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2010-11
Departmental Performance Report

National Defence

Supplementary Information (Tables)

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Table of Contents

• Sources of Respendable and Non-respendable Revenue
• Status Report on Projects operating with specific Treasury Board Approval
• Status Report on Major Crown Projects
• Details on Transfer Payments Programs
• Green Procurement
• Response to Parliamentary Committees and External Audits
• Internal Audits and Evaluations

Sources of Respendable and Non-Respendable Revenue

For those departments and agencies that generate revenue, the following tables identify the sources of respendable and non-respendable revenue at the program activity level. Respendable revenue consists of all non-tax revenue that will be credited to the department’s Vote. Non-respendable revenue consists of all non-tax revenue that will be credited to the Consolidated Revenue Fund.

Respendable Revenue ($Thousands)
Program Activity1	Actual 2008-09	Actual 2009-10		2010-11
				Main Estimates	Planned Revenue	Total Authorities	Actual
Resources Are Acquired to Meet Government Defence Expectations
Defence Science & Technology
Recoveries from Members	0	0	0		0	0	0
Recoveries from OGDs	108	271	129		129	129	55
Recoveries from Other Governments/UN/NATO	0	0	0		0	0	265
Other Recoveries	3,049	1,826	3,407		3,407	3,407	2,062
Subtotal	3,157	2,097	3,536		3,536	3,536	2,383
Recruiting of Personnel and Initial Training
Recoveries from Members	1,976	2,450	1,578		1,578	1,578	1,329
Recoveries from OGDs	53	91	4		4	4	29
Recoveries from Other Governments/UN/NATO2	54,469	42,669	0		0	0	1,066
Other Recoveries	3,603	2,933	91		91	91	373
Subtotal	60,102	48,144	1,672		1,672	1,672	2,797
Equipment Acquisition and Disposal
Recoveries from Members	0	0	0		0	0	0
Recoveries from OGDs	0	6	0		0	0	0
Recoveries from Other Governments/UN/NATO	0	0	0		0	0	0
Other Recoveries	0	1	0		0	0	0
Subtotal	0	7	0		0	0	0
Real Property and Informatics Infrastructure Acquisition and Disposal
Recoveries from Members	0	0	0		0	0	0
Recoveries from OGDs	5	5	10		10	10	5
Recoveries from Other Governments/UN/NATO	0	0	0		0	0	0
Other Recoveries	115	113	105		105	105	98
Subtotal	120	119	115		115	115	103
National Defence is Ready to Meet Government Defence Expectations
Maritime Readiness
Recoveries from Members	4,899	4,969	5,082		5,082	5,082	5,863
Recoveries from OGDs	2,426	2,521	2,338		2,338	2,338	2,262
Recoveries from Other Governments/UN/NATO	2,818	1,293	811		811	811	1,248
Other Recoveries	16,157	5,956	11,231		11,231	11,231	4,875
Subtotal	26,301	14,739	19,462		19,462	19,462	14,247
Land Readiness
Recoveries from Members	22,770	27,193	22,164		22,164	22,164	25,203
Recoveries from OGDs	569	547	504		504	504	570
Recoveries from Other Governments/UN/NATO	0	0	0		0	0	0
Other Recoveries	4,161	4,158	7,124		7,124	7,124	3,823
Subtotal	27,500	31,898	29,792		29,792	29,792	29,597
Aerospace Readiness
Recoveries from Members	4,933	4,707	5,489		5,489	5,489	4,918
Recoveries from OGDs	672	593	659		659	659	401
Recoveries from Other Governments/UN/NATO2	2,619	1,200	54,326		54,326	54,326	2,514
Other Recoveries	7,989	6,463	8,357		8,357	8,357	9,253
Subtotal	16,214	12,963	68,832		68,832	68,832	17,086
Joint and Common Readiness
Recoveries from Members	6,613	6,627	7,567		7,567	7,567	6,565
Recoveries from OGDs	2,790	3,209	1,732		1,732	1,732	3,205
Recoveries from Other Governments/UN/NATO	45	6	105		105	105	2
Other Recoveries	2,698	3,466	2,693		2,693	2,693	2,710
Subtotal	12,146	13,308	12,097		12,097	12,097	12,483
Defence Operations Improve Peace Stability and Security Wherever Deployed
Situational Awareness
Recoveries from Members	0	0	0		0	0	0
Recoveries from OGDs3	377	336	1,200		1,200	1,200	335
Recoveries from Other Governments/UN/NATO	0	0	0		0	0	0
Other Recoveries4	439	385	68		68	68	379
Subtotal	816	721	1,268		1,268	1,268	714
Canadian Peace Stability and Security
Recoveries from Members	0	0	0		0	0	0
Recoveries from OGDs	79	72	0		0	0	17
Recoveries from Other Governments/UN/NATO	0	79	0		0	0	30
Other Recoveries	126	247	223		223	223	99
Subtotal	205	397	223		223	223	146
Continental Peace Stability and Security
Recoveries from Members	345	457	0		0	0	497
Recoveries from OGDs	34	39	0		0	0	10
Recoveries from Other Governments/UN/NATO	15,709	16,069	10,000		10,000	10,000	61
Other Recoveries	124	142	7,590		7,590	7,590	138
Subtotal	16,212	16,707	17,590		17,590	17,590	706
International Peace Stability and Security
Recoveries from Members	2,369	6,531	3,306		3,306	3,306	7,631
Recoveries from OGDs	9,267	8,729	460		460	460	7,886
Recoveries from Other Governments/UN/NATO2	168,704	169,081	12,176		12,176	12,176	168,671
Other Recoveries	5,061	3,952	490		490	490	3,152
Subtotal	185,401	188,293	16,431		16,431	16,431	187,341
Care and Support to the Canadian Forces and Contribution to Canadian Society
Defence Team Personnel Support
Recoveries from Members	88,042	94,491	93,433		93,433	93,433	96,922
Recoveries from OGDs	107	109	1,350		1,350	1,350	108
Recoveries from Other Governments/UN/NATO	0	1,732	0		0	0	0
Other Recoveries	5,251	5,696	5,459		5,459	5,459	7,485
Subtotal	93,400	102,028	100,243		100,243	100,243	104,515
Canadian Identity
Recoveries from Members	28	46	31		31	31	45
Recoveries from OGDs	13	11	1		1	1	12
Recoveries from Other Governments/UN/NATO	0	0	0		0	0	0
Other Recoveries	76	118	152		152	152	87
Subtotal	117	176	184		184	184	144
Environmental Protection and Stewardship
Recoveries from Members	0	1	0		0	0	0
Recoveries from OGDs	21	21	20		20	20	19
Recoveries from Other Governments/UN/NATO	0	0	0		0	0	0
Other Recoveries	55	77	93		93	93	57
Subtotal	76	98	113		113	113	76
Non-Security Support
Recoveries from Members	0	0	0		0	0	0
Recoveries from OGDs	0	468	0		0	0	266
Recoveries from Other Governments/UN/NATO	0	940	0		0	0	1,191
Other Recoveries	4	25	0		0	0	43
Subtotal	4	1,432	0		0	0	1,500
Internal Services
Internal Services
Recoveries from Members	10,373	10,551	10,475		10,475	10,475	10,921
Recoveries from OGDs	828	926	11,135		11,135	11,135	741
Recoveries from Other Governments/UN/NATO	22,146	2,628	141,535		141,535	141,535	2,358
Other Recoveries	26,373	28,974	5,076		5,076	27,434	27,110
Subtotal	59,720	43,078	168,221		168,221	190,579	41,130
Total Respendable Revenue5	501,489	476,205	439,779		439,779	462,138	414,968

Non-Respendable Revenue ($ Thousands)
Program Activity1	Actual 2008-09	Actual 2009-10	2010-11
			Main Estimates	Planned Revenue	Total Authorities	Actual
Defence Science & Technology	1,068	3,481	N/A	500	500	2,118
Recruiting of Personnel and Initial Training	43	44	N/A	0	0	286
Equipment Acquisition and Disposal	4,269	2,287	N/A	68	68	1,975
Real Property and Informatics Infrastructure Acquisition and Disposal	5	2	N/A	0	0	333
Maritime Readiness	1,043	1,875	N/A	7	7	2,492
Land Readiness	2,140	2,989	N/A	748	748	1,995
Aerospace Readiness	2,769	943	N/A	672	672	1,650
Joint and Common Readiness	1,820	1,564	N/A	42	42	1,467
Situational Awareness	932	605	N/A	23	23	495
Canadian Peace Stability and Security	11	49	N/A	11	11	193
Continental Peace Stability and Security	120	27	N/A	0	0	96
International Peace Stability and Security	9,127	751	N/A	3	3	930
Defence Team Personnel Support	0	432	N/A	0	0	379
Canadian Identity	27	28	N/A	1	1	149
Environmental Protection and Stewardship	14	63	N/A	0	0	116
Non-Security Support	1	0	N/A	0	0	98
Internal Services	75,416	67,061	N/A	4,951	4,951	83,355
Total Non-Respendable Revenue	98,807	82,199	N/A	7,026	7,026	98,128
Total Respendable Revenue and Non-respendable Revenue	600,296	558,405	439,779	446,806	469,164	513,096

Status Report on Projects Operating with Specific Treasury Board Approval

1. Employee Benefit Plans (EBP) and Contingency are not included in project costs
   
   
2. Projects listed have been identified as either:
   
   
   1. those in which the estimated expenditure exceeds the delegated approval authority granted to DND by the Treasury Board ($30 million with substantive cost estimates), or
      
      
   2. those in which the risk is particularly high, regardless of the estimated amounts.

Project Number	Project Title and Phase	Phase	Total Estimated Project Cost ($000)	Current Estimated Total Cost ($000)	Previous Expenditures to end 2009-2010 ($000)	Planned Spending 2010-2011 ($000)	Actual Spending 2010-2011 ($000)	Variance ($000)
Program Activity: EQUIPMENT AND ACQUISITION DISPOSAL
58	Wheeled Light Armoured Vehicle Life Extension	I	142,281	11,607	125,605	16,900	9,094	7,806
84	Army GPS Equipment Replacement	I	40,333	50,210	38,492	1,878	485	1,393
86	Operational Flight Program	I	111,520	111,520	72,106	14,080	11,467	2,613
113	Advanced Distributed Combat Training System	I	187,742	187,742	167,113	10,181	2,369	7,811
180	CF-18 Multi-purpose Display Group Project	I	61,959	61,619	61,619	0	0	0
224	Defence Information Services Broker	I	40,400	40,173	38,268	2,000	5	1,995
273	CF-18 Advanced Multi-role Infrared Sensor	I	186,060	186,060	132,271	18,732	15,413	3,319
276	Intelligence, Surveillance, Target Acquisition & Reconnaissance	D/I	101,887	101,077	62,918	14,247	5,155	9,092
317	Aurora Electro-optical System Replacement	I	49,162	49,162	48,895	252	72	180
405	Canadian Advanced Synthetic Environment (CASE)	I	58,047	58,065	17,327	14,979	10,902	4,077
410	Aurora - Flight Deck Simulator	I	40,862	40,862	39,383	689	80	609
423	Aurora - Electronic Support Measures Replacements	I	194,457	194,457	146,959	23,925	7,441	16,484
428	Aurora - Imaging Radar Acquisition	I	280,018	280,018	223,249	42,575	23,585	18,990
436	Close Combat Vehicles	D	1,808,356	31,235	4,746	13,577	6,497	7,080
438	Joint Space Support Project	I	38,562	30,936	4,726	4,436	1,155	3,281
451	Primrose Lake Evaluation Range TSPI System	I	38,190	38,265	33,375	3,312	2,394	919
536	Aurora – Operator Mission Simulator	I	44,633	47,226	25,892	10,518	8,279	2,239
547	Area Surveillance / Secondary Surveillance Radar (ASR/SSR) Project	I	84,017	72,056	1,027	822	600	222
548	Aerodrome Precision Approach and Landing Systems	I	47,366	47,366	2,753	10,113	7,340	2,773
562	Close Area Suppression Weapon (CASW)	I	120,086	118,207	104,111	34,948	10,298	24,650
583	CF18 - Engineering Change Proposal 583	I	854,309	854,308	849,454	557	236	322
627	CF18 Defensive Electronic Warfare Suite	I	177,981	177,981	64,231	44,373	41,782	2,591
646	Omnibus Night Vision Capability	I	27,651	33,113	11,833	15,733	7,473	8,260
675	Chemical Agent Sensor (CAS Project)	I	79,985	80,264	17,668	21,487	9,697	11,790
743	Tactical Control Radar Modernization	I	39,019	61,174	3,720	50	2	48
846	V-Class Submarines-Bow Sonar System Upgrade	I	68,830	65,655	3,621	22,181	11,744	10,437
877	Aircraft Arrestor Systems (AAS) Modernization	D	29,772	29,772	344	9,814	10,214	(400)
965	Aurora Structural Life Extension Project	I	260,209	260,209	34,148	79,199	61,777	17,422
1007	Medium to Heavy Lift Helicopters	I	2,070,699	2,312,903	300,326	418,684	256,328	162,356
1012	LF ISTAR - Datalink Communications	I	92,461	88,063	69,743	21,047	8,817	12,230
1013	LFISTAR - Electronic Warfare (EW) Transformation	I	64,261	71,551	33,217	37,812	21,431	16,381
1014	LF ISTAR - C2	I	33,564	33,565	9,557	15,275	4,705	10,570
1017	Lightweight 155mm Towed Howitzer (M777 LWTH) (including accrural portion of project)	I	0	112,429	112,180	0	1,805	(1,805)
1036	Airlift Capability Project (Tactical)	I	2,925,282	3,068,209	1,105,868	871,034	657,701	213,334
1111	CF Explosive Ordanance Disposal Team Equipment	I	61,824	67,950	9,911	43,251	19,879	23,372
1112	Enhanced Counter - Improvised Explosive Devices Project	I	67,193	77,963	47,012	19,346	20,738	(1,392)
1117	Airlift Capability Project (Strategic)	I	1,403,118	1,404,490	1,300,416	67,673	58,759	8,914
1203	Armoured Heavy Support Vehicle	I	154,683	157,350	149,501	5,487	7,363	(1,876)
1204	Light Armoured Vechicle Remote Weapon Systerm	I	49,161	45,840	42,270	9,146	1,400	7,746
1216	Artic/Offshore Patrol Ship	D	2,560,140	3,073,600	17,731	44,603	8,995	35,609
1241	Main Battle Tank	I	595,504	650,000	152,937	170,569	27,400	143,169
1247	Light Armoured Vehicle III Upgrade	D	1,187,116	55,174	239,921	49,568	34,077	15,491
1430	Tactical Armoured Patrol Vehicle	D	1,074,324	37,500	2,351	10,094	4,683	5,411
1436	Low Level Air Defence Modernization	I	36,546	0	35,566	0	621	(621)
1494	Force Mobility Enhancement Project	D	335,351	11,466	1,290	9,378	4,881	4,496
1686	CF18 - Advanced Air to Air Weapon - Short Range	I	36,614	36,684	25,599	2,624	4,000	(1,377)
2320	Military Automated Air Traffic System	I	156,386	156,378	156,122	181	256	(75)
2346	Medium Support Vehicle System	D	1,114,734	1,244,293	114,489	225,443	179,101	46,342
2349	Light Utility Vehicle Wheeled	I	294,136	0	293,136	0	430	(430)
2371	Advanced Navigation and Precision Approach	I	100,955	98,802	81,694	8,313	1,575	6,738
2398	Joint Command System (Air) - JCS (Air)	I	48,216	8,712	31,118	7,458	1,839	5,619
2400	Defence Integrated Human Resource System	I	98,129	0	97,800	1,027	964	63
2469	Canadian Forces Command System I (CFCS)	I	67,531	0	0	0	0	0
2517	Canadian Forces Utility Tactical Transport Helicopters	I	1,084,252	1,087,451	1,083,441	50	2,600	(2,550)
2536	Role Three Health Support	I	42,453	44,057	41,211	1,242	75	1,167
2556	Canadian Forces Point Biological Agent Detection, Sampling and Identification Project	I	43,271	1,604	34,496	8,195	8,600	(405)
2573	Maritime Environmental Protection Project	I	55,507	55,508	49,284	1,927	840	1,087
2586	Halifax Class Modernization/Frigate Life Extension(FELEX)	I	2,353,370	2,758,179	383,799	263,645	274,682	(11,037)
2637	Armoured Personnel Carriers	I	2,297,472	2,270,912	2,200,657	40,815	29,281	11,534
2640	Evolved Sea Sparrow Missiles	I	506,544	500,341	492,560	7,016	6,467	549
2659	CF18 Advanced Precision Guided Munition	I	55,244	55,243	15,110	9,119	13,560	(4,441)
2673	Joint Support Ship	D	131,889	134,602	53,364	39,642	10,876	28,766
2678	Canadian Search and Rescue Helicopter	I	774,546	784,272	765,186	6,981	2,173	4,808
2680	Maritime Helicopters	I	3,118,046	3,174,085	1,464,797	599,493	142,714	456,779
2731	Armoured Personnel Carriers Life Extension	I	354,503	354,528	355,382	961	986	(25)
2754	CF-18 Advanced Medium Range Air-to-Air Missile	I	100,250	100,250	86,688	4,854	1,237	3,617
2796	YAG 300 Training Vessel Replacement	I	90,962	92,152	89,779	664	529	135
3667	Surveillance of Space	I	81,807	77,997	35,984	19,494	13,131	6,363
5832	CF18 - Engineering Change Proposal - Phase 2	I	423,281	444,445	301,351	33,354	29,720	3,634
2272 Ph5	Materiel Acquisition and Support Information System Phase V	I	152,300	301,330	94,965	28,000	0	28,000
TOTAL: EQUIPMENT AND ACQUISITION DISPOSAL			31,507,318	28,370,217	14,313,663	3,535,024	2,130,775	1,404,248
Program Activity: MARITIME READINESS
2549	Canadian Submarine Capability Life Extension	I	898,286	866,999	832,779	19,000	3,957	15,043
2664	Advanced  Electro-optic Sensor	I	199,507	188,421	137,480	25,481	0	25,481
	TOTAL: MARITIME READINESS		1,097,793	1,055,420	970,259	44,481	3,957	40,524
Program Activity: LAND READINESS
XXXX	Clothe The Soldier Omnibus Project	I	214,729	74,007	135,369	40,022	19,669	20,353
TOTAL: LAND READINESS			214,729	74,007	135,369	40,022	19,669	20,353
Program Activity: JOINT AND COMMON READINESS
439	Allied Vaccine Development Project	I	34,127	36,400	24,120	1,650	1,542	108
2800	Canadian Forces Health Information System	I	531,891	20,103	0	68,789	8,133	60,656
TOTAL: JOINT AND COMMON READINESS			566,018	56,503	24,120	70,439	9,675	60,764
Program Activity: SITUATIONAL AWARENESS
625	Polar Epsilon Joint Space-Based Wide Area Surveillance and Support	I	43,364	25,409	23,966	19,905	17,720	2,185
2803	Protected Military Satellite Communication	I	531,891	535,264	350,901	68,789	11,211	57,578
Various	Canadian Cryptographic Modernization Project	D/I	107,730	110,626	68,020	14,089	12,184	1,905
TOTAL: SITUATIONAL AWARENESS			682,985	671,299	442,887	102,783	41,115	61,668
Program Activity: INTERNATIONAL PEACE STABILITY AND SECURITY
1070	Armoured Patrol Vehicle	I	122,865	0	118,046	4,834	3,973	861
1199	Expedient Route Opening Capability	I	155,442	183,663	141,325	23,224	18,079	5,145
1242	Improvised Explosive Device and Mine Protection Kits	I	41,668	41,535	34,286	6,287	2,838	3,449
1243	Impact Seating System (ISS)	I	17,650	25,489	16,567	1,568	8,332	(6,764)
1259	Interoperable Griffon Reconnaissance Escort Surveillance System	I	56,652	58,188	38,582	13,750	11,024	2,726
1350	Lightweight Towed Howitzer	I	179,981	224,896	13,307	38,000	80,225	(42,225)
1380	NOCTUA	I	165,053	55,652	69,985	52,246	37,358	14,888
1454	Interim Medium Lift Capability	I	203,084	199,298	182,630	16,952	16,029	923
TOTAL: INTERNATIONAL PEACE STABILITY AND SECURITY			942,394	788,721	614,728	156,861	177,859	(20,998)
TOTAL: PROGRAM ACTIVITIES			33,913,444	29,960,747	15,530,767	3,905,129	2,379,093	1,526,035

Status Report on Major Crown/Transformational Projects

For Fiscal Year 2009-2010

Table of Contents

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

AIRLIFT CAPABILITY PROJECT - STRATEGIC

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

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

Progress Report and Explanations of Variances

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

Industrial Benefits

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

AIRLIFT CAPABILITY PROJECT - TACTICAL

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

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

Progress Report and Explanations of Variances

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

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

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

Industrial Benefits

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

ARCTIC/OFFSHORE PATROL SHIP

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

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

 

Project Outcomes

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

The beneficiary of this capability is the Maritime Forces. 

Progress Report and Explanations of Variances

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

Industrial Benefits

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

ARMOURED PERSONNEL CARRIERS

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The beneficiary of this capability is the Land Forces. 

Progress Report and Explanations of Variances

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

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

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

Industrial Benefits

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

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM

Description

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

The CCMP omnibus project includes the following sub-projects:                                               

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

Project Phase

Implementation for some sub-projects, Definition for others. 

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

Progress Report and Explanations of Variances

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

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

Industrial Benefits

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

CANADIAN FORCES SUPPLY SYSTEM UPGRADE

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

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

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

The beneficiary of this capability is the Canadian Forces.

Progress Report and Explanations of Variances

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

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

Industrial Benefits

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

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

CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER PROJECT

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

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

Progress Report and Explanations of Variances

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

Industrial Benefits

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

CANADIAN SEARCH AND RESCUE HELICOPTER PROJECT

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

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

Progress Report and Explanations of Variances

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

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

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

Industrial Benefits

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

CANADIAN SURFACE COMBATANT PROJECT

Description

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

Project Phase

Option Analysis.

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The beneficiary of this capability is the Maritime Forces.

Progress Report and Explanations of Variances

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

Industrial Benefits

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

CLOSE COMBAT VEHICLE

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

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

Industrial Benefits

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

FORCE MOBILITY ENHANCEMENT

Description

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

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

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

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

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

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

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

Industrial Benefits

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

HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The beneficiary of this capability is the Maritime Forces.

Progress Report and Explanations of Variances

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

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

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

Industrial Benefits

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

INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

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

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

Industrial Benefits

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

LIGHT ARMOURED VEHICLE III UPGRADE PROJECT

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

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

Industrial Benefits

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

JOINT SUPPORT SHIP

Description

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

Project Phase

Definition.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

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

Major Milestones

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

 

Project Outcomes

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

Project beneficiaries:

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

Progress Report and Explanations of Variances

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

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

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

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

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

Industrial Benefits

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

LIGHT UTILITY VEHICLE WHEELED

Description

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

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

Project Phase

Close-Out.

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

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

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

Industrial Benefits

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

LIGHTWEIGHT TOWED HOWITZER

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

Deliver the following capabilities:

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

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

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

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

Industrial Benefits

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

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

MARITIME HELICOPTER PROJECT

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The primary beneficiary of this capability is the Maritime Forces.

Progress Report and Explanations of Variances

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

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

Industrial Benefits

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

MATERIEL ACQUISITION AND SUPPORT INFORMATION SYSTEM

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

Progress Report and Explanations of Variances

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

Industrial and Regional Benefits

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

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT

Description

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

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

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

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

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

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

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

MEDIUM-TO-HEAVY LIFT HELICOPTER

Description

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

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

Project Phase

Implementation.

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

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

Project Outcomes

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

The primary beneficiary of this capability is the Aerospace Forces.

Progress Report and Explanations of Variances

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

Industrial Benefits

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

MILITARY AUTOMATED AIR TRAFFIC SYSTEM PROJECT

Description

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

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

Project Phase

Project Close Out.

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The primary beneficiary of this capability is the Aerospace Forces.

Progress Report and Explanations of Variances

TB granted EPA with project costs of $179.2M.

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

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

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

Industrial and Regional Benefits

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

NEXT GENERATION FIGHTER CAPABILITY

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

The primary beneficiary of this capability is the Aerospace Forces.

Progress Report and Explanations of Variances

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

Industrial and Regional Benefits

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

PROTECTED MILITARY SATELLITE COMMUNICATIONS

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

Progress Report and Explanations of Variances

The PMSC project is being implemented in two phases.

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

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

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

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

Industrial Benefits

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

SUBMARINE CAPABILITY LIFE EXTENSION

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

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

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

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

The primary beneficiary of this capability is the Maritime Forces.

Progress Report and Explanations of Variances

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

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

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

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

Industrial Benefits

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

TACTICAL ARMOURED PATROL VEHICLE

Description

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

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

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

The TAPV project expects to achieve the following outcomes:

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

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

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

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

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

Industrial Benefits

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

TANK REPLACEMENT PROJECT

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

 

Project Outcomes

Deliver the following capacities:

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

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

The primary beneficiary of this capability is the Land Forces.

Progress Report and Explanations of Variances

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

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

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

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

Industrial Benefits

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

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

WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

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

Project Outcomes

Deliver the following capabilities:

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

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

Progress Report and Explanations of Variances

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

Industrial Benefits

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

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

Details on Transfer Payment Programs (TPP)

Table of Contents

• Payments under the Supplementary Retirements Benefits Act (SRBA)
• Contributions in support of the Capital Assistance Program (CAP)
• Contributions in Support of the Military Training and Cooperation Program (MTCP)
• Contribution Program in Support of the Remediation of the Former Mid-Canada Line Radar Sites in Ontario
• NATO Military Budget (NATO Programs)
• NATO Security Investment Program (NATO Programs)
• NATO Airborne Early Warning and Control Programme Management Agency (NATO Major Activities)
• NATO Alliance Ground Surveillance (AGS) System (NATO Major Activities)
• Contribution Program in support of the Search and Rescue New Initiatives Fund (SAR NIF)

Payments under the Supplementary Retirements Benefits Act

Name of Transfer Payment Program: Payments under the Supplementary Retirements Benefits Act (SRBA) [Statutory Payments]

Start date: 1970

End date: On-going

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

Strategic Outcome: Care and Support to the Canadian Forces and Contribution to Canadian Society

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

Program Activity: Defence Team Personnel Support ($ millions)
	Spending 2008-09	Spending 2009-10	Planned Spending 2010-11	Total Authorities 2010-11	Actual Spending 2010-11	Variance(s)
Total Contributions	$5.459	$5.006	$5.459	$4.493	$4.493	$0.966
Total Program Activity	$6.742	$6.169	$6.701	$5.511	$5.500	$1.201

Comment(s) on Variance(s): As the DSPCA/SRBA population ages and becomes smaller, the funding requirement decreases.

Audits completed or planned: None.

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

Contributions in support of the Capital Assistance Program

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

Start date: 1983-84

End date: Fiscal Year (FY) 2010-11 (renewal in progress for 2011-12 and onward)

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

Strategic Outcome: Resources are Acquired to Meet Government Defence Expectations

Results Achieved: Out of the planned projects, one which was approved and implemented was the construction of a new entrance/intersection on Highway 2 to give access to a new parking lot on the Trenton base. This project met the following objectives:

• entered into collaborative arrangements with Provinces, Territories and Municipalities and/or their agencies (through contribution agreements);
• maintained/improved infrastructure while correcting identified deficiencies;
• reduced operating and capital costs;
• improved cost-effective provision of infrastructure and community-based services; and
• enhanced quality of life for military personnel and their dependants.

Program Activity: Real Property and Informatics Infrastructure Acquisition and Disposal ($ millions)
	Spending 2008-09	Spending 2009-10	Planned Spending 2010-11	Total Authorities 2010-11	Actual Spending 2010-11	Variance(s)
Total Contributions	$1.800	$0.400	$13.175	$4.335	$0.307	$12.868
Total Program Activity	$1.800	$0.400	$13.175	$4.335	$0.307	$12.868

Comment(s) on Variance(s): The variance is explained by the fact that there are several projects still awaiting approval at the municipal level.

Audits completed or planned: None.

Evaluation completed or planned: The next planned evaluation will be in FY 2014-15 and will address the relevance and performance (effectiveness, efficiency and economy) of the contribution program.

Contributions in Support of the Military Training and Cooperation Program

Name of Transfer Payment Program: Contributions in Support of the Military Training and Cooperation Program (MTCP) [Voted Payments]

Start date: 1992-93

End date: Ongoing

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

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed

Results Achieved:  The Military Training and Cooperation Program (MTCP) continues to support and promote Canadian interests and values through the provision of military training assistance to developing, non-NATO countries and organizations. Training over 1,000 foreign officers from 61 states, MTCP successfully supported the Department of National Defence’s (DND) defence diplomacy agenda for the fiscal year (FY) 2010-11. The Program was successful in enhancing the ability of appropriate persons to communicate in English and/or French, improving understanding of democratic control over the armed forces, enhancing the ability for appropriate persons to function as efficient staff officers within a strategic/operational environment, and in developing capacity of member countries to undertake peace support operations.  It also demonstrated “Cost-Effectiveness” in enhancing peace support operations interoperability among Canada’s partners to lessen the operational burden on Canada. Finally, MTCP demonstrated relevance to DND and the Government of Canada, to other nations and to participants by expanding and reinforcing Canadian bilateral defence relations, promoting Canadian democratic principles, the rule of law, international stability and the protection of human rights in the international arena, achieving influence in areas of strategic interest to Canada and by contributing to international peace and security. MTCP remains committed to further developing language, peace operations and staff training programmes in Canada, and continues to successfully develop peace support capacity among partner countries by expanding its in-theatre initiatives.

Program Activity: International Peace, Stability and Security ($ millions)
	Spending 2008-09	Spending 2009-10	Planned Spending 2010-11	Total Authorities 2010-11	Actual Spending 2010-11	Variance(s)
Total Contributions	$9.224	$9.396	$0.000	$11.400	$10.843	$(10.843)
Total Program Activity	$178.093	$206.117	$200.837	$251.049	$244.018	$(43.181)

Comment(s) on Variance(s): At the time of preparation of the FY 2010-11 Report on Plans and Priorities, the renewal of the Terms and Conditions of the program had not received TB approval before the required deadlines and thus was not factored in the 2010-11 Planned Spending.

Audits completed or planned: None.

Evaluation completed or planned:  The next planned evaluation will be in FY 2014-15 and will address the relevance and performance (effectiveness, efficiency and economy) of the contribution program.

Contribution Program in Support of the Remediation of the Former Mid-Canada Line Radar Sites in Ontario

Name of Transfer Payment Program: Contribution Program in Support of the Remediation of the Former Mid-Canada Line Radar Sites in Ontario [Voted Payments]

Start date: 2008-09

End date: 2014-15

Description: This contribution program supports the remediation of certain contaminated sites on non-federal lands, to the extent the contamination was a direct result of federal government activities or operations, or where the contamination resulted from the Government of Canada’s national security efforts. To qualify, a site must also pose a human health and/or environmental risk, and be assessed as a National Classification System Class 1 (action required) or Class 2 (action likely required) site. The Government of Canada’s contribution will be used to fund specific eligible activities associated with the remediation of 11 of the 17 former Mid-Canada Line Radar Sites in Ontario.

Strategic Outcome: Care and Support to the Canadian Forces and Contribution to Canadian Society

Results Achieved: To date, work at two sites has been completed. In July 2010, work began at site 500, the largest of the 11 sites. Major mobilization of the work for clean up was completed in March 2011.

Program Activity: Environmental Protection and Stewardship ($ millions)
	Spending 2008-09	Spending 2009-10	Planned Spending 2010-11	Total Authorities 2010-11	Actual Spending 2010-11	Variance(s)
Total Contributions	$0.000	$9.248	$6.595	$3.457	$3.457	$3.138
Total Program Activity	$1.500	$10.748	$8.095	$4.957	$4.957	$3.138

Comment(s) on Variance(s): During fiscal year (FY) 2010-11, DND re-profiled to future years its original planned spending based on progress of actual work activities. The re-profiled values were more reflective of actual expenditures for the year. 

Audits completed or planned: None.

Evaluation completed or planned: A mid-term review, if required, is expected to be completed during FY 2011-12. An evaluation is planned in FY 2013-14 and will address the relevance and performance (effectiveness, efficiency and economy) of the contribution program.

NATO Military Budget (NATO Programs)

Name of Transfer Payment Program: NATO Military Budget (NATO Programs) [Voted Payments]

Start date: 1949

End date: Ongoing

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

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed

Results Achieved: Canada’s financial contributions to NATO continued to ensure Canadian security and provided leverage and influence within the multi-national body. These contributions also provided access to military capabilities, which Canada itself does not possess.

The contributions further served to help protect and strengthen the freedom and security of all NATO Members by political and military means in accordance with the North Atlantic Treaty and the principles of the United Nations Charter.

The benefits of Canada’s investment in NATO included access to strategic information, intelligence, capabilities, interoperability with allied forces and an equal voice in high-level decisions affecting Euro-Atlantic security and stability.

Program Activity: International Peace, Stability and Security ($ millions)
	Spending 2008-09	Spending 2009-10	Planned Spending 2010-11	Total Authorities 2010-11	Actual Spending 2010-11	Variance(s)
Total Contributions	$74.649	$73.278	$126.861	$138.771	$138.771	$(11.910)
Total Program Activity	$178.093	$206.117	$200.837	$251.049	$244.018	$(43.181)

Comment(s) on Variance(s): The Fiscal Year (FY) 2010-11 increase is mainly attributed to the fact that the last call for contribution to the operations and maintenance (O&M) budget was higher than planned. This should result in lower calls for contribution in FY 2011-12.

Note: Since FY 2010-11, the Military budget includes the O&M budget of the NATO Airborne Early Warning and Control Programme (NAEW&C), thus reflecting the alignment of the NATO Terms and Conditions approved in October 2009.

Audits completed or planned: At the end of the year, the annual financial statements were presented for verification by the International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is composed of government officials from national audit institution in member countries.  The IBAN conducts financial audits on all accounts commonly-funded by NATO members. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Evaluation completed or planned: An evaluation of Defence’s NATO Contribution Program will be completed in FY 2011-12 by Chief Review Services.

NATO Security Investment Program (NATO Programs)

Name of Transfer Payment Program: NATO Security Investment Program (NATO Programs) [Voted Payments]

Start date: 1949

End date: Ongoing

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

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed

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

The benefits of Canada’s investment in NATO include access to strategic information, intelligence, capabilities, interoperability with allied forces and an equal voice in high-level decisions affecting Euro-Atlantic security and stability. It also includes a potential return on some of Canada’s eligible infrastructure projects in support of NATO operations.

Program Activity: International Peace, Stability and Security ($ millions)
	Spending 2008-09	Spending 2009-10	Planned Spending 2010-11	Total Authorities 2010-11	Actual Spending 2010-11	Variance(s)
Total Contributions	$48.948	$57.780	$48.490	$78.851	$78.851	$(30.361)
Total Program Activity	$178.093	$206.117	$200.837	$251.049	$244.018	$(43.181)

Comment(s) on Variance(s): The NSIP variance of $30M is mainly due to increasing requirements for NATO Alliance Operations and Missions in Afghanistan, which have more than quadrupled over the last five years, combined with the coming on-line of deployable capabilities and the introduction of new programs such as Cyber Defence and Theatre Missile Defence.

Audits completed or planned: At the end of the year, the annual financial statements were presented for verification by the International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is composed of government officials from national audit institution in member countries.  The IBAN conducts financial audits on all accounts commonly-funded by NATO members. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Evaluation completed or planned: An evaluation of Defence’s NATO Contribution Program will be completed in FY 2011-12 by Chief Review Services.

NATO Airborne Early Warning and Control Programme Management Agency (NATO Major Activities)

Name of Transfer Payment Program: NATO Airborne Early Warning and Control Programme Management Agency (NATO Major Activities) [Voted Payments]

Start date: 1979

End date: Ongoing

Description: The NATO Airborne Early Warning Force (NAEWF) is based on a Boeing 707 aircraft modified for military use that provides NATO with early warning and control capability - allowing NATO to detect and track enemy aircraft operating at low altitudes over all terrain. The surveillance capability of the Airborne Warning and Control System (AWACS) allow NATO forces to transmit data directly from the aircraft to command and control centres on land, sea or in the air. The military characteristics of the AWACS aircraft enable it to be deployed rapidly in support of operations and make it less vulnerable to attack than ground-based radar.

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed

Results Achieved: Development was performed to continue to provide a state-of-the-art operating system that collects and disseminates, in real-time, data received from several on-board sensors.

Program Activity: International Peace, Stability and Security ($ millions)
	Spending 2008-09	Spending 2009-10	Planned Spending 2010-11	Total Authorities 2010-11	Actual Spending 2010-11	Variance(s)
Total Contributions	$40.798	$60.327	$12.635	$9.176	$9.176	$3.459
Total Program Activity	$178.093	$206.117	$200.837	$251.049	$244.018	$(43.181)

Comment(s) on Variance(s): Two component programme upgrades reached the end of their implementation phase which resulted in less demand for funds in fiscal year (FY) 2010-11 than initially planned.

Note: Since FY 2010-11, the Military budget includes the operations and maintenance (O&M) budget of the NATO Airborne Early Warning and Control Programme (NAEW&C) thus reflecting the alignment of the NATO Terms and Conditions approved in October 2009.

Audits completed or planned: At the end of the year, the annual financial statements were presented for verification by the International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is composed of government officials from national audit institution in member countries.  The IBAN conducts financial audits on all accounts commonly-funded by NATO members. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Evaluation completed or planned: An evaluation of Defence’s NATO Contribution Program will be completed in FY 2011-12 by Chief Review Services.

NATO Alliance Ground Surveillance System (NATO Major Activities)

Name of Transfer Payment Program: NATO Alliance Ground Surveillance (AGS) System (NATO Major Activities) [Voted Payments]

Start date: 2009-10

End date: 2038-39

Description: The Alliance Ground Surveillance Programme came into being with the signatures of the 15 participating NATO nations in September 2009. It is based upon eight, high altitude, long endurance, Global Hawk Unmanned Aerial Vehicle (UAV) platforms equipped with the Multi-Platform Radar Technology Insertion Program (MP-RTIP) ground surveillance sensor which interface with several ground stations in various deployable configurations to support Command, Control, Intelligence, Surveillance and Reconnaissance in operations.

Operations, training and support will be conducted from a single Main Operating Base but with the ability to further launch and recover the platforms from forward operating bases.

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed

Results Achieved: Provision of a NATO owned and operated airborne ground surveillance system was initiated. The AGS is to provide command authorities with near real-time, continuous, intelligence, surveillance and reconnaissance capabilities in all weather conditions, to support timely decision making at the strategic, operational and tactical levels of command.

Program Activity: International Peace, Stability and Security ($ millions)
	Spending 2008-09	Spending 2009-10	Planned Spending 2010-11	Total Authorities 2010-11	Actual Spending 2010-11	Variance(s)
Total Contributions	$0.000	$0.549	$10.152	$10.152	$4.183	$5.969
Total Program Activity	$178.093	$206.117	$200.837	$251.049	$244.018	$(43.181)

Comment(s) on Variance(s): The AGS contract has yet to be awarded for this new NATO initiative. This resulted in less demand for funds in FY 2010-11 than initially planned.

Audits completed or planned: At the end of the year, the annual financial statements were presented for verification by the International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is composed of government officials from national audit institution in member countries.  The IBAN conducts financial audits on all accounts commonly-funded by NATO members. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Evaluation completed or planned: An evaluation of Defence’s NATO Contribution Program will be completed in FY 2011-12 by Chief Review Services.

Contribution Program in support of the Search and Rescue New Initiatives Fund

Name of Transfer Payment Program: Contribution Program in support of the Search and Rescue (SAR) New Initiatives Fund (SAR NIF)

Start date: 1988

End date: Ongoing

Description: The  SAR New Initiatives Fund (SAR NIF) is managed by the NSS on behalf of the Lead Minister for Search and Rescue (SAR) in partnership with other federal, provincial and territorial and SAR volunteer organizations.  SAR NIF provides annual funding for new projects (or initiatives) that will improve the National Search and Rescue Program with the aim to enhance the effectiveness of SAR response in federal, provincial and territorial jurisdictions; promote the sharing of response and prevention best practices throughout the SAR community; and, promote and improve SAR prevention. Defence is one of 6 federal departments that are part of this program.

Strategic Outcome: Defence Operations improve Peace, Stability and Security Wherever Deployed.

Results Achieved: In Fiscal Year (FY) 2010-11, the SAR NIF provided more than $4M in contribution funding to 15 separate projects involving air, ground and marine SAR.  Of the 15 projects, seven were the result of contribution agreements signed in 2010 and eight were for projects signed in previous years.

Program Activity: Canadian Peace, Stability and Security ($ millions)
	Spending 2008-09	Spending 2009-10	Planned Spending 2010-11	Total Authorities 2010-11	Actual Spending 2010-11	Variance(s)
Total Contributions	$3.724	$5.684	$0.000	$4.028	$4.028	$(4.028)
Total Program Activity	$6.593	$8.585	$0.190	$7.059	$7.056	$(6.866)

Comment(s) on Variance(s):  At the time of preparation of the FY 2010-11 Report on Plans and Priorities, the renewal of the Terms and Conditions of the program had not received Treasury Board approval before the required deadlines and thus was not factored in the FY 2010-11 Planned Spending.

Audits completed or planned: None.  

Evaluation completed or planned: The program will undergo a mid-term review in FY 2012-13 and a full term evaluation in FY 2014-15 to address the relevance and performance (effectiveness, efficiency and economy) of the program.

Green Procurement

Part A: Green Procurement Capacity Building

Performance Measures for Part A

1a.   Number of procurement and materiel management staff with formal green procurement training (e.g., Canada School of Public Service (CSPS) course C215 or an in-house, tailored alternative) relative to total number of procurement and materiel management staff.

1b.   Number of acquisition cardholders with formal green procurement training (e.g., CSPS course C215 or an in-house, tailored alternative) relative to total number of acquisition cardholders.

2.   Number of performance evaluations of managers and functional heads of procurement and materiel management that incorporate environmental considerations relative to total number of performance evaluations of managers and functional heads of procurement and materiel management.

3.   Number of departmental procurement processes and controls that incorporate environmental considerations relative to total number of departmental procurement processes and controls that should address environmental considerations. Alternatively, departments and agencies can report on progress to improve the integration of environmental considerations in management processes and controls relative to procurement.

Activity	Target as %(as reported in 2010-11 RPP)	Actual Results as %	Description/Comments
1a. Training for Procurement and Materiel Management Staff	100%	24.15%	The goal of 100% completion of the online CSPS Green Procurement course by approximately 21,203 personnel by 31 Mar 2011 was not achieved.  Arrangements were made to allow CF members to access the online course and material as well as providing clarification on the Financial Administration Act (FAA) section 32/34 as it relates to individuals who have Materiel Acquisition and Support related functions.
1b. Training for Acquisition Cardholders	See Above	See Above	Training was provided to all staff, including acquisition cardholders, and not captured for Training for Procurement and Materiel Management Staff and Training for Acquisition Cardholders.
2. Performance Evaluations	100%	100%	Within the Assistant Deputy Minister (Materiel)’s (ADM-Mat) Performance Management Agreement (PMA), Paragraph 8 specifies: “Lead the greening of Materiel Acquisition and Support in Defence”.
3. Procurement Processes and Controls	N/A	N/A	While this activity was not measured in accordance with this template due to a change in the Reports on Plans and Priorities (RPP) 2010-11, this activity is captured as a target under the new Federal Sustainable Development Strategy (FSDS) and will be reported on in the Departmental Performance Report (DPR) 2011-12.

Part B: Use of Green Consolidated Procurement Instruments

Performance Measures for Part B

Dollar value of purchases against green consolidated procurement instruments (as designated by Public Works and Government Services Canada [PWGSC]) for a specified good or service relative to total dollar value of purchases for that good or service.

Dollar value of purchases that incorporate environmental considerations for a good or service relative to total dollar value of purchases for that good or service. (This performance measure applies when a green consolidated procurement instrument, as designated by PWGSC, was not used or was unavailable for the specified good or service.)

Good/Service	Target as % (as reported in 2010-11 RPP)	Actual Results as %	Description/Comments
			The Department has promoted the use of PWGSC’s Green Procurement Tools and use of procurement instruments (i.e. Standing Offer Agreements). Chaired by PWGSC/OGGO, Defence participates in the Commodity Management Working Groups which are comprised of various federal departments. During the evaluation of the Goods & Services Standing Offer Agreements (SOAs), materiel is reviewed for having environmentally-friendly attributes.  The Department is an active participant in the PWGSC-chaired Commodity Working Group. Due to the volume of materiel/services utilised, this promotes reviews of materiel/services common to & used by other federal departments. Defence is in the midst of transitioning to one core system for procurement, materiel management and finance and due to the volume and methods of procurement, the level of detail is not available. In the past strategic review, Defence incorporated environmental considerations into the day to day activities, projects and programs and therefore, it would be extremely complicated and difficult to extract specific dollar value line items that incorporate environmental considerations.

Part C: Reduction Initiatives for Specific Goods (optional/where applicable)

Performance Measure for Part C

Total quantity of a consumable purchased (e.g., paper) or an asset owned or leased (e.g., printing devices) relative to total number of full-time equivalents (FTEs).    

Consumable/Asset	Target as % Reduction or # per FTE	Actual Results as % Reduction or # per FTE	Description/Comments
Paper			The acquisition of paper has been decentralised within the Department and due to the volume and methods of procurement, the level of detail is not available.
Printing Devices			Defence is actively reviewing print device requirements and at the same time utilising the PWGSC Supply Arrangement to further consolidate/reduce printing devices. This consumable/asset is captured as a target under the new Federal Sustainable Development Strategy (FSDS) and will be reported on in DPR 2011-12.

Response to Parliamentary Committees and External Audits

 

40th Parliament, 3rd Session
Standing Committee on Public Accounts

19th Report of the Standing Committee on Public Accounts, 40th Parliament, 3rd Session, "Chapter 5, Acquiring Military Vehicles for Use in Afghanistan of the Fall 2009 Report of the Auditor General" (Adopted by the Committee on October 7, 2010; Presented to the House on October 25, 2010). Original Report Government Response

 

Recommendation	Government Response/Commitment	Status
2. That National Defence provide a status report to the Public Accounts Committee by 31 January 2011 on its progress in addressing the recommendations made by the Office of the Auditor General in Chapter 5 of the Fall 2009 Report; and that National Defence continue to provide annual status reports until all of the OAG's recommendations have been addressed.	The Government accepts this recommendation and will provide annual status reports to the Auditor General until all of the OAG's recommendations have been addressed. Additionally, DND will report on progress to meet the OAG's recommendations in its Departmental Performance Report, until all of the OAG's recommendations have been addressed.	Please see the section titled “Response to the Auditor General”.
4. That National Defence ensure that key decisions for urgent operational requirements are adequately documented, as was noted by the Office of the Auditor General in recommendation 5.83.	The Government accepts this recommendation and has begun to work towards implementing it. National Defence issued interim guidance for Unforecasted Operational Requirements, which outlines the minimum essential documentation required for urgent acquisitions.  Additionally, National Defence is reviewing its project approval process to ensure that relevant information is not excluded when project approvals are being fast-tracked for urgent projects.  To that end, National Defence is revising its Project Approval Guidance and will engage the Treasury Board Secretariat in consultations once a substantive draft has been finalized.  The revised Project Approval Guidance is expected to receive final approval by September 2011.	A complete new draft of the DND Project Approval Guide (PAG) has been completed and is undergoing review. Comments from TB Secretariat are scheduled to arrive by 22 August 2011. The new PAG is scheduled for review and endorsement by the DND Programme Management Board (PMB) on 15 September 2011, which will enable it to be fully implemented on the departmental (internal) website by November 2011.

 

40th Parliament, 2nd Session
Standing Committee on National Defence

2nd Report of the Standing Committee on National Defence, 40th Parliament, 2nd Session, "Health Services Provided to Canadian Forces Personnel with an Emphasis on Post-Traumatic Stress Disorder" (Adopted by the Committee on June 8, 2009; Presented to the House on June 17, 2009) Original Report Government Response

 

Recommendation	Government Response/Commitment	Status
9. The Canadian Forces to ensure that members and their families are provided with information about the risk of domestic violence that is associated with OSI and PTSD, and to provide services to family members who are at risk of or suffering from domestic violence as a result of OSI or PTSD.	The Government has already taken actions to address this issue. A CF directive has been issued outlining the steps to be followed when an incident of family violence occurs. It explains the CF policy on family violence, establishes a framework for management/implementation of the policy at both national and unit levels and assigns responsibility/authority for the various elements of the policy. The CF has also adopted an interdisciplinary team including health care providers, chaplains, Military Police and Military Family Resource Centre staff who assist in educating the CF on the prevention of family violence as well as responding to incidents. Moreover, the newly formed Mental Health & OSI Joint Speakers Bureau is currently developing new mental health educational curriculum, which will include information about the risk of domestic violence associated with OSI and PTSD, and coordinating its delivery. While the new curriculum is being developed, the focus within the CF is on how to motivate CF members to encourage their families to attend information sessions where the link between domestic violence and OSI is discussed.	The Canadian Forces now has 24 Integrated Personnel Support Centres located across Canada who support ill and injured personnel and their families, as well as families of the deceased. They provide high quality, consistent personal and administrative support based on individual needs during all phases of recovery, rehabilitation and reintegration. It continues to enhance its peer-based support programs, assisting those who are affected by Operational Stress Injuries, a serious physical impairment, or the loss of a loved one. Families have access to social support through trained Family Peer support coordinators within the Operational Stress Injury Social Support (OSISS) program. The Mental Health & OSI Joint Speakers Bureau has developed new mental health educational curriculum that is specific to families and deployment which includes information about potential negative behaviours associated with OSI and PTSD. The Joint Personnel Support Unit (JPSU) is now fully operational and has established Integrated Personnel Support Centres in 24 locations across Canada. The JPSU has been very successful in providing focused support to ill and injured CF personnel and their families. The collaboration with multiple service partners has greatly simplified the provision of high quality, standardized administrative and personal support to those who require it. JPSU staff have acquired significant expertise and experience that enable them to provide and facilitate comprehensive support based on individual needs. Families of the deceased now also have access to a consistent point of contact with the CF, and can also benefit from the services offered through the JPSU.   This curriculum provides consistent information to both CF personnel and their families, including stress reduction strategies, experiences that are common in the deployment cycle, and a mental health continuum that allows recognition of behaviours that help identify when assistance should be sought. Delivery of the family curriculum is being made available both through personal sessions and web-based delivery to enable access by as many families as possible. CF personnel are also encouraged to discuss the Mental Health training they receive prior to deployment with their families, and the training provided during the decompression phase is oriented to assist returning personnel with the successful reintegration into family life. In addition to the work that has already been described, the CF Family Violence Advisory Committee (CF FVAC) was re-instituted.
10. The Canadian Forces to develop a formal outreach program to educate contracted health care professionals about the unique nature of military experiences encountered on international missions, particularly those involving any degree of combat.	The Government is currently working in this direction. Local level initiatives, such as the collective clinical training offered at CFB Gagetown and Valcartier for all health care professionals, are already well underway to develop such an understanding among both Public Service and contracted health care professionals, but there would be benefit in a more formal approach. To this end, the CF Health Services Group recently began developing a civilian personnel orientation package geared initially to Public Servants and civilian contractors. The package is expected to include information on the military culture, organization, terminology and domestic and international operations, including those involving combat, as well as occupational health aspects of the military. It could be completed as early as November 2009.	As part of the Quality Improvement Working Group, this point was identified. The intent is to develop an orientation package in order to educate contracted health care professionals about the unique nature of military experiences encountered on international missions, particularly those involving any degree of combat. CF health Services will develop an orientation program ("CF-101" Course) in line with the Departmental Orientation Program. The CF-101 course would be offered to all contracted health care professionals during the annual orientation session at their unit. Estimated start date for the course is August 2012.
15. The Canadian Forces to recognize there still exists a certain culture, perhaps even a prejudice, regarding how mental illness is perceived among its rank and file.	The CF recognizes the stigma attached to mental health and is very pro-active in addressing this issue. The newly formed Joint Speakers Bureau, which includes mental health clinicians and OSI veterans, has been actively educating CF members and the chain of command at all stages of a member's career on mental health and the importance of creating a supportive environment so members can come forward early for mental health care. More recently, the CDS campaign raised the importance of mental health as a leadership issue. There is evidence that these efforts to decrease stigma have been successful in that members are seeking help much earlier when mental issues arise, indicating a significant reduction in stigma as a barrier to care. Moreover, the Global Business and Economic Roundtable on Addiction and Mental Health recently "praised the military for its success in taking some of the stigma out of mental illness." Mr. Bill Wilkerson, the Chairman of the Roundtable, stated that "the military and paramilitary have crossed the Rubicon in recognizing that mental illness is a real expression of ill health and not weak character." Information on mental health and OSI is already included in all Basic Military Qualification Training for commissioned and non-commissioned members, as well as Primary Leadership Qualification and Advanced Leadership Qualification. However, the CF is currently reviewing the detailed descriptions of the knowledge, skills, and other attributes required for all members of the CF for both officers and non commissioned personnel. This review is expected to result in the addition of OSI information to a greater number of courses. As of 1 October 2009, there will also be a standardized mental health and OSI pre-deployment education for all CF members, including leaders at all levels. This pre-deployment education will include recognition of behaviours often associated with mental health conditions, possible interventions, as well as information about available resources.	The mental health education and programs that are now in place are effectively addressing this issue. This education is promoting understanding and acceptance of mental illness which in turn is resulting in positive cultural change. In this regard our most significant ally is the strong support from senior leadership which has consistently taken an active and genuine interest in the health and well being of subordinates. Senior leadership has created a climate that de-stigmatizes mental health problems and mental health care. We now have the most comprehensive, multi-faceted approach to address barriers to accessing mental health care of any employer in Canada.  Our mental health training programs are effectively changing the targeted attitudes and beliefs. CF members are significantly less likely to report barriers to care than are personnel in the United States, United Kingdom, Australia, or New Zealand. This is now a continuing process that is well established and successfully implemented.
19. The Department of National Defence to ensure that adequate resources are allocated to the establishment of a sufficient number of the Joint Personnel Support Units and Integrated Personnel Support Centres to provide this level of support and service nation-wide.	DND continually strives to improve the resources, both financial and human, to support establishments throughout the country. Up to now, there is one Joint Personnel Support Unit with 19 Integrated Personnel Support Centres in its chain of command across Canada. Work is ongoing with the CF to assess the need for additional centres.	The Canadian Forces now has 24 Integrated Personnel Support Centres located across Canada who support ill and injured personnel and their families, as well as families of the deceased. They provide high quality, consistent personal and administrative support based on individual needs during all phases of recovery, rehabilitation and reintegration. It continues to enhance its peer-based support programs, assisting those who are affected by Operational Stress Injuries, a serious physical impairment, or the loss of a loved one.
20. Reserve unit chains of command to be intimately and proactively involved in ensuring their returning personnel complete the post-deployment process on time, including all necessary administration, interviews and medical appointments. Where individual Reservists are undergoing continuing care and treatment after full-time service, Reserve unit chains of command to remain in regular contact with CFHS case managers and to take an active interest in the soldier's treatment programme.	The Government agrees that the military chain of command must be fully engaged in the health of their returning personnel. To ensure that returning Reservists complete all the necessary administration, interviews and medical appointments, DND has implemented a program known as the Reserve Medical Link Team whereby all returning Reservists are contacted and tracked to ensure that post-deployment screening is completed. To date, 90% of Primary Reserve members who participated in ROTO 5 of the CF mission in Afghanistan have been contacted, with final contact taking place 12 months after their return to Canada. Approximately 80% of Primary Reservists participating in ROTO 6 have now had initial contact. The Reserve Medical Link Team also liaises regularly with CF Case Managers and the situations of all Primary Reserve members requiring care are discussed in case conferences that review individual health care needs and management plans.	The Health Services Group (H Svcs Gp) was directed to cease the Reserve Medical Link Team (RMLT) activity effective 31 Mar 2011 because it was not an approved or funded initiative. Recognizing the importance of the functions, the H Svcs Gp has reprioritized existing funding and the functions formally carried out by the RMLT will transition to the Field Ambulance Medical Link Team (FAMLT). New team members will be tasked and funded within existing Class A Health Services Reserve allocation.
34. The federal government to move immediately to provide the necessary resources to reach full operational capability of the Canadian Forces Health Information Systems project, with the assistance of a database.	The CFHIS will improve the management of health information that is created within CF facilities. However, CF members also receive care from the public health care system. Accordingly, full operational capability of the CFHIS will not be realized until the CFHIS is rolled out to each CF Clinic and then connected to the emerging pan-Canadian Electronic Health Record. This will then allow care providers in both the CF and the public health care system to have complete health information. As recommended, the CF, as a member of the FHP, is collaborating with other federal organizations with similar needs in a whole of government effort towards identifying the requirements for federal participation in the pan-Canadian Electronic Health Record.	The Canadian Forces Health Information System (CFHIS) Project continues to be on time and on budget and during the reporting period, 27 of the 42 clinics have implemented the final phase. Stakeholders have responded very positively to the final phase otherwise known as PCPN (Primary Care Progress Notes). CFHIS continues to be identified by the TB Secretariat - Chief Information Officer (CIO) as a solid model for other federal departments with health care delivery responsibilities. An interoperability feasibility study was completed 31 March 2011 indicating a way forward for connectivity to other provincial jurisdictions which also provides recommendations on connecting with other federal departments.

 

Standing Committee on Public Accounts

1st Report of the Standing Committee on Public Accounts, 40th Parliament, 2nd Session, "Chapter 4, Military Health Care – National Defence of the October 2007 Report of the Auditor General of Canada" (Adopted by the Committee on February 12, 2009; Presented to the House on February 25, 2009) Original Report Government Response

 

Recommendation	Government Response/Commitment	Status
1. National Defence to provide the Public Accounts Committee with a detailed progress report by 31 October 2008 on the implementation of its plan to address deficiencies identified by the Office of the Auditor General in its audit on Military Health Care.	The Government accepts this recommendation, with the necessary revision to the timeline. The Government has developed an action plan intended to address the recommendations contained in the Auditor General's report on military health care. This action plan was presented to the Public Accounts Committee on 31 January 2008. An updated action plan was provided to the Auditor General in spring 2009. DND intends to provide the Committee with a copy of this updated action plan, which includes details on progress to date, by the end of June 2009. Progress towards achievement of these recommendations will be provided to the Auditor General on a regular basis. Copies of these reports will be provided to the Committee as they become available.	A detailed progress report was provided to the Committee on 7 July 2010.
2. National Defence to provide information in its annual Departmental Performance Report on the aggregate costs of the military health care system, as well as the number of physicians, nurses, pharmacists, medical technicians, and physician's assistants employed in that system.	The Government accepts this recommendation. DND will report this information in the Fiscal Year 2009/10 Departmental Performance Report. In future years, DND will also look for other ways to make this information available to the public.	The current budget for the CF H Svcs Gp is $451.3 million. This represents the majority of the expected expenditures for the CF health care system, noting that it excludes pay for regular force military members and costs for current operations. Currently, in the military health care system the CF employs: 128 Dentists; 121 Health Care Administrators; 57 Health Services Operation Officers; 234 Physicians (including specialists); 197 Nurses; 35 Pharmacists; 30 Physiotherapists; 26 Social Workers; 16 Bio-engineering Technicians; 202 Dental Technicians; 20 Laboratory Technicians; 27 Radiological Technicians; 1162 Medical Technicians; and 163 Physician Assistants.
3. National Defence to conduct a comprehensive survey by 30 June 2009 of the state of mental health of CF members and the quality of mental health care services they and their families receive, with a special emphasis on those returning from overseas operations.	The Government accepts the intent of this recommendation and has already been working towards its implementation. Two surveys are currently underway as a part of a regular program to determine areas of personnel support in need of updating. The first survey, Canadian Forces Health and Lifestyle Information Survey (2008), will help determine the state of mental health in the CF, as well as develop a picture of the overall health and fitness of CF personnel. The survey contains significant emphasis on mental health issues including questions on depression, mental distress, post traumatic stress disorder and suicide. In addition there is a large section on the utilization of mental health services and patient satisfaction. The survey is sent to a random selection of CF members and will be compared to previous surveys. The survey was sent out in three cycles to take into account seasonal variations in factors such as physical activity. The first cycle was sent out in the fall of 2008. While the results of all three phases will not be ready to analyze until fall 2009, preliminary mental health results could be available by July 2009. The second survey (entitled Your Say) measures the attitudes of CF personnel and their families towards the CF and its quality of life programs. The next version of the survey will be sent to CF members in June 2009 and will contain questions to measure the availability of mental health resources for CF members and their families. Capturing the views of those returning from overseas operations is particularly important to ensuring the CF health system meets the needs of members. In addition to the two surveys, on completion of lengthy deployments, CF members receive briefings on mental health issues and have an opportunity to discuss, in private, any personal concerns with a mental health provider, including concerns related to the availability of services. Ninety to 180 days after returning to Canada, members are required to complete a detailed health questionnaire and an in-depth interview with a mental health professional to discuss any outstanding issues.	The 2008/09 Canadian Forces Health and Lifestyle Information Survey: Regular Force Report (HLIS) and Your Say: Spring 2008 Results were provided to the Committee on 10 December 2010.
4. National Defence to report in its annual Departmental Performance Report on the status and implementation of the Canadian Forces Health Information System, including whether the system is on budget and on time.	The Government accepts this recommendation. DND will report this information in the Fiscal Year 2009/10 Departmental Performance Report. In future years, DND will also look for other ways to make this information available to the public.	The CFHIS Project continues to be on time and on budget and during the reporting period, 27 of the 42 clinics have implemented the final phase.
5. National Defence to confirm in its annual performance report that all physicians, nurses, dentists and pharmacists are licensed to practice and that all medical technicians and physician assistants are certified. National Defence also to confirm the number of practitioners who take advantage of the Maintenance of Clinical Skills program.	The Government accepts this recommendation. DND will report this information in the Fiscal Year 2009/10 Departmental Performance Report. In future years, DND will also look for other ways to make this information available to the public.	The National Credentialing Cell monitors compliance with CF H Svcs policy on credentialing and licensure for Healthcare Professionals. Processes and reporting mechanisms are in place to effectively manage credentialing within the health system. Regarding maintenance of Clinical Skills (MCSP), the majority of CF generalist and specialist medical officers, new graduate nurses, physiotherapists, pharmacists, social workers, dentists, dental technicians, and operating room, laboratory and radiology technicians are employed in clinical positions where they obtain clinical practice daily. For clinicians who are employed in staff/administrative positions, the MCSP Tracking Tool is being utilized to report when members engage in MCSP that is outside of their normal daily work routine, which we had 278 Reg F participants of combined occupations reporting MCSP in FY 2010-2011. Reservist clinicians normally work in their clinical environment in their civilian jobs, and therefore usually only require some clinical time in a CF clinical-related environment each year to maintain military competencies, for which we had 26 participants of combined occupations reporting MCSP in FY 2010-11.

 

20th Report of the Standing Committee on Public Accounts, 40th Parliament, 2nd Session, "Chapter 5, Financial Management and Control – National Defence of the Spring 2009 Report of the Auditor General of Canada" (Adopted by the Committee on November 18, 2009; Presented to the House on December 3, 2009) Original Report Government Response

 

Recommendation	Government Response/Commitment	Status
1. National Defence to provide the Public Accounts Committee with a report by 31 December 2010 on the progress in implementing the recommendations made in Chapter 5 of the Auditor General's Spring 2009 Report.	The Government accepts this recommendation. Following the release of the Auditor General's 2009 Report, DND developed an action plan to chart its progress on implementing the recommendations made by the Auditor General. This action plan was presented to the Public Accounts Committee on September 28th, 2009. Some of the progress already underway includes the development of a new corporate strategy that will help establish clearer links between day-to-day activities of the Department and overall Government Direction, as outlined in the Canada First Defence Strategy; the development of a Program Activity Architecture that demonstrates how Defence programs achieve strategic outcomes; and the implementation of a new financial management governance structure with the appointment of DND's first Chief Financial Officer and the establishment of the Defence Finance Committee and the Defence Strategic Executive Committee. DND will continue to follow through on the action plan and will provide a progress report to the Committee by December 31st, 2010.	An update on the actions that the Department of National Defence has taken in response to Chapter 5 - Financial Management and Control of the Spring 2009 Report of the Auditor General was provided to the Committee on 9 February 2011. For additional details, please see the section titled "Response to the Auditor General".

 

39th Parliament, 1st Session
Standing Committee on Public Accounts

11th Report of the Standing Committee on Public Accounts, 39th Parliament, 1st Session, "Chapter 2 of the May 2006 Report of the Auditor General of Canada on National Defence – Military Recruiting and Retention" (Adopted by the Committee on November 30, 2006; Presented to the House on December 7, 2006) Original Report Government Response

 

Recommendation	Government Response/Commitment	Status
3. That the Department of National Defence establish a formal commitment to process applications for membership in the Canadian Forces within thirty days, ensure that all applicants are made aware of that commitment and report its progress in meeting those goals in its annual Departmental Performance Report.	The Government will continue to explore additional opportunities to streamline applicant processing and is progressing with the development of a robust performance measurement system based on the Treasury Board framework for service standards. Progress in meeting the goals identified above will be included in the annual Departmental Performance Report for the Department of National Defence, beginning with the report for the period ending 31 March 2007.	DND will not attain the objective of making enrolment offers to 30% of applicants within five days of application and to an additional 40% within 30 days of application due to a lack of resources and systemic delays in medical evaluation and security screening. Any applicant reporting previous injuries or medical conditions is required to provide a civilian physician's assessment of the scope of those injuries, often requiring documentation from medical specialists. DND experience indicates that the minimal realistically achievable time needed for an applicant to obtain a specialist appointment, return this information to a recruiting centre then have DND medical staff review this information is several weeks and often requires several months. Application of the principle of Universality of Service prevents DND from making enrolment offers until medical fitness has been confirmed.   All applicants must undergo a security assessment to determine whether they could be assigned a security clearance which is essential for employment within the Canadian Forces. Although the time required for this determination varies significantly based on each applicant's individual circumstances, Deputy Provost Marshal (DPM) Secur (the organization tasked with this evaluation) has a large backlog of files and typically requires more than one month and as much as several months for this review.  In addition to delays with medical and security screening, existing and planned reductions to the Canadian Forces Recruiting Group (CFRG) will further erode DND's ability to enrol applicants on a timely basis. These will reduce CFRG's manning by 18% and may reduce the number of Recruiting Detachments by 25%. These reductions will further delay the processing of applicants and CFRG will not be able to provide equal opportunities to all Canadians to join the Canadian Forces. Those most impacted will be citizens from Northern and rural areas.
8. The Department of National Defence determine the rate of attrition for female members of the Canadian Forces and, in its exit surveys, seek to establish which factors prompt female members to leave the Forces before full service is completed. The results, along with corrective measures taken to encourage women to complete their full service should be reported in the Department's annual Performance Reports, beginning with the Report for the period ending 31 March 2008.	A comprehensive survey analysis that will be conducted in the fall of 2007 will allow the Government to better understand the reasons female members of the Canadian Forces decide to leave the military. Should trends be identified that indicate a need for change, the Government will initiate appropriate corrective measures. The results of this survey analysis, together with any corrective measures undertaken, will be reported in the Departmental Performance Reports, beginning with the report for the period ending 31 March 2008.	The CF Retention Strategy approved by the Armed Forces Council (AFC) in March 2009 with its six lines of operations and 43 initiatives continues to be advanced on a number of fronts (the main lines of operations are Career/Employment Management, Career/Family Balance and Basic Training). CF attrition research has been expanded and research focussed on female attrition and retention has been completed for naval officer occupations as well as for air force officers in the Pilot and Air Combat Systems Operations occupations. A comprehensive 20 year comparison of overall male and female attrition rates are included in the Annual Reports on Regular Force Attrition (fiscal year 2007-08 and fiscal year 2009-10 (draft)). Several studies have been undertaken to investigate attrition occurring during the first year of service (YOS) as well as attrition patterns for CF members deployed on Task Force Afghanistan (TFA). In support of the CF Retention Strategy, the CF Retention Survey and CF Exit Survey continue to be administered to gather data on turnover intentions of CF personnel. Female Attrition Rates for the CF Regular Force Fiscal Year Officers Non-Commissioned Members 2001-02 4.7% 6.9% 2002-03 6.5% 6.7% 2003-04 6.6% 6.5% 2004-05 5.4% 6.3% 2005-06 6.0% 6.2% 2006-07 5.0% 8.1% 2007-08 6.9% 9.8% 2008-09 6.1% 8.6% 2009-10 7.3% 8.9% 2010-11 5.5% 7.3% The attrition rate for formulas in fiscal year 2010-11 were slightly higer than tose for members. (Fiscal year 2010-11 rates are preliminary).
9. The Department of National Defence begin to report the results of the exit surveys it conducts among members of the Canadian Forces in its Departmental Performance Reports beginning with the Report for the period ending 31 March 2007. References to the methodology and scope of the surveys should be included.	The Department of National Defence will ensure that the information identified in this recommendation is included in its annual Departmental Performance Report. However, since the comprehensive analysis of survey results will not commence until the fall of 2007, the reporting of these results can only begin with the report for the period ending 31 March 2008.	The Exit Survey is given to all Regular Force members who are leaving the CF voluntarily. Survey completion is voluntary. The objective of the analysis of Exit Survey data is to assess departing members' satisfaction with several organizational issues as well as to determine the extent to which these organizational issues and dissatisfiers influence their decision to leave the CF. Final reports detailing analysis of data collected from 2005 to 2008 have been published. Results show that respondents were most satisfied with pay and benefits; policies and regulations; supervisor aspects; as well as the quality and opportunities of career and occupational training. In contrast, respondents were most dissatisfied with the way the CF deals with poor performers; the career management system; and family and postings related aspects. They were most influenced in their decision to leave by the career management system; the time available to spend with their family; and the effects postings have had on their ability to maintain family stability, on their partner/spouse' employment, and on the opportunity to settle down in a certain area. The results suggest that increasing satisfaction with the career management system, postings and work-life balance could potentially promote retention. As well, an analysis to better understand new members' experiences relative to expectations showed that over half of respondents felt that service life had been worse or much worse than expected. As well, results showed that the worse a member's service life compared to what was expected, the lower the member's feeling of fit with the CF and organizational commitment, and the more these influenced the member's decision to leave. These findings highlight the importance of ensuring recruits have realistic expectations when joining the CF; building organizational commitment; and optimizing the fit between individuals and CF values.   Analysis of data collected with the ongoing version of the survey, administered since summer 2008, is in progress. As well, the CF Retention Survey, which is administered to occupations that are "at-risk" with regards to attrition, is used to explore specific work and non-work related items and their impact on whether an individual intends to stay or leave the CF in the next five years. Descriptive results from the 2008 and 2010 administrations of the CF Retention survey have been published. Preparations for administration of the 2012 CF Retention survey have commenced. Results of the 2010 Retention survey will provide performance measures to the CF Retention Strategy.
10. That the Department of National Defence establish a target for the maximum acceptable rate of attrition of its trained effective strength and monitor the performance of the package of measures it has instituted to meet that target. The Department should begin to report its progress in its annual Departmental Performance Report beginning with the report ending 31 March 2007.	The Government will include data regarding attrition rates in the Department of National Defence annual Departmental Performance Report beginning with the report ending 31 March 2007. However, the data will be based on trend analysis as opposed to pre-determined targets.	Due to the number of factors influencing attrition that are beyond the control of the CF, including the state of the Canadian economy, instead of establishing a target for the maximum acceptable rate of attrition of its trained effective strength, the CF closely monitors all aspects of attrition and uses statistical modelling to forecast attrition for each occupation for each fiscal year. These forecasts are used in formal, structured processes to determine the number of personnel who need to be recruited for each occupation for each fiscal year, and are published as the Strategic Intake Plan. During the reporting period, actual recruiting and attrition are monitored on a month-by-month basis and the Strategic Intake Plan is adjusted as required. While voluntary Regular Force attrition between 2006 and 2008 increased from 4% to 6.9%, this rate increase was manageable in that the CF had the capacity to recruit and train sufficient personnel necessary to replace those who left. However, the additional requirement to recruit and train personnel to meet Force Expansion targets strained both the recruiting and training systems.   During fiscal year 2009 - 2010 the Strategic Intake Plan was set at a higher than traditional level and sought to enrol 7,454 personnel. Actual recruiting exceeded this target, with 7,522 personnel being brought into the Regular Force. Projected attrition was 6,250; however, with the downturn in the economy and a successful CF Retention Strategy, only 5,293 personnel left the Regular Force this past fiscal year. Consequently, with recruiting up and attrition down, the CF grew by 2,229 personnel during this timeframe. The Force Expansion requirements had been met, and as a result, the Strategic Intake Plan for fiscal year 2010-11 was reduced to 4724. The overall strength of the Regular Force as of end-March 2011 was 68,254 personnel and slightly surpassed the 2011-2012 growth target of 68,000. The Strategic Intake Plan for the next few years has been reduced again to approximately 4,000 new recruits in FY 11/12. Recruitment is expected to be approximately 4,300 for the following few years. This reduction will alleviate the strain on the recruiting system. However, surge recruiting that occurred during the past few years created a backlog of personnel undergoing basic and initial occupational training. Efforts are being made to increase training capacity and to move these personnel from the Basic Training List to the Trained Effective Strength as quickly as possible; however, due to the length of many technical and professional training programs, it will take a few years before the Trained Effective Strength sees a substantial increase. Attrition Rates for the CF Regular Force Fiscal Year Trained Officers Trained Non-Commissioned Members Overall CF: trained and untrained 2001-02 5.0% 6.1% 6.0% 2002-03 4.9% 6.4% 6.4% 2003-04 4.5% 6.3% 6.1% 2004-05 4.5% 7.1% 6.7% 2005-06 5.4% 6.8% 6.8% 2006-07 6.3% 8.0% 8.3% 2007-08 6.8% 8.3% 9.1% 2008-09 7.7% 8.9% 9.1% 2009-10 6.3% 7.1% 7.6% 2010-11 5.0% 5.1% 6.7% (Fiscal year 2010-11 rates are preliminary).

 

15th Report of the Standing Committee on Public Accounts, 39th Parliament, 1st Session, "Chapter 5 – Relocating Members of the Canadian Forces, RCMP, and Federal Public Service of the November 2006 Report of the Auditor General of Canada (Adopted by the Committee on May 16, 2007; Presented to the House on May 29, 2007) Original Report Government Response

 

Recommendation	Government Response/Commitment	Status
5. That the Department of National Defence, the Royal Canadian Mounted Police, and Treasury Board Secretariat include, in their annual Departmental Performance Reports, references to the Integrated Relocation-Program as it relates to their employees. Information on the numbers of employees using the Program, the costs, and the extent to which the purposes of the Program are being achieved must be included. This performance information must be included in DPRs beginning with Reports for the period ending 31 March 2008.	The Government accepts this recommendation.	The purpose of the Integrated Relocation Program (IRP) is to relocate CF personnel and their families in the most efficient fashion and at the most reasonable cost to the public while having a minimum detrimental effect on the employee and family, and on departmental operations. In 2010, the following moves were coordinated through the Brookfield Global Relocation Services (GRS), by quarter:   2010 Total 9,546 2010-Q2 5,360 April  2,442 May  1,588 June  1,330 2010-Q3  2,382 July  1,003 August  748 September  631 2010-Q4  1,804 October  749 November  679 December  376 2011 Total 7,230 2011-Q1 7,230 January  520 February  1,003 March  5,707

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

During the reporting period the Auditor General (AG) and the Commissioner of the Environment and Sustainable Development tabled one audit report in Parliament focused specifically on National Defence-Chapter 6 of the October 2010 tabling titled "Acquisition of Military Helicopters".   In the Chapter on "Acquisition of Military Helicopters" the AG concluded that for the Maritime Helicopter Project (MHP) CH-148 Cyclone and the Medium-to-Heavy-Lift Helicopter (MHLH) CH-147 Chinook), DND did not fully comply with key provisions of the TB Project Management Policy for Major Crown Projects, or with the Department's own guidance as contained in the Project Approval Guide (PAG). With respect to the contracting process for the Cyclone, the AG concluded that Public Works and Government Services Canada (PWGSC) and DND generally complied with the provisions of the Government Contracting Regulations and the TB Contracting Policy, but that a 2008 amendment was not consistent with the original strategy of lowest compliant price. For the Chinook, which employed an Advance Contract Award Notice (ACAN) process, the AG reported that the process did not comply with the letter or intent of the applicable contracting regulations and policies. In addition, the AG concluded that both helicopter projects have experienced cost increases and significant schedule delays.   This Chapter, including the departmental response to the Auditor General's recommendations, can be accessed on the Auditor General's website: OAG Latest Audit Reports Chapter 2 of the October 2010 report examined three small entities, including the Canadian Forces Housing Agency (CFHA). The AG concluded that all three entities had management controls in place that were consistent with TB requirements and that are applied in managing the use of acquisition cards, contracting, executive travel and hospitality. DND's response to the one recommendation directed at all three entities can also be found at the above link.   In response to the annual request by the Auditor General, National Defence provided updates on the status of all OAG audit recommendations tabled in Parliament during the five-year period 2005-06 to 2009-10. This included updates with respect to the 2009 Fall Report on the "Acquisition of Military Vehicles for Use in Afghanistan"   During FY 2010/11, the Office of the Procurement Ombudsman (OPO) completed a Procurement Practice Review titled: "Departmental Verification of Suppliers' Records to Validate Contract Payments" that included DND among other departments. This report contained one recommendation directed at all Departments and one directed at PWGSC. The executive summary of this review was included as part of this year's OPO Annual Report, which was tabled in Parliament by the Minister of PWGSC on June 15, 2010.

External Audits (Note: These refer to other external audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages)

Audit on CF Individual Training and Education (IT&E) system   In June 2010, the Office of the Commissioner of Official Languages (OCOL) made public the report of the audit on the CF Individual Training and Education (IT&E) system conducted in 2008. Overall, the report was well received by the department. This report, including recommendations and responses to the CF action plan, is available on the OCOL website at: http://www.ocol-clo.gc.ca/html/audits_verifications_e.php#BFI The recommendations made by the OCOL were supported as they assist the DND/CF in directing its efforts and resources towards the long-term plan of Official Languages Act (OLA) compliance and will offer CF members the possibility of being trained in their official language of choice. Indeed, several steps have already been taken to implement these recommendations. However, efforts and resources are still required to assist the CF in achieving its long-term plan to offer all members the possibility of being trained in their OL of choice and ultimately, comply with the OLA.  Follow-up on the audit of the Language of Work at NDHQ In June 2010, the OCOL requested a detailed progress report identifying the corrective measures taken by the DND/CF to implement the 12 recommendations found in the report. The report produced by DND/CF highlighted that, since the audit, progress had been made with regard to senior leadership, awareness and education and second OL training. The report also specified that some weaknesses remain in areas such as maintenance of work environment conducive to the use of both OL, competencies of managers and supervisors in the second OL and provision of central and personal services in both OLs.   In a response letter dated March 2011, the OCOL acknowledged that progress has been made, however, the OCOL also noted that a greater effort is required to create a workplace that is conductive to the use of both OLs. The OCOL recognized that the measures presented in the progress report look promising and reiterated that an effective monitoring mechanism should be put in place to assist DND/CF in reaching compliance with the OLA. This letter is available on the OCOL website at: http://www.ocol-clo.gc.ca/html/audits_verifications_e.php#BFI

Internal Audits and Evaluations

Internal Audits (current reporting period)

The following table lists projects that were active or completed during fiscal year 2010-11. Completed audit reports can be found at the following link: http://crs-csex.mil.ca/reports-rapports/index-eng.asp 

Name of Internal Audit	Audit Type	Status (Note 1)	Completion Date (Note 2)
Internal Audit:  Subcontract Visibility	Contract Management	Completed	July 2010
Audit of Professional Services Contracting	Contract Management/People Management	Completed	July 2010
Audit of Security Incident Management	Security Management	Completed	July 2010
Audit of Civilian Leave Administration	People Management	Completed	July 2010
Follow-up on CF Reserve Pay Audit	Financial Management	Completed	July 2010
Review of Revenue Management	Financial Management	Completed	July 2010
Audit of Canadian Forces Pension Plans Administrative Expenses	Financial Management	Completed	October 2010
Analysis of Capital Equipment Projects	Capital Acquisition	Completed	October 2010
Audit of the Halifax Class Modernization/Frigate Life Extension (HCM/FELEX) Project	Capital Acquisition	Completed	January 2011
Follow-up on Internal Audit: CP140 Aurora Data Management System (DMS) Contract	Contract Management	Completed	January 2011
Audit of Government-Furnished Equipment Issued to Contractors	Asset Management	Completed	January 2011
Audit of the Fleet Maintenance Facility Cape Breton (FMF CB) Shop Consolidation Project	Real Property Management	Completed	January 2011
Audit of the Defence Sustainable Development Strategy	Environmental Management	Completed	March 2011
Internal Audit: Contract Terms of Payment	Contract Management	Completed	March 2011
Audit of Mission Transition (MT)—Materiel Deployed in Afghanistan	Asset Management	Completed	March 2011
Follow-Up on Audit of  Acquisition Card Use	Financial Management	Completed	March 2011
Audit of Information Management (Horizontal)	Information Management	DND component completed	TBS-led
Audit of Financial Stewardship of Royal Military College of Canada	Financial Management	In Progress	June 2011
Audit of Industrial Security	Security Management	In Progress	June 2011
Audit of a Health Services Centre Recapitalization Project	Real Property Management	In Progress	June 2011
Follow-Up on Audit of Travel, Hospitality and Conferences	Financial Management	In Progress	June 2011
Analysis of Capital Infrastructure Projects	Real Property Management	In Progress	June 2011
Audit of Departmental Fuel Expenditures	Financial Management	In Progress	September 2011
Audit of Joint Support Ship (JSS)	Capital Acquisition	In Progress	September 2011
Audit of Recovery of Costs from Contract Management & Cost Audits	Financial Management/Contract Management	In Progress	September 2011
Audit of Accuracy & Efficiency of Financial Coding	Financial Management	In Progress	September 2011
Audit of Financial Management Practices – Canadian Forces Special Operations Command	Financial Management	In Progress	December 2011
Assessment - Active Network System Testing	Security Management	In Progress	December 2011
Audit of Efficiency and Effectiveness of Staff Inspection Visit (SIV)/Staff Assistance Visit (SAV) processes	Corporate Governance	In Progress	December 2011
Audit of Tactical Armoured Patrol Vehicle Acquisition	Capital Acquisition	In Progress	December 2011
Audit of Accuracy of Civilian Personnel Data	People Management	In Progress	March 2012
Audit of Sanitation and Destruction of Information Management/Information Technology (IM/IT) Assets	Security Management	In Progress	March 2012
Audit of Commercial Pattern Vehicle Fleet Management	Asset Management	In Progress	March 2012
Audit of Unforecasted Operational Requirements	CF Readiness & Operations	In Progress	March 2012
Audit of Imposed Restrictions	People Management	On-Hold	TBD
Internal Audit Perspective	Other	Cancelled	N/A
Audit of Real Property Life Cycle Management	Real Property Management	Cancelled	N/A

Evaluations (current reporting period)

The following table lists the program evaluations that were active or completed during fiscal year 2010-11.  Completed evaluations can be found at the following link: http://crs-csex.mil.ca/reports-rapports/index-eng.asp 

Name of Evaluation	Program Activity	Evaluation Type	Status (Note 1)	Completion Date (Note 2)
Evaluation of COSPAS-SARSAT Secretariat Contribution Program	Defence operations improve peace, stability and security wherever deployed	Summative Evaluation	Completed	June 2010
Evaluation of Security and Defence Forum (SDF) Class Grant Program	Care and Support to the Canadian Forces and Contribution to Canadian Society	Summative Evaluation	Completed	June 2010
Evaluation of the Canadian Landmines Fund Phase II	Care and Support to the Canadian Forces and Contribution to Canadian Society	Summative Evaluation (Canadian International Development Agency (CIDA)-led)	Completed	June 2010
Evaluation of the NATO Contribution Program	Defence operations improve peace, stability and security wherever deployed	Summative Evaluation	In Progress	June 2011
Evaluation of Land Force Readiness and Training	Defence operations improve peace, stability and security wherever deployed	Impact Evaluation	In Progress	June 2011
Evaluation of Civil Pension and Annuities:  Mr. R.P. Thompson	Care and Support to the Canadian Forces and Contribution to Canadian Society	Summative Evaluation	In Progress	June 2011
Real Property Acquisition & Disposal	Resources are acquired to meet Government Defence Expectations	Impact Evaluation	In Progress	November 2011
Chemical, Biological, Radiological, Nuclear (CBRN) Research and Technology Initiative (CRTI)	Resources are acquired to meet Government Defence Expectations	Impact Evaluation	In Progress	November 2011
Policing and Security Vancouver 2010 Olympics	Defence operations improve peace, stability and security wherever deployed	Summative Evaluation (RCMP-led)	In Progress	November 2011
Security and Public Safety for the G8 and G20 Summits	Defence operations improve peace, stability and security wherever deployed	Summative Evaluation (RCMP-led)	In Progress	November 2011
CF Recruiting and Basic Individual Military Qualification Training	Resources are acquired to meet Government Defence Expectations	Impact Evaluation	In Progress	FY 2012/13
Situational Awareness	Defence operations improve peace, stability and security wherever deployed	N/A	Cancelled	N/A
Conference of Defence Associations	Care and Support to the Canadian Forces and Contribution to Canadian Society	N/A	Cancelled	N/A