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Table 5: Status Report on Major Crown Projects

 Table of Contents

Airlift Capability Project – Strategic (ACP-S)

Airlift Capability Project – Tactical (ACP-T)

Arctic/Offshore Patrol Ship (AOPS)

Armoured Heavy Support Vehicle System (AHSVS)

Armoured Personnel Carriers (APC)

Canadian Cryptographic Modernization Program (CCMP) Omnibus Project

CF18 Modernization Project

Canadian Forces Supply System Upgrade (CFSSU)

Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project

Canadian Search and Rescue Helicopter Project

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

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)

Joint Support Ship (JSS)

Light Utility Vehicle Wheeled (LUVW)

Main Battle Tank

Maritime Helicopter Project (MHP)

Material Acquisition and Support Information System (MASIS)

Medium To Heavy Lift Helicopter (MHLH)

Medium Support Vehicle System Project (MSVS)

Military Automated Air Traffic System (MAATS) Project

Protected Military Satellite Communications (PMSC)

Submarine Capability Life Extension

Airlift Capability Project – Strategic (ACP-S)

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

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies:


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

4. Prime and Major Sub-Contractors:


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

5. Major Milestones:


Major Milestones

Date

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

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

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

Airlift Capability Project – Tactical (ACP-T)

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

2. Project Phase:Implementation

3. Leading and Participating Departments and Agencies:


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

4. Prime and Major Sub-Contractors:


Prime Contractor Lockheed Martin Corporation, Marietta, Georgia, USA

5. Major Milestones:


Major Milestones

Date

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

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

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

Arctic/Offshore Patrol Ship (AOPS)

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

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

2. Project Phase: Definition

3. Leading and Participating Departments and Agencies:


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

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

5. Major Milestones:


Major Milestones

Date

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

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

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

Armoured Heavy Support Vehicle System (AHSVS)

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

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

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies


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

4. Prime and Major Sub-Contractors


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

5. Major Milestones


Major Milestones

Date

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

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

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

Armoured Personnel Carriers (APC)

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

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies


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

4. Prime and Major Sub-Contractors


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

5. Major Milestones


Major Milestones

Date

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

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

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

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

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


Region

Cash Benefits

Atlantic Canada

$233.7M

Qubec

$181.7M

Western Canada

$391.3M

Small Business

$767.8M

Total

$1,574.5M


Canadian Cryptographic Modernization Program (CCMP) Omnibus Project

1. Description:  The Canadian Cryptographic Modernization Program (CCMP) is a 12-year program (fiscal year 2004/2005 to 2015/2016) that will modernize the Government of Canada’s aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada’s ability to establish secure communications both nationally and internationally. 

The CCMP Omnibus Project includes the following sub-projects:

a. Secure Voice / Telephone Re-key Infrastructure

b. Secure Voice / Telephone Replacement

c. Classified Security Management Infrastructure

d. Combat Identification Replacement

e. Link Encryption Replacement

f. Network Encryption Replacement

g. Secure Radio Replacement

h. Secure Mobile Environment

2. Project Phase:  Definition/Implementation

3. Leading and Participating Departments and Agencies


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

4. Prime and Major Subcontractors


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

5. Major Milestones


Project / Sub-project Major Milestones

Date

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

6. Progress Report and Explanations of Variances

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

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

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

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

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

Link Encryption Replacement is progressing.

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

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

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

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

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

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

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

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

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

7. Industrial Benefits N/A

CF18 Modernization Project

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

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

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

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies:


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

4. Prime and Major Sub-Contractors:

Phase I and Phase II


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

5. Major Milestones:


Major Milestones

Phase I

Phase II

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

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

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

7. Industrial and Regional Benefits:

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

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


Region

Benefits Phase I

Benefits Phase II

Atlantic Canada

$5.0M

$0.2M

Qubec

$158.0M

$0.9M

Ontario

$152.0M

$38.0M

Western Canada

$25.0M

$0.6M

Unallocated

$37.9M

$98.1M

Total

$377.9M

$137.8M


Canadian Forces Supply System Upgrade (CFSSU)

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

2. Project Phase: Close-Out

3. Leading and Participating Departments and Agencies:


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

4. Prime and Major Sub-Contractors:


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

5. Major Milestones:


Major Milestones

Date

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

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

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

The CFSSU project is to be completed by Fall 2008.

7. Industrial and Regional Benefits:


Region

Benefits

Atlantic Canada

$51M

Qubec

$48M

Ontario

$26M

Western Canada

$105M

Unallocated

$10M

Total

$240M


Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project

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

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

2. Project Phase:  Implementation

3. Lead and Participating Departments and Agencies


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

4. Prime and Major Sub-Contractors


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

5. Major Milestones


Major Milestones

Date

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

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

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


Region

Cash Benefits

East

$10.0M

Qubec

$420.2M

Ontario

 $32.1M

West

$12.0M

Unallocated

$32.4M

Total

$506.7M


Canadian Search and Rescue Helicopter Project

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

2.   Project Phase:  Completed

3.   Leading and Participating Departments and Agencies


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

4.   Prime and Major Sub-Contractors


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

5.   Major Milestones


Major Milestones

Date

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

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

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

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

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

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

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

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


Region

Cash Benefits

Atlantic Canada

$43.1M

Qubec

$317.7M

Ontario

$146.5M

Western Canada

$86.2M

Unallocated

$36.3M

Total

$629.8M


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

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

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

2. Project Phase:  Definition/Implementation

3. Leading and Participating Departments and Agencies


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

4. Prime and Major Sub-Contractors


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

5. Major Milestones


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

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

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

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

A Request for Proposal for the Multi-Ship Contracts (docking work periods and refits) resulted in two successful bidders, Halifax Shipyard on the east coast and Washington Marine Group (Victoria Shipyard) on the west coast.  Final negotiations with both shipyards have been completed and contracts awarded. 

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

Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)

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

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies


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

4. Prime and Major Sub-Contractors


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

5. Major Milestones


Major Milestones

Date

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

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

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

a. UAV UOR Op ATHENA

b. BLOS Op ARCHER

c. MEWT Op ARCHER

d. Mini UAV UOR Op ARCHER

e. AWLS Op ARCHER 

f. LCMR Op ATHENA

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

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

Joint Support Ship (JSS)

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

2. Project Phase: Definition

3. Leading and Participating Departments and Agencies:


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

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

5. Major Milestones:


Major Milestones

Date

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

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

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

Light Utility Vehicle Wheeled (LUVW)

1. Description:  Light utility vehicles are highly mobile and essential to facilitating the tactical command of combat, combat support and combat service support units, to assist in the gathering and dissemination of information and to liaise within and between field formations.

The LUVW Project mandate is to replace Canadian Iltis vehicles with two separate vehicle acquisitions: 1,159 Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and 170 Armour Protection Systems ($241.4M), for use by field force units; and 1,061 Militarized Commercial Off-The-Shelf (Mil COTS) vehicles (GM Silverado) ($65.4M) for use primarily by the Reserve Force for a total project cost of $306.8M.

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies


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

4. Prime and Major Sub-Contractors


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

5. Major Milestones


Major Milestones

Date

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

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

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

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

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

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

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

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

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

Main Battle Tank

1. Description:  The purpose of the Tank Replacement Project is to replace Canada's aging Leopard C2 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The Tank Replacement Project is broken into two phases. Phase 1 consists of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT), two Armoured Recovery Vehicles (ARV) and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of up to 100 surplus Leopard 2 MBT from the Netherlands Government. Phase 2 will upgrade and introduce up to 100 Leopard 2 tanks and variants into service with the CF.

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

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies:


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

4. Prime and Major Sub-Contractors:


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

5. Major Milestones:


Major Milestones

Date

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

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

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

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

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

Maritime Helicopter Project (MHP)

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

2. Project Phase: Implementation

3. Leading and Participating Departments and Agencies:


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

4. Prime and Major Sub-Contractors:


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

5. Major Milestones:


Major Milestones

Date

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

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

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


Region

Capital Acquisition

In-Service Support

Atlantic Canada

$239.1M

$825.9M

Qubec

$555.8M

$399.2M

Northern Ontario

$3.2M

$7.6M

Ontario (excluding Northern Ontario)

$924.3M

$1,073.2M

Western Canada

$210.6M

$181.4M

Unallocated

$10.0M

$105.7M

Total

$1,943.0M

$2,593.0M


Material Acquisition and Support Information System (MASIS)

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

2. Project Phase: Implementation – Phase 5

3. Leading and Participating Departments and Agencies


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

4. Prime and Major Sub-Contractors


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

5. Major Milestones

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


Major Milestones

Date

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

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

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

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

Medium To Heavy Lift Helicopter (MHLH)

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

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

2. Project Phase: Definition

3. Leading and Participating Departments and Agencies:


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

4. Prime and Major Sub-Contractors:


Prime Contractor The Boeing Company, Philadelphia, Pennsylvania, USA

5. Major Milestones:


Major Milestones

Date

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

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

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

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

Medium Support Vehicle System Project (MSVS)

1. Description:The Medium Support Vehicle System Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. The MSVS project will cost approximately $1.1B (net of GST) and will deliver the following mix of vehicles:

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

2. Project Phase: Definition

3. Leading and Participating Departments and Agencies:


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

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

5. Major Milestones:


Major Milestones

Date

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

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

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

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

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

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

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

Military Automated Air Traffic System (MAATS) Project

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

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

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies


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

4. Prime and Major Sub-Contractors


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

5. Major Milestones


Major Milestones

Date

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

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

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

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

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


Region

Cash Benefits

Atlantic Canada

$1.6M

Qubec

$1.0M

Ontario

$1.8M

Western Canada

$50.2M

Unallocated

To be determined

Total

$54.6M


Protected Military Satellite Communications (PMSC)

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

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies


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

4. Prime Contractor and Major Sub-Contractors


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

5. Major Milestones


Major Milestones

Date

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

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

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

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

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

Submarine Capability Life Extension

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

The project delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews.

2. Project Phase:  Implementation

3. Leading and Participating Departments and Agencies


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

4. Prime and Major Sub-Contractors


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

5. Major Milestones


Major Milestones

Date

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

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

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

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

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