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The Honourable Gordon J. O’Connor, PC, MP
Minister of National Defence





 




Minister’s Message

As Minister of National Defence, I am honoured to present to Parliament the 2007-2008 Report on Plans and Priorities.

The Honourable Gordon J. O'ConnorThis year’s report reflects the continuing refinement and application of the Treasury Board Program Activity Architecture (PAA) to the management of defence.  In the coming months, the department will further integrate and link the PAA to resources.  The eventual goal is to provide a clear understanding of the relationship between resources and outcomes in executing the department’s three major activities:

  • Ensuring that the Department of National Defence and the Canadian Forces have a relevant and credible capacity to meet their defence and security commitments;
  • Contributing to domestic and international peace, security and stability by achieving success in assigned missions; and
  • Promoting good governance and the Canadian identity and exerting influence in a global community.

As part of a whole-of-government approach to defence and security, the Canadian Forces’ first priority continues to be success in our operations at home and abroad. Achieving operational success is contingent on a number of interrelated priorities, including enhancing force protection and generating, supporting and sustaining operational forces.

Cuts to the defence budget and personnel levels throughout the 1990s, combined with an increase in operational tempo over the last decade, have had a negative impact on our military.  This legacy will limit the pace at which the Government implements its initiatives for defence.  For example, since conducting ongoing operations remains our first priority, the expansion of the Canadian Forces will need to be carefully managed, and may take longer than first envisaged.

The Canadian Forces will continue to protect Canadians at home and assert our sovereignty in the context of an increasingly complex security environment.  We expect that demand for CF support for activities including search and rescue operations, law enforcement and emergency response will continue to increase. As a consequence, Canada’s military must be better prepared to respond to emerging domestic demands.

Along with these vital domestic responsibilities, Canada will continue to uphold its longstanding dedication to global peace and security.  Canada’s ongoing contribution to international efforts to bring security and stability to Afghanistan remains the primary focus of CF operations abroad, and we are committed to achieving sustained progress in that country.

In addition to sustaining today’s activities, the department must prepare for tomorrow.  The Government is developing the Canada First Defence Strategy, which will put forward a long-term plan to guide DND and the CF into the future. It will provide the framework for revitalizing the core capabilities of the Canadian Forces. The department will move forward in 2007-08 on a number of initiatives that will improve the Forces’ ability to fulfill essential national responsibilities, including national surveillance, increase their presence at home, including in the Arctic, and enhance their ability to respond to natural disasters and other emergencies on Canadian soil.

To protect our country, the Canadian Forces rely on the dedication and commitment of all members of the Defence team—both military and civilian. I am proud to lead this vital national institution.  I look forward to continuing my work with Canadians and Members of Parliament and the Senate to enhance the Forces and provide ongoing support to our courageous men and women in uniform.



The Honourable Gordon J. O’Connor, PC, MP
Minister of National Defence



Management Representation Statement

I submit for tabling in Parliament, the 2007–2008 Report on Plans and Priorities (RPP) for the Department of National Defence.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2007–2008 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

  • it adheres to the specific reporting requirements outlined in the Treasury Board Secretariat (TBS) guidance;
  • it is based on the department’s Strategic Outcomes and Program Activity Architecture (PAA) that were approved by the Treasury Board
  • it presents consistent, comprehensive, balanced and reliable information;
  • it provides a basis of accountability for the results achieved with the resources and authorities entrusted to DND and the CF; and
  • it reports finances based on approved planned spending numbers from the Treasury Board Secretariat in the RPP.

W.P.D. Elcock
Deputy Minister

 

Section I: Departmental Overview

Defence as a National Institution

The Defence Mission

Our mission is to defend Canada and Canadian interests and values while contributing to international peace and security.

Under Canadian defence policy, the Canadian Forces are called upon to undertake three roles:

  • protect Canadians at home;
  • defend North America in co-operation with the United States; and
  • defend Canadian interests abroad.

To carry out these roles successfully, the Canadian Forces maintain a range of military capabilities, including modern, combat-capable sea, land, air and special operations forces.

The Defence Portfolio

The Department of National Defence (DND), the Canadian Forces and a group of related organizations and agencies, including the Communications Security Establishment (CSE) and Defence Research and Development Canada (DRDC), carry out the Defence mission.

The CF also maintain the following:

Defence also includes the following organizations that report directly to the Minister of National Defence:

The National Defence Act establishes DND and the CF as separate entities operating in close co-operation under the authority of the Minister of National Defence. As well as the National Defence Act, the Minister of National Defence is responsible for the administration of the statutes, regulations and orders listed at Appendix A. The National Defence Act also establishes a Deputy Minister to be responsible for policy, resources, interdepartmental co‑ordination and international defence relations, and designates the Chief of the Defence Staff, the senior serving officer of the CF, as the person “… who shall, subject to the regulations and under the direction of the Minister, be charged with the control and administration of the Canadian Forces.”1

The Canadian Forces Grievance Board and the Military Police Complaints Commission report to the Minister of National Defence although they are not part of the Department of National Defence. This reporting arrangement and organizational status are designed to ensure accountability while maintaining an ‘arm’s-length’ relationship.

Specific accountability for results and associated performance measurement areas at the level of the Assistant Deputy Ministers and the Environmental Chiefs of Staff are detailed in the Defence Plan On-Line. The National Defence Headquarters organization chart is found in Section III.

Key Defence Partners and Stakeholders

Defence works with many Canadian and international partners that help support its mission, programs and activities. The broad scope of the Defence mandate is reflected in the complexity and diversity of its partners and stakeholders, listed in Appendix B.

The Benefits of Defence Investment by Strategic Outcome

The Chief of the Defence Staff and the Deputy Minister are responsible for transforming National Defence to improve their ability to defend Canada, protect Canadian interests and values, and enhance Canada’s role in the world. The ability to respond to the needs of Canadians and meet the challenges of the evolving security environment is at the centre of the transformation process. Defence provides Canadians with the confidence in Canada’s capacity to meet defence and security commitments, to contribute successfully to assigned missions, and to demonstrate Canadian values through leadership and good governance.

Confidence that DND and the CF have relevant and credible capacity to meet defence and security commitments.

To respond to ongoing and future requirements, the Canadian Forces are improving the integration of maritime, air, land and special operations forces to allow units to work as one unified team. On July 1, 2005, the transformation of the CF began with the formation of Canada Command (Canada COM). Defending Canada is the Canadian Forces’ first priority. As an integrated national operational command headquarters, Canada COM allows the CF to deploy the best mix of military assets to meet any emergency anywhere in Canada. In the event of a natural disaster or a terrorist attack, the combined response will be immediate, co-ordinated and sustained. Canada COM is also responsible for operations to defend North America and maintain continental security in co-operation with the United States.

To better meet our international defence and security commitments the CF has stood up Canadian Expeditionary Forces Command (CEFCOM), which is responsible for the conduct of all overseas operations, including humanitarian, peace support and combat operations. Canadian Special Operations Forces Command (CANSOFCOM) has been created to support Canada COM and CEFCOM with a broad spectrum of agile special operations capabilities at high readiness. These commands utilize Environmental Chief of Staff2 generated and assigned forces that are renowned for their professionalism and exceptional training internationally and thus are greatly sought after for their expertise.

Success in assigned missions in contributing to domestic and international peace, security and stability.

The CF are poised to respond to domestic and international crises when called upon by the Government of Canada. On the domestic front, the CF is prepared to provide much-needed humanitarian assistance in response to a natural disaster as well as to instill a psychological sense of security which facilitates reconstruction and society’s return to normalcy. The CF will continue to conduct surveillance patrols of Canada’s territory, aerospace and ocean approaches, concentrating on areas where Canada’s economic interests are most likely to be challenged as well as continuing to ensure the safety of Canadians. This crucial role is evidenced by the over 8,000 search and rescue incidents which the CF have responded to in the last year.

Every day, over 9,100 members of the CF are employed in roles supporting domestic operations. Since April 2005, more than 4,700 CF personnel have deployed on various missions, and Canada now has more than 2,900 personnel deployed around the world to defend Canadian values and interests while contributing to international peace and security. In the “whole of government” approach to the problem of failed and failing states, Defence has the task of providing the secure environment that lays the foundation for the delivery of humanitarian aid and long-term development assistance. The CF frequently receive requests to lead these efforts.  To ensure they remain able to do so, the CF will continue to seek ways to improve on their capabilities.

Currently, reservists make up 13% of DND’s deployed strength abroad, including one in seven soldiers in Afghanistan. The CF Transformation and anticipated commitments in international operations suggest that this rate of reservists’ participation in operations will be maintained, if not increased, under the new Integrated Managed Readiness System.

Good governance, Canadian identity, and influence in the global community

At home, Defence benefits Canadian society in a wide variety of ways. With more than 30 bases and stations across the country, the CF make a significant economic impact while contributing to the security of Canadians. The economic effects extend beyond military equipment such as weapons, ammunition, aircraft, vehicles, ships, and electronic and navigation instruments, or even the salaries of CF members and Defence civilians. Defence spending reaches throughout the multitude of industrial activities that support and enable Defence: construction, transportation, telecommunications, utilities, energy, land and building rentals, education and advertising, to name but a few.

The CF presence is further extended by more than 300 Reserve units, about 125 Canadian Ranger patrols, and more than 1,100 Cadet units and Canadian Junior Ranger patrols, each constituting a vital link between the Canadian Forces and the people of Canada. In fact, the CF are present in every province and territory, and in more than 3,000 communities across the country. As Defence is Canada’s largest single public-sector employer, defence spending and investment contributes to the prosperity of Canadian communities, businesses and industries.

Through its research and development initiatives, Defence is a science and technology leader. Defence also supports civilian health-care providers in major emergencies, and helps protect the environment by participating in the clean-up and remediation of contaminated sites.

These varied activities, coupled with the presence of CF personnel and Defence civilians, highlight the importance of Defence’s contributions to Canadian identity.  It is important the foregoing activities continue to demonstrate Canadian values through leadership and good governance.

The ultimate goal for Defence during fiscal 2007–2008 is to ensure that the Canadian Forces can defend Canada, protect Canadian interests and values, and enhance Canada’s role in the world by maintaining multi-role, combat-capable defence forces.

Link to the Government of Canada Outcome areas

Defence’s actively contributes to all of the Government of Canada Outcomes. The table below provides a high level summary of which Defence Strategic Outcomes contribute to the various Government of Canada Outcomes.  Additional details on Defence’s contributions can be found within Canada’s Performance and the 2005-2006 Defence Departmental Performance Report.


Government of Canada Strategic Outcomes National Defence’s Strategic Outcomes

 

Canadian’s Confidence that DND/CF has relevant and credible capacity to meet Defence and Security commitments Success in assigned missions in contributing to domestic and international peace, security and stability Good governance, Canadian identity and influence in a global community
Economic Affairs

 

 

 

  • Income security and employment for Canadians

 

 

  • An innovative and knowledge-based economy

 

 

n

  • A clean and healthy environment

 

 

Social Affairs

 

 

 

  • Healthy Canadians

 

 

  • Safe and Secure communities

n

n

  • A diverse society that promotes linguistic duality and social inclusion

 

  • A vibrant Canadian culture and heritage

 

 

n

International Affairs

 

 

 

  • A safe and secure world through international cooperation

n

n

  • Global poverty reduction through sustainable development

 

 

  • A strong and mutually beneficial North American partnership

n

n

n

  • A prosperous Canada through global commerce

 

 

Government Affairs

 

 


Source: VCDS - Chief of Programme
Legend    n = Primary    ◘   = Secondary

 

Overview of Financial and Human Resources by PAA

The following tables provide resource information at the program activity level, first at the Departmental level, then by program activity and strategic outcome.

Financial Resources


($ Thousands) Forecast Spending  2006–2007 Planned Spending 2007–2008 Planned Spending  2008–2009 Planned Spending  2009–2010
Departmental Spending

15,910,854

17,845,445

18,862,816

19,047,833

Capital Spending

2,498,906

3,908,616

4,720,405

4,891,618


Source: Assistant Deputy Minister (Finance and Corporate Services)

 

Human Resources  – Full Time Equivalents  (FTEs)


 

Forecast FTEs
2006–2007
Planned FTEs
2007–2008
Planned FTEs
2008–2009
Planned FTEs
2009–2010
Military (Regular Force)1

64,878

66,737

67,347

67,957

Civilian2

24,400

25,000

25,000

25,000

Total

89,278

91,737

92,347

92,957


Source: Chief of Military Personnel and Assistant Deputy Minister – Human Resources  (Civilian) and VCDS - Chief of Programme

Notes:

  1. Current fiscal framework limits Regular Force expansion up to 68,000 Average Paid Strength. This strategic limit does not include personnel seconded to OGDs (approx 300 FTEs) and Project Management Personnel Resource  paid under Vote 5 projects (approx 400 FTEs). FY 07/08 Average Paid Strength includes approx 1,200 Class “C” Reservists to augment operationally deployed forces.
  2. Current fiscal framework will limit civilian Salary Wage Envelope to 25,000 FTEs equivalent. Such envelope does not include personnel seconded to OGDs, Project Management Personnel Resource paid by Vote 5 projects and ongoing/proposed initiatives to convert professional contractor support to Public  Service members.

Program Activities by Strategic Outcomes


 

Planned Spending Contributes to the following priorities
2007–2008 2008–2009 2009–2010
Strategic Outcome and Expected results: Canadians’ confidence that DND and the CF have relevant and credible capacity to meet defence and security commitments
Generate and Sustain Integrated Forces

14,611,027

16,028,503

16,494,499

Priority No. 2 and 4*
Strategic Outcome and Expected results: Success in assigned missions in contributing to domestic and international peace, security and stability
Conduct  Operations

2,286,490

1,849,781

1,550,751

Priority No. 1*
Strategic Outcome and Expected results: Good governance, Canadian identity and influence in a global community
Contribute to Canada and the International Community

947,928

984,532

1,002,583

Priority No. 3*

Source: Assistant Deputy Minister – Finance and Corporate Services and VCDS - Chief of Programme

* The Defence Priorities are described in detail on pages 8 and 9.

 

Defence Priorities 

The Defence priorities focus on areas where additional effort will be directed over a fiscal year either to address a gap in capability or capacity, or to comply with broader government direction to increase activity. They help translate long and medium-term goals and objectives into short-term direction for action, while maintaining focus on the requirements of the current operating environment.

Defence priorities do not define mandates, duties or responsibilities.  Rather, they identify the areas where Defence will increase emphasis or effort in the execution of its mandate. For each Defence priority listed here, the corresponding program under the Defence Program Activity Architecture is identified. The Defence Management Committee approved these priorities on November 3, 2006.


 

Program Activities
Defence Priorities 2007-2008 Generate  and Sustain  Integrated Forces Conduct  Operations Contribute  to Canada and the international Community Type of Priority
1. Conduct  Operations
a) Succeed with operations at home and abroad as part of a whole of government approach.
For example:
  • Canada Command (Canada COM) is primarily concerned with planning domestic operations, including support to provincial and municipal authorities and interagency liaison. Memoranda of Understanding and interdepartmental contingency plans under development include one between Defence and the RCMP, and initiatives are under way to improve the co-ordination of CF support to civilian authorities with respect to major disaster response, especially firefighting; hurricane relief; chemical, biological, radiological and nuclear (CBRN) response; and pandemic diseases, especially influenza.
  • Internationally the CF will support Canada’s commitments to NATO and the U.N. by making maritime, land and air forces available to respond rapidly to international emergencies and other security challenges.

 

n

O

b) Enhance force protection through fostering a culture of risk management while shaping the environment with enablers.
For example:
  • The Medium-to Heavy-Lift Helicopter Project, which received preliminary project approval from Treasury Board on June 22, 2006, will provide the CF with rotary-wing aircraft capable of moving troops and equipment safely and effectively in low- to medium-threat environments in Canada and abroad.

n

N

c) Sustain the Generation of Operational  Forces to meet international and domestic commitments.
For example:
  • Examine the requirements to implement a CF Integrated Managed Readiness  capability that includes the regular and reserve components of the navy, army, and air force to be capable of providing a disciplined, predictable framework for training, personnel employment and resource expenditure.

n

O

2. Grow the Regular and Reserve  Forces to meet international and domestic commitments
a) Defence will increase the size of the Regular and Reserve forces according to Government direction by focusing on enhancing key established capabilities, and by leveraging growth with internal reinvestment to building new capabilities that deliver the operational effect necessary to fulfill the “Canada First” defence strategy.

n

 

O

b) The Canadian Forces  Recruiting  Group is changing its organizational structure and streamlining its recruiting, processing and management processes to ensure that its resources are applied more effectively. These adjustments will make the recruiting system more responsive, and improve the level and quality of recruiters’ services both to applicants and the CF.

n

 

O

c) To bring critical military occupations up to strength, the CF offer an array of entry programs, subsidized education opportunities, signing bonuses, and occupational transfer opportunities for serving members. Furthermore, the number of component transfers between the Reserves and the Regular Force is increasing, and more officer candidates are being accepted through the direct-entry program. Without sufficient recruiting in certain critical military occupations, the CF will not be able to conduct operations with optimum effectiveness.

n

 

O

3. Implement the Government’s “Canada First” Defence strategy
a) Move ahead with capital acquisition projects for a multi-role, combat-capable military, including the Joint Support Ship, tactical and strategic lift aircraft, medium- to heavy-lift helicopters, and logistics trucks.

n

N

b)Strengthen key multilateral and bilateral organization relationships through active participation within the United Nations,  NATO and the North American Aerospace  Defence Command.

n

N

4. Enhance program delivery and optimize resource utilization
a) Implement resource acquisition reform to realize reductions in project expenditure authority cycles, increased capacity to pursue projects and accelerated procurement cycles.

n

 

O

Legend:      O = Ongoing          N = New           n = Primary   ◘ = Secondary


Source: VCDS – Chief of Programme

Expenditure Management Review

This is the third year of scheduled reductions as Defence continues toward the goal of a steady-state reduction of $203 million by fiscal 2009-2010, with the Expenditure Review Committee (ERC) target fiscal 2007-2008 representing $143 million.  The specific efficiencies have been assigned as follows:


($ millions)

2007-08

2009-10

 

 

 (Steady-State)

PROGRAM EFFICIENCIES

 

 

Reduce O&M and National Procurement Support to Air Assets

$25.00

$53.00

Canadian Parachute Centre

$3.00

$7.00

Reduce Light Armour Vehicles

$7.00

$7.00

Reduce Non-military Vehicles

$7.00

$7.00

Total

$42.00

$74.00

Corporate Efficiencies

 

 

Reduce National  Capital Region

$42.32

$52.39

MASOP

$20.00

$20.00

Reduce Support  for IM/IT Corporate Information  Systems

$11.00

$20.00

Reduce R&D

$15.00

$15.00

Reduction General and Administrative Support

$13.00

$7.00

Total

$101.32

$129.39

Target

$101.00

$129.00

Total ERC Target

$143.00

$203.00


Of note, approximately 22 percent ($32 million) of the Reduce National  Capital Region 2007-2008 total will be achieved by reducing the number of contractors working at DND, partly by hiring civilian employees. The application of the reductions ordered by the ERC in information technology infrastructure support provided by the Assistant Deputy Minister (Information Management) will total $2 million this year and rise to $20 million by fiscal 2009-2010.  This final portion of the ERC will complete the Department’s obligations to the ERC and achieve the full assignment of all targets up to and including steady-state fiscal 2009-2010.  The department will continue to report annually on ERC until the steady-state reductions are in effect.

Link to TBS ERC website: http://www.tbs-sct.gc.ca/emis-sigd/FAQ_EMR-eng.asp


The Defence Program Activity Architecture

The Program Activity Architecture in Context: Strategy Map

Treasury Board approved the new Management, Resources and Results Structure (MRRS) for Defence on August 30, 2005. In accordance with Treasury Board policy, the Defence MRRS consists of three elements: a Program Activity Architecture (PAA); clearly defined and measurablestrategic outcomes; and a description of the current governance structure that outlines the department’s decision-making mechanisms, responsibilities and accountabilities. These are described below.

The three strategic outcomes for Defence are as follows:

  • Canadians’ confidence that DND and the CF have relevant and credible capacity to meet defence and security commitments;
  • Success in assigned missions in contributing to domestic and international peace, security and stability; and
  • Good governance, Canadian identity and influence in the global community.

Each program comprises three levels: program activities, program sub-activities and program sub-sub-activities. The activities that make up each program are causally linked to produce the program’s predominant output, and each program output contributes or leads to a strategic outcome.

A parallel but separate construct, Executive and Corporate Services, provides a place to list the organizational entities, such as finance and information management, that do not directly produce program outputs, but support and provide coherence to all program activity.The costs of Executive and Corporate Services activities are distributed across the three programs according to a pro-rated formula.

The PAA structure is distinct from the organizational and financial structure of Defence and the Canadian Forces under the Assistant Deputy Ministers and the Environmental Chiefs of Staff, each a “Level One”. An electronic interface links the organization identification numbers and the associated financial tracking system consisting of fund centres and cost centres.  There are also separately tracked Work Breakdown System accounts, for each Level One organization with the PAA at the program sub-sub-activity level.

The governance structure of the MRRS outlines the decision-making mechanisms, responsibilities and accountabilities of Defence. It consists of the following:

  • a corporate governance structure operating department-wide at the highest level to provide strategic, resource and management direction, decision-making and accountability for the whole institution and its programs;
  • a governance structure for each program activity to guide program development and effectiveness, provide advice on the key contributing processes, and ensure accountability for program outcomes and results; and
  • a process and functional governance structure for the overall business model, with its major processes and functional activities, to ensure effective process and functional management, functional policy alignment, and integration of each process to the whole business model.

Defence uses the MRRS to underpin departmental planning, management of the Defence Plan, resource planning and management, and performance monitoring and reporting, especially external reporting. Section II of this report provides an analysis of planned program activities by strategic outcome. As part of the full implementation of the MRRS policy, Defence will develop and implement a plan to be able to meet the requirements of steps 1-5 as laid out within the Treasury Board Secretariat call-letter dated 14 December 2006.

The following chart summarizes the structure of the Defence PAA.


The following chart summarizes the structure of the Defence PAA
Click on image to enlarge


Link between PAA and Performance Management

As part of the Performance Management Framework in Defence, the Strategy Map for the organization at the level of the Deputy Minister and the Chief of the Defence Staff provides the senior leadership a system for tracking, analyzing and effecting departmental performance by translating the departmental mission and vision statements into causally linked strategic objectives. The Strategy Map sets out strategic themes across different perspectives, using a modified version of the Balanced Scorecard  approach to performance management. For further information on the Balanced Scorecard, visit http://www.vcds.forces.ca/dgsp/pubs/dp_m/pm/intro-eng.asp#3

The strategic objectives drive success in the three main outputs of the Defence PAA that lead to the achievement of the strategic outcomes and the mission. Indicators and measures are being developed for each strategic objective. This developing framework gives Defence an internal picture of performance, and will be used to inform external audiences about the progress Defence is making toward its PAA outputs and outcomes. Defence is also taking steps to align its performance management framework with other government reporting requirements, including the Management Accountability Framework and the PAA. Appendix C provides a description of the strategic themes and objectives.

 


DND Stategy Map
Click on image to enlarge


Planning Context

Canada First Defence Strategy (CFDS)

Defence is currently developing a document to formalize the CFDS, which re-affirms the three traditional roles of the Canadian Forces - protecting Canada and Canadians, defending North America  in cooperation with the US, and defending Canadian interests abroad - and the need for a multi-role, combat capable military. The CFDS documentis expected to be released in the coming months and will provide detailed guidance on the roles andmissions of the Canadian Forces and long-term capital equipment priorities.

However, since conducting successful operations remains Defence’s top priority, it will be critical to ensure that current CF activity levels can be sustained, even as the Forces are expanded and transformed.  This will require balanced investment across all components of the Defence Services Program.  As a result, the plans for CF expansion and certain procurement initiatives have been amended since RPP 2006-2007.

To ensure activity levels will be sustained throughout CF Expansion  and Transformation  phases, it is critical that a balanced investment be maintained in all components of the Defence Services Program (eg. Human Resources, Equipment and Infrastructure), resulting in the need to reprofile certain CF Expansion and Capital Acquisition  initiatives.

Transformation

The Canadian Forces Transformation, initiated in 2005, has converged with the evolving CFDS and the Accountability Act to be a major influencer of the Department’s plans for the next years.  Of the many activities intended to result in a Transformation of the CF, the creation of separated strategic and operational levels of command for operations and the redesign of the Department’s governance construct are expected to have the greatest impacts in the next couple of years.  The strategic-level of command will increasingly involve in and lead the operating strategy of the CF while the operational level of command - the level of command that employs forces to attain strategic objectives in a theatre or area of operations through the design, organization, and conduct of campaigns and major operations – will set the conditions for greater tactical decisiveness and operational responsiveness.  This separation of the levels of command also brings greater visibility and accountability to decisions and mission assignments.

Defence Plan (DP)

The DP will continue to evolve to reflect planned CF Transformation activities and prepare for alignment with the goals and milestones of the CFDS.  The advent of accrual budgeting for Defence allocations within Federal Budgets 2005 and 2006 has changed the way those resources will be planned and managed within the DP, and in particular within the Capital Equipment and Capital Infrastructure budgets.  Early analysis has indicated that the DP, while continuing to provide specific direction and resources for current year management, should evolve to display a longer, multi-year investment plan for allocations to Level One organizations’ and Corporate accounts.  This approach would achieve better visibility and linkage between CFDS guidance and the strategic allocation of the resources to achieve the multi-year Defence Services Programme. As well, it would better satisfy Treasury Board Secretariat requirements regarding linkages between major strategic investments and stated policy objectives.

Impact of Operations

Success in Canadian Forces ’ operations will remain the paramount strategic outcome for Defence Plan ning and Management activities in the near term.  Resource  planning and decision making will continue to focus on those activities and investments which enable and support Canadian Forces commanders and their missions both abroad and at home.  In-year management decisions will continue to address fluctuations in estimated costs and/or evolving operational requirements through the sourcing and reallocation of operating and capital funds.  This process, while ensuring direct support costs of operations are fully funded, increases the risk of the Department inadequately addressing longer-term sustainability issues during the one-to-five year planning horizon. 

Expand and Transform the CF

Force Employment

In its 2006 federal budget, the Government of Canada announced its intention to increase the strength of the Canadian Forces. Defence will focus this growth by enhancing key established capabilities, and by leveraging growth with internal reinvestment to build new capabilities that deliver the operational effect necessary to fulfill the government’s “Canada First” defence strategy. The pace and scope of force expansion will be determined by the human and financial resources made available for this initiative.

Planning for the expansion is now under way, and growth will be tightly programmed to ensure the delivery of robust capabilities. Personnel demands not programmed in the planned ceiling will continue to require commensurate offsets.

Attracting, enrolling and training enough good recruits is of paramount importance to complete the expansion and regeneration of the CF while maintaining the current operational tempo. Expanding the CF will require careful management of priorities and considerable effort by all members of the Defence Team.

The prevailing security environment also requires the CF to develop and maintain integrated, multi-role, combat-capable defence forces that are increasingly interoperable with allied nations and other security partners. The “joint” approach to operations has become more important as the CF focus on domestic defence issues including Arctic sovereignty and surveillance, continental defence and international operations, particularly in the context of failed and failing states. To achieve this vision, the CF will continue to transform their structure, processes and capabilities to ensure relevance, responsiveness and effectiveness at home and abroad, today and in the future.

Force Planning

The development of defence capabilities is complex and multi-dimensional. When planning and acquiring capabilities, the CF must predict Canada’s strategic circumstances over several decades, and determine the situations (“scenarios”) in which a military response might be required. The CF continue to plan and develop capabilities that will support operations in the areas of command and control; intelligence, surveillance and reconnaissance; force protection; chemical, biological, radiological and nuclear (CBRN) defence; and space based capabilities. Future security environment and strategic operating concepts analysis will continue to be used, in conjunction with approved classified scenarios, to help detail how the CF will operate as an integrated team.

New Capability Based Planning (CBP) and Capability Management (CM) processes will be further institutionalized to bring greater coherence to CF force development. Concurrently, the CF will work closely with key stakeholders to address the ends, ways and means required for the Forces to become the integrated, multi-role military consistent with government priorities.

The creation of CANOSCOM in 2006 provided the CF with a single entity charged with bridging the gap between Canada and Canadian Forces employed in operations on other continents. Using research accumulated over the past three years, in 2007–2008 CANOSCOM will continue to experiment with different options to project operational sustainment into non-traditional theatres of operation on different continents. Armed with this analysis, CANOSCOM will offer options for maintaining simultaneous CF operations in two overseas theatres for implementation in 2008. This work will consider not just the fighting forces but options for contributing to a “whole of government” mission in which the CF are part of a multi-disciplinary Canadian effort to stabilize and assist a nation or region in crisis. The key to this effort will be providing the army, navy and air force with new operational support capabilities through a Canadian Forces Joint Operational Support Project that will identify and correct shortfalls in the current capacity of the CF in these areas.

As part of the effort to sustain CF task forces overseas while maintaining the capability to respond to domestic crises, during fiscal 2007–2008 CANOSCOM will develop a new situational-awareness capability to identify the flow of CF materiel and personnel in near-real-time, both in Canada and around the world. Called a Recognized Support Picture, this tool will permit decision-makers at all levels to see the materiel demands of ongoing operations, and the movement of assets to meet those demands. The Recognized Support Picture will highlight areas of potential shortage so decision-makers can adjust the tempo of operations or the flow of support proactively, according to need. The ability to match the needs of deployed task forces with the support stream will give commanders more freedom to innovate and adjust their plans.

The Recognized Support Picture uses data from an automated asset tracking system that is compatible with Canada’s allies and provides the near real time updates that commanders require. The radio frequency identification (RFID) adopted for the 2006 troop rotations to Afghanistan was essential to this new capability.

Defence Intelligence

It is the mandate of the Defence Intelligence function to provide credible, reliable and sustained intelligence services to DND and the CF in support of decision-making and military operations; to support other government departments in the defence and security of Canada; and to build relationships and work with allies in support of mutual defence and security issues. In accordance with direction from the Chief of the Defence Staff (CDS) and the Deputy Minister, the intelligence function at Defence continues to transform into a fully integrated DND/CF capability under the Chief of Defence Intelligence (CDI), linked by a fully interoperable secure information infrastructure founded on common software applications and compatible information systems.

Under the authority of Chief Defence Intelligence, Defence Intelligence must also seamlessly integrate tactical, operational and strategic capabilities with service-specific, joint, national and international data and products. All components of Defence Intelligence will function within a coherent framework that:

  • gathers and prioritizes requirements from the DND/CF client base;
  • tasks the most appropriate collection and production assets from across the breadth of the CF and partners’ assets; and
  • delivers the right product to the right decision-maker at the right time and in the right format.

The civilian and military work force of Defence Intelligence will be developed and nurtured through a common strategic training and education regime.

CDI will continue to work within the realigned CF force structure to provide effective intelligence support to CF operations; in particular, strategic intelligence threat assessments and associated scientific and technical analyses will be undertaken to support force-development activities. At the same time, CDI will enhance intelligence operational support capabilities through the standardization and modularization of deployable all-source intelligence centres designed to function in a joint and combined operational environment at threat levels ranging from low to high. It will also strive to ensure that all defence intelligence capabilities are sustainable and effectively trained.

CDI will develop a long-term intelligence research and development program that capitalizes on emerging technologies, and collaborates with national and international allies to ensure that Canada’s capabilities are both current and effective.


 




Section II: Analysis of Program Activities by Strategic Outcomes

Defence plans and priorities for fiscal 2007–2008 include ensuring the efficient conduct of current and future operations, recruiting and training personnel to expand the Regular Force and the Reserves, implementing the government’s “Canada First” defence strategy, enhancing program delivery to deliver major capital projects as quickly and cost-effectively as possible, and optimizing the utilization of resources.

Generate and Sustain Integrated Forces

Strategic Outcome: Canadians’ confidence that DND and the CF have relevant and credible capacity to meet defence and security commitments.


Program Activity: Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces — Total Spending Net of Revenues
Resources Forecast Spending 2006–2007 Planned Spending 2007–2008 Planned Spending 2008–2009 Planned Spending 2009–2010
Departmental Spending ($ Thousands)

12,568,735

14,611,027

16,028,503

16,494,499

Capital Spending ($ Thousands)(included in departmental spending)

2,256,142

3,685,877

4,514,658

4,720,356


Source: Assistant Deputy Minister - Finance and Corporate Services

The focus of the first program activity is to measure the ability of Defence’s high-readiness forces to meet defence and security commitments. Its scope encompasses all aspects from creating a responsive organizational structure, through recruiting military and civilian personnel and equipping forces, to training forces for operations. It supports the corporate priority of transformation and modernization of the CF.

This program activity comprises four program sub-activities that sustain the anticipated operational tempo for both planned and contingency operations at appropriate readiness levels and generate surge forces to meet unexpected demands. The four program sub-activities supporting the “Generate and Sustain Relevant, Responsive, Effective Combat-Capable, Integrated Forces” activity are:

  • Generate and Sustain Integrated, Operational Forces Capable of Maritime Effects
  • Generate and Sustain Integrated, Operational Forces Capable of Land Effects
  • Generate and Sustain Integrated, Operational Forces Capable of Aerospace Effects

Generate and Sustain Joint, National, Unified and Special Operations Forces

Generate and Sustain Forces Capable of Maritime Effects

The navy’s mission is to generate and maintain combat-capable, multi-purpose maritime forces to meet Canada’s defence capability requirements and assigned defence tasks.  Canada’s navy provides security to Canadians by safeguarding our maritime approaches and by contributing to international and domestic maritime security.  The navy enables Canada to exercise sovereignty over our waters and protect our offshore natural resources.  Abroad, the navy is a valuable instrument of Canada’s foreign policy with the capacity to both advance and defend its interests while supporting Canada’s diplomatic and development objectives.

The navy will maintain its current force structure and focus personnel and financial resources on high-priority sustainment activities, especially generating the high-readiness units required for the Contingency High-Readiness Task Group and international deployments.

The navy will implement the Maritime  Readiness and Sustainment Policy  to generate a Composite Contingency Task Group of four high-readiness ships (two on each coast) and a National  Task Group (one on each coast), consisting of two ships assigned to the Composite Contingency Task Group and two to three Standard Readiness (SR)ships.

The navy will support Operation ALTAIR and the Standing NATO  Maritime Group (SNMG).

During fiscal 2007-2008, operations in home waters will require at least 225 to 275 frigate sea days (one “frigate sea day” being one day of operation at sea by one Halifax-class frigate). Fifty frigate sea days have been allocated to maritime security patrols to accomplish national security objectives. The current Memorandum of Understanding (MOU) between DND and the Department of Fisheries and Oceans (DFO) calls for 155 frigate sea days per year, and an option of up to 50 additional frigate sea days for the DFO “Increased presence” operations to control fishing by foreign vessels in the Northwest Atlantic Fisheries Organization  (NAFO) Regulatory Area. Finally, the current MOU between DND and the Royal Canadian Mounted Police (RCMP) calls for up to 20 sea days per year, and the MOU includes a protocol for accommodating demand beyond this level.

Sustaining the navy’s operational focus is fundamental to achieving the Maritime  Command mission. The navy will continue to implement a Materiel Readiness  Transition Plan to ensure that materiel support and its associated management structure are fully integrated into the naval Readiness and Sustainment framework. Revision of the Naval Materiel Support Planning process will continue to meet the needs of the new Readiness and Sustainment concept and to ensure that it is fully integrated into the Readiness and Sustainment Management Framework. The Readiness and Sustainment Management Framework and the Naval Materiel Support Planning process will be fully aligned by April 2008.

It is becoming crucial for Defence to modernize the naval fleet. The Single-Class Surface Combatant (SCSC) project, which will result in a warship to replace both the Iroquois-class destroyer and the Halifax-class frigate, must be firmly established to address the fleet’s obsolescence problem.  The Joint  Support  Ship (JSS) project is critical to replacing the aging Auxiliary Oiler Replenisher with a more capable vessel providing both fleet and joint support.   This project needs to continue definition with the objective for implementation approval no later than the end of 2008.

In accordance with government direction, the navy will also place high priority on conducting an initial options analysis on the development of an Arctic/coastal patrol capability. As further strategic direction is provided, resources will be reallocated to move ahead with detailed options analysis and initiatives.

Generate and Sustain Forces Capable of Land Effects

Land Forces Command (LFC) will generate and maintain combat effective, multipurpose land forces to meet Canada’s defence objectives in accordance with the “whole of government” approach.

LFC will use the successes of today’s army to revise its strategy and develop, generate and sustain the Canadian Forces for tomorrow’s land operations. The revised strategic objectives will focus on institutional development, planning, and resource alignment through the Army Five-Year Plan and the Strategic Operations and Resource Direction in a unified framework that links ends to ways and means. This planning process will ensure that the army remains capable of responding to conventional and asymmetric threats both in Canada and abroad.

LFC will continue to produce a combat-effective, sustainable army that delivers focused, integrated land effects across the full spectrum of conflict, and that is strategically relevant, operationally responsive and tactically decisive. The four main themes of the LFC program, which directly contribute to the 2007–2008 Defence Priorities, are:

  • Sustainable provision of effective land forces for domestic and international operations;
  • Expansion  of Regular Force by 814 person years (PY) to an establishment strength of 20,765 PY. Reserve Force will grow by approximately 650 soldiers to sustain an average paid strength of 17,300 PY.
  • Land Forces Transformation within the framework of CF Transformation; and
  • Sustainment of infrastructure and equipment.

Contributing to the CF Integrated Managed Readiness Plan, the Army Managed Readiness plan will continue to provide a disciplined, predictable framework for training, personnel employment and resource expenditure. The army’s goal is to generate task forces for two simultaneous lines of operation, although sustaining the current level of operational commitment in Afghanistan until at least February 2009, will present significant personnel challenges. In fact, the current Land Forces commitment in Afghanistan means that Defence can sustain only one line of operation.

To meet the challenges of training an accelerating flow of new soldiers, LFC will enhance its training systems and develop initiatives to increase their capacity. The Training Capacity Enhancement Program and Individual Training Capacity Backfill will accomplish four primary objectives:

  • expand the force;
  • reduce the requirement to augment the training institutions with field-force3 personnel;
  • reduce the demand for skills training at unit level; and
  • add crucial realism to soldiers’ training.

LFC’s operational realities will force the army to move toward two mission streams based on combined arms teams. The integrated and complementary structures of the Regular and Reserve Forces permit the effort to be distributed as follows:

  • expeditionary operations conducted by Regular Force formations augmented by the Reserve Force; and
  • domestic operations conducted by Reserve Force formations augmented by the Regular Force.

Contributing to international security and stability, the Regular Force will be restructured into cohesive Affiliated Battle Groups4 operationally focused on mid-intensity, full-spectrum operations in failed and failing states. The initial trials with the first Affiliated Battle Group will begin during the fall of 2007, when the task force then deployed in Afghanistan returns. Force development work in support of a concept of territorial defence battalion groups regionally distributed across the country will lead to the establishment of initial cadres in six urban locations fiscal 2007-2008, with an expanded capability in fiscal 2008-2009. This initiative will support the Government of Canada’s Canada First policy by creating a coordinated domestic response capability across the country.

Force protection will always be crucial to operational success. LFC will improve the protection of our soldiers on operations with leading-edge technology, fielding a new fleet of armoured patrol vehicles and improving the survivability of the deployed fleets.

Force sustainability will be achieved by balancing elements of the field force and the institutional army (command and control, training and support). Although improvements have been achieved through investment in factors such as infrastructure, garrison support and environmental oversight, sustainment of the entire institutional army is increasingly expensive and there are still sizeable gaps between the current state and the desired end state. LFC has reached the limit of its ability to generate flexibility through internal reprioritization of resources, and will require additional funding to sustain Land Forces responsibilities.

Working through the challenges posed by our level of commitment to operations that are increasingly complex, LFC will continue to act as the CF centre of excellence for land-centric capabilities, at both the operational and tactical levels, in order to shape CF force development and force generation within a modern CF force-employment concept. Since land operations are not limited to Land Forces personnel, the CF as a whole must continue to work toward achieving a higher standard of interoperability and training validation.

To this end, the Army Learning Process provides a mechanism for achieving institutional change based on valuable observations and recommendations from operations. Defence will benefit from the Land Force operational experiences, both positive and negative, that enable rapid adaptation to the challenges of today’s ever-evolving operating environment.5

Generate and Sustain Forces Capable of Aerospace Effects

The CF vision is enabled by aerospace power and embodied in the strategy and transformation of the Canadian air force.  Canada needs a multi-role, combat-capable air force to defend our sovereignty, control our airspace, provide surveillance of our vast territory, respond to domestic emergencies, provide protection to North American aerospace and contribute to integrated Canadian Forces operations abroad. For the coming year and beyond, much effort will focus on planning for the arrival and integration of new aircraft. The air force will be pursuing an aggressive schedule of recapitalization and development of new capabilities during a period of high operational and personnel tempo and at a time when the trained effective strength of air force-specific military occupations is below required levels.

To recover the health of under-strength occupations and to generate and sustain forces capable of aerospace effects, the air force will increase intake in certain occupations, increase investment in air force training establishments to meet higher production requirements, and continue to explore innovative, affordable intake and training opportunities. Improved re-enrolment and component-transfer processes will also be explored with the appropriate departmental stakeholders; for example, a Tiger Team has been created to develop an air force personnel strategic plan. The effect to be achieved is the timely delivery of highly capable, well-motivated, professionally trained and educated airmen and airwomen to the right place at the right time to conduct aerospace operations in support of the Canadian Forces mission.

The air force will continue to generate and deliver aerospace power to the CF by delivering accurate combat firepower and acting as a deterrent in engagements. The modernized, multi-role capability of the CF-18 Hornet fighter aircraft armed with precision-guided munitions will protect Canadian troops. The air force will also conduct Intelligence, Surveillance and Reconnaissance (ISR) through the co-ordinated employment of unmanned aerial vehicles (UAVs) and modernized CP-140 Aurora long-range patrol aircraft, and will provide airlift mobility with CC-130 Hercules tactical transports, CH-146 Griffon tactical helicopters, and CC-150 Polaris strategic transports. Airlift mobility will be enhanced over the next few years with the announced acquisitions of new medium- to heavy-lift helicopters, new tactical and strategic transport aircraft. Delivery  of the first two C-17 GlobeMaster III aircraft is planned for August 2007, with the last two of these aircraft to be delivered by April 2008.

To make rapid capability development possible, the air force has created the Canadian Forces Aerospace Warfare Centre as an important means to achieve air force transformation. They will work closely with other centres and deployed forces to develop aerospace power doctrine, explore new concepts, and make best use of lessons learned to improve aerospace power. The air force will also employ new technologies, such as satellites, to deal with asymmetric threats and for beyond-line-of-sight communications.

The air force is transforming into an expeditionary air force to better respond to the force employment requirements of Commanders Canada COM, CEFCOM, CANSOFCOM and CANOSCOM, and will continue to participate in operations, both at home and abroad.  It will provide this capability, fully integrated with the other components of the CF, in combination with allied and coalition forces and/or with partners in Canadian government organizations and other agencies.  In addition, the air force will formalize the composition of its contribution to deployed operations under the Expeditionary Air Force construct composed of Air Expeditionary Units (AEU).

The Combined Forces Air Component Command (CFACC) will force generate Air Expeditionary Units (AEUs) consisting of a command and control element, Tactical Self-Sufficient Units (TSSUs) delivering air power, a Mission Support Squadron (MSS) delivering integral and close support, and an Operational Support Squadron delivering operational oversight and force protection.  TSSUs will be formed based on delivering one or more capability packages to contribute to the following aerospace lines of operations:  Aerospace Control and Strike (CF188 Hornets); tactical helicopters will be replaced by future medium- to heavy-lift helicopters; Airmobility (CC177 Globemaster III, CC150 Airbus, CC130 Hercules); and Intelligence Surveillance and Reconnaissance (CP140 Aurora and future UAVs). In addition, other AEUs may be used to project aerospace power for a mission-specific task force. These task forces will be employed within the Canadian Expeditionary Force Command.

Building on experience gained in 2004 through the operational employment of tactical UAVs in Afghanistan, the air force will increase the use and expand the roles of that capability. New technologies have improved UAVsto a point where Defence can use their capabilitiesto complement existing surveillance platforms to provide improved ISR. Automated target recognition software will assist UAV operators as they cue other platforms, such as the modernized Aurora long-range patrol aircraft. The air force will continue to investigate other surveillance technologies, including enhancements to the North Warning System and the replacement of the obsolete Tactical Control Radars.

Joint, National, Unified and Special Operations Forces

The Canadian Forces Joint Headquarters (CF JHQ) will continue to serve as the deployable element of CEFCOM by providing an integrated, standing, high readiness and rapidly deployable command and control asset, that plans, reconnoitres and executes CEFCOM tasks utilizing Environmental Chief of Staff generated and assigned forces.

The Canadian Special Operations Forces Command (CANSOFCOM) will create a standing integrated force that generates a broad spectrum of agile special operations capabilities at high readiness. CANSOFCOM provides force elements, including trained civilians as well as military personnel, with the following capabilities: joint command and staff work, counter-terrorism operations, deployable command, control, communications, computers and intelligence (C4I) systems, geomatics, intelligence, counter-intelligence, military engineering, and space-based imaging operations. Its comprehensive and autonomous nature ensures that it can respond immediately to threats at home and abroad. CANSOFCOM can immediately integrate with key departments, operational commanders and allied forces, and its special operations forces can sense and engage threats effectively both at home and abroad. Constant situational awareness is maintained by embedding liaison officers not only with parallel CF organizations but also with the armed forces of Canada’s allies.

The Nuclear, Biological and Chemical (NBC) Defence Company is expanding, and will be given the facilities it needs to provide the Government of Canada with the expertise and equipment to counter NBC threats domestically and internationally. CANSOFCOM will continue to develop the Canadian Special Operations Regiment and Joint Task Force 2, and will thus realize the vision of highly effective, responsive and agile special operations forces to counter terrorist, NBC and other threats to Canadians and Canadian interests wherever they may be.

To expand its support to deployed operations, CANSOFCOM will develop an ability to deploy high-readiness interoperable, combined and joint special operations forces, and continue to develop programs and initiatives to improve the provision of direct support to operations.

The air force will continue to maintain the capability to provide aerospace forces for contingency operations, including tactical fighter aircraft, tactical transport aircraft, tactical aviation, maritime helicopter and maritime patrol aircraft.

The SJS will determine, in consultation and coordination with Canada Command, VCDS, and the force generators, the activity levels (sea days, etc, and associated readiness states) that will be made available to Canada Command for tasking and deployment, for both international and domestic operations.  These readiness levels and their associated forces will serve as initial planning guidance and will form the basis for revised tasks in the Defence Plan 07. 

Long-Term Strategic Plan for Joint Collective Training

To maintain constant operational readiness of special force elements, the CF will develop the necessary training and force generation expertise and capacity to sustain special forces in the most effective and efficient manner. Training will be monitored and standards measured in order to maintain high standards and to ensure appropriate accountability. Likewise, expertise related to Chemical, Radiological, Biological and Nuclear (CRBN) operations needs appropriate force generation capacity and accountability.

The Strategic Joint Staff has formed a Directorate of Training and Lessons Learned with the following core functions:

  • synchronization and integration of joint and interagency training;
  • design, development and conduct of exercises that involve strategic planning and crisis action planning; and
  • management of the Strategic Exercise and Experimentation Reserve (SEER) to support joint and interagency collective training.

The following products have been generated in support of these objectives:

  • The CF Integrated Training Plan (CF ITP) 2006, incorporating a long-range automated exercise schedule; and
  • The CF Collective Training and Exercise Guidance 2006-2007, detailing specific collective training objectives and training guidance for the transformed CF command structure.

The following bodies support the development of the CF ITP:

  • The CF ITP Working Group to conduct the detailed development of the ITP; and
  • The CF Integrated Training Board to conduct a strategic review, editing and endorsement of the ITP and associated strategic guidance documents.

Military Human Resources

To meet military human resource requirements for operations and other defence tasks, the Canadian Forces recruits people from the civilian population; acknowledges and formally recognizes their previous training, education and documented work experience when appropriate; and gives them the training and development they need to become operationally functional. Bringing recruits to the point of operational employability involves a variety of training, experience and educational opportunities designed to increase their skills and knowledge in both the profession of arms and their specific occupation. Some military occupations require on-the-job training after formal training, while others require a formal, specified period of training consolidation and experience. It can take up to seven years, for example, to train an officer to the operationally functional point.

Direct Support to Operations

From the military human resources perspective, direct operational support has two components: health services in the form of medical personnel and equipment, and personnel support in the form of morale and welfare programs for the members of deployed units.

Health Services

Medical personnel and equipment are provided to ensure that sick and injured CF members receive appropriate care as effectively and efficiently as possible. Treatment is delivered as early in the evacuation chain as possible, and patients are evacuated only as far back in the chain as is absolutely necessary.

Shortages of military medical personnel have a direct impact on the ability of the CF to maintain in-theatre care for long periods. The Canadian Forces Health Services Group, which is the designated health-care provider for Canada's military personnel, is currently responsible for the field hospital at Kandahar Airfield in Afghanistan. The Canadian Forces Health Services Group must, therefore, generate enough deployable personnel to sustain the medical element in Afghanistan in support of Canadian Forces troops.

The short-term solution is to hire more civilian medical personnel on contract for in-garrison support and thus permit the maximum number of CF medical personnel to be deployed, and to deploy civilian medical professionals into operational theatres for short periods to augment medical capability. In the longer term, the Rx 2000 project is addressing this issue through its attraction and retention initiative. Other efforts include broadening the eligibility criteria for the Military Medical Training Plan and working with the Canadian Medical Association to recruit foreign-trained doctors who can meet Canadian medical qualifications within a year or two.

Morale and Welfare Programs

Morale and welfare programs for deployed forces are delivered by the Canadian Forces Personnel Support Agency (CFPSA) usually through the provision of amenities such as newspapers, magazines and DVDs. Task Force Afghanistan is an exception, and for that mission CFPSA conducts an active morale and welfare program with about 60 specially trained staff deployed to the theatre of operations. In addition to the usual amenities, in Afghanistan CFPSA provides fitness and recreation programs, travel services and retail outlets.

Force Expansion

Recruiting

The Canadian Forces continue to build and sustain training capacity to meet the requirements of force expansion. The Canadian Forces Recruiting Group is changing its organizational structure and streamlining its recruiting, processing and management processes to ensure that its resources are applied more effectively. These adjustments will make the recruiting system more responsive, and improve the level and quality of recruiters’ services both to applicants and the CF. Initiatives planned for fiscal 2007–2008 include:

  • Development of performance measures for candidate attraction;
  • Implementation of a monitoring system to keep track of applicants and ensure timely processing of documents;
  • Establishment of a permanent Recruiting Training Centre to give recruiters the knowledge and skills they need to attract and select suitable candidates;
  • Implementation of central management of e-mail and telephone contacts with prospective applicants;
  • Implementation of a pilot “hub and spoke” project at the Winnipeg Recruiting Centre with several CF Recruiting Teams made up of mobile teams augmented by small storefront locations; and
  • Contracting out part of the reliability screening to speed up processing of applications.

Training

The recruit’s first stop in the CF training and education system is the Canadian Forces Leadership and Recruit School (CFLRS), which has received the resources required to conduct basic military qualification training in accordance with the Strategic Intake Plan for fiscal 2007–2008. After basic military qualification training, recruits advance to military occupation training and common professional development. Several current initiatives that assist in meeting expanded production targets will be continued in fiscal 2007–2008:

  • Augmentation of training cadres through employment of Reservists and, where appropriate, outsourcing to civilian training providers;
  • Use of distributed learning, including courses that combine residential and distance learning to increase training with minimal infrastructure, expand throughput, and reduce time away from home;
  • Evaluation of course content against operational needs to ensure that only essential training and education is delivered; and
  • Implementation of the Military Civilian Training Accreditation Program to facilitate the transfer of credits from civilian to military schools, and recognition of civilian qualifications and thus reduce military training costs and encourage CF members to direct more of their own personal and professional development.

Although the resources are in place to recruit and train the high influx of recruits expected during fiscal 2007–2008, force expansion still faces risk in two areas:

  • ability to address shortages in critical military occupations; and
  • lack of flexibility to program training flow.

Critical military occupations

Despite numerous recruiting and retention efforts, several military occupations are still critically short of personnel. For a variety of reasons, recruiting and retention in some of these military occupations will remain problematic for some time. While the pool of potential applicants to the CF is growing, so is the range of job opportunities available to each person in that pool. The resulting stiff competition for human resources is exacerbated for some occupational groups by the high academic and medical standards of the CF, and shortages of certain skill sets in Canadian society.

To bring these critical military occupations up to strength, the Canadian Forces offer an array of entry programs, subsidized education opportunities, signing bonuses, and occupational transfer opportunities for serving members. Furthermore, the number of component transfers between the Reserves and the Regular Force is increasing, and more officer candidates are being accepted through the direct-entry program. The recruiting effort targeting physicians and pharmacists is a good example of these efforts; experienced recruiting officers work full-time on these occupations with help from serving CF health professionals. The recruiters approach practising doctors and pharmacists as well as students, interns and residents, offering incentives such as subsidized education for those still in school and signing bonuses for licensed professionals.

Intake estimates indicate that current recruiting programs will not be enough to bring many critical military occupations up to strength within two years. Without sufficient recruiting in certain critical military occupations, the Canadian Forces will not be able to conduct operations with optimum effectiveness.

Programming training flow

The Canadian Forces’ real-time recruiting approach has a direct effect on the flow of the training program. Some years ago, the system changed from “just-in-time” recruiting, in which applicants were enrolled just before their course started, to “real-time” recruiting, in which applicants are enrolled as soon as possible to prevent loss of qualified candidates during the lag between completion of the recruiting process and the enrolment offer. Real-time recruiting brings the applicants into the CF, but it does not produce what the training system needs to operate efficiently: a flow of recruits programmed to arrive at training and education establishments for basic military qualification and occupational training when the schools are ready to receive them. The schools have capacity constraints, such as availability of suitable instructors, and infrastructure limitations, such as the availability of classrooms, laboratories, simulators, ranges and training areas.

The result of real-time recruiting is a backlog of personnel awaiting training (PAT)s who must wait until their schools accumulate enough students to run the course they need. All efforts are made to reduce the time they spend waiting, including the conduct of some courses below minimum student load or sending students on other courses they need in the meantime. The Post-Recruit Employment and Training Centre, which temporarily assigns PATs to bases and wings across Canada, allows the schools to focus on running courses and maximizes recruits’ training and employment opportunities so they spend their time awaiting military occupational training much more productively.

The Chief of Military Personnel will monitor the risks associated with force expansion by tracking progress against the Strategic Intake Plan, the number of PATs and schools’ capacity to deliver basic and advanced training, and adjust policies and programs accordingly.

Reserve Force

The Reserve Forces is composed of CF members who are enrolled for service other than continuing, full-time military service. The Reserve Force is divided into four sub-components:

  • the Primary Reserve;
  • the Supplementary Reserve;
  • the Cadet Instructor Cadre; and
  • the Canadian Rangers.

Primary Reserve

The role of the Primary Reserve is to augment, sustain and support deployed forces and, in some cases, perform tasks that are not performed by Regular Force members. The CF are continuing to explore ways to enhance the role of the Reserves in civil preparedness to respond to natural disasters and local emergencies.

The Primary Reserve structure includes the following:

a. Naval Reserve

The Naval Reserve provides highly trained, combat-capable sailors for the ships’ companies of the navy’s Kingston class maritime coastal defence vessels and for coastal operations. Coastal operations include roles distinct to the Naval Reserve, such as port security, and naval co-ordination and advice to shipping, as well as shared roles, such as mine countermeasures and intelligence. The total strength of the Naval Reserve stands at 4,250 of all ranks. Defence expects the Naval Reserve to reach its approved strength ceiling of 5,100 by 2015. The CF have invested in recruiting, training, long-term retention, leadership, management and public affairs initiatives for the Naval Reserve to ensure its long-term viability.

b. Army Reserve

Canada’s Army Reserve

(Militia) is organized in 130 units in 110 cities and towns across the country. The roles of the Army Reserve are to provide the framework to mobilize, augment and sustain the Regular Force and serve as a link between the military and civilian communities.

The Land Force Reserve Restructure (LFRR)’s mission is to develop an effective and credible Army Reserve that is complementary and supplementary to the Regular Force and relevant to the needs of the nation. LFRR is a two-phase process. While Phase 1 focused on stabilizing and testing new capabilities, Phase 2 will focus on change and growth. The CF plan is to increase the paid strength of the Army Reserve to 17,300 from its current strength of 16,650 by fiscal year 2007-2008. Expansion of Regular Force by 814 person years (PY) to an establishment strength of 20,765 PY. Reserve Force will grow by approximately 650 soldiers to sustain an average paid strength of 17,300 PY.

Within the context of the Army Strategy, both the Regular and the Reserve components will go through significant change in the upcoming year, to streamline and improve force generation. For the Army Reserve, this effort will significantly increase its force generation responsibilities, both in terms of depth (by providing reinforcement) and of breadth (by providing unique capabilities not available in the Regular component, such as chemical, biological, radiological and nuclear response; civil-military co-operation; and psychological operations). The CF will conduct an Army Reserve Establishment Review to allocate growth to areas where there is the greatest requirement.

c. Air Reserve

The air force has been an integral part of defence planning throughout the history of the air force. The air force has integrated the highly trained men and women of the Air Reserve into total force units with a single chain of command that supports all aspects of air force operations. Currently, the total strength of the Air Reserve stands at approximately 2,300 personnel in all ranks. The integrated air force structure means that air reservists are readily available for the day-to-day operation of the CF. Air Reserve members are now serving in many of the newly established command organizations, helping to ensure the effective integration of reservists into the new CF structure.

d. Communication Reserve

The Communication Reserve is mandated to generate forces and sustain combat-capable communication and information systems (CIS) elements and information operation support elements to augment deployed operations and strategic missions at home and abroad. The Communication Reserve is also providing CIS support to Army Reserve training activities. The Communication Reserve recently created a reserve Communications Research Operator occupation to better support CF EW/SIGINT operations. Occupational training began in 2006 at the CF School of Communications and Electronics at Canadian Forces Base (CFB) Kingston. Senior communications research personnel will be employed in key headquarters to provide continuing occupational oversight and guidance. The Communication Reserve will continue to focus on centralized training locations, currently CFB Kingston for occupational training and CFB Shilo for recruit and leadership training.

e. Health Services Reserve

The Health Services Reserve is heavily involved in both sustainment and the change agenda within the CF Health  Services Group. The Health Services Reserve have been organized into two functional groups: Primary Reserve units known as Field Ambulance units, and the CF Health Services Primary Reserve List. Field Ambulance units train personnel to support, augment and sustain CF Health Services Group elements on operations, and to provide health services support to their affiliated Canadian Brigade Group. The members of the Health Services Reserve, primarily clinicians, augment a variety of Health Services organizations on operations and in clinics in Canada.

Priorities for the Health Services Reserve in fiscal 2007-2008 include:

  • Prepare the plan to position the Health Services Reserve units and the Primary Reserve List to support the forthcoming changes that will arise out of the Canadian Forces Health Services Group Field Force Review. This will include changes to unit Organization and Establishment designed to amplify the Group's ability to meet its operational health services commitments for both domestic and international requirements; and
  • Complete the Military Occupational Structure Analysis, Redesign and Tailoring (MOSART) process for the Health Services Reserve with the aim of enhancing the recruitment of clinicians with civilian skill sets thereby bringing a much greater depth to our support capability.

f.    Judge Advocate General (JAG)

Reserve Force legal officers are held on the JAG Primary Reserve List (PRL). They are employed on “Class A” and “B” service conducting duties as military prosecutors, defending officers and military legal advisors to JAG clients. The JAG manages their careers.

The Environmental  Chiefs of Staff (Maritime, Land and Air) command their respective Reserve elements, and the Assistant Deputy Minister (Information  Management) controls the Communications Reserve. Reserve Health  Services personnel are under the control of the Director General of Health Services.

A major challenge facing Defence continues to be to recruit a total of 10,000 new reservists as identified in Budget 2006. Senior representatives from the Primary Reserve are working with the Chief of the Defence Staff transformation team, ensuring that the Reserves are considered in every aspect of transformation.

Supplementary Reserve

The Supplementary Reserve is composed of personnel with previous military service who could be recalled for military service in an emergency. Members of the Supplementary Reserve may serve on a voluntary basis, but are not required to perform any duty or training except when placed on Active Service.

Cadet Instructor Cadre

The Cadet Instructor Cadre (CIC) is a sub-component of the Reserve Force, consisting of officers who have undertaken, by the terms of their enrolment, to perform such military duty and training as may be required of them. It consists of officers whose primary duty is the supervision, administration and training of cadets 12 to 18 years of age. They ensure the cadets’ safety and welfare while developing in them the characteristics of leadership, citizenship, physical fitness and stimulating an interest in the CF.

Canadian Rangers

The Canadian Rangers provide a military presence in sparsely settled, northern, coastal and isolated areas of Canada that cannot be covered by other elements of the CF. Their main task is to assist in the maintenance of Canadian sovereignty. The objectives for fiscal year 2007-2008 include:

  • conducting up to 30 Ranger Sovereignty Patrols during the year in accordance with the Joint Task Force North (JTFN) surveillance plan;
  • standing up and maintaining the necessary equipment and support personnel to form the infrastructure of a JTFN rapid reaction capability in accordance with the Campaign Operation Plan. This structure must be capable of deploying within 24 hours of notification, and be sustainable for up to four days;
  • conduct at least one enhanced sovereignty patrol to a vulnerable area of the Arctic Archipelago in accordance with the JTFN surveillance plan;
    • conducting North Warning System security patrols; and
    • given the appropriate personnel resources, raising the total number of Ranger patrols in the JTFN area of responsibility to 60 and Junior Canadian Ranger patrols to 34.

The following table identifies the planned increase in the Reserve Force for the next three years.


Reserve Planning Strength


 

Actual 2006–2007 Planned 2007–2008 Planned 2008–2009 Planned 2009–2010
Primary Reserve1

24,000

24,750

24,800

25,500

Suppl Res2

N/A

N/A

N/A

N/A

CIC

7,403

7,500

7,500

7,500

CA Rangers3

4,274

4,365

4,525

4,685

Total

35,677

36,615

36,825

37,685


Source: Vice-Chief of the Defence Staff – Chief of Programme

Notes:

  1. Current fiscal framework allows CF to increase the Primary Reserve Average Paid Strength up to 26,000 by end of FY 11/12. Primary Reserve reporting, planning and allocations is based on an Average Paid Strength derived from monthly reports provided by DSFC/DFECS. FY 07/08 includes expansion target of 650 additional reservists allocated to Land Force Reserve Restructure initiative. Source Chief of Programme.
  2. The strength of the supplementary Reserve cannot be planned with a reasonable degree of accuracy, since it is a holding list that varies significantly with attrition and transfers within the CF. Source CMP.
  3. CA Rangers will be expanded up to 5,000 Average Paid Strength by end of FY 11/12. Source Chief of Programme.

Current Reserve Initiatives

  • Canadian Forces Liaison Council

Currently, reservists make up 13% of DND's deployed strength abroad, including one in seven soldiers in Afghanistan. The CF Transformation and anticipated commitments in international operations suggest that this rate of reservists' participation in operations will be maintained, if not increased, under the new Integrated Managed Readiness System.

Because Canada has no legislated job protection for voluntary service, the 45% of reservists with civilian employment and the 40% of reservists who are students depend on the voluntary support of employers and educational institutions to carry out their military duties.

The Canadian Forces Liaison Council (CFLC) seeks to increase the support of organization leaders in Canada to enhance the availability of reservists for training and operations. Through sponsored military visits, local unit employer support events, professional and community organizations involvement and employer awards and recognition activities, the CFLC reaches a large number of employers and educational institutions on behalf of reservists in order to obtain a leave of absence from their employment or studies.

Civilian Human Resources

  • Defence must attract and retain the number and mix of qualified civilian personnel it needs to support the CF. The Assistant Deputy Minister - Human Resources (Civilian) has identified the following challenges and priorities for fiscal 2007-2008:
    • Respond to CF needs, priorities and operational imperatives,
    • Optimize existing flexibilities for maximum efficiencies and return on investment (e.g. put the right person in the right place at the right time),
    • Aggressively pursue technological improvements that will optimize our workforce and streamline work processes,
    • Manage knowledge and professional development to ensure that Defence develops a versatile, innovative civilian workforce that positions the department for future change and challenges, and
    • Foster a healthy workplace that promotes equitable treatment and respect in a diverse, bilingual environment.

HR Processes and Service Delivery 

Technology will continue to be the primary catalyst of rapid change and re-engineering of human resource business processes at DND. Opportunities for business transformation will flow from the departmental initiative to implement PeopleSoft version 8.9. These changes will enhance service delivery and facilitate new ways of doing business through such innovations as self-service arrangements for both managers and employees.

A 2003 Memorandum of Agreement between Treasury Board and bargaining agents outlines the allowances and benefits, payable to Public Servants deployed on CF operations outside Canada. The Assistant Deputy Minister – Human Resources (Civilian) (ADM(HR-Civ)) administers this benefit program and ensures deployed employees are compensated in accordance with applicable policies. As more Defence civilians are deployed on CF operations, ADM(HR-Civ) will administer the appropriate benefits equitably.

Workforce Renewal

Recruitment strategy

DND is responsible for managing a civilian workforce of the right size and mix of skills and diversity of backgrounds to achieve its mission of support to the CF.

ADM(HR-Civ) has developed a recruitment strategy that focuses on facilitating the intake of civilian employees to groups that are critically short of staff, such as Computer Systems (CS), General Labour (GL), Ship Repair (SR), Ship Operations (SO), Purchasing and Supply (PG) and Engineering (EN). This strategy takes a two-pronged approach that includes enhancing communications products and tools, and implementing an outreach program aligned to needs identified through HR planning.

Apprenticeship 

A national apprenticeship framework is being developed to identify a consistent approach to hiring, training and compensating apprentices. The program will include the development of entry-level recruitment strategies, national outreach and collective staffing activities, defined trade-skills requirements from entry to graduation, and collective work descriptions for apprenticeship positions.

A project plan is currently being developed to implement the four recommendations identified in the Departmental Apprenticeship Study. Research is currently underway to examine current policies and practices across the federal government. The apprenticeship framework will be developed and implemented in stages, with full implementation by fiscal 2008–2009.

Retention strategy

ADM(HR-Civ) will use quantitative and qualitative analyses of the results of the 2005 Public Service Employee Survey, diversity climate surveys, and retention focus groups to identify retention issues, especially problems arising from workload and work-life balance, career development and learning, harassment, violence and discrimination, official languages, diversity and employment equity, labour-management relations, and employee engagement. The objective is to develop a horizontally oriented retention strategy.

Executive cadre management

ADM(HR-Civ) is responsible for the HR management of the Defence civilian executive cadre. This function includes the provision of national level HR planning, classification, resourcing, and performance management support services for the executive community. The main challenge expected during fiscal 2007–2008 will be the approval and implementation of a community management framework for executives.

Knowledge Transfer and Professional Development

Treasury Board Policy on Learning, Training and Development 

In its application of the Treasury Board policy on learning, training and professional development, ADM (HR-Civ) will emphasize continuous learning and the development of individual learning plans for each civilian employeeof Defence. All training the policy identifies as “required” will be monitored and reported to the Public Service Human Resources Management Agency of Canada.

“Defence professionals”

It is increasingly evident that the size, scope and complexity of Defence present managers and executives with unique challenges that should be addressed through tailored professional development programs focussed on departmental priorities both at the executive level and among groups that feed the executive cadre. ADM(HR-Civ) will continue to elaborate the Defence Professional concept to include products, programs and frameworks designed to ensure a high standard of shared knowledge, skills and abilities among managers and executives.

Joint Military-Civilian Initiatives

Alternate Dispute Resolution

The aim of Alternate Dispute Resolution (ADR) training and services is to provide leaders at all levels with the skills required for dealing with complaints positively so they can be resolved as quickly as possible and at the lowest possible level. Retention of CF members and Defence civilians is strongly influenced by the methods used to resolve complaints. The forecast for fiscal 2007–2008 includes the following points.

  • Promotion of ADR: The conduct of some 500 ADR briefings, meetings, presentations and kiosk information sessions;
  • Training in ADR: The conduct of more than 500 training sessions using both the “Resolving Conflict Effectively” course and training tailored to specific needs; and
  • Interventions in ADR: The conduct of more than 1,400 ADR consultations, conflict coaching sessions, mediations, facilitations, group-needs assessments, and group interventions.

Planned Capital Acquisition

Consistent with the "Canada First" defence strategy, the key focus in fiscal 2007-2008 will be investment in core capabilities to ensure that transformation and modernization of the CF continues at an accelerated pace. A long-term capital investment plan will follow in due course. In the interim, the many projects already in various stages of development are consistent with the direction to be set in the defence strategy. The following major projects, which indicate this direction, will be progressed during fiscal 2007-2008.

Joint Support Ship

This critical project will replace the aging Auxiliary Oiler Replenisher class with a vessel capable of supporting not only other ships, but also land and air forces operating from those ships. The Joint Support Ship Project, currently in the definition phase, will deliver the first of three multi-role vessels in 2012. The project is on schedule, and two industry teams are developing proposals for preliminary ship design, project implementation plans, and an in-service support plan. These plans will be evaluated, and the team that produces the better plan will be selected to execute the project. Formal effective project approval will be sought in 2008.

Airlift Capability Project - Strategic

The Airlift Capability Project - Strategic, which received effective project approval from Treasury Board on June 22, 2006, will provide the strategic (i.e., long-range) transport aircraft the Canadian Forces require for domestic and international operations. These "off-the-shelf" (i.e., commercially available) aircraft are intended to maximize CF strategic airlift and interoperability with Canada's allies. It will be capable of flying into hostile environments and delivering cargo and personnel directly to operational theatres. Delivery of the first two aircraft is planned for August and October 2007 and the last two of these aircraft to be delivered by April 2008.

Airlift Capability Project - Tactical

The Airlift Capability Project - Tactical, which received preliminary project approval from Treasury Board on June 22, 2006, will provide the tactical transport aircraft the Canadian Forces require for domestic and international operations. These aircraft must be able to operate over hostile terrain anywhere in the world, flying in harsh weather from unpaved, blacked-out airfields with no support facilities. Seventeen aircraft that meet Canadian aviation certification standards by the contract award date are to be delivered within 60 months of contract award, and the first aircraft must be delivered within 36 months of contract award.

Medium- to Heavy-Lift Helicopter Project

The Medium- to Heavy-Lift Helicopter Project, which received preliminary project approval from Treasury Board on June 22, 2006, will provide the CF with rotary-wing aircraft capable of moving troops and equipment safely and effectively in low- to medium-threat environments in Canada and abroad. All 16 aircraft to be acquired under this contract must meet Canadian aviation certification standards by contract award date. The first aircraft must be delivered within 36 months of contract award, and the last aircraft must be delivered within 60 months of contract award.

Medium Support Vehicle System

The Medium Support Vehicle System (MSVS) project will replace the current in-service medium truck capability that has reached the end of its service life. This project will provide operational Army, Reserve, Air Force and Joint units with the capability of transporting combat troops, tactically transport cargo and equipment, and to perform various support functions (medical/dental, engine repair, communication equipment repair, optics repair, weapons repair etc.). Up to 1,500 Standard Military Pattern vehicles, with 300 trailers and associated armour protection kits will be procured. An additional 800 Military Commercial Off-the-Shelf vehicles will also be acquired. The MSVS project received preliminary project approval from the Treasury Board on June 22, 2006. Now in its definition phase, it is anticipated that the project will receive effective project approval in fiscal 2007-2008 with contracts awarded to industry in the same year.

Integrated Command and Control System

A key part of CF Transformation, the Integrated Command and Control System (IC2S) Project will be the basis of the continued evolution of the CF from a platform-centric force to a force enabled by information superiority. The primary aim of the IC2S Project is to develop and implement a command and control information system for the entire CF that will permit effective conduct of all phases of operations in the global security environment of the future. To achieve this aim, the IC2S Project will achieve the following objectives:

  • Integrate existing classified CF command and control capabilities into a seamless secure, reliable core command and control information system for the entire CF;
  • Link the CF command and control information system with other information capabilities at the tactical level in the CF, at DND and other Canadian government departments, in allied nations, and with public systems;
  • Implement new capabilities that enable users of the CF command and control information system to conduct tasks in support of the four DND/CF core functions (command operations, conduct operations, generate and sustain operations and deliver intelligence to support operations); and
  • Implement new capabilities to increase the reliability, survivability and maintainability of the CF command and control information system.

The IC2S project will be seeking preliminary project approval during fiscal 2007-2008.

Halifax-Class Modernization (HCM)

The backbone of Canada's navy, the Halifax-class frigates are approaching mid-life and, consequently, require updates not only to ensure their continued operational viability but also to ensure the bridge to the fleet of the future. Modernization of the HALIFAX class frigates, incorporating the Frigate Life Extension (FELEX) project, the standalone strategic and non-strategic capital projects as well as the National Procurement funded betterment projects, will continue under the umbrella of the HCM project. Definition work on several of these projects, including FELEX, Radar and C2 Upgrades are progressing at this time. The HCM project will seek expenditure approval during fiscal 2007-2008.

Materiel Acquisition and Support Information System (MASIS)

The MASIS Project is delivering an enhanced enterprise asset management capability with a focus on the acquisition, in-service life, and disposal of equipment and weapon systems. It is replacing a large number of stand-alone information systems and introducing a common set of integrated and unified business processes across the Department and the Canadian Forces. Phase 4 of the Project rolled out the capability to the Navy. Phase 5 will deliver to the Army and Air Force, as well as other users. MASIS also represents the foundation piece for the Department's strategy for Enterprise IM Systems convergence and integration.

Directorate Omnibus Mounted Soldier Survivability Project (DOMSSP)

This project will address a number of soldier survivability demands. The team is currently concentrating on four technology areas: Active Protection Systems (APS), Improvised Explosive Device (IED)/Mine Blast technology, Enhanced Add-on-Armour (AoA) Kits for Light Armoured Vehicles (LAV), and Local Situational Awareness Systems (LSAS). One related project expected to be in implementation in fiscal 2007-2008 will be the $130M Armoured Heavy Support Vehicle System (AHSVS) that will field a fleet of modern, 16-tonne, armoured logistic trucks for high threat, extreme terrain operations around the globe. The predominant aspect of the trucks will be enhanced protection from ballistic, mine and improvised explosive devices.

Accrual Budgeting

The following table summarizes those projects in definition or implementation in fiscal year 2007-2008 that are being resourced and accounted for using the principles of accrual budgeting.


PLANNED CAPITAL PROJECT EXPENDITURES Forecast Planned Planned Planned
($ Thousands) Spending Spending Spending Spending

 

2006-2007

2007-2008

2008-2009

2009-2010

Budget 2005 Announcement

 

 

 

 

Strategic Capital Investments:

 

 

 

 

Medium to Heavy Lift Helicopters

8,489

268,373

358,123

420,034

Medium Support Vehicle System

11,986

35,032

204,980

456,291

Airlift Capability Project – Tactical

5,272

8,895

218,693

429,935

Joint Support Ship

0

82,285

96,030

194,000

Halifax-Class Modernization (HCM)

0

10,000

150,000

200,000

Total

25,747

404,585

1,027,826

1,700,260

Budget 2006 Announcement

 

 

 

 

Strategic Capital Investments:

 

 

 

 

Airlift Capability Project – Strategic

132,336

731,804

645,292

190,401

Howitzers M-777

24,569

3,456

0

0

Total

156,905

735,260

645,292

190,401

 

 

 

 

 

Grand Total

182,652

1,139,845

1,673,118

1,890,661

 

 

 

 

 

PLANNED ACCRUAL EXPENSES

Forecast

Planned

Planned

Planned

 $ Thousands

Spending

Spending

Spending

Spending

 

2006-2007

2007-2008

2008-2009

2009-2010

Budget 2005 Announcement

 

 

 

 

Strategic Capital Investments:

 

 

 

 

Medium to Heavy Lift Helicopters

0

0

89,000

89,000

Medium Support Vehicle System

0

3,000

22,000

58,000

Airlift Capability Project – Tactical

0

0

0

0

Joint Support Ship

0

0

0

0

Halifax-Class Modernization (HCM)

0

0

0

0

Total

0

3,000

111,000

147,000

Budget 2006 Announcement

 

 

 

 

Strategic Capital Investments:

 

 

 

 

Airlift Capability Project – Strategic

0

123,000

163,000

99,000

Howitzers M-777

340

1,000

1,000

1,000

Total

340

124,000

164,000

100,000

Grand Total

340

127,000

275,000

247,000


Source: Assistant Deputy Minister – Finance and Corporate Services
Note: The investment table reflects the planned cash expenditures and accrual expenses for the projects that have received Cabinet or Treasury Board approval.

Optimal Use of Resources

Materiel Management

The Materiel Group is the central provider of services and program authority related to all Defence materiel acquisition and support programs. It manages equipment programs throughout their life-cycle, from concept to procurement through to disposal. As well as procuring Defence equipment and services of all kinds, the Materiel Group oversees materiel relations between Defence and other government departments, other levels of government, and international organizations.

Key facts about the Materiel Group:

  • It is the functional management authority for the Departmental equipment asset base, which at the start of fiscal 2006-2007 had a net book value of over $21B, as well as approximately $5B in inventory stocks.
  • It employs 3,450 civilian and military personnel (60 percent civilian, 40 percent military) across Canada and deployed abroad.

The Materiel Group recently brought together its performance management, audit co‑ordination, and contract policy and compliance sections with the secretariat that handles sustainable development, aboriginal affairs, health and safety, and radiation safety to form a performance measurement and oversight directorate responsible for tracking and assessing the integrity of the Materiel Group program. At the same time, the Materiel Group consolidated the management of several complex transformative capital acquisition projects into a new division. This division also has a mandate to improve the professional standards of the Defence project management cadre by ensuring that each member possesses the education, qualifications and experience required for future acquisition challenges. The objectives of this reorganization are to use Project Management positions more efficiently, and to focus attention on high-priority capital equipment projects.

The traditional structure of major projects will be altered to consolidate common services such as procurement and financial, administrative and human resources management in one directorate with a mandate to develop project management qualification standards, gather and disseminate best practices, enhance project management training and formalize a project-management certification program. In addition, the rigor of scientific expertise will be applied to provide time-sensitive, accurate and critical procurement and economic analysis throughout all stages of equipment acquisition project management. The centralization of support is expected to reduce project overheads, increase flexibility in the allocation of resources to project priorities, emphasize development and refinement of project-management expertise across Defence, and accelerate key project activities.

Procurement and Contract Management

The Government recently announced $17 billion in new capital spending on defence which includes life-cycle costs, and $2 billion in maintenance and upgrades to equipment already in the Defence inventory. To complete the many projects arising from these allocations, the Materiel Group will work closely with Public Works and Government Services Canada to ensure timely award of contracts and delivery of equipment and services to meet CF needs while ensuring best value for Canadians. To ensure these procurements will be fair, open and transparent in accordance with the Federal Accountability Act, the Materiel Group will ensure that contracts include appropriate integrity provisions. In addition, the Materiel Group will ensure appropriate accreditation and training for procurement officers. Rigorous requirements have been established for each procurement process to ensure openness and transparency while also meeting urgent operational requirements. Potential suppliers must demonstrate that they meet mandatory selection criteria including high performance standards. The Materiel Group will ensure that suppliers' bids on each procurement include industrial benefits, and select the package with the most advantages to Canada. The Materiel Group offers a wide range of procurement methods, including specialized contracts, standing offers, supply arrangements and an "electronic marketplace" within a framework of stringent ethical standards. The Materiel Group also plays a key role in encouraging the procurement of environmentally friendly goods and services.

Continuing its commitment to efficiency, productivity and cost reductions, the Materiel Group is co-operating with other stakeholders to:

  • reduce the time required to complete the acquisition cycle;
  • improve efficiency in the delivery of the Capital Procurement Program and the National Procurement Program; and
  • respond to simplified high-level operational Statements of Requirements with off-the-shelf military and commercial goods when possible.

Realty Assets

The Defence portfolio of realty assets is in many respects the largest and most complex in the Government of Canada, and it includes owned and leased properties of all types and ages. By area, Defence occupies about 33 percent of federal buildings and 7 percent of federal land, with 25 main installations distributed across Canada and realty assets in every province and territory, located in 309 municipalities. The total realty replacement cost of Defence-owned buildings and works, including housing, is estimated at $21.4 billion. The responsibility associated with managing such a vast realty asset portfolio, which includes several designated heritage sites, places a significant demand on the sustainment capability of Defence.

Defence realty assets are generally considered to be in fair condition, but that status is declining due to inadequate funding; investment levels have remained below recognized industry standards for a decade. Over the 2000–2006 period, there was a general decline of 16 percent in the condition of Defence realty assets, which represents a decline of more than 3 percent per year. If this trend persists, the overall condition can be expected to move from “fair” to “poor” in approximately five years. To rectify the situation, the following will be pursued:

  • the continued development of Master Realty Asset Development Plans for each base and wing to improve realty asset planning and investment decisions;
  • increased funding for maintenance and repair of realty assets to halt the decline in their condition and minimize the impact of deferred maintenance;
  • establishment of proactive preventive maintenance functions; and
  • more reliable record-keeping to improve realty asset decisions.

To maximize the efficiency of the realty asset portfolio and to ensure that it supports and enables Defence operations and programs, in fiscal year 2007–2008, DND will:

  • implement a realty asset strategy to focus and guide realty asset activities towards a common goal;
  • adopt a portfolio management approach to ensure common, integrated and efficient investment decisions; and
  • implement an Integrated Site Investment Program to realize savings by consolidating, sharing and optimizing realty assets and to increase workforce productivity.

For additional information on the Capital Construction Program see Section III, Table 9.

Information Management

The Information Management Group (IM Gp) has made a commitment to adopt a capability-based approach to supporting operations and delivering IM capabilities and services in alignment with the "Canada First" defence strategy. The IM Gp will continue to provide the infrastructure and networks necessary to support operations and the corporate needs of the Department. To this end, maximum use will be made of commercial-off-the-shelf solutions where they make sense. Additionally, the IM Gp will make optimum use of other Government of Canada initiatives for shared services for IM/IT. Efforts will continue to improve security, redundancy and robustness of operational and corporate information systems and services.

Focusing on support to military operations, the IM Gp will lead the efforts to deliver a fully integrated command and control information system (C2IS) by converging existing environmentally "stove-piped" networks [the TITAN-CF command system network, Maritime Command Information Network (MCOIN), Air Force Command and Control Information System (AFCCIS), Land Force Command and Control System (LFC2S), Military Message Handling System (MMHS) and Automated Defence Data Network (ADDN)] networks now in service. The integrated C2IS will operate at Level II (Secret) and support the transformation principles of "command centricity" and "mission command". C2IS will be as compatible as possible with the classified systems of Canadian government departments and allied militaries.

The fusion of intelligence and operational information made possible by C2IS will support military and government decision-making. The CF will expand and enhance the information and intelligence fusion capability so it can support at least 50,000 users around the world. Gaps in governance and oversight of command and control capabilities will be addressed. In his role of C4ISR champion, the Vice Chief of the Defence Staff will oversee the development of the C2IS.

Employing the resources of the Canadian Forces Information Operations Group (CFIOG) the IM Gp will continue to work closely with the Chief of Defence Intelligence (CDI) and the Communications Security Establishment (CSE) to gather, analyze and disseminate military signals intelligence information in support of government decision making and military operations.

During fiscal 2007-2008, the corporate intent is to identify force-development requirements in the IM field for the Defence strategy. Significant challenges include the departmental enterprise architecture, a management strategy for the Defence application portfolio, and updates to the IM Strategic Plan.

Through the Enterprise Information Security Environment Project, the IM Group plans to deliver a flexible, robust, multi-dimensional IM security capability. This will be accomplished by:

  • identifying the information security requirements of an integrated Defence Enterprise Resource Planning capability;
  • making progress on the development of an information security architecture; and
  • assessing emerging security-based system architecture.

To address current and future information management requirements at Defence, the IM Group will plan, develop and implement a new record and document management capability, and develop a content management plan.

IM Group will also enhance “designated domain” access, and secure and non-secure video-teleconferencing capabilities.

The Information Management Group has made a commitment to adopt a capability-based approach to delivering IM capabilities and services in alignment with the “Canada First” defence strategy. During fiscal 2007–2008, the corporate intent is to identify force-development requirements in the IM field for the Defence strategy. Significant challenges include the departmental enterprise architecture, a management strategy for the Defence application portfolio, and updates to the IM Strategic Plan.

Through the Enterprise Information Security Environment Project, the IM Group plans to deliver a flexible, robust, multi-dimensional IM security capability. This will be accomplished by:

  • identifying the information security requirements of an integrated ERP;
  • making progress on the development of an information security architecture; and
  • assessing emerging security-based system architecture.

To address current and future information management requirements at Defence, the IM Group will plan, develop and implement a new record and document management capability, and develop a content management plan.

IM Group will also enhance “designated domain” access, and secure and non-secure video-teleconferencing capabilities.


Conduct Operations

Strategic Outcome: Success in assigned missions in contributing to domestic and international peace, security and stability.


Program Activity: Conduct Operations — Total Spending Net of Revenues

Resources Forecast Spending 2006–2007 Planned Spending 2007–2008 Planned Spending 2008–2009 Planned Spending 2009–2010

Departmental Spending1 ($ Thousands)

2,376,348

2,286,490

1,849,781

1,550,751

Capital Spending ($ Thousands) (included in departmental spending)

213,410

196,508

181,458

147,590


Source: Assistant Deputy Minister - Finance and Corporate Services, Chief of Military Personnel and Assistant Deputy Minister (Human Resources Civilian)

Note:

1. Planned Spending for Conduct Operations is subject to annual adjustment through future Main and Supplementary Estimates. It is expected that the 2008-2009 Planned Spending will increase once additional funding can be recognized.

The capability to conduct operations effectively at home and abroad is provided by efficient, professional maritime, land, air and special operations forces, supported by many partners and agencies. It comprises a variety of activities, including international operations in conjunction with NATO and the UN, continental NORAD operations, and domestic operations, such as surveillance and control of Canadian territory.

Constant Situational Awareness

The transformation of the CF added four operational headquarters and six regional Joint Task Forces to the command structure. The operational commands are responsible for domestic, deployed and special operations, and operational support. Common information and intelligence networks were developed to serve the new commands and provide constant situational awareness, and these networks will be available to the tactical, operational and strategic command levels.

A fully integrated system to be formed by converging networks will provide the capability of the TITAN-CF command system network, Maritime Command Information Network (MCOIN), Air Force Command and Control Information System (AFCCIS), Land Force Command and Control System (LFC2S), Military Message Handling System (MMHS) and Automated Defence Data Network (ADDN) networks now in service. The integrated command and control information system (C2IS) will operate at Level II (Secret) and support the transformation principles of “command centricity” and “mission command”. C2IS will be as compatible as possible with the classified systems of Canadian government departments and allied governments.

The fusion of intelligence and operational information made possible by C2IS will support military and government decision-making. The CF will expand and enhance the information and intelligence fusion capability so it can support at least 50,000 users around the world. Gaps in governance and oversight of command and control capabilities will be addressed. In his role of C4ISR champion, the Vice Chief of the Defence Staff will oversee the development of the C2IS.

Within the context of the Defence Intelligence Review, the Chief of Defence Intelligence (CDI) will implement a study of human intelligence (HUMINT) that includes a proposal to form a new CF unit at the appropriate level. CDI will develop a force-generation strategy for counter-intelligence and HUMINT capabilities, which are critical to commanders’ situational awareness. The evaluation of the counter-intelligence function will be completed, and a study of strategic intelligence analysis will be conducted with a view to improve service with respect to national-level requirements. Input provided to complete the Canadian Intelligence Policy will include a complementary Ministerial Directive.

The Joint Information and Intelligence Fusion Capability (JIIFC) Project will deliver the capability to gather, analyze and disseminate military intelligence in support of defence and government requirements. Supporting units include the Communications Security Establishment (CSE) and the Canadian Forces Information Operations Group (CFIOG). This capability will also enhance the ability of the CF to generate knowledge from operational information to support decisive leadership at all levels.

Close co-operation between the JIIFC Project and the team conducting the Defence Intelligence Review will improve the quality of information and intelligence available to be developed into knowledge of the operational situation. The JIIFC Project will respond to the needs of decision-makers at all levels. In its second phase, while developing a long-term infrastructure plan, the project will consolidate its initial capability in a temporary facility. The JIIFC Project will continue to develop the processes, procedures and personnel that merge operational information and intelligence to form a “common operating picture” for commanders at all levels. The final deliverable of the JIIFC Project, due in 2009, will be the National Fusion Centre, which will bring military and civilian fusion partners together in a single building.

The CSE signals intelligence (SIGINT) program provides unique and timely foreign intelligence consistent with Canadian government requirements and priorities. This information is used for:

  • indications and warnings;
  • policy formulation;
  • decision-making; and
  • day-to-day assessment of foreign capabilities and intentions.

During fiscal 2007–2008, SIGINT program priorities will include:

  • improving the quality of SIGINT products and services;
  • continuing to integrate SIGINT capabilities with the CF to ensure the best possible SIGINT support to CF operations; and
  • mastering the extraordinary challenge of the global information infrastructure and building on its technical capabilities.

The Marine Security Operations Centres (MSOC) consist of personnel from five core partner agencies - Canadian Border Services Agency, Canadian Coast Guard, Department of National Defence, Royal Canadian Mounted Police and Transport Canada. The function of the Marine Security Operations Centres will be to enable departments and agencies to work collaboratively to collect and analyze intelligence and other information in an effort to develop a solid awareness in their area of responsibility with regard to marine security.

The Interdepartmental Marine Security Operations Centres Project received effective project approval and an implementation contract was awarded in March 2006. Initial operational capacity is expected in April 2007 with full operational capacity expected in 2010.

Domestic and Continental Operations

As the single operational command for the whole country, Canada Command (Canada COM) is primarily concerned with planning domestic operations, including support to provincial and municipal authorities and inter-agency liaison. Memoranda of Understanding and interdepartmental contingency plans under development include one between Defence and the RCMP. Initiatives are under way to improve the co-ordination of CF support to civilian authorities with respect to major disaster response, especially firefighting; hurricane relief; chemical, biological, radiological and nuclear (CBRN) response; and pandemic diseases, especially influenza.

Canada COM is also responsible for operations undertaken by the CF in co-operation with the U.S. armed forces in North America. In this capacity, Canada COM has reached such important milestones as participation in the major Homeland Security-National Defence exercise involving U.S. Northern Command (NORTHCOM) and civilian agencies. Canada COM will continue to pursue the development and improvement of concepts of operations and command-and-control structures, and to solidify relationships between the CF and their domestic and continental security partners.

A single Combined Forces Air Component Command (CFACC), located in Winnipeg, coordinates and tasks all air support to Canada COM and the subordinate Joint Task Forces (JTF).

The air force will continue to provide the capability to respond to aeronautical and maritime Search and Rescue (SAR) incidents in all parts of Canada and its internationally agreed SAR regions. Additionally, the air force will continue to provide the capability to render humanitarian assistance and conduct disaster relief activities anywhere in the world, provide the capability to assist civilian authorities in aid of the civil power operations, and provide forces to assist in an air evacuation of Canadians from areas threatened by imminent conflict, in permissive and non-permissive environments, with available air forces.

The navy will implement the Readiness and Sustainment (R&S) policy to fulfill the naval mission to generate and maintain combat-capable, multi-purpose maritime forces and meet Canada's defence capability requirements and assigned defence tasks. This will consist of generating a Composite Contingency Task Group (CCTG), comprised of four ships at high readiness (HR) (two ships per coast), and a National Task Group on each coast, consisting of the two HR ships assigned to the CCTG and two to three Standard readiness (SR) ships. Task groups will be available for domestic and continental contingency operations as directed by Canada COM.

The navy will generate assets to undertake Maritime Security patrols consistent with national security objectives, to support the deployment of 50 Frigate sea days. In accordance with the current Memorandum of Understanding (MOU) between DFO and Department of National Defence, 155 sea days support shall be provided on a yearly basis. In addition, up to 50 additional Frigate sea days may be provided to support the Department of Fisheries and Oceans (DFO) Increased Presence Initiative in the NAFO Regulatory Area to address foreign over-fishing.

In accordance with the current MOU between the RCMP and Department of National Defence, up to 20 sea days shall be provided on a yearly basis in support of drug law enforcement. Demand beyond this level may be accommodated in accordance with the protocol outlined in the MOU.

Support to Canada Command for search and rescue missions shall be provided as and when required. A Ready Duty Ship (RDS) will be maintained under the operational command of CANADA COM at all times.

The North American Aerospace Defence Command - the bi-national command responsible for the aerospace surveillance and control of North America - continues to develop plans and procedures in co-ordination with military and civilian partners and in close co-operation with Canada COM and NORTHCOM. Canada and the U.S. are in the process of implementing NORAD's new maritime warning function, which was established on May 12, 2006, when the NORAD Agreement was renewed in perpetuity.

In response to unforeseen occurrences, the Health Services component of the Disaster Assistance Response Team (DART) will remain on 48 hours' notice to respond to humanitarian crises at home or abroad. Training of the DART medical team for this unique deployment role will continue as a Health Services priority.

International Operations

Security in Canada begins with stability abroad, and the CF have an important role to play internationally.

Reporting directly to the Chief of the Defence Staff, the Commander of Canadian Expeditionary Forces Command (CEFCOM) is responsible for the conduct of all overseas operations, including humanitarian, peace support and combat operations.

Through CEFCOM, the CF will conduct a range of international operations and will be prepared to:

  • deploy forces globally, as directed by the Government, to participate in operations under NATO, the U.N. or other coalition auspices;
  • support Canada’s commitments to NATO and the U.N. by making maritime, land and air forces available to respond rapidly to international emergencies and other security challenges;
  • deliver funds and materials from the Canadian International Development Agency to civil-military co-operation projects in theatres of operation;
  • provide humanitarian assistance and conduct disaster-relief activities including (but not limited to):
    • helping civil authorities provide humanitarian relief,
    • providing medical assistance, and
    • re-establishing local infrastructure through the Disaster Assistance Response Team, possibly as part of an international joint and combined force; and
  • evacuate Canadians from foreign countries threatened by imminent conflict, in conjunction with the military forces of other nations.

CEFCOM will continue to refine its force-employment processes and its relationships with deployed missions and its partners, including the other operational commands, the force generators of the CF, and other government departments, to ensure that necessary action is taken to achieve government objectives in a timely manner.

CANSOFCOM will plan, direct and control CF special forces operations, counter-terrorism activities, evacuation, and operational training in joint and combined environments.

The Canadian Operational Support Command (CANOSCOM) will continue to evolve with capabilities such as the Operational Support Engineer and Operational Support Military Police Groups and the establishment of its subordinate Canadian Forces Protective Services Unit (CFPSU). A Command Council has been set up to discuss the strategic-level mandate, and the harmonization and rationalization of CF operational support functions. CANOSCOM has also initiated studies to identify and develop the operational support capabilities needed for a second line of operations, and to introduce a “hub and spoke” system for moving personnel and distributing materiel in support of deployed operations.

Maritime Command (Atlantic) will deploy one Halifax-class frigate with its embarked helicopter detachment with the Standing NATO Maritime Group 1 (SNMG 1) from July to December 2007. At least one frigate will participate in the Mariner-series exercise in the spring of 2007, during which SNMG 1 will demonstrate that it is ready for the standby phase as the naval component of the NATO Reaction Force. The navy will review its participation in the SNMG 1 and the NATO Reaction Force when the command of SNMG 1 has rotated to another nation.

The army will continue to generate and maintain combat capable, multi-purpose land forces to meet Canada’s defence objectives. At the request of the Afghan government and under a U.N. mandate, Canada will continue to participate in and lead the expansion of NATO operations into southern Afghanistan with approximately 2,300 Canadian troops in theatre. Even as they help the people of Afghanistan rebuild their country, they will play a leadership role on the world stage and protect Canada from terrorism. The Chief of Land Staff intends an aggressive pursuit of expansion activities to improve the force-generation base. The army will continue to be composed of people and organizations that adapt well to change, co-operate well with other CF elements, and lead integrated land effects.

The navy will investigate opportunities to deploy a Helicopter Carrying Frigate (FFH) with a United States Navy (USN) Group in support of Operation Enduring Freedom (OEF).

The air force will continue to maintain the capability to provide forces able to operate as part of a multi-national coalition force up to and including mid-level joint and combined operations. Air forces will be able to operate anywhere in the world and maintain the capability to provide Vanguard components of the Main Contingency Force for UN Operations. Moreover, the air force will continue to provide personnel to various NATO Headquarters and continuously provide aircrews and other personnel to serve in the NATO Airborne Early Warning System, participate in NATO training and exercises, and provide the opportunity for allied air forces to conduct training in Canada.

Contribute to Canada and the International Community

Provide Advice to the Government of Canada

The Department of National Defence and the Canadian Forces advise the Government of Canada on defence policy and military matters to achieve good governance, a distinct Canadian defence identity, and influence in the global community.

In support of the Minister of National Defence and the Government of Canada, DND provides the analytical basis for defence policy options; develops advice on issues affecting Canada’s international defence and security; and co‑ordinates national policies with Cabinet, Parliament, other government departments, and the public.

The CF advises the government on military requirements, capabilities and options, and on the likely consequences of either undertaking or failing to undertake various military activities. With four new operational headquarters and the Strategic Joint Staff7, the Canadian Forces are better equipped for the new domestic and international security environment and to provide the government with timelier, more comprehensive military advice.

Contribute to Canadian Government and Society in Accordance with Canadian Interests and Values

Strategic Outcome: Good governance, Canadian identity and influence in a global community.


Program Activity: Contribute to Canadian Government, Society and the International Community — Total Spending Net of Revenues

Resources Forecast Spending 2006–2007 Planned Spending 2007–2008 Planned Spending 2008–2009 Planned Spending 2009–2010

Departmental Spending ($ Thousands)

965,771

947,928

984,532

1,002,583

Capital Spending ($ Thousands)

(included in departmental spending)

29,354

26,231

24,289

23,672


Source: Assistant Deputy Minister - Finance and Corporate Services

This third program activity supports the Government of Canada's outcome to provide good governance and to enhance Canada's identity and influence in the global community. It comprises the following three program sub-activities:

  • provide advice to the Government of Canada;
  • contribute to Canadian government and society in accordance with Canadian interests and values; and
  • contribute to the international community in accordance with Canadian interests and values.

The following entities support the foregoing activity:

The Communications Security Establishment

The CSE Information Technology (IT) Security Program provides Government of Canada clients with technical leadership and expertise, advice, guidance and services related to protecting information, and information systems and infrastructures.

As part of this task, CSE provides high-level IT security consulting; identifies cyber vulnerabilities and threats; and helps develop government IT security policy and standards. The IT Security Program’s priorities for fiscal year 2007–2008 are:

  • Cyber Defence: Prevent cyber attacks from reaching the critical systems of the Government of Canada;
  • Enterprise Architecture: Make progress on the development of a government-wide enterprise IT security architecture; and
  • Security Technologies: Provide authoritative, tailored contextual guidance to clients and partners.

As part of these priorities, CSE is also helping to advance the Canadian Crypto-Modernization Program for the government.

For the financial details on the CSE, refer to Table 2 in Section III. For more general information about the CSE, visit: http://www.cse-cst.gc.ca/

The National Search and Rescue Secretariat and the National Search and Rescue Program

The National Search and Rescue Secretariat (NSS), established in 1986, provides leadership to the National Search and Rescue (SAR) Program through the Interdepartmental Committee on Search and Rescue (ICSAR). ICSAR includes representatives from central agencies and the federal departments and agencies that provide SAR services.

The NSS reports directly to the Minister of National Defence, who is the lead minister for SAR. The NSS is accountable to the Minister through ICSAR for the development, co-ordination, analysis and review of federal SAR program policies and plans, and for specific program activities. The NSS also provides leadership in enhancing co-ordination between provincial, territorial and federal SAR programs, and advises the Minister on program issues.

National SAR Program Management Framework

The management framework of the National SAR Program is designed to meet key Government of Canada objectives in the areas of integrated performance information, collective risk management, and appropriate control mechanisms. The framework is documented in the Strategic Directions Paper, the National SAR Program Plan and the National SAR Program Annual Report.

National SAR Program Strategic Directions and Priorities

ICSAR has adopted the following strategic directions and priorities for the National SAR Program:

  • SAR Program Information Management and Data Exploitation:
    • Integrating data management with management decisions;
    • Using SAR incident data and analysis to guide planning decisions and develop prevention and awareness campaigns; and
    • Using SAR data to provide the link between resource inputs, service outputs and safety outcomes.
  • Interoperability:
    • Eliminating the barriers that prevent SAR partners from working together;
    • Establishing the procedures, plans, training, equipment and communications that facilitate an integrated, co-ordinated response on land, at sea and in the air in any SAR operation; and
    • Validating the foregoing through joint training and multi-jurisdictional exercises.
  • Public Education and Awareness:
    • Identifying and sharing best practices and education and awareness plans and campaigns among SAR partners to minimize the number of SAR incidents; and
    • Leveraging the resources dedicated to prevention and awareness campaigns.
  • Enhancing the SAR Volunteer Community:
    • Reducing the systemic barriers that prevent SAR volunteers from reaching their full potential;
    • Increasing the capability (training, equipment and availability) of volunteer organizations;
    • Generating, maintaining and retaining committed SAR volunteers; and
    • Exploring new associations and community-based partnerships.
  • Leveraging Technology:
    • Using technology to achieve effectiveness and reduce risk to SAR responders;
    • Identifying and developing best practices; and
    • Investing in new technologies to improve performance and develop new capabilities.
  • SAR Partnership with the Public Safety Community:
    • Strengthening partnerships with the public safety community to facilitate and enhance SAR prevention, co-ordination and response activities, as many SAR responders are public safety personnel.
National SAR Secretariat Activities

To support National SAR Program priorities, the NSS will co-operate with SAR partners in the following activities during fiscal 2007–2008:

  • Improve performance measurement and reporting for the National SAR Program;
  • Complete the SAR Volunteer Review and work with partners on follow-up activities;
  • Foster closer links between ICSAR and the Ground SAR Council of Canada, which includes provincial and territorial SAR authorities;
  • Advance the Northern SAR Strategy by:
    • partnering with the territorial governments to strengthen the northern SAR infrastructure and SAR related plans and procedures, and
    • implementing risk-reduction solutions;
  • Review the horizontal governance structure of the National SAR Program to determine whether improvements are required;
  • Continue implementation of an improved comptrollership framework for the Search and Rescue New Initiatives Fund, and promote use of the fund;
  • Renew the NSS website to improve the availability and accessibility of search and rescue information;
  • Help DND co-ordinate national and international efforts to convert COSPAS-SARSAT to a system based on mid-earth orbit satellites.
National SAR Program Partner Activities

The 2007 National SAR Program Plan identifies several new and continuing activities to be carried out by SAR organizations during fiscal 2007–2008 that will have significant long-term effects on the delivery of SAR services in Canada:

  • Canadian Coast Guard Fleet Renewal (Canadian Coast Guard);
  • 406-MHz Personal Locator Beacon transition (Transport Canada, NSS);
  • SAR Radio Interoperability Initiative (NSS, provincial and territorial governments);
  • Enhancement of the SAR Mission Management System (Defence); and
  • Multi-jurisdictional exercises.

For the financial details of the National SAR Program and the National Search and Rescue Secretariat, refer to Table 6 in Section III. For more general information about the NSS, visit http://www.nss.gc.ca/

Defence Research and Development Canada

On October 20, 2006, the Defence Management Committee approved the publication of Defence Science and Technology Strategy, which is now in its implementation phase. Defence S&T Strategy 2006 is a key component of a two-year project by Defence Research and Development Canada (DRDC) to guide the DRDC response to CF Transformation and to the changes in Canada’s defence and security environment.

Defence S&T Strategy 2006 was developed by DRDC in consultation with key Defence stakeholders and partners. Its objective is to maximize the impact of S&T on Canada's defence and security priorities through:

  • the establishment of a Defence S&T Enterprise, a horizontal and functional governance mechanism that connects S&T providers with Defence clients;
  • the development of a full-service Defence S&T capability that serves all the institution’s core processes; and
  • the development of strategic partnerships between Defence organizations, and between Defence as a whole and other institutions in government, industry and academia, in Canada and abroad.
R&D for Soldier Survivability

Currently the biggest threat to Canadians deployed on operations is the “improvised explosive device” (IED) — the homemade or improvised bomb.The terrorist’s favourite weapon, improvised bombs are increasingly lethal and sophisticated; simple to make, easy to aim and fire, and they are very difficult to defeat.

DRDC has taken up the challenge of the improvised bomb with a co-ordinated R&D effort to examine technologies with potential to counter this deadly threat. Solutions will be explored both in-house and through a special project under the Technology Demonstration Program to solicit ideas from Canadian industry. Over the next five years, the Counter-IED TDP will provide about $10 million in funding to projects that deal specifically with the improvised bomb problem, and allocate about $15 million more to soldier survivability issues such as mine detection and neutralization, camp defences and vehicle armour.

Improving DRDC Infrastructure

If DRDC is to fulfill its mandate of ensuring that the Canadian Forces are technologically prepared and operationally relevant, it must address pressing infrastructure needs. The development of a DRDC Infrastructure Strategy, to be completed during fiscal 2007–2008, will ensure that spending on buildings and facilities realizes the greatest possible benefit to Defence as a whole. The Infrastructure Strategy will be based on the overarching Defence S&T Strategy, designed to equip DRDC for a leading role in the Defence S&T Enterprise and, consequently, to achieve the required effect on the Defence mission. It will provide the framework to ensure that sound, reasonable investment in infrastructure across DRDC is rigorously co-ordinated and prioritized. Finally, it will demonstrate and document the benefits to Canadians of the distributed nature of DRDC infrastructure.

For the financial details of Defence Research and Development Canada, refer to Table 5 in Section III. For more general information about DRDC, visit http://www.drdc.gc.ca/

Canadian Cadet Program

The Canadian Cadet Program is a federally sponsored national training program for youth between the ages of 12 and 18, conducted by Defence in partnership with the Navy Cadet League, the Army Cadet League and the Air Cadet League. The leagues recruit cadets, and organize accommodation and sponsors for each cadet unit. The CF provides personnel from the Regular Force, the Primary Reserve and more specifically members of the CIC. The CF also provides uniforms, some infrastructure and other support services such as airlift. Approximately 58,200 young Canadians will benefit from cadet training from September to June, some 1,7M training days will be provided.  Some 23,230 cadets will be selected to attend national activities such as biathlon or marksmanship or one of the 24 Cadet Summer Training Centres located across the country either as trainees, or as Staff Cadets in leadership roles.

Planned Number of Cadets and Training Days


 

2007–2008 2008–2009 2009–2010

Cadets – Local Training

58,200

58,200

58,200

Training Days – Local Training

1,725,000

1,725,000

1,725,000

 

 

 

 

Cadets – Advanced Training

23,300

23,300

23,300

Training Days – Advanced Training

545,000

545,000

545,000


Source: VCDS – Director General Reserves and Cadets

Junior Canadian Rangers

The Junior Canadian Rangers (JCR) Program is for youth between the ages of 12 to 18  (approximately 3,000), and its aim is to provide a structured youth program through traditional, life and Ranger skills development activities. JCR Patrols (107) are located in remote and isolated communities of Canada that have Canadian Rangers. The JCR Program is conducted in collaboration with local committees of adult community members who are in many cases supported directly by the band, hamlet or municipal council. The community provides a location for training, screens potential volunteers and instructors, and schedules training activities. The CF provide uniforms, training, financial and administrative support to the program, and CF Regular Force and Primary Reserve personnel assist delivery and evaluate JCR training during regular visits and field training exercises. The CF also provides Canadian Rangers with opportunities to serve as leaders, facilitators, supervisors and program developers.

DND will continue to engage local, regional, provincial or territorial and federal agencies and organizations, and other government departments, specifically Indian and Northern Affairs Canada.

Planned Number of Junior Canadian Rangers and Training Days


 

2007–2008 2008–2009 2009–2010

Cadets (JCR) – Local Training

3,200

3,200

3,200

Training Days – Local Training

67,200

67,200

67,200

 

 

 

 

Cadets (JCR) – Enhanced Training

750

750

750

Training Days – Enhanced Training

5,250

5,250

5,250


Source: VCDS – Director General Reserves and Cadets

Official Languages

During fiscal 2007–2008, the CF will focus on:

  • developing a transformation communication strategy for the Official Languages Program;
  • Realigning the official languages policy framework;
  • Adopting a functional approach to staffing;
  • Measuring official languages performance in targeted health, safety and security functions; and
  • Developing a results-based performance measurement system to monitor the ability of Defence to provide consistent bilingual services, leadership and instruction as required by the Official Languages Act.

Employment Equity and Diversity

Military

The CF will implement their Employment Equity plan during fiscal 2007–2008. The plan’s key strategic objectives are:

  • improving representation of the groups designated by the Employment Equity Act;
  • making the CF inclusive through culture change initiatives; and
  • facilitating career development for soldiers, sailors and air personnel who are female, aboriginal, or members of visible minorities.
Civilian

During fiscal 2007–2008, DND will continue to monitor and report on the Employment Equity program and ensure that Employment Equity considerations are solidly embedded in the staffing procedures developed under the new Public Service Employment Act. In this final year of implementation of the corporate Employment Equity Action Plan, the focus will be on providing managers and HR practitioners across DND with appropriate training and tools.

Canadian Identity – History and Heritage

Defence will continue to manage the Canadian Military History Gateway, a website with links to the sites of National Defence, Parks Canada, Library & Archives Canada, the National Film Board, the Canadian Broadcasting Corporation, Veterans’ Affairs Canada, and the Canadian War Museum. The website and the partner network of sites promote Canadian military history and heritage throughout the world.

  • Themes for fiscal 2007–2008 include: the 90th anniversary of the Battle of Vimy Ridge, Canada’s Victoria Cross recipients, and the 400th anniversary of the founding of Quebec City.
  • Defence will mount the ceremonies at Vimy, France, on April 9–12, 2007, to mark the 90th anniversary of the battle and to highlight the recent refurbishment of the monument.
  • Defence will publish Québec – Ville militaire, 1608–2008 and continue work on three books on CF participation in U.N. operations in the Congo (1960–1964) and the Middle East (1956–1967), and International Commission for Supervision and Control operations in Indo-China (1954–1973).

Canadian Forces Grievance Authority

Defence remains committed to sustaining a grievance system for the Canadian Forces that can handle complaints from across the CF throughout their entire life-cycle. The CF grievance system will continue to promote effective resolution from the initial stages, when a complaint can be resolved informally, to the point at which a final grievance decision is rendered and implemented. Priorities of the CF Grievance Authority during fiscal 2007–2008 include:

  • expanding the capabilities of the grievance registry system to include tracking grievances at all levels by quantity, type and status;
  • introducing a user-friendly grievance website that includes a case-management communication reporting function; and
  • improving the processes and updating the governance tools that support the resolution of complaints and grievances.

For more information on the Canadian Forces Grievance Authority and the Canadian Forces Grievance Board visit: www.cfga.forces.gc.ca/intro-eng.asp and www.cfgb-cgfc.gc.ca/process-e.php

Judge Advocate General

During fiscal 2007–2008, the Office of the Judge Advocate General (JAG) will continue to focus its efforts on support to operations. In addition to striving to provide forward-thinking legal advice on operational and international law, it will be working with the Canadian Defence Academy (CDA) to develop effective new methods for the delivery of operationally focused military legal education, training and doctrine for the CF.

Since an efficient and responsive military justice system is central to the effective exercise of operational command, the Office of the JAG will also be working with other military justice stakeholders to reduce the length of time it takes for the disposition of a matter by court martial.

Canadian Forces and Department of National Defence Ombudsman

The Office of the Ombudsman is a direct source of information, referral and education for the men and women of the Canadian Forces, employees of National Defence and their families. The Ombudsman helps individuals when they have a complaint or concern, investigates complaints, serves as a neutral third party on matters related to the DND and the CF and, when necessary, reports on issues to the public.

The Ombudsman will contribute to substantial, long-lasting improvements to the overall quality of life of Canadian soldiers, sailors and air personnel, Defence civilians, and their families. He will reach out to build comprehensive awareness and understanding of his mandate and role in the Defence community.

The Office of the Ombudsman will enhance accountability and openness in its investigations and operations in keeping with the intent of the Federal Accountability Act. It will strengthen overall program delivery, particularly the level of service it provides to CF members, Defence civilians and their families, consistent with the 2007–2008 priorities for Defence.

Contribute to the International Community in Accordance with Canadian Interests and Values

Defence contributes to the international community in accordance with Canadian interest and values through international organizations, industrial defence co‑operation, scientific and technological co-operation, and provision of military training assistance.

Multilateral Organizations

Defence contributes to several multilateral and bilateral organizations that are both symbols of our national values and mechanisms for advancing and protecting Canadian interests on the international stage. The United Nations, the North Atlantic Treaty Organization and North American Aerospace Defence Command are central pillars of Canadian foreign and defence policy. 750 CF personnel, slightly more than 50 percent of CF foreign postings, support these three organizations. Defence also gives these three bodies significant funding to maintain military command structures and shared capabilities.

As much as possible, Canada also engages with and assists other international organizations, such as the European Union, the African Union, and the Organization of American States, all of which contribute significantly to international peace and security in areas such as the Balkans, Africa and Central and South America. Defence will continue to seek opportunities to engage with international organizations to promote Canadian values and interests abroad.

Industrial Defence Co-operation

During fiscal 2007–2008, Defence will work to enhance international industrial defence co-operation with Canada’s allies, emphasizing three major activities:

  • the nine-nation Joint Strike Fighter program, which gives Canadian industry access to a U.S. $276-billion project; to date, some 50 Canadian companies, universities and research institutes have landed contracts related to the Joint Strike Fighter;
  • under the Security and Prosperity Partnership with the U.S., co-operation with the U.S. Department of Defence to identify industrial infrastructure critical to national security;
  • promoting Canada’s financial, industrial and policy interests through NATO working groups on equipment and programs such as the NATO Airborne Early Warning and Control Program and the NATO Maintenance and Supply Agency.

The Joint Strike Fighter (JSF) program is a U.S.-led multinational effort to build an affordable, multi-role, stealthy fighter aircraft. Nine countries are in the program, including the United States, Italy, the United Kingdom, Norway, Denmark, Australia, the Netherlands, Turkey and Canada. Canada has been involved since 1997. On 30 November 2006, Treasury Board approved Canada's participation in the Production, Sustainment and Follow-On Development (PSFD) phase until 2013. Participation in this phase does not constitute a commitment to buy the JSF. The benefits of participation include continued access to work on the program for Canadian industry, increased interoperability with our allies and significant cost savings in acquisition and sustainment should Canada decide to buy the aircraft. A decision on the replacement for the current fleet of CF-18 is expected to be sought in the 2012 timeframe. The JSF program is not currently considered an acquisition program.

Scientific and Technological Co-operation

Defence Research and Development Canada (DRDC) is involved in numerous international defence science and technology working groups and collaborative research fora. International collaboration facilitates the exchange of knowledge and heightens Canada’s profile on the world stage as a leader in scientific and technical innovation. The key international fora in which DRDC participates, include:

  • Technical Co-operation Program (TTCP): An international research forum made up of Canada, the U.S., Britain, Australia and New Zealand, TTCP involves more than 850 scientists leading projects involving, at any given time, some 3,000 to 5,000 international scientific personnel; DRDC contributes to more than 70 TTCP technological initiatives;
  • NATO Research and Technology Organization: Facilitates collaborative research with other NATO members; and
  • DRDC Centre for Security Science: Initiated in 2006 to integrate security-related technology collaborations among 20 federal government departments and liaise with the U.S. Department of Homeland Security.

Military Training Assistance Program

The Military Training Assistance Program (MTAP) is an instrument of Canada’s foreign and defence diplomacy. It directly contributes to the Defence mission by promoting Canadian interests and values abroad, and contributing to international peace and security. MTAP will provide education and training to the defence and security establishments of developing, non-NATO countries through the following undertakings:

  • Language training to facilitate communication and interoperability among international forces;
  • Professional development, which encompasses command, staff and technical training, to improve the professionalism of foreign armed forces; and
  • Peace-support training to improve military and civilian participants’ capacity to undertake multilateral and peace-support operations.

During fiscal 2007–2008, MTAP will initiate co-operative training projects in developing countries with allies such as Britain by co-ordinating relevant training projects with the Department of Foreign Affairs and International Trade, and by aligning MTAP training with the objectives of CF operations.

Executive and Corporate Services

Executive and Corporate Services do not constitute a program activity within the PAA construct. They do, however, comprise the corporate governance and strategic management activities carried out by individual organizations within Defence; activities which are fundamental to the coherence of all elements of the PAA.

Safety Programs

General Safety Program

Designed to meet the legislative requirements of Part II of the Canada Labour Code, the General Safety Program comprises occupational health and safety and the Return to Work program for civilian employees. It is the most comprehensive of the many DND/CF safety program detailed in DAOD 2007-0 – Safety.

During fiscal 2006–2007, a revised, strengthened safety governance structure was introduced to enhance synergy among the departmental safety programs and reduce duplication and inefficiencies. This co-ordination will continue during fiscal 2007–2008 under the oversight of the DND/CF Health and Safety Council chaired by the Vice Chief of the Defence Staff, which issued its first Annual Report during fiscal 2005–2006 and will issue another in 2007–2008. This reporting period will see more improvement in compliance with Part II of the Canada Labour Code in several areas, especially hazard analysis and risk management, that were formalized by the introduction of Canada Occupational Health and Safety Regulation XIX (Hazard Prevention) in November 2004.

Nuclear Safety

The Minister of National Defence is responsible for establishing and maintaining requirements for the control and safe use of ionizing radiation sources across Defence. The Director General Nuclear Safety implements a Risk-Based Control Regime authorizing DND/CF nuclear activities in consideration of risk balanced against the requirements for health, safety, security and protection of the environment.

For more information on nuclear safety at Defence, see the Report on the Management of Nuclear-Related Activities.

Modern Management

Defence will continue to enhance modern management by supporting intelligent, forward-looking, effective and efficient management practices consistent with Government of Canada standards and focusing on governance, accountability, stewardship, risk management, and results and performance. These management practices promote more effective resource management and in turn ensure value for Canadians.

Governance

In May 2006, Defence senior management gave approval in principle to change the governance structure at National Defence Headquarters. The executive committee structure was altered to recognize the separation of operational and strategic headquarters and the creation of a “Canada First” defence strategy. The new governance structure will streamline the planning and acquisition of equipment and realty assets through top-down direction and resource allocation. Changes to the governance structure should be fully implemented in 2007–2008.

Integration of the PAA into core strategic resource management processes will continue in concert with governance changes. The PAA will also continue to be further refined as the common framework of the Defence annual reporting cycle.

Accountability

The annual Management Accountability Framework (MAF) exercise led by Treasury Board Secretariat assesses 10 elements of management accountability to help Defence strengthen its accountability processes and mechanisms. During fiscal 2007–2008, TBS will meet with the Deputy Minister to discuss compliance with the MAF. The purpose of this bilateral meeting is to determine how Defence is meeting its management commitments, and how it is tracking performance. A report is expected in spring 2007.

Stewardship

As the functional authority for information management at Defence, the Assistant Deputy Minister (Information Management) will ensure that the information management services meet the needs of the CDS vision and CF transformation. Projects already under way or completed include:

  • the IM Services Transformation Project;
  • the Single Enterprise Resource Planning Feasibility Study;
  • the Enterprise Security Environment Analysis;
  • the IM/IT Rationalization initiative: and
  • a rapid review of Command, Control and Intelligence, and Human Resource Management capabilities.

These efforts are intended to enhance capabilities across Defence and improve stewardship of resources by aligning IM service delivery with the Defence Capability Plan.

Risk Management

Integrated risk management (IRM) is making progress at Defence since the release of the IRM Policy and Guidelines and the conduct of an institution-wide environmental study. All the Assistant Deputy Ministers and Environmental Chiefs of Staff have accepted eight strategic-risk areas. A two-part corporate risk profile is being developed to permit Defence to assess its operating environment and capacity to deal with high-level risks associated with strategic objectives. Part 1 of the corporate risk profile, now near completion, sets out the background, strategic context and methodology of Defence risk assessment, and discusses the areas of strategic risk and the progress made to date with IRM implementation. Part 2, now being developed, will be a snapshot of strategic risk in Defence at a specific moment, and will identify the key high-level risks that must be managed at the corporate level. Responses to these risks will be developed once the risks have been linked to the strategic objectives and Defence priorities and analysed.

A Defence IRM Implementation Plan is also being drafted. This document will detail how IRM will be integrated into strategic and business planning and in decision-making processes and reporting. It will also detail how to integrate the practice of IRM across Defence, and how the institution will ensure continuous learning in the risk management field.

Defence is also integrating IRM into the Performance Management Framework, the main portal for reporting risk information. Further efforts to integrate IRM into other strategic processes at Defence will continue throughout fiscal 2007–2008. These efforts will include long-term work to develop and implement an effective IRM framework across all Defence Materiel Acquisition and Support activities.

Defence will continue to apply risk management techniques that reflect its historical funding trends. Continued application of a prudent risk management strategy that incorporates reasonable levels of over-programming in combination with identified risky investments is essential to success in achieving the Defence mission.

Results and Performance

Performance management remains a key component of the overall business planning cycle. Defence will continue its effort to align the DND/CF Performance Management Framework (PMF) to the PAA and the MAF and ensure that it provides relevant information on internal, service and program results. The goal is to have a PMF with balanced and factual information to facilitate decision-making and public reporting.

The PMF system continues to mature in DND and senior managers routinely discuss issues raised through the PMF system, in structured Balanced Scorecard discussions. The semi-annual internal performance management discussion paper and follow-on Defence Management Committee (DMC) discussion continue to be key processes for communicating and executing the Defence Strategy within the senior leadership.

The priority for fiscal 2007-2008 is to continue to evolve and mature the Defence PMF to ensure that the right sets of performance indicators, measures and targets are in place to accurately feed the Defence Balance Scorecard and Strategy Map. The Vice-Chief of the Defence Staff organization will continue to provide focus to the Defence Performance Management Action Teams and closely monitor the evolution of the Defence PMF.

 

Labour Relations

The new Public Service Labour Relations Act requires an Essential Services Agreements (ESA) for every Public Service bargaining unit that chooses conciliation or strike action as its method of dispute resolution. A key initiative for DND during fiscal 2007–2008 is to negotiate with bargaining agents to develop ESAs to maintain continuity of essential services at Defence in the event of labour disruptions. The incumbents of positions that provide services deemed essential to the safety or security of the public must continue to provide those services even if their union is on legal strike.

Defence Public Affairs

During fiscal 2007–2008, Defence Public Affairs will support all CF operations, bringing a special focus on Afghanistan by launching a comprehensive communications plan to inform Canadians and expand their understanding of the CF mission in Afghanistan.

Defence Public Affairs provides advice and support to procurement announcements, and co-ordinates media operations in CF operations. In particular, during fiscal 2007–2008, it will support announcements and follow-on activities surrounding the implementation of the “Canada First” defence strategy. A communications strategy will be developed to explain it to Canadians and Defence stakeholders, and the year’s communications activities and products will be overtly linked to the new strategy where appropriate.

Defence Public Affairs will continue to support CF recruitment through the on-going recruitment advertising campaign, participating in assessments of the campaign’s effectiveness and revising it accordingly, and co-ordinating responses to queries about the campaign. 

Defence Public Affairs will continue its renewal process with a view to aligning its organization, doctrine and daily activities with the new structure of Defence to achieve resource efficiencies and maximize effectiveness in support of Defence priorities.

 




Section III: Financial and Departmental Overview

Organization Chart


Organization Chart


Financial Resources

Departmental Resource Consumption

Forecast Spending for Fiscal Year 2006-2007 by PAA

Departmental links to the Government of Canada Outcome areas

Source: Assistant Deputy Minister (Finance and Corporate Services)

Note: See table on page 5 for the relationship between Defence's Strategic Outcomes and the Government of Canada strategic outcomes.

Table 1: Departmental Planned Spending and Full Time Equivalents


 ($ Thousands)

Forecast Spending 2006-2007

Planned Spending 2007-2008

Planned Spending 2008-2009

Planned Spending 2009-2010

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces

12,282,382

14,203,325

15,550,623

15,830,508

Conduct Operations

1,731,310

1,904,603

1,857,981

1,551,741

Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values

1,144,233

1,168,625

1,210,704

1,219,533

Budgetary Main Estimates(gross)

15,157,925

17,276,553

18,619,308

18,601,782

Less: Respendable revenue

(368,703)

(394,948)

(386,428)

(370,572)

Total Main Estimates/Spending

14,789,222

16,881,605

18,232,879

18,231,210

 

 

 

 

 

Adjustments:

 

 

 

 

To 2006-07 Through National Defence's Supplementary Estimates

 

 

 

 

Funding to strengthen the Canadian Forces’ independent capacity to defend Canada’s national sovereignty and security (Canada First)

418,079

 

 

 

Increases to pay and allowances for Canadian Forces members

177,140

 

 

 

Operating budget carry forward (horizontal item)

155,608

 

 

 

Funding to acquire a strategic airlift capability that will move large numbers of troops and equipment over long distances

132,336

 

 

 

Enhancements to the Canadian Forces mission in Afghanistan

113,633

 

 

 

Funding for the continued leadership role in Afghanistan for the Canadian Forces

88,980

 

 

 

Funding to acquire new medium sized military trucks to transport troops and supplies

11,986

 

 

 

Funding for the incremental costs incurred to provide earthquake disaster relief in South Asia in 2005-2006

10,328

 

 

 

Funding to acquire medium-to-heavy lift helicopters to move troops and equipment into remote areas

8,489

 

 

 

Funding related to government advertising programs (horizontal item)

7,500

 

 

 

Funding for the costs of Canadian disaster relief activities in the United States in the wake of Hurricane Katrina (horizontal item)

6,678

 

 

 

Funding for the modernization of compensation policies for Joint Task Force 2

5,386

 

 

 

Funding to acquire a tactical airlift capability that will provide planes to transport troops and equipment over short distances within a region

5,272

 

 

 

Funding to cover the incremental costs incurred during the emergency evacuation of Canadian citizens from Lebanon

4,037

 

 

 

Transfer from Western Economic Diversification – For legacy projects relating to the Alberta and Saskatchewan Centenaries (Museum of Regiments)

3,000

 

 

 

Funding to continue building management capacity of the Public Security Technical Program

2,670

 

 

 

Transfer from Social Sciences and Humanities Research Council – To support the indirect costs of federally-funded research at the Royal Military College

1,208

 

 

 

Funding to assist in the construction of a facility to house the Halifax Bomber at the Royal Canadian Air Force Memorial Museum in Trenton, Ontario

1,000

 

 

 

Transfer from Fisheries and Oceans – For projects to reform the classification of jobs within the Federal Public Service

919

 

 

 

Reinvestment of royalties from intellectual property

567

 

 

 

Transfer from Natural Sciences and Engineering Research Council ($340) and Social Sciences and Humanities Research Council ($179) – To support the Canada Research Chairs at the Royal Military College

519

 

 

 

Transfer from Fisheries and Oceans – For unused funds related to investments in search and rescue coordination initiatives across Canada (horizontal item)

177

 

 

 

Funding to increase the grant to Mr. R.P. Thompson for increases due to indexing

9

 

 

 

Spending authorities available within the Vote due to a reduced requirement in contribution payments to the North Atlantic Treaty Organization (NATO)

(9)

 

 

 

Transfer to Environment – To encourage the participation of Aboriginal students in post-secondary science and technology programs, maintain support mechanisms, and to promote the Federal Public Service as an employer of choice among graduates of this program

(30)

 

 

 

Transfer to Parks Canada Agency – For the transfer of land located at 57B St. Louis Street in Quebec City

(74)

 

 

 

Transfer to Foreign Affairs and International Trade – To provide support to National Defence staff located at missions abroad

(1,717)

 

 

 

Spending authorities available within the Vote due to a reduced requirements related to the deferral of operating funding for the Chemical, Biological, Radiological and Nuclear Research and Technology Initiative

(4,037)

 

 

 

Transfer to Environment ($1,525), Fisheries and Oceans ($1,258), Transport ($798), Royal Canadian Mounted Police ($313), and Parks Canada Agency ($269) – For investments in search and rescue coordination initiatives across Canada (horizontal item)

(4,164)

 

 

 

Transfer to Transport ($1,956), Royal Canadian Mounted Police ($1,377), Canada Border Services Agency ($750), and Fisheries and Oceans ($554) – For public security initiatives (horizontal item)

(4,637)

 

 

 

Spending authorities available within the Vote due to a reduced requirement for funding related to the assessment, management and remediation of federal contaminated sites

(9,103)

 

 

 

2005 Expenditure Review Committee Savings – Procurement

(62,310)

 

 

 

 

 

 

 

 

To 2006-07 Through Adjustments Other Than National Defence's Supplementary Estimates

 

 

 

 

Civilian Pay Raises - Treasury Board Vote 15

34,841

 

 

 

Funding related to government advertising programs (horizontal item)

8,000

 

 

 

Administration charges related to the implementation of amendments to the Canadian Forces Superannuation Act - Employee Benefit Plan Recoveries Deposited to the Consolidated Revenue Fund

1,774

 

 

 

Incremental funding in Support of the Internal Audit Policy

789

 

 

 

Funding to conduct readiness assessment for audit of financial statements

200

 

 

 

Adjustment to total Reinvestment of royalties from intellectual properties received through Supplementary Estimates (A) 2006-2007

 (557)

 

 

 

Reprofiling – Public Security Technical Program

(1,312)

 

 

 

Reprofiling – Communications Security Establishment – Supporting New Activities

(1,500)

 

 

 

Reprofiling – Maritime Information Management and Data Exchange (MIMDEX)

(3,000)

 

 

 

Reprofiling – Marine Security Operations Centres

(6,587)

 

 

 

Reprofiling – Secure Fleet Communications Project

(8,650)

 

 

 

Reprofiling – Chemical, Biological, Radiological and Nuclear Research and Technology Initiative (CRTI)

(9,463)

 

 

 

Reprofiling – Public Security and Anti-terrorism (Budget 2001)

(14,220)

 

 

 

Employee Benefit Plan (EBP)

51,876

 

 

 

 

 

 

 

 

To Planned Spending Levels

 

 

 

 

Reinvestment of the proceeds from the sale of real property (2.a)

 

17,510

 

 

Funding related to government advertising programs (horizontal item) (2.b)

 

10,000

 

 

Civilian Pay Raises - TB Vote 15 (2.c)

 

8,524

5,957

5,957

Reprofiling – Chemical, Biological, Radiological and Nuclear Research and Technology Initiative (CRTI) (2.d)

 

6,015

 

 

Reprofiling – Public Security and Anti-terrorism (Budget 2001) (2.d)

 

2,200

 

 

Canadian Pension Plan coverage (2.e)

 

2,000

2,000

2,000

Incremental funding in Support of the Internal Audit Policy (2.f)

 

810

 

 

Reinvestment of the royalties from intellectual property (2.g)

 

450

 

 

Employee Benefit Plan (EBP)

 

1,784

1,367

1,367

 

 

 

 

 

Budget 2005 Announcement

 

 

 

 

Strategic Capital Investments (2.h)

 

294,092

603,613

758,299

Budget 2006 Announcement

 

 

 

 

Canada First - Non-Capital Investments (2.i)

 

601,000

 

 

- Strategic Capital Investments (2.h)

 

19,456

17,000

49,000

Total Adjustments

1,121,632

963,840

629,937

816,623

Total Planned Spending

15,910,854

17,845,445

18,862,816

19,047,833

Less: Non-Respendable revenue

(611)

(25,584)

(600)

(627)

Plus: Cost of services received without charge

530,096

554,837

553,278

563,219

Total Departmental Spending

16,440,339

18,374,699

19,415,494

19,610,425


Source: Assistant Deputy Minister (Finance and Corporate Services)

  1. Due to rounding, figures may not add up to totals shown.
  2. Expected approval of items in the adjustments to Planned Spending levels:
2a: Following approval of the Department's Long Term Capital Investment Plan by Treasury Board the revenues from sales of real property will be sought through the 2007-08 Supplementary Estimates.
2b: Approved by Treasury Board in October 2006. The funding will be sought through the 2007-08 Supplementary Estimates (A).
2c: For 2007-08, spending authorities will be provided through the 2007-08 Supplementary Estimates (A). For 2008-09 and beyond, spending authorities will be provided through the 2008-09 Annual Reference Level Update.
2d: Reprofiling adjustments approved in December 2006. The reprofiling adjustment will be sought through the 2007-08 Supplementary Estimates (A).
2e: Approved in December 2006. Statutory authorities will be adjusted at year end for FY 2007-08 and part of baseline adjustment from 2008-09 and ongoing.
2f: Spending authorities will be sought through 2007-08 Supplementary Estimates (A).
2g: Spending authorities will be sought through 2007-08 Supplementary Estimates (A) upon proof of deposit to the Consolidated Revenue Fund (CRF).
2h: Expenditure authority for either definition or implementation phase for Budget 2005 and 2006 major capital projects will be sought during fiscal year 2007-08.
2i: Budget Announcement 2006 Canada First for 2007-08. Non-Capital Investment will be sought through 2007-08 Supplementary Estimates (A).

Human Resources – Full Time Equivalents (FTEs)


 

Forecast FTEs 2006–2007

Planned FTEs 2007–2008

Planned FTEs 2008–2009

Planned FTEs 2009–2010

Military (Regular Force)1

64,878

66,737

67,347

67,957

Civilian2

24,400

25,000

25,000

25,000

Total

89,278

91,737

92,347

92,957


Source: Chief of Military Personnel and Assistant Deputy Minister – Human Resources (Civilian) and VCDS - Chief of Programme

Notes:

  1. Current fiscal framework limits Regular Force expansion up to 68,000 Average Paid Strength. This strategic limit does not include personnel seconded to OGDs (approx 300 FTEs) and Project Management Personnel Resource paid under Vote 5 projects (approx 400 FTEs). FY 07/08 Average Paid Strength includes approx 1,200 Class “C” Reservists to augment operationally deployed forces.
  2. Current fiscal framework will limit civilian Salary Wage Envelope to 25,000 FTEs equivalent. Such envelope does not include personnel seconded to OGDs, Project Management Personnel Resource paid by Vote 5 projects and ongoing/proposed initiatives to convert professional contractor support to Public Service members.

Table 2: Voted and Statutory Items


($ Thousands) 2007-2008
Main Estimates
2006-2007
Main Estimates
Vote or
Statutory Item
Truncated Vote or Statutory Wording
1 Operating expenditures 11,848,854 11,155,813
5 Capital expenditures 3,592,868 2,267,832
10 Grants and contributions 210,451 191,721
(S) Minister of National Defence salary and motor car allowance 75 3
(S) Payments under the Supplementary Retirement Benefits Acts 7,020 9,000
(S) Payments under Parts I-IV of the Defence Services Pension Continuation Act (R.S., 1970 c. D-3) 1,550 1,900
(S) Payments to dependants of certain members of the Royal Canadian Air Force killed while servicing as instructors under the British Commonwealth Air Training Plan (Appropriation Act No. 4, 1968) 90 95
(S) Contributions to employee benefit plans - Members of the Military 957,396 903,931
(S) Contributions to employee benefit plans 263,300 258,857
  Total Department 16,881,605 14,789,222

Source: Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to totals shown.
Note: 
1.The Main Estimates of 2007-2008 are $2,092.4 million higher than the Main Estimates of 2006-2007.  This increase can be explained by the following:  $1,044.1 million in additional funding for Strategic Capital Investment announced in Budget 2005 and 2006, $382.3 million to fund the expansion of the Canadian Forces, $273.6 million to fund operations in Afghanistan, $253.3 million for Pay and Allowance increases for Military and Civilian personnel, $187 million to partially offset the loss of purchasing power due to price increases, $100 million to address the shortfall in operating budgets (Sustainability), offset by a $62.3 million reduction resulting from the planned procurement savings, a $55 million reduction to fund the Department's share of the Expenditure Review Committee reallocations, and $30.6 million in reductions for transfers and technical adjustments.

Table 3: Services Received Without Charge


($ Thousands)

2007-2008

Accommodation provided by Public Works and Government Services Canada (PWGSC)

71,747

Contributions covering employer's share of employees' insurance premiums and expenditures paid by the Treasury Board of Canada Secretariat (excluding revolving funds)

468,839

Worker's compensation coverage provided by Social Development Canada

11,258

Salary and associated expenditures of legal services provided by the Department of Justice Canada

2,994

Total 2007-2008 Services received without charge*

554,837


Source: Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to totals shown.

Table 4: Summary of Capital Spending by Program Activity


($ Thousands) Forecast
Spending
2006-2007
Planned
Spending
2007-
2008
Planned
Spending
2008-2009
Planned
Spending
2009-2010

Defence Services Program

 

 

 

 

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces

2,256,142

3,685,877

4,514,658

4,720,356

Conduct Operations

213,410

196,508

181,458

147,590

Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values

29,354

26,231

24,289

23,672

Total

2,498,906

3,908,616

4,720,405

4,891,618


Source: Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to totals shown
Note: 1. The Total Capital Spending of $3,592,868 thousand reported on Table 2 Voted and Statutory Items equals the capital portion of the Main Estimates for fiscal year 2007-08.  This capital table is showing $3,908,616 thousand for fiscal year 2007-08.  The increase of $315,748 thousand is the adjustment from the Main Estimates to the Planned Spending figure for the Strategic Capital Investments (Budget 2005 and 2006), the reinvestment of proceeds from the sale of Real Property, and the reprofiling of funds for the Public Security and Anti-terrorism Initiative.

Table 5: Loans, Investments and Advances (Non-Budgetary) 


($ Thousands)

Forecast
Spending
2006-2007
Planned
Spending
2007-2008
Planned
Spending
2008-2009
Planned
Spending
2009-2010

Defence Services Program

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces

Imprest Accounts, Standing Advances and Authorized Loans (Note 2)

(2,565)

 2,583

 (2,604)

2,625

Conduct Operations 

Imprest Accounts, Standing Advances and Authorized Loans (Note 2)

 (279)

264

 (243)

222

Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values

Imprest Accounts, Standing Advances and Authorized Loans (Note 2)

 (156)

 153

 (153)

 153

NATO Damage Claims (Note 1) 
10
 15
 1
 1
Total

(2,990)

3,015

(2,999)

3,001


Source: Assistant Deputy Minister (Finance and Corporate Services)
Notes:
1. Article VIII of the NATO Status of Forces Agreement signed April 4, 1949, as amended, deals with claims for damages to third parties arising from accidents in which a member of a visiting force was involved.  This account is charged with the amount recoverable from other states, for claims for damages amount recoverable from other states, for claims for damages that took place in Canada, and is credited with recoveries.
2. This account was established for the purpose of financing:  (a) public funds imprest and public funds advance accounts; (b) standing advances; (c) authorized loans and advances to employees posted abroad; and (d) authorized recoverable advances to establish military messes and canteens.  The total amount authorized to be outstanding at any time is $120,000,000 as last amended by National Defence Vote L11b, Appropriation Act No. 4, 2001-2002.


Table 6: Sources of Respendable and Non-Respendable Revenue 


Respendable Revenue

($ Thousands)

Forecast
Revenue
2006-2007

Planned
Revenue
2007-2008

Planned
Revenue
2008-2009

Planned
Revenue
2009-2010

Defence Services Program

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces 

Recoveries from Members

104,860

118,888

110,229

110,651

Recoveries from OGDs

10,824

12,272

11,379

11,422

Recoveries from Other Governments/UN/NATO

4,321

4,900

4,543

4,560

Other Recoveries

22,924

25,991

24,098

24,190

  Subtotal

 142,930

162,051

150,248

150,824

 

 

 

 

 

Conduct Operations

 

 

 

 

Recoveries from Members

3,288

1,592

1,398

290

Recoveries from OGDs

611

296

260

54

Recoveries from Other Governments/UN/NATO

15,647

7,577

6,652

 1,381

Other Recoveries

1,857

899

 790

164

  Subtotal

21,403

 10,364

 9,099

1,889

 

 

 

 

 

Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values

 

 

 

 

Recoveries from Members

923

1,005

1,025

984

Recoveries from OGDs

6,391

6,959

7,101

6,813

Recoveries from Other Governments/UN/NATO

191,834

208,883

213,152

204,496

Other Recoveries

5,222

5,686

5,802

 5,567

 Subtotal

204,370

222,533

 227,081

 217,859

 

 

 

 

 

Total Respendable Revenue

 368,703

394,948

386,428

370,572

 

 

 

 

 

Non-Respendable Revenue

 

 

 

 

Defence Services Program

 

 

 

 

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces

35

 

 

 

Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values

576

25,5841

600

627

Total Non-Respendable Revenue

611

25,584

600

627

 

 

 

 

 

Total Respendable Revenue and Non-respendable Revenue

369,314

420,532

387,028

371,199


Source: Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to total shown.
Note: 1. The FY 2007-08 estimates include $25 million in non-respendable revenue pertaining to the negotiated payment due from Germany related to its share of the costs of any future cleanup of the training area at CFB Shilo of unexploded ordinance.

Table 7: Cost Estimates for CF International Operations


 

FY 2006-2007 ($Millions)

FY 2007-2008 ($Millions)
Estimates

Operations

Full DND Cost

Incremental DND Cost

Full DND Cost

Incremental DND Cost

Africa

 

 

 

 

IMATT – OP SCULPTURE (Sierra Leone)

1.8

.4

1.9

.5

MONUC – OP CROCODILE (DRC)

1.8

.4

1.7

.3

UNAMIS – OP SAFARI (Khartoum, Sudan)

3.9

1.5

5.6

1.5

AMIS – OP AUGURAL (Addis Ababa, Ethiopia)

4.3

3.1

34.1

32.5

Sub-Total

11.8

5.4

43.3

34.8

Arabian Gulf Region and South West Asia

 

 

 

 

OP ALTAIR (South-west Asia)

22.3

10.0

-  

 -  

OP ARGUS (Afghanistan/Kabul)

3.1

1.0

3.1

1.0

OP ATHENA – ISAF NATO  (Afghanistan)

1,304.3

522.0

1,591.0

846.0

OP ARCHER – OEF (Afghanistan)

699.7

280.0

5.0

1.5

OP PLATEAU (Pakistan)

.6

.6

-  

-  

UNAMI – OP IOLAUS (Iraq)

.2

.1

.2

.1

Sub-Total

2,030,200

813.7

1,599.3

848.6

Americas and the Caribbean

 

 

 

 

OP FOUNDATION (US CENTCOM Tampa)

1.8

.7

1.6

.5

MINUSTAH – OP HAMLET (Haiti)

.8

.1

.7

.1

Sub-Total

2.6

.8

2.3

.6

Europe

 

 

 

 

OP BRONZE (Bosnia) (NATO)

1.3

.3

1.1

.1

OP BOREAS (Bosnia) (EUFOR)

2.0

.8

1.3

.1

OP SEXTANT – (HMCS ATHABASKAN & HMCS IROQOIS) NATO)

35.9

17.0

26.4

12.5

Sub-Total

39.2

18.1

28.8

12.7

Middle East

 

 

 

 

UNDOF – OP DANACA (Golan Heights)

.2

.2

-  

-  

MFO (Multinational Force & Observers) – OP CALUMET (Sinai) non-UN

3.9

.7

3.7

.5

UNTSO – OP JADE (Middle East)

1.4

.3

1.2

.1

OP PROTEUS (Jerusalem)

.8

.4

.7

.3

UNFICYP – OP SNOWGOOSE (Cyprus)

.2

.1

.2

0

OP GLADIUS (Syria)

.5

.1

.5

.1

OP LION (Departure of Canadians from Lebanon)

5.8

4.1

 -  

-  

Sub-Total

12.8

5.9

6.3

1.0

Common Costs

 

 

 

 

Others (expenses related to more than one mission)

7.3

7.3

19.0

19.0

Sub-Total

7.3

7.3

19.0

19.0

Total: Operations

2,103.9

851.2

1,699.0

916.7

 

UN Revenue to CRF

MFO Revenue to DND

Est UN revenue to CRF

Est UN/MFO revenue to DND

Revenues/Recoveries

.1

12.6

.1

7.8


Source: Assistant Deputy Minister (Finance and Corporate Services)

 




Section III: Financial and Departmental Overview

Table 8: Capital Construction Program (Spending over $60M)

Projects listed below have been identified as either: (1) projects in which the estimated expenditure exceeds the delegated approval authority granted to DND by the Treasury Board ($60 million), or (2) projects in which the risk is particularly high, regardless of the estimated amounts.  All major capital construction projects fall under the Generate and Sustain Integrated Forces program activity. For fiscal 2007–2008, planned spending on major capital construction projects (>$60M) represents 30% of total planned capital spending on construction.



In Support of Generate 
and Sustain Integrated
Forces
($ Thousands)

Current
Estimated
Cost

Cumulative
Spending to
March  31,
2007

Planned
Spending 
2007–2008

Forecast
Spending 
2008–2009

Forecast
Spending 
2009–2010

Future
Years
Requirements

Alberta

Upgrade Roads/Utilities (Cold Lake)

60,820 (I)

2,290

7,860(S)

13,440(I)

8,530 (I)

28,700(I)

British Columbia

Replace “A and B” Jetty (PD)

199,760 (I)

480

1,000 (S)

1,400 (I)

2,000 (I)

194,880 (I)

FMF Cape Breton (EPA) (PI)

136,310 (I)

106,270

16,910 (S)

12,800 (I)

330 (I)

0

Colwood Refuelling Upgrade (EPA) (PI)

64,035 (S)

60,730

3,305(S)

 

 

 

New Brunswick

RTA Sedimentation Remediation (Gagetown) (PPA)

73,680 (I)

4,270

3,810 (I)

6,400 (I)

6,400 (I)

52,800 (I)

Utilities Upgrade Gagetown (PPA)

80,400 (I)

18,160

21,720 (I)

12,840 (I)

16,020 (I)

11,660 (I)

Nova Scotia

Replace Jetty NJ & NK1, Halifax

54,650 (I)

1,650

0

0

0

53,000 (I)

Newfoundland

Pleasantville Consolidation

(PPA)

88,450 (I)

1,520

4,840 (I)

17,730 (I)

18,070(I)

46,290 (I)

Quebec

5 Svc Bn Facility, Valcartier

60,800 (I)

0

4,390 (I)

27,320 (I)

21,080

7,020 (I)

Ontario

RMC Dormitories (EPA) Kingston (PI)

65,820 (S)

31,100

14,550 (S)

10,010 (S)

0

10,160(S)

Joint Experimentation Centre Ottawa (EPA) (PI)

63,920 (S)

5,560

24,890(S)

20,930 (S)

12,540 (S)

 

Various

Omnibus Cadet Support Training Centre

63,030(I)

18,160

19,630(S)

14,490(S)

10,750(S)

 

 Totals

$1,011,675

$250,190

$122,905

$137,360

$95,720

$405,500


Source: Assistant Deputy Minister – Infrastructure and Environment
*Based on date available as at 31 December 2006
Legend: 
I = Indicative Estimate
S = Substantive Estimate
OA = Options Analysis
PD = Project Definition
PI = Project Implementation
PPA = Preliminary Project Approval
EPA = Effective Project Approval

For additional information on Federal Real Property and Federal Immovables Act visit: http://laws.justice.gc.ca/en/F-8.4/index.html

Table 9: Details on Project Spending (Capital Equipment Program)

Projects listed in the table below have been identified as either: (1) projects in which the estimatedexpenditure exceeds the delegated approval authority granted to DND by the Treasury Board ($30 million with substantive cost estimates), or (2) projects in which the risk is particularly high, regardless of the estimated amounts. All major capital equipment projects fall under the Generate and Sustain Integrated Forces program activity.


Project Number Project Title
and
Phase
Current Estimated Total Cost Planned
Spending to
31 March 2007
Planned Spending
2007-2008
Planned
Spending
2008-2009
Planned
Spending
2009-2010
Future years
Requirements

Generate and Sustain Integrated Forces

 

Maritime Effects

1487

Canadian Towed Array Sonar System  (C/O)

120,926

120,651

275

0

0

0

2549

Submarine Capability Life Extension (I)

869,832

754,700

54,462

19,815

16,961

23,894

2573

Maritime Environmental Protection Project (I)

55,507

46,567

2,300

2,000

1,800

2,840

2586

Frigate Life Extension (D)

22,952

8,472

14,480

0

0

0

2640

Evolved Sea Sparrow Missiles (I)

504,000

485,194

5,253

10,146

3,407

0

2664

Advanced Electro-optic Sensor (I)

240,528

77,872

44,766

47,182

37,393

33,315

2673

Joint Support Ship (D)

37,525

10,125

27,400

0

0

0

2680

Maritime Helicopter Project (I)

3,160,300

724,088

425,841

664,497

432,590

913,284

2783

Identification Friend or Foe (I)

38,176

794

601

5,689

6,172

24,920

2796

YAG 300 Training Vessel Replacement (I)

99,020

48,127

20,687

13,471

16,735

0

 

TOTAL MARITIME EFFECTS

5,148,766

2,276,590

596,065

762,800

515,058

998,253

 

 

 

 

 

 

 

 

 

Land Effects

58

Wheeled Light Armoured Vehicle Life Extension (I)

159,250

76,211

21,533

29,662

26,789

5,055

84

Army GPS Equipment Replacement (I)

43,963

27,564

9,653

2,845

3,901

0

276

Intelligence, Surveillance, Target Acquisition & Reconnaissance (D)

134,715

101,900

23,500

9,315

0

0

731

Mobile Gun System (Work Suspended Pending Government Decision to Terminate Project) (D)

 

 

 

 

 

 

1070

Armoured Patrol Vehicle (I)

123,683

101,665

18,606

3,412

0

0

1203

Armoured Heavy Support Vehicle (I)

108,247

2,020

96,739

4,731

4,757

0

1204

Light Armoured Vehicle Remote Weapon System (I)

41,272

8,248

33,024

0

0

0

1436

Low Level Air Defence Modernization (I)

1,093,179

1,084,289

8,890

0

0

0

2058

Weapons Effect Simulator (I)

108,002

96,316

9,791

1,895

0

0

2346

Medium Support Vehicle System (D)

24,585

4,187

20,398

0

0

0

2349

Light Utility Vehicle Wheeled (I)

298,400

290,500

7,900

0

 

0

2536

Role Three Health Support (I)

42,453

40,274

2,179

0

0

0

2556

Canadian Forces Point Biological Agent Detection, Sampling and Identification Project (I)

48,155

10,220

17,935

15,000

5,000

0

2637

Armoured Personnel Carriers (I)

2,343,695

2,047,834

138,196

101,923

24,344

31,398

2652

Multi Mission Effects Vehicle (Work Suspended Pending Gov’t Decision to Terminate Project) (D)

-

-

-

-

-

0

2684

Improved Landmine Detection System (I)

33,663

32,590

1,073

0

0

0

2731

Armoured Personnel Carriers Life Extension (I)

345,939

327,272

18,667

0

0

0

 

TOTAL LAND EFFECTS

4,949,201

4,251,090

428,084

168,783

64,791

36,453

 

 

 

 

 

 

 

 

 

Air Effects

86

Operational Flight Program (I)

111,521

39,164

21,624

12,162

11,910

26,661

113

Advanced Distributed Combat Training System (I)

187,675

151,551

12,165

23,757

202

0

180

CF-18 Multi-purpose Display Group Project (I)

98,761

61,625

222

36,914

0

0

273

CF-18 Advanced Multi-role Infrared Sensor (I)

186,060

651

45,656

47,668

52,085

40,000

295

Aurora Communication Management System Replacement (I)

89,745

63,413

16,753

9,579

 

0

317

Aurora Electro-optical System Replacement (C/O)

49,162

47,457

1,705

0

0

0

410

Aurora - Flight Deck Simulator (C/O)

40,862

37,428

3,434

0

0

0

423

Aurora - Electronic Support Measures Replacements (I)

194,457

112,838

27,843

29,066

24,710

0

428

Aurora - Imaging Radar Acquisition (I)

280,018

134,678

35,061

54,207

48,238

7,834

451

Primrose Lake Evaluation Range TSPI System (I)

42,615

23,614

7,459

11,542

0

0

536

Aurora – Operator Mission Simulator (I)

44,633

6,021

2,050

9,992

8,510

18,060

583

CF18 - Engineering Change Proposal 583 (I)

987,308

830,324

23,656

67,414

65,914

0

609

Fixed Wing Search and Rescue Project (D)

8,200

4,937

3,263

 

 

0

743

Tactical Control Radar Modernization (I)

36,764

100

5,668

11,139

12,581

7,276

1007

Medium to Heavy Lift Helicopter Project (D)

8,488

5,233

3,255

0

0

0

1036

Airlift Capability Project (Tactical) (D)

6,297

2,897

3,400

0

0

0

1117

Airlift Capability Project (Strategic) (I)

1,609,000

144,000

1,060,000

405,000

0

0

1686

CF18 - Advanced Air to Air Weapon - Short Range (I)

36,685

21,262

2,090

5,333

4,000

4,000

2320

Military Automated Air Traffic System (I)

164,865

151,300

6,161

4,020

3,384

0

2371

Advanced Navigation and Precision Approach (I)

97,830

69,166

22,423

6,241

0

0

2517

Canadian Forces Utility Tactical Transport Helicopters (I)

1,093,100

1,073,018

5,800

14,282

0

0

2526

Region/Sector Air Operation Centre (I)

134,668

124,867

9,801

0

0

0

2619

Air Combat Manoeuvering Instrumentation System (I)

33,290

31,400

1,890

0

0

0

2657

CC150 Strategic Air-to-Air Refuelling (SAAR) (I)

126,253

117,300

8,953

0

0

0

2678

Canadian Search and Rescue Helicopter Project (I)

779,239

770,516

6,123

2,600

0

0

2754

CF-18 Advanced Medium Range Air-to-Air Missile (I)

138,488

70,982

6,382

11,250

10,548

39,326

5832

CF18 - Engineering Change Proposal - Phase 2 (I)

413,394

123,807

103,014

84,742

54,101

47,730

 

TOTAL AIR EFFECTS

6,999,378

4,219,549

1,445,851

846,908

296,183

190,887

 

 

 

 

 

 

 

 

 

Joint Unified and Special Operations

224

Defence Information Services Broker (I)

37,910

23,836

14,074

0

0

0

402

Canadian Forces Joint Experimentation (I)

30,992

4,432

18,753

7,807

0

0

439

Allied Vaccine Development Project (I)

31,684

20,751

1,331

3,698

3,147

2,757

625

Polar Epsilon Joint Space-Based Wide Area Surveillance and Support (I)

57,509

3,849

4,060

12,900

17,400

19,300

2272

Materiel Acquisition and Support Information System (I)

179,164

178,302

862

0

0

0

2398

Joint Command System (I)

32,965

22,394

4,377

6,194

0

0

2400

Defence Integrated Human Resource System (I)

87,200

81,588

4,677

935

0

0

2469

Canadian Forces Command System I (CFCS) (C/O)

65,416

64,983

433

0

0

0

2800

Canadian Forces Health Information System (I)

49,345

28,143

21,202

0

0

0

2803

Protected Military Satellite Communications (I)

507,543

320,685

32,393

58,310

38,592

57,563

Various

Canadian Cryptographic Modernization Project (D)

102,988

21,590

27,448

22,326

8,113

23,511

XXXX

Clothe The Soldier Omnibus Project (I)

276,617

218,897

35,290

22,430

0

0

 

TOTAL JOINT UNIFIED
AND SPECIAL OPERATIONS

1,459,333

989,450

164,900

134,600

67,252

103,131

 

 

 

 

 

 

 

 

 

TOTAL PROGRAM ACTIVITIES

18,556,678

11,736,679

2,634,900

1,913,091

943,284

1,328,724


Source: Assistant Deputy Minister (Materiel)

Legend:
D = Definition  
I = Implementation 
C/O= Close Out

 




Section III: Financial and Departmental Overview

Table 10: Status Report on Major Crown Projects 

Major Crown Projects that have cost estimates in excess of $100 million and are considered to be high risk by the Treasury Board are listed below.

  1. Frigate Life Extension (FELEX)
  2. Submarine Capability Life Extension
  3. Joint Support Ship (JSS)
  4. Maritime Helicopter Project (MHP)
  5. Armoured Personnel Carriers (APC)
  6. Mobile Gun System (MGS)
  7. Multi Mission Effects Vehicle (MMEV)
  8. Light Utility Vehicle Wheeled (LUVW)
  9. Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)
  10. Medium Support Vehicle System (MSVS)
  11. Armoured Heavy Support Vehicle System (AHSVS)
  12. Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project
  13. Canadian Search and Rescue Helicopter Project
  14. Military Automated Air Traffic System (MAATS) Project
  15. Airlift Capability Project – Tactical (ACP-T)
  16. Airlift Capability Project – Strategic (ACP-S)
  17. Medium-To Heavy-Lift Helicopter (MHLH)
  18. Protected Military Satellite Communications (PMSC)
  19. Material Acquisition And Support Information System (MASIS)
  20. Canadian Cryptographic Modernization Program (CCMP)

Frigate Life Extension (FELEX)

1.  Description: The FELEX project is primarily a risk mitigation project to ensure that the modernization of the HALIFAX Class is achieved in a timely, efficient, effective and coordinated manner. FELEX will manage to varying degrees, from total project responsibility to installation responsibility only, all work elements in the Halifax Class Modernization (HCM). As the Design Integration Authority for the HCM, FELEX is responsible for the ship level design integration of all elements of the HCM including any unique/specific engineering changes required to address integration requirements. Effective risk mitigation will be achieved through the following specific activities: scope management, design integration engineering, integrated risk management across all elements of the HCM, schedule coordination, and implementation/installation management.

2.  Project Phase: Definition

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works & Government Services Canada

Participating Departments and Agencies

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor

Fleetway Incorporated, Halifax, NS


5.  Major Milestones


Major Milestones

Date

Preliminary Project Approval (PPA) Approval

February 28, 2005

Refit Procurement Strategy Approval

September 2006

Effective Project Approval (EPA) Approval

April 2008

Refits Begin

April 2010

Refits Completed

April 2017

Project Closure

April 2018


6.  Progress Report and Explanation of Variances: The FELEX Project is presently in its definition phase. Design integration work is underway, consultation with industry has begun, a continuous risk management program has been implemented and costing efforts for the implementation phase are progressing.

Treasury Board granted original Preliminary Project Approval to the FELEX project on February 28, 2005, providing $28.0M expenditure authority for the Definition phase. The FELEX project should receive Effective Project Approval on April 1, 2008 at an estimated total cost of $1,077.0 (BY) net of GST, which includes Definition funding expenditures of $28.0M.

The FELEX project is currently running on budget. Most of the significant elements of the modernization are now in their definition phases and targeting installations in the FELEX refits. It was recognized that significant advantages could accrue from consolidating the major projects. In particular, a simplified management structure, transfer of significant integration risk to a prime contractor, greater funding flexibility and simplified accountability framework could be gained by the FELEX Project absorbing the HALIFAX Modernized Command and Control System, Radar Upgrade, Multi-Link and Identification Friend or Foe Mode S/5 Projects. This initiative is progressing and expected to be implemented in 2007 creating the HCM/FELEX Project with an estimated implementation cost of $2.7 Billion.

7.  Industrial Benefits: The definition phase of the FELEX Project has no industrial benefits implications.

Submarine Capability Life Extension

1.  Description: The Submarine Capability Life Extension (SCLE) project will replace the Oberon class submarine fleet with four existing British Upholder class (to be 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.

The project will deliver 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.

2.  Project Phase: Implementation

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works & Government Services Canada (PWGSC)

Participating Department

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor

The Government of the United Kingdom (UK) of Great Britain and Northern Ireland, Ministry of Defence, UK

Major Sub-Contractor

British Aerospace Engineering (BAE) Marine Systems (formerly Vickers Shipbuilding and Engineering Limited (VSEL)/Marconi Marine) Cumbria, UK


5.  Major Milestones


Major Milestones

Date

Treasury Board Approval

June 4, 1998

Main Contract Award

July 2, 1998

Initial Support Contract Award

July 2, 1998

Commence lease 1st submarine

October 2000

Commence lease 2nd submarine

October 2001

Commence lease 3rd submarine

February 2003

Commence lease 4th submarine

October 2004

Relocate trainers to Canada

June 2003

Lease completed, submarines purchased

April 2009


6.  Progress Report and Explanation of Variances: Canada has accepted all four Upholder submarines from the United Kingdom.

a.   Her Majesty’s Canadian Ship (HMCS) Victoria finalized her Canadianization in early 2003 and completed her transit to the west coast of Canada in August 2003. She completed a Repair Work Period in May 2004. Due to the incident onboard HMCS Chicoutimi, the operational pause prevented Victoria from going to sea. Once lifted, Victoria continued operations by progressing her Operational Trials and Evaluation (OT & E) work in defining the vessels weapons envelope. In June 2005 Victoria entered her Extended Docking Work Period (EDWP), currently being conducted in Fleet Maintenance Facility (FMF) Cape Breton, which is scheduled to complete June 2008.

b.   HMCS Windsor completed her Canadianization in December 2003. She had begun participating in east coast exercises and patrols during the summer of 2004. Due to the incident onboard HMCS Chicoutimi, the operational pause prevented Windsor from going to sea. Once lifted, she continued with operations on the East Coast. Windsor is due to enter EDWP in FMF Cape Scott in January 2007.

c.   HMCS Corner Brook started her Canadianization work in Halifax on January 5, 2004. The modifications required from the Chicoutimi incident were completed as part of her Canadianization work completed during the summer of 2006. HMCS Corner Brook is now undergoing post maintenance sea trials and is scheduled to participate in exercises and patrols in 2007.

d.   HMCS Chicoutimi was handed over to Canada October 2, 2004. On October 5, 2004, while en-route to Canada, she had an electrical incident at sea and was returned to Canada via sealift. She was in Halifax Shipyard Limited (HSL) undergoing damage repairs and Canadianization work, which was expected to be complete winter 2007. This Extended Docking Repair Work Period (EDRWP) has been cancelled and the submarine commenced an Extended Limited Maintenance Period (ELMP). Work is now ongoing to determine the full scope for ELMP. Some Canadianization Work Period (CWP) Engineering Changes (ECs) are to be implemented in follow-on EDWP, which is scheduled for fiscal 2011–2012.

Effective Project approval was granted to the SCLE project on December 6, 1998 at an estimated total cost of $812.0M (BY) net of GST. The expenditure ceiling was increased $84.8M by Treasury Board on June 18, 2003 (TB Minute 830633) to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. SCLE project is currently running on budget.

7.  Industrial Benefits: This project will provide an estimated $200M in direct and indirect industrial benefits. This includes Canadian modifications to the submarines and the relocation of the simulators and trainers to Canada. A further $100M in industrial benefits has taken the form of waivers to provide industrial offsets in the United Kingdom for Canadian companies bidding on defence contracts.

Joint Support Ship (JSS)

1.  Description: The JSS is a Major Crown Project which will maintain the Canadian Navy’s current naval task group logistic support, while ensuring that the Canadian Forces has an adequate, assured strategic sealift capability to allow it to deploy and sustain operations in support of government policy and enhancing Canada's capability for joint command and control of forces ashore. This will be accomplished by awarding two separate contracts to one contractor for the design and construction in Canada of three vessels and another for In-Service Support of the units throughout their operational life. The ships will replace the two ageing Protecteur class support ship currently in service on the east and west coast.

2.  Project Phase: Definition

3.  Leading and Participating Departments and Agencies:


Lead Department or Agency:

Department of National Defence

Contracting Authority:

Public Works and Government Services Canada

Participating Departments and Agencies:

Industry Canada and the regional agencies


4.  Prime and Major Sub-Contractors: No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval, planned for 2008.

5.  Major Milestones:


Major Milestones

Date

Memo to Cabinet

April 14, 2004

SS (PPA) - Approval

November 24, 2004

Invitation for Bids Posted on MERX

June 27, 2006

Project Definition – Contract Award

November 24, 2006

SS (EPA) - Approval

2008

Project Implementation - Contract Award

2008

First Delivery

2012

Initial Operational Capability (IOC)

2013

Full Operational Capability (FOC)

2016

Project Close-out  

2016


6.  Progress Report and Explanations of Variances: The project continues to progress steadily since obtaining Preliminary Project Approval in November 2004. The Minister of Public Works and Government Services Canada (PWGSC) awarded two Project Definition contracts on November 24, 2006. Treasury Board granted expenditure authority of $72.2M(BY), full up including GST, for the pre-qualification and definition phases. Treasury Board also acknowledged the indicative full up cost of $2,012.9M(BY), including GST, for implementation.

7.  Industrial Benefits: Target Industrial Regional Benefits (IRBs) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support contract values.

Maritime Helicopter Project (MHP)

1.  Description: The purpose of this project 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.

2.  Project Phase: Implementation

3.  Leading and Participating Departments and Agencies:


Lead Department or Agency:

Department of National Defence

Contracting Authority:

Public Works and Government Services Canada

Participating Departments and Agencies:

Industry Canada and its Regional Agencies


4.  Prime and Major Sub-Contractors:


Prime Contractor

Sikorsky International Operations Incorporated, Stratford, Connecticut, USA

Sub-Contractors

General Dynamics Canada, L-3 MAS Canada, Montréal, Québec


5.  Major Milestones:


Major Milestones

Date

SS (PPA) - Approval

June 18, 2003

Invitations for Bids Posted on MERX

December 16, 2003

SS (EPA) - Approval

November 22, 2004

Contract Award

November 23, 2004

First Delivery

November 30, 2008

Initial Operational Capability (IOC)

November 30, 2009

Full Operational Capability (FOC)

February 28, 2011

Project Close-out   

2013


6.  Progress Report and Explanations of Variances: In November 2006, the project marked the two-year milestone in the implementation phase. During this period, design and engineering work progressed mostly on schedule. Manufacturing of aircraft components, as well as construction of the Training Centre building in Shearwater, NS, have also progressed well. The delivery of the aircrafts shown above in the milestones table may be delayed by the six-week labour strike at the Contractor’s manufacturing facilities during February-April 2006. Negotiations with the Contractor are ongoing on its request for an excusable delay as per the terms of the contract. Although it is likely that the Crown will grant the requested relief, the Contractor has indicated that it will strive to make up for the lost time and deliver the subsequent helicopters so that the last helicopter is delivered as per the original schedule. The project is currently running within its authorized budget.

7.  Industrial Benefits: The Industrial Regional Benefits is equivalent to 100% of the contract value for the capital acquisition and approximately 80% of the contract value for the In-Service Support.


Region

Capital Acquisition

($ millions)

In-Service Support

($ millions)

Atlantic Canada

239.1

825.9

Quebec

555.8

399.2

Northern Ontario

3.2

7.6

Ontario (excluding Northern Ontario)

924.3

1,073.2

Western Canada

210.6

181.4

Unallocated

10.0

105.7

Total

$1,943.0

$2,593.0


Armoured Personnel Carriers (APC)

1.   Description: The Armoured Personnel Carrier (APC) is essential for all foreseeable Canadian Forces roles, including territorial defence, UN peacekeeping and peace enforcement operations, other international commitments, and Aid of the Civil Power. The existing APC fleet does not meet the minimum operational requirements when compared to the modern, technically sophisticated weapons and vehicles Canadian soldiers encounter during operations. They suffer shortcomings in protection, self-defence capability, mobility, carrying capacity and growth potential. The APC Project is fielding a fleet of modern, wheeled, armoured personnel carriers. 651 Light Armoured Vehicles (LAV) III are to be procured in six configurations; Infantry Section Carrier, Command Post, Engineer, Forward Observation Officer, and TOW (Tube Launched, Optically Tracked, Wire Guided) Under Armour, and LAV III Less Kits.

2.  Project Phase: Implementation

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works and Government Services Canada

Participating Departments and Agencies

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor

General Dynamics Land Systems - Canada, London, ON


5.   Major Milestones


Major Milestones

Date

Treasury Board approval

December 1995

Contract award

December 1996

First vehicle delivery

July 1998

Exercise of first option

July 15, 1998

Exercise of second option

July 15, 1999

Exercise of third option

July 15, 1999

Last vehicle delivery

August 31, 2007

Project completed

March 31, 2012


6.   Progress Report and Explanation 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, 120 and 171 APCs. All three options have been exercised. A total of 607 vehicles have been delivered to date. The remaining vehicles will be delivered within the next year.

The vehicles are equipped and configured to meet the demands of operational employment at the battle group level by Land Force infantry elements. The APC vehicle will provide a rapid response capability, both strategic and tactical, allowing the Canadian Forces to meet all tasks currently envisaged.

On March 29, 2004, Treasury Board authorized $129M for indoor accommodation for LAV III to facilitate regular maintenance and training programs, and prevent any deterioration that would result from outdoor storage. Construction will take place in six locations: Edmonton, Wainwright, Petawawa, Montréal, Valcartier, and Gagetown. Construction activities are scheduled between 2006 and 2011. This portion of the project can then close in March 2012.

7.   Industrial Benefits: This project includes the following regional commitments:


Region

Cash Benefits

Atlantic Canada

$150.7M

Québec

$149.2M

Western Canada

$150.5M

Small Business

$210.3M


Mobile Gun System (MGS)

1.  Description: It is the army’s intent to transform into a medium-weight, information age force. Key features of a medium weight force are global deployability, operational mobility and flexibility. Currently, the Land Force is primarily equipped with a fleet of multipurpose combat capable wheeled Light Armoured Vehicles (LAVs). Wheeled platforms provide broad operational capabilities and a range of transportability options.

The MGS project was to deliver 66 vehicles with associated integrated logistics support. These vehicles were to be fully developed with minimal modifications required to accommodate unique Canadian equipment, such as the existing communications suites. It was intended to procure all 66 vehicles as part of the Effective Project Approval (EPA) phase and in joint production with the US Army for economies of scale and effort.

In the spring of 2006, the Army recommended the termination of the Mobile Gun System project. A Government decision on this recommendation is forthcoming.

2.  Project Phase: Definition

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works and Government Services Canada

Participating Department

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor

General Dynamics Land Systems (GDLS), London, ON


5.  Major Milestones


Major Milestones

Date

Treasury Board (TB) Preliminary Project Approval (PPA)

March 2004

Contract negotiations complete

To be determined

Treasury Board Effective Project Approval (EPA)

To be determined

First Vehicle Delivery (Forecast)

To be determined

Implementation – Initial Operational Capability (Forecast)

To be determined

Implementation – Full Operational Capability (Forecast)

To be determined

Project completed (Forecast)

To be determined


6.  Progress Report and Explanation of Variances: All work on the Mobile Gun System has been suspended pending a Government decision on project termination. All personnel have been transferred to other Departmental priorities/programs and actions are currently underway to minimize Government liabilities.

7.  Industrial Benefits: This project would have included the following industrial and regional benefits:

Target Industrial Regional Benefits for this project were 100% of contract value, with 50% direct.

Multi Mission Effects Vehicle (MMEV)

1.  Description: Thirty-six Air Defence Anti-Tank Systems (ADATS) entered service in the CF in the late 1980s and early 1990s. Since that time, the Army Strategy has refocused the Army’s efforts into a transformation similar to that being undertaken in the US Army. This project aims to provide an information age direct fire system, which possesses increased lethality, agility and survivability on the battlefield in support of multi-purpose combat forces. The MMEV will require increased precision and accuracy and an automated command, control and communications network capable of the receipt from, and input into, joint and allied tactical data networks. The MMEV must be effective against both ground and air threats including tanks, light armoured vehicles, attack helicopters, Unmanned Aerial Vehicles (UAVs) including armed UAVs, cruise missiles, precision guided munitions and fighter ground attack aircraft.

Planned deliverables include 33 MMEV’s to replace ADATS. They will be a strategically mobile, wheeled LAV mounted direct fire system capable of the delivery of precision guided, long range munitions in both the ground, direct fire and air defence roles. Deliverables could include the replacement of active sensors (Radar, Electro-Optics), upgrading existing sub-assemblies and components with industrially supportable latest generation technologies, introduction of new training simulators, and the introduction of a ground-based sensor to mounting the ADATS onto the LAV III chassis. Deliverables will also include the associated integrated logistics support.

In the spring of 2006, the Army recommended the termination of the Multi Mission Effects Vehicle project. A Government decision on this recommendation is pending.

2.  Project Phase: Definition

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works and Government Services Canada

Participating Department

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor

Oerlikon Contraves Canada, St-Jean sur Richelieu, QC


5.  Major Milestones


Major Milestones

Date

Treasury Board Preliminary Project Approval

September 7, 2005

Treasury Board Effective Project Approval

To be determined

Implementation Contract Awarded

To be determined

Implementation – Initial Operational Capability

To be determined

Implementation – Full Operational Capability

To be determined

Project completed

To be determined


6.  Progress Report and Explanation of Variances: MMEV was granted Treasury Board (TB) Preliminary Project Approval (PPA) on September 7, 2005 and was announced on September 22, 2005. Public Works Government Services Canada is waiting for TB approval to commence contract negotiations for the PPA phase with Oerlikon Contraves Canada. First possible vehicle delivery was intended for early 2010 and an Initial Operational Capability (IOC) in late 2010. The total Estimated Project Cost is $753.4M (GST included).

All work on the Multi Mission effects Vehicle has been suspended pending a Government decision on project termination. All personnel have been transferred to other Departmental priorities/programs and actions are currently underway to minimize Government liabilities.

7.  Industrial Benefits: To be determined

Light Utility Vehicle Wheeled (LUVW)

1.  Description: Light utility vehicles 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 liaison within and between field formations.

The LUVW Project mandate is to replace the current fleet of Canadian Iltis vehicles with two separate vehicle acquisitions: 1,159 Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and 170 Armour Protection Systems ($241.4M), for use by field force units; and 1,061 militarized commercial off-the-shelf (Mil COTS) vehicles (GM Silverado) ($65.4M) for use primarily by the Reserve Force for a total project cost of $306.8M.

2.  Project Phase: Implementation

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works and Government Services Canada

Participating Department

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor (Phase 1) SMP

Mercedes Benz Canada, Toronto ON

Prime Contractor (Phase 2) Mil-COTS

General Motors Defense Military Trucks, Troy, Michigan, USA


5.  Major Milestones


Major Milestones

Date

Major Milestone (Phase 1) SMP

 

Award of Contract

October 21, 2003

First Full Production Delivery

March 2004

Effective Project Completion

July 2007

Major Milestone (Phase 2) Mil COTS

 

Award of Contract

October 2002

First Full Production Delivery

October 2003

Final Production Delivery

December 2004

Effective Project Completion

July 2007


6.  Progress Report and Explanation of Variances: Project is in full implementation. The LUVW SMP (G Wagon) contract was awarded to Mercedes Benz Canada on October 21, 2003. Fielding of the G Wagon started in March 2004, five months ahead of schedule. A total of 60 basic and 24 C&R/MP (20 Command & Reconnaissance and 4 Military Police) LUVW G Wagons were delivered directly from the manufacturer’s plant in Graz, Austria to Kabul. In 2005 and early 2006, an additional 86 G Wagons were delivered to Kandahar. Delivery of all armour kits was completed in Oct 2005 and delivery of the total quantity of 1,159 vehicles was completed in November 2006.

The LUVW Mil COTS contract was awarded to General Motors in October 2002 with the first vehicle delivery received in October 2003. All 1,061 vehicles have been delivered as of December 2004.

There were options on both the LUVW SMP and Mil COTS contracts; however, they have both been exercised and the option quantities are already reflected in the quantities detailed above.

The level of confidence in the LUVW is high. User feedback from Op ATHENA/Op ARCHER on the G Wagon has been positive and, even with the high mileage being placed on the vehicles in Afghanistan; the fleet serviceability remains steady at 95%. Due to the optional purchase of 357 additional G Wagons, the project had to be extended 1 year and effective project closeout is now scheduled for July 2007.

In September 2006, the Senior Review Board of the Department of National Defence authorized the transfer of $1.5 M of unspent funds from the MILCOTS account and $1M from contingency to the SMP account (for a total of $2.5 M increase in the SMP account). This money was required to offset the increase in the cost of the EURO that has increased the cost of Design Change Requests, spare parts and special tools (none of these items was contracted for at a fixed exchange rate).

The remaining high cost items include the delivery of tech data package, ILS manuals, special tools, establishment of an IRRP (Inspect, Repair as Required and Paint) repair facility and migration of the Interim Support Contract into a Long Term Support Contract. Full Operational Capability will be declared after delivery of the special tools. This is estimated to take place April/May 2007. The project will reduce to a staff of three in July 2007 at which time effective closure will take place.

7.  Industrial Benefits: The industrial benefits are required for Phase 1 for a value 100% of the contract value. Latest report from Industry Canada indicates that Mercedes Benz Canada has exceeded the industrial regional benefit goals by $300M. There are no mandated industrial benefits for the Mil COTS contract.

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)

1.  Description: 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. The project includes the acquisition of Unmanned Aerial Vehicles (UAV), Weapon Locating Sensors (WLS) and transformation or enhancement of existing sensor platforms to include Electronic Warfare (EW), Light Armoured Vehicle III, Coyote Reconnaissance Vehicle, Ground Based Air Defence, Geomatic support and Tactical Meteorology Systems. ISTAR is an omnibus project that received Treasury Board approval for definition phase activity on April 3, 2003. Implementation through sub-projects is anticipated upon completion of the definition activities. Although initial delivery of equipment was estimated to occur sometime in fiscal year 2005–2006, the Unforecasted Operational Requirement (UOR) for an UAV and other sensor upgrades has resulted in the delivery of a partial tactical UAV and EW capability in Afghanistan in 2003–2004. Early deliveries of ISTAR capabilities for Op ARCHER UORs will continue during 2007. 

2.  Project Phase: Definition

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works & Government Services Canada

Participating Department

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor for the UAV UOR Op Athena sub-project

Oerlikon Contraves Inc., Saint-Jean, QC

Major Sub-Contractor for the UAV UOR Op Athena sub-project

SAGEM SA, France

Prime Contractor for BLOS UOR OP Archer

ND Satcom, Germany

Prime Contractors for MEWT EW UOR OP Archer

Agilent Technologies, Ottawa, ON
Digital Receiver Technology Inc, Maryland USA
Signal Technology Associates Inc., Kanata, ON
Xwave, Stittsville, Ontario

Prime Contractor for Mini UAV UOR OP Archer

Thales Canada, Ottawa, ON

Major Sub-contractor for the Mini UAV UOR OP Archer

Elbit Systems, Israel

Prime Contractor for Acoustic Weapon

SELEX Sensors & Airborne Systems Ltd, Basildon

Locating System AWLS OP Archer

Essex, United Kingdom


5.   Major Milestones   Prime and Major Sub-Contractors


Major Milestones

Date

Treasury Board Preliminary Project Approval

April 3, 2003

MND Approval UAV UOR

July 2003

Treasury Board Project Approval in Arrears UAV UOR

August 2005

Communications & Data Link Component Treasury Board Effective Project Approval

December 2006

Command and Control (C2) Treasury Board Effective Project Approval

March 2007

EW Sensors Treasury Board Effective Project Approval Phase 1

AL 1

November 2005

March 2007

In Service Sensors Enhancement Treasury Board Effective Project Approval

November 2007

WLS Sensor Component Treasury Board Effective Project Approval

November 2007

WLS Acoustic Sensor

IOC

November 2005

February 2007

Family of Mini UAV Treasury Board Effective Project Approval

AL 1

November 2005

March 2007

Deliveries Complete all ISTAR sub-projects

2012

Project Completion

March 2013


6.  Progress Report and Explanations of Variances: Because the ISTAR project staffs are managing the UOR procurement for Op ATHENA and OP ARCHER, some of the definition studies have necessarily been delayed and it is possible that there will be as much as a year’s delay in achieving some of the ISTAR project milestones. However, initial capabilities have been procured and the overall project is expected to complete one year ahead of the original schedule.

Delivery of equipment actually started with UORs in Op Athena, and final deliveries are scheduled out to 2012. The currently approved sub-projects in support of Op Athena and Op Archer are:

a.   UAV UOR Op Athena

b.   Beyond Line of Sight Satellite (BLOS) Op Archer

c.   Mobile Electronic Warfare Team (MEWT) OP Archer

d.   Mini UAV UOR Op Archer

e.   Acoustic Weapon Locating System (AWLS) Op Archer   

7.  Industrial Benefits: A competitive procurement process was held for the UAV UOR.   Oerlikon Contraves won with Sagem SA as the manufacturer of the SPERWER UAV system. How Canadian industry in Canada will benefit from the ISTAR project will be determined during the approval of the implementation procurement strategy for each sub-project.

Medium Support Vehicle System (MSVS)

1.  Description: The MLVW is nearing the end of its service life. The MLVW has the most wide-ranging support and operational tasks of all fleets. It is the backbone of the Combat Service Support function. The MLVW fleet was acquired in 1982–1983 with an expected service life of 15 years. The age and heavy usage of the vehicle has resulted in a five-fold increase in the maintenance cost per kilometer. Corrosion has become such a problem that a corrective control program has been conducted, which has been followed by a limited recurring corrosion control spray program with the aim of keeping the fleet in service until 2008. After that, the fleet will become increasingly unsupportable due to a combination of various problems including parts availability, continued advancement of corrosion, performance of the brake system and vehicle overloading. The Medium Support Vehicle System Project will acquire a mix of up to 1,500 medium-sized standard military pattern trucks including 300 companion military pattern trailers,

800 commercial trucks with militarized components, 1,000 associated special equipment vehicle kits, and logistics support, at an estimated cost of approximately $1.1 billion (net of GST). Cost, cash-flow and schedule estimates will be further refined before the Minister of National Defence seeks effective project approval from Treasury Board.

2.  Project Phase: Definition

3.  Leading and Participating Departments and Agencies:


Lead Department or Agency:

Department of National Defence

Contracting Authority:

Public Works and Government Services Canada

Participating Departments and Agencies:

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors: No prime contractor has been selected. Final selection of the prime contractor will occur at effective project approval.

5.  Major Milestones:


Major Milestones

Date

Memorandum to Cabinet

June 2006

SS (PPA) - Approval

June 22, 2006

Invitation for Bids Posted on MERX - Militarized Commercial Pattern Vehicles

April 2007

Invitation for Bids Posted on MERX - Standard Military Pattern Vehicles

July 2007

Invitation for Bids Posted on MERX - Family of Baseline Shelter

March 2007

Invitation for Bids Posted on MERX - Special Equipment Vehicle Kits

September 2007

SS (EPA) - Approval

September 2007

Contract Award - Militarized Commercial Pattern Vehicles

September 2007

Contract Award - Standard Military Pattern

March 2008

Contract Award – Family of Baseline Shelter

December 2007

Contract Award - Special Equipment Vehicle Kits  

June 2008

First Delivery - Militarized Commercial Pattern Vehicles

June 2008

First Delivery - Standard Military Pattern

December 2008

First Delivery - Family of Baseline Shelter

March 2008

First Delivery - Special Equipment Vehicle Kits

September 2008

Delivery Complete - Militarized Commercial Pattern Vehicle

December 2009

Delivery Complete - Standard Military Pattern

December 2010

Delivery Complete – Family of Baseline Shelter

December 2009

Delivery Complete - Special Equipment Vehicle Kits

December 2011

Project Close Out

March 2012


6.  Progress Report and Explanations of Variances: Treasury Board granted Preliminary Project Approval on June 22, 2006. The MSVS Project has entered its definition phase. Design integration work is underway in addition to consultation with industry, development and release of Requests for Proposal. A continuous risk management program has been implemented and costing efforts for the implementation phase are progressing.

With Preliminary Project Approval, Treasury Board provided the MSVS project $25,799K ($BY) Expenditure Authority for the Definition phase. The MSVS project should receive Effective Project Approval in September 2007.

7.  Industrial Benefits: The target Industrial Regional Benefits (IRBs) is equivalent to 100% of the contract value for the capital acquisition.

Armoured Heavy Support Vehicle System (AHSVS)

1.  Description: The Armoured Heavy Support Vehicle System (AHSVS) is an Immediate Operational Requirement in response to an existing capability deficiency and concurrent threats from Improvised Explosive Devices (IEDs) and ballistic attacks facing Op ATHENA in Afghanistan, directly impacting soldier safety and survivability.

Three variants, in support of the current fleet and new vehicles, are requested; Wrecker, Palletized Loading System and Tractor.

2.  Project Phase: Definition

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works & Government Services Canada

Participating Department

Industry Canada


4.  Prime and Major Sub-Contractors: The Project has qualified four potential bidders through a Request for Price & Availability (P&A) in August 2006. A two phase Statement of Interest and Qualifications (SOIQ) closed on October 31, 2006, comprised of a request for Test Plans/Certification of Test Results and, an SOIQ response to forty-three mandatory requirements resulted in no qualified bidders. Site visits to the four potential suppliers submitting on the P&A are currently underway in order to validate the AHSVS requirement in relation to the Military off the shelf (MOTS) vehicles offered by industry and, to verify the level of protection and test results achievable by industry in relation to Mine, Ballistic and IED protection. Once revisions are finalized, the RFP and associated evaluation methodology will be issued in January 2007 to the four suppliers responding to the P&A.

5.  Major Milestones


Request for Price & Availability

August 2006

Treasury Board Approval

October 2006

Statement of Interest and Qualifications

October 2006

Request for Proposal Issue

January 2007

Contract Award

February 2007

Initial Operating Capability

October 2007

Full Operational Capability

January 2008


6.  Progress report and Explanation of Variances: Treasury Board granted approval for an initial 82 vehicles with all variants, with a remaining option for additional 26 vehicles and related equipment. A Treasury Board amendment seeking expenditure authority for the option for purchase of required trailers is anticipated to be prepared in January 2007.

7.  Industrial and Regional Benefits (IRB): An IRB obligation of 100% of the contract value with no predetermined targets for direct transactions will be requested with bidders to propose a mixture of direct and indirect transactions based on supplier capability given requirement and timelines.

Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project

1.  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 Force, Air Force, Deputy Chief of Defence Staff (DCDS) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. It replaces 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 fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements of the CFUTTH to include the tactical lift of troops and equipment, logistical lift, reconnaissance and surveillance, direction and control of fire, aero-medical support and casualty evacuation, command and liaison, and communications assistance. These mission capabilities are employed in support of DND operational commitments, United Nations peacekeeping missions, and support to other Government Departments and Agencies, including Aid of the Civil Power.  

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.

2.  Project Phase: Implementation

3.  Lead and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works and Government Services Canada

Participating Department

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor

Bell Helicopter Textron Canada, Mirabel, QC

Major Sub-Contractors

Pratt & Whitney Canada, Montréal, QC
BAE Systems Canada Inc., Montréal, QC
CAE Ltd, Montréal, QC


5.  Major Milestones


Major Milestones

Date

Contract Award

September 1992

Critical Design Review

April 1993

First Helicopter Delivery

March 1995

Simulator Acceptance

June1996

Last Helicopter Delivery

February 1998

Project Completion

March 2009


6.   Progress Report and Explanation of Variances: This project receivedCabinet approval on April 7, 1992 and Treasury Board approval on September 8, 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 March 2007 for approximately $200M less than the initial Treasury Board budget approval.

7.   Industrial Benefits: Bell Helicopter Textron Canada has committed to achieving $506.7M in Canadian value-added industrial regional benefits as follows:


Region

Cash Benefits

East

10.0M

Québec

 420.2M

Ontario

 32.1M

West

12.0M

Unallocated

32.4M

Total

$506.7M


To date, Bell Helicopter has claimed $289.5M direct and $252.1M indirect industrial regional benefits, totalling $541.6M, representing 107% of the overall commitment.

Canadian Search and Rescue Helicopter Project

1.   Description: Maintaining a national search and rescue capability is a direct departmental objective. 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 address the operational deficiencies of the CH-113 Labrador fleet, eliminate the supportability difficulties of these older airframes, and provide a fleet size sufficient for continuous operations well into the 21st century.

2.  Project Phase: Completed

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works and Government Services Canada

Participating Department

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor

AgustaWestland International Limited (formerly E.H. Industries Ltd. (EHI)),
Farnborough, United Kingdom

Major Sub-Contractors

GKN Westland Helicopters, United Kingdom
Agusta Spa, Italy
General Electric Canada Inc., Canada


5.  Major Milestones


Major Milestones

Date

Treasury Board Effective Project Approval

April 2, 1998

Contract Award

April 6, 1998

First Aircraft Delivery (at plant in Italy)

September 2001

Final Aircraft Delivery (at plant in Italy)

July 2003

Project Completion

Mar 2009


6.   Progress Report and Explanation of Variances: Treasury Board (TB) granted original Preliminary Project Approval on February 8, 1996, providing Expenditure Authority for $3.3M for Definition Phase activities and approval-in-principle for $704.2M. An amendment to the Preliminary Project Approval was granted on April 24, 1997, providing Expenditure Authority for $6.4M for total Definition Phase activities and approval-in-principle for $708.2M.

Treasury Board gave Effective Project Approval on April 2, 1998 including expenditure authority for $788.0M (BY) net of GST, which included definition funding expenditures of $6.4M.

On April 6, 1998, E.H. Industries (EHI) Limited (renamed AgustaWestland International Ltd (AWIL)) was contracted to supply 15 AW511 Cormorant search and rescue helicopters, along with initial logistics support to the Canadian Forces. The initial support package includes training, publications, warranty, a repair and overhaul program providing coverage until October 2004, and software support until 2006.

The project has procured the required aircraft spares, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for the four Canadian Forces 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.

As of July 2003, all 15 Cormorant helicopters have been delivered. Spares parts and infrastructure are in place to support operations. Initial training is complete. The Cormorant have been operational at the squadrons in Comox, BC, Gander, NF, Greenwood, NS and Trenton, ON. However, CH149 operations at 424 Squadron in Trenton have been suspended temporarily due to the lack of aircraft availability and difficulty to maintain adequate aircrew training.

7.   Industrial Benefits: The contractor (AWIL) has committed to providing direct and indirect industrial benefits valued at $629.8M, to be completed within eight years from the date of contract award. It is estimated that these benefits will create or continue roughly 5,000 person-years of employment in Canada. Canadian industry in all regions of Canada will benefit from the project. The contractor has completed its obligations to Canada in regard to Industrial and Regional Benefits under the CSH contract. Small businesses in Canada will also benefit from the project by the placing of $67.0M in orders.


Region

Cash Benefits

Atlantic Canada

43.1M

Québec

317.7M

Ontario

146.5M

Western Canada

86.2M

Unallocated

36.3M

Total

$629.8M


Military Automated Air Traffic System (MAATS) Project

1.  Description: A national air traffic system project to automate air traffic services has been initiated by Transport Canada (now NAV CANADA). To ensure that military air operations continue to function effectively, remain compatible with the national system, and keep pace with these enhancements, the Department of National Defence and the Canadian Forces established the Military Automated Air Traffic System (MAATS) Project. The project directly supports the defence objective of conducting air traffic control operations.

The MAATS project will provide the essential equipment and system interfaces necessary to automate data interchange between applications. The project will deliver a stable, sustainable, and operational Air Traffic Management System (ATMS) while providing as much integration as possible with NAV Canada’s Canadian Automated Air Traffic System (CAATS). Where equipment or system interfaces are not currently available, new equipment will be installed. All existing Defence radar systems will be retained and interfaced to the MAATS as appropriate.

2.  Project Phase: Implementation

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works Government Services Canada

Participating Department

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors


Prime Contractor

Raytheon Canada Limited, Richmond, BC
NavCanada, Ottawa, ON

Major Sub-Contractors

Hewlett Packard Canada Ltd, Ottawa ON
CVDS, Montréal PQ
Frequentis Canada Ltd, Ottawa ON


5.  Major Milestones


Major Milestones

Date

Treasury Board Effective Project Approval

July 1993

Contract Award

January 1994

Preliminary Design Review

March 2000

Critical Design Review

January 2001

Factory Acceptance Test

November 2001

Initial Delivery

April 2003

Contract Complete

December 2004

Initial Operational Capability (IOC) Montreal

October 2008

Full Operational Capability (FOC) Edmonton

September 2009

Project complete

March 2010


6.  Progress Report and Explanation of Variances. Treasury Board initially approved the project with an estimated cost of $179.2M. The project funding was reduced by $15M following departmental review. Partial return of funding was approved at the December 2003 Senior Review Board (SRB). Current departmental funding is $169.2M.

As briefed at the last SRB on 30 June 2006, the MAATS project objectives were declared unachievable within the existing funding envelope and a number of alternative options were presented. PMO MAATS’ recommendation was to replace the implemented MAATS equipment with an “in-house” solution coined Phoenix. Although the final decision as to the location of military Instrument Flight Rules (IFR) operations has yet to be confirmed, the recommended option, which included installation at the Military Traffic Control Centres (MTCCs) in Montréal and Edmonton, was presented to and endorsed by the PMB on September 15, 2006. The decision was made to de-link the project from CAATS and concentrate on re-vitalization and integration of ATC information sources. The Phoenix solution upgrades the current Air Traffic Management System including the Radar Processor, Navigational Aids and Meteorological Sub-System (NAMS), Air Movement Statistics Package and Flight Data System. It is based on the proven Radar Processing Display System II (RPDS II) platform, which has been certified for Operational Air Worthiness and is built on standard COTS hardware and open source software. Installation of Phoenix equipment at each Sensor Site will be completed byFall 2007. Initial Operational Capability (IOC) will be declared at Montreal after the three Eastern sites (Greenwood, Bagotville, and Trenton) are transitioned to Montreal MTCC in October 2008. The infrastructure preparation in Edmonton will commence in the summer of 2008 and Full Operational Capability (FOC) will be declared after the transition of the three Western sites (Comox, Moose Jaw, and Cold Lake) to Edmonton in September 2009. Actual close out activities, including a project completion report to Treasury Board will be completed in fiscal 2009–2010.

7.  Industrial Benefits. Canadian industry in the following regions of Canada will benefit from the MAATS project.


Region

Cash Benefits

Atlantic Canada

1.6M

Québec

1.0M

Ontario

1.8M

Western Canada

50.2M

Unallocated

TBD

Total

$54.6M


Airlift Capability Project – Tactical (ACP-T)

1.  Description: The objective of the Airlift Capability Project – Tactical is to ensure a continued tactical airlift capability. In combination with the Fixed Wing Search and Rescue project, this project will replace the Canadian Forces’ aging CC 130E/H fleet. This project will provide the Canadian Forces with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.

2.  Project Phase: Definition

3.  Leading and Participating Departments and Agencies:


Lead Department or Agency:

Department of National Defence

Contracting Authority:

Public Works and Government Services Canada

Participating Departments and Agencies:

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors:


Prime Contractor:

Lockheed Martin Aeronautics Company


5.  Major Milestones:


Major Milestones

Date

Memo to Cabinet

June 23, 2006

SS (PPA) - Approval

June 23, 2006

Solicitation of Interest and Qualification (SOIQ)

September 1, 2006

Invitation for Bids Posted on MERX

March 2007

SS (EPA) - Approval

Summer 2007

Contract Award

Summer 2007

First Delivery

Summer 2010

Initial Operational Capability (IOC)

Winter 2010–2011

Full Operational Capability (FOC)

Winter 2012–2013

Project Close-out  

Summer 2013


6.  Progress Report and Explanations of Variances: Responses to the SOIQ have been evaluated and the Lockheed Martin C 130 J-30 model has been selected as the only qualified aircraft.

The project office is completingdocumentation including those required for the issue of the Request for Proposal to the qualified supplier.

7.  Industrial Benefits: This procurement will provide industrial regional benefits equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. For the integrated in-service support portion, 75% of the contract value will be direct work performed by a Canadian company. The selected contractor will be required to identify, as specific work packages, 60% of the total acquisition commitment. These Industrial and Regional Benefits requirements will be negotiated and accepted by Industry Canada prior to contract signing.

Airlift Capability Project – Strategic (ACP-S)

1.  Description: The objective of the Airlift Capability Project - Strategic is to acquire four new aircraft that will provide the global reach and speed necessary to operate effectively over long distances to deliver personnel and cargo directly into a theatre of operations, including a threat environment.

2.  Project Phase: Implementation

3.  Leading and Participating Departments and Agencies:


Lead Department or Agency:

Department of National Defence

Contracting Authority:

Public Works and Government Services Canada

Participating Departments and Agencies:

Industry Canada and its Regional Agencies


4.  Prime and Major Sub-Contractors:


Prime Contractor:

The Boeing Company, St-Louis, Missouri, USA


5.  Major Milestones:


Major Milestones

Date

Memo to Cabinet

June 6, 2006

Synopsis Sheet (Effective Project Approval)

June 22, 2006

Advanced Contract Award Notice Posted on MERX

July 5, 2006

Contract Award

February 1, 2007

Delivery First Aircraft

August 2007

Delivery Second Aircraft

October 2007

Delivery Third Aircraft

March 2008

Delivery Fourth Aircraft

April 2008

Initial Operational Capability (IOC)

Spring 2008

Full Operational Capability (FOC)

Summer 2009

Project Close-out  

Summer 2010


6.  Progress Report and Explanations of Variances: The project received Effective Project Approval from Treasury Board on June 22, 2006 for the purchase of four Strategic aircraft, setup of in-service support for 20 years, ancillary contracts and project office. The contract with the Boeing Company for the Direct Sales Contract was established on February 1, 2007. A Foreign Military Sales case, through the United States Air Force to Boeing, for worldwide in-service support was established on January 31, 2007. The project office is currently working on the implementation phase in support of this acquisition.

7.  Industrial Benefits: Target Industrial Regional Benefits for this project are equivalent to 100% of the acquisition contract and Boeing’s share of the in-service support Foreign Military Sales contract value.

Medium-To Heavy-Lift Helicopter (MHLH)

1.  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 in fulfilling a wide range of roles. Canadian Forces operational experience, particularly in current operational theatres, has highlighted the urgent need for medium to heavy lift helicopters to support land, amphibious and special operations 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, medium to heavy lift helicopters will provide the Government with a wider range of military options for addressing threats and emergencies than the Canadian Forces’ current helicopter fleets.

The Medium to Heavy Lift Helicopter project will deliver the medium to heavy lift helicopter capability to support domestic and international deployments of land forces, special operations and amphibious formations. The project will acquire a minimum of 16 helicopters, integrated logistic support and other related support elements.

2.  Project Phase: Definition

3.  Leading and Participating Departments and Agencies:


Lead Department or Agency:

Department of National Defence

Contracting Authority:

Public Works and Government Services Canada

Participating Departments and Agencies:

Industry Canada and its regional agencies


4.  Prime and Major Sub-Contractors:


Prime Contractor:

The Boeing Company, St-Louis, Missouri, USA


5.  Major Milestones:


Major Milestones

Date

Memo to Cabinet

June 2006

SS (PPA) - Approval

22 June 2006

Advanced Contract Award Notice Posted on MERX

5 July 2006

SS (EPA) - Approval

July 2007

Contract Award

NLT July 2007

First Delivery

NLT July 2010

Initial Operational Capability (IOC)

NLT July 2011

Full Operational Capability (FOC)

Winter 2012–2013

Project Close-out  

Fall 2013


6.  Progress Report and Explanations of Variances: The project received Preliminary Project Approval in June 2006, whereby expenditure authority of $8.4M (BY) was granted for the definition phase. Treasury Board also acknowledged the indicative cost estimate of $2,022M (BY) for total project.

In July 2006, the Government announced, via Advanced Contract Award Notice, its intent to award a contract to the Boeing Company. Definition work is underway, consultation with industry has taken place, a continuous risk management program has been implemented and costing efforts for the implementation phase are progressing.

7.  Industrial Benefits: This procurement will provide Industrial Regional Benefits equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. For the integrated in-service support portion, 75% of the contract value will be direct work performed by a Canadian company. The selected contractor will be required to identify, as specific work packages, 60% of the total acquisition commitment. These industrial and regional benefits requirements will be negotiated and accepted by Industry Canada prior to contract signing.

Protected Military Satellite Communications (PMSC)

1.  Description. The Department of National Defence and the Canadian Forces require global communications that are secure, guaranteed and directly interoperable with our allies. The aim of the Protected Military Satellite Communications Project (PMSC) is to overcome current Canadian Forces interoperability and global command and control limitations. Upon completion, this project will enable long-range communications to deployed forces and facilitate their interoperability with allies.

2.  Project Phase: Implementation

3.  Leading and Participating Departments and Agencies


Lead Department

Department of National Defence

Contracting Authority

Public Works and Government Services Canada

Participating Department

Industry Canada and its regional agencies


4.  Prime Contractor and Major Sub-Contractors


Prime Contractor

United States Department of Defense

Major Sub-Contractors

TBD


5.  Major Milestones


Major Milestones

Date

Preliminary Project Approval

August 25, 1999

Effective Project Approval

November 18, 2003

Initial Terminal Delivery

Summer 2009

Initial Satellite Delivery

Spring 2010

Terminal Delivery Completed

Summer 2013

Project Complete

Winter 2014


6.  Progress Report and Explanations of Variances. The PMSC project will be implemented in two phases. Under Phase 1, a Memorandum of Understanding (MOU) with the United States Department of Defense (DOD) will guarantee Canadian participation in their Advanced Extremely High Frequency (AEHF) system. Definition studies for the terminal segment were completed in Phase 1. Under Phase II, the terminal segment will be procured, installed and tested.

On August 25, 1999, Treasury Board granted Preliminary Project Approval to the PMSC Project, with expenditure authority for the implementation of Phase I at an estimated cost of $252M and granted approval for the Department of National Defence to enter into a Military Satellite Communication (MILSATCOM) MOU with the US Department of Defense. The MOU was signed November 16, 1999.

On November 18, 2003, Treasury Board granted Effective Project Approval to the PMSC Project, with expenditure authority for the Implementation of Phase II at an estimated cost of $300M. The total cost is now estimated at $552M.

7.  Industrial Benefits: Under Phase 1, the US Department of Defense 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 II,  Senior Procurement Advisory Committee (SPAC) endorsed that Terminal acquisition and support will be procured through Foreign Military Sales and the installation will be done through DND managed contracts. Industrial and regional benefits will be sought by Industry Canada at 100% of contract value.

Material Acquisition And Support Information System (MASIS)

1.  Description: The mission of the Material Acquisition and Support Information System (MASIS) project is to provide a Department of National Defence (DND) 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 DND/CF 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.

2.  Project Phase: Implementation – Phase 4

3.  Leading and Participating Departments and Agencies


Lead Department or Agency:

National Defence

Contracting Authority:

Public Works and Government Services

Participating Departments and Agencies:

N/A


4.  Prime and Major Sub-Contractors


Prime Contractor

IBM Canada, Ottawa, ON

Major Sub-Contractors

SAP Canada, Ottawa, ON
Pennant, Ottawa, ON


The project follows the standard departmental project management framework, with a phased approach implemented by a fully Integrated Project Team consisting of personnel from the Contractor, DND and PWGSC.

5.  Major Milestones


Major Milestones

Date

Definition Phase

 

Preliminary Project Approval - Expenditure Authority for Phase 1

June 10, 1998

Contract Awarded for Prime Systems Integrator

December 14, 1998

MASIS system—Go Live Phase 1 (202 Work Depot Montreal)

September 01, 1999

Implementation Phase

 

Expenditure Authority (EPA) for Phases 2 and 3:
a.  Implementation of Complex Contracts;
b.  Implementation of the MASIS solution to the Navy;
c.  Operations Support & Maintenance for MASIS;
d.  Planning and scoping for requirements scheduled to be implemented for the Army.

June 15, 2000

Amended Expenditure Authority (EPA) for Phase 4:

a.   Investigation of opportunities to progress the implementation of MASIS to the maximum extent possible within the future available Phase 5 funding;

b.  ; Management of Operations Support & Maintenance for MASIS (outside MASIS project Expenditure Authority);

c.   Project was deemed as a Major Crown Project with this approval.

December 2003

Planned Amended Expenditure Authority (EPA) for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army. Approval of amended SS(EPA) by TB is expected in early 2007.

2007

Project Closeout

2012


6.  Progress Report and Explanations of Variances: Following Definition phase approval, EPA for MASIS was granted to DND in June 2000 in the amount of $147.8M departmental. This authority provided the project the means to cover the work under Phases 1 to 3, which have been completed.

The project follows a cyclical approval and delivery methodology. In December 2003, an additional $34.4M was approved to fund Phase 4 of the project. The project is currently in Phase 4 and will require TB approval of an amended SS(EPA) to move to the next phase(s) of implementation. The project team is presently reviewing options for the future based on new government priorities, perceived risk in large IM/IT projects and alignment of Financial and Materiel Acquisition and Support business processes. Based on a review of these options the department will move the submission forward to TB for approval to rollout to the Army and Air Force. Planned completion of project is 2012 timeframe.

7.  Industrial Benefits: All industrial benefits are attributed to Ontario since all project expenditures occur in Ontario.

Canadian Cryptographic Modernization Program (CCMP)

1.  Description. The Canadian Cryptographic Modernization Program (CCMP) is a 12-year program ( fiscal year 2004–2005 to 2015–2016) that will modernize the Government of Canada’s 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
  • Classified Security Management Infrastructure
  • Secure Voice / Telephone Replacement
  • Combat Identification Replacement
  • Link Encryption Replacement
  • Network Encryption Replacement
  • Secure Radio Replacement

2.  Project Phase: Implementation

3.  Leading and Participating Departments and Agencies


Lead Departments

Department of National Defence (DND)
Communications Security Establishment (CSE)

Contracting Authority

Public Works & Government Services Canada (PWGSC)

Participating Departments & Agencies

Government of Canada departments & agencies using cryptographic equipment to protect classified information


4.  Prime Contractor and Major Sub-contractors. 


Prime Contractor

N/A

Major Sub-Contractors

Various allied manufacturers of cryptographic equipment


5.  Major Milestones


Major Milestones Date

Preliminary Project Approval for the CCMP omnibus project

March 7, 2005

Preliminary Project Approval for the CCMP omnibus project sub-project: Classified Security Management Infrastructure

November 2, 2006

Secure Voice / Telephone Replacement Completed

September 2007

Secure Voice / Telephone Re-key Infrastructure Completed

March 2008

Classified Security Management Infrastructure – Phase 1 Completed

2009

Link Encryption Family Replacement – Phase 1 Completed

2010

Classified Security Management Infrastructure – Phase 2 Completed

2011

Network Encryption Replacement Completed

2011

Combat Identification Replacement Completed

2016

Classified Security Management Infrastructure – Phase 3 Completed

2016

Link Encryption Family Replacement – Phase 2 Completed

2016

Secure Radio Replacement Completed

2016

Project Completed

2016


6.  Progress Report and Explanation of Variances. 

On March 7, 2005, Treasury Board granted Preliminary Project Approval to the CCMP omnibus project at an estimated cost of $839M with expenditure authority for the project definition phases and management of the program at a substantive cost of $80M.

On November 2, 2006, Treasury Board granted Preliminary Project Approval to the Classified Security Management Infrastructure Project at an estimated cost of $182M with expenditure authority for the implementation of Phase 1A at a substantive cost of $31M.

The following completion dates have changed:

  • Secure Voice / Telephone Re-key Infrastructure project closure was moved from June 2007 to March 2008 due to delays in acquiring critical components.
  • Classified Security Management Infrastructure Phase 1 completion was moved from 2008 to 2009 due to the requirement to split Phase 1 into two parts (1A and 1B) to minimize risk.
  • Combat Identification completion was moved from 2010 to 2016 due to changes in the US program schedule.

Secure Voice Re-key was activated on December 21, 2006. Secure telephone replacement is on track for completion in September 2007.

7.  Industrial Benefits.  

N/A

 




Section III : Survol des finances et du Ministère

Table 11a: Summary of Transfer Payments by PAA


($ Thousands) Forecast
 Spending 
2006-2007
Planned
 Spending 
2007-2008
Planned
 Spending 
2008-2009
Planned
 Spending 
2009-2010

Grants

 

 

 

 

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces  

157

152

162

162

Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values

5,335

5,360

5,360

5,360

Sub-total Grants

5,492

5,512

5,522

5,522

Contributions

 

 

 

 

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces  

20,381

20,627

20,705

20,785

Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values

  177,116

  192,972

  197,685

  218,318

Sub-total Contributions

  197,497

  213,599

218,390

  239,103

Total Grants and Contributions

  202,989

219,111

223,912

  244,625


Source: Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to total shown.

Table 11b: Details of Transfer PaymentPrograms over $5 Million


Description

($ Thousands)

Type Forecast
Spending
 2006–2007
Planned
Spending
 2007–2008
Planned
Spending 
2008–2009
Planned
Spending 
2009–2010

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces

Supplementary Retirement Benefit Act (SRBA) Payments

S

6,800

7,020

7,020

7,020

Contributions in Support of the Capital Assistance Program (CAP)

C

355

5,450

5,450

5,450

Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interest and Values

Contribution Program for the Promotion of the Defence Diplomacy Objectives Implemented by the Military Training Assistance Programme

C

10,000

10,000

10,000

10,000

NATO Military Budget

C

44,698

63,333

68,108

72,578

NATO Security Investment Program

C

52,110

55,647

61,267

69,076

NATO Airborne Early Warning and Control Program

C

62,388

55,030

48,904

57,163

Total Transfer Payments over $5 million

 

176,351

196,480

200,749

221,287

Total Transfer Payment

 

202,989

219,111

223,912

244,625

Percentage of Transfer Payment over $5 million

 

86.9%

89.7%

89.7%

90.5%

Total Spending per PAA

 

Forecast Spending per PAA 
2006–2007

Planned Spending per PAA 
2007–2008

Planned Spending per PAA 
2008–2009

Planned Spending per PAA 
2009–2010

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces

 

20,538

20,779

20,867

20,947

Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interest and Values

 

182,451

198,332

203,045

223,678

 Total

 

202,989

219,111

223,912

244,625


Source: Assistant Deputy Minister (Finance and Corporate Services)
*Due torounding, figures may not add up to total shown.
Legend:
S = Statutory
C = Contribution

Table 11c: Transfer Payments by PAA

  1. Supplementary Retirement Benefits Act (SRBA)
  2. Contributions in support of the Capital Assistance Program (CAP)
  3. Contribution Program for the Promotion of the Defence Diplomacy Objectives Implemented by the Military Training Assistance Program (MTAP)
  4. NATO Military Budget
  5. NATO Security Investment Programme
  6. NATO Airborne Early Warning and Control Program

Supplementary Retirement Benefits Act (SRBA)


1. Name of Transfer Payment Program: Supplementary Retirement Benefits Act (SRBA) [Statutory Payments]

2. Start Date: 1970

3. End Date: on-going

4. Description: The SRBA amount represents statutory payments to Defence Services Pension Continuation Act (DSPCA) pension recipients for inflation adjustment to their pensions.

5. Strategic Outcome: Canadians’ confidence that DND and the CF have relevant and credible capacity to meet defence and security commitments

6. Expected Results: In compliance with the legislative provisions of SRBA, provide supplementary retirement benefits payments for certain persons in receipt of a pension pursuant to the Defence Services Pension Continuation Act chapter D-3 of the Revised Statutes of Canada 1970, as a result of having been compulsorily retired from the regular force of the Force by reason of any mental or physical condition rendering the person unfit to perform duties as a member of the regular force of the Force, as the case may be. Statutory DSPCA and SRBA payments are processed by Public Works and Government Services Canada.

($ Thousands)

7. Forecast
Spending
2006–2007

8. Planned  
Spending
2007–2008

9. Planned
Spending
2008–2009

10. Planned
Spending
2009–2010

11. Program Activity

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces

12. Total Grants

0

0

0

0

12. Total Contributions

$6,800.0

$7,020.0

$7,020.0

$7,020.0

12. Total Other Types of Transfer Payments

0

0

0

0

13. Total Program Activity

$20,538.0

$20,779.0

$20,867.0

$20,947.0

14. Planned Audits and Evaluations: The Canadian Forces Pension Plan Comptroller manages the SRBA payments. While no specific audits or evaluations are planned, expenditures are subject to monitoring and fall into the financial control framework of the Canadian Forces Pension Plan.


Source: Assistant Deputy Minister – Finance and Corporate Services and Chief Military Personnel

Contributions in support of the Capital Assistance Program (CAP)


1. Name of Transfer Payment Program: Contributions in support of the Capital Assistance Program (CAP) [Voted payments]

2. Start Date:

1983-84

3. End Date:

2010-2011 (up for renewal starting 2011-2012)

4. Description: The Department of National Defence uses Capital Assistance Program to fund capital projects undertaken with provinces, territories and municipalities and/or their agencies related to the operations of military bases and wings located within Canada. Projects include the construction of community-oriented facilities (such as arenas, gymnasiums, swimming pools, water treatment plants, water distribution systems) where the forces and/or military staff and their dependents are significant users, and where provinces or municipalities are in a better position to deliver services. Contributions are also made to support the transfer to municipalities of common infrastructure related to Residential Accommodation (formerly entitled Permanent Married Quarters) such as roads, sidewalks, sewers, storm pipes, etc.

5. Strategic Outcome: Canadians’ confidence that DND and the CF have relevant and credible capacity to meet defence and security commitments

6. Expected Results:

Expected results of this contribution program are:

  • to enter into collaborative arrangements with Provinces, Territories and Municipalities and/or their agencies (through contribution agreements);
  • to maintain/improve infrastructure while correcting identified deficiencies;
  • to reduce operating and capital costs;
  • to improve cost-effective provision of infrastructure and community-based services; and,
  • to enhance quality of life for military personnel and dependants.

($ Thousands)

7. Forecast
Spending 2006-2007

8. Planned
Spending
2007-2008

9. Planned
Spending
2008-2009

10. Planned
Spending
2009-2010

11. Program Activity

Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces

12. Total Grants

0

0

0

0

12. Total Contributions

$355.0

$5,450.0

$5,450.0

$5,450.0

12. Total Other Types of Transfer Payments

0

0

0

0

13. Total Program Activity

$20,538.0

$20,779.0

$20,867.0

$20,947.0

14. Planned Audits and Evaluations: A mid-term review will be conducted in 2008. Also a more extensive evaluation is planned for 2010. These evaluations will be undertaken to ensure that monies contributed under the Capital Assistance Program have been made according to the existing policies and procedures, and terms and conditions.


Source: Assistant Deputy Minister – Finance and Corporate Services and Assistant Deputy Minister – Infrastructure and Environment

Contribution Program for the Promotion of the Defence Diplomacy Objectives Implemented by the Military Training Assistance Program (MTAP)


1. Name of Transfer Payment Program: Contribution Program for the Promotion of the Defence Diplomacy Objectives Implemented by the Military Training Assistance Programme (MTAP) – [Voted Payments]

2. Start Date: FY 2005–2006

3. End Date: FY 2009–2010 (up for renewal starting 2010-2011)

4. Description: The Military Training Assistance Program builds the capacities of member countries’ militaries through language training, professional development courses including command and staff instruction, and peace support operations training.

5. Strategic Outcomes: Good governance, Canadian identity and influence in a global community

6. Expected Results: Results expected from this contribution program include the following:

  • promoting Canadian interests and values among developing, non-NATO MTAP member countries;
  • promoting Canada’s independent national profile;
  • enhancing Canada’s bilateral defence relationships;
  • building peace support operations capacity among Canada’s peacekeeping partners; and
  • strengthening democratic principles, the rule of law, the protection of human rights, and international stability.

($ Thousands)

7. Forecast
Spending
2006-2007

8. Planned
Spending
2007-2008

9. Planned
Spending
2008-2009

10. Planned
Spending
2009-2010

11. Program Activity

Contribute to the Canadian Government, Society and the International Community in Accordance with Canadian Interests and Values

12. Total Grants

0

0

0

0

12. Total Contributions

$10,000.0

$10,000.0

$10,000.0

$10,000.0

12. Total Other Types of Transfer Payments

0

0

0

0

13. Total Program Activity

$182,451.0

$198,332.0

$203,045.0

$223,678.0

14. Planned Audits and Evaluations: During fiscal 2007–2008, the Department of National Defence’s Chief – Review Services will undertake a mid-term evaluation of the Military Training Assistance Program. A summative evaluation of the Program will be conducted toward the end of the five-year renewal contribution period, at the end of fiscal 2008–2009.


Source: Assistant Deputy Minister – Finance and Corporate Services and Assistant Deputy Minister – Policy

NATO Military Budget


1. Name of Transfer Payment Program: NATO Military Budget – [Voted Payments]

2. Start Date: 1949

3. End Date: 2009-2010 (up for renewal starting 2010-2011)

4. Description: To contribute the Canadian share of the NATO Military Budget—a common-funded program to finance the operating and maintenance costs of the NATO military structure and activities, including Deployed Operations and missions.

5. Strategic Outcome (s): Good governance, Canadian identity and influence in a global community

6. Expected Results: Canada’s financial contributions to the Alliance helps to ensure Canadian security, provide leverage and influence within the multi-national body and provides access to military capabilities which Canada, itself, does not possess.

To safeguard the freedom and security of all its members by political and military means in accordance with the North Atlantic Treaty and the principles of the United Nations Charter.

The dividends of Canada’s investment in NATO include access to strategic information, exercises with allied forces and an equal voice in high-level decisions affecting Euro-Atlantic security and stability.

($ Thousands)

7. Forecast
Spending
2006-2007

8. Planned
Spending
2007-2008

9. Planned
Spending
2008-2009

10. Planned
Spending
2009-2010

11. Program Activity

Contribute to the Canadian Government, Society and the International Community in Accordance with Canadian Interests and Values

12. Total Grants

0

0

0

0

12. Total Contributions

$44,698.0

$66,333.0

$68,108.0

$72,578.0

12. Total Other Types of Transfer Payments

0

0

0

0

13. Total Program Activity

$182,451.0

$198,332.0

$203,045.0

$223,678.0

14. Planned audits and Evaluations: At the end of the year, the annual financial statements are presented for verification by the International Board of Auditors for NATO, which is mandated by national audit institutions to conduct not only financial but also performance audits.


Source: Assistant Deputy Minister – Finance and Vice Chief of the Defence Staff – Chief Force Development

NATO Security Investment Programme


1. Name of Transfer Payment Program: NATO Security Investment Programme - [Voted Payments]

2. Start Date: 1949

3. End Date: 2009-2010 (up for renewal starting 2010-2011)

4. Description: To contribute the Canadian share of the NATO Security Investment Program (NSIP)– a common funded program that finances the capital costs for the provision of communication and information systems, installations and facilities such as radar, military headquarters, airfields, fuel pipelines and storage, harbors and navigational aids needed to support the NATO military structure and activities including Deployed Operations and Missions.

5. Strategic Outcome: Good governance, Canadian identity and influence in a global community

6. Expected Results: NSIP funds projects that meet NATO’s essential purpose, which is to safeguard the freedom and security of all its members by political and military means in accordance with the North Atlantic Treaty and the principles of the United Nations Charter.

The dividends of Canada’s investment in NATO include access to strategic information, exercices with allied forces and an equal voice in high-level decisions affecting Euro-Atlantic security and stability.

($ Thousands)

7. Forecast
Spending
2006-2007

8. Planned
Spending
2007-2008

9. Planned
Spending
2008-2009

10. Planned
Spending
2009-2010

11. Program Activity

Contribute to the Canadian Government, Society and the International Community in Accordance with Canadian Interests and Values

12. Total Grants

0

0

0

0

12. Total Contributions

$52,110.0

$55,647.0

$61,267.0

$69,076.0

12. Total Other Types of Transfer Payments

0

0

0

0

13. Total Program Activity

$182,451.0

$198,332.0

$203,045.0

$223,678.0

14. Planned audits and Evaluations: The NATO International Board of Auditors (IBAN) audits the NSIP account annually. Individual project are also audited at project completion. The national audit institutions mandate these audits.


Source: Assistant Deputy Minister – Finance and Corporate Services and Vice Chief of the Defence Staff – Chief Force Development

NATO Airborne Early Warning and Control Program


1. Name of Transfer Payment Program: NATO Airborne Early Warning and Control Program – [Voted Payments]

2. Start Date: 1979

3. End Date: 2009-2010 (up for renewal starting 2010-2011)

4. Description: To substantially improve the quality of the NATO Airborne Early Warning (NAEW) sub-systems aboard the 17 NATO E-3A aircraft.

5. Strategic Outcome (s): Good governance, Canadian identity and influence in a global community

6. Expected Results:

To provide a state of the art operating system that will collect and disseminate, real time, data received from several on board sensors.

($ Thousands)

7. Forecast
Spending
2006-2007

8. Planned
Spending
2007-2008

9. Planned
Spending
2008-2009

10. Planned
Spending
2009-2010

11. Program Activity

Contribute to the Canadian Government, Society and the International Community in Accordance with Canadian Interests and Values

12. Total Grants

0

0

0

0

12. Total Contributions

$62,388.0

$55,030.0

$48,904.0

$57,163.0

12. Total Other Types of Transfer Payments

0

0

0

0

13. Total Program Activity

$182,451.0

$198,332.0

$203,045.0

$223,678.0

14. Planned Audits and Evaluations: At the end of the year, the annual financial statements are presented for verification by the International Board of Auditors for NATO, which is mandated by national audit institutions to conduct not only financial but also performance audits.


Source: Assistant Deputy Minister – Finance and Corporate Services and Vice Chief of the Defence Staff – Chief Force Development

Table 12: Alternate Service Delivery 

Over the next three years, National Defence will use significant new ASD initiatives for the following programs and/or services.

  1. Contracted Airborne Training Services (CATS)
  2. Wheeled Light Armoured Vehicle (WLAV) Life Cycle Support Project
  3. Canadian Forces Station Alert Modernization Project
  4. DND/Montfort Hospital Collaborative Arrangement
  5. Information Management Services Transformation Project

Contracted Airborne Training Services (CATS)


Contribution to Organization

Status of Proposal

Implementation Date

Contact

The aim of this project is to procure airborne combat training support services from industry to assist the Canadian Forces with training exercises for maintaining combat effectiveness.  Some of these services were previously delivered by Canadian Forces aircraft fleets that have now been retired.      

The initial contracting process in 2001 resulted in no compliant bids. A partial interim solution is now being implemented utilizing a combination of standing offers and Foreign Military Sales (FMS) cases to deliver the services for three to five years. Initial operational capability was attained in December 2005. Training exercises continue to be flown using contractor aircraft and pilots. Canadian Forces Electronic Warfare officers participate as aircrew. The project will use the interim solution period to refine the statement of work prior to reissuing the request for proposal for the long-term solution. 

Full implementation of the long-term solution is planned for 2010.   

Mr. Dan Balcom
Project Manager, CATS
613-991-4088
Balcom.DJ@forces.gc.ca


Wheeled Light Armoured Vehicle (WLAV) Life Cycle Support Project


Contribution to Organization

Status of Proposal

Implementation Date

Contact

Using the Optimized Weapon System Support (OWSS) process, this project aims to procure long-term Life Cycle Support services from industry in order to improve effectiveness and efficiency.

Treasury Board approval for contract award was granted on 29 Mar 04. The contract with General Dynamics Land Systems was signed on 1 Apr 04.

The project is in its 3rd year and is progressing well. Project Management staff have decided to exercise the 1st option year of the contract in April 2007.

Mr. J. Reade
994-9869
Reade.JG@forces.gc.ca


Canadian Forces Station Alert Modernization Project


Contribution to Organization

Status of Proposal

Implementation Date

Contact

This initiative will include a re-design of support services delivery as an efficiency measure. 

A statement of work (SOW) for the outsourcing of support services has been finalized. The duration of the service support contract will be for two years plus one additional option year.

Contract award is anticipated by January 2007.

Major G. Anello
613-998-6363
Anello.GF@forces.gc.ca


DND/Montfort Hospital Collaborative Arrangement


Contribution to Organization

Status of Proposal

Implementation Date

Contact

The Canadian Forces Health Care Centre (CFHCC), which provides health care services to Canadian Forces members, will relocate from its current location (the former National Defence Medical Centre) to the Montfort Hospital where it will occupy four floors of a newly constructed pavilion. CFHCC will continue to control health care services provided to CF members but will no longer provide laboratory services, diagnostic imaging services and a number of specialist services, which will be procured from the Montfort when required.

PWGSC has arranged the required contract with management of the Montfort Hospital and the implementation phase of the project has commenced.

CFHCC will relocate to its new facilities in the spring of 2008.

Lieutenant-Colonel A. M. Espenant
613-945-6600 ext 3707
Espenant.AM@forces.gc.ca


Information Management Services Transformation Project


Contribution to Organization

Status of Proposal

Implementation Date

Contact

This Assistant Deputy Minister (information Management) led project will result in the transformation of information management services delivery within the Canadian Forces and DND. Three options for the provision of IT infrastructure support within the department are being considered: outsourcing, PWGSC shared services and internal realignment.

The MND authorized required ASD review to proceed in May 2005. The project has completed the baseline review and is now in the definition stage.

Implementation is planned for June 2007.

Mr. Charles Kaszap
613-944-7933
Kaszap.C@forces.gc.ca


Table 13: Sustainable Development Program


1.   SDS Departmental Goal: 

Since its first Sustainable Development Strategy (SDS) was tabled in Parliament, Defence has focused on the overarching goal of integrating environmental considerations into decision-making at every level of the organization. Our environmental vision, as set out in the 2006 version of the Defence SDS, and our Defence Administrative Order and Directive 4003-0 reiterate the SDS departmental goal. The content of the Defence SDS explains in detail the nature and extent of the integration of environmental considerations in DND.

 

2.   Federal SD Goal including Greening of Government Operations (GGO) goals:

Defence focuses equally on all the goals, objectives and targets (or “commitments”) made in the SDS since it is considered the Minister’s plan for achieving sustainability within the organization. Implementation of the fourth iteration of our SDS will begin on  April 1st, 2007. Our efforts will focus on four strategic commitments, each supported by measurable and time-bound sub-commitments (“targets”). The four strategic commitments are:

  • Develop a framework of land use management putting our lands on a “steady state” footing of sustainability;
  • Actively promote the application of innovative “Green Building” principles and share lessons learned with the broader federal community;
  • Implement a proactive and comprehensive “Green Procurement” program across the Defence organization; and,
  • Actively and innovatively prevent negative environmental impacts of specific activities over which Defence can exercise a mitigating influence.

Each of these strategic commitments relates to one or more federal SD goal (specifically the GGO element of those goals). A detailed “crosswalk” establishing the linkages is included in the Defence SDS at Table 4, page 33 of the document. The document is available on the Internet at:http://www.admie.forces.gc.ca/dge/SDS/SDS2006-eng.htm.

 

3.   PerformanceMeasure from current SDS 

Our strategic commitments are supported by a total of 16 sub-commitments that provide concrete indications of our progress toward achievement of the strategic commitments. Each of these sub-commitments comprises a concise statement of the desired end state (example, Strategic Commitment 4.2, “Reduce the long-term impact of releases to the environment”) supported by objective indicators (“Increase the recovery of lead by 5% from the 2003-2004 baseline”) and supporting actions (“Screen backstop material on small arms ranges to recover metal fragments; Investigate the use of alternate backstop/bulletstop designs that facilitate metal recovery”). These sub-commitments or targets are set out in detail in Table 1 page 23 of the Defence SDS document, which is available on the Internet at: http://www.admie.forces.gc.ca/dge/SDS/SDS2006-eng.htm.

In addition, Guidance sheets to support each of the sub-commitments are produced to provide those responsible for implementing the target with the name and coordinates of a subject-specific expert for each target, the definition and scope of the sub-commitment, an action plan for achieving it and a template to ensure uniform data collection.

 

4.   Department’s Expected Results for fiscal 2007–2008

As noted above, each of the four strategic commitments is supported by a number of specific sub-commitments that are measurable, time-bound targets that taken together, result in successful discharge of the commitments. Since our commitments are largely multi-year in nature (i.e. exceeding the three-year reporting cycle of the SDS process), our targets do not lend themselves to measurement of a precise annual percentage of completion. Rather, the data reported annually through the chain of command is analyzed and graded as a: “target exceeded” (if the three year goal has been achieved before completion of the three year cycle); “target met” (applicable only at the end of each three-year cycle); “target on track” (where progress in a given year indicates that the target can be met for the three-year reporting); or “progress unsatisfactory” (where analysis indicates that meeting the target will be problematic based on analysis of the data submitted through the annual reporting exercise).

In short, we expect to report “target on track” for each of the 16 targets that support our strategic commitments for fiscal 2007–2008.

In addition, we monitor the untargeted performance of a further four activities that are of continuing interest to the sustainable development community. This exercise provides the data that may be required for government-wide reporting and allows Defence to identify unexplained and significant variances that would warn of the need for corrective action up to and including re-introducing the activity as a targeted activity in a future SDS.

 


Source: Assistant Deputy Minister (Infrastructure and Environment)

Table 14: Internal Audits and Evaluations

A list of upcoming internal audits and evaluations pertinent to Defencefor fiscal 2007–2008 follows:


Name of Internal Audit/Evaluation Audit and/orEvaluation type Status Expected
Completion Date *
Audit of Capital Assets – Repairable Spare Parts Audit Planned but not started TBD
IT Security Audit Assurance Conduct Phase 1 – 31May 07
Audit of Reserve Pay Assurance Conduct Phase 1 – 30 Mar 07
Audit accuracy and efficiency of Financial Coding Practices Audit Planning - Started Jan 07 TBD
Audit of Year-end Spending Audit Planning TBD
Safeguarding of Physical Assets Audit/TBD Planning TBD
National Search and Rescue Program and National Search and Rescue Secretariat governance Audit Conduct Fall 2008
Special Forces Operational Capability/Covert Operations Evaluation Planned start in late 2007 TBD
Canada Command 2007/2008 Evaluation Planned TBD
Functional Accountabilities for CF Command and Control Structure Evaluation Reporting Spring 2007
APC Intellectual Property Audit – Capital Acquisition Reporting April 2007
Capital Acquisition Risk Assessment Audit – Capital Acquisition Reporting April 2007
Ammunition Program- Ammunition Procurement Evaluation Reporting TBD
Security Clearance Process Assurance Reporting 30 Jan 07
IT Asset Management AuditReview Reporting 10 Jan 07
TCCS Maintenance Contract Audit – Contract Management Reporting April 2008
Selected Navy Subsystem Maintenance Contracts Audit – Contract Management Planning December 2008
MCDV Maintenance Contract Audit – Contract Management Planning September 2009
202 Workshop Depot (review) Review – Material Management Reporting April 2007
Pearson Peacekeeping Center Evaluation Reporting April 2007
CF Capabilities in the North Evaluation In-progress TBD
Maintenance/currency of CF Doctrine Evaluation Review Spring 2007
DND/CF Harassment Program Evaluation Reporting Spring 2007
Military Moves Audit Reporting Draft February2007
High-Risk Contracts – Goods Contracts (Risk assessment) Audit – Contract Management Draft Report April 2007
High Risk Contracts – Financial Transactions Audit – Financial Management Draft Report April 2007
FMT Cost Recovery Audits Cost Recovery Audit Planning Conduct complete 30 Mar 07
Foreign Military Sales Follow Up Audit Reporting Draft Mar/Apr 07
Local Construction Engineering Review Conduct June2007
Inventory Pricing Audit Reporting Draft Mar/Apr 07
Khandahar PRT Evaluation Conduct Fall 2007
Defence Ethics Program Evaluation Planning TBD
CRTI Eval – formative Reporting April 2007
CRTI Eval –summative Planning April 2008
Construction Acquisition Evaluation Reporting Spring 2007
MTAP Evaluation Planning 2008
Civilian HR Service Delivery Audit Review March 2008
CP 140 Maintenance Contracts Audit  - Contract Management Draft Report April2007
CC150 Maintenance Contract Audit – Contract Management Draft Report April 2007
CP 140 Data Management System Audit – Contract Management Conduct August 2007
CF 118 Maintenance Contract Audit – Contract Management Conduct August 2007
FELEX Project Audit – Capital Acquisition Planning August 2009
C 130 Maintenance Contract Audit – Contract Management Conduct August 2007
Combat System Engineer Support Contract Audit – Contract Management Final Report January 2007
Joint Support Ship Audit – Capital Acquisition Planning August 2009

Source: Chief Review Services
Note: Since none of these reports are finished, there are no links to them at this time
Further information on the Department’s internal audit and evaluation plan is available at:
http://crs.ottawa-hull.mil.ca/local/knowledge/documents/CRSWorkPlan-06-07-eng.pdf

Human and Financial Resources Tables on Selected Defence Portfolio Organizations

Table 1: Reserve Force

Primary Reserve Planned Expenditures

Primary Reserve Full Cost Estimate

The Primary Reserve accounts for 6.7% of the total Defence Services Program. The costs are divided into four categories: direct, indirect, attributed and capital costs. This method of reporting is intended to provide greater clarity on the makeup of the total costs of the Primary Reserve.

Direct expenditures include funds specifically budgeted for the Primary Reserve such as pay, travel and goods and services which are locally procured.

Indirect expenditures reflect the Primary Reserve share of departmental resources, which are controlled centrally. Included are ammunition, equipment operating costs, clothing and the cost of maintaining facilities such as armouries.

Attributed expenditures are departmental overhead costs, which are allocated, for reporting purposes, to all activities including the Primary Reserves. In reality, these costs do not vary directly as a function of activity and would largely be incurred whether the Primary Reserve existed or not.

Capital expenditures are shown for the year in which payments have been made, and do not reflect an amortization of cost over the life of the asset. The capital expenditures can vary significantly from one year to the next, depending on priorities established within the capital equipment plan and the cash flow requirements of individual projects.


Type of Expenditure($Thousands)

Forecast
Spending
2006-2007

Planned
Spending
2007-2008

Reserve Pay1

553,110

540,456

Regular Support Staff

143,153

  146,178

Reserve Operating

79,440

84,440

Subtotal Direct2

775,703

771,074

Ammunition

28,984

29,132

Equipment Usage

65,758

67,262

Clothing

14,573

14,683

Facility Operating

29,868

30,376

Subtotal Indirect

139,182

141,453

Base Support

217,340

221,287

Training

8,037

8,238

Subtotal Attributed

225,377

229,525

Subtotal Primary Reserve Operating

1,140,262

1,142,052

Dedicated Capital

17,530

30,676

Shared Capital

36,668

31,219

Subtotal Capital

54,198

61,895

Total Primary Reserve Costs

1,194,460

1,203,947


Source: Vice Chief of the Defence Staff and Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to totals shown
Notes:
1. Variance of $(12,654K) between 2006-07 Forecast Spending and 2007-08 Planned Spending Reserve Pay is due to in-year pressures for support to deployed operations and temporary replacements of Regular Force positions.
2. Direct pay and operating amounts do not reflect forecasted/planned spending involving members of the Canadian Rangers, the Cadet Instructors Cadre or the Supplementary Reserve sub-components. They do however include the cost of employing Primary Reservists in positions that would normally be occupied by the Regular Force.

Table 2: Communications Security Establishment


Resources – Financial by Fiscal Year

($ Thousands)

Forecast
Spending
2006-2007

Planned
Spending
2007-2008

Planned
Spending
2008-2009

Planned
Spending
2009-2010

Vote 1 – Salary and Personnel

128,939

128,291

128,291

128,291

Vote 1 – Operating and Maintenance

62,230

59,956

58,840

59,718

Sub-total Vote 1

$191,169

$188,247

$187,131

$188,009

Vote 5 - Capital

40,671

26,411

26,981

27,558

Grand total1

$231,840

$214,658

$214,112

$215,568


Source: Communications Security Establishment and Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to totals shown.
Note: 1. Variation between 2006-07 and the future years is explained by a carry forward from 05-06 into 06-07 of $6.3M for activities related to Support for Lawfull Access. Also, renewal of Public Security and Anti-Terrorism-Critical Infrastructure Program (PSAT-CIP) starting in 07-08 for $8.2M is pending approval by Treasury Board.

Table 3: Office of the Judge Advocate General


Resources – Financial by Fiscal Year

($ Thousands) Forecast
Spending
2006-2007
Planned
Spending
2007-2008
Planned
Spending
2008-2009
Planned
Spending
2009-2010

Vote 1 – Salary and Personnel1

5,666

5,704

5,712

5,339

Vote 1 – Operating and Maintenance

2,805

2,951

3,138

3,135

Sub-total Vote 1

$8,471

$8,655

$8,850

$8,474

Vote 5 - Capital

33

153

153

155

Grand total

$8,504

$8,808

$9,003

$8,629

Corporate Account

 

 

 

 

Vote 1 – Crown Liabilities

222

225

229

232

Grand Total

$8,726

$9,033

$9,231

$8,861


Source: Office of the Judge Advocate General and Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to totals shown.
Note: 1. The decrease in Salary and Personnel between 2008-09 and 2009-10 is explained by the end of the ComprehensiveInformation Management Project.

Table 4: Office of the Ombudsman for the Department of National Defence and the Canadian Forces


Resources – Financial by Fiscal Year

($ Thousands)

Forecast
Spending
2006-2007
Planned
Spending
2007-2008
Planned
Spending
2008-2009
Planned
Spending
2009-2010
Vote 1 – Salary and Personnel

3,473

3,841

3,841

3,841

Vote 1 – Operating and Maintenance

2,025

2,603

2,642

2,682

Sub-total Vote 1

$5,499

$6,444

$6,483

$6,523

Vote 5 - Capital

87

190

192

195

Grand total1

$5,586

$6,634

$6,675

$6,718


Source: Office of the Ombudsman for National Defence and the Canadian Forces and Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to totalsshown.
Note: 1. Variation between 2006-07 and the planned years is explained by a reorganisation that will increase the number of people.

Table 5: Defence Research and Development Canada


Resources – Financial by Fiscal Year

($ Thousands) Forecast Spending 2006-2007 Planned Spending 2007-2008 Planned Spending 2008-2009 Planned Spending 2009-2010

Vote 1 - Salary and Personnel 1

105,172

98,921

100,490

100,571

Sub-total Vote 1 Salary and Personnel

105,172

98,921

100,490

100,571

Vote 1 - Operating and Maintenance 

36,631

32,570

34,408

36,190

Vote 1 - Research & Development Contracts

85,866

84,000

84,000

84,000

Vote 1 - Environment 

2,800

3,000

3,000

3,000

Vote 1 - Canadian Centre for Mine Action Technologies (CCMAT)4

1,000

 

 

 

Vote 1 - Centre for Security Science (CSS) 2

25,876

41,486

38,326

45,616

 

 

 

 

 

Vote 1 - Revenue

(2,500)

(3,500)

(3,500)

(3,500)

Sub-total Vote 1 Operating and Maintenance

149,673

157,556

156,234

165,306

Total Vote 1

254,845

256,477

256,723

265,877

Vote 5 - Capital3

27,900

7,490

7,650

7,659

Vote 5 - Counter Terrorism Technology Centre (CTTC)4

2,500

 

 

 

Vote 5 - Centre for Security Science (CSS) 2

3,400

6,000

7,000

9,000

Total Vote 5

33,800

13,490

14,650

16,659

Grand Total

288,645

269,967

271,373

282,536


Source: Defence Researchand Development Canada and Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to totals shown.
Notes:
1. The decrease in Salary and Personnel between 2006-07 and the future years is explained by the Terminable Allowances for Defence Scientists of $5.3M.
2. CSS is an amalgamation of CRTI (Chemical, Biological, Radiological and Nuclear (CRBN) Research and Technology Initiative) and PSTP (Public Security Technical Program). The planning numbers include the budget for both organizations.The planned spending in Vote 1 for the future years includes a reprofiling of CRTI of $10.5M in 2007-2008, $7M in 2008-2009 and $16M in 2009-2010 and funding for PSTP of $2.4M in 2007-2008, $3.7M in 2008-2009 and $4.0M in 2009-2010. The planned spending in Vote 5 for the future years has been approved as is by Treasury Board.
3. The decrease in Capital between 2006-2007 and the future years is mostly explained by the purchase of equipment.
4. CCMAT and CTTC programmes terminate in 2006-2007.

Table 6: National Search and Rescue Secretariat
Resource Overview

The following tables reflect the federal partners' forecasts of the financial and personnel resources allocated to the National SAR Program. These resources are included in individual departmental RPPs and are presented here as collective resource information for the horizontal National SAR Program.

For more information concerning the National Search and Rescue Secretariat see www.nss.gc.ca

Table 6a: Resources – Financial by Fiscal Year


($ Thousands)

Forecast
Spending
2006-07
Planned
Spending
2007-08
Planned
Spending
2008-09
Planned
Spending
2009-10

Vote 1 - Salary and Personnel

1,543

1,601

1,601

1,601

Vote 1 - Operating and Maintenance

1,015

1,058

1,102

1,118

Sub-total Vote 1

$2,558

$2,659

$2,703

$2,718

Vote 5 – Capital 1,2

81

1,414

2,701

4,195

Vote 10 - Grants and Contributions3

1,964

4,190

4,190

4,190

Total

$4,603

$8,262

$9,594

$11,103


Source: National Search and Rescue Secretariat and Assistant Deputy Minister (Finance and Corporate Services)
*Due to rounding, figures may not add up to totals shown.
Notes:
1. The above figures are net of transfers to other government departments and to other Department of National Defence organizations for Search and Rescue New Initiatives Fund projects: $7,048K for FY 2006-07, $2,782K for FY 2007-08,$1,493K for FY 2008-09 and none for FY 2009-10.
2. Vote 10 includes $190K contribution as Canada's share of the costs for the "Cosmicheskaya Sistyema Poiska Avariynich Sudov"-"Search and Rescue Satellite-Aided Tracking" COSPAS-SARSAT Secretariat and$4,000K for contributions in support of Search and Rescue New Initiatives Fund.

Table 6b: Search and Rescue (SAR) Personnel Requirements (FTEs)


 

Forecast
2006-07

Planned
2007-08

Planned
2008-09

Planned
2009-10

National Search and Rescue Secretariat

23

23

23

23

Environment Canada - Meteorological Service of Canada

17

17

17

17

Parks Canada

64

64

64

64

Canadian Coast Guard 1

N/A

N/A

N/A

N/A

Department of National Defence – Canadian Forces

637

619

619

619

RCMP  2

N/A

N/A

N/A

N/A

Transport Canada 3

2.85

2.85

2.85

2.85

Total

812.85

812.85

812.85

812.85


Source: National Search and Rescue Secretariat
Notes:
1. FTE figures for the Canadian Coast Guard were not available because CCG operations involve multi-tasking.
2. The RCMP is unable to provide exact costs as it relates to personnel requirements due to the fact that personnel are tasked with a wide variety of duties one of which is SAR. The SAR expenditures nationally would be substantial.
3. TC has no mandate for primary SAR response and does not identify or dedicate resources to these activities.  The level of personnel commitment to SAR prevention work is represented in the table above.

Table 6c: Costs by Participating Department/Organization


($ Thousands)

Forecast Spending
2006-07
Planned
Spending
2007-08
Planned
Spending 
2008-09
Planned
Spending 
2009-10

National Search and Rescue Secretariat 1

4,603

8,262

9,594

11,103

Environment Canada - Meteorological Service of Canada

2,100

2,100

2,100

2,100

Parks Canada

5,959

5,959

5,959

5,959

Canadian Coast Guard

104,000

103,800

103,600

103,600

Department of National Defence – Canadian Forces 

101,503

101,402

102,837

102,837

RCMP 2

N/A

N/A

N/A

N/A

Transport Canada 3

628.2

628.2

628.2

628.2

Total

218,793.2

222,151.2

224,718.2

226,227.2


Source: National Search and Rescue Secretariat
Notes:
1. Changes due to transfers of funding from SAR New Initiatives Fund (NIF) to other departments for implementation of SAR New Initiatives Fund projects. This includes the transfer of $7,048K for FY 2006-07, $2,782K for FY 2007-08, and $1,493K for FY 2008-09 and none for FY 2009-10.
2. As the resource allocations for SAR are provided under provincial auspices no figures are available for RCMP federal SAR activity.  RCMP supports other departments with multi-tasked assets when required.
3 . TC has no mandate for primary SAR response and does not identify or dedicate resources to these activities.  The level of financial commitment to SAR prevention work is indicated in the table above.

 




Section IV: Additional Information

Appendix A –Legislation and Regulations Administered

The Minister of National Defence is responsible to Parliament for many statutes, and is assigned relevant responsibilities in theadministration of many laws and regulations. The comprehensive list is available at:

http://www.vcds.forces.gc.ca/dgsp/00native/rep-pub/ddm/rpp/rpp07-08/appA-eng.pdf

Appendix B –Key Partners and Stakeholders

DND and the CF work with many partners in Canada and abroad that help support the Defence mission, programs and activities. The broad scope of the Defence mandate is reflected in the complexity and diversity of its partners and stakeholders. Toview the comprehensive list of Defence partners and stakeholders, visit:

http://www.vcds.forces.gc.ca/dgsp/00native/rep-pub/ddm/rpp/rpp07-08/appB-eng.pdf

Appendix C – Defence Strategy Map

The DND/CF Strategy Map and an explanation of its causally linked strategic objectives is located at:

http://www.vcds.forces.gc.ca/dgsp/00native/rep-pub/ddm/rpp/rpp07-08/strat-map-eng.pdf

Appendix D – Contacts 

Plans and Priorities Information


Lieutenant-General W.J. Natynczyk, CMM, CD
Vice-Chief of the Defence Staff
National Defence Headquarters
101 Colonel By Drive
Ottawa, Ontario
K1A 0K2

Telephone: (613) 992-6052

Facsimile: (613) 992-3945


Financial Information


Rear-Admiral B.M. Weadon, CMM, CD
Acting Assistant Deputy Minister (Finance and Corporate Services)
National Defence Headquarters
101 Colonel By Drive
Ottawa, Ontario
K1A 0K2

Telephone: (613) 992-5669

Facsimile: (613) 992-9693


General Inquiries


Ms Josée Touchette

Assistant Deputy Minister (Public Affairs)

National Defence Headquarters
101 Colonel By Drive
Ottawa, Ontario
K1A 0K2

Telephone: (613) 996-0562

Facsimile: (613) 995-2610

Email: information touchette.jr@forces.gc.ca

 


Internet sites on the World Wide Web


Department of National Defence

http://www.forces.gc.ca

Office of the Judge Advocate General

http://www.forces.gc.ca/jag/main-eng.asp

Office of the Ombudsman for National Defence and the Canadian Forces

http://www.ombudsman.forces.gc.ca/

National Search and Rescue Secretariat

http://www.nss.gc.ca/

Defence Research & Development Canada

http://www.drdc-rddc.gc.ca

Communications Security Establishment

http://www.cse-cst.gc.ca/

Defence Planning and Management

http://http://www.vcds.dnd.ca/dgsp/pubs/dp_m/management-eng.asp

Defence Plan On-Line

http://www.vcds.dnd.ca/DPOnline/Main-eng.asp


Appendix E – List of Acronyms

A

ACP - S Airlift Capability Project – Strategic

ACP - T Airlift Capability Project – Tactical

ADDN - Automated Defence Data Network

ADM (HR-Civ) - Assistant Deputy Minister ( Human Resources – Civilian)

ADR - Alternate Dispute Resolution 

AEU - Air Expeditionary Units

AFCCIS - Air Force Command and Control Information System

AHSVS  - Armoured Heavy Support Vehicle System

AoA - Add-on-Armour

AOR - Area of Responsibility

APS - Active Protection Systems

ASD - Alternative Service Delivery


C

C  - Contribution

C/O - Close Out

C2   - Command and Control

C2IS - Command and control information system

C4I - Command, Control, Communications, Computers, Intelligence

C4ISR  -  Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance

Canada COM - Canada Command 

CANSOFCOM - Canadian Special Operations Forces Command 

CAP - Capital Assistance Program

CAS - Chief of the Air Staff

CATS  - Contracted Airborne Training Services

CBP - Capability Based Planning 

CBRN - Chemical, Biological, Radiological and Nuclear

CCG - Canadian Coast Guard 

CCMAT - Canadian Centre for Mine Action Technologies

CCTG  - Composite Contingency Task Group

CDA - Canadian Defence Academy

CDI - Chief of Defence Intelligence 

CDS - Chief of the Defence Staff

CEFCOM  - Canadian Expeditionary Forces Command

CF  - Canadian Forces

CF EW/SIGINT -  CF Electronic Warfare/Signal Intelligence  

CF ITP -  CF Integrated Training Plan

CF JHQ  - Canadian Forces Joint Headquarters

CFACC -  Combined Forces Air Component Command

CFB - Canadian Forces Base

CFCS  - Canadian Forces Command System

CFDS - Canada First Defence Strategy 

CFIOG  -  Canadian Forces Information Operations Group

CFLC -  Canadian Forces Liaison Council

CFLRS  - Canadian Forces Leadership and Recruit School

CFPSA -  Canadian Forces Personnel Support Agency

CFPSU  - Canadian Forces Protective Services Unit

CFUTTH - Canadian Forces Utility Tactical Transport Helicopter 

CIC - Cadet Instructor’s Cadre

CIS  - Communication and information systems

CLS - Chief of the Land Staff

CM  - Capability Management

CMP - Chief of Military Personnel

CMS -   Chief Maritime Staff

COSPAS-SARSAT - Cosmicheskaya Sistyema Poiska Avariynich Sudov"-"Search and Rescue Satellite-Aided Tracking 

CRF - Consolidated Revenue Fund

CRTI  - Chemical, Biological, Radiological and Nuclear Research and Technology Initiative

CS -  Computer Systems

CSE - Communications Security Establishment

CSS - Centre for Security Science

CTTC - Counter-Terrorism Technology Centre

 

D

D - Definition

DART - Disaster Assistance Response Team

DDSM - Director Defence Strategic Management

DFO - Department of Fisheries and Oceans

DMC -  Defence Military Committee

DND -   Department of National Defence

DOMSSP  - Directorate Omnibus Mounted Soldier Survivability Project

DP -  Defence Plan 

DRDC  -  Defence Research and Development Canada

 

E

EBP - Employee Benefit Plan

EN -  Engineering

EPA - Effective Project Approval

ERC - Expenditure Review Committee

ERP - Enterprise Resource Planning

ESA - Essential Services Agreements

 

F

FELEX  - Frigate Life Extension

FFH - Helicopter Carrying Frigate

FMT - Foreign Military Training  

FTE - Full Time Equivalent

FWSAR  - Fixed Wing Search And Rescue

GGO - Greening of Government Operations

GL  - General Labour 

HCM   -Halifax-Class Modernization 

HR -   High Readiness

HUMINT - Human Intelligence

 

I

I - Implementation

IC2S - Integrated Command and Control System

ICSAR - Interdepartmental Committee on Search and Rescue

IED -  Improvised Explosive Device

IM Gp - Information Management Group

IM  - Information Management

IRM - Integrated risk management

ISR -  Intelligence, Surveillance and Reconnaissance

ISTAR - Intelligence Surveillance, Target Acquisition and Reconnaissance

IT - Information Technology

 

J

JCR - Junior Canadian Rangers 

JIIFC  - Joint Information and Intelligence Fusion Capability

JSF - Joint Strike Fighter

JSS  - Joint Support Ship 

JTF  - Joint Task Forces

JTFN  -  Joint Task Force North

 

L

LAV - Light Armoured Vehicles 

LFC - Land Force Command

LFC2S - Land Force Command and Control System

LFRR -  Land Force Reserve Restructuring

LSAS -  Local Situational Awareness Systems

LUVW - Light Utility Vehicle Wheeled

 

M

MAATS -  Military Automated Air Traffic System

MAF - Management Accountability Framework

MASIS  - Material Acquisition And Support Information System

MCDV - Maritime Coastal Defence Vessel

MCOIN - Maritime Command Information Network

MFO  - Multinational Force and Observers 

MGS - Mobile Gun System

MHLH  -  Medium-To Heavy-Lift Helicopter 

MHP -Maritime Helicopter Project

MIMDEX  -  Maritime Information Management and Data Exchange 

MMEV  -  Multi Mission Effects Vehicle

MMHS  -  Military Message Handling System

MOSART  - Military Occupation Structure Analysis, Redesign and Tailoring

MOU  -  Memorandum of Understanding

MRRS - Management, Resources and Results Structure

MSOC- Marine Security Operations Centres

MSS - Mission Support Squadron

MSVS - Medium Support Vehicle System

MTAP - Military Training Assistance Program

 

N

NAFO - Northwest Atlantic Fisheries Organization 

NATO - North Atlantic Treaty Organization

NBC - Nuclear, Biological and Chemical

NORAD - North American Aerospace Defence

NORTHCOM  - Northern Command

NSS - National Search and Rescue Secretariat

 

O

OEF - Operation Enduring Freedom

OGDs  - Other Government Departments

OSS - Operational Support Squadron

 

P

PAA - Program Activity Architecture

PAT - Personnel awaiting training

PD  - Project Director 

PG -  Purchasing and Supply

PMF - Performance Management Framework

PMSC - Protected Military Satellite Communications 

PPA - Preliminary Project Approval

PRL - Primary Reserve List

PRT - Provincial Reconstruction Team 

PSAT-CIP  - Public Security and Anti-Terrorism-Critical Infrastructure Program

PSFD  - Production, Sustainment and Follow-On Development 

PWGSC - Public Works and Government Services Canada

PY  - Person years

 

R

R&D  -  Research and Development

R&S  -  Readiness and Sustainment

RCMP  -  Royal Canadian Mounted Police

RDS - Ready Duty Ship 

RFID  - Radio frequency identification

RPP- Report on Plans and Priorities 

 

S

S  - Statutory

S&T - Science and Technology

SAR NIF- Search and Rescue New Initiatives Fund

SAR - Search and Rescue

SCSC - Single-Class Surface Combatant

SD  - Sustainable Development  

SDS - Sustainable Development Strategy 

SEER  - Strategic Exercise and Experimentation Reserve 

SIGINT - Signals Intelligence

SNMG - 1 Standing NATO Maritime Group 1

SNMG - Standing NATO Maritime Group

SO  - Ship Operations

SR -   Ship Repair

SR -   Standard Readiness 

SRBA - Supplementary Retirement Benefit Act

SWE -   Salary Wage Envelope

 

T

TBS - Treasury Board Secretariat

TC -  Transport Canada 

TCCCS - Tactical Command and Control Communications System

TDP - Technical Demonstration Program 

TSSUs - Tactical Self-Sufficient Units

TTCP -   Technical Co-operation Program

 

U

U.S. - United States

UAVs - Unmanned aerial vehicles

UN - United Nations

USN - United States Navy 

 

V

VCDS - Vice Chief of Defence Staff

 

W

WLAV - Wheeled Light Armoured Vehicle


1 National Defence Act, Article 18 (1)
2 Refers to any one of the following Chief of Staff, Chief of Maritime Staff, Chief of Land Staff, Chief of Air Staff who report directly to the Chief of the Defence Staff.
3 The "field force" consists of the combat arms, combat support, and combat service support elements from which deployable task forces are generated.
4 Affiliated Battle Groups will be organized, structure, equipped and trained as they will be employed on expeditionary operations. They will be composed of a mixture of light and LAV infantry companies, an armoured reconnaissance squadron, an engineer squadron, an artillery battery, military police and combat service support elements. The restructure of the Regular Force, combined with equipment modernization, forms a cornerstone of institutional capability investments and is key to positioning the Land Force to meet its force generation and force employment requirements.
5 The "operating environment" is the combination of operational and tactical circumstances in which the Land Force is expected live, move and fight, and it exists on both the physical and moral planes. The contemporary operating environment is a complex battlespace with a mix of geographical, environmental and human factors that significantly complicates the conduct of operations.
7 The Strategic Joint Staff (SJS) is the functional authority on operations in the Defence planning process, and represents Operations in many of the new strategic governance bodies at Defence.