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2011-12
Report on Plans and Priorities

National Defence

Supplementary Information (Tables)

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Table of Contents

• Details on Transfer Payments Programs
• Greening Government Operations (GGO)
• Upcoming Internal Audits and Evaluations over the next three fiscal years
• Sources of Respendable and Non-respendable Revenue
• Status Report on Transformational and Major Crown Projects
• Summary of Capital Spending by Program Activity

Details of Transfer Payment Programs (TPP)

Greening Government Operations (GGO)

Overview

The GGO supplementary table applies to departments and agencies bound by the Federal Sustainable Development Act, the Policy on Green Procurement, or the Policy Framework for Offsetting Greenhouse Gas Emissions from Major International Events.

Please note:

• RPP refers to Reports on Plans and Priorities and represents planned / expected results.
• DPR refers to Departmental Performance Reports and represents actual results.

Green Building Targets

Greenhouse Gas Emissions Target

Surplus Electronic and Electrical Equipment Target

Printing Unit Reduction Target

Paper Consumption Target

Green Meetings Target

Green Procurement Targets

8.10 As of April 1, 2011, each department will establish at least 3 SMART green procurement targets to reduce environmental impacts.

8.11 As of April 1, 2011, each department will establish SMART targets for training, employee performance evaluations, and management processes and controls, as they pertain to procurement decision-making.

Reporting on the Purchases of Offset Credits

Notes:

• 1 This would be demonstrated by achieving LEED NC Silver, Green Globes Design 3 Globes, or equivalent.

• 2 Assessment tools include: BOMA BESt, Green Globes or equivalent.

• 3 Assessment tools include: BOMA BESt, an appropriately tailored BOMA International Green Lease Standard, or equivalent.

• 4 This would be demonstrated by achieving LEED CI Silver, Green Globes Fit-Up 3 Globes, or equivalent.

Upcoming Internal Audits and Evaluations over the next three fiscal years

A. All upcoming Internal Audits over the next three fiscal years

Name of Internal Audit 1	Internal Audit Type	Status 2	Expected Completion Date 3
FMF Cape Breton Shop Consolidation Project	Audit - Real Property Management	Completed - Pending Approval	4th Quarter FY 10-11
RMC Kingston	Audit - Financial Management	In Progress	4th Quarter FY 10-11
Health Services Recapitalization CFB Greenwood	Audit - Major Capital Acquisition	In Progress	4th Quarter FY 10-11
Reconstitution of Material in Afghanistan	Audit - CF Readiness & Operations	In Progress	4th Quarter FY 11-12
Defence Sustainable Development Strategy	Audit - Environmental Management	In Progress	4th Quarter FY 10-11
Contract Terms of Payment	Audit - Procurement & Contracting	In Progress	4th Quarter FY 10-11
CP 140 Aurora Data Management System Contract	Audit Follow-Up - Procurement & Contract Management	In Progress	4th Quarter FY 10-11
FELEX Halifax Class Modernization Frigate Life Extension	Audit - Major Capital Acquisition	In Progress	4th Quarter FY 10-11
Loaned Equipment	Audit - Procurement & Contracting	In Progress	4th Quarter FY 10-11
Industrial Security	Audit - Security Management	In Progress	4th Quarter FY 10-11
Travel, Hospitality & Conferences	Audit Follow-Up - Financial Management	In Progress	4th Quarter FY 10-11
Joint Support Ship (JSS)	Audit - Major Capital Acquisition	In Progress	1st Quarter FY 11-12
Potential Recovery of Costs from Contract Management and Cost Audits	Audit - Procurement & Contracting	In Progress	1st Quarter FY 11-12
Construction Projects	Risk Analysis - Major Capital Acquisition	In Progress	1st Quarter FY 11-12
CRS IA Perspective	Other	In Progress	1st Quarter FY 11-12
Financial Management Practices - CANSOFCOM	Audit - Financial Management	In Progress	2nd Quarter FY 11-12
Accuracy and Efficiency of Financial Coding	Audit - Financial Management	In Progress	2nd Quarter FY 11-12
IT Security	Audit - Security Management	In Progress	3rd Quarter FY 11-12
Imposed Restrictions	Audit - People Management	In Progress	3rd Quarter FY 11-12
Accuracy of Defence Civilian Personnel Data	Audit - People Management	In Progress	3rd Quarter FY 11-12
Real Property Life Cycle Management	Audit - Real Property Management	In Progress	4th Quarter FY 11-12
Efficiency and Effectiveness of SIV/SAV processes	Review - Corporate Governance	In Progress	4th Quarter FY 11-12
Internal Audit Tactical Armoured Patrol Vehicle Acquisition	Audit - Major Capital Acquisition	In Progress	4th Quarter FY 11-12
Departmental Fuel Expenditures	Audit - Financial Management	In Progress	4th Quarter FY 11-12
Unforecasted Operational Requirements	Audit - CF Readiness & Operations	Planned	1st Quarter FY 12-13
Control of Classified IT Assets	Audit - IM/IT Systems & Management	Planned	1st Quarter FY 12-13
Review of Non-Classified IT Hardware	Review Follow-Up - IM/IT Systems & Management	Planned	TBD
Business Continuity Planning	Audit - Security Management	Planned FY 11-12	TBD
Selected ERP System Vulnerability Assessment-System #1	Audit - Security Management	Planned FY 11-12	TBD
Initial Individual Occupation Training	Audit - People Management	Planned FY 11-12	TBD
Action Plan Follow-up - Major Capital Acquisition Topic (x2)	Audit Follow-Up - Major Capital Acquisition	Planned FY 11-12	TBD
Selected IM Project	Audit - IM/IT Systems & Management	Planned FY 11-12	TBD
Commercial Pattern Vehicles Life Cycle Management	Audit - Procurement & Contracting	Planned FY 11-12	TBD
Army Weapon Effects Simulation Contract	Audit - Procurement & Contracting	Planned FY 11-12	TBD
Operations and Maintenance Contracts	Risk Analysis - Procurement & Contracting	Planned FY 11-12	TBD
Procurement Forecasting	Audit - Procurement & Contracting	Planned FY 11-12	TBD
Classification Process	Audit - People Management	Planned FY 11-12	TBD
Accuracy of Defence Civilian Personnel Data	Audit - People Management	Planned FY 11-12	TBD
Accounting for Earmarked Funds (e.g., Op Podium)	Audit - Financial Management	Planned FY 11-12	TBD
"Web of Rules"	Review - Financial Management	Planned FY 11-12	TBD
CF Pension Plans Administrative Expenses-Phase 2-Processes and Controls	Audit - Financial Management	Planned FY 11-12	TBD
IM/IT Systems & Management Topic	Audit Follow-Up - IM/IT Systems & Management	Planned FY 11-12	TBD
IM/IT System Capabilities, Functionalities and Benefits	Audit - IM/IT Systems & Management	Planned FY 11-12	TBD
Hazardous Materials Management	Audit - Environmental Management	Planned FY 11-12	TBD
Security Program	Audit - Security Management	Planned FY 12-13	TBD
Selected ERP System Vulnerability Assessment-System #2	Audit - Security Management	Planned FY 12-13	TBD
Procurement & Contracting Topic	Audit Follow-Up - Procurement & Contracting	Planned FY 12-13	TBD
Management of Movement of Household Goods and Effects	Audit - Procurement & Contracting	Planned FY 12-13	TBD
CP140 Avionics Contract	Audit - Procurement & Contracting	Planned FY 12-13	TBD
Review of Civilian Training	Review - People Management	Planned FY 12-13	TBD
Civilian Overtime	Audit - People Management	Planned FY 12-13	TBD
FMAS Adjusting Entries	Audit - Financial Management	Planned FY 12-13	TBD
Financial Management Topic (x 2)	Audit Follow-Up - Financial Management	Planned FY 12-13	TBD
Telecommunications	Audit - IM/IT Systems & Management	Planned FY 12-13	TBD
Risk Management of CF Activity in Environmentally Sensitive Areas	Audit - Environmental Management	Planned FY 12-13	TBD

Electronic Link to Internal Audit Plan: N/A

Notes:

1. Approved internal audit reports can be found at the following link: http://www.crs-csex.forces.gc.ca/reports-rapports/index-eng.asp
2. The conduct of projects planned for both FYs 2011-12 and 2012-13 is subject to Departmental Audit Committee recommended approval.
3. Expected Completion Dates are not available for projects that have not yet been initiated.

B. All upcoming Evaluations over the next three fiscal years

Name of Evaluation and Link to Report	Program Activity	Status	Expected Completion Date
Evaluation of Civil Pensions and Annuities: Mr. R.P. Thompson	Defence Team Personnel Support	In Progress	4th Quarter FY 2010-11
Evaluation of the Games Security and Public Safety for the Vancouver 2010 Olympic and Paralympic Games (RCMP-led horizontal evaluation)	Canadian Peace Stability and Security	In Progress	FY 2010-11
Evaluation of CF Recruiting and Initial Training	Recruiting of Personnel and Initial Training	In Progress	FY 2011-12
Evaluation of Real Property Acquisition and Disposal (includes real property acquisition and disposal in support of land, maritime, aerospace, and joint activities)	Real Property and Informatics Infrastructure Acquisition and Disposal	In Progress	FY 2011-12
Evaluation of Land Training	Land Readiness	In Progress	FY 2011-12
Evaluation of Situational Awareness	Situational Awareness	In Progress	FY 2011-12
Evaluation of the Chemical, Biological, Radiological-Nuclear and Explosives Technology Research and Technology Initiative (CRTI)	Defence Science & Technology	In Progress	FY 2011-12
Evaluation of Security for the G8/G20 Summit (RCMP-led horizontal evaluation)	Canadian Peace Stability and Security	In Progress	FY 2011-12
Evaluation of Aerospace Initial Occupation Training	Aerospace Readiness	In Progress	FY 2011-12
Evaluation of Equipment Acquisition and Disposal	Equipment Acquisition and Disposal	In Progress	FY 2012-13
Cadet Program including the Class Grant Program to the National Offices of the Cadet Leagues of Canada: Navy, Army and Air Cadets	Canadian Identity	Planned	FY 2012-13
Contribution Program in support of the Remediation of the former Mid-Canada Line Radar Sites In Ontario	Environment Protection and Stewardship	Planned	FY 2013-14

Electronic link to evaluation plan: N/A

Note: Approved evaluation reports can be found at the following link: http://www.crs-csex.forces.gc.ca/reports-rapports/index-eng.asp#evaluation

Sources of Respendable and Non-Respendable Revenue

Respendable Revenue
($ Thousands)

Program Activity	Forecast Revenue 2010–11	Planned Revenue 2011–12	Planned Revenue 2012–13	Planned Revenue 2013–14
Resources Are Acquired to Meet Government Defence Expectations Defence Science and Technology
Recoveries from Members	-	-	-	-
Recoveries from OGDs	242	242	242	242
Recoveries from Other Governments/UN/NATO	275	275	275	275
Other Recoveries	1,921	1,921	1,921	1,921
Subtotal	2,438	2,438	2,439	2,439
Recruiting of Personnel and Initial Training
Recoveries from Members	2,230	2,277	2,292	2,302
Recoveries from OGDs	80	81	83	84
Recoveries from Other Governments/UN/NATO	1,057	526	718	718
Other Recoveries	1,151	1,159	1,169	1,172
Subtotal	4,518	4,044	4,262	4,275
Equipment Acquisition and Disposal
Recoveries from Members	-	-	-	-
Recoveries from OGDs	9	9	9	9
Recoveries from Other Governments/UN/NATO	-	-	-	-
Other Recoveries	15	15	15	16
Subtotal	23	24	24	24
Real Property and Informatics Infrastructure Acquisition and Disposal
Recoveries from Members	-	-	-	-
Recoveries from OGDs	5	6	6	6
Recoveries from Other Governments/UN/NATO	-	-	-	-
Other Recoveries	107	107	107	107
Subtotal	112	113	113	113
National Defence is Ready to Meet Government Defence Expectations Maritime Readiness
Recoveries from Members	5,108	5,185	5,263	5,342
Recoveries from OGDs	2,169	2,205	2,239	2,274
Recoveries from Other Governments/UN/NATO	1,036	482	492	498
Other Recoveries	5,996	6,065	6,150	6,237
Subtotal	14,310	13,937	14,144	14,351
Land Readiness
Recoveries from Members	24,0308	24,390	24,756	25,126
Recoveries from OGDs	485	492	499	507
Recoveries from Other Governments/UN/NATO	5	5	5	5
Other Recoveries	4,798	4,859	4,921	4,981
Subtotal	29,318	29,746	30,181	30,620
Aerospace Readiness
Recoveries from Members	4,487	4,529	4,615	4,649
Recoveries from OGDs	711	722	728	728
Recoveries from Other Governments/UN/NATO	1,157	1,160	1,163	1,166
Other Recoveries	10,369	10,257	10,341	10,377
Subtotal	16,725	16,668	16,846	16,920
Joint and Common Readiness
Recoveries from Members	6,700	6,741	6,776	6,814
Recoveries from OGDs	3,047	3,191	3,349	3,522
Recoveries from Other Governments/UN/NATO	1	1	1	1
Other Recoveries	2,730	2,805	2,860	2,918
Subtotal	12,479	12,737	12,985	13,255
Defence Operations Improve Peace Stability and Security Wherever Deployed Situational Awareness
Recoveries from Members	0	0	0	0
Recoveries from OGDs	1,200	1,200	1,200	1,200
Recoveries from Other Governments/UN/NATO	-	-	-	-
Other Recoveries	26	26	26	26
Subtotal	1,227	1,226	1,226	1,226
Canadian Peace, Stability and Security
Recoveries from Members	0	0	0	0
Recoveries from OGDs	73	74	75	76
Recoveries from Other Governments/UN/NATO	-	-	-	-
Other Recoveries	154	156	158	160
Subtotal	227	230	233	237
Continental Peace, Stability and Security
Recoveries from Members	431	418	418	418
Recoveries from OGDs	34	34	35	35
Recoveries from Other Governments/UN/NATO	15,743	15,520	16,020	16,021
Other Recoveries	957	957	958	958
Subtotal	17,164	16,929	17,431	17,432
International Peace, Stability and Security
Recoveries from Members	4,189	3,228	517	521
Recoveries from OGDs	9,345	8,981	8,982	9,083
Recoveries from Other Governments/UN/NATO	200,191	199,621	196,369	198,601
Other Recoveries	2,669	1,774	325	330
Subtotal	216,394	213,604	206,194	208,535
Care and Support to the Canadian Forces and Contribution to Canadian Society Defence Team Personnel Support
Recoveries from Members	98,058	98,853	101,122	103,812
Recoveries from OGDs	24	24	25	25
Recoveries from Other Governments/UN/NATO	1	1	1	1
Other Recoveries	5,029	4,794	4,9785	4,583
Subtotal	103,112	103,671	106,125	108,421
Canadian Identity
Recoveries from Members	49	50	51	51
Recoveries from OGDs	11	11	12	12
Recoveries from Other Governments/UN/NATO	0	0	0	0
Other Recoveries	238	240	241	243
Subtotal	298	301	304	306
Environment Protection and Stewardship
Recoveries from Members	4	4	4	4
Recoveries from OGDs	22	22	23	23
Recoveries from Other Governments/UN/NATO	-	-	-	-
Other Recoveries	88	90	91	92
Subtotal	114	116	118	119
Non-Security Support
Recoveries from Members	-	-	-	-
Recoveries from OGDs	317	325	332	338
Recoveries from Other Governments/UN/NATO	1,118	518	528	535
Other Recoveries	26	25	25	26
Subtotal	1,461	868	885	899
Internal Services Internal Services
Recoveries from Members	10,478	10,678	10,878	11,078
Recoveries from OGDs	645	660	673	685
Recoveries from Other Governments/UN/NATO	2,128	998	1,017	1,032
Other Recoveries	29,206	6,812	6,841	6,869
Subtotal	42,457	19,149	19,409	19,664
Total Respendable Revenue	462,375	435,801	432,917	438,838

 

Non-Respendable Revenue
($ Thousands)

Program Activity	Forecast Revenue 2010–11	Planned Revenue 2011–12	Planned Revenue 2012–13	Planned Revenue 2013–14
Defence Science and Technology	-	500	500	500
Recruiting of Personnel and Initial Training	7	7	7	7
Equipment Acquisition and Disposal	1,710	1,775	1,929	1,954
Real Property and Informatics Infrastructure Acquisition and Disposal	-	-	-	-
Maritime Readiness	2,204	1,875	1,904	1,932
Land Readiness	734	754	778	789
Aerospace Readiness	423	780	1,545	1,545
Joint and Common Readiness	736	773	815	860
Situational Awareness	-	-	-	-
Canadian Peace, Stability and Security	15	23	35	35
Continental Peace, Stability and Security	60	60	100	100
International Peace, Stability and Security	618	617	637	647
Defence Team Personnel Support	8	14	24	24
Canadian Identity	-	-	-	-
Environment Protection and Stewardship	11	11	11	11
Non-Security Support	-	-	-	-
Internal Services	4,648	6,399	6,228	6,323
Total Non-Respendable Revenue	11,174	13,590	14,513	14,717
Total Respendable Revenue and Non-respendable Revenue 1	473,549	449,391	447,430	453,565

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

Notes:

• 1 The decrease in planned revenue in fiscal year 2011-12 is largely a result of a decrease in Internal Services revenue.

Status Report on Transformational and Major Crown Projects

Industrial and Regional Benefits (IRB) information herein consists of the identified percentage of contract or acquisition value committed to IRBs and/or the dollar amount (against direct and indirect IRBs), where known and applicable. For more detailed information, please consult Industry Canada.

Table of Contents

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

AIRLIFT CAPABILITY PROJECT – STRATEGIC (ACP-S)

Description:

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

Project Phase:

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

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

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

Major Milestones

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

Progress Report and Explanations of Variances:

All four aircraft have been accepted on schedule and the fleet has flown in excess of 10,000 flying hours. The project office is currently working on the Implementation Phase of the project. Due to complexities in transitioning to in-service support, Full Operational Capability (FOC) will be delayed to spring 2012 when the infrastructure at Trenton is completed and the Squadron can sustain all planned mission types as stated in the Statement of Operational Requirement. The project will close-out after FOC.

Industrial and Regional Benefits (IRBs):

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

AIRLIFT CAPABILITY PROJECT – TACTICAL (ACP-T)

Description:

The objective of the Airlift Capability Project - Tactical is to ensure a continued tactical airlift capability. This project will replace the CF's aging CC 130E Hercules fleet. It will also provide the CF with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.

Project Phase:

Implementation: The project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 C-130J-30 aircraft. Aircraft deliveries began in June 2010. The final aircraft are to be delivered no later than December 2012.

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Agencies	The Regional Development Agencies

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Revised Preliminary Project Approval	June 2006
Solicitation of Interest and Qualification	August 2006
Issue of Request For Proposal	August 2007
Effective Project Approval	December 2007
Contract Award	December 2007
First Aircraft Delivery	June 2010
Initial Operational Capability	Fall 2011
Full Operational Capability	Winter 2013/2014
Project Close-Out	Spring 2014

Progress Report and Explanations of Variances:

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

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

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

Industrial and Regional Benefits (IRB):

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

ARCTIC/OFFSHORE PATROL SHIP (AOPS)

Description:

The Arctic/Offshore Patrol Ship (AOPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to demonstrate sovereignty in Canada's waters, including the Arctic. When the project is complete, the six to eight fully supported AOPS delivered to the CF will be capable of:

• Conducting armed, sea-borne surveillance of Canada's waters, including the Arctic;
• Providing to Government situational awareness of activities and events in these regions; and
• Cooperating with other elements of the CF and other Federal Government departments to demonstrate Canadian sovereignty, when and where necessary.

Project Phase:

Definition.

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

Prime and Major Sub-Contractors:

AOPS procurement will proceed with the National Shipbuilding Procurement Strategy (NSPS) as announced by the Government of Canada in June 2010. It is anticipated that NSPS will complete the selection and negotiation of the umbrella agreement with the shipyards in fall 2011. This will be followed by the negotiation of the AOPS contract with the selected shipyard to obtain a substantive cost estimate. Effective Project Approval (EPA) and Contract Award (CA) could then follow in June 2012. Delivery of the first AOPS is expected in 2015 with Initial Operational Capability (IOC) in 2016.

Major Milestones

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

Progress Report and Explanations of Variances:

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

Industrial and Regional Benefits (IRB):

IRBs for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.

ARMOURED PERSONNEL CARRIERS (APC)

Description:

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

Project Phase:

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

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

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

Major Milestones

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

Progress Report and Explanations of Variances:

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

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

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

Industrial and Regional Benefits (IRB):

This project includes industrial benefits valued at $1.595B with $852.9M in direct IRBs and $742.9M in indirect IRBs.

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM (CCMP)

Description:

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

The CCMP omnibus project includes the following sub-projects:

1. Secure Voice / Telephone Re-key Infrastructure
2. Secure Voice / Telephone Family
3. Classified Security Management Infrastructure
4. Combat Identification Family (Identification Friend or Foe (IFF))
5. Link Encryption Family
6. Network Encryption Family
7. Secure Radio Family
8. Secure Mobile Family

Project Phase:

Implementation for some sub-projects, Definition for others.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor	N/A
Major Sub-Contractor	Various allied manufacturers of cryptographic equipment

Major Milestones

Project/Sub-project Major Milestones	Date
Preliminary Project Approval for the CCMP Omnibus Project	March 2005
Preliminary Project Approval for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure	November 2006
Preliminary Project Approval for Classified Security Management Infrastructure Phase 1B Implementation and Phase 2 Definition	February 2008
Secure Voice/Telephone Re-key Infrastructure – Completed	September 2009
Secure Voice/Telephone Family – Completed	2011
Classified Security Management Infrastructure – Phase 1A Completed	2012
Classified Security Management Infrastructure - Phase 1B Completed	2012
Link Encryption Family – Completed	2013
Secure Mobile Environment - Completed	2014
Network Encryption Family - Completed	2014
Classified Security Management Infrastructure – Phase 2 Completed	2016
Combat Identification Family (Identification Friend or Foe (IFF)) - Completed	2016
Secure Radio Family – Completed	2016
Classified Security Management Infrastructure - Phase 3 Completed	2020

Progress Report and Explanations of Variances:

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

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

Industrial and Regional Benefits:

There are no IRBs associated with this project.

CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER (CFUTTH) PROJECT

Description:

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

Project Phase:

Implementation. The project has delivered 100 Bell 412CF/CH146 Griffons, a flight simulator, composite maintenance trainer, facilities, mission kits (including defence electronic warfare suites), as well as other equipment, documentation and services. It is scheduled for completion in fiscal year 2010-11.

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

Prime and Major Sub-Contractors

Prime Contractor	Bell Helicopter Textron, Mirabel, Québec, Canada
Major Sub-Contractors	Pratt & Whitney, Montréal, Québec, Canada BAE Systems Canada Inc., Montréal, Québec, Canada CAE, Montréal, Québec, Canada

Major Milestones

Major Milestone	Date
Contract Award	September 1992
Critical Design Review	April 1993
First Helicopter Delivery	March 1995
Simulator Acceptance	June 1996
Last Helicopter Delivery	December 1997
Project Completion	2011

Progress Report and Explanations of Variances:

This project received Government approval in April 1992 and Treasury Board approval in September 1992, with an original budget of $1.293B. Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in 2011 for approximately $200M less than the initial TB budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver (RLWR) functionality.

Industrial and Regional Benefits (IRB):

To date, Bell Helicopter has claimed $289.5M direct and $252.1M indirect IRBs, totaling $541.6M, representing 107% of the overall commitment of $506.7M.

CANADIAN SEARCH AND RESCUE HELICOPTER (CSH) PROJECT

Description:

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

Project Phase:

Completed. As of July 2003, all 15 Cormorant helicopters have been delivered. Spare parts and infrastructure are in place to support operations. Initial training is complete. Effective Project Closure was achieved in September 2004 at which point the Project Management Office was closed; however, some aspects of the contract were noted as deficiencies. Final contract completion is projected to occur in 2013-14.

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Treasury Board Effective Project Approval	April 1998
Contract Award	April 1998
First Aircraft Delivery (at plant in Italy)	September 2001
Final Aircraft Delivery (at plant in Italy)	July 2003
Project Completion (Effective Project Completion	September 2004
Expected Project Closure	2013-14

Progress Report and Explanations of Variances:

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

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

It should be noted that although Effective Project Closure was achieved in September 2004, some work is still ongoing and full completion is not expected before 2014. The milestones still outstanding are tied to a three year Technical Publication Revision Service which commenced in fiscal year 2010-11, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least an additional year to address.

Industrial and Regional Benefits (IRB):

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

CANADIAN SURFACE COMBATANT PROJECT (CSC)

Description:

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

Project Phase:

Option Analysis.

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

Prime Contractor	To be determined
Major Sub-Contractors	To be determined

Major Milestones

Major Milestone	Date
Identification Phase Approval	July 2007
Identification Phase Amendment No. 1 Approval	January 2009
Preliminary Project Approval	2011
Effective Project Approval	2015
Implementation Contract - Awarded	2015
Initial Operational Capability	2021
Full Operational Capability	2036
Initial Operational Capability	2037

Progress Report and Explanations of Variances:

The Options Analysis is still underway and the development of project documents is progressing. While the Government announced its broad intention about fleet recapitalization when it announced the Canada First Defence Strategy in May 2008, there has yet to be a specific Canadian Surface Combatant project announcement.

Industrial and Regional Benefits (IRB):

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

CLOSE COMBAT VEHICLE (CCV)

Description:

The Close Combat Vehicle project will deliver a highly protected, very mobile infantry fighting vehicle that can conduct close combat operations in intimate support of Canadian Forces Leopard 2 tanks.

The scope of the this project is to deliver 108 Close Combat Vehicles, with an option to acquire up to an additional 30 vehicles, plus associated long-term through-life incentivized in-service support.

Project Phase:

Definition.

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

Prime and Major Sub-Contractors

Prime Contractor	To be determined
Major Sub-Contractors	To be determined

Major Milestones

Major Milestone	Date
Preliminary Project Approval	June 2009
Request for Proposal (RFP) Released	Spring 2011
Effective Project Approval	Summer 2012
Contract Award	Winter 2012-13
First Delivery	Winter 2014-15
Initial Operational Capability	TBD
Full Operating Capability	TBD
Project Completion	TBD

Progress Report and Explanations of Variances:

In June 2009, the CCV project obtained Treasury Board expenditure authority for its Definition phase at a substantive cost estimate of $46.4 M ($BY), plus GST/HST. The CCV project is on budget and is proceeding toward EPA and contract award. The project has released three Solicitations of Interest and Qualifications (SOIQ) to industry via PWGSC. Work continues on the preparation of the RFP, which is due to be released in spring 2011.

Industrial and Regional Benefits (IRB):

IRBs for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support. As well, a direct component of Canadian IRBs may be mandated in the RFP by Industry Canada.

FIXED-WING SEARCH AND RESCUE (FWSAR)

Description:

Fixed-wing SAR aircraft are needed to provide immediate assistance to distress cases within the 18 million square kilometres Canadian SAR area of responsibility. The purpose of this project is to replace the CC115 Buffalo and CC130 Hercules currently providing the fixed-wing SAR capability from four Main Operating Bases with a fleet of new aircraft.

This replacement will address the operational deficiencies of the CC115 Buffalo and Legacy CC130 Hercules fixed-wing SAR aircraft while eliminating the supportability and affordability difficulties of the older airframes. The solution will provide the capability to conduct an effective fixed-wing response and immediate assistance to SAR incidents within the Canadian SAR Area of Responsibility.

Project Phase:

Definition. The FWSAR Major Crown Project will enter the project definition phase as soon as the Preliminary Project Approval (PPA) is received from Treasury Board currently estimated as winter 2010-2011.

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

Prime and Major Sub-Contractors

Prime Contractor	TBD

Major Milestones

Major Milestone	Date
Preliminary Project Approval	Winter 2010/2011
Project Effective Approval	Winter 2012/2013
Contract Award	Spring 2013
First Aircraft Delivery	Fall 2016
Last Aircraft Delivery	Fall 2018
Project Completion	Spring 2019

Progress Report and Explanations of Variances:

The Definition phase of the FWSAR project will start as soon as PPA is received from the TB.

Industrial and Regional Benefits (IRB):

Maximum IRBs will be sought for this project and details will soon be determined by Government stakeholders.

FORCE MOBILITY ENHANCEMENT (FME)

Description:

The Force Mobility Enhancement (FME) project is a two-phase project and is part of the Family of Land Combat Vehicles (FLCV) projects. Phase 1 will procure new Armoured Engineer Vehicles (AEV) to replace the Leopard 1 Badger AEV and produce additional Armoured Recovery Vehicles (ARV) from procured surplus Leopard 2 Main Battle Tanks. Both platforms will support the Leopard 2 Family of Vehicles (FOV) until 2035. In Phase 2, the project will acquire tactical mobility implements for the Leopard 2 MBT to include mine rollers, mine ploughs, and dozer blades.

Project Phase:

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

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

Prime Contractor	To be determined
Major Sub-Contractors	To be determined

Major Milestones

Major Milestone	Date
Identification Phase Approval - Identification Phase	August 2008
Preliminary Project Approval - Definition Phase	June 2009
Request for Proposal - Phase 1	October 2010
Revised Preliminary Project Approval	September 2011
Contract Award - Phase 1	October 2011
Contract Amendment for the delivery of up to 4 ARV	TBC
Request for Proposal (RFP) - Phase 2	February 2011
Contract Award - Phase 2 prototypes	October 2011
Effective Project Approval - Phase 2	May 2013
Initial Operational Capability - Phase 1	April 2014
Full Operational Capability	2015
Project Close-Out	2017

Progress Report and Explanations of Variances:

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

A Letter of Interest (LOI) for Phase 1 was released on July 17, 2009 and closed 28 August 2009. The release of a draft RFP for the acquisition of AEVs (Phase 1) closed on 25 June 2010. The final RFP for Phase 1 has been on the MERX since 5 October 2010 and will close on 11 February 2011. An RFP for Phase 2 will then be released in early 2011.

Industrial and Regional Benefits (IRB):

100% of IRBs will be sought on Phase 1 with the exception of the government-to-government purchase of the Leopard 2 MBT chassis.

HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION (HCM/FELEX)

Description:

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

Project Phase:

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

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

Prime and Major Sub-Contractors

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

Major Milestones

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

Progress Report and Explanations of Variances:

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

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

The HCM/FELEX project is presently in its Implementation Phase and is currently on schedule and within budget.

Industrial and Regional Benefits (IRB):

IRBs for this project are equivalent to 100% of the contracted value.

INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE (ISTAR)

Description:

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

Project Phase:

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

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

Prime and Major Sub-Contractors

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

Major Milestones

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

Progress Report and Explanations of Variances:

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

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

Industrial and Regional Benefits (IRB):

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

JOINT SUPPORT SHIP (JSS)

Description:

The Joint Support Ship (JSS) project will acquire up to three multi-purpose ships. The presence of replenishment ships increases the range of endurance of a Naval Tasking Group, permitting it to remain at sea for significant periods of time without going to shore for replenishment. The JSS will replace the two current Auxiliary Oiler Replenishment vessels that are now more than 40 years old and nearing the end of their service lives. The new ships will provide core replenishment, limited sealift capabilities, and support to forces ashore.

Project Phase:

Definition.

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

Prime and Major Sub-Contractors

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

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

Major Milestones

Major Milestone	Date
Options Analysis	Fall 2009
Revised Preliminary Project Approval	June 2010
Project Definition Phase Recommenced	July 2010
Contract Award Risk Reduction and Design Studies	Spring 2011
Project Definition Phase Complete	January 2013
Effective Project Approval	February 2013
Award of Implementation Contract	March 2013
Delivery of First Ship	Spring 2017
Initial Operating Capability - First Ship	Spring 2018
Delivery of Second Ship	Spring 2018
Final Operating Capability	Fall 2019

Progress Report and Explanations of Variances:

In August 2008, the Minister of Public Works and Government Services Canada announced the termination of the initial procurement process to acquire three Joint Support Ships.

After receiving and evaluating the mandatory requirements for the Joint Support Ship project from the bidders, the Crown has determined that both proposals were not compliant with the basic terms of the Request for Proposal (RFP).

During the August 2008 to September 2009 timeframe, the Project Office conducted Options Analysis that examined cost versus capability of various options.

During late 2009 and early 2010, work continued on a revised procurement approach, centered principally on the concept of early identification and mitigation of program risk, for the JSS project. On June 2010, the JSS project received Treasury Board expenditure authority for its Definition Phase at a substantive cost estimate of $143M ($BY) including HST with an indicative project cost of $2.613B ($BY) including HST.

The revised procurement approach will, in part, seek to undertake assessments of existing, proven designs, as a potential means of reducing project risks and ensuring program affordability. The PMO will be conducting Risk Reduction and Design Studies related to new and existing designs. These studies are scheduled to be conducted in 2011 and will inform the JSS PMO of the viability and affordability of the design options.

Industrial and Regional Benefits (IRB):

IRBs for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.

JOINT UNMANNED AERIAL VEHICLE SURVEILLANCE TARGET ACQUISITION SYSTEM (JUSTAS)

Description:

This project will procure and field a mature Medium Altitude Long Endurance Unmanned Aerial Vehicle system to provide the mandatory capabilities for domestic and international operations. This Joint Unmanned Aerial Vehicle Surveillance Target Acquisition system will complement existing reconnaissance, surveillance, and target acquisition capabilities, increase maritime and arctic domain awareness and provide precision force application in support of Land and Special Operations Forces.

Project Phase:

Option Analysis. The project is currently in Option Analysis.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Department	Industry Canada

Prime and Major Sub-Contractors

Prime Contractor	TBD

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	TBD
Project Effective Approval (EPA)
Contract Award
First aircraft delivery
Last aircraft delivery
Project Completion

Progress Report and Explanations of Variances:

Nil

Industrial Regional Benefits (IRB):

Maximum IRBs will be sought for this project and details will be determined by Government stakeholders.

LIGHT ARMOURED VEHICLE III UPGRADE PROJECT (LAV III UPGRADE)

Description:

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

Project Phase:

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

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

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

Major Milestones

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

Progress Report and Explanations of Variances:

The project received Preliminary Project Approval (PPA) in June 2009 and was announced by the Minister of National Defence (MND) in July 2009. In preparation for the PWGSC TBS Submission, a negotiating team engaged the Original Equipment Manufacturer (OEM) in a technical bid evaluation and an agreement in principal was reached for the definition contract. The PWGSC submission received TB approval in April 2010. The Definition Contract start date was April 2010. Definition work is progressing with upgrade packages designed and built and testing taking place in the fall 2010. Timelines have been adjusted to reflect a later than expected approval of the Definition Contract.

Industrial and Regional Benefits (IRB):

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

LIGHT UTILITY VEHICLE WHEELED (LUVW)

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 liaise within and between field formations.

The LUVW project mandate is to replace 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, for use by field force units; and 1,061 Militarized Commercial Off-the-Shelf (Mil COTS) vehicles (GM Silverado) for use primarily by the Reserve Force.

Project Phase:

Close-Out.

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

Prime and Major Sub-Contractors

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

Major Milestones

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

Progress Report and Explanations of Variances:

The LUVW project received approval to close in October 2010. There are no outstanding issues. All production contracts are closed. Full Operational Capability (FOC) was reached in March 2010 and certified.

An Initial Support Contract (ISC) was awarded to Mercedes Benz Canada (MBC) in November 2005 to provide spares, repair and overhaul, lease of diagnostic equipment, support and engineering services, and 4th line vehicle repair, with the last (3rd) year option exercised in October 2007. This contract was amended and extended to June 2009 at which time a new ISC contract was awarded to MBC in June 2009 to allow continued support of the LUVW SMP fleet. A new support contract was awarded to MBC in April 2010. The contract is valued at $35.1M (including GST) over four years with a provision for three optional one-year extensions.

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

Industrial and Regional Benefits (IRB):

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

LIGHTWEIGHT TOWED HOWITZER (LWTH)

Description:

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

Project Phase:

Definition. The LWTH project entered the Implementation Phase with the approval of the Minister of National Defence in January 2010. The project is planning to enter project close-out in January 2013.

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

Prime and Major Sub-Contractors

Prime Contractor	BAE Systems, Barrow-in-Furrow, Cumbria, UK
Major Sub-Contractor	SELEX Sensor and Airborne Systems Ltd, Edinburgh, UK

Major Milestones

Major Milestone	Date
Identification Phase Approval – Identification Phase	January 2008
Preliminary Project Approval (PPA)– Definition Phase	June 2008
M-777 Foreign Military Sale (FMS) Agreement	November 2008
DGMS Contract Award	November 2009
Effective Project Approval (EPA)– Implementation Phase	January 2010
M777 Support Contract Award	June 2010
Initial Operational Capability	October 2011
Final Operation Capability	December 2012
Project Close-Out	March 2013

Progress Report and Explanations of Variances:

TB approved PPA with indicative total project cost of $278.282M ($BY including GST) and delegated EPA authority to MND in June 2008.

The Foreign Military Sales (FMS) Letter of Offer and Agreement (LOA) to procure 25 M777 howitzers was signed in November 2008.

The Contract Award for the DGMS was signed by the Minister of Public Works and Government Services Canada at the end of November 2009.

The M777 Support Contract was awarded in June 2010.

The Initial Operational Capability was originally forecasted to occur in July 2011. However, it has now shifted to October 2011. This change was a result of unforeseen issues with technical integration.

Industrial and Regional Benefits (IRB):

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

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

MARITIME HELICOPTER PROJECT (MHP)

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.

Project Phase:

Implementation. In November 2010, the project marked the six-year milestone in the Implementation Phase. Delivery of the first interim Maritime Helicopter is scheduled for early 2011. The project focus is now shifting from design and engineering to flight test and preparations for operational testing and evaluation, followed by delivery of the compliant Maritime Helicopters starting in June 2012.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor	Sikorsky International Operations Incorporated, Stratford, Connecticut, USA
Major Sub-Contractors	General Dynamics Canada, Ottawa, Ontario L-3 MAS, Mirabel, Québec, Canada

Major Milestones

Major Milestone	Date
Preliminary Project Approval	June 2003
Invitations for Bids Posted on MERX	December 2003
Effective Project Approval	November 2004
Contract Award	November 2004
First Delivery (Interim Maritime Helicopters)	2011
First Delivery (Compliant Maritime Helicopters)	July 2012
Final Delivery	2013
Project Close-Out	2014

Progress Report and Explanations of Variances:

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

Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on the 12 Halifax Class Frigates have progressed well and are on schedule. The first test flight of the Maritime Helicopter occurred on November 15, 2008. The second Maritime Helicopter, first aircraft with complete Mission System Hardware installed, underwent its first test flight on July 29, 2009. Defence crews, as part of the Combined Test Force with Sikorsky, began aircraft testing on July 10, 2009. The first Ship Helicopter Operation Limitations - Sea Trial and the second Sea Trial are now complete. The project is currently running within its authorized budget.

Industrial and Regional Benefits (IRB):

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

MATERIAL ACQUISITION AND SUPPORT INFORMATION SYSTEM (MASIS)

Description:

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

Project Phase:

Implementation. To date, the project has completed Phases 1 to 4 and implementation of Phase 5 is currently underway where emphasis is on the delivery of the MASIS solution to the Army and Air Force. Project completion is expected for 2012.

Leading and Participating Departments and Agencies

Lead Department or Agency	National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	N/A

Prime and Major Sub-Contractors

Prime Contractor	IBM Canada, Ottawa, Ontario
Major Sub-Contractors	SAP Canada, Ottawa, Ontario Pennant, Ottawa, Ontario, Canada

Major Milestones

Major Milestone	Date
Preliminary Project Approval - Expenditure Authority for Phase 1	June 1998
Contract Awarded for Prime Systems Integrator	December 1998
MASIS system - Go Live Phase 1 (202 Work Depot Montréal)	September 1999
Expenditure Authority for Phases 2 and 3: Implementation of Complex Contracts; Implementation of the MASIS solution to the Navy; Operations Support and Maintenance for MASIS; Planning and scoping for requirements scheduled to be implemented for the Army.	June 2000
Amended Expenditure Authority for Phase 4: Investigation of opportunities to progress the implementation of MASIS to the maximum extent possible within the future available Phase 5 funding; Management of Operations Support and Maintenance for MASIS (outside MASIS project Expenditure Authority); Project was deemed as a Major Crown Project with this approval.	December 2003
Amended Expenditure Authority for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army.	June 2007
Project Close-out	2012

Progress Report and Explanations of Variances:

In June 2000, Phase 1 to 3 EPA received for $147.8M. This has since been completed.

In December 2003, additional funding of $34.4M approved for Phase 4 which has since been completed.

In June 2007, the MASIS project received TB approval for Phase 5 in the amount of $170M. Phase 5 activities are on budget and planned completion of this project is within the 2012 timeframe.

Industrial and Regional Benefits (IRB):

All IRBs are attributed to Ontario since all project expenditures occur in Ontario.

MEDIUM-TO-HEAVY-LIFT HELICOPTER (MHLH)

Description:

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

The Medium-to Heavy-Lift Helicopter project will deliver 15 Chinooks CH-47F helicopters to support land-based domestic and international operations and to support land staff training on the road to high readiness. The project will acquire 15 helicopters, integrated logistic support and other related support elements.

Project Phase:

Implementation.

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

Prime and Major Sub-Contractors

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

Major Milestones

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

Progress Report and Explanations of Variances:

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

Industrial and Regional Benefits (IRB):

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

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT (MSVS)

Description:

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

• Medium-sized Standard Military Pattern (SMP) vehicles:
  - Up to 1,500 vehicles, with options for an additional 650;
  - Up to 150 integrated armour protection systems, with options for an additional 150; and
  - Up to 300 companion Load Handling System trailers, with options for an additional 240.
  

• Medium-sized Militarized Commercial Off-the-Shelf (Mil COTS) vehicles:
  - 1,300 commercial vehicles with militarized components.
  

• Special Equipment Vehicle (SEV) Kits:
  - 868 special equipment vehicle kits, with options for an additional 110.
  

Project Phase:

Definition for SMP and SEV Kitting, and Implementation for Mil COTS and SEV Baseline Shelters.

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval	June 2006
Mil COTS - Invitation for Bids Posted on MERX	November 2007
Mil COTS – Revised Preliminary Project Approval	December 2008
Mil COTS - Contract Award	January 2009
Mil COTS - First Delivery	June 2009
Mil COTS - Delivery Complete	Fall 2010
SEV Baseline Shelter - Invitation for Bids Posted on MERX	May 2008
SEV Baseline Shelter - Revised Preliminary Project Approval	June 2009
SEV Baseline Shelter - Contract Award	July 2009
SEV Baseline Shelter - First Delivery	Summer 2011
SEV Baseline Shelter - Delivery Complete	Spring 2014
SMP - Invitation for Bids Posted on MERX	Early 2011
SMP - Revised Preliminary Project Approval	Spring 2012
SMP - Contract Award	Spring 2012
SMP - First Delivery	Spring 2013
SMP - Delivery Complete	Early 2015
SEV Kits - Invitation for Bids Posted on MERX	Spring 2011
SEV Kits – Effective Project Approval	Spring 2012
SEV Kits - Contract Award	Spring 2012
SEV Kits - First Delivery	Early 2013
SEV Kits - Delivery Complete	Fall 2014
Project Close-out	Fall 2015

Progress Report and Explanations of Variances:

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

• Mil COTS - An Agreement in Principle was reached in August 2008 with the single responsive bidder. Contract approval was received in December 2008. The contract was awarded in January 2009.
• SEV Baseline Shelters - An Agreement in Principle was reached in April 2009 with the single responsive bidder. Rev PPA and contract approval was received in June 2009. The contract was awarded in July 2009.
• SMP - Portions of a draft Request for Proposal (RFP) were posted on the project website in October 2009 for industry comment. The final RFP is planned for release in early 2011.
• SEV Kitting - A draft SEV Kitting RFP was posted on the project website in late December, 2009 for industry comment. The complete draft RFP was released in June 2010 for industry comment. The final RFP is planned for release in spring 2011.

Industrial and Regional Benefits (IRB):

IRBs equivalent to 100% of the contract value will be required for Mil COTS, SMP and SEV Baseline Shelters. IRBs cannot be obtained for SEV Kitting as the international trade agreements (North American Free Trade Agreement (NAFTA), World Trade Organization Agreement on Government Procurement (WTO-AGP)) apply.

MILITARY AUTOMATED AIR TRAFFIC SYSTEM (MAATS) PROJECT

Description:

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

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

Project Phase:

Implementation.

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

Prime and Major Sub-Contractors

Prime Contractor	Raytheon Canada Limited, Richmond, British Columbia, Canada NavCanada, Ottawa, Ontario, Canada
Major Sub-Contractors	Hewlett Packard Canada Ltd, Ottawa, Ontario, Canada CVDS, Montréal, Québec, Canada Frequentis Canada Ltd, Ottawa, Ontario, Canada

Major Milestones

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

Progress Report and Explanations of Variances:

TB granted EPA with project costs of $179.2M.

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

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

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

Industrial and Regional Benefits (IRB):

IRBs to be applied across all regions of Canada.

NEXT GENERATION FIGHTER CAPABILITY (NGFC)

Description:

The objective of the NGFC project is to acquire 65 next generation fighters to replace the CF-18 fleet on its retirement so as to maintain a manned fighter capability necessary for the defence of Canada and North America, and for CF collective expeditionary operations.

Project Phase:

Option Analysis

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

Prime and Major Sub-Contractors

Prime Contractor	Lockheed Martin Aeronautics Company, Fort Worth, Texas, USA

Major Milestones

Major Milestone	Date
Synopsis Sheet (Identification)	January 2010
Synopsis Sheet (Effective Project Approval)	February 2011
Treasury Board Expenditure Authority	March 2011
First Participant Procurement Request	January 2012
Delivery First Aircraft	December 2016
Initial Operational Capability	May 2020
Full Operational Capability	September 2025
Project Close-Out	December 2027

Progress Report and Explanations of Variances:

In July 2010, the Government of Canada announced its decision to acquire 65 F-35 Lightning II fighter aircraft to replace the CF-18 fleet at an estimated acquisition cost of $9B. The process for acquisition is detailed in the Joint Strike Fighter (JSF) Production, Sustainment and Follow-On Development (PSFD) Memorandum of Understanding (MoU). A Project Management Office was stood up in October 2010 and work has been initiated to advance a Treasury Board submission seeking the required expenditure authorities.

Industrial and Regional Benefits (IRB):

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

PROTECTED MILITARY SATELLITE COMMUNICATIONS (PMSC)

Description:

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

Project Phase:

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

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval	August 1999
Effective Project Approval	November 2003
Initial Terminal Delivery	Fall 2012
Initial Satellite Delivery	Winter 2012-13
PMSC System Full Operational Capability	Fall 2017
Project Complete	Winter 2017-18

Progress Report and Explanations of Variances:

The PMSC project is being implemented in two phases.

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

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

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

However, due to slippages in the US DoD overall satellite launch schedule and since the satellite constellation is the heart of the AEHF MILSATCOM and PMSC Systems, DND has had no option other than to accept the schedule setbacks and slip DND milestones, such as the PMSC System Full Operational Capability by several years.

Industrial and Regional Benefits (IRB):

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

SUBMARINE CAPABILITY LIFE EXTENSION (SCLE)

Description:

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

Project Phase:

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

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and its regional agencies

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

Major Milestones

Major Milestone	Date
Treasury Board Approval	June 1998
Main Contract Award	July 1998
Initial Support Contract Award	July 1998
Initial Operational Capability (IOC)	April 2006
Full Operational Capability (FOC)	Fall 2011
Project Close-Out	March 2013

Progress Report and Explanations of Variances:

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

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

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

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

Industrial and Regional Benefits (IRB):

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

TACTICAL ARMOURED PATROL VEHICLE (TAPV)

Description:

Emerging threats have highlighted a number of critical deficiencies with the G-Wagon Light Utility Vehicle Wheeled, the RG-31 Armoured Patrol Vehicle, and the Coyote Light Armoured Vehicle. These deficiencies include capacity, protection, mobility, weapons effects, information and human dimensions.

The Tactical Armoured Patrol Vehicle (TAPV) project will deliver to the land forces a wheeled combat vehicle that will overcome these deficiencies. This vehicle will fulfill a wide variety of roles on the battlefield, including but not limited to surveillance, security, command and control, cargo and personnel carrier. It will have a high degree of tactical mobility and provide a very high degree of crew protection.

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

Project Phase:

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

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

Prime Contractor	Not identified at this time
Major Sub-Contractors	Not identified at this time

Major Milestones

Major Milestone	Date
Identification Phase approved	March 2008
Project Charter approved	May 2009
Preliminary Project Risk Assessment endorsed	June 2009
Definition Phase approved	June 2009
Statement of Operational Requirements approved	January 2010
Implementation Phase approved	Spring 2012
Contract awarded	Spring 2012
Initial Operational Capability Delivery certified	2013
Full Operational Capability Delivery certified	2015
Project Completion Report Approved	2017

Progress Report and Explanations of Variances:

In June 2009, TB granted PPA with approved indicative project cost of 1.312B ($BY), including GST. Further, TB granted Expenditure Authority for Definition at a substantive cost of $39.2M ($BY). The TAPV Project is within budget.

In November 2008, the Defence Senior Project Advisory Committee approved a procurement strategy for a phased approach within a competitive process. Consequently, the TAPV Project issued a Letter of Interest/Request for Price and Availability (LOI/P&A) in July 2009 to support cost planning. Results were received in September 2009. Given the multiple contenders who expressed interest in the LOI/P&A, the project issued a Solicitation of Interest and Qualification (SOIQ) in March 2010 to pre-qualify potential contenders against essential TAPV requirements. Following the SOIQ evaluations, the project will issue a Request for Proposal (RFP) in early 2011 to those contenders that have addressed the SOIQ requirements. Final contract awarding will be completed in spring 2012 after Implementation Phase approval is given.

Industrial and Regional Benefits (IRB):

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

TANK REPLACEMENT PROJECT (TRP)

Description:

The purpose of the Tank Replacement Project (TRP) is to replace Canada's aging Leopard C2 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The Tank Replacement Project is divided into two phases. Phase 1 consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT), two Armoured Recovery Vehicles (ARVs) and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBT from the Netherlands Government. Phase 2 consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 tanks and armoured recovery vehicles into service with the CF as well as the Integrated Logistics System (ILS) inherent to the variants.

Project Phase:

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

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

Phase 1
Prime Contractor for ARV upgrades	Rheinmetall Land Systeme (RLS), Germany
Prime Contractor for MBT upgrades	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for loaned tanks	German Government
Prime Contractor for tank purchase	Netherlands Government
Phase 2
Prime Contractor for 20 Leopard 2 A4 (operational) tanks	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 20 Leopard 2 A6 tanks for return to German Government	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 42 Leopard 2 A4 training tanks	Rheinmetall Canada Inc (RhC), Canada
Prime Contractor for 8 Leopard 2 ARVs	To be determined
Prime Contractors for ILS related contracts: 1. Ammunition 2. Simulators 3. Special Tools & Test Equipment (STTE) 4. Initial Provisioning of Spare Parts	To be determined To be determined To be determined To be determined

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval (PPA)	March 2007
Phase 1 - Loan Agreement with German MoD	May 2007
Phase 1 - Contract to KMW for upgrades to Loaned tanks	May 2007
Phase 1 - Contract to RLS for upgrades to Loaned tanks	May 2007
Initial Operating Capability (IOC)	August 2007
Phase 1 - Acquisition of tanks from Dutch Government	December 2007
Phase 1 – PPA amendment approved by Treasury Board	June 2008
Treasury Board Effective Project Approval (EPA) with conditions	June 2009
Phase 2 – Contract to KMW for urgent requirement of 20 Leopard 2 A4 Operational tanks (repair, overhaul and upgrade)	June 2009
Phase 1 – Contract to KMW for replacement in kind tank return to German MoD - 20 x A6 (NLD) tanks	July 2009
Phase 2 - Contract for repair and overhaul of 42 x Leopard 2A4 CAN (Training) tanks	August 2010
Phase 2 – Contract for 8 ARVs	March 2011 (TBC)
Full Operational Capability (FOC) – (Phase II)	January 2014
Project Close-Out	January 2015

Progress Report and Explanations of Variances:

• Treasury Board approved the PPA Amendment in June 2008 allowing the Replacement in Kind concept for the loaned tanks. Canada will retain the loaned German Leopard 2A6 M. In return, the purchased Dutch Leopard 2 A6 will be converted to a German standard and returned to German Ministry of Defence.
• EPA was approved by TB in June 2009 supporting the Phase 2 procurement strategy including development of a work capacity in Canada.
• Development of this capacity resulted in the FOC change to January 2014. In addition, cost continues to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities.

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

Industrial and Regional Benefits (IRB):

No IRBs were required for Phase 1. For Phase 2, IRBs are a requirement. Bidders will be required to submit acceptable IRB proposals with their bids. The successful contractors will be required to undertake IRB activities in Canada valued at 100% of the contract value. IRB proposals will be evaluated by representatives of Industry Canada and the Regional Development Agencies. Contractors will be required to submit annual IRB reports detailing their achievements, which Industry Canada will review and verify.

WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION (WLAV-LE)

Description:

The Wheeled Light Armoured Vehicle - Life Extension (WLAV-LE) has addressed deficiencies in command, combat support and combat service support capabilities to ensure that the current fleets of wheeled armoured vehicles are capable of operating in the current and anticipated threat environment. The WLAV-LE improved the mobility, protection and capability of the in-service Bison fleets (primarily composed of Infantry Section Carriers (ISC)) through a life extension and conversion to command and support variants dedicated to the LAV III and LAV-Recce (Coyote) fleets. The following capabilities are being provided in the 2004-11 timeframe:

1. Conversion of the entire Bison fleet of 199 vehicles to 32 Ambulances, 16 Electronic Warfare, 4 Nuclear, Biological and Chemical Defence, 32 Maintenance and Recovery Vehicle, 32 Mobile Repair Team, 82 Command, Control, Communications and Intelligence vehicles;
2. Provision of updated add-on armour packages for operations stock as a result of changes made to existing vehicles, to provide the crew and mission essential equipment with a basic level of protection; and
3. Sufficient Integrated Logistics Support to maintain the fleet for the first two years of operations.

Project Phase:

Implementation. Just over 98% of the Bison fleet has been converted.

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 Atlantic Canada Opportunities Agency

Prime and Major Sub-Contractors
Bison Re-Role

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

Major Milestones

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

Progress Report and Explanations of Variances:

In September 2006, TB granted a reduced expenditure authority to WLAV-LE due to the cancellation of the Armoured Vehicle General Purpose (AVGP) component of the project. This change resulted from the decision taken by Defence in March 2005 to retire the AVGP fleet for a revised project cost of $170.3M ($BY). The original planned dates for the Initial Operational Capability (August 2008) and Full Operational Capability (December 2009) have been revised as a result of delays experienced in getting contract approval, in completing the prototype build and in achieving a successful first article inspection for the Mobile Repair Team variant. The WLAV-LE is currently running under budget and is to be completed by March 2011.

Industrial and Regional Benefits (IRB):

There is no IRB strategy associated with this project.

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

Summary of Capital Spending by Program Activity

($ Thousands)

Program Activity	Forecast Spending 2010–11	Planned Spending 2011–12	Planned Spending 2012–13	Planned Spending 2013–14
Defence Science and Technology	31,449	20,858	18,925	19,296
Recruiting of Personnel and Initial Training	9,338	2,610	2,367	2,414
Equipment Acquisition and Disposal	2,545,885	3,220,409	3,782,625	3,921,891
Real Property and Informatics Infrastructure Acquisition and Disposal	704,360	628,124	566,933	552,916
Maritime Readiness	2,709	32,554	29,760	30,302
Land Readiness	114,474	36,671	33,473	34,086
Aerospace Readiness	88,047	33,062	30,292	30,826
Joint and Common Readiness	197,953	176,309	198,477	205,895
Situational Awareness	150,960	105,310	95,526	97,137
Canadian Peace, Stability and Security	6,431	16,248	14,672	14,961
Continental Peace, Stability and Security	5,352	3,180	2,909	2,961
International Peace, Stability and Security	541,121	319,451	290,174	295,873
Defence Team Personnel Support	15,580	21,254	19,313	19,684
Canadian Identity	11,099	15,053	13,666	13,932
Environment Protection and Stewardship	3,347	1,129	1,031	1,049
Non-Security Support	78	105	95	97
Internal Services	63,865	32,248	29,350	29,928
Total	4,492,051	4,664,573	5,129,587	5,273,247