ARCHIVED - 2007-2008 DPRs - Status Report on Major Crown Projects

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

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Agriculture and Agri-Food Canada

Table 7: Status Report on Major Crown Projects

Description:

The National Land and Water Information Service is an initiative of Agriculture and Agri-Food Canada (AAFC) under the Agricultural Policy Framework (APF) to make available, to land-use decision makers, decision tools and environmental information to support and inform local and regional land-use planning and management. This supports the government's objectives for an environmentally sustainable agriculture sector.

The National Land and Water Information Service will support improved decision making in agriculture through the provision of timely and relevant geo-spatial information to land management decision makers across Canada. The Service will provide a coordinated national approach for managing, interpreting and disseminating information, by strategically linking the land, soil, water, air, climate and biodiversity capacities of federal departments, provincial and municipal governments and non-governmental organizations. The federal government's desire for promotion of technology through the Government On-Line initiative strengthens the information provision objective of NLWIS.

Project Phases:

Project Definition (2004/05);
Project Implementation (2005/09): Phase 1 (2005/06), Phase 2 (2005/07), Phase 3 (2006/08), Phase 4 (2008/09)

Leading and Participating Departments and Agencies:

Lead Department or Agency:	AAFC
Contracting Authority:	AAFC, PWGSC
Participating Departments and Agencies:	NRCan, EC, SC, DFO, HC, PWGSC, CSA, INAC, TBS, PSEPC, IC, PC, Archives

Prime and Major Sub-Contractors:

Prime Contractor:
Major Sub-Contractors:	The Halifax Group; Fujitsu Consulting Canada
Based on AAFC's existing capabilities with regard to geomatics information technology applications, AAFC will retain overall responsibility for design, development, delivery and ongoing maintenance of the National Land and Water Information Service. Private sector resources will be obtained when required to meet discrete identified gaps in AAFC's internal capabilities or internal resource availability. In order to ensure compliance with project timelines and minimize transaction and administration costs, existing Government of Canada (GOC) and AAFC procurement instruments (Supply Arrangements, Standing Offers, etc) will be used as appropriate to the circumstances. Procurement of specialized IT and other professional services will be structured to maximize knowledge transfer to AAFC in order to ensure cost-effective maintenance of the National Land and Water Information Service.

Major Milestones:

Major Milestones	Date
Milestone
Preliminary Project Approval	10-Apr-03
Project Management Office Established	30-Jun-03
Preliminary Project Approval Amendment	08-Apr-04
Proof of Concept Completed	31-Jan-05
Effective Project Approval Documentation Completed	31-Jan-05
Effective Project Approval	02-May-05
Phase 1 (Single Window) completion	31-Mar-06
Phase 2 (Geospatial Environment) commencement	01-Sep-05
Phase 2 (Geospatial Environment) completion	30-Nov-07
Phase 3 (National Source for Agri-environmental Geospatial Information) commencement	01-Jan-06

Progress Report and Explanations of Variances:

The Treasury Board approved the National Land and Water Information Service (NLWIS) with an estimated cost of $100.1 million. The NLWIS Project received Preliminary Project Approval on April 10, 2003 and was designated a Major Crown Project. The National Land and Water Information Service Project received Effective Project Approval from Treasury Board in May 2005. Phase 1 (Single Window) was completed in March 2006. Phase 2 (Geospatial Environment) was initiated in September 2005 and was completed in November 2007. Phase 3 (National Source for Agri-environmental Geospatial Information) commenced in January 2006. Phase 3 will provide accessibility to new GIS applications and services to users across Canada. Direct access to geospatial data, maps and tools will be made available. Users will be able to access information and data in both official languages and in standardized formats.

No additional funding has been provided by the Treasury Board or by the department. NLWIS is currently running on budget with the completion date still estimated to be March 2009.

Industrial Benefits:

The National Land and Water Information Service is a national program that will use and provide information in all the provinces. Resources required to support implementation will be located across Canada.

Canada Border Services Agency

Status Report on Major Crown Projects

Air Cargo Security

1. Description

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

2. Project Phase

Phase 1: completed by Transport Canada
Phases 2 and 3: project development and pilot testing; to be completed by March 31, 2009.

3. Leading and Participating Departments and Agencies

Table 3.10: Leading and Participating Departments and Agencies

Leading and Participating Departments and Agencies
Lead department or agency	Transport Canada
Contracting authority	Public Works and Government Services Canada and the Canada Revenue Agency
Participating departments and agencies	Canada Border Services Agency

4. Prime and Major Subcontractors

Table 3.11: Prime and Major Subcontractors

Prime and Major Subcontractors
Prime contractor	n/a
Major contractors	n/a

5. Major Milestones

Start date: September 1, 2006
Projected date of completion: March 31, 2009

• The project definition will lay the groundwork for future enhancements leading to a measured, balanced Canadian approach to align the Air Cargo Security initiative with international standards.
• The project will explore ways to further protect aviation security and those working in the air cargo supply chain while ensuring the efficient flow of goods both domestically and internationally.
• The milestones listed below are to ensure the project is progressing in an approved manner as per the approved project plan.

Table 3.12: Major Milestones

Major Milestones
Ref. #	Milestones	Target Date
1	Report to the Treasury Board of Canada Secretariat (TBS) on project management plans and controls submitted.	June 30, 2007
2	Design, development and evaluation security standards completed.	July 31, 2007
3	Definition of the operating environment, characteristics and screening models for “break bulk” air cargo screening completed.	August 31, 2007
4	Commercial off-the-shelf Secure Supply Chain Management System (SSCMS) prototype populated.	December 31, 2007
5	Initial evaluations of screening technologies in controlled environment completed.	January 31, 2008
6	Interim report on project progress submitted to the TBS.	March 31, 2008
7	Piloting of the SSCMS prototype completed.	September 30, 2008
8	Report on the Security and Prosperity Partnership of North America commitments for air cargo security completed.	June 30, 2008
9	Evaluation of security assessments and plans for the project completed.	July 31, 2008
10	Assessment of potential program enhancements for the CBSA that could be derived from the SSCMS completed.	July 31, 2008
11	Recommendations for air cargo screening for the Air Cargo Security initiative completed.	August 31, 2008
12	Interoperability analysis between Transport Canada and the CBSA completed.	September 30, 2008
13	Supply-chain system regulatory and compliance program drafted.	December 31, 2008
14	Final recommendations for the Air Cargo Security initiative completed, including the memorandum to Cabinet and the TBS submission.	December 31, 2008
15	Close out of Phase 2 and Phase 3.	March 31, 2009

6. Progress Report and Explanations of Variances

• The CBSA is accountable for completing milestone 10.
• Transport Canada is responsible for milestones 1 through 15 except for milestone 10.
• Work continues on milestone 10; however, the CBSA requires information from Transport Canada that will not be available until February 2009.
• Therefore, milestone 10 will be delayed, but will be completed in this current phase, which coincides with the fiscal year ending March 31, 2009.

7. Industrial Benefits (Business Goals)

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

eManifest

1. Description

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

eManifest is a key priority under the Security and Prosperity Partnership of North America. Under eManifest, carriers, freight forwarders and importers will transmit real-time and concurrent advance commercial and crew information to the CBSA. eManifest will contribute to a key Agency strategy, to “push the border out,” and will position the CBSA to obtain the information necessary to identify and interdict threats before their arrival in Canada. This next phase of the ACI solidifies the Agency’s commitment to providing CBSA officers with electronic pre-arrival cargo information so that they are equipped with the right information at the right time to identify health, safety and security threats related to commercial goods before the goods arrive in Canada.

eManifest will feature the following:

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

2. Project Phase

The eManifest initiative is currently in the analysis and design phase.

• The following eManifest readiness activities have been completed:
  • Information technology (IT) prerequisites; and
  • Synchronous Technology and Application Release (STAR) configuration and independent service delivery (ISD).
• Preliminary project approval was granted on October 5, 2006.
• Effective project approval (EPA) was granted on November 29, 2007.

3. Leading and Participating Departments and Agencies

Table 3.13: Leading and Participating Departments and Agencies

Leading and Participating Departments and Agencies
Lead department or agency	Canada Border Services Agency
Contracting authority	Canada Revenue Agency and Public Works and Government Services Canada
Participating departments and agencies	n/a

4. Prime and Major Subcontractors

Table 3.14: Prime and Major Subcontractors

Prime and Major Subcontractors
Prime contractor	n/a
Major contractors	n/a

5. Major Milestones

• Project start date: October 2006.
• Estimated date of completion: March 2012.
  • On October 5, 2006, eManifest received preliminary project approval.
  • In January 2007, the eManifest Stakeholder Partnership Network was launched to establish formal consultations with the trade community.
  • On November 29, 2007, eManifest received EPA.
  • In November 2007, the following eManifest readiness activities were implemented:
    • IT prerequisites; and
    • Phase I deployment of the STAR configuration and ISD.

Table 3.15: Major Milestones

Major Milestones
Ref. #	Milestones	Target Date
1	eManifest readiness – IT prerequisites and Phase I deployment of STAR configuration and ISD	Implemented November 2007
2	eManifest readiness – Automated in-transit pilot project (Phase I): Enhancements to support linkages between the existing commercial systems. Enhancements to the notification system to advise trade chain partners when information has been received.	June 2008
3	Electronic reporting for rail.	November 2008
4	EDI reporting in highway mode. Internet portal for highway mode. Passage for highway mode (Phase I). Picture-in-booth technology. An eManifest compliance management and client support program. Ongoing enhancements to risk-assessment and business-intelligence systems.	July 2009
5	EDI reporting for secondary cargo. Internet portal for secondary cargo. Enhanced notification system. An eManifest compliance management and client support program. Ongoing enhancements to risk-assessment and business-intelligence systems.	December 2009
6	EDI reporting for importer admissibility data. An eManifest compliance management and client support program. Internet portal for importers/brokers. Enhanced notification system. Passage for all modes. Ongoing enhancements to risk-assessment and business-intelligence systems.	March 2010
7	Risk assessment for all modes.	August 2010
8	EDI reporting for marine/air crew. Risk assessment for marine/air retrofits. Passage for highway mode retrofit.	April 2011
9	Business intelligence data warehouse.	August 2011

6. Progress Report and Explanations of Variances

To date, eManifest has accomplished the following:

• the project was granted EPA by the Treasury Board on November 29, 2007;
• the legislative amendments required to support eManifest were tabled in the House of Commons on February 15, 2008;
• the eManifest readiness activities (Phase I IT prerequisites and TITAN online updates) were implemented;
• extensive external, internal and binational consultations on the design and development of eManifest were held;
• staffing and training of substantive employees took place for both the eManifest business and development areas; and
• revised target dates were set for certain major milestones following a delay in obtaining EPA.

7. Industrial Benefits (Business Goals)

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

Canadian Space Agency

3.3.5) Status Report on Major Crown Projects

RADARSAT-1

Description

RADARSAT-1, Canada's first Earth Observation satellite is the only fully operational civilian remote sensing satellite that carries Synthetic Aperture Radar (SAR). This technology, contrary to optical sensor satellites, has the capacity to image day and night, in all weather conditions, regardless of cloud cover, smoke, haze and darkness. Launched in November 1995, RADARSAT-1 was meant to operate for five years to consistently supply timely and high-quality data to RADARSAT International (RSI), now a wholly owned subsidiary of MacDonald, Dettwiler and Associates (MDA), and other partners (federal and provincial government departments, NASA and the U.S. National Oceanic and Atmospheric Administration). RADARSAT-1 has continued to supply SAR data to clients in its extended mission, now in the 13^th year of operation.

RADARSAT-1 operations continued with the same level of high performance for satellite reliability and image production last year. Since RADARSAT-2 has now been commissioned and declared operational, the CSA has notified NASA and NOAA that the RADARSAT-1 CSA-NASA-NOAA IMOU is terminated. In other words, no new RADARSAT-1 data would be available to NASA and NOAA after May 2, 2008 under this IMOU. RADARSAT-1 operations are to continue for 2008-2009 and the CSA has started deliberations on the future of RADARSAT-1 operations through consultations with main users.

RADARSAT-1 acquires high quality images of the Earth, covering most of Canada every 72 hours and the Arctic every 24 hours. It has proven itself in gathering the data needed for more efficient resource management (e.g. support to fishing, shipping, oil and gas exploration, offshore drilling, mapping) as well as ice, ocean and environmental monitoring, disaster management, and Arctic and offshore surveillance.

Leading and Participating Departments and Agencies

Sponsoring Agency:	Canadian Space Agency
Contracting Authority:	Public Works and Government Services Canada
Participating Departments:	Environment Canada Natural Resources Canada (Canada Centre for Remote Sensing)

Prime and Major Sub-Contractors

Prime Contractor: EMS Technologies (now MacDonald, Dettwiler and Associates)	Ste.-Anne-de-Bellevue, Quebec
Major Sub-Contractors: MacDonald, Dettwiler and Associates SED Systems EMS Technologies COM DEV Lockheed Martin	Richmond, British Columbia Saskatoon, Saskatchewan Ottawa, Ontario Cambridge, Ontario Longueuil, Quebec
Other Contractors: Ball Aerospace RADARSAT International (RSI) (now MacDonald, Dettwiler and Associates)	Boulder, Colorado Richmond, British Columbia

Major Milestones

Major milestones of the RADARSAT-1 Major Crown Project are now complete.

Major Milestones Preliminary studies	Date Complete
Feasibility and concept definition	Complete
Systems requirement and preliminary design	Complete
Development and testing up to qualification test review	Complete
Manufacture of the prototype flight sub-systems up to acceptance testing of the sub-systems	Complete
Assembly and integration of the sub-systems up to flight readiness review, plus post-launch and commissioning activities up to system acceptance	Complete
First Antarctica mission Second Antarctica mission Original Mission Life of five years	Complete Complete Complete
Satellite operations	April 1996 to April 2008 and beyond

Progress Report and Explanation of Variances

Effective Program Approval was obtained for RADARSAT-1 in March 1991, with launch in November 1995 and beginning of operations in April 1996. The initial system included receiving stations for Synthetic Aperture Radar (SAR) data in Prince Albert (Saskatchewan), Gatineau (Quebec), Fairbanks (Alaska) and McMurdo (Antarctica). The CSA and RADARSAT International (now MDA) have since signed agreements with another 31 network stations distributed around the world: Argentina, Australia, Brazil, China, Japan, Kasakhstan, South Korea, Malaysia, Norway, Puerto-Rico, Russia, Saudi Arabia, Singapore, Taiwan, Thailand, Turkey, the United Kingdom and the United-States. Presently, a second station in Norway is undergoing the certification process. This list includes the agreements that have been also signed with transportable stations for the direct reception of RADARSAT-1 data: one in Italy, five in the U.S., one in Taiwan and one in France. Even more stations are expected to join the RADARSAT network in 2008.

Following a commissioning period, routine operations of RADARSAT-1 commenced in April 1996. The average system performance is being maintained at 95.8%. The worldwide client base includes more than 600 commercial and government users from over 60 countries.

Several system upgrades were completed over the past few years to enhance performance, reliability, and maintainability of RADARSAT-1. Highlights include: June 2005 - addition of a new Order Desk server for Joint Contingency Operation with ESA; November 2005 - completion of scheduled MMO/DBM database server and controller system upgrades (SunFire V240/Solaris 9 equipment); January 2006 - completion of a scheduled upgrade of all five planning stations in the MMO (SunBlade 100/Solaris 8 equipment); November 2006 - completion of a scheduled Order Desk dual redundant configuration system upgrade (SunFire V210/Solaris 10 equipment) and an improved algorithm and tool for computing shared SAR usage statistics was developed, validated and made operational.

Since October 2000, the CSA is a signatory, along with ESA and the Centre National d'Études Spatiales (CNES) in France, to the 'International Charter on Space and Major Disasters'. The emphasis of the Charter is on multi-satellite support for disaster response and mitigation efforts around the world utilising RADARSAT-1 and satellites of other Charter member agencies. Since its official launch, the Indian Space Research Organisation (ISRO), the National Oceanic and Atmospheric Administration (NOAA), Argentina's Comisión Nacional de Actividades Espaciales (CONAE), the Japanese Aerospace Exploration Agency (JAXA), the United States Geological Survey (USGS) and the Disaster Monitoring Constellation (DMC) have also joined the Charter and participate fully in its operations.

As of March 31^st 2008, there have been 170 activations of the Charter for events such as: floods in Afghanistan, New York state, Uruguay, UK, Pakistan, China, India, Vietnam, North Korea, West Africa, Slovenia, Dominican Republic, Mexico, Bangladesh, Fiji, South Africa, Bolivia, Ecuador, Namibia and Illinois; Tsunami in the Solomon Islands; Earthquakes in Afghanistan, Chili, Peru and, Rwanda; Volcanic eruptions in Colombia and Ecuador; oil spills off the coasts of Chili an Norway; forest fires in the Canari Islands, Paraguay, Greece, California and Chili and, wind storms (hurricanes and tornadoes) in Mexico, Nicaragua and USA. The Charter also covered one activation in Canada in April 2007 when hundred of fishing vessels were caught in ice on the east cost of Newfoundland and Labrador. The three most recent devastating disasters, namely the Hurricane Dean in Mexico, the Greece forest fires and the floods in Namibia-Angola were covered with the assistance of Canada's RADARSAT-1.

The RADARSAT-1 system has been improved to provide on average a less than 2.5-hour turnaround in the electronic delivery of images to the Canadian Ice Service (CIS) for the production of ice charts and bulletins for the Canadian Coast Guard and other marine clients. The CIS continues to be one of the leading users of RADARSAT-1 data since the first operational data began to flow in February 1996. Recently, the CIS has been collaborating with Noetix Research, the CSA, and RSI (now MDA) on an ESA-sponsored Global Monitoring for Environment and Security (GMES) Project - The Northern View - to provide regular RADARSAT-1 images in support of a Floe Edge Service for two communities in the Canadian Arctic.

The RADARSAT-1 Background Mission has archived one of the largest microwave remote sensing data collections in the world. In fact, it is the first multi-mode uniformly collected database of its kind ever created. The data archive is the result of several Background Mission global coverage campaigns undertaken in the past seven years. These include a complete coverage of the world's continents, continental shelves and polar ice caps, as well as complete coverage of nearly the Earth's entire landmass with two RADARSAT-1 imaging beams for the first ever beam-pair stereo data collection. This is the world's largest radargrammetric dataset currently available. Some of the continents, including North America, were covered more than once to generate seasonal snapshots in the form of wide-area SAR mosaics. High-resolution RADARSAT-1 image mosaics of Canada, the U.S., Australia and Africa were produced with the Background Mission data. Several time- and site-specific coverage types have also been done, such as that of the remote oceanic island localities, the world's major cities and capitals. A seasonal coverage of the tropical deltas is also underway, as is also a four-season continuous coverage of the Arctic. The latter coverage, which now has uninterrupted data records over the Arctic since the summer of 2003, supports the growing interest in the Arctic and climate change captured within the International Polar Year (IPY) activities. These baseline coverage campaigns of RADARSAT-1 have established benchmarks for the follow-on Canadian SAR missions to build upon.

MacDonald, Dettwiller and Associates (MDA) Geospatial Services Inc. (GSI) continues to provide Earth-Observation data, derived information products, and leading-edge services to global clients. The broad range of MDA/GSI products includes geo-corrected imagery, digital elevation models, and application-specific products such as flood and ocean oil-seep vectors to meet the demands for new markets. Products are delivered to clients via Internet in near-real time for time-critical operations such as disaster management and ship navigation. Other services include training, monitoring and emergency response services, and custom product generation, as well as Geographic Information Systems (GIS) project implementation.

Industrial Benefits

The Canadian Space Agency undertook a study to determine the achievements of RADARSAT data in support of ice mapping and related activities in Canada. To date, the Canadian Ice Services (CIS) is the only Canadian Government operational user of RADARSAT-1 data. RADARSAT-1 provides observations over a wider geographical area, at much lower cost and risk, and in much less time than with an aircraft. As a result, CIS has been able to improve its operational efficiency. Over five years (1995 to 2000), the net average annual savings to CIS operations have been about $7.7 million per year ($38.5 million over 5 years). The same annual benefits have continued for the past eight years.

The Canadian Coast Guard (CCG), the largest customer of CIS products, has felt these benefits most significantly. The CCG Ice Operation Centres can provide improved routing information to commercial shipping, which allows for faster transit times. The shipping industry has benefited from the accuracy of RADARSAT information to produce ice charts. The shipping companies believe that as a result of RADARSAT- based ice charts, there have been savings in transit time through ice-infested waters. These commercial shipping savings are estimated to be $18 million a year. Other benefits included less damage to ships and a reduction in the need for CCG escorts. As for the CCG, an estimated dollar savings in both operating costs and transit time to be between $3.6 million and $7 million a year, depending on the severity of ice conditions.

In the past, the prime contractor SPAR and its Canadian sub-contractors created over 2,000 person-years of high technology employment during the construction phase of RADARSAT-1. Ongoing mission operations employ 75 people at the CSA's headquarters in St-Hubert (Quebec), 7 in Saskatoon (Saskatchewan), 15 at ground stations in Prince Albert (Saskatchewan) and Gatineau (Quebec), as well as more than 80 at RSI (now MDA) in Richmond (British Columbia). In the highly competitive marketplace for space-based information, MDA continues to capture roughly 15% of the world's space borne remote sensing market. MDA has continued to process scenes and integrate RADARSAT data into information products for delivery to nearly 600 clients in 60 countries, and furthermore, MDA has signed up 80 international distributions, 18 RADARSAT-1 Network Stations and 11 Resources Centres. The market development for data archives is likely to be significant and an area in which new benefits may develop.

RADARSAT-2

Description

RADASART-2, is a Canadian satellite from the next generation with its synthetic aperture radar (SAR) technology and the most advanced satellite of its kind in the world. RADARSAT-2 provides all-weather, day-and-night coverage of the entire globe to support fishing, shipping, oil and gas exploration, offshore drilling, mapping and ocean research. Equipped with a C-band radar system, it is the first fully commercial SAR satellite to offer multi-polarization, an important aid in identifying a wide variety of surface features and targets. It also has the capability to image both the right and left with a resolution down to three metres and to access an area of 800 kilometres on either side. This translates into a new range of products and services, which contributes valuable new information on natural resources and the global environment.

The RADARSAT-2 Major Crown Project, in partnership with MacDonald, Dettwiler and Associates (MDA), carried out the design, development, testing, deployment and operations of a space-borne SAR satellite to provide global coverage of terrestrial phenomena as a follow-up to RADARSAT-1. The current estimated total cost from CSA's budget is $418.6 million.

RADARSAT-2's design and construction improves upon RADARSAT-1, with new capabilities to ensure Canada's continued leadership in the satellite remote sensing global marketplace and to create a commercial industrial satellite remote sensing industry in Canada.

Leading and Participating Departments and Agencies

Sponsoring Agency:	Canadian Space Agency
Contracting Authority for the CSA/MDA Master Agreement:	Canadian Space Agency
Participating Departments:	Natural Resources Canada (Canada Centre for Remote Sensing) Environment Canada Industry Canada Fisheries and Oceans National Defence Foreign Affairs International Trade Agriculture Canada

Prime and Major Sub-Contractors

Prime Contractor: MacDonald Dettwiler, and Associates (MDA)	Richmond, British Columbia
Major Sub-Contractors: EMS Technologies (now MacDonald Dettwiler, and Associates) Alenia Aerospazio AEC Able Engineering Co. RADARSAT international (RSI) (now MacDonald Dettwiler, and Associates) STARSEM	Ste.-Anne-de-Bellevue, Quebec Rome, Italy Goletta, California Richmond, British Columbia Baikonur, Kazakhstan

Major Milestones

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

Phase	Major Milestones	Date
A and B	Requirement Definition	June 1999
C	System Design	May 2002
D	Sub-system Construction Integration and Testing Pre-launch Preparations Launch/System Commissioning	September 2005 January 2007 July 2007 December 2007 April 2008
E	Operations	2008 to 2015

Progress Report and Explanation of Variances

In June 1994, the government directed the CSA to develop an arrangement with the private sector for the development and operation of a RADARSAT follow-on program to maintain continuity of data following RADARSAT-1. In February 1998, following a formal Request for Proposal, MDA was selected to construct and operate RADARSAT-2.

The CSA and MDA signed a Master Agreement in December 1998 for the RADARSAT-2 mission, under a firm price agreement in which the government contribution was $225 million, in exchange for data. MDA was to invest $80 million. The Master Agreement between the CSA and MDA was updated in January 2000 to reflect changes in the schedule and the latest cost estimates. The company (MDA) is responsible for spacecraft operations and business development, while the CSA is responsible for arranging the launch and maintaining the long-term national archive of RADARSAT-2 data. The CSA will also provide an additional "in-kind" contribution of certain assets, plus the services of its David Florida Laboratory and the NRC Institute of Aerospace Research Laboratory for spacecraft integration and testing.

In November 1998, Treasury Board approved the RADARSAT-2 Major Crown Project with a funding envelope of $242.2 million. In March 2000, Treasury Board approved an increase of $47.1 million to cover the cost of changing bus suppliers, required by U.S. -government restrictions imposed on the U.S. bus supplier at that time, and an increase of $12.3 million for upgrades to existing satellite ground station infrastructures. In June 2000, Treasury Board approved an increase of $108 million to cover the cost of procuring a commercial launch as a result of NASA withdrawing from the agreement to provide launch for RADARSAT-2 in exchange for data, as it did for RADARSAT-1. In June 2001, Treasury Board approved an increase of $6 million to cover the cost of critical modifications to be made to the RADARSAT-2 spacecraft in order to accommodate a potential future tandem mission with RADARSAT-3.

The development of the RADARSAT-2 satellite was completed at a slower pace than planned. Delays encountered by the main contractor and sub-contractors in the production of some of the satellite components have resulted in a significant delay in the assembly, integration and testing of the spacecraft. The Extendible Support Structure (ESS), one of the primary spacecraft sub-systems, was delivered to the Assembly, Integration and Test (AI&T) site at the David Florida Laboratory (DFL) in October 2003. The Solar Arrays and the Bus were delivered to DFL in April and May 2004, respectively. The SAR antenna was delivered in September 2005. The assembly, integration and test of the RADARSAT-2 spacecraft at the David Florida Laboratory, along with the operations-preparations activities at the CSA in St-Hubert were successfully completed in September 2007. RADARSAT-2 was launched on December 14, 2007 and associated commissioning activities were completed by the end of April 2008.

The additional costs to complete the construction and launch of RADARSAT-2 were at the main contractor's expense. However, these additional delays required that the CSA RADARSAT-2 project office remained operational to cover the remaining activities until project close-out, now expected by the end of 2008-2009. The necessary funding to cover all additional expenditures for the CSA is from within the project risk funding envelope and associated project authorities.

Industrial Benefits

Significant industrial benefits in the space and Earth observation sectors are expected from this next-generation satellite system. The RADARSAT-2 program will generate employment growth in the Canadian knowledge-based economy, mostly from export sales, and spur the growth of small- and medium-sized businesses as the Canadian infrastructure and services industry continues to grow.

A major objective of this project is the transition of the Earth Observation industry from the public sector to the private sector. The intention is to build on the SAR data and value-added markets established with RADARSAT-1 to strengthen the Canadian industry's position as a supplier of SAR-related technology, systems and value-added products and services. Specifically, manufacturing potential and competitiveness will be encouraged in Canadian industry in the areas of phased array antenna design/manufacture, high performance receiver/transmitter design and manufacture, and enhanced structure design. Moreover, opportunities will be created for the export of ground station systems. The new capabilities also make new applications possible, creating new and expanded markets for data sales and value-added products.

As of March 31, 2008, the CSA has funded $384.7 million worth of work to Canadian industry directly attributable to the RADARSAT-2 Major Crown Project (MCP). Direct industrial benefits from the construction of RADARSAT-2 will benefit all regions of Canada. The regional distribution of direct industrial benefits is shown in the following table.

Regional Distribution of RADARSAT-2 Contracts
(as of March 2008)

Program	British Columbia	Prairie Provinces	Ontario	Quebec	Atlantic	Total Canada
RADARSAT-2	59.1%	0.3%	10.2%	29.9%	0.4%	100%

Note: Due to rounding, decimals may not add up to totals shown.

Summary of Non-Recurring Expenditures ($ in millions)
(as of March 2008)

Program	Current Estimated Total Expenditure	Forecast to March 31, 2008	Planned Spending 2008-2009	Future Years
RADARSAT-2	418.6	416.9	1.7	0

James Webb Space Telescope

Description

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

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

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

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

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

The JWST is scheduled for launch in 2013. JWST instruments will be designed to work primarily in the infrared range of the electromagnetic spectrum, with some capability in the visible range. JWST will have a large mirror, 6.5 meters in diameter and a sunshield the size of a tennis court that will both fold up and open once in outer space.

Canada is providing hardware for JWST: the Fine Guidance Sensor (FGS) and Tuneable Filter Imager (TFI). The FGS is integral to the attitude control system of JWST, and consists of two fully redundant cameras that will report precise pointing information of JWST. Canadian expertise in this area has been established with the successful fine error sensors for the FUSE mission.

Packaged with the FGS but functionally independent, the Tuneable Filter Imager is a unique, narrow-band camera with imaging capability. For example, it will allow astronomers to search for extrasolar planets through a technique called coronography, which means that the light from a star will be blocked out so that astronomers can see what is in the star's neighbourhood.

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

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

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

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Sponsoring Agency: COM DEV Canada	Ottawa, Ontario
Major Sub-Contractors: Teledyne Corning Netoptix ABB Bomem MDA CDA ESTL	U.S U.S Canada Canada U.S. Europe

Major Milestones

The major milestones, by phase, are the following:

Phase	Major Milestones	Date
A	Requirement Definition	2003-2004
B	Preliminary Design	August 2004 to May 2005
C	Detailed Design	July 2005 to September 2008
D	Manufacturing/Assembly; Integration/Testing; Pre-launch preparations, Launch/System Commissioning	May 2007 to November 2013
E	Operations	2013-2014 to 2018-2019

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

Progress Report and Explanation of Variances

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

Overall, the Fine Guidance Sensor with the Tunable Filter Instrument contribution is technically very challenging and proved to be more complex than envisioned by the CSA and the prime contractor at the time the substantive estimates were generated. Extremely tight tolerances on the optics combined with the need for reliable and precise mechanisms that must operate in a harsh cryogenic temperature environment required more design and testing effort than was originally envisaged. The full complexities of the FGS became evident during the Phase C, after the first of the two-planned Critical Design Reviews (CDR). The first CDR, held in March 2007, for the guider function of the FGS, did reveal some technical issues, which required additional effort to resolve. This Review took place after the Effective Project Approval (EPA) received in February 2007. After this first CDR, with the focus now turning toward the preparation of the system level CDR, new issues became apparent requiring additional analysis. Testing of the Tunable Filter Imager prototype also revealed technical issues that needed to be addressed.

During this transition between the completion of the detailed design phase (Phase C) and the initiation of the manufacturing phase (Phase D) the project was facing the prospect of a significant cost growth requiring the CSA to return to Treasury Board to amend its Effective Project Approval (EPA) for the JWST Major Crown Project. The current estimated total cost for the Definition and Implementation phases is now $134.7 million. On December 2007, Treasury Board granted a revised Effective Project Approval.

Industrial Benefits

As of March 31, 2008, the CSA has funded $50.6 million worth of work to Canadian industry directly attributable to the JWST-FGS Major Crown Project (MCP). Direct industrial benefits from the construction of the JWST-FGS and TFI system will benefit central regions of Canada. Although there is no regional distribution requirement for this project, the following table provides an approximate distribution:

Regional Distribution of JWST Contracts
(as of March 2008)

Program	Ontario	Quebec	Total Canada	Foreign
JWST-FGS and TFI	78%	5%	83%	17%

Summary of Non-Recurring Expenditures ($ in millions)
(as of March 2008)

Program	Current Estimated Total Expenditure	Forecast to March 31, 2008	Planned Spending 2008-2009	Future Years
JWST-FGS and TFI	134.7	64.3	31.8	38.6

Citizenship and Immigration Canada

Status Report on Major Crown Projects

Global Case Management System

Description

The Global Case Management System (GCMS) is a multi-year program that will replace several aging, archaic and incompatible core business systems of Citizenship and Immigration Canada (CIC) and the Canada Border Services Agency (CBSA). The GCMS is an essential secure technology platform upon which to build a modern, global, integrated, information-based solution that will strengthen program integrity, improve efficiency and enhance client service delivery.

GCMS will establish the next-generation business operational environment, and improve flexibility to adapt to future legislative and major program initiatives (e.g., biometrics). GCMS will also facilitate communications and data sharing with the CBSA and with our other partners for the purposes of administrating the Immigration and Refugee Protection Act (IRPA).

Project Phase: Building on the success of the first deployment of the GCMS in 2004 (the Citizenship Release), the project undertook a re-evaluation of strategies for completion and prepared a revised go-forward plan which reduces risk and delivers considerable business value.
Lead Department: Citizenship and Immigration Canada
Participating Agency: Canada Border Services Agency
Contracting Authority: Public Works and Government Services Canada
Prime Contractor: None (The Department is responsible for system integration.)

Major Milestones	Date
Treasury Board approves funding for the GCMS project at the same time as CIC’s Treasury Board submission on the implementation of policy reforms and the new IRPA.	August 2000
Treasury Board grants preliminary project approval and major Crown project designation to the GCMS.	March 2001
Treasury Board grants Effective Project Approval (EPA) to the GCMS.	January 2002
Request for proposal for the acquisition of a commercial, off-the-shelf software package for case management posted for tender by Public Works and Government Services Canada.	February 2002
Contract for the off-the-shelf software package for case management awarded.	March 2003
Business modelling and high-level requirements completed.	May 2003
Treasury Board grants amended EPA to the GCMS to address the impact of procurement delays.	October 2003
The first GCMS business component (Citizenship) is implemented.	September 2004
Treasury Board grants a second amendment to the EPA to address the impact of cumulative slippage, includes critical new requirements in project scope, and provides for an incremental deployment approach.	September 2005
Completion of a System Under Development audit of the GCMS project.	November 2005
Treasury Board grants a third amendment to the EPA to address a wording anomaly in regard to GST.	December 2006
Independent review in December 2006 indicates a need to assess project status and review options for completing GCMS objectives.	December 2006
Treasury Board grants a fourth amendment to the EPA to undertake this assessment and to develop a revised go-forward plan.	February 2007
Treasury Board grants a fifth amendment to the EPA, extending the time frame for completion of a substantive go-forward plan to late fiscal 2007–2008.	October 2007
Independent review validates project’s recovery plan and project team’s readiness to deliver.	December 2007
The project has completed a substantive plan for the go-forward option and continues to work with central agencies to obtain required approvals.	March 2008

Progress Report and Explanation of Variances

1. Preliminary project approval was obtained from Treasury Board on March 1, 2001, with a planned cost of $194.8 million (excluding GST).
2. EPA was obtained from Treasury Board on January 31, 2002, with a planned cost of $194.8 million (excluding GST) and a completion date of March 31, 2005.
3. On October 9, 2003, Treasury Board increased the project spending authority from $194.8 to $202.6 million (excluding GST). The $7.8 million variance was approved to address the impact on activities and resources of the decision to use a commercial software package rather than develop one in-house. The lengthy competitive procurement and contracting process delayed the project by nine months and pushed back the overall project completion date to December 31, 2005.
4. On September 2005, the Treasury Board approved a second increase in the amount of $40.2 million (excluding GST) over two additional fiscal years, bringing the total project spending authority to $242.8 million (excluding GST) and extending the project to 2007–2008. This increment was granted to cover costs associated with new requirements resulting from an increased focus on national security post 9/11 and the division of responsibility across two departments for the administration of IRPA in December 2003, and to make the necessary adjustments to the system’s functionality based on lessons learned with the first deployment of the GCMS in September 2004.
5. On February 8, 2007, a further increase of $48.1 million in the spending authority was approved by the Treasury Board to reflect the GST in project estimates, undertake an assessment of the project status and consider alternative options for completing the GCMS objectives. This brought the total authority to $290.9 million (including GST).
6. Results of the project quality verification and options analysis indicated that the project scope and complexity must be reduced and focus placed on first delivering the business components of greatest value.
7. On October 18, 2007, Treasury Board granted an extension of the project authority to March 31, 2008, to provide the time frame needed to advance business requirements to the level necessary to develop a reliable cost and schedule estimate for the recommended path forward. There was no cost increase with this approval.
8. Forecasted expenditures up to March 31, 2008, indicate shortfalls in funding have been covered by CIC internally re-allocating a total of $59.9 million and CBSA contributing $8.1 million for its share of the costs.
9. A substantive plan for delivery of the reduced scope option has been prepared, and work on the GCMS Release 2 is proceeding while the Department continues to work with central agencies to obtain the necessary approvals to ensure the project’s successful completion.

Fisheries and Oceans Canada

Status Report on Major Crown Projects

 

Major Crown Projects are projects whose cost estimates exceed $100 million and are assessed as high risk by the Treasury Board. The Mid-Shore Patrol Vessels project is DFO's only Major Crown Project.

Description The Mid-Shore Patrol Vessels project will acquire a total of twelve (12) Mid-Shore Patrol Vessels (MSPVs) for the Canadian Coast Guard (CCG) Fleet — eight (8) for Fisheries Conservation and Protection (C&P) duties and four (4) for Maritime Security duties. This project serves two purposes: 1) Fleet Renewal — the acquisition of the eight (8) C&P patrol vessels represents the first step in the modernization of the CCG fleet, is vital to ensure the integrity of the fishery monitoring program and will provide the capacity for DFO to support a strategic role in conservation and protection; 2) Maritime Security — the acquisition of the four (4) Maritime Security vessels will allow CCG, in conjunction with the RCMP, to respond to the government's commitment to enhance the security of the nation's coasts and waterways.
Project Phase The MSPV Project is currently in the Implementation phase.
Leading and Participating Departments and Agencies Lead: Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO) Participating: Industry Canada (IC); RCMP; Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WD); Canadian Economic Development (CED); Finance Canada; Defence Construction Canada; Public Safety and Emergency Preparedness Canada (PSEPC); Department of National Defence (DND)
Prime and Major Subcontractors Contracting Authority: Public Works and Government Services Canada (PWGSC) Prime Contractor: Proposals from industry are currently under review by the Project Management Office (PMO) Major Sub-contractor(s): n/a at this time
Major Milestones	Date
Preliminary Project Approval (PPA)	August 2005
Price and Availability	September 2005
Letter of Interest to Pre-qualified Suppliers	October 2005
Effective Project Approval (EPA)	June 2006
Requisition from CCG	June 2006
First Request for Proposal	November 2006
Cancellation of RFP by PWGSC	July 2007
Second Request for Proposal	December 2007
Contract Award	June 2008
Commence Construction of First Vessel	October 2008
First Vessel Delivery	October 2009
Delivery of 4 Maritime Security Vessels and 8 Fleet Renewal Vessels	May 2011
Progress Report and Explanations of Variance A first Request for Proposal (RFP) was issued in November 2006, and bids closed in March 2007. During the proposal evaluation, it was determined that there was insufficient understanding between bidders and the Crown about bid evaluation requirements to allow the process to be finalized. In the interest of fairness and the integrity of the procurement process, this initial solicitation was cancelled. A new RFP was released in December 2007 and closed in February 2008. Bids are currently under evaluation, and contract award is targeted for June 2008, although there is a possibility that this may be delayed.
Industrial Benefits Canadian industry in the following regions of Canada will benefit from this project: Atlantic Canada, Québec, Ontario and Western Canada. The RFP requires overall industrial benefits equal to 100% of contract value. Regional distribution TBD at contract award.

Health Canada

Table 5: Status Report on Major Crown Projects

1. Description

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

HICPS is the key delivery mechanism for the payment of pharmacy, medical supplies and equipment, and dental benefits under Health Canada's Non-Insured Health Benefits (NIHB) Program. It supports the delivery of much-needed health benefits for over 800,000 eligible First Nations and Inuit clients.

The HICPS MCP was established to conduct a competitive procurement to replace the existing HICPS contract, to manage the implementation of the new service contract and to ensure a smooth transition from the current incumbent to the new contractor. The HICPS contract was awarded on December 4, 2007 to ESI Canada. The new HICPS System will be put into production on December 1, 2009.

2. Project Phase

The HICPS MCP is now in the project's Pre-Implementation Phase, which started upon contract award to ESI Canada on December 4, 2007. In accordance with Treasury Board (TB) policy on the Management of Major Crown Projects, this phase will end on November 30, 2010, after one full year of normal contract operations under the new HICPS Contract.

3. Leading and Participating Departments and Agencies

This subsection lists the participants (departments) associated with the HICPS MCP.

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

4. Prime and Major Subcontractor

Prime Contractor: ESI Canada, Mississauga, Ontario, Canada
Major Subcontractors: Resolve Corporation, Toronto, Ontario, Canada

5. Major Milestones

Major Milestones

Major Milestones	Date
Initial meetings with Contractor, coordination of the pre-implementation phase project plan	From Contract Award (December 4, 2007) until January 2008
Business Requirements Gathering and System Design	February 2008 to August 2008
HICPS System Development	September 2008 to April 2009
HICPS Testing and Acceptance	May to September 2009
Documentation, Simulations, Validation, Data Conversion and Training	September 2009 to November 2009
HICPS Implementation (ESI Canada officially takes over real-time service provision)	December 1, 2009
Project Close-Out Phase: Evaluation of the HICPS Project and lessons learned.	December 2010 to March 2011

6. Progress Report and Explanations of Variances

The definition phase of the HICPS MCP (including the Request For Proposal (RFP) process through bid evaluation and ultimately contract award on December 4, 2007) was concluded on budget, and the project pre-implementation phase is now underway.

A detailed Pre-Implementation Plan has been approved, and the Project's governance committees have been established. As of March 31, 2008 the Project is in the midst of the process to gather and define the business requirements for the new HICPS system, and work is proceeding such that the first milestone will be achieved on-time and on budget.

The Project's schedule and budget are consistent with the project authorities granted.

7. Industrial Benefits

HICPS supports the delivery of much-needed health benefits for over 800,000 eligible First Nations and Inuit clients. As such, the Industrial Regional Benefits model was modified to focus on benefiting the Aboriginal economic community, rather than a specific industry or region of Canada, resulting in an Aboriginal Benefit Requirement (ABR) which is unique to the HICPS MCP.

The development of the ABR approach for the HICPS MCP was informed by industry feedback through two Request for Information consultation processes, and approved by Treasury Board. As HICPS Prime Contractor, ESI Canada will be required to ensure a mandatory and substantial Aboriginal benefits requirement representing direct or indirect benefits to Aboriginal businesses or individuals.

National Defence

Table 5: Status Report on Major Crown Projects

 Table of Contents

Airlift Capability Project – Strategic (ACP-S)

Airlift Capability Project – Tactical (ACP-T)

Arctic/Offshore Patrol Ship (AOPS)

Armoured Heavy Support Vehicle System (AHSVS)

Armoured Personnel Carriers (APC)

Canadian Cryptographic Modernization Program (CCMP) Omnibus Project

CF18 Modernization Project

Canadian Forces Supply System Upgrade (CFSSU)

Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project

Canadian Search and Rescue Helicopter Project

HALIFAX Class Modernization/Frigate Equipment Life Extension (HCM/FELEX)

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)

Joint Support Ship (JSS)

Light Utility Vehicle Wheeled (LUVW)

Main Battle Tank

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

Protected Military Satellite Communications (PMSC)

Submarine Capability Life Extension

Airlift Capability Project – Strategic (ACP-S)

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

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies:

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

4. Prime and Major Sub-Contractors:

Prime Contractor

The Boeing Company, St-Louis, Missouri, USA

5. Major Milestones:

Major Milestones	Date
Memorandum to Cabinet	June 6, 2006
Synopsis Sheet  (Effective Project Approval)	June 22, 2006
Advanced Contract Award Notice Posted on MERX	July 5, 2006
Contract Award	February 1, 2007
Delivery First Aircraft	August 8, 2007
Delivery Second Aircraft	October 18, 2007
Delivery Third Aircraft	March 7, 2008
Delivery Fourth Aircraft	April 3, 2008
Initial Operational Capability (IOC)	September 20, 2008
Full Operational Capability (FOC)	Summer 2009
Project Close-out	Spring 2010

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

7. Industrial Benefits: Industrial and Regional Benefits (IRBs) are equivalent to 100% of the acquisition contract, Boeing's share of the in-service support Foreign Military Sales contract value and the value of the engines. (A separate IRB agreement was negotiated with Pratt and Whitney USA for the value of the engines for the C-17). The three IRB agreements total $1.9B.  Boeing and Pratt and Whitney USA are currently searching for Canadian capability to fulfill their obligations. All regions of Canada will benefit from these contracts.

Airlift Capability Project – Tactical (ACP-T)

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

2. Project Phase:Implementation

3. Leading and Participating Departments and Agencies:

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

4. Prime and Major Sub-Contractors:

Prime Contractor

Lockheed Martin Corporation, Marietta, Georgia, USA

5. Major Milestones:

Major Milestones	Date
Memorandum to Cabinet	June 22, 2006
Revised Preliminary Project Approval (PPA)	June 22, 2006
Solicitation of Interest and Qualification (SOIQ)	August 31, 2006
Issue of Request For Proposal (RFP)	August 3, 2007
Effective Project Approval	December 13, 2007
Contract Award	December 20, 2007
First Aircraft Delivery	Fall/Winter 2010
Initial Operational Capability (IOC)	Fall 2011
Full Operational Capability (FOC)	Winter 2013/2014
Project Close-out	Spring 2014

6. Progress Report and Explanations of Variances: Lockheed Martin Corporation provided a response to the RFP on August 30, 2007. The Department of National Defence received Effective Project Approval through Treasury Board on December 13, 2007.

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

Arctic/Offshore Patrol Ship (AOPS)

1. Description:  The Arctic/Offshore Patrol Ships (AOPS) has been established in order to deliver to the government of Canada a naval ice-capable offshore patrol ship to assert and enforce sovereignty in Canada’s waters including the Arctic. When the project completes, the six to eight fully supported AOPS delivered to the Canadian Forces will be capable of:

• conducting armed sea-borne surveillance of Canada's waters, including the Arctic;
• providing government situational awareness of activities and events in these regions; and
• cooperating with other elements of the Canadian Forces and other federal government departments to assert and enforce Canadian sovereignty, when and where necessary.

2. Project Phase: Definition

3. Leading and Participating Departments and Agencies:

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

4. Prime and Major Sub-Contractors: No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval, planned for January 2010.

5. Major Milestones:

Major Milestones	Date
Treasury Board Preliminary Project Approval	May 31, 2007
Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP)	December 13, 2007
DELMS RFP Closes	February 19, 2008
Memorandum to Cabinet	January 2008
DELMS Contract Award	May 7, 2008
Effective Project Approval (SS(EPA))	January 2010
Award of Implementation Contract	January 2010
Delivery of First Ship	Fall 2013
Initial Operating Capability (IOC) of First Ship	March 2014
Project Complete	March 2019

6. Progress Report and Explanations of Variances: The project continues to progress steadily since obtaining Preliminary Project Approval in May 2007. Treasury Board granted expenditure authority of $42.465M ($BY), full up including GST, for definition phase. Treasury Board also acknowledged the indicative full up cost of $3,067M ($BY) including GST, for acquisition. So far, no variances in cost estimates have been identified.

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

Armoured Heavy Support Vehicle System (AHSVS)

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

Four variants, in support of the current fleet and new vehicles, are requested under the main contract: Wrecker, Cargo, Palletized Loading System and Tractor. Subsequently, authority from the Treasury Board Secretariat was sought to exercise the contract option and two more variants were added to the fleet: Heavy mobile repair team and Flat deck recovery system.

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies

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

4. Prime and Major Sub-Contractors

Prime Contractor	Daimler AG Special Truck Division (Mercedes-Benz) Woerth, Germany
Major Sub-Contractors	EMPL, Fahrzeugwerk, Kaltenbach, Austria Land Mobility Technologies (LMT) Holdings (Pty) Ltd., Irene, South Africa Doll, Fahrzeuzbau, Gmb H, Oppenau, Germany

5. Major Milestones

Major Milestones	Date
Request for Price & Availability	August 4, 2006
Treasury Board Approval	October 16, 2006
Statement of Interest and Qualifications	October 6, 2006
Request for Proposal Issue	January 25, 2007
Contract Award	March 30, 2007
Initial Operating Capability	May 15, 2008
Full Operational Capability	October 2008

6. Progress report and Explanation of Variances:  Treasury Board granted approval for an initial 82 vehicles with all variants, with a remaining option for additional 26 vehicles and related equipment. A Treasury Board amendment seeking expenditure authority for the option for purchase of additional vehicles, tank transport trailers and personnel Pods was approved in the Fall of 2007.

7. Industrial and Regional Benefits (IRB):  An obligation of 100% of the contract value in CCV (Canadian Content Value) as Direct and Indirect IRB transactions needs to be achieved by the OEM (as detailed in the contract) by the end of the Achievement Period i.e., period commencing on Contract Award and ending 6 years following the effective date of the contract.

Armoured Personnel Carriers (APC)

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

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies

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

4. Prime and Major Sub-Contractors

Prime Contractor

General Dynamics Land Systems - Canada, London, ON

5. Major Milestones

Major Milestones	Date
Treasury Board approval	December 1995
Contract award	December 1996
First vehicle delivery	July 1998
Exercise of first option	July 15, 1998
Exercise of second option	July 15, 1999
Exercise of third option	July 15, 1999
Last vehicle delivery	October 15, 2007
Project completed	March 2011

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

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

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

7. Industrial Benefits:  This project includes the following regional and small business achievements:

Region	Cash Benefits
Atlantic Canada	$233.7M
Québec	$181.7M
Western Canada	$391.3M
Small Business	$767.8M
Total	$1,574.5M

Canadian Cryptographic Modernization Program (CCMP) Omnibus Project

1. Description:  The Canadian Cryptographic Modernization Program (CCMP) is a 12-year program (fiscal year 2004/2005 to 2015/2016) that will modernize the Government of Canada’s 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:

a. Secure Voice / Telephone Re-key Infrastructure

b. Secure Voice / Telephone Replacement

c. Classified Security Management Infrastructure

d. Combat Identification Replacement

e. Link Encryption Replacement

f. Network Encryption Replacement

g. Secure Radio Replacement

h. Secure Mobile Environment

2. Project Phase:  Definition/Implementation

3. Leading and Participating Departments and Agencies

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

4. Prime and Major Subcontractors

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

5. Major Milestones

Project / Sub-project Major Milestones	Date
a. Preliminary Project Approval for the CCMP Omnibus Project	March 7, 2005
b. Preliminary Project Approval for a CCMP Omnibus Project sub-project:  Classified Security Management Infrastructure	November 2, 2006
c. Secure Voice/Telephone Re-key Infrastructure – Initial Operational Capability	December 21, 2006
d. Secure Voice/Telephone Re-key Infrastructure – Full Operational Capability	June 2009
e. Classified Security Management Infrastructure – Phase 1A Completed	2010
f. Classified Security Management Infrastructure – Phase 1B Completed	2011
g. Network Encyption Replacement – Completed	2011
h. Secure Voice/Telephone Replacement – Completed	2011
i. Secure Mobile Environment – Completed	2012
j. Link Encryption – Completed	2013
k. Classified Security Management Infrastructure – Phase 2 Completed	2014
l. Classified Security Management Infrastructure – Phase 3 Completed	2016
m. Combat Identification Replacement – Completed	2016
n. Secure Radio Replacement – Completed	2016
o. CCMP Omnibus Project – Project Close-out	2016

6. Progress Report and Explanations of Variances

Fiscal year 2007-2008 was the fourth year of this 12-year program.

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

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

On February 22, 2008, the Secretary to the Treasury Board granted expenditure authority for a subsequent phase of the CSMI project; i.e., implementation of Phase 1B at a substantive full-up cost estimate of $12M, and definition of Phase 2 at a substantive full-up cost estimate of $3M.

The CSMI Phase 1A implementation is in progress; Phase 1B definition is complete; and Phase 1B implementation and Phase 2 definition are about to begin.

Link Encryption Replacement is progressing.

The CCMP is currently under-spending relative to initial forecasts.  In three instances, PPA approvals have occurred late in the fiscal year, causing spending to lag behind the approved cash flow. 

The following completion dates have changed from those recorded in the CCMP Omnibus Project PPA approved on March 7, 2005.

a. Secure Voice Re-key Infrastructure project achieved Initial Operational Capability on schedule in December 2006. The close-out date was recently moved to June 2009 to allow time to incorporate support for a new algorithm.

b. Secure Voice/Telephone Replacement was completed for the majority of Government of Canada departments and agencies by September 2007. The close-out date for this sub-project has been moved to December 2011 to allow time to coordinate the software upgrades that secure phones need in order to transition to a new algorithm.

c. Classified Security Management Infrastructure Phase 1 completion was moved from 2008 to 2011. Phase 1 was divided into Phase 1A and 1B to reduce the complexity of managing the project.

d. Combat Identification Replacement completion was moved from 2010 to 2016 due to changes in the US program schedule.

e. Classified Security Management Infrastructure Phase 2 close-out was moved from 2011 to 2014 due to delays in the US Key Management Infrastructure program.

f. Link Encryption closure will occur ahead of schedule in 2013 instead of 2016, because Phases 1 and 2 have been combined. 

g. Secure Mobile Environment is a new crypto family that was added to the CCMP in June 2007.

7. Industrial Benefits N/A

CF18 Modernization Project

1. Description:   The CF188 is Canada’s only fighter aircraft. The CF188 fleet, based on 1970s technology, was acquired by Canada in 1982 and had an original Estimated Life Expectancy (ELE) of 2003. The requirement to modernize aircraft systems was recognized at the outset and fleet modernization was originally planned to commence in the early 1990s. DND conducted an airframe structural test program aimed at determining the economic life of the airframe with an objective of extending the airframe life to the 2017-2020 timeframe. In response to documented avionics system deficiencies, the CF188 Modernization project was initiated.

The CF188 Modernization project is composed of 17 different projects.  Seven of these projects represent the bulk of the work to be done and are grouped under the CF 188 Incremental Modernization Project (CF 188 IMP). The remaining 10 smaller projects include associated systems such as the Night Vision Imaging System (NVIS), Air Combat Manoeuvring Instrumentation (ACMI), Precision Guided Munitions (PGM), Advance Multi-role Infrared Sensor (AMIRS), and others. To acquire and implement these projects, TB has approved $2.65B full-up cost (GST included).

The seven projects included in CF 188 IMP are divided into two installation and integration phases. Phase I (Engineering Change Proposal 583 (ECP 583)) integrated core avionics that formed the foundation upon which other CF188 IMP projects could be installed and integrated. Phase II of the modernization effort consists of ECP 583 Revision 2 (R2), developed by McDonnell Douglas Corp, a wholly owned subsidiary of Boeing Company, for Canada, and the United States Marine Corps that will procure, install, and integrate the major and most complex systems of Phase II. 

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies:

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

4. Prime and Major Sub-Contractors:

Phase I and Phase II

Prime Contractor	Boeing/McDonnell Douglas, St Louis, Missouri, USA
Major Sub-Contractors	L3 Canada MAS, Mirabel, Québec, Canada

5. Major Milestones:

Major Milestones	Phase I	Phase II
Treasury Board Effective Project Approval	August 22, 2000	October 25, 2004
Contract - Awarded	March 29, 2001	February 15, 2005
First Aircraft delivery	May 14, 2003	July 10, 2007
Last Aircraft delivery	August 31, 2006	March 2010
Implementation - Project Closed-Out	December 2008	September 2010

6. Progress Report and Explanations of Variances:  Phase I of the IMP project received Treasury Board approval on August 22, 2000, with a full up cost of $1,158M (BY) (GST included). The prime contract was awarded to the Boeing Company on March 29, 2001. Engineering Change Proposal 583 procured, installed and integrated the following avionics systems: a new radar, a jam resistant secure communications, a Combined Interrogator / Transponder (CIT), a Stores Management System (SMS) and integrated an Embedded Global Positioning / Inertial Navigation System (EGI).  The first Squadron received modernized CF188 aircraft in November 2003. The last of 80 CF188s to be modernized under Phase I was delivered on schedule in August 2006. All Canadian Fighter Squadrons are now flying the modernized aircraft with extremely positive feedback on its state-of-the-art capabilities.

Phase II received TB Effective Project Approval on October 25, 2004 for a substantive cost of $476M (BY) (GST included). The commercial sale contract was awarded to Boeing on February 15, 2005. Three of the subsystems to be installed are being procured via Foreign Military Sales (FMS) with the US Navy (Helmet Mounted Display (HMD), Multi-functional Information Distribution System (MIDS) & ALE-47 Counter Measures Dispensing System) and one is being purchased commercially (Multi-purpose Display Group (MDG)) under a joint program with the Royal Australian Air Force. The following items are also included in the ECP 583R2 Project:  Multi-purpose Display Group (MDG), Cockpit Video Recorder (CVR), and the Naval Aircrew Common Ejection Seat (NACES).  ECP 583 R2 is now in full implementation. To date a total of 24 of 79 R2 jets have been delivered. The 79th Phase II production aircraft upgrade is scheduled for completion in March 2010. The remaining funds are apportioned to a number of smaller sub projects.

7. Industrial and Regional Benefits:

ECP 583: Industrial and Regional Benefits are equivalent to 75% of the contract value on this project. The Contractor, McDonnell Douglas Corp, a wholly owned subsidiary of Boeing Company, has committed to deliver Industrial and Regional Benefits of $377.9M US. Boeing has currently satisfied $340.7M US of their obligation to the Government of Canada. The remaining $37.2M US will need to be completed by the end of 2008. Boeing has been working with industry in all regions of Canada on this project.

ECP 583 R2 Industrial and Regional Benefits are equivalent to 100% of the contract value on this project. The Contractor, McDonnell Douglas Corp, a wholly owned subsidiary of Boeing Company, has committed to deliver Industrial and Regional Benefits of $137.8M US. They have also committed to a 25% direct requirement.  Boeing has currently satisfied approximately $39.6M US of their obligation to the Government of Canada. The remaining $98.2M US will need to be completed by the end of 2012. Canadian industry in the following regions of Canada will benefit from the CF188 Modernization Project.

Region	Benefits Phase I	Benefits Phase II
Atlantic Canada	$5.0M	$0.2M
Québec	$158.0M	$0.9M
Ontario	$152.0M	$38.0M
Western Canada	$25.0M	$0.6M
Unallocated	$37.9M	$98.1M
Total	$377.9M	$137.8M

Canadian Forces Supply System Upgrade (CFSSU)

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

2. Project Phase: Close-Out

3. Leading and Participating Departments and Agencies:

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

4. Prime and Major Sub-Contractors:

Prime Contractor	EDS Canada Inc. Ottawa, Ontario, Canada
Major Sub-Contractors	Mincom Pty. Ltd. Brisbane, Australia ADGA Group Ottawa, Ontario, Canada

5. Major Milestones:

Major Milestones	Date
Contract Award	January 1995
Initial Site Installation	December 1995
Warehouse Management Information System Delivery	July 1997
Test Development Centre Delivery	October 1999
Commence System Development	November 1999
Complete System Development	March 2001
Commence System Pilot	June 18, 2001
Complete System Pilot	August 1, 2001
Commence System Rollout	September 2001
Complete System Rollout (Official Acceptance)	June 13, 2003
projectClose-out (E Status)	September 21, 2004
projectClose-out (I Status)	Fall 2008

6. Progress Report and Explanations of Variances: Treasury Board initially approved the CFSSU project with an estimated cost of $289.3M. The Treasury Board approved in April 2000, the de-scoping of certain functionality and an increase to project contingency funding of $9.8M. In addition, $5M was approved in order to permit DND the option of restoring the Distribution Resource Planning (DRP) component. The Implementation Phase of DRP was de-scoped and the project budget remained at $304.1M.

The CFSSU Project has been transferred from implementation to Close-out in September 2004. Close-out funding is $3.6M. On March 9, 2006, DND Program Management Board approved the usage of Close-out funds for the project; these funds are to be used until fully expended or the work is completed.

The CFSSU project is to be completed by Fall 2008.

7. Industrial and Regional Benefits:

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

Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project

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

The project has delivered 100 Bell 412CF/CH146 Griffons, a flight simulator, composite maintenance trainer, facilities, mission kits (including defence electronic warfare suites), as well as other equipment, documentation and services.

2. Project Phase:  Implementation

3. Lead and Participating Departments and Agencies

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

4. Prime and Major Sub-Contractors

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

5. Major Milestones

Major Milestones	Date
Contract Award	September 9, 1992
Critical Design Review	April 21, 1993
First Helicopter Delivery	March 21, 1995
Simulator Acceptance	June 1996
Last Helicopter Delivery	December 24, 1997
Project Completion	November 2009

6. Progress Report and Explanation of Variances:  This project receivedCabinet approval on April 7, 1992 and Treasury Board approval on September 8, 1992, with an original budget of $1.293B.  Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in November 2009 for approximately $200M less than the initial Treasury Board budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver (RLWR) functionality as well as the implementation of the Single-Channel Ground and Airborne Radio System (SINCGARS) capability.

7. Industrial Benefits:  To date, Bell Helicopter has claimed $289.5M direct and $252.1M indirect industrial regional benefits, totalling $541.6M, representing 107% of the overall commitment. Bell Helicopter Textron Canada has committed to achieving $506.7M in Canadian value-added industrial regional benefits as follows:

Region	Cash Benefits
East	$10.0M
Québec	$420.2M
Ontario	$32.1M
West	$12.0M
Unallocated	$32.4M
Total	$506.7M

Canadian Search and Rescue Helicopter Project

1.   Description:  Maintaining a national search and rescue capability is a direct departmental objective. The purpose of the Canadian Search and Rescue Helicopter (CSH) project was to replace the CH-113 Labradors with a fleet of 15 new helicopters. The new helicopters address the operational deficiencies of the CH-113 Labrador fleet, eliminate the supportability difficulties of these older airframes, and given expected aircraft availability rates provide a fleet size sufficient for continuous operations well into the 21^st century.

2.   Project Phase:  Completed

3.   Leading and Participating Departments and Agencies

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

4.   Prime and Major Sub-Contractors

Prime Contractor	Agusta Westland International Limited (formerly E.H. Industries Ltd. (EHI)),Farnborough, United Kingdom
Major Sub-Contractors	GKN Westland Helicopters, United Kingdom Agusta Spa, Italy General Electric Canada Inc., Canada

5.   Major Milestones

Major Milestones	Date
Treasury Board Effective Project Approval	April 2, 1998
Contract Award	April 6, 1998
First Aircraft Delivery (at plant in Italy)	September 29, 2001
Final Aircraft Delivery (at plant in Italy)	July 3, 2003
Project Completion (Effective Project Completion)	September 15, 2004

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

Treasury Board provided Effective Project Approval on April 2, 1998 including Expenditure Authority for $788.0M (BY) net of GST, which included Definition funding expenditures of $6.4M.

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

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

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

It should be noted that although Effective Project Closure was achieved on the September 15, 2004, work is still ongoing and will remain so for many years to come. The Major Milestones still outstanding are tied to a three year Technical Publication Revision Service which is not expected to begin until fiscal2008-2009, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least three years to address.

7.   Industrial and Regional Benefits:  The contractor (AWIL) committed to providing direct and indirect industrial benefits valued at $629.8M, within eight years from the date of contract award. 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 regard to Industrial and Regional Benefits under the CSH contract. Small businesses in Canada will also benefit from the project by the placing of $67.0M in orders. 

Region	Cash Benefits
Atlantic Canada	$43.1M
Québec	$317.7M
Ontario	$146.5M
Western Canada	$86.2M
Unallocated	$36.3M
Total	$629.8M

HALIFAX Class Modernization/Frigate Equipment Life Extension (HCM/FELEX)

1. 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. As the Design Integration Authority for the HCM, PM HCM/FELEX is responsible for the ship level design integration of all elements of the HCM including any unique/specific engineering changes required to address integration requirements. To ensure that the overall modernization initiative is achieved in a timely, efficient and coordinated manner, the HCM/FELEX project will conduct overall design integration, coordinate schedules, manage inter-project risk, and manage equipment installation during the mid-life refits.  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.

Implementation of the HCM/FELEX project will occur through three principal contracts:  two Multiship Contracts (MSC) for docking work periods/refits and one Combat System Integration (CSI) contract to develop, procure and install the majority of the combat system elements of the project.

2. Project Phase:  Definition/Implementation

3. Leading and Participating Departments and Agencies

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

4. Prime and Major Sub-Contractors

In-Service Support Contractor (Class Design Agent)	Fleetway Incorporated, Halifax, NS, Canada
Internal Communications System	DRS Flight Safety, Kanata, ON, Canada
Multi-Ship Contract (East)	Halifax Shipyard, Halifax, NS, Canada
Multi-Ship Contract (West)	Victoria Shipyard, Victoria, BC, Canada

5. Major Milestones

Major Milestones	Date
Preliminary Project Approval (PPA) Approval	February 28, 2005 (FELEX) February 2007 (HCM/FELEX)
Refit Procurement Strategy Approval by TB	March 2007
Revised Preliminary Project Approval (Part 1)	June 7, 2007
Multi-Ship Contracts (MSC) Awarded (Docking Work Periods & Refits)	March 17, 2008 (West) March 31, 2008 (East)
Effective Project Approval (EPA) Approval (Part 2)	October 2008
Combat System Integration Contract Award	November 2008
Refits Begin	October 2010
Refits Completed	June 2017
Project Closure	March 2018

6. Progress Report and Explanation of Variances:  Treasury Board approved the consolidation of the five projects listed above into the HALIFAX Class Modernization/Frigate Life Extension Project and provided Expenditure Authority for Part 1 (the Non-CSI component) of the implementation at a substantive full-up cost estimate, including GST, of $822.6M (BY) on June 7, 2007.

After providing industry with detailed insight into the project’s combat systems integration (CSI) requirements and technical documentation, three qualified contractors were selected through a Solicitation of Interest Qualification process. All three contractors attested, in writing, that they could deliver the design/build/installation and set-to-work of all twelve CSI systems, including the upgrade of all system trainers and delivery of a complete Integrated Logistics Package at a firm fixed price of $1,100M.

The Project is presently in its definition phase. Design integration work is continuing, the Combat System Integration Performance Specification is being finalized, and the CSI Request for Proposal documentation was released in February 2008. Documentation is being finalized for an October 2008 submission to Treasury Board seeking Effective Project Approval and Expenditure Authority for Part 2, the CSI component of the project, at a full-up cost estimate, including GST, of $2,242M (BY). Total full-up project cost, including GST, is $3,108.4M (BY). The HCM/FELEX project is currently within budget.

A Request for Proposal 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.  Final negotiations with both shipyards have been completed and contracts awarded. 

7. Industrial Benefits:  The HCM/FELEX input into the long-term Multi-Ship refit contracts will provide approximately, including GST, $273M (BY) in industrial benefits to east and west coast shipyards. These contracts will provide continuous workflow and thus sustainment of a skilled ship repair work force through most of the next decade. The CSI component of the project will provide approximately $1,100M in industrial benefits to the combat system industry through the next 10 years.

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)

1. Description:  The purpose of this project is to develop, deliver and evolve an integrated, interoperable, ISTAR capability that will improve the ability of commanders to visualize the operational area, manage sensors and information collection resources, and to plan and implement actions to successfully complete operational missions. The project will provide enhancements to existing capabilities and include the acquisition of new capabilities in the areas of communications, command and control and sensors. The project includes the acquisition of Unmanned Aerial Vehicles (UAV), Weapon Locating Sensors (WLS) and transformation or enhancement of existing sensor platforms to include Electronic Warfare (EW), Light Armoured Vehicle III, Coyote Reconnaissance Vehicle, Ground Based Air Defence, Geomatic support and Tactical Meteorology Systems.  ISTAR is an omnibus project that received Treasury Board approval for definition phase activity on April 3, 2003. Implementation through sub-projects is anticipated upon completion of the definition activities. Although initial delivery of equipment was estimated to occur sometime in fiscal 2005-2006, the Unforecasted Operational Requirement (UOR) for an UAV and other sensor upgrades has resulted in the delivery of a partial tactical UAV and EW capability in Afghanistan in 2003-2004.  Early deliveries of ISTAR capabilities for Op ARCHER UORs will continue during 2008 and the first sub-projects will be achieving Full Operational Capability (FOC) and will close in 2008.

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works & Government Services Canada
Participating Department	Industry Canada and its regional agencies

4. Prime and Major Sub-Contractors

Prime Contractor for the UAV UOR Op ATHENA sub-project	Oerlikon Contraves Inc., Saint-Jean, QC
Major Sub-Contractor for the UAV UOR Op ATHENA sub-project	SAGEM SA, France
Prime Contractor for Beyond Line of Sight Satellite (BLOS) UOR Op ARCHER	ND Satcom, Germany
Prime Contractors for Mobile Electronic Warfare Team (MEWT) UOR Op ARCHER	Agilent Technologies, Ottawa, ON Digital Receiver Technology Inc, Maryland USA Signal Technology Associates Inc., Kanata, ON Xwave, Stittsville, Ontario
Prime Contractor for Mini UAV UOR Op ARCHER	Thales Canada, Ottawa, ON
Major Sub-contractor for the Mini UAV UOR Op ARCHER	Elbit Systems, Israel
Prime Contractor for Acoustic Weapon Locating System (AWLS) Op ARCHER	SELEX Sensors & Airborne Systems Ltd, Basildon Essex, United Kingdom
Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales (FMS)	US Army, USA
Light Weight Counter Mortar Radars (LCMR) – Foreign Military Sales (FMS)	US Army, USA

5. Major Milestones

Major Milestones	Date
Treasury Board Preliminary Project Approval	April 3, 2003
MND Approval UAV UOR	July 24, 2003
Treasury Board Project Approval in Arrears UAV UOR Full Operational Capability Close-out	August 2005 April 25, 2008 February 2009
Communications & Data Link Component Treasury Board Effective Project Approval Initial Operational Capability	December 7, 2006 October 2008
Command and Control (C2) Treasury Board Effective Project Approval Initial Operational Capability	February 28, 2008 March 2009
EW Sensors Treasury Board Effective Project Approval Phase 1Amendment 1 (AL 1)Initial Operational Capability	November 11, 2005 February 28, 2008 March 28, 2008
In Service Sensors Enhancement Treasury Board Effective Project Approval	March 2009
Medium Range Radar Treasury Board Effective Project Approval	March 2009
WLS Acoustic SensorInitial Operation Capability (IOC)Full Operational Capability	November 11, 2005 March 3, 2007 September 2008
Family of Mini UAV Treasury Board Effective Project Approval (UOR)Family of Mini UAV Treasury Board Effective Project Approval AL 1	November 11, 2005 March 2009
Light Weight Counter Mortar Radar Effective Project ApprovalInitial Operation Capability (IOC)Full Operational Capability (FOC)	March 29, 2007 March 28, 2007 December 2009
Deliveries Complete all ISTAR sub-projects	September 2013
Project Completion	March 2014

6. Progress Report and Explanations of Variances:  Given the ISTAR project staffs are still managing the UOR procurement for Op ATHENA and Op ARCHER and that the approval process is taking longer than forecasted it is expected that the project will be completed on the original schedule. Although, there is as much as a year’s delay in achieving some of the ISTAR project approval, delivery after effective approval are either on schedule or ahead of schedule. ISTAR initial operational capabilities have been procured and the overall project is expected to complete on the original schedule.

Delivery of equipment actually started with UORs in Op ATHENA, and final deliveries are scheduled out to 2013. The currently approved sub-projects in support of Op Athena and Op ARCHER are:

a. UAV UOR Op ATHENA

b. BLOS Op ARCHER

c. MEWT Op ARCHER

d. Mini UAV UOR Op ARCHER

e. AWLS Op ARCHER 

f. LCMR Op ATHENA

In addition the Data Link Communications project received TB approval in December 2006 and PWGSC received TB contract approval for radios February 22, 2007. The FMS cases for 1300 radios has been accepted and initialdelivery of equipment is anticipated for March 2008.  Some of this equipment is needed for Op ATHENA. On February 28, 2008, TB approved the ISTAR Electronic Warfare and Command and Control sub-projects. Implementation has now started.

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

Joint Support Ship (JSS)

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

2. Project Phase: Definition

3. Leading and Participating Departments and Agencies:

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

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

5. Major Milestones:

Major Milestones	Date
Memorandum to Cabinet	April 14, 2004
Treasury Board Preliminary Project Approval - (SS-PPA)	November 22, 2004
Invitation for Bids Posted on MERX	June 27, 2006
Project Definition – Contract Award	December 1, 2006
Treasury Board Effective Project Approval - (SS-EPA) – Approval	To be determined
Project Implementation - Contract Award	To be determined
First Delivery	2012
Initial Operational Capability (IOC)	2013
Full Operational Capability (FOC)	2016
Project Close-out	2016

6. Progress Report and Explanations of Variances: The project continues to progress steadily since obtaining Preliminary Project Approval in November 2004. The Minister of Public Works and Government Services Canada (PWGSC) awarded two Project Definition contracts on December 1, 2006. Treasury Board granted expenditure authority of $72.2M, full up including GST, for the pre-qualification and definition phases. Treasury Board also acknowledged the indicative full up cost of $2,012.9M ($BY), including GST, for implementation. The total full up indicative cost including GST, for implementation is now $2.1B($BY). This new cost figure reflects an increase of $16M to accommodate the recently announced acquisition of the Main Battle Tanks, and $44M that will be funded out of the current departmental program to assist in closing the Systems Requirements Document (SRD) affordability gap.

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

Light Utility Vehicle Wheeled (LUVW)

1. Description:  Light utility vehicles are highly mobile and essential to facilitating the tactical command of combat, combat support and combat service support units, to assist in the gathering and dissemination of information and to 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 ($241.4M), for use by field force units; and 1,061 Militarized Commercial Off-The-Shelf (Mil COTS) vehicles (GM Silverado) ($65.4M) for use primarily by the Reserve Force for a total project cost of $306.8M.

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies

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

4. Prime and Major Sub-Contractors

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

5. Major Milestones

Major Milestones	Date
Major Milestone (Phase 1) SMP
Award of Contract	October 28, 2003
First Full Production Delivery	February 2004
Final Production Delivery	November 2006
Effective Project Completion	December 2008
Major Milestone (Phase 2) Mil COTS
Award of Contract	October 2002
First Full Production Delivery	October 2003
Final Production Delivery	December 2004
Effective Project Completion	December 2008

6. Progress Report and Explanation of Variances:Project is in full implementation. The LUVW SMP (G-Wagon) contract was awarded to Mercedes Benz Canada (MBC) on October 28, 2003. Fielding of the G Wagon started in February 2004, five months ahead of schedule. A total of 60 basic and 24 C&R/MP (20 Command & Reconnaissance and 4 Military Police) LUVW G-Wagons were delivered directly from the manufacturer’s plant in Graz, Austria to Kabul. In 2005 and early 2006, an additional 86 G-Wagons were delivered to Kandahar. Delivery of all armour kits was completed in December 2005 and delivery of the total quantity of 1,159 vehicles was completed in November 2006.

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

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

The level of confidence in the G-Wagon is generally high. User feedback from Op ATHENA/Op ARCHER on the G-Wagon has been positive. That said, there have been problems of body cracks in the fleet, particularly those vehicles operating in harsher environments such as Afghanistan. The Project Management Office (PMO) has been working with Mercedes-Benz Canada to resolve these issues.

All 170 vehicles sent to Afghanistan have been returned to Canada except for 38 which remain in Afghanistan. The vehicles returned to Canada are awaiting repair at MBC facilities in both Toronto and Montréal. To date, MBC has repaired only 14 of these vehicles, and the PMO is working with MBC to increase output. There are also 40 domestic damaged vehicles in Montréal awaiting line repair.

The project was reduced to a staff of three in July 2007. This drawdown in staff was found to be too severe given the challenges of fielding the fleet directly to Afghanistan and the optional purchase of 357 additional G-Wagons. Consequently, there have been delays to the contracting and delivery of the special tools and test equipment and the project has been extended to December 2008. Full Operational Capability will be declared after delivery of the Special Tools and Test Equipment (STTE). This is estimated to take place between June and September 2009, followed by effective project close-out in December 2009.

The remaining high cost items include the delivery of Integrated Logistics Support manuals and STTE. The PMO will also work with PWGSC to migrate the Interim Support Contract (ISC) into a Long Term Support Contract (LTSC).  The Procurement Plan for the LTSC has been approved and the draft Request for Proposal (RFP) for the LTSC is being staffed though PWGSC approval process.  It is expected that that the LTSC will be awarded in November 2008.

7. Industrial Benefits:  The industrial benefits are required for Phase 1 for a value 100% of  the contract value. Latest report from Industry Canada indicates that Mercedes Benz Canada has exceeded the industrial regional benefit goals by $300M. There are no mandated industrial benefits for the Mil COTS contract. Industry Canada is working with MBC to identify regional components of the Industrial and Regional Benefits (IRBs) program under the Initial Support Contract (ISC). There will be an IRB requirement in the LTSC in the amount of 100% of the contract value.

Main Battle Tank

1. Description:  The purpose of the Tank Replacement Project 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 broken into two phases. Phase 1 consists of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT), two Armoured Recovery Vehicles (ARV) and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of up to 100 surplus Leopard 2 MBT from the Netherlands Government. Phase 2 will upgrade and introduce up to 100 Leopard 2 tanks and variants into service with the CF.

The project received Treasury Board (TB) approval for Phase 1 March 29, 2007 and will return to TB to seek Effective Project Approval (EPA) for Phase 2. The project is capped at $650M.

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies:

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

4. Prime and Major Sub-Contractors:

Prime Contractor for ARV upgrades Phase 1	Rheinmetall Land Systeme (RLS), Germany
Prime Contractor for MBT upgradesPhase 1	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for loaned tanks	German Government
Prime Contractor for tank purchase	Netherlands Government

5. Major Milestones:

Major Milestones	Date
Senior Project Advisory Committee – Procurement Strategy Endorsed	March 15, 2007
Memorandum to Cabinet	March 26, 2007
Treasury Board - Preliminary Project Approval (PPA)	March 29, 2007
Phase 1 – Memorandum of Understanding with German MoD Signed for Loan	May 16, 2007
Phase 1 - Contract to KMW for upgrades to Loaned tanks	May 30, 2007
Phase 1 - Contract to RLS for upgrades to Loaned tanks	May 30, 2007
Initial Operational Capability – (Phase 1)	August 28, 2007
Phase 1 - Acquisition of tanks from Dutch Government	December 14, 2007
Senior Project Advisory Committee – Phase 2 Procurement Strategy Endorsed	Fall 2008
Statement of Operational Requirements Approval	To be determined
Treasury Board - Effective Project Approval (EPA)	Mid 2009
Full Operational Capability – (Phase 2)	2013+
Project Closed-Out	2013+

6. Progress Report and Explanations of Variances:  The imperative to get the loaned tanks upgraded and sent into Afghanistan to meet the July 2007 Initial Operational Capability (IOC) date required some trade-offs. The additional time to develop and implement a new passive armour solution was unacceptable, and as a result, the Leopard 2 A6M tank squadron deployed with new slat armour.

Mine ploughs/mine rollers and dozers will not be available on the loaned tanks.  Therefore some Leopard 1 C2 will remain in theatre.

The work in support of the EPA submission has been initiated. A Letter of Interest has been sent to industry to announce the broad objectives of the Project.  Industry has responded with interest.  The six-month DND in-house technical study is complete. The Leopard 2 tank capability and gaps in the required performance have been identified.  The team is working on the Statement of Work (SOW) that will identify the core and optional deliverables. The SOW will be sent to industry in the form of a Price and Availability request that will be used to develop the substantive costs and schedule information. 

7. Industrial and Regional Benefits (IRB): No IRBs are required for Phase 1. The industrial benefits for Phase 2 will be determined as part of the EPA process. The procurement strategy will be determined following clarification of Intellectual Property (IP) rights issues and the resultant risks and restrictions for Canadian industry.

Maritime Helicopter Project (MHP)

1. Description: The purpose of this project is to replace the CH124 Sea King with a fleet of 28 new fully equipped Maritime Helicopters bundled with a long-term In-Service Support contract and the modification of the HALIFAX class ships to accommodate the new Maritime Helicopters. This replacement will address the operational deficiencies of the current CH124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multi-purpose shipborne Maritime Helicopters for operations well into the 21st century.

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies:

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

4. Prime and Major Sub-Contractors:

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

5. Major Milestones:

Major Milestones	Date
Preliminary Project Approval (PPA)	June 18, 2003
Invitations for Bids Posted on MERX	December 16, 2003
Synopsis Sheet (Effective Project Approval) SS (EPA)	November 22, 2004
Contract Award	November 23, 2004
First Delivery	January 2009 (under discussion)
Initial Operational Capability (IOC)	January 2010 (under discussion)
Full Operational Capability (FOC)	February 2011 (under discussion)
Project Close-out	2013

6. Progress Report and Explanations of Variances:  In November 2007, the project marked the three-year milestone in the implementation phase. The project focus is now shifting from design and engineering to aircraft manufacturing and assembly followed by flight tests and delivery of the aircrafts. In November 2007, the prime contractor notified the government of a delay in the planned delivery date for the integrated Maritime Helicopter. Government representatives are currently conducting a detailed review of all aspects of the contractor's schedule to determine how to minimize the impact of these delays and to ensure that they will not affect the key performance and airworthiness requirements of the Canadian Forces. Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on HMCS Montréal have progressed well and are on schedule. The project is currently running within its authorized budget.

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

Region	Capital Acquisition	In-Service Support
Atlantic Canada	$239.1M	$825.9M
Québec	$555.8M	$399.2M
Northern Ontario	$3.2M	$7.6M
Ontario (excluding Northern Ontario)	$924.3M	$1,073.2M
Western Canada	$210.6M	$181.4M
Unallocated	$10.0M	$105.7M
Total	$1,943.0M	$2,593.0M

Material Acquisition and Support Information System (MASIS)

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

2. Project Phase: Implementation – Phase 5

3. 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

4. Prime and Major Sub-Contractors

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

5. Major Milestones

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

Major Milestones	Date
Definition Phase
Preliminary Project Approval - Expenditure Authority for Phase 1	June 10, 1998
Contract Awarded for Prime Systems Integrator	December 14, 1998
MASIS system - Go Live Phase 1 (202 Work Depot Montréal)	September 1, 1999
Implementation Phase
Expenditure Authority (EPA) for Phases 2 and 3:a. Implementation of Complex Contracts;b. Implementation of the MASIS solution to the Navy;c. Operations Support & Maintenance for MASIS;d. Planning and scoping for requirements scheduled to be implemented for the Army.	June 15, 2000
Amended Expenditure Authority (EPA) for Phase 4:a. Investigation of opportunities to progress the implementation of MASIS to the maximum extent possible within the future available Phase 5 funding;b. Management of Operations Support & Maintenance for MASIS (outside MASIS project Expenditure Authority);c. Project was deemed as a Major Crown Project with this approval.	December 2003
Amended Expenditure Authority (EPA) for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army.	June 13, 2007
Project Close-out	2012

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

The project follows a cyclical approval and delivery methodology. In December 2003, an additional $34.4M was approved to fund Phase 4 of the project, which has been completed. On June 13, 2007, the MASIS project received Treasury Board approval in the amount of $170M for Phase 5. Planned completion of project is within the 2012 timeframe.

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

Medium To Heavy Lift Helicopter (MHLH)

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

The Medium to Heavy Lift Helicopter project will deliver the medium to heavy lift helicopter capability to support land-based domestic and international operations and support Army Training on the road to high readiness. The project will acquire a minimum of 16 helicopters, integrated logistic support and other related support elements.

2. Project Phase: Definition

3. Leading and Participating Departments and Agencies:

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

4. Prime and Major Sub-Contractors:

Prime Contractor

The Boeing Company, Philadelphia, Pennsylvania, USA

5. Major Milestones:

Major Milestones	Date
Memorandum to Cabinet	June 2006
Synopsis Sheet Preliminary Project Approval (PPA)	June 22, 2006
Advanced Contract Award Notice Posted on MERX	July 5, 2006
Synopsis Sheet Effective Project Approval and Contract Award	Fall 2008
First ACAN Compliant Aircraft	Fall 2011
First MHLH	Fall 2012
Initial Operational Capability (IOC)	Fall 2013
Full Operational Capability (FOC)	Fall 2015
Project Close-out	Winter 2015/2016

6. Progress Report and Explanation of Variances:  The phased contracting approach that was previously considered was deemed unnecessary owing to technical risk mitigation activities that occurred throughout the Fall of 2007.

On March 11, 2008, a Request for Proposal was released to the Boeing Company. A proposal was received on July 21, 2008.

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

Medium Support Vehicle System Project (MSVS)

1. 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 cost approximately $1.1B (net of GST) and will deliver the following mix of vehicles:

1. medium-sized Standard Military Pattern (SMP) trucks: - Up to 1,500 trucks, with options for an additional 650; - Up to 150 integrated armour protection systems, with options for an additional 150, and - Up to 300 companion military pattern trailers, with options for an additional 240.
2. medium-sized Militarized Commercial Off-the-Shelf (MiLCOTS) vehicles: - Up to 800 commercial trucks with militarized components, with options for an additional 500.
3. specially Equipped Vehicles (SEV) Kits: - Up to 1,000 special equipment vehicle kits, with options for an additional 150.

2. Project Phase: Definition

3. Leading and Participating Departments and Agencies:

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

4. Prime and Major Sub-Contractors: One prime contractor will be selected for each project component. Final selection of the prime contractors will occur through Effective Project Approvals (EPAs) in two phases: Phase 1 for MilCOTS and SEV Baseline Shelter; and Phase 2 for SMP and SEV Kitting.

5. Major Milestones:

Major Milestones	Date
Memorandum to Cabinet	June 22, 2006
Preliminary Project Approval (PPA)	June 22, 2006
Invitation for Bids Posted on MERX - Militarized Commercial Pattern Vehicles	November 15, 2007
Invitation for Bids Posted on MERX - Standard Military Pattern Vehicles	Fall 2008
Invitation for Bids Posted on MERX - Family of Baseline Shelter	Spring 2008
Invitation for Bids Posted on MERX - Special Equipment Vehicle Kits	To be determined
Effective Project Approval - EPA for MilCOTS and SEV Baseline Shelter	Fall 2008
Effective Project Approval - EPA for SMP and SEV Kitting	Fall 2009
Contract Award - Militarized Commercial Pattern Vehicles	Fall 2008
Contract Award - Standard Military Pattern	Fall 2009
Contract Award – Family of Baseline Shelter	Fall 2008
Contract Award - Special Equipment Vehicle Kits	To be determined
First Delivery - Militarized Commercial Pattern Vehicles	Fall 2009
First Delivery - Standard Military Pattern	Winter 2010
First Delivery - Family of Baseline Shelter	Fall 2010
First Delivery - Special Equipment Vehicle (SEV) Kits	To be determined
Delivery Complete - Militarized Commercial Pattern Vehicle	Fall 2010
Delivery Complete – Standard Military Pattern (SMP)	Winter 2012
Delivery Complete – Family of Baseline Shelter	Summer 2012
Delivery Complete - Special Equipment Vehicle Kits	To be determined
Project Close Out	Spring 2013

6. Progress Report and Explanations of Variances: Treasury Board provided the MSVS project $25.8M ($BY) Expenditure Authority for the Definition phase on June 22, 2006. Design and definition work is progressing well incorporating consultation with industry whenever possible. The status of each MSVS component is outlined below:

1. MilCOTS - The MilCOTS RFP was released to industry November 15, 2007. Bid evaluation was completed in Summer 2008 and EPA is anticipated in Fall 2008.
2. SEV Baseline Shelter – RFP development is progressing well. Draft technical specifications were posted in October 2007 for industry review. Remaining documentation was developed and the final RFP was released in Spring 2008. EPA for this component of the project will be sought in Fall 2008. 
3. SMP - In response to current worldwide threats, the department has determined that an increased level of protection is necessary for SMP vehicles. Therefore, the project office has conducted analyses of industry capability, feasibility studies and validation of the current procurement strategy. A draft vehicle technical specification was posted in October 2007 for industry comment. The complete RFP is planned for release in Fall 2008.
4. SEV Kitting - The project office, in concert with the user community, has been able to reduce the number of existing variants (such as types of kitchens, repair shops, workshops, field offices, etc.) from more than 130 to approximately 30. The development of the SEV Kitting RFP although progressing, is highly dependent on the Baseline Shelter Contract Award. To reduce complexity and risk, the SEV Kitting procurement strategy was revised from a Request for Supply Arrangement (RFSA) with possibly 8 Call-ups to a single Request for Proposal (RFP) for the procurement of all kitting requirements.

The key variance within MSVS is schedule. Definition Phase was extended by two years. Delays have been encountered and the single EPA scheduled for Fall 2007 has now been split into two phases: Phase 1 for MILCOTS and SEV Baseline Shelter in Fall 2008 and Phase 2 for SMP and SEV Kitting in Fall 2009. The delays are attributed to the following key factors:

1. Increased protection levels of the SMP vehicles in response to the increased threat environment – The inclusion of higher protection levels required the project to validate current industry capability within a competitive procurement environment.  Additionally, it has been determined that industry must obtain secret classification levels in order to view the full SMP specifications all leading to delays in the original schedule.
2. Inclusion of Human Factors testing and Vehicle Performance demonstrations – In order to allow manufacturers to demonstrate the functionality and capability of their vehicles as part of the bid evaluation process, additional time has been allocated in the bid response period. This will allow the CF to have a more direct hands-on approach in the selection of equipment but has impacted both the MilCOTS and SMP schedules.
3. Overall manning shortages – Human Resource efforts to fully staff the project have been underway since PPA. The project is currently manned at 85% and striving to attain full capacity.

At this time, Project Close-out is anticipated for Spring 2013. A continuous risk management program has been implemented and costing efforts for the implementation phase are progressing. 

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

Military Automated Air Traffic System (MAATS) Project

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

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

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies

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

4. Prime and Major Sub-Contractors

Prime Contractor	Raytheon Canada Limited, Richmond, BC NavCanada, Ottawa, ON
Major Sub-Contractors	Hewlett Packard Canada Ltd, Ottawa ON CVDS, Montréal PQ Frequentis Canada Ltd, Ottawa ON

5. Major Milestones

Major Milestones	Date
Treasury Board Effective Project Approval	July 20, 1993
Contract Award	January 20, 1994
Preliminary Design Review	September 1, 1997 – May 31, 2000
Critical Design Review	February 2, 2001
Factory Acceptance Test (Closure)	January 8, 2002
Initial Delivery (Montréal)	December 11, 2003
Contract Complete (Last payment)	December 6, 2004
Approval received to disengage concurrent development with NAV CANADA project and pursue sustainable minimum military requirement (PMB Approval)	September 15, 2006
Begin Software Development on Phoenix Systems	October 26, 2006
Complete Phoenix NAMS II Development	October 12, 2007
Initial Operational Capability  – First Wing Operational with NAMS II Equipment	October 31, 2007
Full Operational Capability (FOC) – All Wings with delivered Equipment	June 2009
Begin project Close-out	July 2009
Project complete	April 2010

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

As briefed at SRB on June 30, 2006, the MAATS project objectives were declared unachievable within the existing funding envelope. Given a number of alternative options, MAATS’ Project Management Office (PMO) recommended to cease MAATS 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 ADM(Mat), the Project Management Board (PMB) concurred with the PMO’s recommendation on March 15, 2007.  MAATS’ PMO was directed to de-link the project from NAVCanada’s Civilian 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 the approvals were received in July 2007, the Phoenix solution is well on its way 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 and built on standard commercial off-the shelf (COTS) hardware and open source software, thus keeping technical risk LOW.  Installation of Phoenix equipment (NAMS II) at 8 Wing Trenton was completed and Provisional Operational Airworthiness Clearance (POAC) was granted in October 2007, ahead of schedule. Actual close out activities, including a project completion report to Treasury Board will be completed in fiscal 2009–2010.

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

Region	Cash Benefits
Atlantic Canada	$1.6M
Québec	$1.0M
Ontario	$1.8M
Western Canada	$50.2M
Unallocated	To be determined
Total	$54.6M

Protected Military Satellite Communications (PMSC)

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

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies

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

4. Prime Contractor and Major Sub-Contractors

Prime Contractor	United States Department of Defense
Major Sub-Contractors	To be determined

5. Major Milestones

Major Milestones	Date
Preliminary Project Approval	August 25, 1999
Effective Project Approval	November 18, 2003
Initial Terminal Delivery	Summer 2009
Initial Satellite Delivery	Spring 2010
Terminal Delivery Completed	Summer 2013
Project Complete	Winter 2014

6. Progress Report and Explanations of Variances:  The PMSC project will be implemented in two phases. Under Phase 1, a Memorandum of Understanding (MOU) with the United States Department of Defense (DOD) will guarantee Canadian participation in their Advanced Extremely High Frequency (AEHF) system. Definition studies for the terminal segment were completed in Phase 1. Under Phase 2, the terminal segment will be procured, installed and tested.

On August 25, 1999, Treasury Board granted Preliminary Project Approval to the PMSC Project, with expenditure authority for the implementation of Phase 1 at an estimated cost of $252M and granted approval for the Department of National Defence to enter into a Military Satellite Communication (MILSATCOM) MOU with the US Department of Defense. The MOU was signed November 16, 1999.

On November 18, 2003, Treasury Board granted Effective Project Approval to the PMSC Project, with expenditure authority for the Implementation of Phase 2 at an estimated cost of $300M.  The total cost is now estimated at $552M.

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

Submarine Capability Life Extension

1. 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.

The project 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.

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works & Government Services Canada
Participating Department	Industry Canada and its regional agencies

4. Prime and Major Sub-Contractors

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

5. Major Milestones

Major Milestones	Date
Treasury Board Approval	June 2, 1998
Main Contract Award	July 2, 1998
Initial Support Contract Award	July 2, 1998
Initial Operational Capability	April 26, 2006
Final Operational Capability	July 2010
Project Close-out	March 2013

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

1. Her Majesty’s Canadian Ship (HMCS) Victoria finalized her Canadianization in early 2003 and completed her transit to the west coast of Canada in August 2003.  She completed a Repair Work Period in May 2004. Due to the incident onboard HMCS Chicoutimi, the operational pause prevented HMCS Victoria from going to sea. Once lifted, HMCS Victoria continued operations by progressing her Operational Trials and Evaluation (OT & E) work in defining the vessels weapons envelope. In June 2005 HMCS Victoria entered her Extended Docking Work Period (EDWP), currently being conducted in Fleet Maintenance Facility (FMF) Cape Breton, which is scheduled to complete in July 2009.
2. HMCS Windsor completed her Canadianization in December 2003. She had begun participating in east coast exercises and patrols during the summer of 2004.  Due to the incident onboard HMCS Chicoutimi, the operational pause prevented HMCS Windsor from going to sea. Once lifted, she continued with operations on the East Coast. HMCS Windsor entered her EDWP in FMF Cape Scott in January 2007, which is scheduled to complete in August 2009.
3. HMCS Corner Brook started her Canadianization work in Halifax on January 5, 2004. The modifications required from the HMCS Chicoutimi incident were completed as part of her Canadianization work in summer 2006. HMCS Corner Brook is operational and is participating in various exercises and patrols. As the only running submarine a further extension to her materiel certificate is being executed to ensure one submarine continues to operate through this transition period up to 2011.
4. HMCS Chicoutimi was handed over to Canada October 2, 2004. On October 5, 2004, while en-route to Canada, she had an electrical incident at sea and was returned to Canada via sealift. She was in the Halifax Shipyard Limited (HSL) undergoing damage repairs and Canadianization work, which was expected to be complete in winter 2007. This Extended Docking Repair Work Period (EDRWP) has been cancelled and the submarine commenced an Extended Limited Maintenance Period (ELMP). Some Canadianization Work Period (CWP) Engineering Changes (ECs) are to be implemented during the ELMP. It is anticipatedthat she will enter an EDWP scheduled to commence in 2010.

Effective Project approval was granted to the SCLE project on June 2, 1998 at an estimated total cost of $812.0M (BY) net of GST. The expenditure ceiling was increased $84.8M by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. SCLE project is currently expending to budget.

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

Public Works and Government Services Canada

Table 9: Status Report on Major Crown Projects

Project name: Long-Term Vision and Plan for the Parliamentary Precinct

1. Description

PWGSC is the custodian of the buildings and grounds within the Parliamentary Precinct. Part of this important mandate is to maintain the historical and architectural integrity of these assets.

A Long Term Vision and Plan (LTVP) for the Parliamentary Precinct was developed to help guide the fulfillment of this mandate. It was originally approved in 2001. In May 2005, Cabinet instructed the Minister of PWGSC to return with options to revise the LTVP and its associated costs.

A revised LTVP was presented and approved by Cabinet in June 2007. This update which was undertaken in conjunction with the Parliamentary Partners – the Senate, the House of Commons and the Library of Parliament, established a comprehensive approach for rehabilitating the heritage buildings, providing additional parliamentary accommodations and creating a secure and welcoming environment for parliamentarians, staff, visitors and tourists.

One of the key features of the 2007 LTVP is a new Implementation Strategy. This strategy is composed of a broad strategic direction and a series of cyclical five-year programs. These cycles provide greater flexibility in planning and implementation based on changing government and parliamentary priorities, building conditions, etc. This flexibility allows for more accurate costing and more realistic project timelines.

Each five-year program is composed of three components:

1. The Major Capital Program of the first five-year program of work will focus on advancing the critical West Block Program. The West Block Program includes:
   • Securing space in order to be able to empty the La Promenade and Wellington buildings. This required the fit-up of almost a million square feet of space in seven buildings in the downtown core (C.D. Howe, Clarica, Confederation, 119 Queen Street, 131 Queen Street, 155 Queen Street, and 181 Queen Street) and the relocation of over 1300 parliamentary staff and over a dozen major parliamentary support functions;
   • Restoration and fit-up of the La Promenade building, Wellington building, former Bank of Montreal building replacing the Confederation room (Room 200) buildings and the construction of a new food production facility for Parliament Hill. These projects must be completed before the West Block Building Rehabilitation Project can begin;
   • Stabilization and preparation of the West Block Building for the major renovation, including exterior stabilization of the building’s masonry and towers; and
   • The West Block’s major rehabilitation and transformation to support the Chamber functions of the House of Commons (infill).
2. The Recapitalization Program includes a series of urgent building interventions (related mostly to exterior masonry repairs) required to ensure the ongoing viability of buildings and address health and safety issues. These projects are a part of the full restoration work that will ultimately be done on these buildings and by undertaking them early will ensure that future projects are less complicated and costly. The major focus of this program for the first five years includes:
   • Centre Block rehabilitation of portions of the roof and ventilation towers;
   • East Block exterior envelope repair of the 1867 wing with an initial focus on the north-west tower and the south-east corner;
   • Confederation Building repairs to the entire building envelope, including masonry, windows and roof;
   • Emergency work required – for example, the West Block water main; and
   • Ground work such as the North perimeter wall and slope stabilization.
3. The Planning Program focuses on the development of more refined plans and reliable cost estimates for projects in the next five-year program. This includes:
   • East Block renovation and Infill Feasibility Study;
   • Security and Visitor Services Facility – Feasibility Study;
   • West Terrace Pavilion – West Sector Master Plan; and
   • Centre Block Renovations.

An important element in the LTVP is a strong reporting framework that enables the Parliamentary Partners and PWGSC to set both long-term direction and achieve immediate priorities. The revised LTVP has strong oversight and accountability measures that will ensure more effective management of the costing, planning and scheduling of the LTVP through new government approvals every five years. In addition to the annual Departmental Performance Report, the Parliamentary Precinct provides regular quarterly report cards to the Minister and the Parliamentary Precinct Oversight Advisory Committee. An annual report on progress of the LTVP program to the Treasury Board Secretariat is also provided.

2. Project Phase: Ongoing

3. Leading and Participating Departments

• Lead Department or Agency: PWGSC
• Contracting Authority: PWGSC
• Participating Departments and Agencies: Senate of Canada, House of Commons, Library of Parliament
• Consultations and Approvals with: The National Capital Commission (NCC) and Federal Heritage Buildings Review Office (FHBRO)

4. Prime Contractors and Major Sub-Contractors

See separate notes for each of the following projects: West Block Renovation Program and Wellington Building Renovation Project.

5. Major Milestones

Milestone	RPP 2007-2008	DPR 2007-2008
Memorandum to Cabinet – Update on the LTVP for the Parliamentary Precinct	Not included	Completed – July 2002
Memorandum to Cabinet – LTVP for the Parliamentary Precinct – Update	Not included	Completed – May 2005
Memorandum to Cabinet – The Long Term Vision and Plan for the Parliamentary Precinct – Update 2007	Not included	Completed – June 2007

6. Progress Report and Explanation of Variances

Progress against each of the three programs in fiscal year 2007-2008 to-date is highlighted below:

1. The Major Capital Program continues to focus on advancing the critical West Block Program. This includes vacating and fit-up of key buildings to enable vacating West Block so it can be renovated.
   • Completed fit-up of 119 and 131 Queen Street, in order to relocate functions displaced from the La Promenade and Wellington buildings. The La Promenade and Wellington buildings will be used as interim Parliamentary Offices and Committee rooms during the renovation of West Block;
   • Continuing renovation of La Promenade building – specifically interior demolition and replacement of windows;
   • Wellington – relocation of occupants underway, design work for the building initiated;
   • Former Bank of Montreal building renovation design work underway. This building will permanently replace West Block’s Confederation room (Room 200);
   • Food Production Facility for Parliament Hill will be permanently moved off site to a remote location to free up space for core parliamentary functions. Design and construct processes underway; and
   • West Block building – finishing rehabilitation work on the Southeast Tower, construction to start on the North Tower, design ongoing for the building renovation and infill; the infill will serve as an interim chamber for the House of Commons.
2. The Recapitalization Program continues to focus on a series of urgent building interventions (related mostly to exterior masonry repairs) required to ensure the ongoing viability of buildings and address health and safety issues. Work has been initiated and includes:
   • Centre Block - project definition and determining scope of work for rooftop elements and towers;
   • East Block – project definition and determining scope of work to rehabilitate building exterior masonry;
   • Confederation building – project definition and determining scope of work to rehabilitate building exterior masonry and interior building systems;
   • Emergency work – West Block water main emergency repair completed; and
   • Grounds – continue work on the North Perimeter wall and North Slope Stabilization.
3. The Planning Program continues to focus on the development of more refined plans and reliable cost estimates for projects in the next Five-year Program. Work has been initiated and includes:
   • East Block – initiation of Renovation and Infill Feasibility Study;
   • Security and Visitor Services Facility – initiation of a Feasibility Study for Visitor Services and Screening;
   • West Terrace Pavilion – work to commence to initiate a West Sector Area Master Plan;
   • Immediate Security Measures – initiate studies for immediate security measures; and
   • Canadian Museum of Contemporary Photography – initiation of a Feasibility Study for Committee Room use.

See separate notes for additional information on the following initiatives: West Block Renovation Program and Wellington Building Renovation Project.

7. Industrial Benefits

See separate notes for each of the following initiatives: West Block Renovation Program and Wellington Building Renovation Project.

Summary of Non-recurring Expenditures

See separate notes for each of the following initiatives: West Block Renovation Program and Wellington Building Renovation Project.

Project Name: West Block Renovation Program

1. Description

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

Renovations of the building are required for health and safety and asset integrity reasons. In order to implement the renovations, the building has to be completely vacated, thus requiring the provision of alternate accommodations for the MPs, parliamentary functions and support services. Consequently, the program of work will be undertaken in two phases.

Phase 1 involves:

• Emergency stabilization of towers;
• Repairs and conservation of the exterior masonry;
• Fit-up of alternate accommodations in the Clarica, C.D. Howe,  La Promenade, and Wellington buildings for MP offices, support services and committee rooms; and
• The permanent relocation of the food production facility for Parliament Hill to a remote site.

Phase 2 involves:

• Fit-up of space in the former Bank of Montreal building to relocate Confederation room (Ceremonial Room 200);
• Asbestos abatement, interior demolition, and general rehabilitation of the West Block building; and
• Associated infrastructure to support legislative functions during the renovation of the Centre Block, including a courtyard infill to accommodate chamber activities and construction of a security screening facility.

The most recent Preliminary Project Approval (June 2005) in current dollars is $769.2 million (GST excluded) / $821.5 million (GST included).  This approval includes most swing space projects, however, it does not include the funding for the Wellington Building. 

The current schedule calls for MPs and support staff to vacate the West Block in 2010-2011 (Phase 1), with rehabilitation work (Phase 2) to start shortly thereafter.

2. Project Phase:

West Block Building: Project Definition (Design); and
Interim Locations: Project Definition (Design), Project Implementation through Project Close-out

3. Leading and Participating Departments and Agencies

• Lead Department or Agency: PWGSC
• Contracting Authority: PWGSC
• Participating Departments and Agencies: Senate of Canada, House of Commons, Library of Parliament
• Consultations and Approvals with: The National Capital Commission (NCC) and Federal Heritage Buildings Review Office (FHBRO)

4. Prime Contractors and Major Sub-Contractors

• Prime Contractor (design consultant) for the West Block building is a joint venture – ARCOP/FGM, architects – Montreal, Quebec
• Prime Contractor (design consultant) for the La Promenade Renovation project is KWC Architects Inc. Ottawa, Ontario

5. Major Milestones

Milestones reported against the West Block Renovation Program include:

Milestone	RPP 2007-2008	DPR 2007-2008
Revised Preliminary Project Approval (PPA)	Completed - June 2005	Completed - June 2005
Partial Effective Project Approval (Phase 1)	Completed - June 2005	Completed - June 2005
$17. million Spending Authority Approved	Approved – December 2006	Approved – December 2006
Full Effective Project Approval (Phase 1)	October 2007	Partial EPA (Phase 1) – February 2007
Revised PPA for West Block Program	December 2008	Q1 2010-2011
Effective Project Approval (Phase 2)	December 2008	Q1 2010-2011
La Promenade swing space completion	December 2009	Q1 2010-2011
MPs vacate West Block	December 2009	Q1 - Q2 2010-2011
Major construction start	Summer 2010	Q3 2010-2011
Major construction completion	Summer 2018	Q3 2020-2021

6. Progress Report and Explanations of Variances

Variances of the Major Milestones:

Previous reported milestones have been revised to reflect progressive iterations of the various projects within the West Block Renovation Program.  Program milestones, the overall program/project schedules and program cost changes are in response to schedule slippage in the La Promenade Renovation Project.  This slippage is the result of: challenges in relocating commercial tenants; changes to the functional program and design; and difficulties in relocating the La Promenade committee rooms.  This delay impacts the move schedule for MPs from the West Block and therefore affects the overall West Block Renovation Program schedule.   An active management approach has been instituted to avoid further delays, and lessons learned have been captured and are being applied to subsequent projects of this nature.

In addition, in an attempt to accelerate the overall schedule of the West Block Renovation Program, we are exploring strategies to advance the program schedule.  This includes exploring the relocation of committee rooms at the same time as moving Members of Parliament.  This would enable the West Block to be completely vacant during construction, therefore reducing potential construction work delays and allowing for simultaneous construction activities.

Progress Report and Status Update:

West Block Renovation Program activities for 2007-2008 to-date include:

• La Promenade building demolition project (Package 1) was tendered and the demolition is nearing completion with replacement of windows ongoing.  Package 2, fit-up of the building, has been posted for tender and expected to be awarded in the second quarter 2008-2009;
• A prime consultant contract has been awarded for the former Bank of Montreal building in the first quarter 2008-2009;
• A contract has been awarded (first quarter 2008-2009) for the design, construction and purchase of the Food Production Facility project. Design work is underway and construction is expected to begin in third quarter 2008-2009;
• The West Block building design concept phase is underway and will continue to the end of design development at which point we will seek revised EPA;
• The West Block Southeast Tower Repair project (pilot) remains under construction and is slated to be complete in the third quarter 2008-2009;
• The North Tower Repair project’s construction contract has been awarded (first quarter 2008-2009) and the contractor is ready to start; and
• The West Block Investigations Program is ongoing. For example, work is being conducted with three Canadian universities to analyze and recommend approaches for seismic reinforcement; approaches will be incorporated into the design of the main West Block building as well as the Centre and East Block buildings. 

7. Industrial Benefits

A number of multi-million dollar contracts will be awarded for the building construction phase, as well as for the Building Components and Connectivity (BCC) component of the project (information technology systems, multimedia systems, furniture and miscellaneous equipment). The number of available jobs will be determined upon award of the West Block building construction contract and the BCC contracts for the West Block renovation program.

Summary of Non-recurring Expenditures

($ Millions)	Estimated Total Expenditure (PPA – June 2005)	Actual Expenditures to March 31, 2008	Planned Spending 2008-2009	Future Years’ Requirements
West Block Renovation Program (incl. swing space – excluding Wellington) (current dollars – GST excluded)	$769.2	$66.9	$40.9	$661.4 (PPA – June 2005)

Project Name: Wellington Building Renovation Project

1. Description

The Wellington Building, located at 180 Wellington Street, in Ottawa is a recognized federal heritage building and key Parliament Hill asset. It is a six-storey structure first built in 1925 and later enlarged in the 1950’s by the Metropolitan Life Insurance Company. The House of Commons has been the major tenant since the Crown expropriated the building in 1973 to provide future accommodation for the needs of Parliament and the Government of Canada. Seven commercial tenants occupy the ground floor facing Sparks Street.

Renovations of the building are required for health and safety reasons and involve extensive exterior and interior work. The building systems and life safety systems are obsolete and have long surpassed their life expectancy (over 40 years old). Work will comprise asbestos removal, upgrading obsolete building systems, meeting new seismic and environmental standards, reinforcing the structure, restoring the exterior masonry and renovating the interior space.

The planned start of construction is in the third quarter of 2009-2010, with completion of the committee rooms in the third quarter of 2014-2015 and parliamentary office units in the third quarter of 2015-2016. The building will be completely vacated during the renovations. The current cost estimate (Preliminary Project Approval (PPA) – February 2008) in constant dollars is $425.2 million (GST excluded) / $445.3 million (GST included).

The work will be completed in two overlapping stages to expedite project delivery.

The Wellington project is a key enabler of the LTVP by relocating Parliamentarians and functions from the West and East Blocks and thus facilitating the renovation of the Centre Block. Initially it will facilitate the West Block program by providing interim accommodations for the West Block committee rooms during its renovation. It will also provide office units for the Senate during renovation of the East Block.

2. Project Phase: Planning Phase

3. Leading and Participating Departments and Agencies

• Lead Department or Agency: PWGSC
• Contracting Authority: PWGSC
• Participating Departments and Agencies: Senate of Canada and House of Commons
• Consultations and Approvals with: The National Capital Commission (NCC) and Federal Heritage Buildings Review Office (FHBRO)

4. Prime Contractor and Major Sub-Contractors

The contract award for the prime consultant architectural and engineering design team is scheduled for second quarter of 2008-2009.

5. Major Milestones

Milestones reported against the Wellington Building Renovation Project.

Milestone	RPP 2007-2008	DPR 2007-2008
Initial Functional Program	Completed – May 2005	Preliminary Functional Program – Revised completed – July 2007
Revised PPA and Phase 1 Effective Project Approval	April 2007	Revised PPA and Stage 1 EPA – Completed – February 2008
Consultant Contract Award	September 2007	Q2 2008-2009
Revised Functional Program	March 2008	Q2 2008-2009
Phase 2 Effective Project Approval (EPA)	January 2009	Stage 2 EPA – Q2 2010-2011
Phase 1 Construction Start	July 2009	Stage 1 Construction Start – Q1 2010-2011
Phase 1 Construction Completion	September 2010	Stage 1 Construction Completion – Q3 2011-2012
Phase 2 Construction Start	September 2010	Stage 2 Construction Start – Q4 2010-2011
Phase 2 Construction Completion	August 2013	Stage 2 Construction Completion: Committee Rooms – Q3 2014-2015 Parliamentary Office Units – Q3 2015-2016

6. Progress Report and Explanations of Variances

Variances of the Major Milestones:

Previous reported milestones have been revised to reflect progressive iteration of the project requirements. Project milestones, the overall project schedule and project cost changes can be attributed to three major drivers: change in the building's use, national building code changes, and construction cost escalation. The shift from the original project scope of restoring the Wellington Building to accommodate parliamentary support services to that of accommodating ten committee rooms and 69 parliamentary suites has had a significant impact on project requirements such as structural design, information technology, and security. In addition, subsequent to the 2001 cost estimate, the seismic code and sustainability standards have changed significantly.

Note: These changes have direct cost implications, which are compounded when project escalation is considered. The total estimated cost is now expressed in current dollars (including escalation) whereas previously it was in constant dollars.

Progress Report and Status Update:

Since obtaining PPA in June 2001, pre-planning activities were undertaken pertaining to the swing space needed to vacate the building and studies were conducted to address areas such as House of Commons program requirements, to analyze the need to completely empty the building (including commercial tenants) during the renovation, to assess the building condition, to develop approaches to meet sustainability objectives, the new seismic code, conservation of the heritage fabric, and to develop cost estimates, project schedules and risk management plans.

Revised PPA and partial EPA were received in February 2008. Current activities include the preparation of a Threat Risk Assessment and associated Security Design Guidelines, a Blast Mitigation Study, and the final Functional Program. A Prime Consultant contract for architectural services was awarded in the second quarter of 2008-2009.

7. Industrial Benefits

A number of multi-million dollar contracts will be awarded for the building construction phase, as well as for the Building Components and Connectivity (BCC) component of the project (information technology systems, multimedia systems, furniture and miscellaneous equipment). The number of available jobs will be determined upon award of the construction contract and the BCC contracts for the Wellington Building Renovation Project.

Summary of Non-Recurring Expenditures:

($millions)	Current Estimated Total Expenditure (PPA – February 2008)	Actual Expenditures to March 31, 2008	Planned Spending 2008-2009	Future Years Requirement
Wellington Building Renovation Project – (Current dollars GST excluded)	$425.2	$3.5	$5.0	$416.6

Project Name: Government of Canada Pension Modernization Project (GCPMP)

1. Description

The GCPMP is a major component of PWGSC's Transformation of Pension Administration agenda. The purpose of this project is to renew PWGSC's pension administration systems and services, and transform its business processes. This will allow PWGSC to provide industry standard pension administration services to employees, employers and pensioners.

PWGSC's approximately 40-year-old systems and business-process infrastructure for pension administration are in grave need of renewal. The limited capabilities of existing processes and the archaic technology of the legacy systems severely compromise PWGSC's ability to sustain current service levels. As well, they severely limit PWGSC's ability to offer future services that are comparable to the delivery performance and cost-effectiveness industry standards.

Employers are looking to provide better and broader services to their employees. Demographic trends indicate that by 2016, approximately 40% of the current public service will have become eligible for retirement. As a result, increasingly large numbers of employees are seeking retirement counselling and want access to capabilities that allow them to analyze their pension benefit options. Similarly, demands for enrolment services are increasing as new employees are hired to replace retirees. At the same time, pension administration business units face significant losses of experienced, trained personnel, as approximately 42% of the compensation trainers, supervisors, managers, and coaches will be eligible to retire by the fall of 2009.

The GCPMP has completed its Project Definition Phase. A Requirements Mapping and Gap Analysis for the business and technical requirements and the solution proposed was completed in the spring of 2006; this exercise included the mapping of the proposed future business processes as well as the core processes built into the solution’s commercial products. The project team has also completed the preliminary system design and implementation planning, developed substantive estimates, and received Effective Project Approval (EPA) from Treasury Board in June 2007.

In July 2007, the project began its Implementation Phase activities, which are expected to take 4½ years to complete. The project will replace the current pension systems and business processes with commercial-off-the-shelf software applications and industry-standard business processes. Implementation will involve using a phased approach that will introduce new systems and functionality over five releases. The first release will first introduce a new interactive voice response system, as well as modern case management tools, for the pension services centre in Shediac, New Brunswick. The next release will add enhanced case management tools and document imaging capabilities. This will be followed by the replacement of the systems and processes currently used to administer both active member accounts and retired member accounts. Finally, the project will introduce new processes and system functionality in support of pension fund accounting and reporting.

The project is currently completing the first release, and is expecting to complete the implementation in the fall of 2008, as planned.

2. Project Phase

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

3. Leading and Participating Departments and Agencies

Sponsoring Department: Public Works and Government Services Canada

Contracting Authority: Public Works and Government Services Canada

Stakeholder Departments: Treasury Board Secretariat, Department of National Defence

4. Prime and Major Sub-Contractor

Prime Contractor: EDS Canada Inc. (EDS)

Major Sub-Contractors: James Evans and Associates, Siebel Systems, and Vangent (formerly Pearson Canada Solutions)

5. Major Milestones

Milestone	Date completed
Project Definition Phase (from PPA to EPA):
Preliminary Project Approval (PPA) received from Treasury Board (TB)	May 3, 2004
Release of draft RFP (Completion: May 2004)	May 25, 2004
Consultations with vendors (Completion: July 2004)	July 2004
Release of final RFP (Completion: September 2004)	October 22, 2004 (Release of RFP was delayed to allow the project to address feedback from consultations)
Close of bidding period (Completion: December 31, 2004)	January 31, 2005 (Bidding period was extended at the request of the bidders)
Evaluation of bids (Completion: March 2005)	May 27, 2005 (Completion date was deferred to accommodate the extended bidding period and the larger than expected number of bids)
Preparation of the TB submission for contract authority / Contract award (Completion: June 2005)	November 4, 2005 – Contract signed with EDS November 7, 2005 – Vendor began work (contract award was deferred to accommodate the extended bidding and evaluation periods. TB approved the contract award to EDS Canada Inc. on October 31, 2005)
Requirements Mapping and Gap Analysis These activities were rescheduled from original planned date of January 2006 to April 2006 following contract award.	April 2006
Architecture and Design (Completion: September 2006)	September 2006
Effective Project Approval (Completion: November 2006)	June 13, 2007 (Completion of the Treasury Board Submission was delayed to accommodate Treasury Board’s request to prepare a single submission for both the GCPMP and the Centralization of Pension Services Delivery Project)
Implementation Phase (EPA to Close-Out):
Phase 5 – EPA Start-Up Activities (Completion: January 2008)	March 2008 (Final Crown approval and sign-off of vendor deliverables was completed March 7, 2008)
Phase 6 – Design, Construction and Implementation: Release 1.0 – Client Services Basic Case Management and Interactive Voice Response (IVR) (Completion: October 2008) Release 1.5 – Enhanced Case Management and Imaging (Completion: July 2009) Release 2.0 – Replacement of current system and business processes for the administration of active accounts (Contributors) (Completion: February 2010) Release 2.5 – Improved business processes and system functionality for the administration of Service Acquisition, Leave Without Pay (LWOP) and Pension Benefits Division Act (PBDA) (Completion: July 2010) Software Upgrade (Completion: Spring 2011) Release 3.0 – Replacement of current system and business processes for the administration of retired member accounts (Annuitants) and improvement of Accounting and reporting functionality (Completion: October2011)	(See note below)
Phase 7 – Final Maintenance Transition (Completion: January 2012)
Phase 8 – Close-out Phase (Completion: January 2012)

Note: The dates for the implementation phase have been updated to reflect the implementation plans completed during the preparation of the TB Submission for EPA.

6. Progress Report and Explanation of Variances

The initiation and preliminary planning phases were conducted from September 2000 to January 2004, leading up to the finalization and presentation of the Treasury Board Submission for Preliminary Project Approval (PPA) in April 2004. Approval in principle was received from the Treasury Board in March 2004. PPA was received in May 2004, and the project proceeded with the Project Definition Phase.

Following the receipt of PPA, the GCPMP completed and released a draft Request for Proposal (RFP) for the procurement of a contractor for the development and implementation of business transformation and the COTS software-based solution. Industry feedback was analyzed and integrated into the final RFP, which was released in October 2004. The close of the bidding period was extended from December 2004 to January 2005 at the request of bidders. The evaluation of bids was conducted from February to May 2005. Contractor selection was based on the evaluation processes and scoring specified in the RFP. These processes included: the evaluation of hard copy proposals; an evaluation of each bidder’s corporate capabilities, references, presentations and readiness assessment; and the evaluation of financial proposals.

As the EDS Canada Inc. proposal was fully compliant and obtained the highest proposal score, EDS was the recommended bidder. An independent third-party (fairness monitor) was engaged to observe and verify that the evaluation process was conducted with integrity, objectivity and impartiality. The fairness monitor reported that the recommended bidder was selected appropriately.

On November 4, 2005, following approval from Treasury Board, a contract was signed with EDS for the provision of professional services to complete the Project Definition Phase for the new commercial-off-the-shelf (COTS) based pension administration system. The EDS team, including product specialists from James Evans and Associates Ltd. (Penfax), Siebel Systems, and Pearson Canada Solutions (now named Vangent), joined the GCPMP team on November 7, 2005.

The Project Definition Phase activities completed in 2006-2007 included:

• A Requirements Mapping and Gap Analysis between the GCPMP requirements specification and the selected COTS-based solution, including the mapping of the proposed future business processes as well as the product management processes;
• The Architecture and Design of the new pension administration solution; and
• The development of detailed implementation plans to support both the preparation of substantive cost estimates for all work to complete the GCPMP delivery and the TB Submission for Effective Project Approval.

Following the completion of these activities in late 2006, the GCPMP completed its business case and prepared its request for Effective Project Approval from the Treasury Board. The presentation of the TB Submission for EPA was delayed from its original target date of December 2006 to June 2007, to accommodate more pressing Treasury Board priorities.

The project is now proceeding with the actual implementation of the new COTS software based pension administration systems and services. To date the project has begun work on the implementation of two of the five planned releases. Implementation of the five releases is expected to occur over 4 ½ years and progress to date includes the following:

• The implementation of Release 1.0, which is focused on Client Services, began in October 2007 and is expected to be completed in October 2008. This release is introducing new case management capabilities and an enhanced Interactive Voice Response system in the PWGSC Superannuation Directorate in Shediac, New Brunswick.
• The implementation of Release 1.5, which is focused on enhanced case management and the imaging of documents, has been delayed by one month and will begin in June 2008. This delay was primarily due to delays in obtaining imaging expertise while the service provider (Cheque Redemption and Control Directorate in Matane, Quebec), completed the procurement of its professional services.
• The implementation of Release 2.0, which is focused on the administration of active member accounts (including the calculation of estimates), began in January 2008. Detailed design of the new pension system and processes is currently in progress and is expected to be completed in September 2008.
• The implementation of Release 2.5, which is focused on Service Buyback, Leave Without Pay, and Pension Benefit Division, is expected to begin in May 2009 and be completed in July 2010.
• The implementation of Release 3.0, which is focused on the administration of retired member accounts and accounting functions, is expected to begin in April 2011 and be completed in October 2011.
• Final project closeout is expected to be completed in January 2012.

The contract with EDS includes options for the completion of the releases of the GCPMP solution. These options include professional services, COTS software, and maintenance and support services as required to implement the new pension system for the Public Service Superannuation Act (PSSA). Although the project is focused on the PSSA administration, the project will implement a multi-plan solution that will provide for other pension plans within the public service.

7. Industrial Benefits

A multi-million dollar contract has been awarded for the COTS products, as well as for the implementation of the new systems and business processes, support services and ongoing maintenance. The products will include Penfax for core pension administration and Siebel for the Customer Relationship Management functions. Implementation of the new solution, business processes and associated business transformation, is the responsibility of the System Integrator to whom the contract was awarded. The implementation will be conducted in several phases over a four and a half year period (July 2007 to January 2012). During that time, it is expected that there will be some temporary positions required to support the system implementation and business transformation activities in both the National Capital Area and Shediac, New Brunswick. In the long term, the project will provide the infrastructure and processes essential to the sustainability of current pension administration operations, and positions, in Shediac, New Brunswick.

Project Name: Shared Travel Services Initiative (STSI)

1. Description

The STSI is an end-to-end travel solution aimed at delivering value to the Government of Canada and savings to Canadian taxpayers. Its objective is to provide high-quality travel services to Government of Canada employees within an integrated travel management system that enables departments to manage travel more efficiently and maintain the Government of Canada's priority of transparency and accountability in the public sector. STSI offers fully functional, comprehensive and seamlessly integrated travel services to employees travelling on government business, and allows for better travel expense management. Travel services include the following:

• Full-service travel call centre;
• On-line pre-trip approvals;
• On-line reservation service;
• Travel expense claim service;
• Business Intelligence Service;
• Employee Portal;
• Employee traveler service network; and
• Travel Credit Card.

2. Project Phase

The last component of the STSI, the Expense Management Tool (EMT), has been designed and fully implemented across the Government of Canada. STSI is now focusing its efforts on working closely with the Treasury Board Secretariat and other government departments to increase adoption and usage of all services and tools.

3. Leading and Participating Departments and Agencies

Lead Department or Agency	The STSI is a joint-initiative between Public Works and Government Services (PWGSC) and Treasury Board Secretariat (TBS).
Contracting Authority	PWGSC, Acquisitions Branch
Participating Departments and Agencies	The STSI solution applies to all departments and agencies listed within the Financial Administration Act. The following seven departments were engaged as Vanguards in the Production Acceptance Test of the EMT: Atlantic Canada Opportunity Agency (ACOA), Health Canada, Indian and Northern Affairs Canada, National Energy Board, PWGSC, Statistics Canada, and Veterans Affairs Canada.

4. Prime and Major Subcontractors

Prime Contractor	Accenture Inc.
Major Subcontractors	Amex Canada Inc, Bell Canada Inc, and Concur Technologies Inc.

5. Major Milestones

Major Milestones	Date
Travel Card and Travel Call Centre	April 1, 2004
On-line Booking Tool and Travel Portal	November 2004
Expense Management Tool - Pilot Phase	December 2005
Expense Management Tool - Production Phase	June 2006

6. Progress Report and Explanations of Variances

• The Project Management Plan was due February 5, 2004 — but was not finalized until August 13, 2004.
• The Travel Card and Travel Call Centre were implemented on schedule April 1, 2004.
• The On-line Booking Tool and Travel Portal were to have been rolled out at the same time as the Travel Card and Travel Call Centre, however; initial technological issues with the functionality of the On-line Booking Tool and operating the Travel Portal within the government secure network delayed the actual implementation until November 24, 2004.
• The EMT Pilot Phase originally scheduled to commence in late July 2004 was delayed until December 5, 2005, due to design problems, contractual and authorities issues. This delay caused a delay in the government-wide roll-out, which commenced in June 2006.
• STSI continues to work with Treasury Board Secretariat and other government departments to raise adoption of the full suite of travel services and tools.
• STSI has completed the design and implementation of the project and is now in the process of transitioning to a steady-state program.

7. Industrial Benefits

Canadian industry in the following regions of Canada will benefit from this project: N/A

Summary of Expenditures:

($millions)	Actual Expenditure 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010	Planned Spending 2010-2011
STSI	8.733	9.480	9.480	9.480

Additional information for the above table:
All expenditures are recovered through various sources of revenues. The Accenture contract runs until 2011-2012. Program funding requirements will likely change at that point. STSI received the authorities from Treasury Board in 2007-2008 to recover costs (established rate) from other government departments for fiscal years 2007-2008 and 2008-2009. STSI will be submitting a request in the fall of 2008-2009 to Treasury Board for on going authorities to generate revenues.

Royal Canadian Mounted Police

Table 6: Status Report on Major Crown Projects

Real Time Identification (RTID)

1. Overview

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

Fingerprints are submitted by police agencies to support the creation of a criminal record, or to search the criminal record repository during a criminal investigation or civil security screening. RTID will streamline these services, facilitate information sharing internationally and permit an improved tracking of criminals by condensing identification turnaround times from weeks and months to hours and days.

Funding for the RTID Project was announced on April 20, 2004 under the National Security Policy. Between 2001 and 2004 significant work had been undertaken by a small project team within the RCMP to define RTID requirements and prepare statements of work in anticipation of this announcement.

Following the announcement, a Project Charter was developed and a formal Project Office established under the sponsorship of Information and Identification Services of National Police Services (NPS). The Chief Information Officer (CIO) was appointed Project Leader, responsible for achieving the technology improvements associated with the project.

The project will be completed in two major Phases. Phase 1 which was delivered in 2007, modernized the civil clearance process, by replacing the Automated Fingerprint Identification System (AFIS) and implementing a new transaction manager. The NPS National Institute of Standards and Technology (NIST) Server permits agencies to submit their fingerprint information electronically.

The release of Phase 2 is anticipated in the Spring of 2009, which will replace the antiquated system and modernize the processes related to the management and update of criminal records.

2. Lead and Participating Departments

The RCMP is the lead department on RTID. Various levels of governance will ensure the Project is successful and meets the needs of all stakeholders:

The RCMP Senior Project Advisory Committee, Public Safety Canada (PS) and Central Agency officials provide direction to the Project Leader on all aspects of the project as it relates to government-wide policies, strategic direction and procurement. This includes the review of the scope through the definition procurement strategy.

An RTID Project Steering Committee provides ongoing direction to the project which includes representatives of key Federal Government departments and Central Agencies. Oversight of RTID is also linked to the PS Portfolio Interoperability Committee, thus ensuring the project’s horizontal interests and planned contribution to overall public safety are fully realized.

RTID is a major interoperability initiative of interest to all agencies within the PS portfolio. Its progress and success in contributing to long term interoperability will be monitored by the Heads of Agency Steering Committee through the PS Portfolio Interoperability Committee.

RTID will be used across Canada and in all jurisdictional levels. Stakeholder involvement is required to ensure that the system is functional and fully compliant with regulations. This involvement is ensured through the NPS Advisory Council and Technical Consultative working groups.

3. Prime Contractors / Major Sub-Contractors

The RCMP is using several procurement vehicles for the RTID Project:

• Automated Fingerprint Identification System (AFIS) Vendor: RTID involves the replacement of the existing AFIS with modern AFIS technology. The AFIS vendor, COGENT Systems, selected via a competitive process, is responsible for the delivery, configuration and implementation of a modern AFIS Commercial Off The Shelf (COTS) product.
• Development work that aligns with the RCMP corporate technical architecture is being carried out in-house. The NPS NIST Server, the heart of RTID, is being developed by a team of RCMP resources and contractors. To supplement the skills of internal resources, or to backfill resources seconded to the project, RTID uses internal standing offer vehicles to meet any outstanding demands for project management support. The major contractors are:
  • Veritaaq
  • Fujitsu
  • TPG
• Systems Integration Company: a component of Phase 2 will be contracted out on a fixed price basis to ensure the successful delivery of the multiple components of the phase. Subsequent to the issuance of a Request for Proposal (RFP), a contract was awarded in January 2008 to Fujitsu Consulting (Canada).

4. Major Milestones

Accomplishments

• Funding for RTID was announced on April 20, 2004 under the National Security Policy.
• The current procurement approach was approved by the Senior Project Advisory Committee in November of 2004.
• On December 13, 2004, the RCMP received Treasury Board of Canada Secretariat (TBS) approval of its RTID procurement strategy and Preliminary Project Approval at an indicative estimate of $129.8 million to complete development of RTID over 5 years. The source of funds was identified as follows: $99.8 million from Canada’s National Security Policy and $30 million from RCMP funding.
• A Request for Proposal for the AFIS Vendor was issued in January 2005. A contract was awarded to COGENT Systems on October 13, 2005 and work started November 1, 2005.
• On October 3rd, 2005, Effective Project Approval for Phase 1 was awarded by TBS to the RTID project.
• In November 2006, the RTID Project successfully implemented its first release (R0.5) to bring on two civil contributors.
• In March 2007, the RTID Project successfully implemented a subsequent release (R1.0) providing more functionality to the civil fingerprint process.
• On June 14, 2007, Effective Project Approval for Phase 2 was awarded by TBS to the RTID project.
• Request for Proposals (RFP) for Phase 2 were published in June 2007.
• A contract for Phase 2 was awarded in January 2008.
• Latent functionality was completed in March 2008.

To be delivered

• Criminal and Refugee workflow to be delivered by Summer 2008.
• The decommission of the old AFIS is planned for Fall 2008.
• The delivery of Phase 2 is planned for 2009 and 2010.
• The project closure is planned for May 2010.

5. Progress Report and Explanation of Variances

Phase 1 work has been split into multiple releases to ensure that the implementation of functionality is successful. The multiple release schedules are anticipated for complete delivery by Summer 2008. The RFP for Phase II was published in June 2007, with a contract awarded in January 2008.

The variance in the schedule is attributable to a delay in awarding the contract for Phase 2.

6. Industrial Benefits

There is no industrial benefits program for the Real Time Identification Project.

Canada Firearms Centre

Table 5: Status Report on Major Crown Projects

Canadian Firearms Information System II

The RCMP assumed responsibility for the Canadian Firearms Information System II (CFIS II) following the government decision in May 2006 to transfer to the RCMP the day to day operations of the Canada Firearms Centre and responsibility and administration of the Canadian Firearms Program. By that time, CFIS II had already been subject to a stop-work order issued by PWGSC. In 2007-2008, TBS approved the RCMP’s final project evaluation report that formally ended the Major Crown Project for the replacement of CFIS.

Description

The Canadian Firearms Information System (CFIS I) is a national system designed to support the administration of the Firearms Act and is supported by EDS Canada Inc. based on a maintenance contract. The current system was put into production on December 1, 1998 and is the single repository for licence and registration information for the Firearms Program. Since December 1, 1998, approximately two million licences have been issued and seven million firearms have been registered. CFIS links all elements of the Canadian Firearms Program including the Central Processing Site in Miramichi, New Brunswick. The system interfaces with the Canada Firearms Registry On-line (CFRO), the Firearms Reference Table (FRT) and the Canadian Police Information Centre (CPIC). CFIS II is a new technical solution involving the development and implementation of a software application to replace CFIS I. It was designated as a Major Crown Project by Treasury Board of Canada Secretariat in November 2003.

Project Phase

PWGSC issued a notice of default on March 31, 2006. In late April 2006, PWGSC issued a stop work order against CFIS II application development and implementation testing.

Leading and Participating Departments and Agencies
Lead Department:	Royal Canadian Mounted Police – Canada Firearms Centre
Contracting Authority:	Public Works and Government Services Canada
Participating Departments and Agencies:	Canada Border Services Agency Department of International Trade

Prime and Major Sub-Contractors
Prime Contractor:	CGI Information Systems and Management Consultants Inc.
Major Sub-Contractors:	Bell; NexInnovations; Aliant; HP

Major Milestones
Major Milestones	Date
Effective Project Approval for a redefined Canadian Firearms Information System Redesign granted by TBS	February 2005
Contract amendment signed with the service provider	March 2005
Phased deployment of IT infrastructure	Started December 2005
Certification and implementation of CFIS II	Halted
Project formally ended	June 2007

Progress Report and Explanations of Variances

The existing CFIS I remains stable and is expected to be operational for up to 5 years within present operating conditions. Upgrades have been implemented to its infrastructure and its functionality. The system is interfacing with all of the other systems required to carry out the operations for CAFC and the Firearms Program. A plan has been developed that will see the transition of CFIS components to employee-based operations by the end of two-year period.

Industrial Benefits

Not applicable