award for the System Integrator is planned for completion by the end of June 2011. The Treasury Board approved funding for the Pay Modernization Project definition phase in the amount of $36,587,929 million (with GST). The project is currently running under budget due to the extension in the RFP closing date which resulted in delays in dependent activities as well as the fact that the use of contingency funding was not required.

Analysis will be completed in 2011-12 to evaluate the proposed new pay solution against the Government of Canada pay requirements. The definition phase for the modernized pay system and processes, originally planned for completion in April 2012, is now expected to be completed by June 2012.

Consolidation of Pay Services Project Definition Phase (in progress)

PWGSC will gradually transfer pay administration services to a Centre of Expertise within PWGSC for departments using the Government of Canada Human Resources Management System (PeopleSoft) over a five year period starting in 2011-2012. By March 2012, the new Centre of Expertise will start its operations.

In preparation, work has been done to compile and analyze up-to-date workforce data on the Compensation community provided by the Heads of Human Resources from departments and agencies. Based on the workforce data provided, the project team has been working with client departments and agencies to develop a transition plan and adopt a government-wide approach to manage compensation staff during the transition. . Staffing processes have been initiated to fill positions in the Centre of Expertise. In addition to this, a far reaching and inclusive governance framework and a robust communications strategy have been developed. Furthermore, a joint union management consultation committee has been established in collaboration with departments, central agencies and the Public Service Alliance of Canada.

A Service Delivery Model and Concept of Operations have been developed for the Centre of Expertise. The project team has also developed Information Technology and network infrastructure plans and estimates. A Request for Information to identify office space for the initial opening of the Centre of Expertise in Miramichi, New Brunswick has been completed.

The Effective Project Approval submission is planned to be tabled in June 2011.

Industrial Benefits

A multi-million dollar contract will be awarded in 2011-12 for the COTS pay solution and a System Integrator. During the course of the project, it is expected that there will be some temporary positions required to support the solution implementation and business transformation activities.

The Consolidation of Pay Services Project will create 550 new public service jobs in Miramichi, New Brunswick, contributing to improve the local economy.

Royal Canadian Mounted Police

Status Report on Major Crown/Transformational Projects

Description

Real Time Identification (RTID) is a re-engineering of systems and processes used for fingerprint identification, civil clearances and criminal records management. It is transforming the current paper-based workflow to an electronic workflow, enabling the “real time” identification of fingerprints submitted electronically.

Fingerprints are submitted by police agencies to support the creation of a criminal record, or to search the criminal record repository during a criminal investigation or civil security screening. RTID is streamlining these services, facilitating information sharing internationally, and permitting an improved tracking of criminals by condensing identification turnaround times from weeks and months to hours and days. The development of RTID should result in the following end state response times:

• two hours for all criminal ten print searches (improved from six weeks)
• 24 hours for all latent (improved from six weeks)
• 72 hours for all civil services (improved from five months)

The project was initiated in 2004 and subsequently separated into two major phases. Phase 1 modernized the civil clearance process, implemented a new Automated Fingerprint Identification System (AFIS), and developed a new transaction manager, the National Police Services National Institute of Standards and Technology (NIST) Server, permitting agencies to submit their fingerprint information electronically. Phase 1 was closed-out in 2008 from an information technology perspective.

Project Phase

The scope of Phase 2 included modernizing the processes related to the management and updating of criminal records. As Phase 2 progressed, it became increasingly evident that the project could not be completed within the original project parameters. The Effective Project Approval (EPA) for the original Phase 2 expired in March 2009. Prior to amending the Phase 2 EPA, it was recommended by Treasury Board Secretariat that an Independent Project Review be completed to determine the best way forward. The review was completed in February 2010 and was followed by an options analysis. The selected option consisted of going forward with a business aligned scope, utilizing the remaining Treasury Board approved funding with incremental RCMP funding and with a scheduled completion date of March 31, 2013.

Leading and Participating Departments and Agencies

Lead Department	Royal Canadian Mounted Police (RCMP)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Public Safety Canada Citizenship and Immigration Canada Correctional Services Canada Canada Border Services Agency Transport Canada Federal Bureau of Investigation Canadian Law Enforcement Agencies

Prime and Major Subcontractors

Prime Contractor
Major Subcontractors	Fujitsu Consulting (Canada) Inc 600-360 Albert Street Ottawa, Ontario K1R 7X7 Cogent Systems Inc 209 Fair Oaks Avenue South Pasadena, California USA 91030 ADGA Group Suite 600-116 Albert Street Ottawa, Ontario K1P 5G3 Zylog Systems Inc 1545 Carling Avenue, Suite 600 Ottawa, Ontario K1Z 8P9

Major Milestones

Major Milestone	Date
Effective Project Approval for Phase 2 and RFP	June 2007
Phase 2 contract awarded (fixed-price contract)	January 2008
Sub-Processes Documented and Validated	August 2008
Systems Requirements Validation	December 2008
Phase 2 – Release 2 Scope Validation	October 2009
Release 1.1 in Production	January 2010
Independent Review	February 2010
Options Analysis	June 2010
Options Analysis Implementation Plan	September 2010
Defect Release (1.1.6) in Production	October 2010
Stabilization Release (1.1.7) in Production	March 2011
Amended Effective Project Approval granted	March 2011

Project Outcomes

Project Outcomes include:

• time to process civil, criminal and refugee ten print submissions reduced
• time to process latent crime scene searches reduced
• number of latent identifications increased
• improve overall identification and criminal records services

Progress Report and Explanations of Variances

RTID Phase 1 was closed-out from an information technology perspective in September 2008, 18 months later than originally planned. This variance in the schedule and scope impacted Phase 2, which was planned to be completed by July 2011. Factors for this schedule variance include the complexities of the system and delays in obtaining security clearances for Phase 2.

In 2009, the Executive Project Oversight Committee recommended that the RCMP conduct an independent review of the RTID project to help determine the project’s challenges, issues and way forward prior to submitting an amended EPA. The review was completed in February 2010 and was followed by an options analysis. The selected option consisted of going forward with a business aligned scope, utilizing the remaining Treasury Board approved funding and incremental RCMP funding with a scheduled completion date of March 31, 2013. The selected option carried the greatest probability of success by enhancing the RTID foundation, eliminating the current roadblocks of sustainability by moving forward with a reduced business aligned scope of automated end-to-end processing functionality.

A request to amend the Phase 2 EPA was granted on March 24, 2011. The amendment included extension of the approved timeline and expenditure authority as well as revision of the project scope.

The RTID Project is currently progressing as planned on the approved scope, within the amended budget of $146.8M, ($156.1M including GST) and on schedule to the revised project end date of March 2013.

Industrial Benefits

Not applicable.

Transport Canada

Status Report on Major Crown/Transformational Projects

This table applies to all major Crown projects and transformational projects in accordance with Treasury Board policies. Please see the policy on Management of Major Crown Projects and the Policy on the Management of Projects.

Detroit River Crossing

Description

The Canada-U.S. Bi-National Transportation Partnership is planning the new Detroit River International Crossing (DRIC). The partnership is composed of:

• Transport Canada;
• the U.S. Federal Highway Administration;
• the Ontario Ministry of Transportation; and
• the Michigan Department of Transportation.

The project is a U.S.-Canadian, I-75 to Highway 401, end-to-end solution consisting of five components: a new international crossing; the Canadian customs plaza; the U.S. border inspection plaza; the interchange between the U.S. bridge/plaza and Interstate 75; and the highway connector between the Canadian bridge/plaza and Highway 401. It is the partnership’s intention to seek a public-private partnership (P3) for the bridge and plaza portion of the project.

Bridge

The new Detroit River crossing will be a six-lane bridge that will provide three Canada-bound lanes and three U.S.-bound lanes. The new crossing will accommodate future travel demand, both in terms of meeting capacity and providing flexibility to stream traffic on the crossing to improve border processing (e.g., dedicated nexus/Fast lanes).

The new crossing will be constructed to link inspection plazas on the Canadian and U.S. sides of the Detroit River, and will be a key component of the new end-to-end transportation system that will link the existing Highway 401 to the U.S. Interstate system. The crossing will consist of a main bridge that will span the width of the Detroit River and is designed to provide navigational clearances that meet U.S. and Canadian requirements. It will also include approaches to the main bridge that will connect to plazas in both Canada and the United States.

Selection of the bridge type will be made during subsequent design phases of this project. Neither bridge type requires piers to be placed in the Detroit River.

Customs Plaza

In Canada, border inspection plaza alternatives were developed in consideration of the need to provide improved border processing facilities to meet future travel demand and security requirements at the border crossing. The new plaza will be designed to serve future (2035 and beyond) travel demands at the border crossing. Initial construction of the plaza may not include the fully developed plaza, as the plaza may be developed in stages. The initial construction of the plaza will be such that future expansion will be possible by way of constructing additional inspection or toll booths.

The plaza was developed in consultation with the Canada Border Services Agency and provides sufficient area for primary inspection lane booths and on-site secondary inspection of people and goods. The plaza alternative also allows for dedicated nexus and Fast lanes, and provides for substantial improvement of border crossing processing capabilities.

The plaza will be situated within the Brighton Beach Industrial Park, bounded by the Detroit River, Chappus Street, Ojibway Parkway and Broadway Street. The plaza includes a total area of 202 acres (72.8 hectares); a total of 29 inbound inspection lanes; a total of 103 secondary inspection parking spaces for commercial vehicles; nine toll collection lanes; and storm water management features to control the quality and quantity of run-off rain water.

Ontario Access Road

The new access road will be a controlled access highway connection approximately 11 kilometres long located between the Border Services plaza and the provincial highway network. The connection is a six-lane urban freeway with interchanges, grade separations, road closings and service roads. The connection includes a combination of below-grade, at-grade and above-grade segments, and 11 short-tunnelled (or covered) sections. The width of the right of way varies and, where possible, existing rights of way will be used. Along the corridor, the maximum width of the new right of way, not including the existing right of way, is approximately 300 metres.

Ontario is responsible for the delivery of the Windsor-Essex Parkway that will connect Highway 401 with the new border inspection plaza and bridge. The province concluded financial close of the concession agreement in December 2010 with the consortium that will construct the new highway.

The Government of Canada in Budget 2007 committed to funding up to 50 percent of eligible capital costs of the project, and Budget 2011 capped the potential contribution at a maximum of $1 billion. Transport Canada is reviewing the project business and is expected to conclude a contribution agreement with Ontario in 2011.

Rationale for the Project

The Windsor-Detroit crossing is the busiest land border crossing in North America.

• It accounts for $130 billion (2006 Canadian dollars) of two-way surface trade.
• It accounts for 28 percent of total Canada-U.S. trade.
• It consists of four crossings: the Windsor-Detroit tunnel, the Ambassador Bridge, the truck ferry and the Canadian Pacific Railway tunnel.
• The Ambassador Bridge alone handles 99 percent of Windsor-Detroit truck traffic.
• In recent years, there have been increased traffic delays due to heightened security checks at the U.S.-Canada border. Inefficiencies at the border crossing directly affect costs, thus affecting Canadian and U.S. companies’ ability to compete internationally.
• Traffic is expected to increase over the next 30 years: truck traffic is expected to triple and vehicle traffic to double.

Project Phase

Environmental assessments were approved for the project on both sides of the border in 2009. The Province of Ontario reached financial close in December 2010 with the private-sector concessionaire that will construct the new highway connecting to the new bridge. Some construction work has already started and more got underway in the summer of 2011.

Leading and Participating Departments and Agencies

Lead Department	Transport Canada
Contracting Authority	Deloitte
Participating Departments	Canada Border Services Agency, Public Works and Government Services Canada, Fisheries and Oceans Canada, Environment Canada

Prime and Major Subcontractor(s)

Prime Contractor	Deloitte 181 Bay Street, Suite 1100, Toronto ON M5J 2V1 Direct 416-643-8382 | Fax 416-601-6690
Major Subcontractor(s)	Investment Grade Traffic & Revenue Forecast Wilbur Smith Associates 9500 Arboretum, Suite 360, Austin, TX, U.S.A., 78759 Cost Consultant Davis Langdon 1717 Arch Street, Suite 3720, Philadelphia, PA, U.S.A., 19103 Bridge Technical Advisor Delcan 625 Cochrane Drive, Suite 500, Markham ON L3R 9R9

Major Milestones

Major Milestone	Date
1. An environmental assessment was launched with 15 options considered.	February 2005
2. Options were narrowed to three potential crossing locations, three potential plaza locations and five potential access road designs.	March 2006
3. The technically preferred Ontario access road was announced.	May 1, 2008
4. The technically and environmentally preferred alternative for the crossing and plaza locations was announced.	June 18, 2008
5. The U.S. Final Environmental Impact Statement was published for final comment.	December 5, 2008
6. The final Ontario Environmental Assessment Report was submitted to the Ontario Ministry of the Environment, and the Canadian Environmental Assessment Final Screening Report was submitted to the Canadian Environmental Assessment Agency.	December 31, 2008
7. The U.S. Record of Decision was made public.	January 14, 2009
8. Ontario’s environmental assessment was approved.	August 24, 2009
9. The federal environmental assessment was approved.	December 3, 2009
10. Financial close was reached for the Windsor-Essex Parkway.	December 17, 2010

Project Outcomes

The project is designed to achieve the following substantive goals:

• provide a new border crossing capacity to meet increased long-term international trade and travel demand;
• improve system connectivity to enhance the continuous flow of people and goods;
• improve operations and processing capabilities at the border;
• provide alternative and secure crossing options (i.e., network redundancy) to mitigate the risk of any disruptions or blockages of crossing facilities in the region; and
• ensure the Canadian and U.S. economies, and all users of the new bridge will benefit from the Detroit River International Crossing.

Progress Report and Explanations of Variances

Project Approvals

• Approval and necessary authorities were provided in December 2006 to continue advancing the development of a new Detroit River crossing for the Windsor-Detroit Corridor.
• The March 2007 federal budget supported the development of a new Detroit River crossing for the Windsor-Detroit Corridor and provided $10 million over three years for this purpose.
• The Detroit River International Crossing project has been identified as a major Crown project, as the total value exceeds the $100-million threshold. The entire project cost for Canada was estimated at $2.01 billion. Preliminary project approval was sought to provide authorization to expend resources to fully define the Detroit River International Crossing Project.
• Approval to continue to advance the development of a new Detroit River crossing for the Windsor-Detroit Corridor was provided in December 2007.
• Budget 2010 provided $10 million to cover expenses that will be incurred as the project moves from the planning to implementation phase.

Property Acquisition

In June 2009, expenditure authority approvals were provided for Phase I implementation of the Detroit River Crossing major Crown project for the acquisition and implementation of infrastructure projects related to the first of two groups of properties, for the Canadian half of the new international bridge and its Canadian customs plaza, at a substantive cost of $60.9 million, inclusive of GST of $2.9 million.

To date, Transport Canada has acquired 80 percent of the properties it requires for the Canadian customs plaza. By the fall of 2011, Transport Canada will have acquired all of the individual properties, with only six industrial properties remaining. Transport Canada continues to negotiate with the remaining property owners to acquire the needed land as expeditiously as possible.

Project Progress

In 2009, the project received the requisite environmental approvals in both countries. Future progress on the new crossing is being threatened by multiple legal and trade challenges, as well as the uncertainty of project approval by the Michigan legislature.

Project implementation in Michigan is contingent on authorizing state legislation that was tabled for discussion in the Michigan Senate in June 2011. Due to Michigan’s financial situation and to enable the legislation to be passed, Canada has committed to covering the costs for project components in Michigan that would not be funded by the private sector or the United States government, up to a maximum of U.S.$550 million. This is not a loan, but increased equity in the project. The Government of Canada would expect repayment from the anticipated toll revenues to be generated from the operation of the new bridge.

Industrial Benefits

The investment in new border infrastructure will result in a number of positive economic impacts. Recently conducted studies concluded that the direct and indirect (e.g., materials, equipment, services, etc.) impacts of the entire border infrastructure project will lead to the creation of approximately 23,000 jobs, including approximately 13,000 direct and 10,000 indirect employment opportunities. This is particularly noteworthy in that Statistics Canada has reported that the Windsor-Essex region has one of the highest unemployment rates in Canada. Ancillary benefits of these jobs are expected to result in increases in consumer spending, as personal income and company profits in the region improve.

Transportation

• The vast majority, 62 percent, of Canadian and U.S. bilateral trade crosses our shared border by land. Each day, almost 36,000 trucks cross the Canada-U.S. border, close to one-third (12,000) of those at Windsor-Detroit. This project will not only improve the efficiency of the border crossing in the region, but will also provide direct highway connections, thereby reducing costs associated with shipping, and lowering emissions of greenhouse gases and other pollutants from idling vehicles.
• Over the next 30 years, trade between Canada and the U.S. is projected to increase. Under high-growth scenarios, cross-border traffic demand could exceed the capacity of the present border crossings in the Detroit River area as early as 2015.

Economy

• Given the significant interdependency of the Canadian and American economies, there is nothing more important to exporters and importers on both sides of the border than being able to ensure that traffic at the border flows efficiently and that the international supply chain remains strong.
• Businesses from coast to coast in Canada and the United States depend on a reliable and secure transportation network. Manufacturing production depends heavily on the fast and predictable trucking of components, parts and finished products across the border, particularly between Windsor and Detroit.
• It is estimated that the direct and indirect impact of the entire border infrastructure project on the province’s gross domestic product (GDP) will be $1.6 billion. Additionally, using Ontario’s two-thirds attribution ratio, it is expected that approximately 15,000 total jobs will be created in the Windsor-Essex region, while contributing an estimated $587 million to the GDP of the Windsor-Essex region.

Security

• The binational partnership is working with border inspection agencies in both countries to ensure that the proposed border processing facilities meet future travel demand and their security requirements at the border crossing. The plazas will be designed to serve future (2035 and beyond) travel demands. These new plazas are being developed in consultation with the Canada Border Services Agency and the U.S. Department of Homeland Security, Customs and Border Protection Branch, to provide sufficient areas for primary inspection-lane booths and on-site secondary inspection of people and goods. The plaza designs will allow for dedicated Nexus and Fast lanes, and will provide for substantial improvement of border processing capabilities, including areas for permanent gamma ray inspection equipment.
• With almost $2 billion (Canadian dollars) daily in cross-border trade with the United States, keeping the trade system open and flowing efficiently is critical to ensuring both countries’ economic prosperity. It is equally critical to protect the border against potential threats to our health, security and economy. Redundant infrastructure will help keep the border open in case of incidents at other crossings.