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

Start date: 1983-84

End date: ongoing

Fiscal Year for Terms and Conditions: 2011-12

Strategic Outcome: Resources are acquired to Meet Government Defence expectations

Program Activity: Real Property and Informatics Infrastructure Acquisition and Disposal

Description: The Department of National Defence uses the Capital Assistance Program to optimize its infrastructure by seeking cost-effective solutions with eligible recipients who have the mandate and capacity to operate and maintain the infrastructure and who may also benefit from joint use opportunities. Contributions are made to:

• upgrade infrastructure (e.g. roads, sidewalks, and sewers in residential quarters; water treatment plants and water distribution systems that serve operational and non-operational requirements) after it has been transferred from DND to the eligible recipient;
• expand and/or upgrade existing local infrastructure to better support DND requirements (e.g. water treatment plants, water distribution systems, airport runway extensions, roads); and/or
• construct new local infrastructure, such as:
  • community-oriented facilities for shared-use by the Base/Wing and local authorities (e.g. arenas, gymnasiums, swimming pools, community centers);
  • infrastructure to support non-operational requirements such as for residential accommodation (e.g. roads, sidewalks, sewers);
  • infrastructure to support operational requirements (e.g. new access to the Base/Wing).

Expected results:

The immediate expected result is:

• Collaborations with local authorities to upgrade/expand/construct and own and operate public infrastructure and services that DND requires.

The intermediate results are:

• Reduced DND non-core infrastructure;
• Cost-effective development and maintenance of infrastructure, which involves one of the following:
  • reduced operating/capital costs,
  • or cost avoidance,
  • or minimized DND liability; and
• Improved/new/maintained infrastructure for use by DND members and their families

The final expected results are:

• The optimization of DND infrastructure to support the evolving force structure; and;
• Enhanced quality of life in the Canadian Forces.

	($ millions)
	Forecast Spending 2011-12	Planned Spending 2012-13	Planned Spending 2013-14	Planned Spending 2014-15
Total Grants	N/A	N/A	N/A	N/A
Total Contributions	$3.375	$5.450	$5.450	$5.450
Total Other Types of Transfer Payments	N/A	N/A	N/A	N/A
Total Transfer Payments	$3.375	$5.450	$5.450	$5.450

Fiscal Year of Last Completed Evaluation: 2009-10

Decision following the Results of Last Evaluation: Amendment

Fiscal Year of Planned Completion of Next Evaluation: 2014-15

General Targeted Recipient Group: Provinces, Territories, Municipalities, Provincial and Territorial Crown corporations and agencies, other corporations owned or controlled by Provinces, Territories and Municipalities and other organizations that in the normal course of business provide public services (e.g. utilities, such as gas, cable, electricity).

Initiatives to Engage Applicants and Recipients: A two-step contribution agreement is now in place. This is to facilitate and encourage recipients to engage early in the process as DND is now in a position to transfer funds at the design stage via a first contribution agreement. Once the design and any other aspects (e.g. asset transfer, service agreements, etc.) are agreed upon, a second contribution agreement can be signed with the recipient and the project be implemented.

 

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

Fiscal Year for Terms and Conditions: 2010-11

Strategic Outcome: Defence Operations will improve peace, security and stability wherever deployed

Program Activity: International Peace, Stability and Security

Description: The MTCP builds the capacities of member countries' militaries through language training, and professional development courses including command and staff instruction, and peace support operations training.

Expected results:

Expected results of this contribution program are:

• to enhance peace support operations interoperability among Canada's partners to lessen the operational burden on Canada;
• to expand and reinforce Canadian bilateral defence relations;
• to promote Canadian demographic principles, the rule of law and the protection of human rights in the international arena; and
• to achieve influence in areas of strategic interest to Canada.

	($ millions)
	Forecast Spending 2011-12	Planned Spending 2012-13	Planned Spending 2013-14	Planned Spending 2014-15
Total Grants	N/A	N/A	N/A	N/A
Total Contributions	$11.600	$11.600	$11.700	$11.800
Total Other Types of Transfer Payments	N/A	N/A	N/A	N/A
Total Transfer Payments	$11.600	$11.600	$11.700	$11.800

Fiscal Year of Last Completed Evaluation: 2009-10

Decision following the Results of Last Evaluation: Continuation

Fiscal Year of Planned Completion of Next Evaluation: 2014-15

General Targeted Recipient Group: Developing non-NATO member countries

Initiatives to Engage Applicants and Recipients: The Director of Military Training and Cooperation engages the program's potential and actual recipients through the Canadian defence attachés, the foreign defence attachés posted or accredited in Ottawa, by way of questionnaires distributed to students at the end of their training, and the publication of an annual report.

 

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

Fiscal Year for Terms and Conditions: 2008-09

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

Program Activity: Environmental Protection and Stewardship

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.

Expected results: The result expected from this contribution program is to remediate the contaminated lands to acceptable levels, thereby improving the human health and environment in the local areas affected. Acceptable levels will be determined once the environmental assessment process and consultation with stakeholders have taken place.

	($ millions)
	Forecast Spending 2011-12	Planned Spending 2012-13	Planned Spending 2013-14	Planned Spending 2014-15
Total Grants	N/A	N/A	N/A	N/A
Total Contributions	$6.000	$5.148	$4.107	$0.625
Total Other Types of Transfer Payments	N/A	N/A	N/A	N/A
Total Transfer Payments	$6.000	$5.148	$4.107	$0.625

Fiscal Year of Last Completed Evaluation: N/A

Decision following the Results of Last Evaluation: N/A

Fiscal Year of Planned Completion of Next Evaluation: 2014-15

General Targeted Recipient Group: Province of Ontario (Ministry of Natural Resources)

Initiatives to Engage Applicants and Recipients: As per the Contribution Agreement, National Defence participates in regular meetings with the Ministry of Natural Resources.

 

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

Start date: 1949

End date: Ongoing

Fiscal Year for Terms and Conditions: 2010-11

Strategic Outcome: Defence Operations will improve Peace, Stability and Security wherever deployed

Program Activity: International Peace, Stability and Security

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.

Expected results: Canada's financial contributions to the Alliance help to ensure Canadian security and provide leverage and influence within the multi-national body. They also provide access to military capabilities, which Canada itself, does not possess.

The contributions further serve to help protect and strengthen the freedom and security of all Alliance 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.

	($ millions)
	Forecast Spending 2011-12	Planned Spending 2012-13	Planned Spending 2013-14	Planned Spending 2014-15
Total Grants	N/A	N/A	N/A	N/A
Total Contributions	$108.074	$137.203	$142.541	$146.229
Total Other Types of Transfer Payments	N/A	N/A	N/A	N/A
Total Transfer Payments	$108.074	$137.203	$142.541	$146.229

Fiscal Year of Last Completed Evaluation: 2011-12

Decision following the Results of Last Evaluation: Continuation

Fiscal Year of Planned Completion of Next Evaluation: 2016-17

General Targeted Recipient Group: NATO

Initiatives to Engage Applicants and Recipients: This program has only one recipient, thus the engagement process is done directly through the ongoing relationship.

 

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

Start date: 1949

End date: Ongoing

Fiscal Year for Terms and Conditions: 2010-11

Strategic Outcome: Defence Operations will improve Peace, Stability and Security wherever deployed

Program Activity: International Peace, Stability and Security

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

Expected results: NSIP funds 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.

	($ millions)
	Forecast Spending 2011-12	Planned Spending 2012-13	Planned Spending 2013-14	Planned Spending 2014-15
Total Grants	N/A	N/A	N/A	N/A
Total Contributions	$22.257	$60.320	$60.380	$59.535
Total Other Types of Transfer Payments	N/A	N/A	N/A	N/A
Total Transfer Payments	$22.257	$60.320	$60.380	$59.535

Fiscal Year of Last Completed Evaluation: 2011-12

Decision following the Results of Last Evaluation: Continuation

Fiscal Year of Planned Completion of Next Evaluation: 2016-17

General Targeted Recipient Group: NATO

Initiatives to Engage Applicants and Recipients: This program has only one recipient, thus the engagement process is done directly through the ongoing relationship.

 

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

Fiscal Year for Terms and Conditions: 2010-11

Strategic Outcome: Defence Operations will improve Peace, Stability and Security wherever deployed

Program Activity: International Peace, Stability and Security

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 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.

Expected results: To provide a state-of-the-art operating system that will collect and disseminate, in real-time, data received from several on-board sensors.

	($ millions)
	Forecast Spending 2011-12	Planned Spending 2012-13	Planned Spending 2013-14	Planned Spending 2014-15
Total Grants	N/A	N/A	N/A	N/A
Total Contributions	$5.097	$8.655	$7.582	$0
Total Other Types of Transfer Payments	N/A	N/A	N/A	N/A
Total Transfer Payments	$5.097	$8.655	$7.582	$0

Fiscal Year of Last Completed Evaluation: 2011-12

Decision following the Results of Last Evaluation: Continuation

Fiscal Year of Planned Completion of Next Evaluation: 2016-17

General Targeted Recipient Group: NATO

Initiatives to Engage Applicants and Recipients: This program has only one recipient, thus the engagement process is done directly through the ongoing relationship.

 

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

Start date: 2009-10

End date: 2038-39

Fiscal Year for Terms and Conditions: 2010-11

Strategic Outcome: Defence Operations will improve Peace, Stability and Security wherever deployed

Program Activity: International Peace, Stability and Security

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.

Expected results: To provide a NATO owned and operated airborne ground surveillance system 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.

	($ millions)
	Forecast Spending 2011-12	Planned Spending 2012-13	Planned Spending 2013-14	Planned Spending 2014-15
Total Grants	N/A	N/A	N/A	N/A
Total Contributions	$0.460	$22.000	$0.000	$0.000
Total Other Types of Transfer Payments	N/A	N/A	N/A	N/A
Total Transfer Payments	$0.460	$22.000	$0.000	$0.000

Fiscal Year of Last Completed Evaluation: 2011-12

Decision following the Results of Last Evaluation: Continuation

Fiscal Year of Planned Completion of Next Evaluation: 2016-17

General Targeted Recipient Group: NATO

Initiatives to Engage Applicants and Recipients: This program has only one recipient, thus the engagement process is done directly through the ongoing relationship.

8.1 As of April 1, 2012, and pursuant to departmental strategic frameworks, new construction and build-to-lease projects, and major renovation projects, will achieve an industry-recognized level of high environmental performance¹.

Performance Measure	RPP	DPR
Target Status
Number of completed new construction, build-to-lease and major renovation projects in the given fiscal year, as per departmental strategic framework.	9
Number of completed new construction, build-to-lease and major renovation projects that have achieved an industry-recognized level of high environmental performance in the given fiscal year, as per departmental strategic framework.	9
Existence of strategic framework.	Yes

Strategies / Comments

1. Scope: For residential apartments, Green Globes will be applied. For applicable buildings where construction value ranges from $1M-$10M Green Globes will be applied and for building construction values greater than $10M LEED NC will be applied. Projects for other buildings shall follow an equivalent system and projects without buildings or historic buildings are excluded.
2. Equivalent system: Applicable requirements from tools referenced by the Green Building Directive when the integrity of the public tool would be difficult to apply because of the physical and/or operational constraints, which would ensure greenhouse gas emissions minimization and reduction in water consumption comparable to LEED Silver.
3. Applicable building types: Heated buildings where an available benchmark applies, which includes office buildings, singles quarters/barracks, health care facilities, retail areas (CANEX) and dining facilities.
4. Strategic framework: Approved on December 20, 2011.

8.2 As of April 1, 2012, and pursuant to departmental strategic frameworks, existing crown buildings over 1000m² will be assessed for environmental performance using an industry-recognized assessment tool².

Performance Measure		RPP	DPR
Target Status
Number of buildings over 1000m2, as per departmental strategic framework.		1513
Percentage of buildings over 1000m2 that have been assessed using an industry-recognized assessment tool, as per departmental strategic framework.	FY 2011-12
	FY 2012-13	0
	FY 2013-14
Existence of strategic framework.		Yes

Strategies / Comments

1. Scope: All heated buildings greater than 1000 m², where the department has full operational control over utilities monitoring and usage and pays the costs. All locations and areas are included except for DND Residential Housing Units.
2. While the intent is to assess the identified buildings for environmental performance, Defence needs to build this capability. In FY 2012-13, Defence will install meters to monitor all inclusive energy consumption of the identified buildings (accounting for 10%) of the holdings.
3. Strategic framework: Approved on December 20, 2011.

8.3 As of April 1, 2012, and pursuant to departmental strategic frameworks, new lease or lease renewal projects over 1000m², where the Crown is the major lessee, will be assessed for environmental performance using an industry-recognized assessment tool³.

Performance Measure	RPP	DPR
Target Status
Number of completed lease and lease renewal projects over 1000m2 in the given fiscal year, as per departmental strategic framework.	N/A
Number of completed lease and lease renewal projects over 1000m2 that were assessed using an industry-recognized assessment tool in the given fiscal year, as per departmental strategic framework.	N/A
Existence of strategic framework.	Yes

Strategies / Comments

1. Scope: All requests for proposals (RFP) for new and renewed leases or licenses to the department for any facility over 1000 m2 (residential housing units are excluded from this scope).
2. Intent: All RFP's for new and renewed leases or licenses for any facility larger than 1000 m2 (residential housing units are excluded from scope) to the department will contain a requirement in the scope criteria that the contractor must assess the facility for environmental performance with an industry-recognized assessment tool for environmental performance within the first year of the term of the lease or license. Evaluation of the responses to any RFP for this criterion will carry a weight in the evaluation scoring methodology equal to the weight afforded to the score for financial criteria, criteria for operational performance and suitability of the facility, and criteria for geographic location of the facility.
3. Performance Measure: The number of RFP's for leases or licenses to the department where a requirement for an industry recognized assessment tool for the measurement of environmental performance was a criterion of the RFP and the number of facilities then acquired by lease or license with an environmental rating of the facility will be reported.
4. Strategic framework: Approved on December 20, 2011.

8.4 As of April 1, 2012, and pursuant to departmental strategic frameworks, fit-up and refit projects will achieve an industry-recognized level of high environmental performance⁴.

Performance Measure	RPP	DPR
Target Status
Number of completed fit-up and refit projects in the given fiscal year, as per departmental strategic framework.	0
Number of completed fit-up and refit projects that have achieved an industry-recognized level of high environmental performance in the given fiscal year, as per departmental strategic framework.	0
Existence of strategic framework.	Yes

Strategies / Comments

1. Scope: For applicable buildings where construction values range from $1M to $10M then Green Globes will be applied and where construction values are greater than $10M LEED new construction (NC) and major renovations will be applied. Defence is not planning any fit-ups or refit projects for FY 2012-13, which is reflected in the number '0', in the table above.
2. Applicable building types: Heated buildings where an available benchmark applies, which includes office buildings.
3. Strategic framework: Approved on December 20, 2011.

8.5 The federal government will take action now to reduce levels of greenhouse gas emissions from its operations to match the national target of 17% below 2005 by 2020.

Performance Measure		RPP	DPR
Target Status
Departmental GHG reduction target: Percentage of absolute reduction in GHG emissions by fiscal year 2020-21, relative to fiscal year 2005-06.		10%
Departmental GHG emissions in fiscal year 2005-06, in kilotonnes of CO2 equivalent.		744
Departmental GHG emissions in the given fiscal year, in kilotonnes of CO2 equivalent.	FY 2011-12	736
	FY 2012-13	729
	FY 2013-14
	FY 2014-15
	FY 2015-16
	FY 2016-17
	FY 2017-18
	FY 2018-19
	FY 2019-20
	FY 2020-21
Percent change in departmental GHG emissions from fiscal year 2005-06 to the end of the given fiscal year.	FY 2011-12	1%
	FY 2012-13	2%
	FY 2013-14
	FY 2014-15
	FY 2015-16
	FY 2016-17
	FY 2017-18
	FY 2018-19
	FY 2019-20
	FY 2020-21
Existence of an implementation plan to reduce GHG emissions.		Yes

Strategies / Comments

1. Scope: Targeted GHG emissions sources to include facilities and commercial fleets. DND operational fleet (i.e. National Safety and Security Fleet - military-pattern vehicles, ships and aircraft) and Private Married Quarters are excluded.
2. Implementation Plan: Approved on December 20, 2011.

8.6 By March 31, 2014, each department will reuse or recycle all surplus electronic and electrical equipment (EEE) in an environmentally sound and secure manner.

Performance Measure		RPP	DPR
Target Status
Existence of implementation plan for the disposal of all departmentally-generated EEE.		Yes
Total number of departmental locations with EEE implementation plan fully implemented, expressed as a percentage of all locations, by the end of the given fiscal year.	FY 2011-12	15%
	FY 2012-13	35%
	FY 2013-14

Strategies / Comments

1. The DND, ADM(Mat) disposal generation sites for E-Waste that will be monitored are Supply Repair & Disposal locations (i.e. locations where disposal policy states that E-Waste should be entering the waste stream) for computer equipment (e.g. desktops, laptops, monitors and printers).
2. The number of Supply Repair & Disposal locations for the DND/CF is 40.

8.7 By March 31, 2013, each department will achieve an 8:1 average ratio of office employees to printing units. Departments will apply target where building occupancy levels, security considerations, and space configuration allow.

Performance Measure		RPP	DPR
Target Status
Ratio of departmental office employees to printing units in fiscal year 2010-11, where building occupancy levels, security considerations and space configuration allow.		N/A
Ratio of departmental office employees to printing units at the end of the given fiscal year, where building occupancy levels, security considerations and space configuration allow.	FY 2011-12	6:1
	FY 2012-13	8:1
	FY 2013-14

Strategies / Comments

1. Definition: Printing units are defined as unclassified network printers.
2. Scope: While the intent is all buildings where space configurations and occupancy levels allow it, Defence does not track devices or employees by building. As a result, the scope for Defence will be the number of network users to the number of network printers.
3. Method for determining printing resources: Information Technology asset management databases will be used to capture Information Technology equipment.

8.8 By March 31, 2014, each department will reduce internal paper consumption per office employee by 20%. Each department will establish a baseline between 2005-2006 and 2011-2012, and applicable scope.

Performance Measure		RPP	DPR
Target Status
Number of sheets of internal office paper purchased or consumed per office employee in the baseline year selected, as per departmental scope.		3241
Cumulative reduction (or increase) in paper consumption, expressed as a percentage, relative to baseline year selected.	FY 2011-12	N/A
	FY 2012-13	10%
	FY 2013-14

Strategies / Comments

1. Scope: Defence purchases office paper through PWGSC Standing Offer Agreements. To measure paper consumption reductions, the dollar amount of paper bought in a given fiscal year through Standing Offers will be used as an indicator of consumption. The Human Resources Summary of Full-Time Equivalents in the DPR will be used for determining the number of employees.

8.9 By March 31, 2012, each department will adopt a guide for greening meetings.

Performance Measure	RPP	DPR
Target Status
Presence of a green meeting guide.	Yes

Strategies / Comments

1. Green Meeting Guide: Approved on July 29, 2011.
2. Definition of adoption: The green meetings guide will be adopted when the guide is promulgated and incorporated as a best management practice.

DND/CF will procure green vehicles for the light commercial fleet where it is cost-effective and operationally feasible.

Performance Measure	RPP	DPR
Target Status
Percentage of light commercial vehicles procured each year will be green vehicles where it is cost-effective and operationally feasible.	N/A
Progress against measure in the 2011-12 fiscal year.	5%
Progress against measure in the 2012-13 fiscal year.	5%

Strategies / Comments

1. Where it is cost-effective and operationally feasible, DND/CF will increase the number of green vehicles while reducing the number of non-green vehicles through normal attrition.
2. Commands and fleet managers will be educated on the importance of greening the fleet, through national training events, conferences, and workshops, and encourage procurement of green vehicles and greener fleet management practices.

DND/CF will implement the conversion to an environmentally friendly hydraulic fluid common within the 15 aircraft fleets by March 31, 2014.

Performance Measure	RPP	DPR
Target Status
Percentage of the 13 aircraft fleets introducing and utilizing environmental friendly hydraulic fluid.	N/A
Progress against measure in the 2011-12 fiscal year.	20%
Progress against measure in the 2012-13 fiscal year.	30%

Strategies / Comments

1. Initially, the program included 15 aircraft fleets but this number was reduced to 13 due to existing service contracts for specific fleets where a change of hydraulic fluid had not been included in the initial service contract.
2. For future service contracts, additional requirements will be explored that may examine the conversion to environmentally friendly hydraulic fluids for the remaining fleets.

DND/CF will apply best practices to eliminate from use or restrict in application specified, nationally managed high-risk hazardous materials identified by 31 December each year based upon Risk Management Actions from Environment Canada and Health Canada.

Performance Measure	RPP	DPR
Target Status
Percentage of specified high-risk hazardous materials to be eliminated from use or restricted in application.	N/A
Progress against measure in the 2011-12 fiscal year.	30%
Progress against measure in the 2012-13 fiscal year.	30%

Strategies / Comments

1. A screening process has been developed to identify and to prioritize high-risk hazardous materials based on their inherent health, safety, and environmental properties.

Training for Select Employees.

All current DND/CF employees and members performing Financial Administration Act (FAA) Sections 32 and 34 responsibilities will complete the Green Procurement Course.

Performance Measure	RPP	DPR
Target Status
Percentage of DND/CF employees and members performing FAA Sections 32 & 34 responsibilities with green procurement training, expressed as a percentage of employees and members, by the end of the given fiscal year.	N/A
Progress against measure in the 2011-12 fiscal year.	100%
Progress against measure in the 2012-13 fiscal year.	25%

Strategies / Comments

1. Green Procurement modules will be incorporated into key on-line & existing Materiel Acquisition and Support (MA&S) procurement course content.
2. The Performance Measure for this Target in FY 2011-12 was extremely ambitious given the size of the personnel to be trained (approximately 8,100 civilians and 17,500 military members). The on-line training course also provided several logistical challenges to DND/CF that needed to be resolved (e.g. network security, course accessibility) prior to implementation. Other challenges included clarifying to whom the target applied, since there would have been significantly larger pool of personnel required to take the training based only on having Section 32 and 34 responsibilities.
3. Significant lessons learned require DND/CF to re-focus the Performance Measure in FY 2011-12 from 100% to 25% of civilians and members having completed the green procurement course. For FY 2012-13, the Performance Measure is an additional 25% bringing the total number of civilians and members trained by the end of FY 2012-13 to 50%.

Employee performance evaluations for managers and functional heads of procurement and materiel management.

Green Procurement Objectives will be part of the Performance Management Agreements for relevant personnel.

Performance Measure	RPP	DPR
Target Status
Percentage of relevant personnel to include commitments to Departmental Green Procurement Objectives within their Annual Performance Management Agreements.	N/A
Progress against measure in the 2011-12 fiscal year.	100%
Progress against measure in the 2012-13 fiscal year.	100%

Strategies / Comments

1. Relevant personnel are defined as the Assistant Deputy Minister of Material and the Director General of Materiel Systems and Supply Chain.

Management processes and controls.

DND/CF will have in place policies that enable departmental personnel to perform and enforce best practices related to Materiel Acquisition and Support functions by March 31, 2014.

Performance Measure	RPP	DPR
Target Status
Percentage of key DND/CF policies reviewed and updated, as necessary, to incorporate best practices in Materiel Acquisition and Support.	N/A
Progress against measure in the 2011-12 fiscal year.	10%
Progress against measure in the 2012-13 fiscal year.	10%

Strategies / Comments

1. Continuous improvements to policies, procedures and best practices within DND/CF to enhance performance.
2. Key policies relate only to the Materiel Acquisition and Support functions.
3. Address Green Procurement requirements in the annual Materiel Acquisition and Support Functional Planning Guidance to all Assistant Deputy Minister and equivalent organizations.
4. Include requirement to support Green Procurement initiatives in the annual Materiel Letter of Attestation (attestation required from all Assistant Deputy Minister and equivalent organizations).

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
In-service Support (ISS) Contractor	The Boeing Company via Foreign Military Sales (FMS) case

Major Milestones

List of 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 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 Royal Canadian Air Force and Canadian Army.

Progress Report and Explanations of Variances

All four aircraft have been accepted on schedule and the fleet has already flown in excess of 16,000 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 CC130E Hercules fleet, and will 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 CC130J aircraft. The Contract was subsequently amended to include provisions for in-service support in December 2009, and for maintaining training in February 2010. 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

List of 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
Initial Operational Capability	January 2013
Full Operational Capability	September 2016
Project Close-Out	December 2014

Project Outcomes

The ACP-T will deliver 17 CC130J aircraft which 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 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 will be the Royal Canadian Air Force and Canadian Army.

Progress Report and Explanations of Variances

Canada’s first aircraft arrived in Canada in June 2010, six months ahead of the scheduled delivery date. Thirteen aircraft have now been received. The remaining four aircraft are scheduled for delivery in 2012.

With contract provisions for in-service support and maintainer training; and in conjunction with the infrastructure upgrades at the aircraft’s Main Operating Base in Trenton, Ontario, the project is progressively establishing the support systems for this new capability in preparation for the declaration of Full Operational Capability.

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. Several IRB announcements have been made and all regions of Canada are benefiting from this contract. 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

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 National Shipbuilding Procurement Strategy (NSPS) Secretariat announced on 19 Oct 2011 that Irving Shipbuilding Inc. (ISI) is to build the AOPS. Identification of major sub-contractors will be determined through the Canadian shipyard's teaming arrangement for AOPS construction. The prime contractor for the project's In-Service Support Contract (ISSC) will be competed separately during the project implementation phase.

Major Milestones

List of 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
Revised Project Approval (Definition) I	October 2011
Revised Project Approval (Definition) II	Fall 2012
Award Definition Contract	Winter 2013
Project Approval (Implementation)	2015
Award of Implementation Contract	2015
Delivery of First Ship	2018
Initial Operating Capability of First Ship	2019
Full Operational Capability	2023
Project Complete	2024

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 Royal Canadian Navy.

Progress Report and Explanations of Variances

The project continues to progress steadily since obtaining Preliminary Project Approval (PPA) in May 2007 with an indicative cost of $3,074M ($Budget Year). The Project Definition funding increased from $42.8M ($Budget Year) to $58.4M ($Budget Year). This additional $15.6M ($Budget Year) of increased expenditure authority was approved in October 2011. The total project budget remains $3,074M ($Budget Year) as the source of funding for increased definition was transferred from implementation funding. The Project Definition Phase will produce an AOPS ship specification and drawing package that will be used when ISI is contracted for the build. Previous dates for AOPS were based on a traditional competitive procurement strategy. Since the signing of the NSPS Umbrella Agreement, engagement with ISI has begun and the dates in this submission reflect a schedule that takes into account a collaborative approach, ISI's shipyard infrastructure improvements and production strategy.

Note: all figures above are exclusive of GST/HST.

Industrial Benefits

At this time, 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 Canadian Forces (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 Spring 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

List of 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	Spring 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 five 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 Canadian Army.

Progress Report and Explanations of Variances

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

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

In March 2004, Treasury Board 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 is taking place in five locations: Wainwright, Petawawa, Montréal, Valcartier, and Gagetown. Construction activities are well advanced and will allow this project to terminate its involvement in Spring 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 and Government Services Canada (PWGSC)
Participating Departments	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

List of 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 2A	2014
Classified Security Management Infrastructure – Phase 2B	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 Initiative and the Key Management Infrastructure Program. 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 initiative/program.

• The CCMP originated as a 12-year program ending in 2016. However, in June 2011, the end date of the Classified Security Management Infrastructure project was extended to 2020 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 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 Canadian Army (CA), Royal Canadian Air Force (RCAF), 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 principal 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 (OGD) 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	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

List of 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. Mission capabilities are employed in support of Defence operational commitments, UN peacekeeping missions, and support to OGD and Agencies, including air to the civil power. 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 Royal Canadian Air Force and Canadian Army.

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 Treasury Board budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver functionality with the last aircraft scheduled for completion in December 2011.

Industrial Benefits

To date, Bell Helicopter has claimed $289.5M direct and $252.1M indirect Industrial and Regional Benefits (IRB), totalling $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 and initial training has been completed. 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 2014.

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

List of 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	2014

Project Outcomes

Deliver 15 CSH aircraft and declared at full operational capability which contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Defence operations to improve peace, stability and security whenever employed, specifically the program sub-activity of Search and Rescue.

The beneficiary of this capability is the Canadian population who require Search and Rescue services.

Progress Report and Explanations of Variances

The project 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 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. The fleet size has also been reduced to 14, following the loss of an aircraft in a 2006 crash.

It should be noted that although effective project closure was achieved in September 2004, some work is still ongoing and full completion is not expected before 2014. The milestones still outstanding are tied to a three year Technical Publication Revision Service which commenced in 2010-11, and a number of milestones related to outstanding aircraft deficiencies which are expected to be completed by 2014.

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

In accordance with the Canada First Defence Strategy (CFDS), the Canadian Surface Combatant (CSC) Project will recapitalize Canada’s entire surface combatant fleet through replacement of the capability found in the Halifax and Iroquois classes, and provision of the necessary Integrated Logistics Support and infrastructure. The CSC Project will pursue system commonality in design and acquisition. System commonality will potentially generate acquisition and through-life cost savings in a number of areas including crewing, training, 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)

Work continues toward the definition of the overall procurement strategy for design, platform and combat systems. Identification of major sub-contractors will be determined at a future date.

Major Milestones

List of Major Milestone	Date
Identification Phase Approval	July 2007
Identification Phase Amendment No. 1 Approval	January 2009
Project Approval (Definition)	To be determined
Project Approval (Implementation)	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 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 Royal Canadian Navy.

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 CFDS 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 Canadian Army 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 CF tanks.

CCV is one of the four projects within the Army’s “Family of Land Combat Vehicles”.

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

List of Major Milestone	Date
Treasury Board Project Approval (Implementation)	Spring 2013
Contract Award	Spring 2013
First Vehicle Delivery	2015
Expected Project Closure	2019

Project Outcomes

Deliver 108 CCV with an option for up to 30 additional vehicles (including Infantry Fighting Vehicle and Forward Observation Officer configurations), plus 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 Canadian Army.

Progress Report and Explanations of Variances

In 2010-11, the CCV project successfully completed its Solicitation of Interest and Qualification process, resulting in a list of Pre-Qualified Suppliers. The project released its Request for Proposal (RFP) in March 2011 with closure in August 2011. RFP response evaluation and testing commenced in Fall 2011. The project is in its definition phase and is proceeding on budget. As all bidders were deemed technically non-compliant, the RFP was cancelled and re-issued in April 2012. Delivery of the first CCV is currently planned for 2015.

Industrial and Regional 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.

FIXED WING SEARCH AND RESCUE AIRCRAFT REPLACEMENT

Description

The purpose of this project is to replace the CC115 Buffalo and CC130 Hercules currently providing the Fixed Wing Search and Rescue (FWSAR) capability in Canada.

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

Project Phase

Definition.

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 Milestones

List of Major Milestone	Date
Expenditure Authority approved (Definition)	March 2012
Project Approval (Implementation)	Fall 2013
Contract Award	Spring 2014
Delivery First Aircraft	2017
Initial Operational Capability	2017
Full Operational Capability	2018
Project Close-Out	2020

Project Outcomes

Deliver a replacement capability currently performed by the CC115 Buffalo and CC130 Hercules aircraft. The project contributes 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 primary beneficiary of this capability is the Royal Canadian Air Force.

Progress Report and Explanations of Variances

The FWSAR Project was in options analysis phase, with significant engagement with the public, industry and third party experts since 2009. The project entered the project definition phase upon receipt of Treasury Board Project Approval (Definition) in March 2012.

Industrial and Regional Benefits

Maximum Industrial and Regional Benefits (IRB) will be sought for this project.

FORCE MOBILITY ENHANCEMENT

Description

The Force Mobility Enhancement (FME) project is 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 Treasury Board 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

List of 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	March 2012
Contract Award - Phase 1	April 2012
Effective Project Approval Phase 2	December 2012
Contract Award - Phase 2	January 2013
Initial Operational Capability – Phase 2	September 2014
Initial Operational Capability – Phase 1	February 2015
Full Operational Capability	2016
Project Close-Out	2017

Project Outcomes

Deliver up to 18 Leopard 2-based Armoured Engineer Vehicles (AEV), up to four Leopard 2-based Armoured Recovery Vehicles (ARV), and Tactical Mobility Implements (TMI) to install onto Leopard 2 Main Battle Tanks 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 this project 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 Canadian Army.

Progress Report and Explanations of Variances

On June 18, 2009, Treasury Board approved $11.465M in Definition funds (including contingency), allowing the Definition Phase to begin.

Phase 1. A Letter of Interest (LOI) for Phase 1 was released and closed Summer 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 industry’s inability to meet Defence’s timelines. Both bidders were found non-compliant and debriefed on 17 May 2011. A follow-on RFP was posted on MERX 27 May 2011 and closed on 27 June 2011. Both bidders were found compliant.

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. Due to Intellectual Property rights, only the Original Equipment Manufacturer (Krauss Maffei Wegmann (KMW)) replied to the RFP. An Advanced Contract Award Notice (ACAN) was posted on MERX Summer 2011 and no other responses were received. As a result, the project is currently negotiating with KMW to conduct a feasibility study in preparation for the implementation stage of Phase 2.

Effective Project Approval (EPA) Phase 2 is now scheduled for December 2012.

Industrial and Regional Benefits

In accordance with the Senior Project Advisory 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

List of 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 Begun	October 2010
Full Operational Capability	January 2018
Project Closure	January 2019

Project Outcomes

Deliver 12 modernized HALIFAX-Class ships capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). The 12 ships of the HALIFAX-Class were designed for a 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, the modernized HALIFAX-Class ships 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 Royal Canadian Navy.

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 $2,988M ($Budget Year).

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, with three ships undergoing their mid-life refits, and is currently within budget and on schedule to achieve Full Operational Capability by January 2018.

Industrial and Regional 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 Treasury Board 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 have been implemented by the Land Force (LF) ISTAR Project Management Office (PMO). In support of UORs 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

List of 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
Emergency Beyond Line of Sight Communication Treasury Board Effective Project Approval Beyond Line of Sight Communication Treasury Board Effective Project Approval Initial Operational Capability Full Operational Capability Project Closed	November 2005 July 2006 March 2008 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 Effective Project Approval Planned Initial Operational Capability Planned Full Operational Capability Planned close-out	December 2011 September 2013 December 2014 March 2015
Planned Medium Range Radar Effective Project Approval Planned Initial Operational Capability Planned Full Operational Capability Planned close-out	December 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 Effective Project Approval for UOR Family of UAV Effective Project Approval for AL 1 Planned Initial Operation Capability Planned Full Operational Capability Planned Project close-out	November 2005 December 2011 September 2013 June 2015 December 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 capability with the surveillance, target acquisition, and reconnaissance assets 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 Canadian Army.

Progress Report and Explanations of Variances

Current estimates are that the project will be complete in 2016. This delay is associated with the necessary diversion of staff effort to address UORs, and with the maintenance of an off-the-shelf philosophy. Approvals have been received for all but three of the LF ISTAR sub-projects. Final deliveries are scheduled out to 2015.

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

Industrial and Regional Benefits

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

JOINT SUPPORT SHIP

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 (CFDS). The JSS will provide Canada with a modern, 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 National Shipbuilding Procurement Strategy (NSPS) Secretariat announced on 19 Oct 2011 that Vancouver Shipyards Co. Ltd (VSY) is to build the JSS. 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

List of Major Milestone	Date
Options Analysis	Fall 2009
Revised Project Approval (Definition)	June 2010
Project Definition Phase Recommenced	July 2010
Project Approval (Implementation)	February 2014
Award of Implementation Contract	March 2014
Initial Operating Capability - First 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 2011-14) and the Canada First Defence Strategy .

Project beneficiaries:

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

Progress Report and Explanations of Variances

On 10 June 2010, the JSS project received Treasury Board expenditure authority for its Revised Definition Phase at a substantive cost estimate of $143M ($Budget Year), including HST with an indicative project cost of $2.613B ($Budget Year), including HST. The procurement strategy aims to provide a ship design to the NSPS shipyard. The ship design could be based either on a Military off the Shelf (MOTS) design or a newly developed design. 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 by at least 6 months. This slippage has occurred to support the development and negotiation of complex design assessment contracts.

The net effect is a delay in the projected Implementation approval date. Project Definition schedule slippage is expected to be recoverable during Project Implementation such that the projected dates for Initial Operational Capability and Full Operational Capability have not changed and are still considered achievable.

Industrial and Regional Benefits

At this time, 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.

JOINT UNMANNED AERIAL VEHICLE SURVEILLANCE TARGET ACQUISITION SYSTEM

Description

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

Project Phase

Option Analysis.

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

Prime and Major Subcontractor(s)

Prime Contractor	To be determined

Major Milestones

List of Major Milestone	Date
Project Approval (Definition)	To be determined
Project Approval (Implementation)	To be determined
Contract Award	To be determined
First aircraft delivery	To be determined
Last aircraft delivery	To be determined
Project Completion	To be determined

Project Outcomes

Deliver a mature Medium Altitude Long Endurance Unmanned Aerial Vehicle capability that meets the objectives of the Canada First Defence Strategy (CFDS) for a robust domestic and international surveillance capability. JUSTAS delivery contributes to 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.

Progress Report and Explanations of Variances

Not applicable. The project is in the options analysis phase.

Industrial and Regional Benefits

Maximum Industrial and Regional Benefits (IRB) will be sought for this project and details will be determined by Government stakeholders.

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 (LAV). 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 protection and 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

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	General Dynamics Land Systems-Canada, London, Ontario, Canada

Major Milestones

List of Major Milestone	Date
Treasury Board Approval	June 2009
Treasury Board Approval for Contract Approval	April 2010
Implementation Start	October 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 of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability this project 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 Canadian Army.

Progress Report and Explanations of Variances

The project received Preliminary Project Approval in June 2009 and was announced by the Minister of National Defence in July 2009. The PWGSC submission received Treasury Board approval in April 2010. The project received Effective Project Approval and Contract Approval from Treasury Board in October 2011. Both approvals were announced by the Associate Minister of National Defence and the Minister of Public Works and Government Services Canada in October 2011.

Industrial and Regional Benefits

General Dynamics Land Systems-Canada is committed to provide 100% of contract value in Industrial and Regional Benefits (IRB).

LIGHTWEIGHT TOWED HOWITZER

Description

The Lightweight Towed Howitzer (LWTH) project is a key facet of the Land Forces current indirect fire capability deficiency. Specifically, over the summer of 2011, the project fielded 25 M777 lightweight 155mm towed howitzers to the Canadian Army, each with a Digital Gun Management System (DGMS), to augment the 12 M777 howitzers currently in service. The project will also field improved ammunition and wheeled gun tractors. 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.

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

Major Milestones

List of 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, this project will contribute toward 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 Canadian Army.

Progress Report and Explanations of Variances

The LWTH project is achieving defined project objectives. Final deliveries of the M777 howitzer and the Gun Management System components commenced in late 2010 and were completed Summer 2011.

The Initial Operational Capability (IOC) was originally forecasted to occur in July 2011 and was shifted to October 2011 as a result of unforeseen issues with technical integration. The project achieved IOC on October 2011.

The LWTH project is currently running within the allocated budget and is currently planning to move to Effective Project Closure (EPC) March 2013, in line with the EPA submission.

Industrial and Regional Benefits

The LWTH project has Industrial and Regional Benefits (IRB) agreements established with BAE Systems on the M777 LWTH FMS Acquisition case and with SELEX on the Gun Management System (GMS) acquisition contract.

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. SELEX has currently achieved approximately 50% of their IRB commitment.

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 shifting from design and engineering to flight test and preparations for operational testing and evaluation, followed by delivery of the fully capable Maritime Helicopters which contractually are required to start in June 2012. However, the delivery of fully capable helicopters is now expected to occur in 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	Sikorsky International Operations Incorporated, Stratford, Connecticut, USA
Major Subcontractor(s)	General Dynamics Canada, Ottawa, Ontario, Canada L-3 MAS, Mirabel, Québec, Canada

Major Milestones

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

Project Outcomes

Deliver 28 fully equipped Maritime Helicopters to support operations and deploy with the Halifax Class Frigates capable to execute the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, it 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 Royal Canadian Navy.

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 International Operations Incorporated agreed to a new schedule for the delivery of six interim helicopters starting in November 2010, with delivery of fully capable helicopters commencing in June 2012. However, the delivery of fully capable helicopters is now expected to occur in 2013. 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. Sikorsky International Operations Incorporated is now indicating first delivery of an interim helicopter will start in June 2012.

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 International Operations Incorporated, 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 and Regional 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 International Operations Incorporated agreed to an additional $80M of IRBs in the June 2010 contract amendment for the in-service support contract.

MATERIAL 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, supply chain, Integrated Logistics Support (ILS), equipment configuration management, 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, Air Force, Navy ships and supply chain.

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

Major Milestones

List of 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
Revised EPA and increase to the Contracting Authority	September 2011
Supply chain integrated within DRMIS (spell out)	November 2013
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, this project 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.

Progress Report and Explanations of Variances

In June 2007, the MASIS project received Treasury Board approval for Phase 5 in the amount of $170M.

In September 2011, the project received Treasury Board approval for a refinement in its scope of work and an increase to the contracting authority to complete Phase 5 activities. The Expenditure Authority granted in 2007 was not amended as sufficient funds remain.

Industrial and Regional Benefits

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

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: The MHLH Project entered the implementation phase in July 2009. The first two aircraft are currently on the production line. These helicopters will complete one year of intensive test and evaluation starting June 2012. The first of fifteen helicopters is scheduled for delivery in June 2013 and the final helicopter will be received in June 2014.

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

List of 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*	June 2017
Project Close-Out	June 2018

*Explanation of variance. Shortage in the delivery of trained pilots is expected to extend the achievement of Full Operational Capability by two years.

Project Outcomes

Deliver 15 Chinook CH-47F helicopters capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, this project 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 Canadian Army.

Progress Report and Explanations of Variances

In June 2009, Treasury Board 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 and Regional 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.

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; and
  
• Special Equipment Vehicle (SEV) Kits:
  - 895 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

List of 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	Early 2012
SEV Baseline Shelter - Delivery Complete	Spring 2014
SEV Kits - Invitation for Bids Posted on MERX	October 2011
SEV Kits - Revised Project Approval (Definition)	Spring 2012
SEV Kits - Contract Award	Spring 2012
SEV Kits - First Delivery	Spring 2013
SEV Kits - Delivery Complete	Fall 2014
SMP - Invitation for Bids Posted on MERX	Fall 2011
SMP - Project Approval (Implementation)	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 (CFDS). 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 Canadian Army.

Progress Report and Explanations of Variances

In June 2009, Treasury Board expenditure authority was obtained for SEV Baseline Shelters for $161.4M ($Budget Year) plus GST and a Revised PPA was granted for an indicative full-up cost of $1.244B ($Budget Year) 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 was scheduled for release in late 2011; and
• SEV Kitting - A draft SEV Kitting RFP was posted on the project website in late December 2009 for industry comment. The complete draft RFP was released in June 2010 for industry comment. The final RFP was released in October 2011.

MERCURY GLOBAL

Description

The Mercury Global (MG) project will provide wideband global satellite communications that are guaranteed and directly interoperable with our principal Allies. The project will deliver a Canadian Wideband Global System (WGS) Military Satellite Communications System for near-worldwide assured, wideband communications to the CF for the command and control of deployed Canadian commanders and forces, as well as interoperability with some of our principal allies, the United States, Australia, Denmark, the Netherlands, Luxembourg, and New Zealand.

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 and Agencies	Industry Canada and its regional agencies Canadian Space Agency

Prime and Major Subcontractor(s)

Prime Contractor	Satellite Constellation- United States Department of Defense (DoD) via a Memorandum of Understanding Terminals - To be determined
Major Subcontractor(s)	Satellite Manufacturer- Boeing, St Louis, Missouri, USA Terminals - To be determined

Major Milestones

List of Major Milestone	Date
Preliminary Project Approval	October 2011
Initial Satellite Access	November 2011
Effective Project Approval	April 2013
Terminal Implementation Complete	October 2016
Full Operational Capability	October 2017
Project Complete	Winter 2017/2018

Project Outcomes

Deliver a near-worldwide, Canadian assured, wideband global Military Satellite Communications System. When operational, this system, when coupled with the secure and protected capabilities being delivered by the Protected Military Satellite Communications project, will ensure, in part, that the Canadian Forces will be well-equipped with modern strategic and tactical satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability, the project 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 Informatics Infrastructure Acquisition and Disposal.

Progress Report and Explanations of Variances

In Phase 1, procurement of guaranteed access to and participation in the US Department of Defense (DoD) Wideband Global Satellite constellation to the year 2032 was approved by Treasury Board with Preliminary Approval in October 2011. Treasury Board also granted approval for the Department of National Defence (DND) to enter into a Military Satellite Communications (MILSATCOM) Memorandum of Understanding (MOU) with, principally, the US DoD, and also Denmark, The Netherlands, Luxembourg, and New Zealand. The MOU is the vehicle used to fund the construction and launch of the ninth Wideband Global System satellite and, thereby, provide the US DoD Wideband Global System service to DND (and the others) to, at least, the year 2032. The MOU was signed by Canada in November 2011. In addition, approval was granted to define the terminal segment and to provide funds to facilitate early use of the Wideband Global Satellite Communications service.

Effective Approval for Phase 2 will be sought in the spring 2013 for the procurement and installation, where necessary, of the associated Wideband Global Satellite anchor station and strategic satellite terminals.

The total indicative cost for this project (both phases) is estimated at $539.4M ($Budget Year) including $13.4M HST. The project is on budget.

Industrial and Regional Benefits

Under Phase 1, the Senior Project Advisory Committee (SPAC) endorsed that the Geostationary Coverage Space Segment service would be acquired through an MOU between United States, Denmark, The Netherlands, Luxembourg, and New Zealand. Regarding Industrial and Regional Benefits (IRB), a separate agreement between Boeing and Public Works and Government Services Canada has been negotiated in which Boeing has committed to IRBs equivalent to 100% of DND’s proportionate share of the final negotiated price of the Boeing contract with the US DoD for the ninth Wideband Global Satellite.

In the future Phase 2, the strategic terminals’ procurement, anchor stations’ construction, and Integrated Life Support would be acquired through competitive procurement.

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-18 fleet on its retirement so as to maintain a manned fighter capability necessary for the defence of Canada and North America, and for CF collective expeditionary operations.

Project Phase

Options Analysis: An interim 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	Public Works Secretariat, Industry Canada and its regional agencies

Prime and Major Subcontractor(s)

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

Major Milestones

List of Major Milestone	Date
Synopsis Sheet (Identification)	January 2010
Treasury Board Project Approval (Definition)	2012
Treasury Board Project Approval (Implementation)	2013
First Participant Procurement Request	2013
Delivery First Aircraft	2017
Initial Operational Capability	2020
Full Operational Capability	2025
Project Close-Out	2027

Project Outcomes

The NGFC project will deliver 65 F-35A Conventional Take-off and Landing (CTOL) aircraft capable of executing the roles and core missions described in the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, NGFC 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 Royal Canadian Air Force.

Progress Report and Explanations of Variances

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

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 had 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 will 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. Canadian companies have already received more than $435M (USD) in contracts for the development and production of the F-35.

PROTECTED MILITARY SATELLITE COMMUNICATIONS

Description

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

Project Phase

Implementation: The PMSC project is being implemented in two phases with project completion expected for winter 2017/2018.

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	United States Department of Defense (DoD) via FMS
Major Subcontractor(s)	Raytheon, Waltham, Massachusetts, USA

Major Milestones

List of Major Milestone	Date
Preliminary Project Approval (PPA)	August 1999
Effective Project Approval (EPA)	November 2003
Initial Terminal Delivery	Autumn 2012
Initial Satellite Availability	Winter 2012/2013
PMSC System Full Operational Capability	Summer 2019/2020
Project Complete	Winter 2019/2020

Project Outcomes

Deliver a near-worldwide, assured, secure, survivable, and jam-resistant Canadian Advanced Extremely High Frequency (AEHF) Military Satellite Communications System. This system, when coupled with the wideband capabilities being delivered by the Mercury Global project, will ensure, in part, that the Canadian Forces will be well-equipped with modern strategic and tactical satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability the project 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 Informatics Infrastructure Acquisition and Disposal.

Progress Report and Explanations of Variances

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 Treasury Board (TB) with Preliminary Project Approval (PPA) 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. The total cost of this Phase was a substantive cost estimate of $270.8M ($Budget Year), GST included.

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 Advance Extremely High Frequency satellite terminals at a substantive estimated cost of $321M ($Budget Year) including GST/HST.

The total substantive cost (including funds approved at PPA) is currently estimated at $592M ($Budget Year) including GST/HST. The project is on budget.

Due to slippages in the US DoD overall satellite launch schedule, the PMSC System Full Operational Capability, accordingly has moved to December 2019 from the original expected date of November 2017.

Industrial and Regional Benefits

Under the completed Phase 1, the US DoD committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations were permitted to bid on project work.

For Phase 2, a Senior Project Advisory Committee (SPAC) endorsed that terminal acquisition and support will be procured through Foreign Military Sales (FMS) with installation performed through Defence-managed contracts. Industrial and Regional benefits were negotiated with Raytheon by Industry Canada.

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

List of 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)	Late 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 Royal Canadian Navy.

Progress Report and Explanations of Variances

EPA was granted to the SCLE project in June 1998 at an estimated total cost of $812M ($Budget Year) excluding 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 completed an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Breton in November 2011 and is undergoing operational tests and evaluation;
• HMCS Windsor is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Scott. She is scheduled to undock and complete this activity in mid – 2012;
• HMCS Corner Brook is currently in an Extended Limited Maintenance Period (ELMP), awaiting her scheduled EDWP in 2013; and
• 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 she is scheduled to return to sea in 2013.

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

Industrial and Regional Benefits

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 four projects of the Future Land Combat Vehicles System announced in July 2009.

The TAPV Project will deliver a wheeled combat vehicle to the Canadian Army 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.

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

List of 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
Project Approval (Implementation)	June 2012
Contract awarded	Summer 2012
Initial Operational Capability Delivery certified	2014
Full Operational Capability Delivery certified	2016
Project Completion Report Approved	2017

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 (CFDS) 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 Canadian Army.

Progress Report and Explanations of Variances

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

In November 2008, the Senior Project Advisory Committee approved a procurement strategy for a phased approach within a competitive process. 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 Project Approval (Implementation) submission. A Statement of Interest and Qualification was released in March 2010 and closed in June 2010 with 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 commenced in Autumn 2011 and was completed in January 2012.

Industrial and Regional 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	Rheinmetall Land System (RLS), Germany
Prime Contractors for ILS related contracts: Ammunition Simulators Special Tools & Test Equipment (STTE) Initial Provisioning of Spare Parts Sub-Calibre Training Devices (SCTD)	General Dynamics Ordnance and Tactical Systems - Canada To be determined Various OEMs (6 Contracts) To be determined To be determined

Major Milestones

List of 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
Phase 2 – Contract for 8 Leopard 2 ARV	November 2011
Full Operational Capability (FOC) – (Phase II)	October 2014
Project Close-Out	January 2015

Project Outcomes

Deliver the following capacities:

• 20 Leopard 2 A6M – Operational Main 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 – Main Battle Tanks primarily used for training. L44 Gun with basic protection;
• 8 Leopard 2 Armoured Recovery Vehicle (ARV). Four ARVs will be designated 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 Canadian Army.

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 2 A6M. In return, the purchased Dutch Leopard 2 A6 will be converted to a German standard and returned to the 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 October 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) for the establishment of new ammunition capacity in Canada.

The project continues to move forward aggressively while ensuring effective support to Army high readiness training and the establishment of critical support contracts.

Industrial and Regional 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.