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Status Report on Major Crown/Transformational Projects
For Fiscal Year 2009-2010
Table of Contents
- AIRLIFT CAPABILITY PROJECT - STRATEGIC (ACP-S)
- AIRLIFT CAPABILITY PROJECT - TACTICAL (ACP-T)
- ARCTIC/OFFSHORE PATROL SHIP (AOPS)
- ARMOURED PERSONNEL CARRIERS (APC)
- CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM (CCMP)
- CANADIAN FORCES SUPPLY SYSTEM UPGRADE (CFSSU)
- CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER (CFUTTH) PROJECT
- CANADIAN SEARCH AND RESCUE HELICOPTER (CSH) PROJECT
- CANADIAN SURFACE COMBATANT PROJECT (CSC)
- CLOSE COMBAT VEHICLE (CCV)
- FORCE MOBILITY ENHANCEMENT (FME)
- HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION (HCM/FELEX)
- INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE (ISTAR)
- LIGHT ARMOURED VEHICLE III UPGRADE PROJECT (LAV III UPGRADE)
- JOINT SUPPORT SHIP (JSS)
- LIGHT UTILITY VEHICLE WHEELED (LUVW)
- LIGHTWEIGHT TOWED HOWITZER (LWTH)
- MARITIME HELICOPTER PROJECT (MHP)
- MATERIEL ACQUISITION AND SUPPORT INFORMATION SYSTEM (MASIS)
- MEDIUM SUPPORT VEHICLE SYSTEM PROJECT (MSVS)
- MEDIUM-TO-HEAVY LIFT HELICOPTER (MHLH)
- MILITARY AUTOMATED AIR TRAFFIC SYSTEM (MAATS) PROJECT
- NEXT GENERATION FIGHTER CAPABILITY (NGFC)
- PROTECTED MILITARY SATELLITE COMMUNICATIONS (PMSC)
- SUBMARINE CAPABILITY LIFE EXTENSION (SCLE)
- TACTICAL ARMOURED PATROL VEHICLE (TAPV)
- TANK REPLACEMENT PROJECT (TRP)
- WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION (WLAV LE)
AIRLIFT CAPABILITY PROJECT - STRATEGIC
Description
The objective of the Airlift Capability Project - Strategic (ACP-S) is to acquire four new aircraft that will provide the Canadian Forces (CF) with the global reach and speed necessary to operate effectively over long distances, as well as to deliver personnel and cargo directly into a theatre of operation, including threat environments.
Project Phase
Implementation: All four aircraft have been accepted on schedule and project close-out is expected for summer 2012.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | The Boeing Company, St-Louis, Missouri, USA |
|---|
| Major Milestone | Date |
|---|---|
| Synopsis Sheet (Effective Project Approval) | June 2006 |
| Advanced Contract Award Notice Posted on MERX | July 2006 |
| Contract Award | February 2007 |
| Delivery First Aircraft | August 2007 |
| Delivery Second Aircraft | October 2007 |
| Delivery Third Aircraft | March 2008 |
| Delivery Fourth Aircraft | April 2008 |
| Initial Operational Capability | October 2008 |
| Full Operational Capability | Spring 2012 |
| Project Close-Out | Summer 2012 |
Project Outcomes
Deliver four aircraft and the required infrastructure at 8 Wing Trenton. Once declared at full operational capability it will contribute towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.
The beneficiary of this capability is the Aerospace and Land Forces.
Progress Report and Explanations of Variances
All four aircraft have been accepted on schedule and the fleet has already flown in excess of 13,500 flying hours. The project office is currently working on the Implementation Phase of the project. As the project transitions to in-service support, Full Operational Capability is expected in spring 2012 when the infrastructure at Trenton is completed and the Squadron can sustain all planned mission types as stated in the Statement of Operational Requirement.
Industrial Benefits
Industrial and Regional Benefits (IRB) are equivalent to 100% of the acquisition contract, Boeing's share of the in-service support Foreign Military Sales contract value, and the value of the engines. (A separate IRB agreement was negotiated with Pratt and Whitney USA for the value of the C-17 engines). The three IRB agreements total $1.9B. Several IRB announcements have been made and all regions of Canada are benefiting from these contracts.
AIRLIFT CAPABILITY PROJECT - TACTICAL
Description
The objective of the Airlift Capability Project - Tactical (ACP-T) is to ensure a continued tactical airlift capability. This project will replace the Canadian Force's aging CC 130E Hercules fleet. It will also provide the CF with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.
Project Phase
The project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 C-130J aircraft. Aircraft deliveries began in June 2010. The final aircraft is to be delivered no later than August 2012.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | Lockheed Martin Corporation, Marietta, Georgia, USA |
|---|---|
| ISS Sub-Contractor | Cascade Aerospace, Abbotsford, British Columbia, Canada |
| ISS Sub-Contractor | IMP Aerospace, Enfield, Nova Scotia, Canada |
| ISS Sub-Contractor | CAE, Montreal, Quebec, Canada |
| ISS Sub-Contractor | Standard Aero, Winnipeg. Manitoba, Canada |
| ISS Sub-Contractor | HAAS Group, Oshawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Revised Preliminary Project Approval | June 2006 |
| Solicitation of Interest and Qualification | August 2006 |
| Issue of Request For Proposal | August 2007 |
| Effective Project Approval | December 2007 |
| Contract Award | December 2007 |
| First Aircraft Delivery | June 2010 |
| Initial Operational Capability | January 2013 |
| Full Operational Capability | September 2016 |
| Project Close-Out | December 2014 |
Project Outcomes
The ACP-T project will deliver 17 C-130J aircraft and once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal; and ensuring National Defence is ready to meet government defence expectations, specifically the program activity of Aerospace Readiness.
The beneficiary of this capability is the Aerospace and Land Forces.
Progress Report and Explanations of Variances
Canada's first aircraft arrived in Canada in June 2010, six months ahead of its original scheduled delivery date. Nine aircraft have now been delivered. During the remainder of 2011, four additional aircraft are scheduled for delivery and by August 2012, the last four aircraft will have been delivered.
With recent contract amendments and in conjunction with infrastructure upgrades at the aircraft's Main Operating Base in Trenton, Ontario, the support systems are progressively being established to accommodate the new fleet as it is delivered.
The ACP-T project is currently running on schedule and on budget.
Industrial Benefits
Lockheed Martin Corporation has committed to provide Industrial and Regional Benefits (IRB) equivalent to 100% of the eligible contracted value for both the capital acquisition and the in-service support portions, including a 15% requirement for the participation of small and medium business. The IRB requirements are administered by Industry Canada, through Public Works and Government Services Canada, for the duration of the contract and any amendments.
ARCTIC/OFFSHORE PATROL SHIP
Description
The Arctic/Offshore Patrol Ship (AOPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to demonstrate sovereignty in Canada's waters, including the Arctic. The AOPS project is acquiring six to eight Arctic/Offshore Patrol Ships, the in-services support elements, jetty infrastructures in Halifax and Esquimalt as well as a berthing and fuelling facility at Nanisivik, Nunavut.
Project Phase
The Project Definition Phase will produce an AOPS ship specification and drawing package that the NSPS selected shipyard will be contracted for the detailed design and build the AOPS.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
Prime and Major Subcontractor(s)
AOPS procurement will proceed with the National Shipbuilding Procurement Strategy (NSPS) as announced by the Government of Canada in June 2010. It is anticipated that NSPS will complete the selection and negotiation of the umbrella agreement with the shipyards in fall 2011. The AOPS procurement strategy will include the award of a negotiated acquisition contract to the selected NSPS shipyard and a separate competition for the award of the 25-year In-Service Support Contract.
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval | May 2007 |
| Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP) | December 2007 |
| DELMS RFP Close | February 2008 |
| DELMS Contract Award | May 2008 |
| Effective Project Approval | June 2012 |
| Award of Implementation Contract | June 2012 |
| Delivery of First Ship | 2015 |
| Initial Operating Capability of First Ship | 2016 |
| Project Complete | 2022 |
Project Outcomes
Deliver six to eight ships, a 25 year In-Service Support Contract and associated infrastructures in Halifax, Esquimalt and Nanisivik. This project will sustain Maritime Forces capabilities of conducting armed, sea-borne surveillance of Canada's waters, including the Arctic. Once declared at full operational capability it will contribute towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectation, specifically the program activity of Maritime Equipment Acquisition and Disposal.
The beneficiary of this capability is the Maritime Forces.
Progress Report and Explanations of Variances
The project continues to progress steadily since obtaining Preliminary Project Approval (PPA) in May 2007 with full up indicative cost excluding GST or HST of $3.0308B ($BY) for Implementation Phase. The Project Definition Phase will produce an AOPS ship specification and drawing package that will be sued when the NSPS selected shipyard is contracted for the detailed design and build.
Industrial Benefits
Industrial and Regional Benefits (IRB) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.
ARMOURED PERSONNEL CARRIERS
Description
The Armoured Personnel Carrier (APC) is essential for all foreseeable CF roles, including territorial defence, United Nations (UN) peacekeeping and peace enforcement operations, other international commitments, and aid of the civil power. The existing APC fleet did not meet the minimum operational requirements when compared to the modern, technically sophisticated weapons and vehicles Canadian soldiers encounter during operations. They suffered shortcomings in protection, self-defence capability, mobility, carrying capacity and growth potential. The APC project fielded a fleet of modern, wheeled, armoured personnel carriers. 651 Light Armoured Vehicles (LAV) III were procured in six configurations: Infantry Section Carrier, Command Post, Engineer, Forward Observation Officer, TOW (Tube Launched, Optically Tracked, and Wire Guided) Under Armour, and LAV III Less Kits. The latter was eventually configured into the LAV III with Remote Weapon Station.
Project Phase
Implementation: All vehicles were delivered by October 2007 and construction activities for indoor accommodation are well under way. The project is scheduled for completion in March 2012.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor |
General Dynamics Land Systems, London, Ontario, Canada |
|---|
| Major Milestone | Date |
|---|---|
| Treasury Board Approval | December 1995 |
| Contract Award | December 1996 |
| First Vehicle Delivery | July 1998 |
| Exercise of First Option | July 1998 |
| Exercise of Second Option | July 1999 |
| Exercise of Third Option | July 1999 |
| Last Vehicle Delivery | October 2007 |
| Project Completion | March 2012 |
Project Outcomes
Deliver 651 LAV III vehicles including variants that met the specific performance requirements as well as infrastructure upgrades to accommodate LAV III vehicles in six locations across Canada. This outcome has been achieved under the Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectation, specifically the program activity of Land Equipment Acquisition and Disposal.
The beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
In August 1995, the Government approved, in principle, the procurement of up to 651 APCs. In January 1997, the Government announced the award of a contract to General Dynamics Land Systems - Canada (GDLS-C) to build 240 new eight-wheel-drive APCs. The contract contained three options for an additional 120 and 171 APCs respectively. All three options have been exercised. All vehicles were delivered by October 2007.
The vehicles have been involved in significant operational demands after being fielded and have performed well. They have since undergone a number of modifications to adjust to the modern threat, and will require additional work to optimize their performance against these threats. A separate project has been launched to address this issue.
In March 2004, Treasury Board (TB) authorized $129M for indoor accommodation of the LAV III to facilitate regular maintenance and training programs, and prevent any deterioration that would result from outdoor storage. Construction of these accommodations will take place in six locations: Edmonton, Wainwright, Petawawa, Montréal, Valcartier, and Gagetown. Construction activities are scheduled for completion in early 2012 with a project closure as early as March 2012.
Industrial Benefits
This project includes industrial benefits valued at $1.595B with $852.9M in direct Industrial and Regional Benefits (IRB) and $742.9M in indirect IRBs.
CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM
Description
The Canadian Cryptographic Modernization Program (CCMP) is an omnibus project that will modernize the Government of Canada's aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada's ability to establish secure communications both nationally and internationally.
The CCMP omnibus project includes the following sub-projects:
- Secure Voice / Telephone Re-key Infrastructure;
- Secure Voice / Telephone Family;
- Classified Security Management Infrastructure;
- Combat Identification Family (Identification Friend or Foe (IFF));
- Link Encryption Family;
- Network Encryption Family;
- Secure Radio Family; and
- Secure Mobile Environment.
Project Phase
Implementation for some sub-projects, Definition for others.
| Lead Department | Communications Security Establishment Canada (CSEC) |
|---|---|
| Contracting Authority | Public Works & Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Government of Canada departments and agencies using cryptographic equipment to protect classified information |
| Prime Contractor | N/A |
|---|---|
| Major Subcontractor(s) | Various allied manufacturers of cryptographic equipment |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval for the CCMP Omnibus Project | March 2005 |
| Preliminary Project Approval for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure | November 2006 |
| Secure Voice / Telephone Re-key Infrastructure | September 2009 |
| Secure Voice / Telephone Family | December 2011 |
| Classified Security Management Infrastructure - Phase 1A | 2012 |
| Classified Security Management Infrastructure - Phase 1B | 2012 |
| Link Encryption Family | 2013 |
| Secure Mobile Environment | 2014 |
| Network Encryption Family | 2014 |
| Classified Security Management Infrastructure - Phase 2 | 2016 |
| Combat Identification Family (Identification Friend or Foe (IFF)) | 2016 |
| Secure Radio Family | 2016 |
| Classified Security Management Infrastructure - Phase 3 | 2020 |
Project Outcomes
Deliver affordable Information Protection by means of cryptographic solutions with an adequate level of security to protect Government of Canada classified electronic information and to provide enhanced interoperability to facilitate the exchange of classified information both nationally and internationally. This requires the right balance between interoperability and sovereignty, while striving to meet unique Canadian requirements. Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Defence operations will improve peace, stability and security wherever deployed, specifically the program activity of Support to Intelligence, Surveillance and Reconnaissance.
Progress Report and Explanations of Variances
The CCMP is on budget. The CCMP schedule is dependent on the American Cryptographic Modernization and Key Management Infrastructure programs. This allows Canada to leverage American Research and Development and maintain interoperability with its Allies. Completion dates for the sub-projects are regularly reviewed to keep them aligned with the American programs.
- The CCMP originated as a 12-year program ending in 2016. However, the end date of the Classified Security Management Infrastructure project will need to be extended past 2016 to remain aligned with the U.S. Key Management Infrastructure Program. While the Classified Security Management Infrastructure baseline schedule and cash flow will be updated, extending the end date will not impact the overall cost of the CCMP.
Industrial Benefits
There are no associated Industrial and Regional Benefits (IRB) with this project.
CANADIAN FORCES SUPPLY SYSTEM UPGRADE
Description
The Canadian Forces Supply System Upgrade (CFSSU) project will meet the future supply requirements of the Canadian Forces (CF) during all operational situations while effectively and economically managing Defence's inventory. The system will have an inherent flexibility to manage changes in force structure, size and type of mission. The CFSSU project will employ information technology to modernize CF military supply operations. Not only will this technology dramatically improve productivity, it will also enhance the capability for performance measurement, greatly increase asset visibility, and provide a powerful management tool for provisioning. Additionally, the new supply system will have a deployed capability. The deployed solution is complementing the existing September 2001 corporate implementation to Bases and Wings, as well as the November 2002 implementation, which include all remaining CFSS users, at home and overseas.
Project Phase
Close-Out. CFSSU has been deployed on 17 ships as well as at two sites for Canadian Special Operations Forces Command (CANSOFCOM).
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | EDS Canada Inc., Ottawa, Ontario, Canada |
|---|---|
| Major Subcontractor(s) | Mincom Pty. Ltd., Brisbane, Queensland, Australia ADGA Group, Ottawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Contract Award | January 1995 |
| Initial Site Installation | December 1995 |
| Warehouse Management Information System Delivery | July 1997 |
| Test Development Centre Delivery | October 1999 |
| Commence System Development | November 1999 |
| Complete System Development | March 2001 |
| Commence System Pilot | June 2001 |
| Complete System Pilot | August 2001 |
| Commence System Rollout | September 2001 |
| Complete System Rollout | June 2003 (official acceptance) |
| Project Close-Out (E Status) | September 2004 |
| Project Close-Out (I Status) | Spring 2010 |
Project Outcomes
The CFSSU project contributed to the modernization of military supply operations and inventory management in support of CF operations. In simple terms, the objective of CFSSU project is to supply the right item, at the right time, in the right place, under all conditions, cost-effectively. The CFSSU solution made maximum use of proven technology. The project leveraged the Information Management System provided by the company Mincom (MIMS) platform to provide standardized methods of providing supply support to military operations in all three environments - sea, land and air. The CFSSU project delivered the following capabilities:
- MIMS version 4.4 plus specific user requirements related to warehousing;
- Deployed MIMS solution;
- Bar code functionality at the 7 Canadian Forces Supply Depot (CFSD) and 3 Canadian Supply Group (3 CSG);
- Interfaces with other systems such as the National Materiel Distribution System (NMDS), the Canadian Government Cataloguing System (CGCS) and the Financial Management and Accounting System (FMAS); and
- Customised supply and inventory management reports.
This project contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcomes: Acquiring the resources to meet government defence expectations in all 3 environments, Maritime, Land and Aerospace Equipment Acquisition and Disposal.
The beneficiary of this capability is the Canadian Forces.
Progress Report and Explanations of Variances
TBS initially approved the CFSSU project with an estimated cost of $289.3 million. TBS approved in April 2000, the de-scoping of certain functionality and an increase of $9.8 million to project contingency funding. In addition, $5 million was approved in order to permit Defence the option of restoring the Distribution Resource Planning (DRP) component. The Implementation Phase of DRP was de-scoped and the project budget remained at $304.1 million.
The CFSSU project has been transferred from implementation to close-out in September 2004. Close-out funding is $3.6 million. In March 2006, the Defence Program Management Board approved the usage of close-out funds for the project; these funds are to be used until fully expended or the work is completed. This project is closed and all related activities ended in Spring 2010.
Industrial Benefits
This project includes the following overall Industrial and Regional Benefits (IRB):
| Region | Benefits |
|---|---|
| Atlantic Canada | $51M |
| Québec | $48M |
| Ontario | $26M |
| Western Canada | $105M |
| Unallocated | $10M |
| Total | $240M |
CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER PROJECT
Description
The purpose of the Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project is to acquire helicopters in support of national and international tactical aviation roles. The project supports the Land Forces, Aerospace Forces, Canadian Expeditionary Force Command (CEFCOM) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. It has replaced three aging helicopter fleets - the CH118 Iroquois, the CH135 Twin Huey and the CH136 Kiowa. The Bell 412CF/CH146 was procured as a single role multi-mission helicopter capable of supporting a majority of the tasks previously undertaken by the fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements to include: the tactical lift of troops; logistical lift; reconnaissance and surveillance; direction and control of fire; aero-medical support; casualty evacuation; command and liaison, and communications assistance. These mission capabilities are employed in support of Defence operational commitments, UN peacekeeping missions, and support to other Government Departments and Agencies, including aid of the civil power.
Project Phase
The project has delivered 100 Bell 412CF/CH146 Griffons, a flight simulator, composite maintenance trainer, facilities, mission kits (including Defence electronic warfare suites), as well as other equipment, documentation and services. It is scheduled for completion in April 2012.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | Bell Helicopter Textron, Mirabel, Québec, Canada |
|---|---|
| Major Subcontractor(s) | Pratt & Whitney, Montréal, Québec, Canada BAE Systems Canada Inc., Montréal, Québec, Canada CAE, Montréal, Québec, Canada |
| Major Milestone | Date |
|---|---|
| Contract Award | September 1992 |
| Critical Design Review | April 1993 |
| First Helicopter Delivery | March 1995 |
| Simulator Acceptance | June 1996 |
| Last Helicopter Delivery | December 1997 |
| Project Completion | April 2012 |
Project Outcomes
Deliver 100 Bell 412/CH146 Griffon helicopters and a reduction in the total number of aircraft fleets. This outcome has been achieved under the Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectation, specifically the program activity of Aerospace Equipment Acquisition and Disposal.
The beneficiary of this capability is the Aerospace and Land Forces.
Progress Report and Explanations of Variances
This project received Government approval in April 1992 and Treasury Board approval in September 1992, with an original budget of $1.293B. Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in April 2012 for approximately $200M less than the initial TB budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver (RLWR) functionality.
Industrial Benefits
To date, Bell Helicopter has claimed $289.5M direct and $252.1M indirect Industrial and Regional Benefits (IRB), totaling $541.6M, representing 107% of the overall commitment of $506.7M.
CANADIAN SEARCH AND RESCUE HELICOPTER PROJECT
Description
Maintaining a national search and rescue capability is a key Defence mission. The purpose of the Canadian Search and Rescue Helicopter (CSH) project was to replace the CH-113 Labradors with a fleet of 15 new helicopters. The new helicopters have addressed the operational deficiencies of the CH-113 Labrador fleet and eliminated the supportability difficulties of the older airframes. Given expected aircraft availability rates and a sufficient fleet size, continuous operations are anticipated well into the 21st century.
Project Phase
Completed as of July 2003, all 15 Cormorant helicopters have been delivered. Spare parts and infrastructure are in place to support operations. Initial training is complete. Effective Project Closure was achieved in September 2004 at which point the Project Management Office was closed; however, some aspects of the contract were noted as deficiencies. Final contract completion is projected to occur in 2015.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | Agusta Westland International Limited (formerly European Helicopters Industries Ltd. (EHI)), Farnborough, UK |
|---|---|
| Major Subcontractor(s) | Westland Helicopters, Yeovil, UK Agusta Spa, Cascina Costa, Italy General Electric Canada Inc., Mississauga, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Treasury Board Effective Project Approval | April 1998 |
| Contract Award | April 1998 |
| First Aircraft Delivery (at plant in Italy) | September 2001 |
| Final Aircraft Delivery (at plant in Italy) | July 2003 |
| Project Completion (Effective Project Completion) | September 2004 |
| Expected Project Closure | 2015 |
Project Outcomes
Deliver fifteen CSH aircraft and declared at full operational capability which contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.
The beneficiary of this capability is the Canadian population who find themselves necessarily in need of Search and Rescue services.
Progress Report and Explanations of Variances
The project has procured the required aircraft spares, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for the four CF search and rescue bases. The project has also established and funded the first two years of an in-service support contractor for follow-on support.
The Cormorant has been operational at the squadrons in Comox BC, Gander NL, Greenwood, NS and Trenton ON.CH149 operations at 424 Squadron in Trenton have been suspended temporarily due to the lack of aircraft availability and difficulty in maintaining adequate aircrew training.
It should be noted that although effective project closure was achieved in September 2004, some work is still ongoing and full completion is not expected before 2015. The milestones still outstanding are tied to a three year Technical Publication Revision Service which commenced in FY 2010-11, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least an additional year to address.
Industrial Benefits
The contractor committed to providing direct and indirect Industrial and Regional Benefits (IRB) valued at $629.8M, within eight years from the date the contract was awarded. It is estimated that these benefits created or sustained roughly 5,000 person-years of employment in Canada, and that all regions of Canada benefited from this project. The contractor has completed its obligations to Canada in regards to IRBs under the CSH contract. Small businesses in Canada have also benefited from the project by the placing of $67M in orders.
CANADIAN SURFACE COMBATANT PROJECT
Description
The Canadian Surface Combatant Project (CSC) will recapitalize Canada's surface combatant fleet. Due to the pressing need to replace the IROQUOIS Class destroyers, the CSC Project will begin with the acquisition of a replacement for Area Air Defence and Task Group Command and Control capabilities, forming the basis for the subsequent acquisition of general-purpose warships. The CSC Project will pursue system commonality in design and acquisition in an effort to generate acquisition and through-life cost savings in a number of areas including crewing, training, and maintenance and logistics support. This will result in a number of aspects of the ships being common, regardless of variants produced.
Project Phase
Option Analysis.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | To be determined |
|---|---|
| Major Subcontractor(s) | To be determined |
| Major Milestone | Date |
|---|---|
| Identification Phase Approval | July 2007 |
| Identification Phase Amendment No. 1 Approval | January 2009 |
| Preliminary Project Approval | To be determined |
| Effective Project Approval | To be determined |
| Implementation Contract - Awarded | To be determined |
| Initial Operational Capability | To be determined |
| Full Operational Capability | To be determined |
| Project Completion | To be determined |
Project Outcomes
Deliver a replacement capability currently found in Canada's destroyers and frigates. These new ships ensure that the military can continue to monitor and defend Canadian waters and make significant contributions to international naval operations. The CSC project contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet Government Defence Expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.
The beneficiary of this capability is the Maritime Forces.
Progress Report and Explanations of Variances
The Options Analysis is still underway and the development of project documents is progressing. The Government announced its broad intention for fleet recapitalization and shipbuilding when it announced the Canada First Defence Strategy in May 2008 and the National Shipbuilding Procurement Strategy (NSPS) in June 2010. There has yet to be a specific Canadian Surface Combatant project announcement, but this can be expected in due course.
Industrial Benefits
This procurement will provide Industrial and Regional Benefits (IRB) for the capital acquisition and its associated In-Service Support. These IRB requirements will be negotiated and accepted by Industry Canada prior to contract award.
CLOSE COMBAT VEHICLE
Description
The Close Combat Vehicle (CCV) project will deliver to the Land Forces an extremely well protected armoured vehicle with very high tactical mobility, able to deliver a combat ready Canadian Army infantry section in close combat, while operating in intimate support of Canadian Forces tanks.
Project Phase
Definition: The CCV Project entered its definition phase with the approval of Treasury Board in June 2009.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | To be determined |
|---|---|
| Major Subcontractor(s) | To be determined |
| Major Milestone | Date |
|---|---|
| Treasury Board Effective Project Approval | Spring/Summer 2012 |
| Contract Award | Summer 2012 |
| First Vehicle Delivery | 2013 |
| Expected Project Closure | 2019 |
Project Outcomes
Deliver 108 CCV, with an option for up to 30 additional vehicles, for a combat ready infantry section in close combat, while operating in intimate support of Canadian Forces tanks, and an associated long-term or through-life in-service support contract. The project contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet Government Defence Expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
The beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
In FY 2010-11, the CCV project successfully completed its Solicitation of Interest and Qualification process, resulting in a list of Pre-Qualified Suppliers. FY 2010-11 saw some delays during the pre-qualification process, resulting in a need for three Solicitations of Interest and Qualification; however the release of the CCV Request for Proposal in March 2011 has the project moving forward. The project is in its definition phase and is proceeding on budget. Delivery of the first CCV is currently planned for 2013.
Industrial Benefits
The CCV contracts will include a requirement for Industrial and Regional Benefits (IRB) equal to 100% of the contract values. Direct industrial benefits targets have been established at 25% for acquisition and 40% for in-service support.
FORCE MOBILITY ENHANCEMENT
Description
The Force Mobility Enhancement (FME) project is a project to acquire Armoured Engineer Vehicles (AEV), Armoured Recovery Vehicles (ARVs), to support the acquired AEVs and Tactical Mobility Implements (TMI) in support of Canada's Leopard 2 Main Battle Tank (MBT). The project is part of the Family of Land Combat Vehicles (FLCV) project and has been broken down into two phases.
In Phase 1, FME will acquire AEVs and ARVs. Both platforms will support the Leopard 2 MBT until 2035. In addition, they will support all current armoured vehicle fleets and future fleets, including those in the FLCV project.
In Phase 2, FME will acquire TMIs for the Leopard 2 MBT to include mine rollers, mine ploughs, and dozer blades. TMIs provide a key capability for the Leopard 2-based force as the current Leopard 2 MBT does not have an in service TMI capability.
Project Phase
Definition: The FME project entered the Definition Phase with the approval of TB on June 18, 2009.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | To be determined |
|---|---|
| Major Subcontractor(s) | To be determined |
| Major Milestone | Date |
|---|---|
| Identification Phase Approval - Identification Phase | September 2008 |
| Senior Project Advisory Committee Approval | November 2008 |
| Preliminary Project Approval - Definition Phase | June 2009 |
| Request for Proposal - Phase 1 Released | October 2010 |
| Request for Proposal - Phase 2 Released | June 2011 |
| Revised Preliminary Project Approval (Phase 1) | October 2011 |
| Contract Award - Phase 1 | November 2011 |
| Effective Project Approval (Phase 2) | February 2012 |
| Contract Award - Phase 2 | March 2012 |
| Initial Operational Capability - Phase 2 | December 2013 |
| Initial Operational Capability - Phase 1 | April 2014 |
| Full Operational Capability | 2015 |
| Project Close-Out | 2017 |
Project Outcomes
Deliver up to 18 Leopard 2 based Armoured Engineer Vehicles (AEV), up to 4 Leopard 2 based Armoured Recovery Vehicles (ARV) and Tactical Mobility Implements (TMI) to install onto the AEVs or ARVs, such as mine rollers, mine ploughs and dozer blades. The FME project will provide crucial support to the Leopard 2 tanks, LAV III, and future fleets, such as the Close Combat Vehicle and the Tactical Armoured Patrol Vehicle. Once delivered and declared at full operational capability will contribute towards achieving the Canada First Defence Strategy objectives as well as the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
The beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
On June 18, 2009, TB approved $11.3M in Definition funds, allowing the Definition Phase to begin.
Phase 1. A Letter of Interest (LOI) for Phase 1 was released on 17 July 2009 and closed 28 August 2009. The release of a draft Request for Proposal (RFP) for the acquisition of AEVs (Phase 1) closed on 25 June 2010. The final RFP for Phase 1 was on the MERX from 5 October 2010 to 18 March 2011. Two extensions were granted (18 February 2011 and 18 March 2011) due to industries inability to meet Defence's timelines. Both bidders were found non-compliant and debriefed on 17 May 2011.
Phase 2. Agreements were reached with Defence Research Development Canada in Suffield (DRDC Suffield) for the upgrade of the existing Leopard 1 Mine Roller and Prairie Agriculture Machinery Institute (PAMI) for the upgrade of the existing Leopard 1 Mine Plough in February 2010 and November 2010 respectively. An RFP was released on 6 January 2011 for the development of a Transmitter Malfunction Indicate solution for the Leopard 2 MBT and closed on 8 March 2011. Due to the Intellectual Property requirements, only the Original Equipment Manufacturer replied to the RFP, therefore an Advanced Contract Award Notice (ACAN) is expected.
Due to the accelerated progress of Phase 2, Effective Project Approval (EPA) has advanced and is now scheduled for February 2012.
Industrial Benefits
In accordance with the Senior Project Advisor Committee approval November 2008, 100% of Industrial and Regional Benefits (IRB) will be sought on Phase 1 with the exception of the government-to-government purchase of the Leopard 2 MBT chassis.
HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION
Description
The Halifax Class Modernization/Frigate Life Extension (HCM/FELEX) project is the principal component of the overall HALIFAX Class Modernization (HCM) program. The project will plan and manage HALIFAX Class mid-life refits, acquire the major elements of the new combat system, and deliver stability enhancements, degaussing improvements and a Commander Task Group capability in four ships. Major equipment acquisitions through HCM/FELEX will include a modernized Command and Control System, Multi-Link, Identification Friend or Foe Mode S/5, upgrades to the radars, new Electronic Support Measures System, upgrades to the Internal Communications system, and an upgraded Harpoon Weapon System. These acquisitions will both sustain current capability and contribute to the new littoral operations role of the HALIFAX Class.
Project Phase
Implementation: Implementation of the HCM/FELEX project will occur through three principal contracts: two Multi-Ship Contracts (MSC) for docking work periods/refits and one Combat System Integration contract to develop, procure and install the key combat system elements of the project. Project completion is expected by January 2019.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| In-Service Support Contractor (Class Design Agent) | Fleetway Incorporated, Halifax, Nova Scotia, Canada |
|---|---|
| Internal Communications System | DRS Flight Safety, Kanata, Ontario, Canada |
| Multi-Ship Contract (East) | Halifax Shipyard, Halifax, Nova Scotia, Canada |
| Multi-Ship Contract (West) | Victoria Shipyards, Victoria, British Columbia, Canada |
| Combat System Integration Contract | Lockheed Martin Canada, Montréal, Québec, Canada |
| Harpoon/Advanced Harpoon Weapons Control System (AHWCS) | The Boeing Company, St-Louis, Missouri, USA |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval | February 2005 (FELEX) February 2007 (HCM/FELEX) |
| Refit Procurement Strategy Approval by Treasury Board Secretariat | March 2007 |
| Revised Preliminary Project Approval (Part 1) | June 2007 |
| Multi-Ship Contracts (MSC) Awarded (Docking Work Periods & Refits) | March 2008 (West) March 2008 (East) |
| Effective Project Approval (EPA) (Part 2) | September 2008 |
| Combat System Integration Contract Award | November 2008 |
| Refits Begin | October 2010 |
| Full Operational Capability | January 2018 |
| Project Closure | January 2019 |
Project Outcomes
Deliver 12 modernized HALIFAX-Class ships capable to execute the roles and core missions of the Canada First Defence Strategy. The twelve ships of the HALIFAX-Class were designed for 30 year life with the combat systems designed for 15 years and requiring mid-life upgrade to enable the ships to be effective through end-of-life. Changes in technology since the HALIFAX-Class was originally designed in the 1980s, particularly networks, have fundamentally changed how warfare is conducted at sea. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcomes: Acquiring the resources to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal; and National Defence is ready to meet government defence expectations, specifically the program activity of Maritime Readiness.
The beneficiary of this capability is the Maritime Forces.
Progress Report and Explanations of Variances
In September 2008, Treasury Board granted Effective Project Approval (EPA) and Expenditure Authority for the project with full-up project value of $2,988M ($BY).
A Request for Proposal (RFP) for the Multi-Ship Contracts (docking work periods and refits) resulted in two successful bidders, Halifax Shipyard on the east coast and Washington Marine Group (Victoria Shipyards) on the west coast. Contracts were awarded to the two shipyards in March 2008. The Combat System Integration contract was awarded to Lockheed Martin Canada in November 2008.
The HCM/FELEX project is presently in its Implementation Phase and is currently within budget and on schedule to achieve Full Operational Capability by January 2018.
Industrial Benefits
Industrial and Regional Benefits (IRB) for this project are equivalent to 100% of the contracted value.
INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE
Description
Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR) is an omnibus project that received TB approval for Definition Phase activity in April 2003. The purpose of this project is to develop, deliver and evolve an integrated, interoperable, ISTAR capability that will improve the ability of commanders to visualize the operational area, manage sensors and information collection resources, and to plan and implement actions to successfully complete operational missions. The project will provide enhancements to existing capabilities and include the acquisition of new capabilities in the areas of communications, command and control and sensors.
Project Phase
Implementation delays have been experienced in formally advancing the sub-projects to the implementation phase due to the impact of numerous Unforecasted Operational Requirements (UOR) for Afghanistan that are implemented by the LF ISTAR Project Management Office (PMO). In support of UOR for OPERATION ATHENA in the 2003-04 timeframe, the project delivered equipment in the areas of Command and Control, Tactical Unmanned Aerial Vehicles (TUAV), Weapons Locating Sensors and Electronic Warfare capabilities. These early deliveries enhanced professional knowledge and contributed to project definition work. Early delivery of elements of the Unmanned Aerial Vehicles, Electronic Warfare, and Data Link Communications sub-projects continued during 2006 with the UOR for OPERATION ARCHER. As well, urgently required systems, in particular the Acoustic Weapons Locating System, the Lightweight Counter Mortar Radar system, and additional Electronic Warfare systems were fielded in 2007. Responding to the need for persistent surveillance identified by the Canadian Forces (CF) Counter Improvised Explosive Devices (IED) Task Force and confirmed in the recommendation of The Independent Panel on Canada's Future Role in Afghanistan, the LF ISTAR PMO delivered additional Small Unmanned Aerial Vehicle capability through a service contract in 2008. In early 2008, the Electronic Warfare sub-project and the Command and Control sub-project were approved for implementation. The three remaining sub-projects are seeking Effective Project Approval (EPA).
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales | US Army, USA |
|---|---|
| Light Weight Counter Mortar Radars (LCMR) - Foreign Military Sales | US Army, USA |
| Small UAV Service Contract | In Situ, Bingen, Washington, USA |
| Remote Viewing Terminal Unforecasted Operational Requirement (UOR) | L3 Communications, CSW, Salt Lake City, Utah, USA |
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval | April 2003 |
| Minister of National Defence Approval TUAV UOR Treasury Board Project Approval in Arrears UAV UOR Full Operational Capability Project Closed |
May 2003 May 2005 December 2005 June 2009 |
| Beyond Line of Sight Communication Effective Project Approval Initial Operational Capability Full Operational Capability Project Closed |
November 2005 July 2006 February 2010 March 2010 May 2010 |
| Communications & Data Link Component Treasury Board Effective Project Approval Initial Operational Capability Planned Full Operational Capability Planned close-out |
December 2006 October 2009 January 2013 March 2013 |
| Command and Control (C2) Treasury Board Effective Project Approval Initial Operational Capability Planned Full Operational Capability Planned close-out |
February 2008 October 2009 January 2013 March 2013 |
| EW Sensors Treasury Board Effective Project Approval Phase 1 Amendment 1 (AL 1) Initial Operational Capability Planned Full Operational Capability Planned close-out |
November 2005 February 2008 March 2008 January 2013 March 2013 |
| Planned In-Service Sensors Enhancement Treasury Board Effective Project Approval Planned Initial Operational Capability Planned Full Operational Capability Planned close-out |
October 2011 August 2013 January 2015 March 2015 |
| Planned Medium Range Radar Treasury Board Effective Project Approval Planned Initial Operational Capability Planned Full Operational Capability Planned close-out |
October 2011 January 2014 December 2015 March 2016 |
| WLS Acoustic Sensor Effective Project Approval Initial Operation Capability Full Operational Capability Project Closed |
November 2005 March 2008 November 2009 May 2010 |
| Family of UAV Treasury Board Effective Project Approval for UOR Family of UAV Treasury Board Effective Project Approval for AL 1 Planned Initial Operation Capability Planned Full Operational Capability Planned Project close-out |
November 2005 October 2011 June 2013 June 2015 Oct 2015 |
| Light Weight Counter Mortar Radar Effective Project Approval Initial Operation Capability Planned Full Operational Capability Planned close-out |
March 2007 March 2008 December 2012 March 2013 |
| Deliveries Complete all ISTAR sub-projects | December 2015 |
| Project Completion | December 2016 |
Project Outcomes
To deliver an integrated intelligence process with the surveillance, target acquisition, and reconnaissance assets in order to improve Commanders' Situational Awareness at all level of commands. Once all sub-projects are delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
Current estimates are that the project will be complete in 2016. This delay is associated with the maintenance of an off-the-shelf philosophy. Approvals have been received for all but three of the LF ISTAR sub-projects. Delivery of equipment actually started with UORs in Op ATHENA. Prosecuting the project with the requirement to deploy and support the capabilities directly to operations has delayed a number of the remaining capabilities. Final deliveries are scheduled out to 2015.
The Tactical Unmanned Aerial Vehicle (TUAV) project was closed in June 2009 and the Acoustic Weapon Locating System and Beyond Line Of Sight sub-projects closed in May 2010.
Industrial Benefits
The benefit to Canadian industry from the ISTAR project continues to be determined during the approval of the procurement strategy for each sub-project. Canadian industry has derived long-term benefits from many aspects of the ISTAR project through the establishment of long-term in-service support contracts.
LIGHT ARMOURED VEHICLE III UPGRADE PROJECT
Description
The recent experiences of the Canadian Forces and other nations in Afghanistan, Iraq and global operational theatres demonstrate the ongoing requirement for a highly protected, yet highly mobile Light Armoured Vehicle. The threats of mines and Improvised Explosive Devices (IEDs) have proliferated and are likely to be faced in most medium to high threat missions. Despite improvements to the protection of the vehicle, the current LAV III fleet has insufficient protection to defeat modern threats. Further, it has insufficient mobility given the increased payload requirement of the vehicle. As well, the target acquisition and fire control systems require upgrading to overcome obsolescence issues and to improve technical effectiveness and lethality. The LAV III Upgrade Project will capitalize on existing and evolving technology to upgrade a significant portion of the LAV III fleet to a standard required to protect the soldiers and equipment of the CF in current and future operations.
Project Phase
Definition. The objective of the Definition Phase is to design, produce, test and select appropriate upgrade packages to address the three main capability deficient areas of mobility, protection and lethality.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | General Dynamics Land Systems (GDLS), London, Ontario, Canada |
|---|
| Major Milestone | Date |
|---|---|
| Treasury Board Approval (DND) | June 2009 |
| Treasury Board Approval for Contract Approval (PWGSC) | April 2010 |
| Implementation Start | Fall 2011 |
| First Vehicle Delivery | 2012 |
| Last Vehicle Delivery | Late 2017 |
| Project Completed | Spring 2019 |
Project Outcomes
To deliver 550 LAV III vehicles upgraded in the areas of mobility, protection and lethality capable to execute the roles and core missions of the Canada First Defence Strategy. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
The project received Preliminary Project Approval (PPA) in June 2009 and was announced by the Minister of National Defence (MND) in July 2009. The PWGSC submission received TB approval in April 2010. The Definition Contract start date was April 2010. Definition work is progressing with upgrade packages designed and built and testing that took place in the fall 2010. Timelines have been adjusted to reflect a later than expected approval of the Definition Contract. Implementation has been delayed until fall 2011 due to challenges in negotiating a draft implementation contract with GDLS-C.
Industrial Benefits
The majority of the work in the Definition Contract will be completed in London, Ontario.
JOINT SUPPORT SHIP
Description
The Joint Support Ship (JSS) Project will recapitalize Canada's naval support vessels, modernizing and apportioning joint force capabilities in line with the strategic vision outlined in the Canada First Defence Strategy. The JSS will provide Canada with a modem, task tailored and globally deployable naval support capability. The JSS project will acquire two new support ships (with an option for a third vessel if it is affordable or if additional internal funding becomes available). In addition to being able to provide at-sea support to deployed naval task groups, they will also be capable of providing limited sealift operations and limited support to forces deployed ashore.
Project Phase
Definition.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
Prime and Major Subcontractor(s)
The prime contractor for the JSS construction will be a designated Canadian shipyard, selected as part of the National Shipbuilding Procurement Strategy (NSPS). It is expected that the shipyard will be identified to PMO JSS by late summer 2011. Identification of major sub-contractors will be determined through the Canadian shipyard's teaming arrangement for JSS construction.
The prime contractor for the project's In-Service Support Contract (ISSC) will be competed separately from the selection of the NSPS designated shipbuilder. The JSS project intends to compete the ISSC after it has entered the project implementation phase.
| Major Milestone | Date |
|---|---|
| Options Analysis | Fall 2009 |
| Revised Preliminary Project Approval | June 2010 |
| Project Definition Phase Recommenced | July 2010 |
| Contract Award Risk Reduction and Design Studies | Summer 2012 |
| Project Definition Phase Complete | Summer 2013 |
| Effective Project Approval | September 2013 |
| Award of Implementation Contract | October 2013 |
| Delivery of First Ship | Spring 2017 |
| Initial Operating Capability - First Ship | Spring 2018 |
| Delivery of Second Ship | Spring 2018 |
| Final Operating Capability | Fall 2019 |
Project Outcomes
Deliver two Joint Support Ships (JSS) along with a 30 year In-Service Support Contract by the project completion date of 2019. This project will sustain Maritime Forces capabilities and enhance Canada's ability to ensure peace and stability at Canadian, Continental, and International levels as laid out in the November 2010 Defence Priorities (for years 2011-2014) and the Canada First Defence Strategy.
Project beneficiaries:
- Canadian Shipbuilding Industry as determined by the National Shipbuilding Procurement Strategy (NSPS);
- Canadian and international communities, when humanitarian assistance is required to be rendered; and
- CF (specifically the sustainment of Maritime Forces) for both national and international operations.
Progress Report and Explanations of Variances
On 22 August 2008, the Minister of Public Works and Government Services Canada (PWGSC) announced the termination of procurement process to acquire three Joint Support Ships. After receiving and evaluating the mandatory requirements for the JSS Project from the bidders, the Crown determined that the proposals were not compliant with the basic terms of the Request for Proposals (RFP).
During the August 2008-September 2009 timeframe the Project Office conducted Options Analysis that examined the cost versus capability of various options. During late 2009 and early 2010 work continued on a revised procurement approach, centered principally on the concept of early identification and mitigation of program risk.
On 10 June 2010, the JSS project received Treasury Board expenditure authority for its Revised Definition Phase at a substantive cost estimate of $143M ($BY), including HST with an indicative project cost of $2.613B ($BY), including HST. The revised procurement strategy is based on furnishing a ship design to the National Shipbuilding Procurement Strategy designated Canadian shipyard. To maintain a competitive environment, JSS design options will include two Military off the Shelf (MOTS) and one New Design option developed in parallel. The revised procurement approach seeks, in part, to undertake assessments of existing, proven designs, as a potential means of reducing project risks and ensuring program affordability.
Since achieving a revised Preliminary Project Approval, it has been determined that the project's definition activities will exceed the original baseline estimate of 25 months. Completion of the JSS design assessments is now planned for summer 2012, pushing the Government of Canada Decision Point at the earliest to the fall 2012. This slippage has occurred to include additional design work to estimate potential MOTS design changes, to clarify Intellectual Property (IP) requirements, to support the MOTS Request for Proposal legal review process and to account for the unique nature of a design-to-cost approach. The net effect of New Design and MOTS risk reduction slippage is a shift right in the project's projected EPA date.
Project Definition schedule slippage to date is expected to be recoverable during Project Implementation, leaving the project's planned Full Operational Capability in fall 2019.
Industrial Benefits
Industrial and Regional Benefits (IRB) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.
LIGHT UTILITY VEHICLE WHEELED
Description
Light Utility Vehicles Wheeled (LUVW) are highly mobile and essential to facilitating the tactical command of combat, combat support and combat service support units, to assist in the gathering and dissemination of information and to liaise within and between field formations.
The LUVW project mandate is to replace Canadian Iltis vehicles with two separate vehicle acquisitions: Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and Armour Protection Systems, for use by field force units; and Militarized Commercial Off-the-Shelf (Mil COTS) vehicles (GM Silverado) for use primarily by the Reserve Force.
Project Phase
Close-Out.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor (Phase 1) SMP | Mercedes-Benz Canada (MBC), Toronto, Ontario, Canada |
|---|---|
| Prime Contractor (Phase 2) Mil-COTS | General Motors Defense Military Trucks, Troy, Michigan, USA |
| Major Milestone (Phase 1) SMP | Date |
|---|---|
| Award of Contract | October 2003 |
| First Full Production Delivery | February 2004 |
| Final Production Delivery | November 2006 |
| Project Close-Out | November 2010 |
| Major Milestone (Phase 2) Mil COTS | Date |
| Award of Contract | October 2002 |
| First Full Production Delivery | October 2003 |
| Final Production Delivery | December 2004 |
| Project Close-Out | November 2010 |
| Project Complete | April 2011 |
Project Outcomes
Deliver 1,159 Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and 170 Armour Protection Systems, for use by field force units; and 1,061 Militarized Commercial Off-the-Shelf (Mil COTS) vehicles (GM Silverado) for use primarily by the Reserve Force. The project contributed towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
Full Operational Capability (FOC) was reached in March 2010 and certified. The LUVW project received approval to close in October 2010. The Project Completion Report was accepted in April 2011. The project is now closed.
The project cost at completion is $296M ($budget year, net of GST).
Industrial Benefits
The Industrial and Regional Benefits (IRB) required for Phase 1 were valued at 100% of the contract value. The latest report from Industry Canada indicates that MBC has successfully fulfilled its IRB obligation under the terms and conditions of Phase 1. There are no mandated industrial benefits for the Phase 2 (Mil COTS) contract. However, all support will be generated by local commercial truck service stations providing industrial benefits to Canada. For the Initial Support Contract (ISC), there are IRB requirements valued at 75% of the contract value and Industry Canada reports that MBC is up to date and progressing on its activities. There is an IRB requirement in the current support contract in the amount of 100% of the contract value.
LIGHTWEIGHT TOWED HOWITZER
Description
The Lightweight Towed Howitzer (LWTH) project is a key facet of the land forces current indirect fire capability deficiency. Specifically, the project will field 25 M777 lightweight 155mm towed howitzers, each with a Digital Gun Management System (DGMS), and supported by improved ammunition and a modern truck. The 25 howitzers (six were delivered in a three month period ending July 2009 and the remaining were delivered in May 2011) will augment the 12 M777 howitzers currently in service. These howitzers provide a capability enhancement in terms of lethality, range, precision, mobility and digitization and support future missions and tasks likely to be assigned to the CF.
Project Phase
Implementation Phase: The LWTH project entered the Implementation Phase with the approval of the Minister of National Defence in January 2010.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and the regional agencies |
| Prime Contractor | BAE Systems, Barrow-in-Furrow, Cumbria, UK |
|---|---|
| Major Subcontractor(s) | SELEX Sensor and Airborne Systems Ltd, Edinburgh, UK |
| Major Milestone | Date |
|---|---|
| Identification Phase Approval - Identification Phase | January 2008 |
| Preliminary Project Approval (PPA)- Definition Phase | June 2008 |
| M777 Foreign Military Sale (FMS) Agreement | November 2008 |
| DGMS Contract Award | November 2009 |
| Effective Project Approval (EPA)- Implementation Phase | January 2010 |
| M777 Initial Support Contract Award | June 2010 |
| Initial Operational Capability | October 2011 |
| Final Operation Capability | December 2012 |
| Project Close-Out | March 2013 |
Project Outcomes
Deliver the following capabilities:
- 25 M777 155mm lightweight howitzers each equipped with a Gun Management System and digital radio
- 37 wheeled gun tractors (based upon the MSVS SMP) that will pull the howitzer and be equipped with an ammunition handling and storage system
- Ammunition (including propellant, projectiles and fuses)
- Integrated logistics support
- Limited infrastructure enhancements
Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
The LWTH project is achieving defined project objectives. The M777 Support Contract was awarded in June 2010. Final deliveries of the M777 howitzer and the Gun Management System components commenced in late 2010 and were nearly complete by March 2011. The LWTH project is currently running on budget and on schedule.
Industrial Benefits
The Industrial and Regional Benefits (IRB) are an integral part of the Lightweight Towed Howitzer project. For the M777 lightweight 155mm towed howitzer, the original equipment manufacturer has committed to 100% of the FMS agreement value (less the value of the US government furnished equipment) through a combination of direct and indirect IRBs. For the digital gun management system, the original equipment manufacturer has committed to 100% of the contract value in direct and indirect IRBs.
In view of the low value of the M777 Initial Support contract and the high proportion of parts and labour, the initial support contract will not have IRBs. However, as the support concept matures, IRBs will be considered.
MARITIME HELICOPTER PROJECT
Description
The purpose of the Maritime Helicopter Project (MHP) is to replace the CH124 Sea King with a fleet of 28 new fully equipped Maritime Helicopters bundled with a long-term in-service support contract and the modification of the HALIFAX class ships to accommodate the new Maritime Helicopters. This replacement will address the operational deficiencies of the current CH124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multi-purpose shipborne Maritime Helicopters for operations well into the 21st century.
Project Phase
Implementation: In November 2010, the project marked the six-year milestone in the Implementation Phase. The project focus is now shifting from design and engineering to flight test and preparations for operational testing and evaluation, followed by delivery of the compliant Maritime Helicopters starting in 2012.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | Sikorsky International Operations Incorporated, Stratford, Connecticut, USA |
|---|---|
| Major Subcontractor(s) | General Dynamics Canada, Ottawa, Ontario L-3 MAS, Mirabel, Québec, Canada |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval | June 2003 |
| Invitations for Bids Posted on MERX | December 2003 |
| Effective Project Approval | November 2004 |
| Contract Award | November 2004 |
| First Delivery (Compliant Maritime Helicopters) | 2012 |
| Final Delivery | 2013 |
| Project Close-Out | 2014 |
Project Outcomes
Deliver 28 fully equipped Maritime Helicopters to support operations and deployable with the Halifax Class Frigates capable to execute the roles and core missions of the Canada First Defence Strategy. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Maritime Forces.
Progress Report and Explanations of Variances
In December 2008, following discussions to minimize delays in the planned delivery of the integrated Maritime Helicopter, the Government and Sikorsky agreed to a new schedule for the delivery of six interim helicopters starting in November 2010, with delivery of fully-compliant helicopters commencing in June 2012. A second contract amendment in June 2010 modified the requirements for the interim Maritime Helicopter to allow delivery with an earlier version of mission system software while still enabling the start of initial training and operational testing.
Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on the 12 Halifax Class Frigates have progressed well and are on schedule. The first test flight of the Maritime Helicopter occurred in November 2008. The second Maritime Helicopter, the first aircraft with complete Mission System Hardware installed, underwent its first test flight in July 2009. Defence crews, as part of the Combined Test Force with Sikorsky, began aircraft testing in July 2009. The first Ship Helicopter Operation Limitations - Sea Trial and the second Sea Trial are now complete. The project is currently running within its authorized budget.
Industrial Benefits
The Industrial and Regional Benefits (IRB) are equivalent to 107% of the contract value for the capital acquisition and more than 80% of the contract value for the in-service support. Further, Sikorsky has agreed to an additional $80M in IRB in the June 2010 contract amendment for the in-service support contract.
MATERIEL ACQUISITION AND SUPPORT INFORMATION SYSTEM
Description
The mission of the Materiel Acquisition and Support Information System (MASIS) project is to provide the Department of National Defence (DND) with an integrated materiel acquisition and support information system that enables the cost-effective optimization of weapon/equipment system availability throughout the life cycle. The scope of MASIS includes all end-to-end information requirements within Defence related to the materiel acquisition and support functions, which are comprised of systems engineering, integrated logistics support (ILS), equipment configuration, technical data management, asset management, maintenance management, project management, performance management, operational support, business management, decision support analysis and contract management.
Project Phase
Implementation. To date, the project has completed Phases 1 to 4 and implementation of Phase 5 is currently underway where emphasis is on the delivery of the MASIS solution to the Army and Air Force. Project completion is expected for 2013.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | N/A |
| Prime Contractor | IBM Canada, Ottawa, Ontario, Canada |
|---|---|
| Major Subcontractor(s) | SAP Canada, Ottawa, Ontario, Canada Pennant, Ottawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval - Expenditure Authority for Phase 1 | June 1998 |
| Contract Awarded for Prime Systems Integrator | December 1998 |
| MASIS system - Go Live Phase 1 (202 Work Depot Montréal) | September 1999 |
|
Expenditure Authority for Phases 2 and 3:
|
June 2000 |
|
Amended Expenditure Authority for Phase 4:
|
December 2003 |
| Amended Expenditure Authority for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army. | June 2007 |
| Project Close-Out | December 2013 |
Project Outcomes
Deliver an end-to-end information system to enable materiel acquisition and support processes to the Navy, Army and Air Force. This system has improved visibility and efficiency of weapon system and equipment support. MASIS has also enabled Defence's vision of business renewal. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Joint and Common Support Equipment Acquisition and Disposal. A revision in project scope has been approved to bring the management of supply system inventory into the same SAP-based ERP.
Progress Report and Explanations of Variances
In June 2007, the MASIS project received Treasury Board approval for Phase 5 in the amount of $170M. Phase 5 activities are on budget and planned completion of this project is within the 2013 timeframe.
Industrial and Regional Benefits
All Industrial and Regional Benefits (IRB) are attributed to Ontario since all project expenditures occur in Ontario.
MEDIUM SUPPORT VEHICLE SYSTEM PROJECT
Description
The Medium Support Vehicle System (MSVS) Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. The MSVS project will deliver the following mix of vehicles:
- Medium-sized Standard Military Pattern (SMP) vehicles:
- Up to 1,500 vehicles, with options for an additional 650;
- Up to 150 integrated armour protection systems, with options for an additional 150, and
- Up to 300 companion Load Handling System trailers, with options for an additional 240.
- Medium-sized Militarized Commercial Off-the-Shelf (MilCOTS) vehicles:
- 1,300 commercial vehicles with militarized components.
- Special Equipment Vehicle (SEV) Kits:
- 868 special equipment vehicle kits, with options for an additional 110.
Project Phase
Definition for SMP and SEV Kitting, and Implementation for MilCOTS and SEV Baseline Shelters.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor - MiLCOTS | Navistar Defence LLC, Warrenville, Illinois, USA |
|---|---|
| Prime Contractor - SEV Baseline Shelters | DEW Engineering and Development ULC, Ottawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval | June 2006 |
| Mil COTS - Invitation for Bids Posted on MERX | November 2007 |
| Mil COTS - Revised Preliminary Project Approval | December 2008 |
| Mil COTS - Contract Award | January 2009 |
| Mil COTS - First Delivery | June 2009 |
| Mil COTS - Delivery Complete | March 2011 |
| SEV Baseline Shelter - Invitation for Bids Posted on MERX | May 2008 |
| SEV Baseline Shelter - Revised Preliminary Project Approval | June 2009 |
| SEV Baseline Shelter - Contract Award | July 2009 |
| SEV Baseline Shelter - First Delivery | Fall 2011 |
| SEV Baseline Shelter - Delivery Complete | Spring 2014 |
| SEV Kits - Invitation for Bids Posted on MERX | Fall 2011 |
| SEV Kits - Revised Preliminary Project Approval | Spring 2012 |
| SEV Kits - Contract Award | Spring 2012 |
| SEV Kits - First Delivery | Spring 2013 |
| SEV Kits - Delivery Complete | Fall 2015 |
| SMP - Invitation for Bids Posted on MERX | Fall 2011 |
| SMP - Effective Project Approval | Early 2013 |
| SMP - Contract Award | Early 2013 |
| SMP - First Delivery | Spring 2014 |
| SMP - Delivery Complete | Fall 2015 |
| Project Close-Out | 2016 |
Project Outcomes
Deliver a replacement fleet of medium-weight trucks capable to execute the roles and core missions of the Canada First Defence Strategy. At the conclusion of the project, the Canadian Forces will have acquired two fleets of medium-weight vehicles (MilCOTS and SMP) as well as new SEVs. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
In June 2009, TB expenditure authority was obtained for SEV Baseline Shelters for $161.4M ($BY) plus GST and a Revised PPA was granted for an indicative full-up cost of $1.244B ($BY) plus GST for all components of the MSVS project.
- MilCOTS - An Agreement in Principle was reached in August 2008 with the single responsive bidder. Contract approval was received in December 2008. The contract was awarded in January 2009 and the last vehicle was accepted in March 2011.
- SEV Baseline Shelters - An Agreement in Principle was reached in April 2009 with the single responsive bidder. Revised PPA and contract approval was received in June 2009. The contract was awarded in July 2009.
- SMP - Portions of a draft Request for Proposal (RFP) were posted on the project website in October 2009 and again in November 2010 for industry comment. The final RFP is planned for release in fall 2011.
- SEV Kitting - A draft SEV Kitting RFP was posted on the project website in late December 2010 for industry comment. The complete draft RFP was released in June 2010 for industry comment. The final RFP is planned for release in fall 2011.
MEDIUM-TO-HEAVY LIFT HELICOPTER
Description
Over the last decade, the ability to move personnel and equipment by air has become a vital and growing capability requirement for the Canadian Forces (CF) in fulfilling a wide range of roles. CF operational experience, particularly in current operational theatres, has highlighted the urgent need for medium-to-heavy lift helicopters (MHLH) to support land forces in a threat environment by quickly, efficiently and safely moving large numbers of personnel and heavy equipment from forward deployed bases, thus reducing their vulnerability to attack. Both at home and overseas, MHLH will provide the Government with a wider range of military options for addressing threats and emergencies beyond the CF's current helicopter fleets.
The MHLH project will deliver 15 Chinook CH-47F helicopters to support land-based domestic and international operations and to support land staff training on the road to high readiness, as well as integrated logistic support and other related support elements.
Project Phase
Implementation.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | The Boeing Company, Philadelphia, Pennsylvania, USA |
|---|---|
| Prime Contractor | CAE, St-Laurent, Quebec, Canada |
| Major Milestone | Date |
|---|---|
| Synopsis Sheet Preliminary Project Approval | June 2006 |
| Advanced Contract Award Notice Posted on MERX | July 2006 |
| Effective Project Approval and Contract Award | June 2009 |
| First Aircraft | June 2012 |
| First fully mission ready aircraft | June 2013 |
| Initial Operational Capability | June 2014 |
| Full Operational Capability (FOC)* | June 2017 |
| Project Close-Out | June 2018 |
*Resource allocations (pilots) have caused FOC to be extended by two years.
Project Outcomes
Deliver 15 Chinook CH-47F helicopters capable to execute the roles and core missions of the Canada First Defence Strategy. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Aerospace Forces.
Progress Report and Explanations of Variances
In June 2009, TB granted Effective Project Approval with a substantive cost of $2.312B. A contract was awarded to The Boeing Company in June 2009 at a value of $1.156B (USD). In March 2010, a contract amendment to the existing CAE contract for Operational Training was issued to include MHLH requirements. The MHLH project is currently on budget and in scope. The project is to be completed by June 2018.
Industrial Benefits
The procurement strategy for MHLH will provide Industrial and Regional Benefits (IRB) equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. Canadian companies will have access to Boeing's global value chain which will allow them to do long-term, high-value work on Boeing's international fleets of aircraft through global partnerships. This new business being generated in Canada means that Canadian firms will hold an enviable place in the global aerospace industry.
MILITARY AUTOMATED AIR TRAFFIC SYSTEM PROJECT
Description
Defence initiated a national air traffic system project to automate air traffic services. Defence established the Military Automated Air Traffic System (MAATS) Project to ensure that military air operations continue to function effectively. The project directly supports the Defence objective of conducting military air traffic control operations.
The MAATS project will provide the essential infrastructure, systems, and automated capabilities to efficiently interface Air Traffic Management Systems (ATMS) and accurately exchange data between applications. The project will deliver a stable, sustainable, and operational ATMS while providing as much integration as possible with NAV Canada's Canadian Automated Air Traffic System (CAATS). New equipment will be installed where system interfaces are not currently available. All existing Defence radar systems, meteorological and aids sensors are retained and interfaced to the MAATS. In 2006, CAATS was no longer in a position to support military operations and DND selected the option to progress the project with an in-house solution. Since 2006, the Aerospace and Telecommunications Engineering Support Squadron (ATESS) has been mandated to design, develop and implement the complete Defence ATMS solutions for MAATS.
Project Phase
Project Close Out.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | Raytheon Canada Limited, Richmond, British Columbia, Canada NavCanada, Ottawa, Ontario, Canada |
|---|---|
| Major Subcontractor(s) | Hewlett Packard Canada Ltd, Ottawa, Ontario, Canada CVDS, Montréal, Québec, Canada Frequentis Canada Ltd, Ottawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Treasury Board Effective Project Approval | July 1993 |
| Contract Award | January 1994 |
| Preliminary Design Review | September 1997 May 2000 |
| Critical Design Review | February 2001 |
| Factory Acceptance Test (Closure) | January 2002 |
| Initial Delivery (Montréal) | December 2003 |
| Contract Complete (Last Payment) | December 2004 |
| Approval received to disengage concurrent development with NAV CANADA project and pursue sustainable minimum military requirement | September 2006 |
| Begin Software Development on Phoenix Systems | October 2006 |
| Complete Phoenix NAMS II Development | October 2007 |
| Initial Operational Capability - First Wing Operational with NAMS II Equipment | October 2007 |
| Full Operational Capability (FOC) - All Wings with delivered Equipment | June 2009 |
| Begin project Close-Out | July 2009 |
| MAATS Project Close-Out Senior Review Board (SRB) | January 2010 |
| Project Management Office (PMO) Close-Out | March 2010 |
| Project Complete | September 2011 |
Project Outcomes
Radar and Environmental Data Display Systems (REDDS) were delivered to all seven Canadian Forces Wings by June 2009. The systems provide radar processing data, navigational aids data, environmental data and flight data entry. All systems are part of a closed network and are supported by Aerospace and Telecommunications Engineering Support Squadron (ATESS) in Trenton. The REDDS network also provides full connectivity to Nav Canada through their Aeronautical Fixed Telecommunication Network (AFTN). Full Operational capability was declared June 2009 and contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Aerospace Forces.
Progress Report and Explanations of Variances
TB granted EPA with project costs of $179.2M.
In June 2006, the MAATS project objectives were declared unachievable with CAATS. Given a number of alternative options, the MAATS' PMO recommended to cease MAATS/CAATS development, and continue the project with the implementation of an "in-house" solution coined Phoenix. With the support of Defence, the Programme Management Board (PMB) concurred with the PMO's recommendation in March 2007. MAATS' PMO was directed to de-link the project from NAV Canada's Canadian Automated Air Traffic System (CAATS); concentrate on the re-vitalization and integration of Air Traffic Controller (ATC) information sources at each of the seven Wings (Comox, Cold Lake, Moose Jaw, Bagotville, Trenton, Greenwood, and Goose Bay); keep military Instrument Flight Rules (IFR) operations at the Wings vice at two Military Terminal Control Centres; and pursue the development and fielding of the Phoenix solution.
Since approvals were received in July 2007, the Phoenix solution is well on its way to upgrading the current Air Traffic Management System capability inclusive of the following sub-systems: the Radar Processor, the Navigational Aids and Meteorological Sub-System (NAMS), the Air Movement Statistics Package and the Flight Data System. Phoenix is based on the proven Radar Processing Display System II (RPDS II) which was certified for Operational Airworthiness. Phoenix is built on standard commercial Off-the-Shelf hardware and open source software, thus keeping technical risk low. Installation of Phoenix equipment at 8 Wing Trenton was completed and Provisional Operational Airworthiness Clearance was granted in October 2007, ahead of schedule. Actual close-out activities, including a project completion report to TBS was completed in June 2010.
All sites are now synchronized with same technology and interfaces and the Phoenix environment has been running since 2007 without any downtime or major failure. The Vancouver 2010 Olympics shifted ATESS personnel priorities, delaying the revision of the last delivery called Flight Data Entry Terminal.
Industrial and Regional Benefits
Industrial and Regional Benefits (IRB) to be applied across all regions of Canada.
NEXT GENERATION FIGHTER CAPABILITY
Description
The objective of the Next Generation Fighter Capability (NGFC) project is to acquire 65 next generation fighters to replace the CF-188 fleet on its retirement so as to maintain a manned fighter capability necessary for the defence of Canada and North America, and for CF collective expeditionary operations.
Project Phase
Options Analysis. A Project Management Office was stood up in October 2010 and work has been initiated to advance a Treasury Board submission seeking the required expenditure authorities for definition stage activities.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | Joint Strike Fighter Program Office (JPO), Washington, DC, USA |
|---|---|
| Major Subcontractor | Lockheed Martin Aeronautics Company, Fort Worth, Texas, USA |
| Major Milestone | Date |
|---|---|
| Synopsis Sheet (Identification) | January 2010 |
| Synopsis Sheet (Effective Project Approval) | To be determined |
| Treasury Board Expenditure Authority | To be determined |
| First Participant Procurement Request | January 2012 |
| Delivery First Aircraft | December 2016 |
| Initial Operational Capability | May 2020 |
| Full Operational Capability | September 2025 |
| Project Close-Out | December 2027 |
Project Outcomes
The Next Generation Fighter Capability (NGFC) project will deliver 65 F-35 aircraft capable to execute the roles and core missions of the Canada First Defence Strategy. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Aerospace Forces.
Progress Report and Explanations of Variances
In July 2010, the Government of Canada announced its decision to acquire 65 F-35 Lightning II fighter aircraft to replace the CF-188 fleet at an estimated acquisition cost of $9B. The process for acquisition is detailed in the Joint Strike Fighter (JSF) Production, Sustainment and Follow-On Development (PSFD) Memorandum of Understanding (MoU). A Project Management Office was stood up in October 2010 and work has been initiated to advance a Treasury Board submission seeking the required expenditure authorities for definition stage activities.
Industrial and Regional Benefits
By signing the PSFD MoU, the nine partner countries involved agreed to an industrial participation model for the JSF program. As a result, Canada's defence industry has a unique opportunity to be a part of the JSF global participation model for the JSF program. Canada's defence industry has the opportunity to be a part of the JSF global supply chain, which means Canadian companies would not only work in support of the 65 aircraft that Canada is buying, but for the more than 3,000 F-35s that will be built. To date, Canadian companies have received more than $350M in contracts for the development and production of the F-35 and early estimates show that opportunities available to Canada's aerospace industry could total $12B.
PROTECTED MILITARY SATELLITE COMMUNICATIONS
Description
The Department and the Canadian Forces are being provided with global communications that are secure, guaranteed and directly interoperable with our Allies by the Protected Military Satellite Communications (PMSC) project. The project will deliver a Canadian Advanced Extremely High Frequency (AEHF) Military Satellite Communications System for near-worldwide assured, secure, survivable, and jam-resistant communications to the CF for the command and control of deployed Canadian commanders and forces, as well as interoperability with our principal ally, the United States.
Project Phase
The PMSC project is being implemented in two phases with project completion expected for winter 2017.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | United States Department of Defense (DoD) |
|---|---|
| Major Subcontractor(s) |
Raytheon, Waltham, Massachusetts, USA Rockwell Collins Inc., Cedar Rapids, Iowa, USA |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval | August 1999 |
| Effective Project Approval | November 2003 |
| Initial Terminal Delivery | Fall 2012 |
| Initial Satellite Delivery | Winter 2012-13 |
| PMSC System Full Operational Capability | Fall 2019 |
| Project Complete | Winter 2019-20 |
Project Outcomes
Deliver a communications capability to support deployed users whether they are joint, naval, land, or air forces. This communications capability supports both the command and control by the National Command Authority of deployed operations and the command and control of in-theatre operations. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Joint and Common Command and Control Equipment Acquisition and Disposal.
Progress Report and Explanations of Variances
The PMSC project is being implemented in two phases.
In the completed Phase 1, procurement of guaranteed access to the US Department of Defense (DoD) Advance Extremely High Frequency (AEHF) satellite constellation was approved by TB through granting Preliminary Project Approval in August 1999. TB also granted approval for the Department of National Defence (DND) to enter into a Military Satellite Communications (MILSATCOM) Memorandum of Understanding (MOU) with the US DoD. This would ensure DND access to the US DoD Advance Extremely High Frequency (AEHF) satellite constellation. This MOU was signed in November 1999. In addition, approval was granted to define the terminal segment.
Phase 2 has been underway since November 2003, when TB granted Effective Project Approval (EPA) for the procurement and installation, where necessary, of the associated AEHF satellite terminals.
The total substantive cost for this project (both phases) is estimated at $592M ($BY) including GST/HST. The project is on budget.
However, due to slippages in the US DoD overall satellite launch schedule and since the satellite constellation is the heart of the AEHF MILSATCOM and PMSC Systems, DND has had no option other than to accept the schedule setbacks and slip DND milestones, such as the PMSC System Full Operational Capability (FOC) by several years. The FOC has been further delayed by Naval Fleet Plan for refit.
Industrial Benefits
Under Phase 1, the US DoD has committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations will be permitted to bid on project work. In Phase 2, the Senior Procurement Advisory Committee (SPAC) endorsed that terminal acquisition and support will be procured through Foreign Military Sales (FMS) with installation done through Defence-managed contracts. Industrial and Regional Benefits (IRB) will be sought by Industry Canada at 100% of the contract value.
SUBMARINE CAPABILITY LIFE EXTENSION
Description
The Submarine Capability Life Extension (SCLE) project replaced the Oberon class submarine fleet with four existing British Upholder class (renamed Canadian Victoria class) submarines. The project will ensure that Canada preserves its submarine capability within the existing capital budget. The project supports Canada's ability to conduct surveillance and control of its territory, airspace and maritime areas of jurisdiction, as well as Canada's ability to participate in bilateral and multilateral operations.
Project Phase
Implementation: The project has delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews. Canadianization of three platforms and 13 of 17 associated projects have been completed. The last platform (HMCS CHICOUTIMI) will complete Canadianization during her Extended Docking Work Period (EDWP) which officially began in July 2010. The remaining associated projects will be completed by project closure in March 2013.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | The Government of the United Kingdom, (UK) of Great Britain and Northern Ireland, Ministry of Defence, UK |
|---|---|
| Major Subcontractor(s) | British Aerospace Engineering (BAE) Marine Systems (formerly Vickers Shipbuilding and Engineering Limited (VSEL)/Marconi Marine) Cumbria, UK |
| Major Milestone | Date |
|---|---|
| Treasury Board Approval | June 1998 |
| Main Contract Award | July 1998 |
| Initial Support Contract Award | July 1998 |
| Initial Operational Capability (IOC) | April 2006 |
| Full Operational Capability (FOC) | Early 2012 |
| Project Close-Out | March 2013 |
Project Outcomes
The SCLE Project has acquired a complete submarine capability to replace the previous OBERON class submarines; this replacement capability includes:
- four functional Victoria class submarines, acquired from the United Kingdom Ministry of Defence, with up-to-date "safe to dive" certificates;
- four crew trainers; including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer;
- a technical data package consisting of manuals, design data, trials reports and maintenance and configuration records;
- initial spares including on-board and depot spares, special tools and other support equipment; and
- initial conversion training of four Canadian submarine crews and the fleet support personnel necessary to maintain and operate the Victoria Class.
This project contributes to achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Maritime Forces.
Progress Report and Explanations of Variances
EPA was granted to the SCLE project in June 1998 at an estimated total cost of $812M ($BY) net of GST. The expenditure ceiling was increased by $84.8M by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. The SCLE project is within budget.
Canada has accepted all four Upholder submarines from the United Kingdom. The operational status of each of these vessels is summarized below:
- Her Majesty's Canadian Submarine (HMCS) Victoria is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Breton. She undocked in April 2011 and is scheduled to complete this activity in 2011.
- HMCS Windsor is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Scott. She is scheduled to undock winter 2012 and complete this activity in 2012.
- HMCS Corner Brook is operational and is participating in various exercises and patrols. She will remain operational until mid-2011.
- HMCS Chicoutimi was handed over to Canada in October 2004 and while en-route to Canada had an electrical incident at sea that resulted in a fire and was returned to Canada via sealift. Although some of the repairs have been completed, a decision was taken to delay the completion of the repair and Canadianization until her EDWP. HMCS Chicoutimi was signed over to the Canadian Submarine Management Group (In- Service Support Contractor) in June 2009. Her EDWP commenced in July 2010 and is scheduled to complete in 2012.
Based on progress to date and current information, all performance objectives of this contract will be met within the allocated budget.
Industrial Benefits
This project will provide an estimated $200M in direct and indirect Industrial and Regional Benefits (IRB). This includes Canadian modifications to the submarines and the relocation of the simulators and trainers to Canada. A further $100M in IRBs have taken the form of waivers to provide industrial offsets in the United Kingdom for Canadian companies bidding on Defence contracts.
TACTICAL ARMOURED PATROL VEHICLE
Description
The Tactical Armoured patrol Vehicle (TAPV) Project is one of the four projects of the Future Land Combat Vehicles System announced in July 2009.
The TAPV Project will deliver a wheeled combat vehicle to the Land Forces that will fulfill a wide variety of roles on the battlefield, including but not limited to reconnaissance and surveillance, security, command and control, cargo and armoured personnel carrier. It will have a high degree of tactical mobility and a very high degree of crew survivability.
The project scope includes an estimated initial purchase of 500 TAPV and an optional purchase of up to 100 additional vehicles, plus associated long-term in-service support.
Project Phase
Definition: The TAPV Project entered the Definition Phase with the approval of Treasury Board (TB) in June 2009. Expenditure and contracting authority for the Definition Phase were also delegated to Defence and Public Works and Government Services Canada (PWGSC) respectively for the TAPV and its associated in-service support.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | Not identified at this time |
|---|---|
| Major Subcontractor(s) | Not identified at this time |
| Major Milestone | Date |
|---|---|
| Identification Phase approved | March 2008 |
| Project Charter approved | May 2009 |
| Preliminary Project Risk Assessment endorsed | June 2009 |
| Definition Phase approved | June 2009 |
| Statement of Operational Requirements approved | January 2010 |
| Implementation Phase approved | May 2012 (Planned) |
| Contract awarded | June 2012 (Planned) |
| Initial Operational Capability Delivery certified | 2014 (Planned) |
| Full Operational Capability Delivery certified | 2016 (Planned) |
| Project Completion Report Approved | 2017 (Planned) |
Project Outcomes
The TAPV project expects to achieve the following outcomes:
- An initial purchase of 500 TAPV;
- An optional purchase for up to 100 additional vehicles;
- Procurement and delivery of essential Integrated Logistics Support (ILS) to sustain the fleet the first two (2) years;
- Acquisition of an operational stock and two (2) years of training stocks of ammunition; and
- Implementation of a long-term (25-year) through life In-service Support Contract to be funded through Army National Procurement funds.
This project contributes to achieving the Canada First Defence Strategy objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
In June 2009, TB granted Preliminary Project Approval. Further, TB granted Expenditure Authority for Definition at a substantive cost of $37.5M ($BY). The TAPV Project is within budget.
In November 2008, the Defence Senior Project Advisory Committee approved a procurement strategy for a phased approach within a competitive process. Consequently, Public Works and Government Services Canada released the Letter of Interest/Price and Availability in July 2009 to obtain cost and schedule information to support the Effective Project Approval (EPA) submission. A Statement of Interest and Qualification was released in March 2010 and closed in June 2010 with the seven pre-qualified bidders announced in July 2010. A draft Request for Proposal (RFP) was issued in November 2010 and the final RFP was issued in March 2011 with a closing date of August 2011. RFP evaluation and testing of contender vehicles is planned for autumn 2011 with EPA forecast for May 2012.
Industrial Benefits
This procurement will provide Industrial and Regional Benefits (IRB) for the capital acquisition of the TAPV and its associated in-service support. Direct industrial and regional benefits requirements have been established at 25% for the Acquisition Contract and at 40% for the Support Contract.
TANK REPLACEMENT PROJECT
Description
The purpose of the Tank Replacement Project (TRP) is to replace Canada's aging Leopard 1 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The Tank Replacement Project is divided into two phases. Phase 1 consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT), two Armoured Recovery Vehicles (ARVs) and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBT from the Netherlands Government. Phase 2 consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 tanks and armoured recovery vehicles into service with the CF as well as the Integrated Logistics System (ILS) inherent to the variants.
Project Phase
Implementation: The project received Preliminary Project Approval (PPA) (inclusive of EPA for Phase 1) from Treasury Board in March 2007 and Effective Project Approval (EPA) in June 2009 for Phase 2. The project is capped at $650 million.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and its regional agencies |
| Phase 1 | |
|---|---|
| Prime Contractor for ARV upgrades | Rheinmetall Land System (RLS), Germany |
| Prime Contractor for MBT upgrades | Krauss Maffei Wegmann (KMW), Germany |
| Prime Contractor for loaned tanks | German Government |
| Prime Contractor for tank purchase | Netherlands Government |
| Phase 2 | |
| Prime Contractor for 20 Leopard 2 A4M (operational) tanks | Krauss Maffei Wegmann (KMW), Germany |
| Prime Contractor for 20 Leopard 2 A6M tanks for return to German Government | Krauss Maffei Wegmann (KMW), Germany |
| Prime Contractor for 42 Leopard 2 A4 training tanks | Rheinmetall Canada Inc (RhC), Canada |
| Prime Contractor for 8 Leopard 2 ARVs | To be determined |
|
Prime Contractors for ILS related contracts:
|
To be determined To be determined To be determined To be determined To be Determined |
| Major Milestone | Date |
|---|---|
| Memorandum to Cabinet | March 2007 |
| Treasury Board Preliminary Project Approval (PPA) | March 2007 |
| Phase 1 - Loan Agreement with German MoD | May 2007 |
| Phase 1 - Contract to KMW for upgrades to Loaned tanks | May 2007 |
| Phase 1 - Contract to RLS for upgrades to Loaned tanks | May 2007 |
| Initial Operating Capability (IOC) | August 2007 |
| Phase 1 - Acquisition of tanks from Dutch Government | December 2007 |
| Phase 1 - PPA amendment approved by Treasury Board | June 2008 |
| Memorandum to Cabinet Amendment | April 2009 |
| Treasury Board Effective Project Approval (EPA) with conditions | June 2009 |
| Phase 2 - Contract to KMW for 20 Leopard 2 A4M Operational tanks (repair, overhaul and upgrade) | June 2009 |
| Phase 1 - Contract to KMW for replacement in kind tank return to German MoD - 20 x Leopard 2A6 (NLD) tanks | July 2009 |
| Phase 2 - Contract for repair and overhaul of 42 x Leopard 2A4 CAN (Training) tanks | August 2010 |
| Full Operational Capability (FOC) - (Phase II) | January 2014 |
| Project Close-Out | January 2015 |
Project Outcomes
Deliver the following capacities:
- 20 Leopard 2 A6M - Operational Mobile Battle Tanks (MBTs) for expeditionary tasks. L55 Gun with additional mine protection and slat armour systems;
- 20 Leopard 2 A4M - Operational MBTs for expeditionary tasks. L44 Gun with mine protection, slat armour and all around add-on armour systems;
- 42 Leopard 2 A4 - Mobile Battle Tanks primarily used for training. L44 Gun with basic protection;
- 8 Leopard 2 Armoured Recovery Vehicle (ARV). Four ARVs will be geared for expeditionary tasks and four for domestic support; and
- Appropriate ammunition, parts and special maintenance tools and training.
This project contributes to achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
The primary beneficiary of this capability is the Land Forces.
Progress Report and Explanations of Variances
Treasury Board approved the PPA Amendment in June 2008 allowing the replacement in kind concept for the loaned tanks. Canada will retain the loaned German Leopard 2A6 M. In return, the purchased Dutch Leopard 2 A6 will be converted to a German standard and returned to German Ministry of Defence.
Effective Project Approval was approved by Treasury Board in June 2009 supporting the Phase 2 procurement strategy including development of a work capacity in Canada. Development of this capacity resulted in the change of the Final Operational Capability in January 2014. In addition, cost continues to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities.
Recently, TRP received authority to use $21.4M of contingency in order to support the Munition Supply Program (MSP) mandatory for the establishment of new ammunition capacity in Canada.
The project continues to move forward aggressively while ensuring effective support to the equipment challenges in Afghanistan and the establishment of critical support contracts.
Industrial Benefits
No Industrial and Regional Benefits (IRB) were required for Phase 1.
For Phase 2, IRBs are a requirement. Bidders are required to submit acceptable IRB proposals with their bids. The successful contractors will be required to undertake IRB activities in Canada valued at 100% of the contract value. IRB proposals will be evaluated by representatives of Industry Canada and the Regional Development Agencies. Contractors will be required to submit annual IRB reports detailing their achievements, which Industry Canada will review and verify.
WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION
Description
The Wheeled Light Armoured Vehicle - Life Extension (WLAV-LE) has addressed deficiencies in command, combat support and combat service support capabilities to ensure that the current fleets of wheeled armoured vehicles are capable of operating in the current and anticipated threat environment. The WLAV-LE improved the mobility, protection and capability of the in-service Bison fleets (primarily composed of Infantry Section Carriers (ISC)) through a life extension and conversion to command and support variants dedicated to the LAV III and LAV-Recce (Coyote) fleets.
Project Phase
Closeout - 100 % of the Bison fleet has been delivered to in-service. The project is just finalizing the publications and finishing procurement of spares.
| Lead Department | Department of National Defence (DND) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments | Industry Canada and Atlantic Canada Opportunities Agency |
| Prime Contractor (6 variants) | DEW Engineering and Development ULC (DEW), Ottawa, Ontario, Canada |
|---|---|
| Major Subcontractor (1 variant) | General Dynamics Land Systems - Canada (GDLS-C), London, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval | September 1996 |
| Treasury Board Effective Project Approval | November 1998 |
| Initial Contract Award with DEW | January 2003 |
| Treasury Board Revised Effective Project Approval | September 2006 |
| New Contract Award with DEW | May 2007 |
| Contract Award with GDLS-C | October 2007 |
| Implementation - Initial Operational Capability | March 2009 |
| Implementation - Full Operational Capability | November 2010 |
| Project Completed | September 2011 |
Project Outcomes
Deliver the following capabilities:
- Conversion of the entire Bison fleet of 199 vehicles to 32 Ambulances, 16 Electronic Warfare, four Nuclear, Biological and Chemical Defence, 32 Maintenance and Recovery Vehicle, 32 Mobile Repair Team, 82 Command, Control, Communications and Intelligence vehicles;
- Provision of updated add-on armour packages for operations stock as a result of changes made to existing vehicles, to provide the crew and mission essential equipment with a basic level of protection; and
- Sufficient Integrated Logistics Support to maintain the fleet for the first two years of operations.
The WLAV-LE project contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.
Progress Report and Explanations of Variances
Initially, TB approved the WLAV-LE with an estimated cost of $230.387 million ($BY). In September 2006, TB granted a reduced expenditure authority to WLAV-LE due to the cancellation of the Armoured Vehicle General Purpose (AVGP) component of the project. This change resulted from the decision taken by Defence in March 2005 to retire the AVGP fleet. The total cost estimate is now $170.3 million ($BY). Project Close-out has been delayed by issues with spares procurement and finalization of publications. The WLAV-LE is currently running under budget and is expected to be completed by September 2011.
Industrial Benefits
There is no Industrial and Regional Benefits (IRB) strategy associated with this project.
The WLAV-LE is excluded from the Agreement on Internal Trade under article 508 - Exceptional Circumstances. The exceptional circumstance is related to the economic hardship facing the local economy from the closure of CF Base Chatham in New Brunswick. A portion of the work is to be carried out in the Chatham area (now defined as the Miramichi Region). It is a provision of the contract with DEW Engineering and Development ULC that the work is to be done in the Chatham Area of the province of New Brunswick to the maximum extent possible and where cost effective to the Crown.