ARCHIVED - 2008-2009 DPRs - Status Report on Major Crown Projects

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• Agriculture and Agri-Food Canada
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• Canadian Space Agency
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Agriculture and Agri-Food Canada

Status Report on Major Crown Projects

Description:

The National Land and Water Information Service is an initiative of Agriculture and Agri-Food Canada (AAFC) under the Agricultural Policy Framework (APF) to make available, to land-use decision makers, decision tools and environmental information to support and inform local and regional land-use planning and management. This supports the government’s objectives for an environmentally sustainable agriculture sector.

The National Land and Water Information Service will support improved decision making in agriculture through the provision of timely and relevant geo-spatial information to land management decision makers across Canada. The Service will provide a coordinated national approach for managing, interpreting and disseminating information, by strategically linking the land, soil, water, air, climate and biodiversity capacities of federal departments, provincial and municipal governments and non-governmental organizations. The federal government’s desire for promotion of technology through the Government On-Line initiative strengthens the information provision objective of NLWIS.

Project Phases:

Project Definition (2004/05);
Project Implementation (2005/09): Phase 1 (2005/06), Phase 2 (2005/07), Phase 3 (2006/08), Phase 4 (2008/09)

Leading and Participating Departments and Agencies

Lead Department	AAFC
Contracting Authority	AAFC, PWGSC
Participating Departments and Agencies	NRCan, EC, SC, DFO, HC, PWGSC, CSA, INAC, TBS, PSEPC, IC, PC, Archives

Prime and Major Sub-contractors:

Prime Contractor
Major Subcontractor(s)	The Halifax Group;Fujitsu Consulting Canada
Based on AAFC’s existing capabilities with regard to geomatics information technology applications, AAFC will retain overall responsibility for design, development, delivery and ongoing maintenance of the National Land and Water Information Service. Private sector resources will be obtained when required to meet discrete identified gaps in AAFC’s internal capabilities or internal resource availability. In order to ensure compliance with project timelines and minimize transaction and administration costs, existing Government of Canada (GOC) and AAFC procurement instruments (Supply Arrangements, Standing Offers, etc) will be used as appropriate to the circumstances. Procurement of specialized IT and other professional services will be structured to maximize knowledge transfer to AAFC in order to ensure cost-effective maintenance of the National Land and Water Information Service.

Major Milestones

Major Milestone	Date
Milestone
Preliminary Project Approval	10-Apr-03
Project Management Office Established	30-Jun-03
Preliminary Project Approval Amendment	08-Apr-04
Proof of Concept Completed	31-Jan-05
Effective Project Approval Documentation Completed	31-Jan-05
Effective Project Approval	02-May-05
Phase 1 (Single Window) completion	31-Mar-06
Phase 2 (Geospatial Environment) commencement	01-Sep-05
Phase 2 (Geospatial Environment) completion	30-Nov-07
Phase 3 (National Source for Agri-environmental Geospatial Information) commencement	01-Jan-06
Phase 3 (National Source for Agri-environmental Geospatial Information) completion	31-Mar-09
Phase 4 (Partner Information Integration) completion	31-Mar-09

Progress Report and Explanations of Variances

The Treasury Board approved the National Land and Water Information Service (NLWIS) with an estimated cost of $100.1 million. The NLWIS Project received Preliminary Project Approval on April 10, 2003 and was designated a Major Crown Project. The National Land and Water Information Service Project received Effective Project Approval from Treasury Board in May 2005.

Phase 1 (Single Window) was completed in March 2006.
Phase 2 (Geospatial Environment) was initiated in September 2005 and was completed in November 2007.
Phase 3 (National Source for Agri-environmental Geospatial Information) commenced in January 2006 and provided accessibility to new GIS applications and services to users across Canada. Direct access to geospatial data, maps and tools is now available. Users can access information and data in both official languages and in standardized formats.
Phase 4 (Partner Information Integration) ran concurrent with Phase 3 and saw the completion of the establishment of the enterprise geomatics environment within AAFC, as well as the integration of essential data from external partners to support a joint forestry and agriculture-based biofuels application, and the development of land cover data across the country.

No additional funding has been provided by the Treasury Board or by the department. NLWIS was completed on March 31, 2009 under budget. NLWIS has evolved into an on-going service now called Agri-Geomatics located within the newly formed Agri-Environment Services Branch of AAFC.

Industrial Benefits

The National Land and Water Information Service is a national program that will use and provide information in all the provinces. Resources required to support implementation will be located across Canada.

Canada Border Services Agency

 Status Report on Major Crown Projects

eManifest

Description

One of the strategies that the Canada Border Services Agency (CBSA) employs in managing the border is the use of advance information to identify and stop high-risk people and goods before they arrive in Canada. Having successfully implemented the marine and air components of the Advance Commercial Information initiative, the CBSA is now in Phase III, which is known as eManifest.

eManifest is a key priority under the Security and Prosperity Partnership of North America. Under eManifest, carriers, freight forwarders and importers will transmit real-time and concurrent advance commercial and crew information to the Agency. eManifest will contribute to a key Agency strategy — to "push the border out" — and position the CBSA to obtain the information necessary to identify and interdict threats before their arrival in Canada. This next phase of the Advance Commercial Information initiative solidifies the Agency's commitment to provide CBSA officers with electronic pre-arrival cargo information so that they have the right information at the right time to identify health, safety and security threats related to commercial goods before the goods arrive in Canada.

eManifest will feature the following:

• reporting using electronic data interchange;

• an Internet portal;

• automated risk assessment;

• an enhanced client notification system;

• a data warehouse and associated business intelligence tools; and

• compliance management and management information reporting.

Project Phase

eManifest is currently in the analysis and design phase. The following eManifest readiness activities have been completed or are nearing completion:

• information technology prerequisites; and

• Synchronous Technology and Application Release configuration and independent service delivery.

Preliminary project approval was granted on October 5, 2006, and effective project approval was granted on November 29, 2007.

Leading and Participating Departments and Agencies

Lead department or agency	Canada Border Services Agency
Contracting authority	Canada Revenue Agency and Public Works and Government Services Canada
Participating departments and agencies	n/a

Prime and Major Subcontractor(s)

Prime contractor	n/a
Major subcontractor(s)	n/a

Major Milestones

Project start date: October 2006.
Estimated date of completion: Fall 2014. This date has been revised to take into account the requirement for full implementation by project stakeholders and the CBSA.

Major Milestones

Ref. #	Major Milestone	Date
1	eManifest readiness — Information technology prerequisites and Phase I deployment of the Synchronous Technology and Application Release configuration and independent service delivery.	Implemented November 2007
2	eManifest readiness — Automated in-transit pilot project (Phase I): Enhancements to support linkages between the existing commercial systems; and Enhancements to the notification system to advise trade chain partners when information has been received.	Implemented June 2008
3	Electronic reporting for rail (Phase I)	Implemented March 2009
4	Electronic data interchange reporting in highway mode Internet portal for highway mode Development of eManifest compliance management and client support program	Spring 2010
5	Electronic reporting for rail (Phase II)	Fall 2010
6	Electronic data interchange reporting for secondary cargo Internet portal for secondary cargo Enhanced notification system	Summer 2011
7	Electronic data interchange reporting for importer admissibility data eManifest compliance management and client support program Internet portal for importers/brokers Enhanced notification system Passage for all modes	Spring 2012
8	Risk assessment for all modes Business intelligence data warehouse	Summer 2012
9	Electronic data interchange reporting for marine/air crew Risk assessment for marine/air retrofits Passage for highway mode retrofit	Winter 2012

Progress Report and Explanations of Variances

In 2008–09, the following eManifest activities were accomplished:

• Progress was made in the development and deployment of various project components and readiness activities.

• Investments in information technology infrastructure were made to enable the CBSA to simultaneously deliver on several initiatives. The level of systems integration within the CBSA has been reduced so that each line of business will be able to develop, test and implement new software and applications independently.

• Two system releases occurred in 2008–09. These preparatory releases are foundational requirements for future builds. In addition, progress was made to develop the Internet portal to be used by the trade community and to plan and prepare for the future implementation of other infrastructure components, including the electronic reporting of highway information by carriers, a data warehouse and business intelligence tool sets.

• eManifest readiness — automated in-transit pilot project (Phase I):

  • enhancements were implemented that support linkages between the CBSA's and U.S. Customs and Border Protection's existing commercial systems;

  • to accompany the system upgrades, the CBSA and U.S. Customs and Border Protection have agreed to work cooperatively to communicate information related to in-transit cargo shipments; and

  • upgrades were made to the CBSA's notification system that advises trade chain partners when information has been received.

As a result of the above-referenced activities, the CBSA will receive cargo and conveyance data related to Canadian goods moving in transit via the United States in electronic format from trade chain members and exit notifications from U.S. Customs and Border Protection.

• The CBSA implemented Phase I of a two-phased approach to update the CBSA's business system to allow for multiple message standards from the rail importing community.

• On March 30, 2009, Bill S-2, An Act to amend the Customs Act, was heard at the Senate Standing Committee on National Security and Defence. On March 31, 2009, the Committee's report was tabled in the Senate.

• Given the size and scope of eManifest, a strong emphasis on professional project management and the use of appropriate tools for the project environment was deemed critical to ensure its success. The project schedule was officially approved and a baseline was established to help track and monitor the progress of key deliverables moving forward.

• The Electronic Commerce Client Requirements Document for highway carriers was distributed to the trade community for discussion and finalization.

• The CBSA regularly met with external stakeholders through the eManifest Stakeholder Partnership Network and other consultative forums on the design, development, implementation and communication of eManifest. The CBSA also held significant consultations with the trade community, through the eManifest Stakeholder Partnership Network, on eManifest design and development issues, including the following:

  • policy decisions;

  • importer admissibility data requirements;

  • shipment information requirements;

  • the Electronic Commerce Client Requirements Document for highway carriers; and

  • the eManifest portal prototype.

Explanation of variances:

• Effective project approval was granted to the Agency in November 2007.

• Agency reference levels still reflect preliminary project approval funding amounts. This has resulted in carry-forward variances to reflect effective project approval project plans.

• Expenditures were less than expected in 2008–09 due to re-planning of certain activities of the project, which has resulted in a carry forward into 2009–10.

• The project plan has been revised to align to available fiscal year budgets.

Industrial Benefits

Because eManifest will help provide CBSA officers with the right information at the right time, Canadian industry will benefit from more certainty at the border and from streamlined release processes. This will enable both industry and the CBSA to manage commercial import volumes more effectively. In addition, eManifest functionality will enable the seamless movement of goods through secure international trade-supply chains. With improved controls along the international trade-supply chains, the CBSA can more efficiently allocate resources to ensure that integrated border services further national security and safety priorities, while continuing to facilitate the free flow of low-risk people and goods.

Air Cargo Security

Description

The primary objective of the Air Cargo Security initiative is to develop a comprehensive air cargo security regime in Canada that will mitigate the risks associated with the introduction of explosives in cargo or mail and the use of cargo aircraft as weapons. Through design and pilot testing, supply-chain programs to identify low-risk cargo will be developed and procedures will be identified to screen high-risk and targeted cargo.

Project Phase

Phase 1: completed by Transport Canada.
Phases 2 and 3: project development and pilot testing was completed on March 31, 2009.

Note: Some milestones have completion dates after March 31, 2009, due to delays in completing one or more constituent deliverables for a number of reasons. Members of the steering committee, including the Treasury Board of Canada Secretariat, were provided with updates on these delays as they were identified. All dates shown in the Major Milestones table are the most recent dates of completion and are extracted from the latest version of the baseline master schedule for the project.

Leading and Participating Departments and Agencies

Lead department or agency	Transport Canada
Contracting authority	Public Works and Government Services Canada and the Canada Revenue Agency
Participating departments and agencies	Canada Border Services Agency

Prime and Major Subcontractor(s)

Prime contractor	n/a
Major subcontractor(s)	n/a

Major Milestones

Start date: September 1, 2006.
Projected date of completion: March 31, 2009.

• The project definition will lay the groundwork for future enhancements leading to a measured and balanced Canadian approach to align the Air Cargo Security initiative with international standards.

• The project will explore ways to further protect aviation security and those working in the air cargo supply chain while ensuring the efficient flow of goods both domestically and internationally.

• The milestones listed below are aimed at ensuring the project is progressing in an approved manner as per the approved project plan.

Major Milestones

Ref. #	Major Milestone	Date
1	Report to the Treasury Board of Canada Secretariat on project management plans and controls submitted.	July 7, 2007
2	Design, development and evaluation security standards completed.	March 31, 2008
3	Definition of the operating environment, characteristics and screening models for "break bulk" air cargo screening completed.	October 31, 2007
4	Commercial off-the-shelf Secure Supply Chain Management System prototype populated.	December 31, 2007
5	Initial evaluations of screening technologies in controlled environment completed.	February 29, 2008
6	Interim report on project progress submitted to the Treasury Board of Canada Secretariat.	March 31, 2008
7	Piloting of the Secure Supply Chain Management System prototype completed.	June 2, 2008
8	Report on the Security and Prosperity Partnership of North America commitments for air cargo security completed.	June 30, 2009
9	Evaluation of security assessments and plans for the project completed.	July 31, 2008
10	Assessment of potential program enhancements for the CBSA that could be derived from the Secure Supply Chain Management System completed.	May 29, 2009
11	Recommendations for air cargo screening for the Air Cargo Security initiative completed.	August 31, 2008
12	Interoperability analysis between Transport Canada and the CBSA completed.	September 30, 2008
13	Supply-chain system regulatory and compliance program requirements drafted.	May 31, 2009
14	Final recommendations for the Air Cargo Security initiative completed.	June 18, 2009
15	Close out of phases 2 and 3.	March 31, 2009 (some work has been carried into 2009–10)

Progress Report and Explanations of Variances

• The CBSA is accountable for completing milestone 10.

• The report has been written and is being reviewed for final approval.

• Transport Canada is responsible for milestones 1 through 15 except for milestone 10.

• Some milestones have completion dates after March 31, 2009, due to delays in completing one or more constituent deliverables for a number of reasons. Members of the steering committee, including the Treasury Board of Canada Secretariat, were provided with updates on these delays as they were identified. All dates shown in the Major Milestones table are the most recent dates of completion and are extracted from the latest version of the baseline master schedule for the project.

Industrial Benefits (Business Goals)

• Protect the Canadian public and those working in the air cargo supply chain.

• Streamline trade through risk management.

• Promote the movement of goods both domestically and internationally through effective trade supply chains.

• Improve the ability of the CBSA to detect high-risk cargo.

• Improve controls and make better and more efficient allocations of CBSA resources.

• Ensure the efficient flow of goods that contributes to Canada's economic prosperity.

Canadian Space Agency

3.3.5) Status Report on Major Crown Projects

RADARSAT-1

Description

RADARSAT-1, Canada's first Earth Observation satellite is the only fully operational civilian remote sensing satellite that carries Synthetic Aperture Radar (SAR). This technology, contrary to optical sensor satellites, has the capacity to image day and night, in all weather conditions, regardless of cloud cover, smoke, haze and darkness. Launched in November 1995, RADARSAT-1 was meant to operate for five years to consistently supply timely and high-quality data to RADARSAT International (RSI), now a wholly owned subsidiary of MacDonald, Dettwiler and Associates (MDA), and other partners (federal and provincial government departments, NASA and the U.S. National Oceanic and Atmospheric Administration). RADARSAT-1 has continued to supply SAR data to clients in its extended mission, now in the 14^th year of operation.

RADARSAT-1 operations continue with the same level of high performance for satellite reliability and image production. Since RADARSAT-2 has now been commissioned and declared operational, the CSA has notified NASA and NOAA that the RADARSAT-1 CSA-NASA-NOAA IMOU is terminated. In other words, no new RADARSAT-1 data are available to NASA and NOAA since May 2, 2008 under this IMOU. Deliberations on the continuation of RADARSAT-1 operations through consultations with main users have been completed and accordingly operations phase have been extended by three years beyond March, 2009.

RADARSAT-1 acquires high quality images of the Earth, covering most of Canada every 72 hours and the Arctic every 24 hours. It has proven itself in gathering the data needed for more efficient resource management (e.g. support to fishing, shipping, oil and gas exploration, offshore drilling, mapping) as well as ice, ocean and environmental monitoring, disaster management, and Arctic and offshore surveillance.

Leading and Participating Departments and Agencies

Sponsoring Agency:	Canadian Space Agency
Contracting Authority:	Public Works and Government Services Canada
Participating Departments:	Environment Canada Natural Resources Canada (Canada Centre for Remote Sensing)

Prime and Major Sub-Contractors

Prime Contractor
EMS Technologies (now MacDonald, Dettwiler and Associates)	Ste.-Anne-de-Bellevue, Quebec
Major Sub-Contractors
MacDonald, Dettwiler and Associates SED Systems EMS Technologies COM DEV Lockheed Martin	Richmond, British Columbia Saskatoon, Saskatchewan Ottawa, Ontario Cambridge, Ontario Longueuil, Quebec
Other Contractors
Ball Aerospace RADARSAT International (RSI) (now Geospatial Services, MacDonald, Dettwiler and Associates)	Boulder, Colorado Richmond, British Columbia

Major Milestones

Major milestones of the RADARSAT-1 Major Crown Project are now completed.

Major Milestones	Date
Preliminary studies	Complete
Feasibility and concept definition	Complete
Systems requirement and preliminary design	Complete
Development and testing up to qualification test review	Complete
Manufacture of the prototype flight sub-systems up to acceptance testing of the sub-systems	Complete
Assembly and integration of the sub-systems up to flight readiness review, plus post-launch and commissioning activities up to system acceptance	Complete
First Antarctica mission Second Antarctica mission Original Mission Life of five years	Complete Complete Complete
Satellite operations	April 1996 to March 2012

Progress Report and Explanation of Variances

Effective Program Approval was obtained for RADARSAT-1 in March 1991, with launch in November 1995 and beginning of operations in April 1996. The initial system included receiving stations for Synthetic Aperture Radar (SAR) data in Prince Albert (Saskatchewan), Gatineau (Quebec), Fairbanks (Alaska) and McMurdo (Antarctica). The CSA and RADARSAT International (now MDA-GSI) have since signed agreements with another 36 network stations distributed around the world: Argentina, Australia, Brazil, China, Italy, Japan, Kasakhstan, South Korea, Malaysia, Norway, Puerto-Rico, Russia, Saudi Arabia, Singapore, Taiwan, Thailand, Turkey, the United Kingdom and the United-States. Presently, a station in Portugal is undergoing the certification process. This list includes the agreements that have been also signed with transportable stations for the direct reception of RADARSAT-1 data: one in Italy, five in the U.S., one in Taiwan and one in France. Even more stations are expected to join the RADARSAT network in 2009. Since the IMOU with NASA/NOAA has been terminated effective May 2, 2008, McMurdo (Antarctica) is no longer available for RADARSAT-1 data reception and Fairbanks (Alaska) is now receiving data as a network station. Given that now there is no on-board recorder capability, one recorder was lost a few years back and the second one recently, more reliance will have to be put on direct reception at Network Stations.

Following a commissioning period, routine operations of RADARSAT-1 commenced in April 1996. The average system performance is being maintained at 95%. The worldwide client base includes more than 600 commercial and government users from over 60 countries.

Several system upgrades were completed over the past few years to enhance performance, reliability, and maintainability of RADARSAT-1. Highlights include: November 2006 - completed memory upgrade of database servers; December 2006 - completed development of a new reporting tool for the location of RADARSAT-1 archives; January 2007 - completed upgrade of all Mission Management Office workstations; March 2007 - completed upgrade of the Network File System server; August 2007 - implemented and demonstrated RADARSAT-1 contingency data ordering processes through operational tests with other Earth Observation satellites which resulted in successful data acquisition, processing and delivery of three ENVISAT images; October 2008 - completed development of a new tool to facilitate ingestion of reports for improving accuracy of the RADARSAT-1 catalogue; January 2009 - completed upgrade of database server disks to a higher capacity.

Since October 2000, the CSA is a signatory, along with the European Space Agency (ESA) and the Centre National d'Études Spatiales (CNES) in France, to the "International Charter on Space and Major Disasters". The emphasis of the Charter is on multi-satellite support for disaster response and mitigation efforts around the world utilising RADARSAT-1 and satellites of other Charter member agencies. Since its official launch, the Indian Space Research Organisation (ISRO), the National Oceanic and Atmospheric Administration (NOAA), Argentina's Comisión Nacional de Actividades Espaciales (CONAE), the Japanese Aerospace Exploration Agency (JAXA), the United States Geological Survey (USGS) and the Disaster Monitoring Constellation (DMC) along with the British National Space Centre (BNSC) and the China National Space Administration (CNSA) have also joined the Charter and participate fully in its operations.

As of March 31, 2009, there have been 213 activations of the Charter for events such as: floods in Afghanistan, U.S., Uruguay, U.-K., Pakistan, China, India, Vietnam, North Korea, West Africa, Slovenia, Dominican Republic, Mexico, Bangladesh, Fiji, South Africa, Bolivia, Ecuador, Namibia; Tsunami in the Solomon Islands; Earthquakes in Afghanistan, Chili, Peru, Rwanda, and China; Volcanic eruptions in Colombia and Ecuador; oil spills off the coasts of Chili and Norway; forest fires in the Canari Islands, Paraguay, Greece, California and Chili and; wind storms (hurricanes and tornadoes) in Mexico, Nicaragua, U.S. and Myanmar. The Charter operations also included an activation in Canada in April 2008 for floods in New Brunswick. The most recent devastating disasters, namely Cyclone Nargis in Myanmar, Hurricanes Gustav, Hanna and Ike in Haiti and the U.S. and the earthquake in China were covered with the assistance of Canada's RADARSAT-1.

The RADARSAT-1 system has been improved to provide on average a less than 2.5-hour turnaround in the electronic delivery of images to the Canadian Ice Service (CIS) for the production of ice charts and bulletins for the Canadian Coast Guard and other marine clients. The CIS continues to be one of the leading users of RADARSAT-1 data since the first operational data began to flow in February 1996. Recently, the CIS has been collaborating with Noetix Research, the CSA, and RSI (now MDA) on an ESA-sponsored Global Monitoring for Environment and Security (GMES) Project - The Northern View - to provide regular RADARSAT-1 images in support of a Floe Edge Service for two communities in the Canadian Arctic.

The RADARSAT-1 Background Mission has archived one of the largest microwave remote sensing data collections in the world. In fact, it is the first multi-mode uniformly collected database of its kind ever created. The data archive is the result of several Background Mission global coverage campaigns undertaken in the past seven years. These include a complete coverage of the world's continents, continental shelves and polar ice caps, as well as complete coverage of nearly the Earth's entire landmass with two RADARSAT-1 imaging beams for the first ever beam-pair stereo data collection. This is the world's largest radargrammetric dataset currently available. Some of the continents, including North America, were covered more than once to generate seasonal snapshots in the form of wide-area SAR mosaics. High-resolution RADARSAT-1 image mosaics of Canada, the U.S., Australia and Africa were produced with the Background Mission data. Several time- and site-specific coverage types have also been done, such as that of the remote oceanic island localities, the world's major cities and capitals. A seasonal coverage of the tropical deltas is also underway, as is also a four-season continuous coverage of the Arctic. The latter coverage, which now has uninterrupted data records over the Arctic since the summer of 2003, supports the growing interest in the Arctic and climate change captured within the International Polar Year (IPY) activities. These baseline coverage campaigns of RADARSAT-1 have established benchmarks for RADARSAT-2 and the follow-on Canadian SAR missions to build upon.

MacDonald, Dettwiller and Associates (MDA) Geospatial Services Inc. (GSI) continues to provide Earth-Observation data, derived information products, and leading-edge services to global clients. The broad range of MDA/GSI products includes geo-corrected imagery, digital elevation models, and application-specific products such as flood and ocean oil-seep vectors to meet the demands for new markets. Products are delivered to clients via Internet in near-real time for time-critical operations such as disaster management and ship navigation. Other services include training, monitoring and emergency response services, and custom product generation, as well as Geographic Information Systems (GIS) project implementation.

Industrial Benefits

The Canadian Space Agency undertook a study to determine the achievements of RADARSAT data in support of ice mapping and related activities in Canada. To date, the Canadian Ice Services (CIS) is the main Canadian Government operational user of RADARSAT-1 data. RADARSAT-1 provides observations over a wider geographical area, at much lower cost and risk, and in much less time than with an aircraft. As a result, CIS has been able to improve its operational efficiency. Over five years (1995 to 2000), the net average annual savings to CIS operations have been about $7.7 million per year ($38.5 million over 5 years). The same annual benefits have continued for the past eight years.

The Canadian Coast Guard (CCG), the largest customer of CIS products, has felt these benefits most significantly. The CCG Ice Operation Centres can provide improved routing information to commercial shipping, which allows for faster transit times. The shipping industry has benefited from the accuracy of RADARSAT information to produce ice charts. The shipping companies believe that as a result of RADARSAT based ice charts, there have been savings in transit time through ice-infested waters. These commercial shipping savings are estimated to be $18 million a year. Other benefits included less damage to ships and a reduction in the need for CCG escorts. As for the CCG, an estimated dollar savings in both operating costs and transit time to be between $3.6 million and $7 million a year, depending on the severity of ice conditions.

In the past, the prime contractor SPAR and its Canadian sub-contractors created over 2,000 person-years of high technology employment during the construction phase of RADARSAT-1. Ongoing mission operations employ 75 people at the CSA's headquarters in St-Hubert (Quebec), 7 in Saskatoon (Saskatchewan), 15 at ground stations in Prince Albert (Saskatchewan) and Gatineau (Quebec), as well as more than 80 at RSI (now MDA) in Richmond (British Columbia). In the highly competitive marketplace for space-based information, MDA continues to capture roughly 15% of the world's space borne remote sensing market. MDA has continued to process scenes and integrate RADARSAT data into information products for delivery to nearly 600 clients in 60 countries, and furthermore, MDA has signed up 80 international distributions, 18 RADARSAT-1 Network Stations and 11 Resources Centres. The market development for data archives is likely to be significant and an area in which new benefits may develop.

RADARSAT-2

Description

RADARSAT-2 is the next generation synthetic aperture radar (SAR) Canadian Earth Observation satellite. Launched in December 2007, RADARSAT-2 provides all-weather, day-and-night coverage of the entire globe to support fishing, shipping, oil and gas exploration, offshore drilling, mapping and ocean research. Equipped with a C-band radar system, it is the first fully commercial SAR satellite to offer multi-polarization, an important aid in identifying a wide variety of surface features and targets. It also has the capability to image both the right and left with a resolution down to three metres and to access an area of 800 kilometres on either side. This translates into a new range of products and services, which contributes valuable new information on natural resources and the global environment.

The RADARSAT-2 Major Crown Project, in partnership with MacDonald, Dettwiler and Associates (MDA), carried out the design, development, testing, deployment and operations of a space-borne SAR satellite to provide global coverage of terrestrial phenomena as a follow-up to RADARSAT-1. The current estimated total cost from CSA's budget is $417.8 million.

RADARSAT-2's design and construction improves upon RADARSAT-1, with new capabilities to ensure Canada's continued leadership in the satellite remote sensing global marketplace and to create a commercial industrial satellite remote sensing industry in Canada.

Leading and Participating Departments and Agencies

Sponsoring Agency:	Canadian Space Agency
Contracting Authority for the CSA/MDA Master Agreement:	Canadian Space Agency
Participating Departments:	Natural Resources Canada (Canada Centre for Remote Sensing) Environment Canada Industry Canada Fisheries and Oceans National Defence Foreign Affairs International Trade Agriculture Canada

Prime and Major Sub-Contractors

Prime Contractor
MacDonald Dettwiler, and Associates (MDA)	Richmond, British Columbia
Major Sub-Contractors
EMS Technologies (now MacDonald Dettwiler, and Associates) Alenia Aerospazio AEC Able Engineering Co. RADARSAT international (RSI) (now MacDonald Dettwiler, and Associates) STARSEM	Ste.-Anne-de-Bellevue, Quebec Rome, Italy Goletta, California Richmond, British Columbia Baikonur, Kazakhstan

Major Milestones

The major milestones on Major Crown Projects, by phase, are the following:

Phase	Major Milestones	Date
A and B	Requirement Definition	June 1999
C	System Design	May 2002
D	Sub-system Construction Integration and Testing Pre-launch Preparations Launch/System Commissioning	September 2005 January 2007 July 2007 December 2007 April 2008
E	Operations	2008 to 2015

Progress Report and Explanation of Variances

In June 1994, the government directed the CSA to develop an arrangement with the private sector for the development and operation of a RADARSAT follow-on program to maintain continuity of data following RADARSAT-1. In February 1998, following a formal Request for Proposal, MDA was selected to construct and operate RADARSAT-2.

The CSA and MDA signed a Master Agreement in December 1998 for the RADARSAT-2 mission, under a firm price agreement in which the government contribution was $225 million, in exchange for data. MDA was to invest $80 million. The Master Agreement between the CSA and MDA was updated in January 2000 to reflect changes in the schedule and the latest cost estimates. The company (MDA) is responsible for spacecraft operations and business development, while the CSA is responsible for arranging the launch and maintaining the long-term national archive of RADARSAT-2 data. The CSA will also provide an additional "in-kind" contribution of certain assets, plus the services of its David Florida Laboratory (DFL) and the NRC Institute of Aerospace Research Laboratory for spacecraft integration and testing.

In November 1998, Treasury Board (TB) approved the RADARSAT-2 Major Crown Project with a funding envelope of $242.2 million. In March 2000, Treasury Board approved an increase of $47.1 million to cover the cost of changing bus suppliers, required by U.S. government restrictions imposed on the U.S. bus supplier at that time, and an increase of $12.3 million for upgrades to existing satellite ground station infrastructures. In June 2000, Treasury Board approved an increase of $108 million to cover the cost of procuring a commercial launch as a result of NASA withdrawing from the agreement to provide launch for RADARSAT-2 in exchange for data, as it did for RADARSAT-1. In June 2001, Treasury Board approved an increase of $6 million to cover the cost of critical modifications to be made to the RADARSAT-2 spacecraft in order to accommodate a potential future tandem mission with RADARSAT-3.

The development of the RADARSAT-2 satellite was completed at a slower pace than planned. Delays encountered by the main contractor and sub-contractors in the production of some of the satellite components have resulted in a significant delay in the assembly, integration and testing of the spacecraft. The Extendible Support Structure (ESS), one of the primary spacecraft sub-systems, was delivered to the Assembly, Integration and Test (AI&T) site at the DFL in October 2003. The Solar Arrays and the Bus were delivered to DFL in April and May 2004, respectively. The SAR antenna was delivered in September 2005. The assembly, integration and test of the RADARSAT-2 spacecraft at the DFL, along with the operations-preparations activities at the CSA in St-Hubert were successfully completed in September 2007. RADARSAT-2 was launched on December 14, 2007 and associated commissioning activities were completed by the end of April 2008. As a result, the necessary procedures and tools were developed to provide fully operational order desk services to the Government of Canada (GoC) clients with regard to order handling, data acquisition planning, data archiving and web-based reporting on the client usage of the RADARSAT-2 SAR payload.

The additional costs to complete the construction and launch of RADARSAT-2 were at the main contractor's expense. However, these additional delays required that the CSA RADARSAT-2 project office remained operational to cover the remaining activities until project close-out. With RADARSAT-2 being fully operational and the government departments making regular use of the data, the CSA is preparing the closure of the RADARSAT-2 Major Crown Project with the objective to submit the closure report to Treasury Board in Fall 2009.

Industrial Benefits

Significant industrial benefits in the space and Earth observation sectors are expected from this next-generation satellite system. The RADARSAT-2 program will generate employment growth in the Canadian knowledge-based economy, mostly from export sales, and spur the growth of small- and medium-sized businesses as the Canadian infrastructure and services industry continues to grow.

A major objective of this project is the transition of the Earth observation industry from the public sector to the private sector. The intention is to build on the SAR data and value-added markets established with RADARSAT-1 to strengthen the Canadian industry's position as a supplier of SAR-related technology, systems and value-added products and services. Specifically, manufacturing potential and competitiveness will be encouraged in Canadian industry in the areas of phased array antenna design/manufacture, high performance receiver/transmitter design and manufacture, and enhanced structure design. Moreover, opportunities will be created for the export of ground station systems. The new capabilities also make new applications possible, creating new and expanded markets for data sales and value-added products.

As of March 31, 2009, the CSA had funded $384.4 million worth of work to Canadian industry directly attributable to the RADARSAT-2 Major Crown Project (MCP). Direct industrial benefits from the construction of RADARSAT-2 had benefited all regions of Canada. The regional distribution of direct industrial benefits is shown in the following table.

Regional Distribution of RADARSAT-2 Contracts
(As of March 2009)

Program	British Columbia	Prairie Provinces	Ontario	Quebec	Atlantic	Total Canada
RADARSAT-2	59.1%	0.3%	10.2%	29.9%	0.5%	100%

Note: Due to rounding, decimals may not add up to totals shown.

Summary of Non-Recurring Expenditures ($ in millions)
(As of March 2009)

Program	Current Estimated Total Expenditure	Actuals at March 31, 2009	Future Years
RADARSAT-2	417.8	417.6	0.1

RADARSAT Constellation

Description

The RADARSAT Constellation is the follow-on to RADARSAT-1 and RADARSAT-2. RADARSAT-1 was launched in 1995 and is still operating. RADARSAT-2, developed in partnership with the private sector, was launched in 2007 for a seven-year mission. Canada has established itself as a leading global supplier of C-band satellite radar data. The RADARSAT Constellation will enhance this leadership and position Canadian industry in technology and value-added product markets.

The RADARSAT Constellation is designed as a scalable constellation of three small satellites. The satellites will be launched in 2014, 2015 and 2016. With a constellation, the time between successive imaging of the same part of the Earth (revisit time) is significantly reduced. The creation of a three-satellite constellation will increase the frequency of available information, as well as the reliability of the system, making it better suited to operational requirements of Departments. In the event of a satellite failure, the other satellites can continue to provide a reduced level of service. The lower cost of satellites facilitates the replacement of individual satellites and makes the system scalable.

The scope of the RADARSAT Constellation Major Crown Project (MCP) includes the design, development manufacture, integration, test and launch of the satellites plus the design, development, manufacture and installation of the associated ground segment. One year of operation of the 3-satellite constellation is also included as well as an applications development program.

The RADARSAT Constellation will provide all-weather day and night data in support of three main user areas: maritime surveillance, disaster management and ecosystem monitoring. The three satellite constellation provides average daily coverage of most of Canada and its surrounding waters. Coverage increases significantly in Canada's North. The constellation will provide coverage two to three times daily of the Northwest Passage.

In support of maritime surveillance requirements of Environment Canada, Department of National Defence, Department of Fisheries and Oceans, Canadian Coast Guard and Transport Canada, the RADARSAT Constellation is the principal data source envisaged for wide area surveillance of Canada's remote areas and marine approaches. Only satellite data can offer regular cost effective coverage to task ships and aircraft to intercept suspect vessels. The daily coverage of marine areas will also support fisheries monitoring, ice and iceberg monitoring, pollution monitoring and integrated ocean and coastal zone management.

In support of disaster management, both in Canada and globally, the RADARSAT Constellation can provide high resolution, all-weather (3 m) imagery of most places in the world on a daily basis. This data is critical to disaster mitigation, warning, response and recovery. Disaster types supported include flood monitoring and relief, oil spills, changes in the permafrost in northern Canada, volcano and earthquake warning and hurricane monitoring.

In support of ecosystem monitoring of Natural Resources Canada, Environment Canada, Parks Canada and Agriculture and Agri-foods Canada, the RADARSAT Constellation will be a critical source of information for agriculture, forestry and wildlife habitat. The Constellation will also provide medium resolution data for wide area change detection, supporting water quantity monitoring, wetlands mapping and coastal change monitoring.

In addition, the RADARSAT Constellation develops Canadian high technology design and manufacturing capabilities and the integration of satellite data into information products and services. Canada's space and geomatics industries will benefit from increased positioning on international markets and privileged access to data essential to many international users.

The RADARSAT Constellation will provide C-band SAR data continuity to existing RADARSAT users, including the Canadian Ice Service, which relies on SAR data to support safe shipping in Canada.

Sponsoring Agency:	Canadian Space Agency
Contracting Authority:	Public Works and Government Services Canada
Participating Departments:	Natural Resources Canada Environment Canada National Defence Foreign Affairs and International Trade Industry Canada Fisheries and Oceans Agriculture and Agri-foods Canada Transport Canada Public Security Indian and Northern Affairs Canada Parks Canada

Prime and Major Sub-Contractors

Prime Contractor
MacDonald Dettwiler, and Associates (MDA)	Richmond, British Columbia
Major Sub-Contractors
MacDonald, Dettwiler and Associates Magellan Aerospace, Bristol Aerospace COMDEV Limited MacDonald, Dettwiler and Associates	Ste.-Anne-de-Bellevue, Quebec Winnipeg, Manitoba Cambridge, Ontario Halifax, Nova Scotia

Major Milestones

The major milestones on Major Crown Projects, by phase, are the following:

Phase	Major Milestones	Date
A	Requirement Definition	March 2008
B	Preliminary Design	March 2010
C	Detailed Design	January 2012
D	Launch satellite #1 Launch satellite #2 Launch satellite #3	May 2014 August 2015 November 2016
E1	Operations (part of MCP)	to March 2018
E2	Operations (not part of MCP)	2018 to 2024

Progress Report and Explanation of Variances

On December 13, 2004, the Domestic Affairs Committee of Cabinet granted approval-in-principle to a ten-year, $600 million program to implement a RADARSAT Constellation aimed at addressing user needs in relation to Canadian sovereignty and marine surveillance, environmental monitoring and change detection, and disaster management. The RADARSAT Constellation is to be government-owned and operated.

In Budget 2005, the CSA was provided with an additional $110.9 million over five years (2005-2006 to 2009-2010). Combined with a further $89.1 million from the CSA's reference levels, a total of $200 million was identified for CSA to work with the Canadian space industry on the development of the next generation of advanced radar remote sensing satellites. This funding covers Phases A (Initial Planning and Identification Phase) through C (Detailed Definition Phase) of the RADARSAT Constellation Project, but is insufficient for building and operating the satellites.

On June 6, 2005, Treasury Board granted Preliminary Project Approval (PPA) for the RADARSAT Constellation and expenditure authority for the Project Initial Planning and Identification Phase A at a substantive cost estimate of $13 million (excluding GST). Phase A sought to finalize feasibility studies, define user requirements, payload and bus options for the mission, and reduce technology risks for the antenna, transmit/receive modules, and sensor electronics.

The Phase A work started in July 2005 and was completed in December 2006. Phase A was then extended to allow additional technical risk reduction activities to continue during the period prior to the Phase B contract award. This was completed in March 2008.

A revised PPA Treasury Board Submission to proceed to Phases B and C was approved in March 2007. In December 2006, Public Works and Government Services Canada (PWGSC) initiated a competitive Request for Proposal (RFP) process to identify a prime contractor for the RADARSAT Constellation project (i.e., for Phases B/C/D of the space segment and a portion of the ground segment) and negotiate a contract for Phases B and C with the winning prime contractor, MDA.

The contract for Phase D would follow successful completion of Phases B and C, obtaining the necessary funding and the granting of Effective Project Approval (EPA) from Treasury Board. In September 2008, PWGSC obtained authority to enter into a contract with MDA. Negotiations for Phase B were completed in October 2008 and the contract for Phase B was awarded to MDA in November 2008. It is planned to amend the contract for Phase B to include the scope of Phase C once the negotiations for Phase C have concluded. Phases B and C are planned to last approximately 3 years.

Industrial Benefits

Significant industrial benefits in the space and Earth observation sectors are expected from the RADARSAT Constellation program. It is expected to generate employment growth in the Canadian knowledge-based economy and spur the growth of small and medium-sized businesses as the Canadian infrastructure and services industry continues to grow. As of September 30, 2008, the CSA has funded $13 million worth of work to Canadian industry directly attributable to the RADARSAT Constellation Major Crown Project.

CSA's approach to regional distribution has been developed in consultation with Industry Canada and the Atlantic Opportunities Agency (ACOA). It is based on applying CSA's overall regional distribution targets to the project, and will require bidders to apply these targets on a "best efforts" basis. The prime contract includes a requirement for 70% Canadian content, excluding launch services. Given the past difficulty in achieving the targets in Atlantic Canada, a minimum of 3.5% benefits has been set for that region. The prime contract includes reporting obligations and performance measures as well as financial penalties for not meeting the minimum Atlantic Canada content. CSA will continue to work closely with Industry Canada and ACOA to monitor regional distribution achievements and to support the prime contractor in the delivery of the given targets.

Regional Distribution of RADARSAT-2 Contracts
(As of March 2009)

Program	British Columbia	Prairie Provinces	Ontario	Quebec	Atlantic	Total Canada
RADARSAT Constellation	37.8%	9.8.%	16.9%	33.0%	2.5%	100%

Note: Due to rounding, decimals may not add up to totals shown.

Summary of Non-Recurring Expenditures ($ in millions)
(As of March 2009)

Program	Current Estimated Total Expenditure	Actuals at March 31, 2009	Future Years
RADARSAT Constellation	143.2	23.5	119.7

James Webb Space Telescope

Description

The James Webb Space Telescope (JWST) is a joint mission of NASA, ESA, and the Canadian Space Agency. The mission concept is for a large filled-aperture telescope located 1.5 million km from Earth. Like Hubble, the JWST will be used by the astronomy community to observe targets that range from objects within our Solar System to the most remote galaxies, which are seen during their formation in the early universe. The science mission is centered on the quest to understand our origins, and specifically aimed at:

• Observing the very first generation of stars to illuminate the dark universe when it was less than a billion years old;

• Understanding the physical processes that have controlled the evolution of galaxies over cosmic time, and, in particular, identifying the processes that led to the assembly of galaxies within the first 4 billion years after the Big Bang;

• Understanding the physical processes that control the formation and early evolution of stars in our own and other nearby galaxies; and,

• Studying the formation and early evolution of proto-planetary disks, and characterizing the atmospheres of isolated planetary mass objects.

The JWST is now scheduled for launch in 2014. JWST instruments will be designed to work primarily in the infrared range of the electromagnetic spectrum, with some capability in the visible range. JWST will have a large mirror, 6.5 meters in diameter and a sunshield the size of a tennis court that will both fold up and open once in outer space.

Canada is providing the Fine Guidance Sensor (FGS) and Tuneable Filter Imager (TFI). The FGS is integral to the attitude control system of JWST, and consists of two fully redundant cameras that will report precise pointing information of JWST. Canadian expertise in this area has been established with the successful fine error sensors for the FUSE mission. Packaged with the FGS but functionally independent, the Tuneable Filter Imager is a unique, narrow-band camera with imaging capability. For example, it will allow astronomers to search for extrasolar planets through a technique called coronography, which means that the light from a star will be blocked out so that astronomers can see what is in the star's neighbourhood.

The JWST-FGS Major Crown Project, with COM DEV as prime contractor, consists of the design, development, integration and testing and integration into the spacecraft, launch and commissioning of the Fine Guidance Sensor and Tunable Filter Imager.

By participating in this leading-edge international space exploration mission, the Canadian Space Agency is actively promoting Canadian scientific expertise and innovative, advanced space technologies. The National Research Council's Herzberg Institute of Astrophysics is a key Government of Canada partner for activities related to the development of science instruments and distribution of telescope data.

In return for its overall investment in the JWST, Canada will obtain a minimum of 5% of the time on this unique space telescope. Already, the news of Canada's involvement in this international space exploration mission is inspiring youth, educators and amateur astronomers, and rallying members of Canada's world-renowned astrophysics community.

Leading and Participating Departments and Agencies

Sponsoring Agency:	Canadian Space Agency
Contracting Authority:	Public Works and Government Services Canada for the Canadian Space Agency
Participating Departments:	NRC's Herzberg Institute of Astrophysics Industry Canada with the support of Université de Montréal.

Prime and Major Sub-Contractors

Prime Contractor
COM DEV Canada	Ottawa, Ontario
Major Sub-Contractors
Teledyne Corning Netoptix ABB Bomem MDA CDA ESTL INO IMP LHM Barr	U.S U.S Canada Canada U.S. Europe Canada Canada Canada U.S

Major Milestones

The major milestones, by phase, are the following:

Phase	Major Milestones	Date
A	Requirement Definition	2003-2004
B	Preliminary Design	August 2004 to May 2005
C	Detailed Design	July 2005 to March 2009
D	Manufacturing/Assembly; Integration/Testing; Pre-launch preparations, Launch/System Commissioning	May 2007 to December 2014
E	Operations	2014-2015 to 2019-2020

Note: The Major Crown Project terminates with the completion of Phase D.

Progress Report and Explanation of Variances

In March 2004, Treasury Board gave Preliminary Project Approval for Phases B, C and D at an indicative cost of $67.2 million. In December 2006, before the completion of the detailed design of the FGS, the CSA requested increased expenditure authority to complete the project. Treasury Board granted Effective Project Approval for a substantive total cost estimate of $98.4 million in February 2007 with the condition "that the Canadian Space Agency provide reports to Treasury Board at the completion of Phases C and D of the JWST project which include up-to-date information on the project scope, costs, schedule and risks". At the same time, the project became a Major Crown Project (MCP).

Overall, the Fine Guidance Sensor with the Tunable Filter Instrument contribution is technically very challenging and proved to be more complex than envisioned by the CSA and the prime contractor at the time the substantive estimates were generated. Extremely tight tolerances on the optics combined with the need for reliable and precise mechanisms that must operate in a harsh cryogenic temperature environment required more design and testing effort than was originally envisaged. The full complexities of the FGS became evident during the Phase C, after the first of the two-planned Critical Design Reviews (CDR). The first CDR, held in March 2007, for the guider function of the FGS, did reveal some technical issues, which required additional effort to resolve. This Review took place after the Effective Project Approval (EPA) received in February 2007. After this first CDR, with the focus now turning toward the preparation of the system level CDR, new issues became apparent requiring additional analysis. Testing of the Tunable Filter Imager prototype also revealed technical issues that needed to be addressed. The manufacturing of the FGS will continue in 2009 and will be delivered to NASA in 2010.

During this transition between the completion of the detailed design phase (Phase C) and the initiation of the manufacturing phase (Phase D) the project faced the prospect of a significant cost growth and therefore required the CSA to return to Treasury Board to amend its Effective Project Approval (EPA) for the JWST Major Crown Project. The current estimated total cost for the Definition and Implementation phases is now $136.0 million. On December 2007, Treasury Board granted a revised Effective Project Approval.

Industrial Benefits

As of March 2009, the CSA has funded $98.4 million worth of work to Canadian industry directly attributable to the JWST-FGS Major Crown Project. Direct industrial benefits from the construction of the JWST-FGS and TFI system will benefit central regions of Canada. Although there is no regional distribution requirement for this project, the following table provides an approximate distribution:

Regional Distribution of JWST Contracts
(As of March 2009)

Program	Ontario	Quebec	Atlantic Provinces	Total Canada
JWST-FGS and TFI	86.3%	11.4%	2.3%	100%

Summary of Non-Recurring Expenditures ($ in millions)
(As of March 2009)

Program	Current Estimated Total Expenditure	Actuals at March 31, 2009	Future Years
JWST-FGS and TFI	136.0	98.4	37.6

Citizenship and Immigration Canada

Table 4: Status Report on Major Crown Projects

Global Case Management System

Description

The Global Case Management System (GCMS) project is essential to the modernization of client services at Citizenship and Immigration Canada (CIC). It is an e-Business platform that is integral to making Canada’s citizenship and immigration system more modern, efficient, and flexible to Canada’s labour market needs. A department-wide priority, GCMS will ultimately provide a single, integrated case management application processing capability from first contact with clients to final disposition of their case. The current case processing system is unable to sustain and support new technologies to provide better client service, effectively manage inventories, or improve program integrity.

Project Phases

GCMS was granted preliminary project approval by Treasury Board in 2001. In September 2004, it was deployed to the Citizenship line of business. Since that time, it has supported the effective delivery of legislative changes, such as Adoptions, Lost Canadians, and new Citizenship rules.

As a result of independent reviews, GCMS underwent a project assessment and a revised go–forward plan was developed with a reduced scope. In August 2008, Treasury Board granted approval for GCMS Release 2. Laying the foundation for future business improvements, once GCMS is fully deployed, it will support 100% of citizenship and more than 85% of immigration applications.

Leading and Participating Departments and Agencies

Lead Department	Citizenship and Immigration Canada
Contracting Authority	Canada Border Services Agency
Participating Departments	Public Works and Government Services Canada
Prime Contractor	None (The Department is responsible for system integration.)

Major Milestone	Date
Treasury Board approves funding for the GCMS project at the same time as CIC’s Treasury Board submission on the implementation of policy reforms and the new IRPA.	August 2000
Treasury Board grants Preliminary Project Approval and major Crown project designation to the GCMS.	March 2001
Treasury Board grants Effective Project Approval (EPA) to the GCMS.	January 2002
Request for proposal for the acquisition of a commercial, off-the-shelf software package for case management posted for tender by Public Works and Government Services Canada.	February 2002
Contract for the off-the-shelf software package for case management awarded.	March 2003
Treasury Board grants amended EPA to the GCMS to address the impact of procurement delays.	October 2003
The first GCMS business component (Citizenship) is implemented.	September 2004
Treasury Board grants a second amendment to the EPA to address the impact of cumulative slippage that includes critical new requirements in project scope, and provides for an incremental deployment approach.	September 2005
Completion of a System Under Development audit of the GCMS project.	November 2005
Treasury Board grants a third amendment to the EPA to address a wording anomaly with regard to the GST.	December 2006
Independent review indicates the need to assess project status and review options for completing GCMS objectives.	December 2006
Treasury Board grants a fourth amendment to the EPA to undertake this assessment and to develop a revised go-forward plan.	February 2007
Treasury Board grants a fifth amendment to the EPA, extending the time frame for completion of a substantive go-forward plan to late fiscal 2007–2008.	October 2007
Independent review validates project’s recovery plan and project team’s readiness to deliver.	December 2007
Treasury Board grants a sixth amendment to the EPA with a reduced scope for the second release of GCMS.	August 2008
Deployment of GCMS Release 2 to Citizenship users	May 2010
Deployment of GCMS Release 2 to first international mission	June 2010

Progress Report and Explanation of Variances

• As of March 31, 2009, GCMS Release 2 is within budget and on schedule to deploy to its first international mission in June 2010.
• On July 29, 2008, Treasury Board met to discuss GCMS. Approval was granted through an addendum in August 2008 for an extension of the project authority to March 31, 2011, and an increase of the total authority to $387 million (including GST). Consistent with recommendations from independent reviews conducted between December 2006 and December 2007, the project will be completed with a reduced scope focusing on systems used by operations overseas.
• The GCMS project has faced considerable challenges, adding to the cost and time needed to complete the project, including:
  • an overly ambitious scope with no initial phased delivery;
  • a change of government direction to commercial off-the-shelf software;
  • splitting of immigration with the creation of the Canada Border Services Agency;
  • amendments to Immigration and Refugee Protection Act, representing a major change in the administration of the immigration system; and
  • a need to respond to increased security risks, while respecting privacy.

Fisheries and Oceans Canada

Status Report on Major Crown Projects

Mid-Shore Patrol Vessels (MSPV)

Description

The Mid-Shore Patrol Vessels project will acquire up to 12 Mid-Shore Patrol Vessels (MSPV) for the Canadian Coast Guard (CCG) Fleet — eight for Fisheries Conservation and Protection (C&P) duties and four for Maritime Security duties. This project serves two purposes:

• Fleet Renewal — the acquisition of C&P patrol vessels represents the first step in modernization of the CCG fleet and will ensure the integrity of the fishery monitoring program and will provide the capacity for DFO to support the strategic role in fisheries enforcement; and
• Maritime Security — the acquisition of MSPV for Maritime Security will allow CCG, in conjunction with the RCMP, to respond to the Government's commitment to enhance the security of the nation's coasts and waterways.

Project Phase

The MSPV Project is currently in the Implementation phase.

Leading and Participating Departments and Agencies

Lead Department	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada (IC); RCMP; Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada; Public Safety Canada; Department of National Defence (DND).

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	August 2005
Effective Project Approval (EPA)	June 2006
1st Request for Proposal (RFP) (cancelled)	July 2007
Amended Effective Project Approval — to include 4 additional vessels identified in Budget 2007	December 2007
2nd RFP issued (cancelled)	August 2008
3rd RFP to be issued	Early 2009
Target Contract Award	Fall 2009
First Vessel Delivery	Fall 2011
Last vessel delivery for MSPV	Summer 2014

Progress Report and Explanations of Variances

The contract for design and construction of nine (9) MSPV was awarded in August 2009. The Minister's formal announcement of the contract is scheduled for September 2, 2009. A project kick-off meeting is scheduled at the contractor's facility on September 16, and design review activities are expected to begin thereafter. First vessel delivery is anticipated in 2011.

Industrial Benefits

The RFP requires overall Industrial Benefits equal to 100% of contract value. Regional distribution will be determined at contract award.

 

Offshore Fisheries Science Vessels (OFSV)

Description

The Offshore Fisheries Science Vessels (OFSV) project will acquire three (3) OFSV for the Canadian Coast Guard (CCG) Fleet. The OFSV will replace three (3) aging Coast Guard ships on the East and West Coasts of Canada that provide a platform from which critical scientific research and ecosystem-based management can be performed.

Project Phase

The OFSV Project is currently in the definition and design phase.

Leading and Participating Departments and Agencies

Lead Department	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada (IC); Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada.

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	October 2005
Amended PPA	November 2006
Effective Project Approval (EPA) — Target Date	2009
Contract Award	2009
First Vessel Delivery	2011
Delivery of last OFSV	2014

Progress Report and Explanations of Variances

The project solicitation strategy was reassessed in light of the previous MSPV competitive process experience and is now proceeding through the revised design activities. The competitive process to acquire three (3) OFSV is expected to be underway in 2010-11.

Industrial Benefits

Regional distribution will be determined at contract award.

 

Offshore Oceanographic Science Vessel (OOSV)

Description

The Offshore Oceanographic Science Vessel (OOSV) project will acquire a replacement vessel for the Canadian Coast Guard's largest science vessel - CCGS Hudson. This vessel was built in 1963 and its replacement is critical to fulfilment of the Department's science mandate as well as mandates of other government departments and agencies. The vessel currently operates on the East Coast of Canada.

Project Phase

The OOSV Project is currently in the definition and design phase.

Leading and Participating Departments and Agencies

Lead Department	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada (IC); Environment Canada; NRCan; Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada.

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	July 2008
Effective Project Approval (EPA) and Authority to Contract — Target Date	Spring 2010
Contract Award	Fall 2010
Delivery of Offshore Oceanographic Science Vessel	2012

Progress Report and Explanations of Variances

Preliminary Project Approval was obtained from Treasury Board in July 2008 and modified in June 2009. Project definition activities and procurement strategy are being refined. The competitive process for the acquisition of the OOSV design is targeted for 2009-10 with procurement activities planned to commence in the Fall of 2010.

Industrial Benefits

Regional distribution will be determined at contract award.

Health Canada

Status Report on Major Crown Projects

1. Description:

Health Information and Claims Processing Services (HICPS) Major Crown Project.

HICPS is the key delivery mechanism for the payment of pharmacy, medical supplies and equipment, and dental benefits under Health Canada's Non-Insured Health Benefits (NIHB) Program.

The HICPS Project was established to conduct a competitive procurement to replace the existing HICPS contract, to manage the implementation of the new service contract and ensure a smooth transition from the current incumbent to the new contractor.

2. Project Phase:

Project Implementation: The HICPS Major Crown Project entered the project implementation phase with the December 4, 2007 award of the HICPS contract to ESI Canada.

Overview: HICPS supports the delivery of much-needed health benefits for over 790,000 eligible First Nations and Inuit clients. The HICPS Project Implementation phase will terminate in December 2009 with a project evaluation. The new Health Information and Claims Processing Services will be put into production, taking over service provision on December 1, 2009.

3. Leading and Participating Departments and Agencies

Lead Department: Health Canada

Contracting Authority: Public Works and Government Services Canada

Participating Departments: Indian and Northern Affairs Canada

4. Prime and Major Subcontractor

Prime Contractor: ESI Canada, Mississauga, Ontario, Canada

Major Subcontractors: Resolve Corporation, Toronto, Ontario, Canada

5. Major Milestones

Major Milestones	Date
Initial meetings with Contractor, coordination of implementation phase project plan	Contract Award (December 4, 2007 through January 2008)
Business Requirements Gathering and Design	February 2008 to August 2008
HICPS Development	September 2008 to April 2009
HICPS Testing and Acceptance	May to September 2009
Documentation, Simulations, Validation, Data Conversion and Training	September 2009 to November 2009
HICPS Implementation (ESI Canada officially takes over real-time service provision)	December 1, 2009
Project Close-Out Phase: Evaluation of the HICPS Project and lessons learned.	December 2010 to March 2011

6. Progress Report and Explanations of Variances

The definition phase of the HICPS project (including the RFP process through bid evaluation and ultimately contract award) was concluded on budget and the project implementation phase has been underway as of December 4, 2007. The project is moving effectively towards its objective of ensuring a smooth and seamless transition to an enhanced claims processing system on December 1, 2009.

Currently the project is on budget and on schedule to meet this target. On August 1, 2008 the project achieved its first milestone with the completion of the detailed system requirements and design. The project also completed its second milestone in January 2009, which included development of the new system. As of March 31, 2009 the project was on track to complete the third project milestone related to the hardware and infrastructure requirements for the new system.

The project schedule and budget are consistent with the amount granted by the project authorities.

7. Industrial Benefits

(The Industrial Regional Benefits (IRB) model was modified to focus on benefiting the Aboriginal economic community, rather than a specific industry or region of Canada, resulting in an Aboriginal benefit requirement (ABR) which is unique to the HICPS Project.

The development of the ABR approach for the HICPS Project was informed by industry feedback through two Requests for Information (RFI) consultation processes, and approved by Treasury Board. As HICPS Prime Contractor, ESI Canada will be required.)

National Defence

Status Report on Major Crown Projects

• Airlift Capability Project - Strategic (ACP-S)
• Airlift Capability Project - Tactical (ACP-T)
• Arctic/Offshore Patrol Ship (A/OPS)
• Armoured Personnel Carriers (APC)
• Canadian Cryptographic Modernization Program (CCMP) Omnibus Project
• Canadian Forces Supply System Upgrade (CFSSU)
• Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project
• Canadian Search and Rescue Helicopter (CSH) Project
• Halifax Class Modernization/Frigate Life Extension (HCM/HELEX)
• Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)
• Joint Support Ship (JSS)
• Light Utility Vehicle Wheeled (LUVW)
• Main Battle Tank (MBT)
• 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 (SCLE)

AIRLIFT CAPABILITY PROJECT - STRATEGIC (ACP-S)

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

Project Phase: Implementation. All four aircrafts have been accepted on schedule and Close-Out is expected for summer 2012.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor

The Boeing Company, St-Louis, Missouri, USA

Major Milestones

Major Milestones	Date
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 (IOC)	October 2008
Full Operational Capability (FOC)	Spring 2012
Project Close-out	Summer 2012

Progress Report and Explanations of Variances: All four aircraft have been accepted on schedule and have completed close to 5,000 flying hours. The project office is currently working on the Implementation Phase in support of this acquisition. Due to complexities in transitioning to in-service support, Final Operational Capability (FOC) will be delayed to Spring 2012 when the Trenton infrastructure is completed and the Squadron can sustain all Lines of Tasking and all planned mission types as stated in the Statement of Operational Capability. The project will close-out after FOC.

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. Several IRB announcements have been made and all regions of Canada will benefit from these contracts.

AIRLIFT CAPABILITY PROJECT - TACTICAL (ACP-T)

Description: The objective of the Airlift Capability Project - Tactical is to ensure a continued tactical airlift capability. In combination with the Fixed Wing Search and Rescue project, this project will replace the Canadian Forces' ageing CC 130E/H 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.

Project Phase: Implementation. The ACP-T project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 C-130J-30 aircraft. Aircraft deliveries will commence no later than June 2010, with the final aircraft delivered no later than December 2012.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor

Lockheed Martin Corporation, Marietta, Georgia, USA

Major Milestones

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

Progress Report and Explanations of Variances: Under the agreement of the December 2007 contract award, Lockheed Martin Corporation is required to undertake an open and fair competitive solicitation for the provision of in-service support. The outcome of this Contractor-led solicitation would be one of many deliverables from the contract and will form the basis of a negotiation for amendments to the contract to include in-service support provisions. The in-service support effort will include contractor provided support to: logistics, engineering, maintenance, material, publications, maintenance training, test equipment and electronic information environment.

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

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. Lockheed Martin Corporation 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 the in-service support contract amendment signing.

ARCTIC/OFFSHORE PATROL SHIP (A/OPS)

Description: The Arctic/Offshore Patrol Ship (A/OPS) project 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 A/OPS delivered to the Canadian Forces will be capable of:

• Conducting armed, sea-borne surveillance of Canada's waters, including the Arctic;
• Providing to Government situational awareness of activities and events in these regions; and
• Cooperating with other elements of the Canadian Forces and other Federal Government departments to assert and enforce Canadian sovereignty, when and where necessary.

Project Phase: Definition/Implementation

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval, planned for January 2011.

Major Milestones

Major Milestones	Date
Treasury Board Preliminary Project Approval	May 2007
Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP)	December 2007
DELMS RFP Close	February 2008
DELMS Contract Award	May 2008
Effective Project Approval (SS(EPA))	January 2011
Award of Implementation Contract	August 2010
Delivery of First Ship	Fall 2014
Initial Operating Capability (IOC) of First Ship	March 2015
Project Complete	March 2021

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 $3,231.7M ($BY) including GST, for acquisition. So far, no variances in cost estimates have been identified. A/OPS is expanding on the Definition Phase to produce a design that will be included as part of the RFP, ensuring that it meets the requirements, and can be used by potential bidders.

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 PERSONNEL CARRIERS (APC)

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

Project Phase: Implementation. All vehicles were delivered by October 2007 and construction activities for indoor accommodation are well under way. The project is scheduled for completion in March 2011.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor

General Dynamics Land Systems - Canada, London, ON

Major Milestones

Major Milestones	Date
Treasury Board Approval	December 1995
Contract Award	December 1996
First Vehicle Delivery	July 1998
Exercise of First Option	July 1998
Exercise of Second Option	July 1999
Exercise of Third Option	July 1999
Last Vehicle Delivery	October 2007
Project Completed	March 2011

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

The vehicles 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 performance against these threats. Planning is currently underway to address this issue.

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

Industrial Benefits: This project includes the following overall industrial benefits, and regional and small business achievements:

Content	Benefits
Direct	$852.9M
Indirect	$742.9M
Total	$1,595.8M
Regional And Small Business	Benefits
Atlantic Canada	$151.4M
Québec	$150.6M
Western Canada	$155.0M
Small Business	$210.3M

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM (CCMP)

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:

• Secure Voice / Telephone Re-key Infrastructure
• Secure Voice / Telephone Family
• Classified Security Management Infrastructure (CSMI)
• Combat Identification Family
• Link Encryption Family
• Network Encryption Family
• Secure Radio Family
• Secure Mobile Environment

Project Phase: Implementation for some sub-projects and Definition for others.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Project / Sub-project 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 - Initial Operational Capability	December 2006
Secure Voice/Telephone Re-key Infrastructure - Full Operational Capability	June 2009
Classified Security Management Infrastructure - Phase 1 Completed	2011
Secure Voice/Telephone Replacement - Completed	December 2011
Secure Mobile Environment - Completed	2012
Link Encryption Replacement - Completed	2013
Classified Security Management Infrastructure - Phase 2 Completed	2014
Network Encryption Replacement - Completed	2014
Classified Security Management Infrastructure - Phase 3 Completed	2016
Combat Identification Replacement - Completed	2016
Secure Radio Replacement - Completed	2016
CCMP Omnibus Project - Completed	2016

Progress Report and Explanations of Variances: Fiscal year 2008-09 was the fifth year of this 12-year program. The CCMP is executing within budget.

In March 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.

In November 2006, Treasury Board granted Preliminary Project Approval to the Classified Security Management Infrastructure 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.

In February 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 following completion dates have changed from those recorded in the CCMP Omnibus Project PPA approved in March 2005.

• Secure Voice Re-key Infrastructure close-out was moved to September 2009 in order to incorporate stronger security for re-keying new secure phones. This sub-project achieved Initial Operational Capability on schedule in December 2006, and Full Operational Capability in June 2009. This will be the first sub-project under the CCMP umbrella to reach completion.
• Secure Voice/Telephone Replacement close-out was moved to December 2011 in order to coordinate software upgrades needed by the new secure phones for interoperability and improved information protection.
• Classified Security Management Infrastructure Phase 1 completion was moved from 2008 to 2011. Phase 1 was divided into Phase 1A and 1B to reduce the complexity of managing the project.
• Combat Identification Replacement completion was moved from 2010 to 2016 due to changes in the US program schedule.
• Classified Security Management Infrastructure Phase 2 close-out was moved from 2011 to 2014 due to delays in the US Key Management Infrastructure program.
• Link Encryption Replacement completion will occur ahead of schedule in 2013. The first two milestones have been met and the sub-project is on track to meet the December 2009 milestone. Thirty-five percent of the GC link encryption devices, which encrypt information during transmission between two points, have been replaced.
• Network Encryption Replacement completion was moved from 2011 to 2014 to align with the implementation schedule in DND.
• Secure Mobile Environment is a new crypto family that was added to the CCMP in June 2007. Handheld wireless devices designed to handle classified information are currently being tested and evaluated.

Industrial Benefits: N/A

CANADIAN FORCES SUPPLY SYSTEM UPGRADE (CFSSU)

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

Project Phase: Close-Out. CFSS Deployed has been implemented on 17 ships as well as at two sites for CANSOFCOM.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

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

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. In March 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. This pproject is closed and all Close-out funds and related activities will have ended as of the end of fiscal year 2009-10.

Industrial and Regional Benefits

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

CANADIAN FORCES UTILITY
TACTICAL TRANSPORT HELICOPTER (CFUTTH) PROJECT

Description: The purpose of the Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project is to acquire helicopters in support of national and international tactical aviation roles. The project supports the Land Force, Air Force, 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 fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements to include the tactical lift of troops, logistical lift, reconnaissance and surveillance, direction and control of fire, aero-medical support 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.

Project Phase: Implementation. 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 November 2009.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Major 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	November 2009

Progress Report and Explanation 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 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.

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

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

CANADIAN SEARCH AND RESCUE HELICOPTER (CSH) PROJECT

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

Project Phase: Completed. As of July 2003, all 15 Cormorant helicopters have been delivered. Spare parts and infrastructure are in place to support operations. Initial training is complete. Effective Project Closure was achieved in September 2004, but some work is still ongoing and full completion is not expected before 2013.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor	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

Major Milestones

Major Milestone	Date
Treasury Board Effective Project Approval	April 1998
Contract Award	April 1998
First Aircraft Delivery (at plant in Italy)	September 2001
Final Aircraft Delivery (at plant in Italy)	July 2003
Project Completion (Effective Project Completion)	September 2004
Expected Project Closure	2013

Progress Report and Explanation of Variances: 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.

The Cormorant has 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 in September 2004, some work is still ongoing and full completion is not expected before 2013. The milestones still outstanding are tied to a three year Technical Publication Revision Service which is not expected to begin until fiscal year 2012-2013, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least two years to address.

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
Québec	$317.7M
Ontario	$146.5M
Western Canada	$86.2M
Unallocated	$36.3M
Total	$629.8M

HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION (HCM/FELEX)

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

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 (CSI) contract to develop, procure and install the majority of the 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
Contracting Authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

In-Service Support Contractor (Class Design Agent)	Fleetway Incorporated, Halifax, NS, Canada
Internal Communications System	DRS Flight Safety, Kanata, ON, Canada
Multi-Ship Contract (East)	Halifax Shipyard, Halifax, NS, Canada
Multi-Ship Contract (West)	Victoria Shipyard, Victoria, BC, Canada
Combat System Integration Contract	Lockheed Martin Canada, Montréal, QC, Canada
Harpoon/AHWCS	Boeing

Major Milestones

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

Progress Report and Explanation of Variances: In September 2008, Treasury Board granted Effective Project Approval and Expenditure Authority for the project. The total full-up project value, including GST, is $2,998M (BY).

Three qualified contractors were selected to receive Request For Proposals through a Solicitation of Interest Qualification process. During the RFP process, two of the potential bidders withdrew from the competition. The sole bid, from Lockheed Martin Canada (LMC), was compliant with all mandatory requirements and a risk assessment of its proposal indicated no unacceptable risks. The CSI contract was awarded to LMC in November 2008.

The HCM/FELEX Project is presently in its implementation phase and 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. Contracts were awarded to the two shipyards in March 2008.

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

INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION
AND RECONNAISSANCE (ISTAR)

Description: 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. 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.

Project Phase: Implementation. Delays have been experienced in formally advancing the sub-projects to the Implementation Phase due to the impact of numerous Urgent Operational Requirements for Afghanistan that are related to and implemented by the LF ISTAR Project Management Office. In support of Urgent Operational Requirements for OPERATION ATHENA in the 2003/2004 timeframe, the project delivered equipment in the areas of Command and Control, Tactical Unmanned Aerial Vehicles, 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 Urgent Operational Requirements for OPERATION ARCHER. As well, urgently required systems in particular the HALO 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 CF Counter IED Task Force and confirmed in the recommendation of The Independent Panel on Canada's Future Role in Afghanistan, the LF ISTAR Project Management Office delivered additional Small Unmanned Aerial Vehicle capability through a contracted service in 2008. In early 2008 the Electronic Warfare sub-project and the Command and Control sub-project were approved for implementation.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor for the UAV UOR Op ATHENA sub-project	Oerlikon Contraves Inc., Saint-Jean, QC
Major Sub-Contractor for the UAV UOR Op ATHENA sub-project	SAGEM SA, France
Prime Contractor for Beyond Line of Sight Satellite (BLOS) UOR Op ARCHER	ND Satcom, Germany
Prime Contractors for Mobile Electronic Warfare Team (MEWT) UOR Op ARCHER	Agilent Technologies, Ottawa, ON Digital 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
Small UAV Service Contract	In Situ, Bingen, Washington USA

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval	April 2003
MND Approval TUAV Unforecasted Operational Requirements (UOR)	May 2003
Treasury Board Project Approval in Arrears UAV UOR Full Operational Capability Close-out	May 2005 December 2005 June 2009
Communications & Data Link Component Treasury Board Effective Project Approval Initial Operational Capability	December 2006 October 2009
Command and Control (C2) Treasury Board Effective Project Approval Initial Operational Capability	February 2008 October 2009
EW Sensors Treasury Board Effective Project Approval Phase 1 Amendment 1 (AL 1) Initial Operational Capability Full Operational Capability	November 2005 February 2008 March 2008 January 2013
In Service Sensors Enhancement Treasury Board Effective Project Approval	March 2010
Medium Range Radar Treasury Board Effective Project Approval	June 2010
WLS Acoustic Sensor Initial Operation Capability (IOC) Full Operational Capability	November 2005 March 2008 November 2009
Family of Mini UAV Treasury Board Effective Project Approval (UOR) Family of Mini UAV Treasury Board Effective Project Approval AL 1	November 2005 September 2010
Light Weight Counter Mortar Radar Effective Project Approval Initial Operation Capability (IOC) Full Operational Capability (FOC)	March 2007 March 2008, July 2010
Deliveries Complete all ISTAR sub-projects	September 2013
Project Completion	March 2014

Progress Report and Explanations of Variances: Prosecuting the Urgent Operational Requirements continues to challenge the omnibus project delivery; however, current estimates are that the project will be complete in 2013 as per the schedule contained in the LF ISTAR Omnibus revised Preliminary Project Approval submission approved by Treasury Board in December 2006. National Procurement funding requirements are being identified in the Effective Project Approval documentation for each of the ten sub-projects. Effective Project Approvals have been received for all but three of the LF ISTAR sub-projects.

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:

• UAV UOR Op ATHENA
• BLOS Op ARCHER
• MEWT Op ARCHER
• Mini UAV UOR Op ARCHER
• AWLS Op ARCHER
• LCMR Op ATHENA
• Remote Viewing Terminal Op ATHENA

In addition the Data Link Communications project received TB approval in December 2006 and PWGSC received TB contract approval for radios in February 2007. The FMS cases for 1,300 radios have been accepted, initial delivery of equipment started in August 2008 and final delivery is expected June 2009. In February 2008, TB approved the ISTAR Electronic Warfare and Command and Control sub-projects. Implementation has now started. For the Command and Control sub-project action is being taken to effect an early delivery of an All Source Intelligence Center for support to the Vancouver Olympic and Paralympics Games; and of the G8 Summit.

The TUAV project was closed in June 2009 and the AWLS sub-project is scheduled to close in Nov 2009.

The LCMR FOC is tied to a US Army upgrade program. These activities are delayed due to US delays in contracting for the final retrofit of all US, UK and Canadian LCMR to fully meet the specification. There is no technical risk as the final implementation is already used for new system delivery to the US it is purely contracting process delay on the US side. The retrofit is required as we all took delivery of a late LRIP model to meet UOR schedule knowing we would have a retrofit program to meet FOC. This retrofit was planned to reduce fleet maintenance cost by having a single fleet to R&O instead of the current 4 fleets.

Industrial Benefits: Canadian industry benefit from the ISTAR project continues to be determined during the approval of the procurement strategy for each sub-projects. Canadian Industry has derived long term benefit from many aspects of the ISTAR project.

JOINT SUPPORT SHIP (JSS)

Description: The JSS 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. It will also enhance Canada's capability for joint command and control of forces ashore. The ships will replace the two ageing Protecteur class support ships currently in service on the east and west coast.

Project Phase: Definition/Implementation

Leading and Participating Departments and Agencies

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

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

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval - (PPA)	November 2004
Invitation for Bids Posted on MERX	June 2006
Project Definition - Contract Award	December 2006
Preliminary Options Analysis	Ongoing

Progress Report and Explanations of Variances: In August 2008, the Minister of Public Works and Government Services Canada (PWGSC) announced the termination of the initial procurement process to acquire three Joint Support Ships.

After receiving and evaluating the mandatory requirements for the Joint Support Ship Project from the bidders, the Crown has determined that both proposals were not compliant with the basic terms of the Request for Proposals (RFP). Among other non-compliances, both bids were significantly over the established budget provisions of $1,575B for the Project Implementation (PI) Contract for the delivery of the JSS capability (3 ships).

During the August 08 to March 09 timeframe, the Project Office conducted Options Analysis that examined cost versus capability of various options. Work continues on a recommended course of action for the JSS project with the aim of achieving a departmental decision as soon as possible.

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

LIGHT UTILITY VEHICLE WHEELED (LUVW)

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

Project Phase: Implementation

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone (Phase 1) SMP	Date
Award of Contract	October 2003
First Full Production Delivery	February 2004
Final Production Delivery	November 2006
Effective Project Completion	November 2009

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 2009

Progress Report and Explanation of Variances: The project is in full Implementation. Outstanding issues are Amendment 2 to the SMP production contract and delivery of the Mil COTS battery disconnect switch kits. The amendment to the SMP production contract is required to reflect the costs resulting from Design Change Requests (DCRs), as well as additional ILS publication requirements. A contract valued at $1.71M (incl GST) was awarded to Kerr Industries in July 2008 for the delivery of 1,061 battery disconnect switch kits. These kits are required to isolate the electrical system and associated parasitic loads from draining the batteries when the vehicles are not in use. Final delivery is scheduled for March 2009, but it is anticipated that Canadian Forces (CF) Reserve units will not have the last of these kits installed by their local GMC dealership until December 2009.

For the SMP production contract, a total of $19.6M has been applied as holdbacks, which equate to 10% of all paid invoices. It is anticipated that the amendment will be completed and signed by October 2009, at which time these funds can be released.

An Initial Support Contract (ISC) (valued at $17.9M incl GST) was awarded to MBC in November 2005 to provide spares, R&O, lease of diagnostic equipment, support and engineering services, and 4th line vehicle repair, with the last (3rd) year option exercised in October 2007. This contract was amended (value increased by $0.77M) and extended to June 2009 at which time a new "bridging" ISC contract was awarded to MBC in June 2009 (valued at $9.3M incl GST) to allow continued support of the LUVW SMP fleet until the Long Term Support Contract (LTSC) (estimated value of $99M incl GST over 15 years) can be awarded.

A contract valued at $1.87M (incl GST) for Special Tools and Test Equipment (STTE) was awarded to MBC in November 2008. Delivery for STTE will commence in July 2009 to both depots with delivery to the base maintenance facilities completed by September 2009 at which time FOC will be declared. Once FOC has been declared, the project will begin the close-out process with project closure scheduled for December 2009 to coincide with the final installation of the Mil COTS battery disconnect switch kits.

Even with the above mentioned changes, the project is scheduled to close under the allocated funding of $298.4M. The vehicle fleet has been affected by body cracks and inferior weapons station design and quality issues. On the subject of vehicle body cracks, an agreement was arrived at to address vehicles with body cracks and those potentially at risk of developing future cracks. MBC has initiated a redesign of the weapons station to address these deficiencies, with the first two prototypes completed in January 2009.

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 (MBT)

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 divided into two phases. Phase 1 consisted 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 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.

Project Phase: Implementation. The project received Treasury Board (TB) approval for Phase 1 in March 2007 and expects to receive Effective Project Approval (EPA) for Phase 2 by June 2009. Project constraints include a budget cap of $650M and the requirement for work to be done in Canada.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor for ARV upgrades Phase 1	Rheinmetall Landsysteme (RLS), Germany
Prime Contractor for MBT upgrades Phase 1	Krauss-Maffei Wegmann (KMW), Germany
Prime Contractor for loaned tanks	German Government
Prime Contractor for tank purchase	Netherlands Government
Logistic Support Arrangement	German Government
Contracts to support operations	Various
Phase 2 Contracts for: 20 operational tanks (repair, overhaul and upgrades) 42 Training tanks (repair, overhaul and limited upgrades) 8 ARVs (conversion and upgrades) ILS (parts, ammunition, training and simulation, tools and test equipment, publications)	Krauss-Maffei Wegmann (KMW), Germany (other contracts estimated for late 2009 or early 2010)

Major Milestone	Date
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 Operational Capability - (Phase 1)	August 2007
Phase 1 - Acquisition of tanks from Dutch Government	December 2007
Letter of Interest	April 2008
PPA Amendment approved by TB	June 2008
Price and Availability	May 2009
Treasury Board - Effective Project Approval (EPA)	June 2009
Phase 2 - Contract to KMW for urgent requirement 20 x Leopard 2 A4 (Ops) tanks	June 2009
Full Operational Capability - (Phase 2)	December 2012
Project Closed-Out	December 2014

Progress Report and Explanations of Variances: The imperative to upgrade and deploy the borrowed tanks into Afghanistan to meet the July 2007 Initial Operational Capability (IOC) date required some performance trade-offs. Time was insufficient to develop, qualify, and implement a new passive armour solution and as a result, the 20 borrowed tanks deployed with new slat armour. Time was also insufficient to install air conditioning therefore a crew cooling vest solution was developed and implemented. Some Leopard 1 C2 tanks for use with implements remain in theatre as the Leopard 2 tanks are not designed to accept implements.

The work in support of the Effective Project Approval submission was a priority activity and TB approval for Phase 2 was received in June 2009. The feasibility study with Industry was cancelled by PWGSC, and a reduced technical study was completed by DND using in-house resources and liaison with Allied nations. The Leopard 2 tank capabilities and the Canadian performance requirements have been identified. The Letter of Interest announced the broad objectives of the Project and the Industry responses confirmed a competitive environment. The Price and Availability identified the core deliverables and obtained price and schedule information from Industry. The Effective Project Approval submission to Treasury Board included some indicative costs due to the nature of repair and overhaul activity.

Industrial and Regional Benefits (IRB): No IRBs were required for Phase 1. The IRB requirements for Phase 2 are 100 %, as recommended by Industry Canada.

MARITIME HELICOPTER PROJECT (MHP)

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

Project Phase: Implementation. In November 2008, the project marked the four-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.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	June 2003
Invitations for Bids Posted on MERX	December 2003
Synopsis Sheet (Effective Project Approval) SS (EPA)	November 2004
Contract Award	November 2004
First Delivery	November 2010
Final Delivery	2013
Project Close-out	2014

Progress Report and Explanations of Variances: In December 2008, following discussions to minimize delays in the planned delivery of the integrated Maritime Helicopter, the Government and Sikorsky agreed to a new schedule for the delivery of helicopters starting in November 2010, with delivery of enhanced helicopters commencing in July 2012.

Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on HMCS Montréal have progressed well and are on schedule. The first test flight of the Maritime Helicopter occurred on November 15, 2008. The project is currently running within its authorized budget.

Industrial Benefits: The Industrial Regional Benefits are 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
Québec	$555.8M	$399.2M
Northern Ontario	$3.2M	$7.6M
Ontario (excluding Northern Ontario)	$924.3M	$1,073.2M
Western Canada	$210.6M	$181.4M
Unallocated	$10.0M	$105.7M
Total	$1,943.0M	$2,593.0M

MATERIAL ACQUISITION AND SUPPORT INFORMATION SYSTEM (MASIS)

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

Project Phase: Implementation. To date the project has completed Phases 1 to 4 and implementation of Phase 5 is currently underway. Project completion is expected for 2012.

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Definition Phase
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
Implementation Phase
Expenditure Authority (EPA) for Phases 2 and 3: Implementation of Complex Contracts; Implementation of the MASIS solution to the Navy; Operations Support & Maintenance for MASIS; Planning and scoping for requirements scheduled to be implemented for the Army.	June 2000
Amended Expenditure Authority (EPA) for Phase 4: Investigation of opportunities to progress the implementation of MASIS to the maximum extent possible within the future available Phase 5 funding; Management of Operations Support & Maintenance for MASIS (outside MASIS project Expenditure Authority); Project was deemed as a Major Crown Project with this approval.	December 2003
Amended Expenditure Authority (EPA) for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army.	June 2007
Project Close-out	2012

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

The project follows a cyclical approval and delivery methodology. In December 2003, an additional $34.4M was approved to fund Phase 4 of the project, which has been completed. In June 2007, the MASIS project received Treasury Board approval in the amount of $170M for Phase 5. Phase 5 activities include the rollout of MASIS functionality to Army and Air Force. To date, Phase 5 activities are on budget and on time. Planned completion of project is within the 2012 timeframe.

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

MEDIUM TO HEAVY LIFT HELICOPTER (MHLH)

Description: Over the last decade, the ability to move personnel and equipment by air has become a vital and growing capability requirement for the Canadian Forces in fulfilling a wide range of roles. Canadian Forces operational experience, particularly in current operational theatres, has highlighted the urgent need for medium to heavy lift helicopters to support land 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 beyond 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 to 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.

Project Phase: Definition

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor

The Boeing Company, Philadelphia, Pennsylvania, USA

Major Milestones

Major Milestone	Date
Synopsis Sheet Preliminary Project Approval (PPA)	June 2006
Advanced Contract Award Notice Posted on MERX	July 2006
Effective Project Approval and Contract Award	June 2009
First ACAN Compliant Aircraft	June 2012
First MHLH	June 2013
Initial Operational Capability (IOC)	June 2014
Full Operational Capability (FOC)	June 2015
Project Close-out	June 2016

Progress Report and Explanation of Variances: With technical support from the Project Management Office, PWGSC commenced negotiations based on Boeing's proposal that was delivered in July 2008. Challenges in areas such as scope of work/cost reconciliation, Terms and Conditions, Industrial and Regional Benefits and In-Service Support competition plan have extended contract negotiations. Best efforts will be undertaken to obtain Treasury Board Approval to achieve contract award in June 2009.

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. The Boeing Company is required to identify, as specific work packages, 60% of the total acquisition commitment prior to contract signing. For the integrated in-service support portion, 75% of the contract value will be direct work performed by a Canadian company. These industrial and regional benefits requirements will be negotiated and accepted by Industry Canada prior to contract signing.

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT (MSVS)

Description: The Medium Support Vehicle System Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. The MSVS project will cost approximately $1.2 B (net of GST) and 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 military pattern trailers, with options for an additional 240.
• medium-sized Militarized Commercial Off-the-Shelf (MilCOTS) vehicles:
  • 1,300 commercial vehicles with militarized components, with options for an additional 500.
• Special Equipment Vehicle (SEV) Kits:
  • Up to 1,000 special equipment vehicle kits, with options for an additional 150.

Project Phase: Definition SMP and SEV Kits, Implementation MilCOTS

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors: One prime contractor will be selected for each project component. Final selection of the prime contractors will occur through Revised Preliminary Project Approvals (Rev (PPAs)) for MilCOTS Vehicles, SEV Baseline Shelters and SMP Vehicles followed by Effective Project Approval (EPA) for SEV Kits.

Prime Contractor - MILCOTS

Navistar Defence LLC, Warrenville, Illinois, USA

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	June 2006
Invitation for Bids Posted on MERX - MilCOTS Vehicles	November 2007
Invitation for Bids Posted on MERX - SMP Vehicles	Fall 2009
Invitation for Bids Posted on MERX - SEV Baseline Shelters	May 2008
Invitation for Bids Posted on MERX - SEV Kits	Early 2010
Rev PPA for MilCOTS Vehicles	December 2008
Rev PPA for SMP Vehicles	Fall 2010
Rev PPA for SEV Baseline Shelters	Spring 2009
EPA for SEV Kits	Early 2011
Contract Award - MilCOTS Vehicles	January 2009
Contract Award - SMP Vehicles	Fall 2010
Contract Award - SEV Baseline Shelters	Summer 2009
Contract Award - SEV Kits	Early 2011
First Delivery - MilCOTS Vehicles	Spring 2009
First Delivery - SMP Vehicles	Fall 2011
First Delivery - SEV Baseline Shelters	Early 2011
First Delivery - SEV Kits	Spring 2011
Delivery Complete - MilCOTS Vehicles	Fall 2010
Delivery Complete - SMP Vehicles	Summer 2013
Delivery Complete - SEV Baseline Shelters	Fall 2012
Delivery Complete - SEV Kits	Fall 2012
Project Close Out	Fall 2013

Progress Report and Explanations of Variances: In December 2008, PMO MSVS obtained Treasury Board expenditure authority for MilCOTS in the amount of $351.8M ($BY), plus GST and a Rev PPA for an indicative full-up cost estimate of $1.22B ($BY), plus GST for all components of the MSVS project.

• MilCOTS - Agreement in Principle was reached in August 2008 with the single responsive bidder. Rev PPA and contract approval was received in December 2008. Contract was awarded in January 2009.
• SEV Baseline Shelter - The SEV Baseline Shelter RFP was released to industry in May 2008 and the bid evaluation was completed in July 2008. Negotiations with the single responsive bidder are planned for completion in early 2009. Rev PPA planned for spring 2009 and contract award for this component is planned for Summer 2009.
• SMP - A revised draft technical specification was posted in November 2008 for industry comment. The complete RFP is planned for release in fall 2009.
• SEV Kits - The SEV Kits RFP is scheduled for release in early 2010.

Schedule delays have occurred and are attributed to delayed project approval and overall staffing shortages. Cost variances have also occurred and are attributed to the receipt of single bids for MilCOTS vehicles and SEV Baseline Shelters with higher than anticipated price proposals, volatile raw material market and fluctuation in foreign exchange rates.

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

Industrial & Regional Benefits: Industrial Regional Benefits (IRBs) equivalent to 100% of the contract value will be required for each project component.

MILITARY AUTOMATED AIR TRAFFIC SYSTEM (MAATS) PROJECT

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

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

Project Phase: Implementation

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

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

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 in June 2006, the MAATS project objectives were declared unachievable within the existing funding envelope. Given a number of alternative options, the 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 in March 2007. MAATS' PMO was directed to de-link the project from NAV Canada'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 year 2009-10.

PMO implemented the last site (Goose Bay) in May 2009 with NAMS II, Frequentis integration voice comms switch and Control Tower Consoles Revitalization. All sites are now synchronized with same technology and interfaces. The Vancouver 2010 Olympics shifted ATESS personnel priorities which has delayed the delivery of some REDDS capabilities development. Currently, Flight Data Entry Terminal (FDET II) which will address flight data processing is the last capability being developed under the project scope with its fielding to occur as a matrix task completed by the LCMM. PMO plans to close the MAATS Project on schedule with the full LCMM in-service support of REDDS in 2009 as its remaining objective.

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

Region	Cash Benefits
Atlantic Canada	1.6M
Québec	1.0M
Ontario	1.8M
Western Canada	45.8M
Unallocated	To be determined
Total	$50.2M

PROTECTED MILITARY SATELLITE COMMUNICATIONS (PMSC)

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

Project Phase: Implementation. The PMSC project is being implemented in two phases with project completion expected for Winter 2017.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval	August 1999
Effective Project Approval	November 2003
Initial Terminal Delivery	Summer 2011
Initial Satellite Delivery	Summer 2012
Terminal Delivery Completed	Summer 2013
Project Complete	Winter 2017

Progress Report and Explanations of Variances: The PMSC project is being implemented in two phases. In Phase 1, the satellites are being procured under the terms of a Memorandum of Understanding (MOU) with the United States Department of Defense (DOD) that guarantees 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 is being procured and will be installed and tested starting in 2011.

In August 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 in November 1999.

In November 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. The project is on budget.

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 (SCLE)

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 twelve of seventeen associated projects have been completed. The last platform (HMCS CHICOUTIMI) will complete Canadianization during her Extended Docking Work Period (EDWP) which is scheduled to commence in January 2010 and the remaining five associated projects will be completed by project closure in March 2013.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Treasury Board Approval	June 1998
Main Contract Award	July 1998
Initial Support Contract Award	July 1998
Initial Operational Capability	April 2006
Full Operational Capability	December 2010
Project Close-out	March 2013

Progress Report and Explanation of Variances: Effective Project approval was granted to the SCLE project in June 1998 at an estimated total cost of $812.0M (BY) net of GST. The expenditure ceiling was increased by $84.8M by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. SCLE project is currently expending to 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 Ship (HMCS) Victoria is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Breton. She is scheduled to undock in November 2009 and complete this activity in May 2010.
• HMCS Windsor is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Scott. She is scheduled to undock in late 2010 and complete this activity in 2011.
• HMCS Corner Brook is operational and is participating in various exercises and patrols. Barring a six-month docking period commencing September 2009, she will remain operational until mid 2011.
• HMCS Chicoutimi was handed over to Canada in October 2004 and while en-route to Canada, she 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 is scheduled to commence January 2010.

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 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.

Public Works and Government Services Canada

Table 4 – Status Report on Major Crown Projects

Long-Term Vision and Plan for the Parliamentary Precinct

1. Description

PWGSC is the custodian of the buildings and grounds within the Parliamentary Precinct. Part of this important mandate is to maintain the historical and architectural integrity of these assets.

A Long Term Vision and Plan (LTVP) for the Parliamentary Precinct was developed to help guide the fulfillment of this mandate. It was originally approved in 2001. In May 2005, Cabinet instructed the Minister of PWGSC to return with options to revise the LTVP and its associated costs.

A revised LTVP was presented and approved by Cabinet in June 2007. This update which was undertaken in conjunction with the Parliamentary Partners - the Senate, the House of Commons and the Library of Parliament, established a comprehensive approach for rehabilitating the heritage buildings, providing additional parliamentary accommodations and creating a secure and welcoming environment for parliamentarians, staff, visitors and tourists.

One of the key features of the 2007 LTVP is a new Implementation Strategy. This strategy is composed of a broad strategic direction and a series of cyclical five-year programs. These cycles provide greater flexibility in planning and implementation based on changing government and parliamentary priorities, building conditions, etc. This flexibility allows for more accurate costing and more realistic project timelines.

Each five-year program is composed of three components:

1. The Major Capital Program of the first five-year program of work will focus on advancing the critical West Block Program. The West Block Program includes:
   1. Securing space in order to be able to empty the La Promenade and Wellington buildings. This required the fit-up of almost a million square feet of space in seven buildings in the downtown core (C.D. Howe, Clarica, Confederation, 119 Queen Street, 131 Queen Street, 155 Queen Street, and 181 Queen Street) and the relocation of over 1300 parliamentary staff and over a dozen major parliamentary support functions;
   2. Restoration and fit-up of the La Promenade building, Wellington building, former Bank of Montreal building and the construction of a new food production facility for Parliament Hill. These projects must be completed before the major rehabilitation of the West Block can begin;
   3. Stabilization and preparation of the West Block Building for the major renovation, including exterior stabilization of the building's masonry and towers; and
   4. The West Block's major rehabilitation and transformation to support the Chamber functions of the House of Commons (infill).
2. The Recapitalization Program includes a series of urgent building interventions (related mostly to exterior masonry repairs) required to ensure the ongoing viability of buildings and address health and safety issues. These projects are a part of the full restoration work that will ultimately be done on these buildings and by undertaking them early will ensure that future projects are less complicated and costly. The major focus of this Program for the first five years includes:
   1. Centre Block rehabilitation of portions of the roof and ventilation towers;
   2. East Block exterior envelope repair of the 1867 wing with an initial focus on the north-west tower and the south-east corner;
   3. Confederation Building repairs to the entire building envelope, including masonry, windows and roof;
   4. Emergency work required - for example, the West Block water main; and
   5. Ground work such as the North perimeter wall and slope stabilization.
3. The Planning Program focuses on the development of more refined plans and reliable cost estimates for projects in the next five-year Program. This includes:
   1. East Block renovation and Infill Feasibility Study;
   2. Security and Visitor Services Facility - Feasibility Study;
   3. West Sector Master Plan; and
   4. Centre Block Renovations.

An important element in the LTVP is the strong reporting framework that enables the Parliamentary Partners and PWGSC to set both long-term direction and achieve immediate priorities. The revised LTVP has strong oversight and accountability measures that will ensure more effective management of the costing, planning and scheduling of the LTVP through new government approvals every five years. In addition to the annual Departmental Performance Report, the Parliamentary Precinct provides regular quarterly report cards to the Minister and the Parliamentary Precinct Oversight Advisory Committee. An annual report on progress of the LTVP program to the Treasury Board Secretariat is also provided.

2. Project Phase

Ongoing

3. Leading and Participating Departments and Agencies

Lead Department	PWGSC
Contracting Authority	PWGSC
Participating Departments	Senate of Canada, House of Commons, Library of Parliament
Consultations and Approvals with	The National Capital Commission (NCC) and Federal Heritage Buildings Review Office (FHBRO)

4. Prime Contractors and Major Sub-Contractors

Prime Contractor	See separate notes for each of the following projects: West Block Renovation Program and Wellington Building Renovation Project.
Major Subcontractor(s)

5. Major Milestones

Milestone	RPP 2007-2008	DPR 2007-2008
Memorandum to Cabinet - Update on the LTVP for the Parliamentary Precinct	Not included	Completed - July 2002
Memorandum to Cabinet - LTVP for the Parliamentary Precinct - Update	Not included	Completed - May 2005
Memorandum to Cabinet - The Long Term Vision and Plan for the Parliamentary Precinct - Update 2007	Not included	Completed - June 2007

6. Progress Report and Explanations of Variances

Progress against each of the three programs in fiscal year 2007-2008 to-date is highlighted below:

1. The Major Capital Program continues to focus on advancing the critical West Block Program. This includes vacating and fit-up of key buildings to enable vacating West Block so it can be renovated.
   • 119 and 131 Queen Street - completed fit-up of these buildings in order to relocate functions displaced from the La Promenade and Wellington buildings. The La Promenade and Wellington buildings will be used as interim Parliamentary Offices and Committee rooms during the renovation of West Block and then Centre Block.
   • Wellington Building - awarded the prime consultant contract and advanced the concept design for this major rehabilitation and fit-up project. Also advanced a suite of 15 re-location projects to completely empty and de-commission the Wellington Building so that asbestos abatement, demolition and seismic reinforcement work can begin;
   • La Promenade Building - successfully completed the building demolition portion of the project, and started the fit up portion in Fall 2008. This project is on schedule for completion in Summer 2010.
   • Food Production Facility - construction commenced in Summer 2008 and is four to six months ahead of schedule and targeted for completion in Fall 2009;
   • Former Bank of Montreal Building - concept design nearing completion;
   • 1 Rideau Canal - awarded prime consultant contract. Construction will begin in Fall 2009 and is targeted for completion in Fall 2010;
   • West Block Rehabilitation - final design will be completed in Summer 2009. The project will then move into the development of construction drawings so that construction contracts can be tendered and awarded in 2010 when the building is completely emptied.
   • Southeast Tower Restoration project - successfully completed, under original budget, in Fall 2008. Valuable information gained from this pilot project is being incorporated into current and future Parliament building projects, e.g., seismic, masonry, asbestos abatement and roofing;
   • North Towers Restoration project - construction started in Fall 2008
   • West Block Investigations Program is ongoing - This is a proactive measure to understand the current condition of the building to ensure immediate Health and Safety measures are addressed.
2. The Recapitalization Program continues to focus on a series of urgent building interventions (related mostly to exterior masonry repairs) required to ensure the ongoing viability of buildings and address health and safety issues. Work has been initiated and includes:
   • Centre Block - project definition and determining scope of work for rooftop elements and towers;
   • East Block - project definition and determining scope of work to rehabilitate building exterior masonry;
   • Confederation building - project definition and determining scope of work to rehabilitate building exterior masonry and interior building systems;
   • Emergency work - West Block water main emergency repair completed; and
   • Grounds - continue work on the North Perimeter wall and North Slope Stabilization.
3. The Planning Program continues to focus on the development of more refined plans and reliable cost estimates for projects in the next Five-year Program. Work has been initiated and includes:
   • East Block - initiation of Renovation and Infill Feasibility Study;
   • Security & Visitor Services Facility - initiation of a Feasibility Study for Visitor Services and Screening;
   • West Sector Master Plan - to commence to initiate a West Sector Area Master Plan;
   • Immediate Security Measures - initiate studies for immediate security measures; and
   • Canadian Museum of Contemporary Photography - initiation of a Feasibility Study for Committee Room use.

See separate notes for additional information on the following initiatives: West Block Renovation Program and Wellington Building Renovation Project.

7. Industrial Benefits

See separate notes for each of the following initiatives: West Block Renovation Program and Wellington Building Renovation Project.

8. Summary of Non-recurring Expenditures

See separate notes for each of the following initiatives: West Block Renovation Program and Wellington Building Renovation Project.

West Block Renovation Program

1. Description

The West Block, located within the Parliamentary Precinct, is the oldest of the parliamentary buildings located on the "Hill". The three-storey building was built in three phases starting in 1859 and was completed in 1906. The West Block provides accommodation for Members of Parliament (MPs) and for parliamentary functions and support services.

Renovations of the building are required for health and safety and asset integrity reasons. In order to implement the renovations, the building has to be completely vacated, thus requiring the provision of alternate accommodations for the MPs, parliamentary functions and support services. Consequently, the program of work will be undertaken in two phases.

Phase 1 involves:

• Emergency stabilization of towers;
• Repairs and conservation of the exterior masonry;
• Fit-up of alternate accommodations in the Clarica, C.D. Howe, La Promenade, and Wellington buildings for MP offices, support services and committee rooms; and
• The permanent relocation of the food production facility for Parliament Hill to a remote site.

Phase 2 involves:

• Fit-up of space in the former Bank of Montreal building to relocate Confederation room (Ceremonial Room 200);
• Asbestos abatement, interior demolition, and general rehabilitation of the West Block building; and
• Associated infrastructure to support legislative functions during the renovation of the Centre Block, including a courtyard infill to accommodate chamber activities and construction of a security screening facility.

The most recent Preliminary Project Approval (June 2005) in current dollars is $769.2 million (GST excluded) / $821.5 million (GST included). This approval includes most swing space projects, however, it does not include the funding for the Wellington Building.

The current schedule calls for MPs and support staff to vacate the West Block in 2010-2011 (Phase 1), with rehabilitation work (Phase 2) to start shortly thereafter.

2. Project Phase

West Block Building: Project Definition (Design); and
Interim Locations: Project Definition (Design), Project Implementation through Project Close-out.

3. Leading and Participating Departments and Agencies

Lead Department	PWGSC
Contracting Authority	PWGSC
Participating Departments	Senate of Canada, House of Commons, Library of Parliament
Consultations and Approvals with	The National Capital Commission (NCC) and Federal Heritage Buildings Review Office (FHBRO)

4. Prime Contractors and Major Sub-Contractors

Prime Contractor	For the West Block building is a joint venture - ARCOP/FGM, architects - Montreal, Quebec For the La Promenade Renovation project is KWC Architects Inc., Ottawa, Ontario For the old Bank of Montreal building is NORR Architects, Ottawa, Ontario
General Contractor(s)	For the La Promenade building is Pomerleau - General Contracting and Construction Management, Saint-Georges, Quebec For the North Tower Restoration project is L'Unique Assurances Générales/ASYS Realisation, Montreal, Quebec

5. Major Milestones

Milestone	RPP 2008-2009	DPR 2008-2009
Revised Preliminary Project Approval (PPA)	Completed - June 2005	Completed - June 2005
Partial Effective Project Approval (Phase 1)	Completed - June 2005	Completed - June 2005
$17.2 million Spending Authority Approved	Approved - December 2006	Approved - December 2006
Full Effective Project Approval (Phase 1)	February 2007	Approved - February 2007
Effective Project Approval (Phase 2)	Late 2009/Early 2010	Late 2009/Early 2010
La Promenade swing space completion	Late 2009/Early 2010	Summer 2010
MPs vacate West Block	Late 2009/Early 2010	Summer 2010
Major construction start	2010	Summer 2010
Major construction completion	Late 2018	Late 2018

6. Progress Report and Explanations of Variances

Variances of the Major Milestones:

Previous reported milestones have been revised to reflect progressive iterations of the various projects within the West Block Renovation Program. An active management approach has been instituted to avoid project delays, and lessons learned have been captured and are being applied to subsequent projects of this program.

In an attempt to accelerate the overall schedule of the West Block Renovation Program, we have undertaken a strategy to relocate committee rooms at the same time as moving Members of Parliament. This will enable the West Block to be completely vacant during construction, therefore reducing potential construction work delays and allowing for simultaneous construction activities, hence reducing the overall time to complete the project.

Progress Report and Status Update:

West Block Renovation program activities for 2008-2009 to date include:

• La Promenade building demolition project (Package 1) is complete. (Package 2) - Fit Up of the building, has been tendered and is on schedule, Construction scheduled for completion for Summer 2010;
• Bank of Montreal building - concept design nearing completion;
• Food Production Facility project - construction is commenced, ahead of schedule and planned for completion in Fall 2009.
• The West Block building design including courtyard infill is targeted for completion in Summer 2009;
• Southeast Tower Restoration project successfully completed in Fall 2008. Project completed under original budget. Valuable information gained from this pilot project will be incorporated into future Parliament building projects (seismic, masonry, asbestos removal and roofing).
• The North Towers Restoration project work commenced in the Fall 2008: and
• The West Block Investigations Program is ongoing. This is a proactive measure to understand the current condition of the building to ensure immediate Health and Safety measures are addressed. In addition, these investigations provide information to assist in the future planning of the building. Sensors have been inserted throughout the stone wall to monitor stone movement based on temperature and humidity changes. Work is being conducted with three Canadian universities to analyze and recommend approaches for seismic reinforcement; valuable information has been gained and will be incorporated into the design of the main West Block building as well as the Centre and East Block buildings.

7. Industrial Benefits

A number of multi-million dollar contracts will be awarded for the building construction phase, as well as for the Building Components and Connectivity (BCC) component of the project (information technology systems, multimedia systems, furniture and miscellaneous equipment). It is estimated that 8,500 jobs have and will be generated by the implementation of the West Block Renovation Program

8. Summary of Non-recurring Expenditures

($ Millions)	Estimated Total Expenditure (PPA - June 2005)	Actual Expenditures to March 31, 2009	Planned Spending 2009-2010	Future Years' Requirements
West Block Renovation Program (incl. swing space - excluding Wellington) (current dollars - GST excluded)	$769.2	$96.7	$75	$597.5 (PPA - June 2005)

Parliamentary Precinct Project - Wellington Building

1. Description

The Wellington Building is located at 180 Wellington Street, across from Parliament Hill. It is a six-storey structure first built in 1925 and later enlarged in the 1950's by Metropolitan Life Insurance Company. The House of Commons has been the major tenant since the Crown expropriated the building in 1973. Renovations of the building are required to address health and safety issues, replace obsolete building systems and meet building code requirements. The building will be completely vacated during the renovations. This project is a key enabler of the West Block Building Program, as the Wellington Building will provide interim accommodations for the West Block Committee Rooms during its renovation. It will also provide interim office accommodations for parliamentarians during the restoration of the East and Centre Blocks.

2. Project Phase

The work will be completed in two phases to expedite project delivery. Phase 1 will include interior demolition, asbestos abatement and seismic reinforcement work. Phase 2, dependent on additional funding, will include the restoration of the exterior envelope, renovation of the base building and fit-up the interior space. The planned start of construction is 2010. The entire renovation, including the ten committee rooms required to enable the West Block renovations, and the 69 parliamentary offices to facilitate both East and Centre Block renovations, are targeted to be complete in 2015. The current total cost estimate excluding swing space is $425.2 million (current dollars, excluding GST). Separate project approval has been received for alternate spaces at 181 Queen Street and 131 Queen Street.

3. Leading and Participating Departments and Agencies

Lead Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	House of Commons and Senate of Canada

4. Prime and Major Subcontractor(s)

Prime Contractor	Design consultant for the Wellington renovation project is NORR Architects and Engineers Ltd., 175 Bloor Street East, Toronto, Ontario, M4W 3R8

5. Major Milestones

Major Milestone	Date
Preliminary Functional Program Completed	July 2007
Revised Preliminary Project Approval and Phase 1 Effective Project Approval	March 2008
Consultant Contract Award	August 2008
Final Functional Program	January 2009
Phase 1 Construction Start	2010
Phase 2 Effective Project Approval	2010*
Phase 1 Construction Completion	2012
Phase 2 Construction Start	2012*
Phase 2 Construction Completion	2015

^*Subject to additional funding

6. Progress Report and Explanations of Variances

The prime consultant has been engaged and has progressed through the analysis of project requirements and the completion of the final functional program. Many occupants and functions have been relocated to locations including 181 Queen Street and 131 Queen Street. Alternate space locations for remaining occupants have been defined, and several of the key relocation projects have obtained Preliminary Project Approval.

7. Industrial Benefits

Several multi-million dollar contracts will be awarded over a seven-year period for building construction, information technology systems, multimedia systems, furniture and other equipment. An estimated 1,500 private sector jobs will be generated by this project.

Government of Canada Pension Modernization Project (GCPMP)

1. Description

The GCPMP is a major component of PWGSC's Transformation of Pension Administration agenda. The purpose of this project is to renew PWGSC's pension administration systems and services, and transform its business processes. This will allow PWGSC to provide industry standard pension administration services to employees, employers and pensioners. Employers are looking to provide better and broader services to their employees. Demographic trends indicate that by 2016, approximately 40% of the current public service will have become eligible for retirement. As a result, increasingly large numbers of employees are seeking retirement counselling and want access to capabilities that allow them to analyze their pension benefit options. Similarly, demands for enrolment services are increasing as new employees are hired to replace retirees. At the same time, pension administration business units face significant losses of experienced, trained personnel, as approximately 42 percent of the compensation trainers, supervisors, managers, and coaches will be eligible to retire by the fall of 2009.

PWGSC's approximately 40-year-old systems and business-process infrastructure for pension administration are in grave need of renewal. The limited capabilities of existing processes and the archaic technology of the legacy systems severely compromise PWGSC's ability to sustain current service levels. As well, they severely limit PWGSC's ability to offer future services that are comparable to the delivery performance and cost-effectiveness industry standards.

Although the project is focused on the PSSA administration, the project will implement a multi-plan solution that will provide for other pension plans within the public service.

Since July 2007 the project has been completing its Implementation Phase, which is expected to take 4½ years. The project will replace the current pension systems and business processes with commercial-off-the-shelf software applications and industry-standard business processes. Implementation is proceeding according to the following phased approach, which introduces new systems and functionality over five releases aligned with the centralization of pension services delivery from departments to PWGSC:

New system / functionality and centralized service	Target completion date
Release 1.0 - Implementation of Siebel Case Management software and a new Interactive Voice Response System / Centralization of Service Purchase services	Completed in February 2009
Release 1.5 - Implementation of enhanced case management applications, including document imaging capabilities / Centralization of Plan Enrolment and Orientation services	December 2009 / January 2010
Release 2.0 - Implementation of software functionality related to the administration of Contributor accounts / Centralization of services related to Pension Benefit and Survivor Pension Entitlements and Employer Support	June 2010
Release 2.5 - Implementation of software functionality related to the administration of Service Buyback, Leave Without Pay and Pension Benefits Division Act / Centralization of Leave Without Pay services	November / December 2010
Release 3.0 - Implementation of software functionality related to the administration of Annuitant accounts and accounting	October 2011

2. Project Phase

The two Transformation of Pension Administration projects, the GCPMP and the Centralization of Pension Services Delivery Project (CPSDP) are currently in their Implementation Phases. Implementation activities began in July 2007 and are expected to be completed in January 2012.

3. Leading and Participating Departments and Agencies

Sponsoring Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Stakeholder Departments	Treasury Board Secretariat, Department of National Defence

4. Prime and Major Subcontractor(s)

Prime Contractor	EDS Canada Inc. (EDS)
Major Subcontractor(s)	James Evans and Associates, Siebel Systems, and Vangent (formerly Pearson Canada Solutions)

5. Major Milestones

Milestone	Date
Project Definition Phase (from PPA to EPA):
Preliminary Project Approval (PPA) received from TB	May 3, 2004
Release of draft RFP (Completion: May 2004)	May 25, 2004
Consultations with vendors (Completion: July 2004)	July 2004
Release of final RFP (Completion: September 2004)	October 22, 2004 (Release of RFP was delayed to allow the project to address feedback from consultations)
Close of bidding period (Completion: December 31, 2004)	January 31, 2005 (Bidding period was extended at the request of the bidders)
Evaluation of bids (Completion: March 2005)	May 27, 2005 (Completion date was deferred to accommodate the extended bidding period and the larger than expected number of bids)
Preparation of the TB submission for contract authority / Contract award (Completion: June 2005)	November 4, 2005 - Contract signed with EDS November 7, 2005 - Vendor began work (contract award was deferred to accommodate the extended bidding and evaluation periods. TB approved the contract award to EDS Canada Inc. on October 31, 2005)
Requirements Mapping and Gap Analysis These activities were rescheduled from original planned date of January 2006 to April 2006 following contract award.	April 2006
Architecture and Design (Completion: September 2006)	September 2006
Effective Project Approval (Completion: November 2006)	June 13, 2007 (Completion of the Treasury Board Submission was delayed to accommodate Treasury Board's request to prepare a single submission for both the GCPMP and the Centralization of Pension Services Delivery Project)
Implementation Phase (EPA to Close-Out):
Phase 5 - EPA Start-Up Activities (Completion: January 2008)	March 2008 (Final Crown approval and sign-off of vendor deliverables was completed March 7, 2008)
Phase 6 - Design, Construction and Implementation: Release 1.0 - Client Services Basic Case Management and Interactive Voice Response (IVR) (Completion: October 2008) Release 1.5 - Enhanced Case Management and Imaging (Completion: July 2009) Release 2.0 - Replacement of current system and business processes for the administration of active accounts (Contributors) (Completion: February 2010) Release 2.5 - Improved business processes and system functionality for the administration of Service Acquisition, Leave Without Pay (LWOP) and Pension Benefits Division Act (PBDA) (Completion: July 2010) Software Upgrade (Completion: Spring 2011) Release 3.0 - Replacement of current system and business processes for the administration of retired member accounts (Annuitants) and improvement of Accounting and reporting functionality (Completion: October 2011)	(See note below) Basic Case Management completed December 15, 2008 Interactive Voice Response completed February 2, 2009.
Phase 7 - Final Maintenance Transition (Completion: January 2012)
Phase 8 - Close-out Phase (Completion: January 2012)

Note: The dates for the implementation phase have been updated to reflect the implementation plans completed during the preparation of the TB Submission for EPA.

6. Progress Report and Explanations of Variances

Effective Project Approval was obtained in June 2007. After 2 years of implementation activities, the project is on schedule and within budget.

• Release 1.0 - Client Services: In February 2009, the project completed its first technology release, as well as the centralization of service purchase. The new Siebel Case Management applications, the Genesys software for the Interactive Voice Response system, and the centralized service are now in full operation in the Government's Public Service Pension Centre, located in Shediac, New Brunswick.
• Release 1.5 - Enhanced Case Management and Document Imaging functionality: Implementation activities for the second release began in June 2008, as planned. This release is now expected to be completed in December 2009, having incurred a three-month delay that will not affect the overall completion date of the project. This delay was primarily due to the focus of project resources on the resolution of some technical integration difficulties that arose during the previous release.
• Release 2.0 - Systems and processes to administer active member accounts (including the calculation of estimates): Activities for this release began in January 2008, as planned. Functional specifications for all core pension functions have been completed and the specifications for the remaining components are on schedule for completion in July 2009. Development of core pension functionality is progressing ahead of schedule and all development and implementation activities are on track for completion in July 2010.
• Release 2.5 - Systems and processes related to Service Buyback, Leave Without Pay, and Pension Benefit Division: The implementation of Release 2.5 functionality is expected to begin in September 2009 and be completed in November 2010.
• Release 3.0 - Systems and processes to administer retired member accounts and to perform accounting functions: Implementation activities for this final release are expected to begin in April 2010 and be completed in October 2011.
• Final project closeout is expected to be completed in January 2012.

7. Industrial Benefits

A multi-million dollar contract has been awarded for the COTS products, as well as for the implementation of the new systems and business processes, support services and ongoing maintenance. The products will include Penfax for core pension administration and Siebel for the Customer Relationship Management functions. Implementation of the new solution, business processes and associated business transformation, is the responsibility of the System Integrator, EDS Canada, to whom the contract was awarded. The implementation will be conducted in several phases over a four and a half year period (July 2007 to January 2012). During that time, it is expected that there will be some temporary positions required to support the system implementation and business transformation activities in both the National Capital Area and Shediac, New Brunswick. In the long term, the project will provide the infrastructure and processes essential to the sustainability of current pension administration operations, and positions, in Shediac, New Brunswick.

Royal Canadian Mounted Police

Table 4: Status Report on Major Crown Projects

Real Time Identification (RTID)

Description:

Real Time Identification (RTID) is a re-engineering of systems and processes used for fingerprint identification, civil clearances and criminal records management. It is transforming the current paper-based workflow to an electronic workflow, enabling the “real time” identification of fingerprints submitted electronically.

Fingerprints are submitted by police agencies to support the creation of a criminal record, or to search the criminal record repository during a criminal investigation or civil security screening. RTID is streamlining these services, facilitating information sharing internationally, and permitting an improved tracking of criminals by condensing identification turnaround times from weeks and months to hours and days.

Funding for the RTID Project was announced on April 20, 2004, under the National Security Policy. Between 2001 and 2004 significant work was done by a small project team within the RCMP to define RTID requirements and prepare statements of work in anticipation of this announcement.

Following the announcement, a Project Charter was developed and a formal Project Office was established under the sponsorship of the former Information and Identification Services of National Police Services (NPS), now Policing Support Services. The Chief Information Officer (CIO) was appointed Project Leader and is responsible for achieving the technology improvements associated with the project. The Project Director reports to the CIO.

Project Phase:

The project is being delivered in two major Phases. Phase 1 modernized the civil clearance process, replaced the Automated Fingerprint Identification System (AFIS) and implemented a new transaction manager, the NPS National Institute of Standards and Technology (NIST) Server, permitting agencies to submit their fingerprint information electronically. Phase 1 was delivered in different releases in 2007 and finalized in 2008.

Phase 2 is modernizing the processes related to the management and update of the criminal records. Phase 2 is a large re-engineering effort and the replacement of antiquated legacy systems in support of this re-engineering effort. Phase 2 is being delivered in 2009 and 2010.

Leading and Participating Departments and Agencies

Lead Department	RCMP
Contracting Authority	PWGSC
Participating Departments These departments and agencies are main contributors to the RTID System.	Public Safety Citizenship and Immigration Canada Correctional Services Canada Canada Border Services Agency Transport Canada FBI Provincial and Municipal Police Agencies

The RCMP is the lead department for RTID.  Various levels of governance are in place to ensure the Project is successful and meets the needs of all stakeholders.

The Senior Project Advisory Committee (SPAC) is a senior level committee of RCMP, Public Safety Canada (PS) and central agency officials that advises the Project Leader on all aspects of the project as it relates to government-wide policies, strategic direction and procurement strategy.

The RTID Project Steering Committee provides ongoing direction to the Project and includes representatives of key federal government departments and central agencies.  Oversight of RTID is also linked to existing PS committees.

RTID is a major business transformation initiative of interest to all agencies within the PS portfolio.  Its progress and success in contributing to long-term interoperability is monitored by the stakeholders of the Project Steering Committee.

RTID will be used across Canada and in all jurisdiction levels.  Stakeholder involvement is required to ensure that the system is useful for all and does not hinder or contravene regulations for any.  This involvement is ensured through Technical Consultative working groups.

Prime and Major Subcontractor(s)

Prime Contractor	Fujitsu Consulting (Canada) Inc/Fujitsu Conseil (Canada) Inc 600-360 Albert Street Ottawa, Ontario K1R 7X7 Cogent Systems Inc 209 Fair Oaks Avenue South Pasadena, California USA 91030
Major Subcontractor(s) These companies provide professional services to the RTID Project	Veritaaq Technology House Inc 2327 St-Laurent Blvd, Suite 100 Ottawa, Ontario K1G 4J8 Brainhunter Inc 1515 Carling Avenue, Suite 600 Ottawa, Ontario K1Z 8P9 TPG Technology Consulting Ltd 887, Richmond Rd, Suite 100 Ottawa, Ontario K2A 0G8 ADGA Group Suite 600-116 Albert Ottawa, Ontario K1P 5G3

The RCMP is using several procurement vehicles for the RTID Project:

Automated Fingerprint Identification System (AFIS) Vendor: RTID has replaced the existing AFIS with modern AFIS technology. The AFIS vendor, COGENT Systems, selected via a competitive process, was responsible for the delivery, configuration and implementation of a modern AFIS commercial off-the-shelf (COTS) product. This was completed during Phase 1 of the Project.

Phase 1 development work that provided alignment with the RCMP corporate technical architecture was carried out in-house. The NPS NIST Server, the heart of RTID, has been developed by a team of RCMP resources and contractors. To supplement the skills of internal resources, or to backfill resources seconded to the project, RTID uses internal professional services procurement vehicles to meet any outstanding demand for project management support, systems architecture and engineering support, systems design, systems development, testing, training and implementation.

The major contractors are:

• Veritaaq Technology House Inc
• Fujitsu Consulting (Canada) Inc
• TPG Technology Consulting Inc
• Brainhunter Inc
• Adga Group.

Systems Integration Company: a component of Phase 2 has been contracted out on a fixed-price basis to ensure the successful delivery of the multiple components that make up that phase. A Request for Proposal (RFP) was issued and a contract was subsequently awarded in January 2008 to Fujitsu Consulting (Canada) Inc. This portion represents the core of RTID Phase 2.

Major Milestones

Major Milestone: Phase 1	Date
Approved procurement approach by the Senior Project Advisory Committee	November 2004
TB Preliminary Project Approval and approval of the procurement strategy	December 2004
RFP for the Automated Fingerprint Identification System issued	January 2005
Contract awarded to COGENT Systems and work began	October/November 2005
Effective Project Approval for Phase 1 awarded by TB	October 2005
Automated Fingerprint identification System and Infrastructure to permit electronic fingerprint process in production	March 2007
Electronic fingerprint processes for civil purposes implemented	March 2007
Electronic processing of latent (crime scene) fingerprints implemented	March 2008
Electronic processing of criminal purpose fingerprints implemented (for criminal identification, no retention of information in repository)	August 2008
Phase 1 Closed	September 2008
Major Milestone: Phase 2	Date
Effective Project Approval for Phase 2, and RFP	June 2007
Phase 2 contract awarded (fixed-price contract)	January 2008
Sub-Processes Documented and Validated	August 2008
System Requirements Validation	December 2008
Criminal and Refugee (with Retention) in production	July 2009
Infrastructure Upgrade	August 2009
Migration of contributors completed (Criminal and Refugee)	November 2009
Criminal Record Workflow component designed (Phase 2 Core)	December 2009
Charge and Disposition Library Developed	December 2009
Criminal Record Workflow component implemented	October 2010
Automation Tools Implemented	December 2010
Project Closed	December 2010
System Life Cycle Starts	January 2011

Progress Report and Explanations of Variances

The RTID Project is within the TB initial approved budget of $129.7M, but has a schedule variance compared to the original baseline in 2004. This schedule variance has been caused by a series of factors.

RTID Phase 1 was successful and closed in September 2008, 18 months later than previously planned. This delay was caused by a late start for the development work. The RCMP had to hire a number of developers to work on the project due to conflicting priorities. The developers had to go through the RCMP security process and be trained on specific RCMP systems before being totally efficient.

Another factor causing the delay to Phase 1 was the complexity of criminal functionality included in Phase 1. Criminal functionality is mainly linked to Phase 2, but some workflows had to be developed to decommission the legacy AFIS. This is the case for Latent and Criminal Identification transactions.

The schedule variance has been carried over to Phase 2. Phase 2 was originally planned to be completed by March 2009, but is now scheduled to be implemented by December 2010. The main factor for this schedule variance has been caused by the Phase 1 delay and the procurement process for the Phase 2 fixed-price contract. The contract was finally awarded in January 2008.

Additional work has also been added to the project, such as the Charge and Disposition Library (CDL). This functionality was not originally in the scope for RTID Phase 2, but was anticipated at the time of Phase 2 EPA, and a note was included in the submission as it became evident that this function was required for the project to be successful.

Industrial Benefits

Not applicable.