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Status Report on Major Crown Projects

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) Omnibus Project

Canadian Forces Supply System Upgrade (CFSSU)

Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project

Canadian Search and Rescue Helicopter Project

CF18 Modernization Project

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

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)

Joint Support Ship (JSS)

Light Utility Vehicle Wheeled (LUVW)

Main Battle Tank

Marine Security Operations Centres

Maritime Helicopter Project (MHP)

Material Acquisition and Support Information System (MASIS)

Medium- To Heavy-Lift Helicopter (MHLH)

Medium Support Vehicle System Project (MSVS)

Military Automated Air Traffic System (MAATS) Project

Protected Military Satellite Communications (PMSC)

Submarine Capability Life Extension

Airlift Capability Project – Strategic (ACP-S)

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

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors:

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

Major Milestones:

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

Progress Report and Explanations of Variances: The project received Effective Project Approval from Treasury Board on June 22, 2006 for the purchase of four Strategic aircraft, setup of in-service support for 20 years, ancillary contracts and project office. The contract with the Boeing Company for the Direct Sales Contract was established on February 1, 2007. A Foreign Military Sales case, through the United States Air Force to Boeing, for worldwide in-service support was established on January 31, 2007. The first two aircrafts have been accepted on schedule and have already completed several operational missions. The project office is currently working on the implementation phase in support of this acquisition.
Industrial Benefits: Industrial and Regional Benefits (IRBs) are equivalent to 100% of the acquisition contract, Boeing's share of the in-service support Foreign Military Sales contract value and the value of the engines. (A separate IRB agreement was negotiated with Pratt and Whitney USA for the value of the engines for the C-17). The three IRB agreements total $1.9B. Boeing and Pratt and Whitney USA are currently searching for Canadian capability to fulfill their obligations. All regions of Canada will benefit from these contracts.

Airlift Capability Project – Tactical (ACP-T)

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

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors:

Prime Contractor Lockheed Martin Corporation, having a place of business at Marietta, Georgia, USA

Major Milestones:

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

Progress Report and Explanations of Variances: Lockheed Martin Corporation provided a response to the RFP on August 30, 2007. The Department of National Defence received Effective Project Approval through Treasury Board on December 13, 2007.
Industrial and Regional Benefits: This procurement will provide industrial regional benefits equivalent to 100% of the contracted value for both the capital acquisition and in-service support. For the in-service support portion, 75% of the contract value will be direct work performed by Canadian companies. The selected contractor will be required to identify, as specific work packages, 60% of the total acquisition commitment. These Industrial and Regional Benefits requirements will be negotiated and accepted by Industry Canada prior to contract signing.

Arctic/Offshore Patrol Ship(AOPS)

Description: The Arctic/Offshore Patrol Ships (AOPS) has been established in order to deliver to the government of Canada a naval ice-capable offshore patrol ship to assert and enforce sovereignty in Canada’s waters including the Arctic. When the project completes, the six to eight fully supported AOPS delivered to the Canadian Forces will be capable of:
- conducting armed sea-borne surveillance of Canada's waters, including the Arctic;
- providing government situational awareness of activities and events in these regions; and
- cooperating with other elements of the Canadian Forces and other federal government departments to assert and enforce Canadian sovereignty, when and where necessary.
Project Phase: Definition

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors: No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval, planned for 2009.

Major Milestones:

Major Milestones	Date
Treasury Board Preliminary Project Approval	May 31, 2007
Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP)	November 2007
DELMS RFP Closes	January 2008
Memorandum to Cabinet	January 2008
DELMS Contract Award	March 2008
Effective Project Approval (SS(EPA))	Winter 2009
Award of Implementation Contract	2009
Delivery of First Ship	Fall 2013
Initial Operating Capability (IOC) of First Ship	Fall 2014
Project Complete	Summer 2020

Progress Report and Explanations of Variances: The project continues to progress steadily since obtaining Preliminary Project Approval in May 2007. Treasury Board granted expenditure authority of $42.465M (BY), full up including GST, for definition phase. Treasury Board also acknowledged the indicative full up cost of $3,067M (BY) including GST, for acquisition. So far, no variances in cost estimates have been identified.
Industrial and Regional Benefits:Industrial and Regional Benefits (IRBs) for this project are equivalent to 100% of the contracted value for the capital acquisition. Should the government decide during Project Definition to pursue a long-term In-Service Support contract, Industry Canada will recommend the IRB requirements at that time.

Armoured Personnel Carriers (APC)

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

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor General Dynamics Land Systems - Canada, London, ON

Major Milestones

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

Progress Report and Explanation of Variances: In August 1995, the Government approved in principle the procurement of up to 651 APCs. In January 1997, the Government announced the award of a contract to General Dynamics Land Systems – Canada (GDLS-C) to build 240 new eight-wheel-drive APCs. The contract contained three options for an additional 120, 120 and 171 APCs. All three options have been exercised. All vehicles were delivered by October 2007.
The vehicles are equipped and configured to meet the demands of operational employment at the battle group level by Land Force infantry elements. The APC vehicle will provide a rapid response capability, both strategic and tactical, allowing the Canadian Forces to meet all tasks currently envisaged.

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

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

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

Canadian Cryptographic Modernization Program (CCMP) Omnibus Project

Description: The Canadian Cryptographic Modernization Program (CCMP) is a 12-year program (fiscal year 2004-2005 to 2015-2016) that will modernize the Government of Canada’s aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada’s ability to establish secure communications both nationally and internationally. The CCMP Omnibus Project includes the following sub-projects:
1. Secure Voice / Telephone Re-key Infrastructure
2. Secure Voice / Telephone Replacement
3. Classified Security Management Infrastructure
4. Combat Identification Replacement
5. Link Encryption Replacement
6. Network Encryption Replacement
7. Secure Radio Replacement
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 & Agencies	Government of Canada departments & agencies using cryptographic equipment to protect classified information

Prime and Major Subcontractors

Prime Contractor N/A

Major Sub-Contractors Various allied manufacturers of cryptographic equipment

Major Milestones

Project / Sub-project Major Milestones	Date
a. Preliminary Project Approval for the CCMP Omnibus Project	March 7, 2005
b. Preliminary Project Approval for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure	November 2, 2006
c. Secure Voice/Telephone Re-key Infrastructure – Completed	March 2008 (being revised)
d. Secure Voice/Telephone Replacement – Completed	March 2008 (being revised)
e. Classified Security Management Infrastructure – Phase 1A Completed	2010
f. Link Encryption – Phase 1 Completed	2010
g. Classified Security Management Infrastructure – Phase 1B Completed	2011
h. Network Encyption Replacement – Completed	2011
i. Classified Security Management Infrastructure – Phase 2 Completed	2014
j. Classified Security Management Infrastructure – Phase 3 Completed	2016
k. Combat Identification Replacement – Completed	2016
l. Link Encryption – Phase 2 Completed	2016
m. Secure Radio Replacement – Completed	2016
n. CCMP Omnibus Project – Completed	2016

Progress Report and Explanations of Variances: On March 7, 2005, Treasury Board granted Preliminary Project Approval to the CCMP omnibus project at an estimated cost of $839M with expenditure authority for the project definition phases and management of the program at a substantive cost of $80M.
On November 2, 2006, Treasury Board granted Preliminary Project Approval to the Classified Security Management Infrastructure project at an estimated cost of $182M with expenditure authority for the implementation of Phase 1A at a substantive cost of $31M.

The Classified Security Management Infrastructure Phase 1A implementation is in progress and Phase 1B definition is complete. The Project Office is currently seeking expenditure authority for Phase 1B implementation and Phase 2 definition.

Link Encryption Replacement is in progress.

The CCMP is currently running under budget. PPA approval was received late in the fiscal year for both the CCMP Omnibus Project (March 7, 2005) and the Classified Security Management Infrastructure (November 2, 2006), causing spending to lag behind the approved cash flow. No significant contingency funds have been expended since the beginning of the Omnibus Project. The sole contingency expenditure to date is $10K which was required for Classified Security Management Infrastructure Phase 1B project definition.

The following completion dates have changed from those recorded in the CCMP Omnibus Project PPA approved on March 7, 2005.
- Secure Voice Re-key Infrastructure project closure was moved from June 2007 to March 2008 due to delays in receiving software updates from the US. The completion date for this sub-project is currently being revised.
- Secure Voice/Telephone Replacement was completed for the majority of Government of Canada departments and agencies by September 2007. The completion date for this sub-project is currently being revised because of technical difficulties encountered with some implementations.
- Classified Security Management Infrastructure Phase 1 completion was moved from 2008 to 2011. Phase 1 was divided into Phase 1A and 1B to reduce the complexity of managing the project.
- Combat Identification Replacement completion has been moved from 2010 to 2016 due to changes in the US program schedule.
- Classified Security Management Infrastructure Phase 2 completion was moved from 2011 to 2014 due to delays in the US Key Management Infrastructure program.
Industrial Benefits
N/A

Canadian Forces Supply System Upgrade (CFSSU)

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

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors:

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

Major Milestones:

Major Milestones	Date
Contract Award	January 1995
Initial Site Installation	December 1995
Warehouse Management Information System Delivery	July 1997
Test Development Centre Delivery	October 1999
Commence System Development	November 1999
Complete System Development	March 2001
Commence System Pilot	June 2001
Complete System Pilot	August 2001
Commence System Rollout	September 2001
Complete System Rollout	November 2002
projectClose-out (E Status)	September 2004
projectClose-out (I Status)	March 2008

Progress Report and Explanations of Variances: Treasury Board initially approved the CFSSU project with an estimated cost of $289.3M. The April 2000 Treasury Board approved the de-scoping of certain functionality and an increase to project contingency funding of $9.8M. In addition, $5M was approved in order to permit DND the option of restoring the Distribution Resource Planning (DRP) component. The Implementation Phase of DRP was de-scoped and the project budget remained at $304.1M.
The CFSSU Project has been transferred from implementation to close-out in September 2004. Close-out funding is $3.6M. On March 9, 2006, DND Program Management Board approved the usage of close-out funds for the project; these funds are to be used until fully expended or the work is completed.

The CFSSU project is to be completed by July 31, 2008.

Industrial and Regional Benefits:

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

Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project

Description: The purpose of the Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project is to acquire helicopters in support of national and international tactical aviation roles. The project supports the Land Force, Air Force, Deputy Chief of Defence Staff (DCDS) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. It replaces three aging helicopter fleets – the CH118 Iroquois, the CH135 Twin Huey and the CH136 Kiowa. The Bell 412CF/CH146 was procured as a single role multi-mission helicopter capable of supporting a majority of the tasks previously undertaken by fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements of the CFUTTH to include the tactical lift of troops and equipment, logistical lift, reconnaissance and surveillance, direction and control of fire, aero-medical support and casualty evacuation, command and liaison, and communications assistance. These mission capabilities are employed in support of DND operational commitments, United Nations peacekeeping missions, and support to other Government Departments and Agencies, including Aid of the Civil Power.
The project has delivered 100 Bell 412CF/CH146 Griffons, a flight simulator, composite maintenance trainer, facilities, mission kits (including defence electronic warfare suites), as well as other equipment, documentation and services.
Project Phase: Implementation

Lead and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestones	Date
Contract Award	September 1992
Critical Design Review	April 1993
First Helicopter Delivery	March 1995
Simulator Acceptance	June1996
Last Helicopter Delivery	February 1998
Project Completion	November 2009

Progress Report and Explanation of Variances: This project receivedCabinet approval on April 7, 1992 and Treasury Board approval on September 8, 1992, with an original budget of $1.293B. Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in November 2009 for approximately $200M less than the initial Treasury Board budget approval.

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

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

Canadian Search and Rescue Helicopter Project

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

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

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

Progress Report and Explanation of Variances: Treasury Board (TB) granted original Preliminary Project Approval on February 8, 1996, providing Expenditure Authority for $3.3M for Definition Phase activities and approval-in-principle for $704.2M. An amendment to the Preliminary Project Approval was granted on April 24, 1997, providing Expenditure Authority for $6.4M for total Definition Phase activities and approval-in-principle for $708.2M.
Treasury Board provided Effective Project Approval on April 2, 1998 including Expenditure Authority for $788.0M (BY) net of GST, which included Definition funding expenditures of $6.4M.

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

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

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

It should be noted that although Effective Project Closure was achieved on the September 15, 2004, work is still ongoing and will remain so for many years to come. The Major Milestones still outstanding are tied to a three year Technical Publication Revision Service which is not expected to begin until fiscalyear 2008-2009, and a number of milestones related to outstanding aircraft deficiencies which are expected to continue over the next three years and perhaps beyond.

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

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

CF18 Modernization Project

Description: The CF188 is Canada’s only fighter aircraft. The CF188 fleet, based on 1970s technology, was acquired by Canada in 1982 and had an original Estimated Life Expectancy (ELE) of 2003. The requirement to modernize aircraft systems was recognized at the outset and fleet modernization was originally planned to commence in the early 1990s. DND conducted an airframe structural test program aimed at determining the economic life of the airframe with an objective of extending the airframe life to the 2017 – 2020 timeframe. In response to documented avionics system deficiencies, the CF188 Modernization project was initiated.
The CF188 Modernization project is composed of 17 different projects. Seven of these projects represent the bulk of the work to be done and are grouped under the CF 188 Incremental Modernization Project (CF 188 IMP). The remaining 10 smaller projects include associated systems such as the Night Vision Imaging System (NVIS), Air Combat Manoeuvring Instrumentation (ACMI), Precision Guided Munitions (PGM), Advance Multi-role Infrared Sensor (AMIRS), and others. To acquire and implement these projects, TB has approved $2.65B full-up cost (GST included).

The 7 projects included in CF 188 IMP are divided into two installation and integration phases. Phase I (Engineering Change Proposal 583 (ECP 583)) integrated core avionics that formed the foundation upon which other CF188 IMP projects could be installed and integrated. Phase II of the modernization effort consists of ECP 583 Revision 2 (R2), developed by McDonnell Douglas Corp, a wholly owned subsidiary of Boeing Company, for Canada, and the United States Marine Corps that will procure, install, and integrate the major and most complex systems of Phase II.
Project Phase: Implementation

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors:

Phase I and Phase II

Prime Contractor Boeing / McDonnell Douglas, St Louis, Missouri,
USA

Major Sub-Contractors L3 Canada MAS, Mirabel, QuebecCanada

Major Milestones:

Major Milestones	Phase I	Phase II
Treasury Board Effective Project Approval	August 22, 2000	October 25, 2004
Contract - Awarded	March 29, 2001	February 15, 2005
First Aircraft delivery	May 14, 2003	July 10, 2007
Last Aircraft delivery	August 31, 2006	March 19, 2010
Implementation - Project Closed-Out	December 31, 2008	September 30, 2010

Progress Report and Explanations of Variances: Phase I of the IMP project received Treasury Board approval on August 22, 2000, with a full up cost of $1,158M (BY) (GST included). The prime contract was awarded to the Boeing Company on March 29, 2001. Engineering Change Proposal 583 procured, installed and integrated the following avionics systems: a new radar, a jam resistant secure communications, a Combined Interrogator / Transponder (CIT), a Stores Management System (SMS) and integrated an Embedded Global Positioning / Inertial Navigation System (EGI). The first Squadron received modernized CF188 aircraft in November 2003. The last of 80 CF188s to be modernized under Phase I was delivered on schedule in August 2006. All Canadian Fighter Squadrons are now flying the modernized aircraft with extremely positive feedback on its state-of-the-art capabilities.
Phase II received TB Effective Project Approval on October 25, 2004 for a substantive cost of $476M (BY) (GST included). The commercial sale contract was awarded to Boeing on February 15, 2005. Three of the subsystems to be installed are being procured via Foreign Military Sales (FMS) with the US Navy (Helmet Mounted Display (HMD), Multi-functional Information Distribution System (MIDS) & ALE-47 Counter Measures Dispensing System) and one is being purchased commercially (Multi-purpose Display Group (MDG)) under a joint program with the Royal Australian Air Force. The following items are also included in the ECP 583R2 Project: Multi-purpose Display Group (MDG), Cockpit Video Recorder (CVR), and the Naval Aircrew Common Ejection Seat (NACES). ECP 583 R2 is now in full implementation. To date a total of 11 of 79 R2 jets have been delivered. The last Phase II production aircraft is scheduled for modernization by the middle of 2010. The remaining funds are apportioned to the number of smaller sub projects.

Industrial and Regional Benefits:

ECP 583: Industrial and Regional Benefits are equivalent to 75% of the contract value on this project. The Contractor, McDonnell Douglas Corp, a wholly owned subsidiary of Boeing Company, has committed to deliver Industrial and Regional Benefits of $377M US. Boeing has currently satisfied $340M US of their obligation to the Government of Canada. The remaining $37M US will need to be completed by the end of 2008. Boeing has been working with industry in all regions of Canada on this project.

ECP 583 R2 Industrial and Regional Benefits are equivalent to 100% of the contract value on this project. The Contractor, McDonnell Douglas Corp, a wholly owned subsidiary of Boeing Company, has committed to deliver Industrial and Regional Benefits of $137M US. They have also committed to a 25% direct requirement. Boeing has currently satisfied approximately $39M US of their obligation to the Government of Canada. The remaining $97M US will need to be completed by the end of 2012. Canadian industry in the following regions of Canada will benefit from the CF188 Modernization Project.

Region	Benefits Phase I	Benefits Phase II
Atlantic Canada	5M	0.153M
Québec	158M	0.898M
Ontario	152M	38M
Western Canada	25M	0.615M
Unallocated	37M	97M
Total	$377M	$136.6M

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

Description: The HCM/FELEX project is the principal component of the overall HALIFAX Class modernization (HCM) initiative. The project will plan and manage HALIFAX Class mid-life refits, acquire the major elements of the new combat system, and deliver stability enhancements, degaussing improvements and a Commander Task Group capability in four ships. As the Design Integration Authority for the HCM, PM HCM/FELEX is responsible for the ship level design integration of all elements of the HCM including any unique/specific engineering changes required to address integration requirements. To ensure that the overall modernization initiative is achieved in a timely, efficient and coordinated manner, the HCM/FELEX project will conduct overall design integration, coordinate schedules, manage inter-project risk, and manage equipment installation during the mid-life refits. Major equipment acquisitions through HCM/FELEX will include a modernized Command and Control System, Multi-Link, Identification Friend or Foe Mode S/5, upgrades to the radars, new Electronic Support Measures System, upgrades to the Internal Communications system, and an upgraded Harpoon Weapon System. These acquisitions will both sustain current capability and contribute to the new littoral operations role of the HALIFAX Class.
Implementation of the HCM/FELEX project will occur through three principal contracts: two Multiship Contracts (MSC) for docking work periods/refits and one Combat System Integration (CSI) contract to develop, procure and install the majority of the combat system elements of the project.
Project Phase: Definition

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

In-Service Support Contractor (Class Design Agent)	Fleetway Incorporated, Halifax, NS, Canada
Internal Communications System	DRS Flight Safety, Kanata, ON, Canada

Major Milestones

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

Progress Report and Explanation of Variances: Treasury Board approved the consolidation of the five projects listed above into the HALIFAX Class Modernization/Frigate Life Extension Project and provided Expenditure Authority for Part 1 (the Non-CSI component) of the implementation at a substantive full-up cost estimate, including GST, of $822.6M (BY) on June 7, 2007.
After providing industry with detailed insight into the project’s combat systems integration (CSI) requirements and technical documentation, three qualified contractors were selected through a Solicitation of Interest Qualification process. All three contractors attested, in writing, that they could deliver the design/build/installation and set-to-work of all twelve CSI systems, including the upgrade of all system trainers and delivery of a complete Integrated Logistics Package at a firm fixed price of $1,100M.

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

A Request for Proposal for the Multi-Ship Contracts (docking work periods and refits) resulted in two successful bidders, Halifax Shipyard on the east coast and Washington Marine Group (Victoria Shipyard) on the west coast. Final negotiations with both shipyards have been completed and award of contracts is expected in March 2008.
Industrial Benefits: The HCM/FELEX input into the long-term Multi-Ship refit contracts will provide approximately, including GST, $273M (BY) in industrial benefits to east and west coast shipyards. These contracts will provide continuous workflow and thus sustainment of a skilled ship repair work force through most of the next decade. The CSI component of the project will provide approximately $1,100M in industrial benefits to the combat system industry through the next 10 years.

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)

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

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

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

Progress Report and Explanations of Variances: Given the ISTAR project staffs are still managing the UOR procurement for Op ATHENA and Op ARCHER and that the approval process is taking longer than forecasted it is expected that the project will be completed on the original schedule. Although, there is as much as a year’s delay in achieving some of the ISTAR project approval, delivery after effective approval are either on schedule or ahead of schedule. ISTAR initial operational capabilities have been procured and the overall project is expected to complete on the original schedule.
Delivery of equipment actually started with UORs in Op Athena, and final deliveries are scheduled out to 2013. The currently approved sub-projects in support of Op Athena and Op Archer are:
1. UAV UOR Op Athena
2. BLOS Op Archer
3. MEWT Op Archer
4. Mini UAV UOR Op Archer
5. AWLS Op Archer
6. LCMR Op ATHENA
In addition the Data Link Communications project received TB approval in December 2006 and PWGSC received TB contract approval for radios February 22, 2007. The FMS cases for 1300 radios has been accepted and initialdelivery of equipment is anticipated for March 2008. Some of this equipment is needed for Op ATHENA.
Industrial Benefits: A competitive procurement process was held for the UAV UOR. Oerlikon Contraves won with Sagem SA as the manufacturer of the SPERWER UAV system. How Canadian industry in Canada will benefit from the ISTAR project will be determined during the approval of the implementation procurement strategy for each sub-project.

Joint Support Ship (JSS)

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

Leading and Participating Departments and Agencies:

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

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

Major Milestones:

Major Milestones	Date
Memorandum to Cabinet	April 14, 2004
Treasury Board Preliminary Project Approval - (SS-PPA)	November 24, 2004
Invitation for Bids Posted on MERX	June 27, 2006
Project Definition – Contract Award	December 1, 2006
Treasury Board Effective Project Approval - (SS-EPA) – Approval	September 2008
Project Implementation - Contract Award	2008
First Delivery	2012
Initial Operational Capability (IOC)	2013
Full Operational Capability (FOC)	2016
Project Close-out	2016

Progress Report and Explanations of Variances: The project continues to progress steadily since obtaining Preliminary Project Approval in November 2004. The Minister of Public Works and Government Services Canada (PWGSC) awarded two Project Definition contracts on December 1, 2006. Treasury Board granted expenditure authority of $72.2M, full up including GST, for the pre-qualification and definition phases. Treasury Board also acknowledged the indicative full up cost of $2,012.9M (BY), including GST, for implementation. The total full up indicative cost including GST, for implementation is now $2.1B(BY). This new cost figure reflects an increase of $16M to accommodate the recently announced acquisition of the Main Battle Tanks, and $44M that will be funded out of the current departmental program to assist in closing the Systems Requirements Document (SRD) affordability gap.
Industrial and Regional Benefits: Industrial and Regional Benefits (IRBs) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.

Light Utility Vehicle Wheeled (LUVW)

Description: Light utility vehicles are highly mobile and essential to facilitating the tactical command of combat, combat support and combat service support units, to assist in the gathering and dissemination of information and to liaison within and between field formations.
The LUVW Project mandate is to replace Canadian Iltis vehicles with two separate vehicle acquisitions: 1,159 Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and 170 Armour Protection Systems ($241.4M), for use by field force units; and 1,061 militarized commercial off-the-shelf (Mil COTS) vehicles (GM Silverado) ($65.4M) for use primarily by the Reserve Force for a total project cost of $306.8M.
Project Phase: Implementation

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

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

Major Milestone (Phase 2) Mil COTS
Award of Contract	October 2002
First Full Production Delivery	October 2003
Final Production Delivery	December 2004
Effective Project Completion	December 2008

Progress Report and Explanation of Variances:Project is in full implementation. The LUVW SMP (G Wagon) contract was awarded to Mercedes Benz Canada on October 28, 2003. Fielding of the G Wagon started in February 2004, five months ahead of schedule. A total of 60 basic and 24 C&R/MP (20 Command & Reconnaissance and 4 Military Police) LUVW G Wagons were delivered directly from the manufacturer’s plant in Graz, Austria to Kabul. In 2005 and early 2006, an additional 86 G Wagons were delivered to Kandahar. Delivery of all armour kits was completed in December 2005 and delivery of the total quantity of 1,159 vehicles was completed in November 2006.
The LUVW Mil COTS contract was awarded to General Motors in October 2002 with the first vehicle delivery received in October 2003. All 1,061 vehicles have been delivered as of December 2004.

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

The level of confidence in the LUVW is generally high. User feedback from Op ATHENA/Op ARCHER on the G Wagon has been positive and, even with the high mileage placed on the vehicles in Afghanistan, the fleet serviceability remains steady at 95%. That said, there have been problems of body cracks in the fleet, particularly those vehicles operating in harsher environments such as Afghanistan. The Project Management Office (PMO) has been working to resolve this issue.

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

The project was reduced to a staff of three in July 2007. This drawdown in staff was found to be too severe given the challenges of fielding the fleet directly to Afghanistan and the optional purchase of 357 additional G Wagons. Consequently, there have been delays to the contracting and delivery of the special tools and test equipment and the project has been extended to December 2008.

The remaining high cost items include the delivery of Integrated Logistics Support manuals and special tools and test equipment. The PMO will also work with PWGSC to migrate the Interim Support Contract into a Long Term Support Contract. Full Operational Capability will be declared after delivery of the special tools. This is estimated to take place between June and September 2008, followed by effective project close-out in December 2008.
Industrial Benefits: The industrial benefits are required for Phase 1 for a value 100% of the contract value. Latest report from Industry Canada indicates that Mercedes Benz Canada has exceeded the industrial regional benefit goals by $300M. There are no mandated industrial benefits for the Mil COTS contract.

Main Battle Tank

Description: The Tank Replacement Project will seek to replace Canada's aging Leopard C2 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The Tank Replacement Project is broken into two phases. Phase 1 consists of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT) plus 2 Armoured Recovery Vehicles (ARV) from the German Government for immediate deployment to Afghanistan and the purchase of up to 100 surplus Leopard 2 MBT from The Netherlands Government. Phase 2 consists of the upgrades to the purchased tanks.
The project received Treasury Board (TB) approval for Phase 1 March 29, 2007 and will return to TB to seek Effective Project Approval (EPA) for phase 2. The project is capped at $650M.
Project Phase: Implementation

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors:

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

Major Milestones:

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

Progress Report and Explanations of Variances: Due to schedule constraints to meet initial operating capability, the Leopard 2 A6M tanks deployed with slat armour vice the original enhanced armour modules.
Mine ploughs/mine rollers and dozers will not be available on the loaned tanks. Therefore some Leopard 1 C2 will remain in theatre.

Staffing for EPA has been initiated. There may be scheduling and cost challenges, due to the fact that phase 2 upgrades have to be completed in Canada. The project team is currently analyzing.
Industrial and Regional Benefits(IRB): No IRBs are required for Phase 1. The industrial benefits for Phase 2 will be determined as part of the EPA process. The Project Management Office and PWGSC is clarifying the Intellectual Property (IP) ownership for the tanks and variants. The outcome of this may affect the transfer of the IP and potentially Canadian industrial benefits.

Marine Security Operations Centres

Description: The National Security Policy, released in April 2004, provided government direction to the Department of National Defence to investigate the requirement for a “Domestic Maritime Inter-Agency Capability.” The Marine Security Operations Centres Project, which will require the participation of specific federal agencies having a vested interest in maritime security, was established to conform to this direction.
The Marine Security Operations Centres Project will establish the Marine Security Operations Centers, which will be manned by core partner personnel. In addition, the project will ensure that the Marine Security Operations Centres will have the capacity in terms of personnel, technology and physical infrastructure resources that will allow them to bring to bear all civilian and military assets necessary to detect, assess and support a response to a direct or indirect marine security threat.
Project Phase: Definition

Leading and Participating Departments and Agencies:

Lead Department	Department of National Defence
Contracting Authority	Public Works and Government Services Canada Defence Construction Canada
Participating Departments and Agencies	Canada Boarder Services Agency Department of Fisheries and Oceans/Canadian Coast Guard Public Safety Canada/Royal Canadian Mounted Police Transport Canada

Prime and Major Sub-Contractors:

Prime Contractor (Business Transformation and Integrated Information Environment)

The project is in the process of establishing its primary goods and services contract. The Stage 1 RFP technical proposal evaluations are being conducted with the objective of establishing a qualified bidders list by March 2008. Stage 2 RFP development is progressing with RFP release to qualified bidders tentatively scheduled for summer 2008 while contract ward is tentatively scheduled for spring 2009.

Prime Contractor (Construction)

The project signed a contact with Smith Carter Architects and Engineers Inc., Winnipeg, Manitoba in December 2005 for construction architectural and engineering consulting services for initial definition phase work. A new RFP will be released this year with a new architectural and engineering consulting services contract tentatively in place by spring 2009 for the remaining definition phase and all of the implementation phase work.

The project is tentatively scheduled in 2010 to sign general construction contracts for the construction of the new MSOC buildings on both coasts.

Major Milestones:

Major Milestones	Original Dates	Revised Dates
Preliminary Project Approval #1	December 2005	N/A
Initial Operating Capability	April 2007	October 2008
Preliminary Project Approval #2	April 2007	May 2010
Effective Project Approval	April 2008	June 2011
Final Operating Capability	September 2010	September 2014
Project Close out	March 2011	March 2015

Progress Report and Explanations of Variances:
1. Overall the project is currently running 48 months behind schedule. The Project Definition phase is 38 months behind schedule primarily due to the issues outlined below:
  - Initial Operating Capability. Delayed 18 months to October 2008 due to the requirement to renovate existing facilities to accommodate increase in personnel and supporting business/information management systems;
  - Preliminary Project Approval #2 (Effective Project Approval - Construction). Delayed 37 months to May 2010 due to delays in identifying functional space requirements and the complexity of dealing with five (5) diverse stakeholders;
  - Effective Project Approval (Business Transformation/Integrated Information Environment). Delayed 38 months to June 2011 due to professional services procurement delays; legal option delays and obtaining approvals of critical requirements documentation; and
  - Final Operating Capability. Delayed 48 months to September 2014 due to delays in obtaining Preliminary Project Approval #2 (Effective Project Approval - Construction) and Effective Project Approval (Business Transformation/Integrated Information Environment) approvals. The funding to support the work to develop and deliver Final Operating Capability is not available until Preliminary Project Approval #2 and Effective Project Approval approvals are obtained. In addition, Final Operating Capability cannot be declared until the business transformation/integrated information environment solution has been installed in the completed buildings.
2. There is a high probability that the current project definition budget will be insufficient due to the increase in Initial Operating Capability and construction definition work. The project is working on defining the extent of the budget short fall and will be reporting to senior management by mid 2008.
Industrial and Regional Benefits (IRB):
1. Marine Security Operations Centres Project will offer, on a competitive basis, important business opportunities to most regions of the country. Regions in which the federal government has established special economic development programs to promote job creation and regional prosperity include the Atlantic Provinces, Newfoundland, Quebec and British Columbia. The Marine Security Operations Centres Project will provide small and medium size companies, as part of a consortium or partnerships, the opportunity to gain invaluable experience and product/service exposure. This exposure could lead to further business opportunities with either DND, other government departments or private industry. These companies will also have a further opportunity to play a part in the Marine Security Operations Centres in-service support contracts.
2. Marine Security Operations Centres Project will be convening a Senior Project Advisory Committee meeting (senior procurement review committee) in 2008 in order to review procurement strategy in terms of the project primary contract request for proposal. This review will also address the Industrial Regional Benefits component of the primary contract.

Maritime Helicopter Project (MHP)

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

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors:

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

Major Milestones:

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

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

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

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

Material Acquisition and Support Information System (MASIS)

Description: The mission of the Material Acquisition and Support Information System (MASIS) project is to provide a Department of National Defence (DND) integrated materiel acquisition and support information system that enables the cost-effective optimization of weapon/equipment system availability throughout the life cycle. The scope of MASIS includes all end-to-end information requirements within DND/CF related to the materiel acquisition and support functions which are comprised of systems engineering, integrated logistics support (ILS), equipment configuration, technical data management, asset management, maintenance management, project management, performance management, operational support, business management, decision support analysis and contract management.
Project Phase: Implementation – Phase 5

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

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

Major Milestones	Date
Definition Phase
Preliminary Project Approval - Expenditure Authority for Phase 1	June 10, 1998
Contract Awarded for Prime Systems Integrator	December 14, 1998
MASIS system - Go Live Phase 1 (202 Work Depot Montreal)	September 1, 1999
Implementation Phase
Expenditure Authority (EPA) 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 15, 2000
Amended Expenditure Authority (EPA) 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 (EPA) for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army.	June 13, 2007
Project Close-out	2012

Progress Report and Explanations of Variances: Following Definition phase approval, EPA for MASIS was granted to DND in June 2000 in the amount of $147.8M. This authority provided the project the means to cover the work under Phases 1 to 3, which have been completed.
The project follows a cyclical approval and delivery methodology. In December 2003, an additional $34.4M was approved to fund Phase 4 of the project. On June 13, 2007, the MASIS project received Treasury Board approval in the amount of $170M for Phase 5. Planned completion of project is 2012 timeframe.
Industrial Benefits: All industrial benefits are attributed to Ontario since all project expenditures occur in Ontario.

Medium- To Heavy-Lift Helicopter (MHLH)

Description: Over the last decade, the ability to move personnel and equipment by air has become a vital and growing capability requirement for the Canadian Forces in fulfilling a wide range of roles. Canadian Forces operational experience, particularly in current operational theatres, has highlighted the urgent need for medium- to heavy-lift helicopters to support land, amphibious and special operations forces in a threat environment by quickly, efficiently and safely moving large numbers of personnel and heavy equipment from forward deployed bases, thus reducing their vulnerability to attack. Both at home and overseas, medium- to heavy-lift helicopters will provide the Government with a wider range of military options for addressing threats and emergencies than the Canadian Forces’ current helicopter fleets.
The Medium- to Heavy-Lift Helicopter project will deliver the medium to heavy lift helicopter capability to support domestic and international deployments of land forces, special operations and amphibious formations. The project will acquire a minimum of 16 helicopters, integrated logistic support and other related support elements.
Project Phase: Definition

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors:

Prime Contractor The Boeing Company, Philadelphia, Pennsylvania, USA

Major Milestones:

Major Milestones	Date
Memorandum to Cabinet	June 2006
Synopsis Sheet Preliminary Project Approval (PPA)	June 22, 2006
Advanced Contract Award Notice Posted on MERX	July 5, 2006
Revised Preliminary Project Approval – Phased Approach	Spring 2008
Contract Award	Fall 2008
Synopsis Sheet Effective Project Approval	Fall 2009
Contract Amendment – Phase II	Fall 2010
First ACAN Compliant Aircraft	Summer 2011
First MHLH	Summer 2012
Initial Operational Capability (IOC)	Summer 2013
Full Operational Capability (FOC)	Summer 2015
Project Close-out	Winter 2015/2016

Progress Report and Explanations of Variances: The project received Preliminary Project Approval in June 2006, whereby expenditure authority of $8.4M was granted for the definition phase. Treasury Board also acknowledged the indicative cost estimate of $2B (BY) for the total project.
In July 2006, the Government announced, via Advanced Contract Award Notice, its intent to award a contract to the Boeing Company. Definition work is underway, consultation with industry has taken place, a continuous risk management program has been implemented and costing efforts for the implementation phase are progressing.

Contract award has been delayed owing to delays in finalizing Technical Assistance Agreements and the need to conduct additional risk reduction and project definition tasks. In Spring 2008, authority will be requested, through a Revised PPA, to endorse a phased approach to this procurement. This approach consists of a non-recurring engineering and risk reduction phase followed by a production phase.
Industrial Benefits: This procurement will provide Industrial Regional Benefits equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. For the integrated in-service support portion, 75% of the contract value will be direct work performed by a Canadian company. The selected contractor will be required to identify, as specific work packages, 60% of the total acquisition commitment. These industrial and regional benefits requirements will be negotiated and accepted by Industry Canada prior to contract signing.

Medium Support Vehicle System Project (MSVS)

Description:The Medium Support Vehicle System Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. The MSVS project will cost approximately $1.1B (net of GST) and will deliver the following mix of vehicles:
1. medium-sized Standard Military Pattern (SMP) trucks:
  - Up to 1,500 trucks, with options for an additional 650;
  - Up to 150 integrated armour protection systems, with options for an additional 150, and
  - 300 companion military pattern trailers, with options for an additional 240.
2. medium-sized Militarized Commercial Off-the-Shelf (MiLCOTS) vehicles:
  - 800 commercial trucks with militarized components, with options for an additional 500.
3. specially Equipped Vehicles (SEV) Kits:
  - Up to 1,000 special equipment vehicle kits, with options for an additional 150.
Cost, cash flow and schedule estimates will be further refined before the Minister of National Defence seeks effective project approval from Treasury Board.
Project Phase: Definition

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors: Final selection of the prime contractor will occur at Effective Project Approval (EPA).

Major Milestones:

Major Milestones	Date
Memorandum to Cabinet	June 2006
Preliminary Project Approval (PPA)	June 22 2006
Invitation for Bids Posted on MERX - Militarized Commercial Pattern Vehicles	November 15, 2007
Invitation for Bids Posted on MERX - Standard Military Pattern Vehicles	Fall 2008
Invitation for Bids Posted on MERX - Family of Baseline Shelter	Fall 2008
Invitation for Bids Posted on MERX - Special Equipment Vehicle Kits	To be determined
Effective Project Approval - EPA for MilCOTS and SEV Baseline Shelter	Fall 2008
Effective Project Approval - EPA for SMP and SEV Kitting	Fall 2009
Contract Award - Militarized Commercial Pattern Vehicles	Fall 2008
Contract Award - Standard Military Pattern	Fall 2009
Contract Award – Family of Baseline Shelter	Fall 2008
Contract Award - Special Equipment Vehicle Kits	To be determined
First Delivery - Militarized Commercial Pattern Vehicles	Summer 2009
First Delivery - Standard Military Pattern	Winter 2010
First Delivery - Family of Baseline Shelter	Spring 2009
First Delivery - Special Equipment Vehicle (SEV) Kits	To be determined
Delivery Complete - Militarized Commercial Pattern Vehicle	Fall 2010
Delivery Complete – Standard Military Pattern (SMP)	Winter 2012
Delivery Complete – Family of Baseline Shelter	Spring 2011
Delivery Complete - Special Equipment Vehicle Kits	To be determined
Project Close Out	Spring 2013

Progress Report and Explanations of Variances: Treasury Board provided the MSVS project $25.8M (BY) Expenditure Authority for the Definition phase on June 22, 2006. Design and definition work is progressing well incorporating consultation with industry whenever possible. The status of each MSVS Component is outlined below:
1. MilCOTS - The MilCOTS RFP was released to industry November 15, 2007. Bid evaluation is scheduled for Summer 2008 and EPA in Fall 2008.
2. SEV Baseline Shelter – RFP development is progressing well. Draft technical specifications were posted in October 2007 for industry review. Remaining documentation is being developed with an anticipated release of the final RFP in Spring 2008. EPA for this component of the project will be sought in Fall 2008.
3. SMP - In response to current worldwide threats, the department has determined that an increased level of protection is necessary for SMP vehicles. Therefore, the project office has conducted analyses of industry capability, feasibility studies and validation of the current procurement strategy. A draft vehicle technical specification was posted in October 2007 for industry comment. The complete RFP is planned for release in Fall 2008.
4. SEV Kitting - The project office, in concert with the user community, has been able to reduce the number of existing variants (such as types of kitchens, repair shops, workshops, field offices, etc.) from more than 130 to approximately 30. The development of the SEV Kitting RFP although progressing, is highly dependent on the Baseline Shelter Contract Award. The current SEV Kitting procurement strategy is being re-visited with a view to reduce complexity and risk.
The key variance within MSVS is schedule. Delays have been encountered and the single EPA scheduled for Fall 2007 has now been split into two phases: Phase 1 for MILCOTS and SEV Baseline Shelter in Fall 2008 and Phase 2 for SMP and SEV Kitting in Fall 2009. The delays are attributed to the following key factors:
1. Increased protection levels of the SMP vehicles - The inclusion of higher protection levels required the project to validate current industry capability within a competitive procurement environment. Additionally, it has been determined that industry must obtain secret classification levels in order to view the full SMP specifications all leading to delays in the original schedule.
2. Inclusion of Human Factors testing and Vehicle Performance demonstrations - In order to allow manufacturers to demonstrate the functionality and capability of their vehicles as part of the bid evaluation process, additional time has been allocated in the bid response period. This will allow the CF to have a more direct hands-on approach in the selection of equipment but has impacted both the MilCOTS and SMP schedules.
3. Overall manning shortages – Human Resource efforts to fully staff the project have been underway since PPA. The project is currently manned at 85% and striving to attain full capacity.
At this time, Project Close-Out is anticipated for Spring 2013. A continuous risk management program has been implemented and costing efforts for the implementation phase are progressing.
Industrial & Regional Benefits: The target Industrial Regional Benefits (IRBs) is equivalent to 100% of the contract value for the capital acquisition.

Military Automated Air Traffic System (MAATS) Project

Description: A national air traffic system project to automate air traffic services has been initiated by Transport Canada (now NAV CANADA). To ensure that military air operations continue to function effectively, remain compatible with the national system, and keep pace with these enhancements, the Department of National Defence and the Canadian Forces established the Military Automated Air Traffic System (MAATS) Project. The project directly supports the defence objective of conducting air traffic control operations.
The MAATS project will provide the essential equipment and system interfaces necessary to automate data interchange between applications. The project will deliver a stable, sustainable, and operational Air Traffic Management System (ATMS) while providing as much integration as possible with NAV Canada’s Canadian Automated Air Traffic System (CAATS). Where equipment or system interfaces are not currently available, new equipment will be installed. All existing Defence radar systems will be retained and interfaced to the MAATS as appropriate.
Project Phase: Implementation

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestones	Date
Treasury Board Effective Project Approval	July 1993
Contract Award	January 1994
Preliminary Design Review	March 2000
Critical Design Review	January 2001
Factory Acceptance Test	November 2001
Initial Delivery	April 2003
Contract Complete	December 2004
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	July 2007
Initial Operational Capability – First Wing Operational with NAMS II Equipment	November 2007
Full Operational Capability (FOC) – All Wings with delivered Equipment	March 2009
Begin project Close out	April 2009
Project complete	July 2009

Progress Report and Explanation of Variances: Treasury Board initially approved the project with an estimated cost of $179.2M. The project funding was reduced by $15M following departmental review. Partial return of funding was approved at the December 2003 Senior Review Board (SRB). Current departmental funding is $169.2M.
As briefed at SRB on June 30, 2006, the MAATS project objectives were declared unachievable within the existing funding envelope. Given a number of alternative options, MAATS’ Project Management Office (PMO) recommended to cease MAATS development, and continue the project with the implementation of an “in-house” solution coined Phoenix. With the support of the Chief of the Air Staff and ADM(Mat), the Project Management Board (PMB) concurred with the PMO’s recommendation on March 15, 2007. MAATS’ PMO was directed to de-link the project from NAVCanada’s Civilian Automated Air Traffic System (CAATS); concentrate on the re-vitalization and integration of Air Traffic Controller (ATC) information sources at each of the seven wings (Comox, Cold Lake, Moose Jaw, Bagotville, Trenton, Greenwood and Goose Bay); keep military Instrument Flight Rules (IFR) operations at the Wings vice at two Military Terminal Control Centres; and pursue the development and fielding of the Phoenix solution.

Since the approvals were received in July 2007, the Phoenix solution is well on its way upgrading the current Air Traffic Management System capability inclusive of the following sub-systems: the Radar Processor, the Navigational Aids and Meteorological Sub-System (NAMS), the Air Movement Statistics Package and the Flight Data System. Phoenix is based on the proven Radar Processing Display System II (RPDS II), which was certified for Operational Air Worthiness and built on standard commercial off-the shelf (COTS) hardware and open source software, thus keeping technical risk LOW. Installation of Phoenix equipment (NAMS II) at 8 Wing Trenton was completed and Provisional Operational Airworthiness Clearance (POAC) was granted in October 2007, ahead of schedule. Actual close out activities, including a project completion report to Treasury Board will be completed in fiscal 2009–2010.

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

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

Protected Military Satellite Communications (PMSC)

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

Leading and Participating Departments and Agencies

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

Prime Contractor and Major Sub-Contractors

Prime Contractor United States Department of Defense

Major Sub-Contractors To be determined

Major Milestones

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

Progress Report and Explanations of Variances: The PMSC project will be implemented in two phases. Under Phase 1, a Memorandum of Understanding (MOU) with the United States Department of Defense (DOD) will guarantee Canadian participation in their Advanced Extremely High Frequency (AEHF) system. Definition studies for the terminal segment were completed in Phase 1. Under Phase II, the terminal segment will be procured, installed and tested.
On August 25, 1999, Treasury Board granted Preliminary Project Approval to the PMSC Project, with expenditure authority for the implementation of Phase I at an estimated cost of $252M and granted approval for the Department of National Defence to enter into a Military Satellite Communication (MILSATCOM) MOU with the US Department of Defense. The MOU was signed November 16, 1999.

On November 18, 2003, Treasury Board granted Effective Project Approval to the PMSC Project, with expenditure authority for the Implementation of Phase II at an estimated cost of $300M. The total cost is now estimated at $552M.
Industrial Benefits: Under Phase 1, the US Department of Defense has committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations will be permitted to bid on project work. In Phase II, Senior Procurement Advisory Committee (SPAC) endorsed that Terminal acquisition and support will be procured through Foreign Military Sales with installation done through DND managed contracts. Industrial and regional benefits will be sought by Industry Canada at 100% of contract value.

Submarine Capability Life Extension

Description: The Submarine Capability Life Extension (SCLE) project replaced the Oberon class submarine fleet with four existing British Upholder class (renamed Canadian Victoria class) submarines. The project will ensure that Canada preserves its submarine capability within the existing capital budget. The project supports Canada’s ability to conduct surveillance and control of its territory, airspace and maritime areas of jurisdiction, as well as Canada’s ability to participate in bilateral and multilateral operations.
The project delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews.
Project Phase: Implementation

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestones	Date
Treasury Board Approval	June 2, 1998
Main Contract Award	July 2, 1998
Initial Support Contract Award	July 2, 1998
Commence lease 1^st submarine	October 2000
Commence lease 2^nd submarine	October 2001
Commence lease 3^rd submarine	February 2003
Commence lease 4^th submarine	October 2004
Relocate trainers to Canada	June 2003
Lease completed, submarines purchased	April 2009

Progress Report and Explanation of Variances: Canada has accepted all four Upholder submarines from the United Kingdom.
1. Her Majesty’s Canadian Ship (HMCS) Victoria finalized her Canadianization in early 2003 and completed her transit to the west coast of Canada in August 2003. She completed a Repair Work Period in May 2004. Due to the incident onboard HMCS Chicoutimi, the operational pause prevented Victoria from going to sea. Once lifted, Victoria continued operations by progressing her Operational Trials and Evaluation (OT & E) work in defining the vessels weapons envelope. In June 2005 Victoria entered her Extended Docking Work Period (EDWP), currently being conducted in Fleet Maintenance Facility (FMF) Cape Breton, which is scheduled to complete July 2009.
2. HMCS Windsor completed her Canadianization in December 2003. She had begun participating in east coast exercises and patrols during the summer of 2004. Due to the incident onboard HMCS Chicoutimi, the operational pause prevented Windsor from going to sea. Once lifted, she continued with operations on the East Coast. Windsor entered her EDWP in FMF Cape Scott in January 2007, which is scheduled to complete August 2009.
3. HMCS Corner Brook started her Canadianization work in Halifax on January 5, 2004. The modifications required from the Chicoutimi incident were completed as part of her Canadianization work, which completed summer 2006. HMCS Corner Brook is operational and is participating in various exercises and patrols. As the only running submarine a further extension to her materiel certificate is being investigated to ensure one submarine continues to operate through this transition period.
4. HMCS Chicoutimi was handed over to Canada October 2, 2004. On October 5, 2004, while en-route to Canada, she had an electrical incident at sea and was returned to Canada via sealift. She was in Halifax Shipyard Limited (HSL) undergoing damage repairs and Canadianization work, which was expected to be complete in winter 2007. This Extended Docking Repair Work Period (EDRWP) has been cancelled and the submarine commenced an Extended Limited Maintenance Period (ELMP). Some Canadianization Work Period (CWP) Engineering Changes (ECs) are to be implemented during the ELMP. She will enter an EDWP scheduled to commence in 2009.
Effective Project approval was granted to the SCLE project on June 2, 1998 at an estimated total cost of $812.0M (BY) net of GST. The expenditure ceiling was increased $84.8M by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. SCLE project is currently expending to budget.
Industrial Benefits: This project will provide an estimated $200M in direct and indirect industrial benefits. This includes Canadian modifications to the submarines and the relocation of the simulators and trainers to Canada. A further $100M in industrial benefits has taken the form of waivers to provide industrial offsets in the United Kingdom for Canadian companies bidding on defence contracts.

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2008-09

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ARCHIVED - National Defence

Archived Content

Status Report on Major Crown Projects

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) Omnibus Project

Canadian Forces Supply System Upgrade (CFSSU)

Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project

Canadian Search and Rescue Helicopter Project

CF18 Modernization Project

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

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)

Joint Support Ship (JSS)

Light Utility Vehicle Wheeled (LUVW)

Main Battle Tank

Marine Security Operations Centres

Maritime Helicopter Project (MHP)

Material Acquisition and Support Information System (MASIS)

Medium- To Heavy-Lift Helicopter (MHLH)

Medium Support Vehicle System Project (MSVS)

Military Automated Air Traffic System (MAATS) Project

Protected Military Satellite Communications (PMSC)

Submarine Capability Life Extension

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

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

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