ARCHIVED - 2009-2010 DPRs - Status Report on Major Crown Projects

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• Agriculture and Agri-Food Canada
• Canada Border Services Agency
• Canadian Space Agency
• Citizenship and Immigration Canada
• Fisheries and Oceans Canada
• Health Canada
• National Defence
• Public Works and Government Services Canada
• Royal Canadian Mounted Police
• Transport Canada

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Agriculture and Agri-Food Canada

Status Report on Major Crown/Transformational Projects

Description:

The Grants and Contributions Delivery Project (GCDP) is in the process of being repositioned to ensure that it fits in with our overall grants and contributions reform, supports Government of Canada administrative reform efforts, and that rigorous project management controls required for projects of this size are implemented.

GCDP received authority in June 2009 through the Growing Forward Service Excellence initiative to conduct Preliminary Project Approval (PPA) of GCDP, which includes the System Development Life Cycle phases of Conceptual, Preliminary and Detailed Design.

PPA will add clarity to the GCDP requirements and propose a design for a flexible common departmental grants and contributions delivery platform (Grants and Contributions Delivery System (GCDS)) to be accessible to all non-Business Risk Management (BRM) proposal-based programs.

The GCDP is split into two discrete phases:

1. Preliminary Project Approval (PPA ) which will include business transformation toward a core common business process framework and further clarification of the GCDS business requirements, flexible architecture design and completion of functional design of the common Departmental Grants and Contributions delivery platform for all non-BRM grants and contributions programs; and
2. Effective Approval (EPA) - develop/build the platform components (estimated completion March 2013 includes a year stabilization period).

The project will officially conclude when:

• the non-BRM grants and contributions delivery platform includes all critical functionality of security, financial and reporting requirements;
• three early-adopter programs have been implemented onto the delivery platform;
• the in-house GCDS Support Centre is in place in the Information Services Branch (ISB). This Centre will provide maintenance, end user support and continued program implementation of all remaining and upcoming new programs.

Project Phase:

This project is currently in the initial planning and identification phase.

Leading and Participating Departments and Agencies:

Lead Department:	Agriculture and Agri-Food Canada
Contracting Authority:	Agriculture and Agri-Food Canada, Public Works and Government Services Canada
Participating Departments and Agencies:	Public Works and Government Services Canada, Treasury Board Secretariat

Prime and Major Sub-Contractors:

Prime Contractor:	Deloitte & Touche LLP - 100 Queen Street, Suite 800, Ottawa, Ontario, K1P 5T8
Major Sub-Contractors:	CSDC Systems Inc. (formerly Grantium) - 279 Laurier Ave. West, Suite 200, Ottawa, Ontario K1P 5J9

Major Milestones:

Major Milestones	Completion / Target Date
Preliminary Project Approval	04-Jun-09
Conceptual Design & Approved Architecture	01-Jul-10
Business Alignment	31-Oct-10
Detailed Design & EPA Package (Final Draft)	31-Dec-10
Effective Project Approval	31-Mar-11
Development and Implementation	31-Apr-12
Stabilization and Maintenance	31-Mar-13

Project Outcomes:

• Business transformation completed with adoption of a core common business process framework;
• Non-BRM grants and contributions delivery platform will be designed to support core common business processes across AAFC, which will fully support the standardization of approach to receiving, screening, assessing and approving applications, and enhance grants and contributions program performance while ensuring overall transparency and integrity;
• Facilitate the review/processing, management/reporting of applications and associated claims for payment;
• Facilitate access to AAFC non-BRM programs and services online and the ability to submit a wide variety project reports and claims;
• Ability to enter applicant information in the system once and apply to any program implemented on the platform; and
• Allow for predictable and efficient response times.

Progress Report and Explanations of Variances:

PPA Progress to date:
Conceptual Design phase - complete
Overall business requirements - underway
Stakeholder engagement strategy and roadmap - underway
Treasury Board EPA Submission - underway
Supplementary project staffing - underway
Project Governance - complete
Independent Assessment to assess the viability of the GCDP go forward plan and the project’s readiness to proceed - complete
Management Response to Independant Assesment and associated Action Plan - underway

The project team has re-established project milestones target dates for the PPA phase of the project to ensure the business re-design is achieved before implementing technology. This will ensure a stronger understanding and endorsement of grants and contributions reform and the proposed solution department wide, which will form the basis for the EPA being submitted to Treasury Board. The GCDP team has developed a strategy and plans to continue to address all findings of the independent assessment as well as an approach to stay aligned to the Service Excellence Treasury Board Submission to have a common non-BRM grants and contributions delivery platform implemented by 2013.

Industrial Benefits:

In February 2007, an independent blue ribbon panel provided recommendations aimed at simplifying the administration of grants and contributions while, at the same time, strengthening accountability and risk-based approaches for managing the programs. Through the development of the action plan and other work that has taken place over the past year, AAFC is meeting the commitments made by the Government in response to the panel's key recommendations.

With this plan, recipients, stakeholder organizations and federal program administrators will be able to see our progress, and more importantly, the project's next steps and our commitment to engage them in the process. The last year has seen much activity, and a solid foundation is being laid for systemic change. This kind of change takes time, and there is still much work to be done. However, it is believed that the action plan will serve as a vital roadmap to guide AAFC over the next few years.

Note: Further details on this project can be found in the Status Report on Projects operating with specific Treasury Board Approval in the 2009-10 DPR.

Canada Border Services Agency

Status Report on Major Crown/Transformational Projects

eManifest

1. 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 implementing Phase III, which is known as Electronic Manifest, or eManifest.

eManifest is the next critical step required to improve the ability of the CBSA to detect shipments that pose a high or unknown risk to the safety and security of Canadians. The objective of eManifest is to implement electronic processes based on advance electronic cargo information to effectively analyze risk, ensure efficient border procedures and secure the international trade supply chain. Under eManifest, highway and rail carriers, along with freight forwarders and importers in all modes, will transmit advance cargo, conveyance, crew and importer trade data before the arrival of the cargo at the border. eManifest will complement and build upon the risk management strategies currently employed in both the air and marine modes, by enhancing the risk assessment capacity and scoring methodologies for all modes. This initiative focuses on pushing the border out by getting the right information at the right time to protect Canadians from health, safety and security threats related to commercial goods before they arrive in Canada.

eManifest will feature the following:

• reporting using electronic data interchange,
• a Web portal,
• automated risk assessment,
• an enhanced client notification system,
• a data warehouse and associated business intelligence tools, and
• compliance management and management information reporting.

2. Project Phase

eManifest has multiple components in various project phases; some elements have been implemented and others are in the analysis and design and construction and development phases.

3. Leading and Participating Departments and Agencies

Lead Department	Canada Border Services Agency
Contracting Authority	Canada Revenue Agency and Public Works and Government Services Canada
Participating Departments	N/A

4. Prime and Major Subcontractor(s)

Prime Contractor	N/A
Major Subcontractor(s)	N/A

5. Major Milestones

Major Milestone	Date
Readiness activities – Information technology prerequisites and deployment of the Synchronous Technology and Application Release configuration	Implemented November 2007
Readiness activities – Automated in-transit pilot project (Phase I)	Implemented June 2008
Rail reporting (Phase I)	Implemented March 2009
Highway In-Transit Pilot (Phase II) Customs electronic commerce platform capacity upgrade	Implemented October 2009
Highway carrier reporting Client notification Passage (interim enhancements for highway) Infrastructure capacity upgrade (Phase I)	Summer 2010
Highway Web portal Infrastructure capacity upgrade (Phase II)	Winter 2011
Risk assessment (air) Rail reporting (Phase II) Passage (interim enhancements for rail) Commercial reporting	Spring 2011
Highway reporting – Secondary cargo Client notification (broker download) Passage (interim enhancements for freight forwarders) Business intelligence and data warehouse infrastructure (freight forwarders) Commercial reporting	Summer 2011
Highway Web portal (freight forwarders) Commercial reporting Infrastructure capacity upgrade (Phase III)	Winter 2011
Highway reporting – Importer advance trade data Client notification Highway Web portal (retrofit) Passage (interim enhancements for importer advance trade data)	Spring 2012
Highway Web portal (importer advance trade data) Upgrade for marine and air crew reporting Infrastructure capacity upgrade (Phase IV)	Spring 2013
Risk assessment – All modes (air, highway, marine and rail)	Winter 2013
Highway Web portal (reporting) Passage (final implementation)	Summer 2014
Highway Web portal (crew data) Highway crew reporting Risk assessment (marine) Business intelligence and data warehouse infrastructure (crew)	Winter 2014

6. Project Outcomes

eManifest will feature:

• implementation of prerequisites activities for critical information technology,
• advance electronic crew, cargo, conveyance and advance trade data information from highway and rail carriers, freight forwarders, importers and customs brokers,
• a Web portal for clients to facilitate compliance,
• automated risk assessment in advance of the arrival of goods to Canada's border,
• streamlined border processing through integration of systems for CBSA officers, and
• development of a data warehouse and supporting business intelligence software, which will include the centralization and integration of data from various CBSA systems to support intelligent risk assessment of eManifest pre-arrival information through pattern detection and trend analysis.

In addition, some of the products and features listed above will be retrofitted to the air and marine modes.

eManifest will enable:

• enhanced knowledge and capacity to risk assess pre-arrival data and for trade community compliance,
• enhanced cooperation with U.S. Customs and Border Protection through harmonized commercial processes,
• enhanced innovative systems and technology to effectively and efficiently assess data,
• increased success of detection activities to intercept high-risk goods and travellers,
• increased compliance by trade community with CBSA legislation,
• enhanced flow of low-risk people and goods, and
• improved stakeholder satisfaction.

7. Progress Report and Explanations of Variances

• eManifest received effective project approval from Treasury Board on November 29, 2007 as a major Crown project with an approved budget of $396 million (net of goods and services tax) over five years.
• Subsequent to effective project approval, the project completion date was revised to reflect a shift in project funding over two years, as part of the CBSA’s contribution in support of Canada’s Economic Action Plan. The impact of the funding realignment has extended the completion date and necessitated a realignment of project deliverables and implementation time frames.
• As a result of the extended time frame, eManifest’s funding profile required a reallocation of funds for 2012–14 where there was no Treasury Board funding originally allocated.
• Agency reference levels still reflect preliminary project approval funding amounts. This has resulted in annual internal carry-forwards to align funding to effective project approval plans.
• Expenditures were reduced in 2009–10 as a result of a re-profile of project funding to future years (2012–14). The realignment of funding is attributed to a delay in the implementation of business intelligence and data warehouse infrastructure technology, a delay in the deployment of the Passage system at first point of arrival and associated costs related to the uptake of highway carriers. Synergies of staffing among the CBSA’s major projects have also been realized.
• eManifest is to be completed by 2015.

In 2009–10, the eManifest project team made significant progress in carrying out various project activities. Highlights included:

• Bill S-2, an Act to amend the Customs Act, received Royal Assent on June 11, 2009. This Bill contains modifications to the requirements for advance commercial reporting that provide the Agency with the authority to mandate that carriers, importers and freight forwarders, in all modes of transportation, provide the CBSA with electronic shipment information before arrival in Canada.
• The eManifest Business Intelligence Strategy and road map were approved in July 2009. A data governance framework and a data stewardship group have been established, which will standardize the use of data and data definitions to ensure future data quality and linkages to business ownership.
• The Highway In-Transit Pilot was successfully tested and was implemented into CBSA production systems as of October 4, 2009. This enhancement supports linkages between the existing commercial systems of the CBSA and U.S. Customs and Border Protection. To accompany the system upgrades, the CBSA and U.S. Customs and Border Protection will work cooperatively to communicate information related to in-transit cargo shipments.

The 2009–10 reporting period also included significant stakeholder engagement activities related to the implementation of eManifest in the highway mode and the deployment of the Web portal in 2010–11. These activities included:

• the distribution of the electronic commerce client requirements document for highway carriers to the trade community for discussion and finalization, and
• the gathering of stakeholders and agency representatives through the eManifest Stakeholder Partnership Network and other consultative forums to discuss eManifest design, development, implementation and communication activities.

8. Industrial Benefits

As 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 facilitating the free flow of low-risk people and goods.

Air Cargo Security

1. Description

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

Transport Canada is the lead for the Air Cargo Security Program; the CBSA is a participating department. Only CBSA information is provided below.

2. Project Phase

In 2009–10, priority initiatives of the Air Cargo Security Program were implemented.

3. Leading and Participating Departments and Agencies

Lead Department	Transport Canada
Contracting Authority	Public Works and Government Services Canada and the Canada Revenue Agency
Participating Departments	Canada Border Services Agency

4. Prime and Major Subcontractor(s)

Prime Contractor	n/a
Major Subcontractor(s)	n/a

5. Major Milestones

Major Milestone	Date
Privacy impact assessment	Ongoing
Interim technology standards released	July 31, 2009
Secure supply chain management system contract resolution	September 18, 2009
High-risk cargo defined	September 15, 2009
Air cargo security measures released	August 28, 2009
Economic analysis (initial)	August 31, 2009
Memorandum of Understanding completed	To be done after the privacy impact assessment is completed
Memorandum to Cabinet draft completed	December 3, 2009
Treasury Board submission draft (next phase)	Completed May 2010
Regulatory standards completed	January 31, 2010
Remote air sampling completed for canine olfaction test bed	May 7, 2010 (anticipated)
Costruzioni elettroniche industriali automatismi test bed completed	May 21, 2010 (anticipated)
Air cargo security measures effective	March 31, 2010

6. Project Outcomes

Air travellers will benefit from this program. Benefits include:

• enhanced regulatory regime;
• oversight, training and compliance;
• screening technologies and processes;
• mutual recognition and interoperability;
• support for risk assessments undertaken by Transport Canada; and
• screening of air cargo items at small and remote Class II and Class Other airports.

7. Progress Report and Explanations of Variances

The current Treasury Board submission was signed in August 2009. Milestones such as the privacy impact assessment and the Memorandum of Understanding are expected to be completed in early 2010–11.

8. Industrial Benefits

• 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 contributing to Canada’s economic prosperity.

Temporary Resident Biometrics

1. Description

The Temporary Resident Biometrics Project is a Citizenship and Immigration Canada-led major Crown project, in partnership with the CBSA and RCMP. The objective of the project is to streamline identity management within the Government of Canada’s Temporary Resident Program. Against the backdrop of the rise of identity fraud globally and the use of ever more sophisticated means to evade detection, a key challenge in Canada’s immigration program is identifying applicants and managing their identity with confidence. The Temporary Resident Biometrics Project is not aimed at a re-engineering of processes and systems, but rather an enhancement to existing visa, study and work permit applications and visitor entry processes, and leveraging the investment in existing systems of Citizenship and Immigration Canada, the CBSA and RCMP to the maximum extent possible.

Budget 2008 provided the CBSA with funding in the amount of $12.7 million. Using this funding, the CBSA will design and develop a photo verification solution at all ports of entry, as well as a solution for discretionary biometric verification in secondary inspection at selected ports of entry. The CBSA is currently on schedule to implement the above-noted work components by March 2013.

2. Project Phase

The Temporary Resident Biometrics Project is currently in the analysis and design phase.

3. Leading and Participating Departments and Agencies

Lead Department	Citizenship and Immigration Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	CBSA and RCMP

4. Prime and Major Subcontractor(s)

Prime Contractor	n/a
Major Subcontractor(s)	n/a

5. Major Milestones

Major Milestone	Date
Business requirements for Phase 1 (re-scoped option)	April 2010
Business use cases for Phase 1 (re-scoped option)	Summer 2010
System requirements for Phase 1 (re-scoped option)	June 2010
System use cases for Phase 1 (re-scoped option)	Fall 2010
Memorandum to Cabinet	Fall 2010
Posting of the request for proposal	November 2010
Effective project approval submission	December 2010
Evaluating responses to the request for proposal	January 2011 to March 31, 2011

6. Project Outcomes

• Migration that significantly benefits Canada’s economic, social and cultural development, while protecting the health, safety and security of Canadians. Related program activities: the Immigration Program and the Temporary Resident Program.
• International recognition and acceptance of the principles of managed migration consistent with Canada’s broader foreign policy agenda, and protection of refugees in Canada. Related program activities: Canada’s role in international migration and protection, and the Refugee Program.
• Successful integration of newcomers into society and promotion of Canadian citizenship. Related program activities: the Integration Program and the Citizenship Program.
• Canada’s population is safe and secure from border-related risks. Related program activities: Port of entry operations (Conventional Border).
• Legitimate travellers and goods move freely and lawfully across the border. Related program activities: Port of entry operations (Conventional Border).

Beneficiaries

• The affected client groups are primarily applicants for temporary resident visas. In 2006, Citizenship and Immigration Canada received over 1.2 million applications abroad in the temporary immigration program. The volume of temporary applications has been increasing in recent years and is estimated to reach roughly 1.6 million by 2012.
• Canadian society will be the prime beneficiary of this initiative. Strengthened identity management will provide increased security and reduce the abuse of the Immigration Program. These are key elements of ensuring the safety, security and health of Canadian society and maximizing the economic benefits of immigration. A March 2007 survey by Ipsos Reid found that 88 percent of Canadians were supportive of the use of biometrics in verifying the identity of foreign nationals applying for visas, and 90 percent supported conducting background checks on foreign nationals seeking to enter Canada.

7. Progress Report and Explanations of Variances

• With the $12.7 million that the CBSA received in Budget 2008, the project has been re‑scoped to include only photo verification at all Canadian ports of entry, and discretionary fingerprint verification in secondary inspection at selected ports of entry.
• Amended preliminary project approval was received in April 2010.
• Various documents in support of overall project management have been prepared, such as a project charter. In addition, business requirements and business use cases to support the reduced scope are well underway.
• Due to delays in the request for proposal process, the CBSA did not procure any equipment in 2009–10.
• The CBSA is currently on schedule to design and develop photo verification at all Canadian ports of entry and discretionary biometric verification at secondary inspection at selected ports of entry.
• The CBSA is currently operating within budget, as allocated by the Department of Finance Canada, for the reduced scope project option.
• The CBSA will be ready to implement the reduced scope solution by March 31, 2013 as originally envisioned.

8. Industrial Benefits

Given the greater assurance of an individual’s identity due to the addition of biometrics, Canadian society will be the prime beneficiary of this initiative. Strengthened identity management will provide increased security and reduce the abuse of the Immigration Program. These are key elements of ensuring the safety, security and health of Canadian society and maximizing the economic benefits of immigration.

Canadian Space Agency

3.3.4) Status Report on Major Crown/Transformational Projects

RADARSAT-2

1- 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 in support of security and sovereignty, 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 right on left with a resolution down to three meters 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 (MCP) was carried, in partnership with MacDonald, Dettwiler and Associates (MDA), for 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 $418.1 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 maintain and further enhance a commercial industrial satellite remote sensing industry in Canada.

2- Project Phase

RADARSAT-2 MCP was closed-out in May 2010.

3- 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

4- 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), Ste-Anne-de-Bellevue, Quebec Alenia Aerospazio, Rome, Italy AEC Able Engineering Co., Goletta, California RADARSAT International (RSI) (now MacDonald, Dettwiler and Associates), Richmond, British Columbia STARSEM, Baïkonour, Kazakhstan

5- Major Milestones

The major milestones on MCP, by phase, were 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/Commissioning complete	September 2005 January 2007 July 2007 December 2007 April 2008
E	Operations	2008 to 2015

6- Project Outcome

RADARSAT-2 is managed under the Space Based Earth Observation Program Activity and contributes to a single overarching outcome: the benefits of activities involved in Earth Observation from space serve Canadian users in the fields of environment, resource and land-use management, and security and sovereignty. This result is measured by:

1. Proportion of active missions relative to the total number of missions supported by Canada in the EO priority areas.

2. Number of applications developed as a result of CSA's participation in space missions and/or support to projects/activities in EO considered "operational" from program standards.

3. Number of uses of EO data as a result of CSA's participation in space missions and/or support to projects/activities in EO.

The performance appears in the CSA Departmental Performance Report. For more performance information, go to the electronic version "Analysis of Program Activities by Strategic Outcome – Detailed Performance Information"at the following address:
http://www.asc-csa.gc.ca/eng/publications/default.asp#parliament

An evaluation of the RADARSAT-2 MCP was completed in 2009. To learn more about it, go to: http://www.asc-csa.gc.ca/pdf/mcp-5702-7823.pdf

7- Progress Report and Explanations 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, the firm MDA was selected to construct and operate RADARSAT-2.

In December 1998, the CSA and MDA signed a Master Agreement 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 firm 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 National Research Council Canada (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, TB 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, TB 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, TB 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 which evolved to become RADARSAT Constellation Mission.

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 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. The necessary funding to cover all additional expenditures for the CSA is from within the project risk funding envelope and associated project authorities. With RADARSAT-2 being fully operational and the government departments making regular use of the data, the CSA prepared the closure of the RADARSAT-2 MCP and submitted to TB in March 2010.

8- Industrial Benefits

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

A major objective of this project was 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 is 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.

At completion in 2007, the CSA had funded $236.66 million worth of work to Canadian industry directly attributable to the RADARSAT-2 MCP. Direct industrial benefits from the construction of RADARSAT-2 have benefited several regions of Canada. The regional distribution of direct industrial benefits is shown in the following table.

Regional Distribution of RADARSAT-2 Contracts to Canadian Industry
(at project completion)

Program	British Columbia	Prairie Provinces	Ontario	Quebec	Atlantic Provinces	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)
(at project completion)

Program	Current Estimated Total Expenditure	Actuals at March 31, 2010	Future Years
RADARSAT-2	417.8	417.8	0.0

RADARSAT Constellation

1-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 and 2015. 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, environment and resources monitoring, and disaster management. The three satellite constellation will provide more accurate data than its predecessors with an average daily coverage of Canada and its surrounding waters. Coverage will increase significantly in Canada's North.

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 sea lanes. 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 environment and resources monitoring for 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 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 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 access to data and privileged positioning on international markets 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.

2- Project Phase

RADARSAT Constellation MCP completed the preliminary design in March 2010.

3- Leading and participating Departments and Agencies

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

4- Prime and Major Sub-Contractors

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

5- Major Milestones

The major milestones on MCP, by phase, are the following:

Phase	Major Milestones	Date
A	Requirement Definition	March 2009
B	Preliminary Design	March 2010
C	Detailed Design	January 2012
D	Launch satellite #1 Launch satellite #2 Launch satellite #3	August 2014 April 2015 June 2016
E1	Operations (part of MCP)	September 2017
E2	Operations (not part of MCP)	2017 to 2023

6- Project Outcomes

RADARSAT Constellation is managed under the Space Based Earth Observation Program Activity and will contribute to a single overarching result: the benefits of activities involved in Earth Observation from space serve Canadian users in the fields of environment, resource and land-use management, and security and sovereignty. This result is measured by:

1. Proportion of active missions relative to the total number of missions supported by Canada in the EO priority areas.

2. Number of applications developed as a result of CSA's participation in space missions and/or support to projects/activities in EO considered "operational" from program standards.

3. Number of uses of EO data as a result of CSA's participation in space missions and/or support to projects/activities in EO.

Performance is monitored in the CSA Departmental Performance Report. For more performance information, go to the electronic version "Analysis of Program Activities by Strategic Outcome – Detailed Performance Information"at the following address:
http://www.asc-csa.gc.ca/eng/publications/default.asp#parliament

7- 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 (TB) 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 TB 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 TB. 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. Phase B was completed in March 2010. The contract for Phase B was amended to include the scope of Phase C which will continue until January 2012. Budget 2010 approved continuation of the RCM program by allocating $497 million over 5 years, $100 million of which will come from CSA's Reference Levels.

8- 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 March 2010, the CSA has funded $52 million worth of work to Canadian industry directly attributable to the RADARSAT Constellation MCP.

CSA's overall regional distribution targets will apply to the project on a "best efforts" basis. The prime contract also includes a requirement for 70% Canadian content, excluding launch services. Since Canadian Space Program spending is relatively low in Atlantic Canada, a minimum requirement of 3.5% of the total Canadian content will apply 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 Atlantic Canada Opportunities Agency to monitor regional distribution achievements and to support the prime contractor in the delivery of the given targets.

Regional Distribution of RADARSAT Constellation Contracts
to Canadian Industry
(as of March 31, 2010)

Program	British Columbia	Prairie Provinces	Ontario	Quebec	Atlantic Provinces	Total Canada
RADARSAT Constellation	30.2%	11.8%	19.8%	35.0%	3.2%*	100%

*Note: This represents 4.3% of the Canadian content target of 70%.

Summary of Non-Recurring Expenditures ($ in millions)
(as of March 31, 2010)

Program	Current Estimated Total Expenditure	Actuals at March 31, 2010	Future Years
RADARSAT Constellation	145.9	62.9	83.0

James Webb Space Telescope (JWST)

1- Description

The James Webb Space Telescope (JWST) is a joint mission of National Aeronautics and Space Administration (NASA), European Space Agency (ESA), and the CSA. 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 the origin of life, 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.
• Studying the formation and early evolution of proto-planetary disks, and characterizing the atmospheres of isolated planetary mass objects.

The JWST is 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 Far Ultra Violet Spectroscopic Explorer (FUSE) mission. Packaged with the FGS but functionally independent, the TFI 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 MCP, in partnership with the firm COM DEV International Ltd., consists of the design, development, integration and testing and integration into the spacecraft, launch and commissioning of the FGS and TFI.

By participating in this leading-edge international space exploration mission, the CSA 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.

2- Project Phase

The JWST-FGS Major Crown Project (MCP) is currently in phase D Integration and Testing.

3- 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

4- Prime and Major Sub-Contractors

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

5- 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 September 2008
D	Manufacturing/Assembly; Integration/Testing; Pre-launch preparations, Launch/System Commissioning	May 2007 to December 2015
E	Operations	2014-2015 to 2018-2019

Note: The MCP terminates with the completion of Phase D.

6- Project Outcome

The JWST-FGS MCP is managed under the Space Science and Exploration Program Activity and will contribute to a single overarching result: Participation in Canadian and international missions expands the scientific knowledge base made available to Canadian academia and research and development communities in the areas of astronomy, space exploration and solar-terrestrial relations, as well as in physical and life sciences. This result is measured by:

1. Proportion of active missions relative to the total number of missions supported by Canada in the space science and exploration priority areas.

2. Number of scientific instruments and technological applications developed as a result of CSA's participation in space missions and/or support to projects/activities in space science and exploration.

3. Number of peer-reviewed papers produced in academia and the R&D community in Canada recognizing CSA's support through its participation in space missions and/or support to projects/activities in space science and exploration.

Performance is monitored in the CSA Departmental Performance Report. For more performance information, go to the electronic version "Analysis of Program Activities by Strategic Outcome – Detailed Performance Information" at the following address:
http://www.asc-csa.gc.ca/eng/publications/default.asp#parliament

7- Progress Report and Explanation of Variances

In March 2004, Treasury Board (TB) 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. TB 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 TB 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 MCP.

The first Critical Design Review (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.

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 TB to amend its Effective Project Approval (EPA) for the JWST MCP. The current estimated total cost for the Definition and Implementation phases is now $134.7 million. On December 2007, TB granted a revised Effective Project Approval. Manufacturing, integration and test of the FGS will be completed during Fiscal Year 2010-2011.

Over the last period, the project has been very busy with the hardware and software development. COM DEV International Ltd., the prime contractor for the JWST Fine Guider Sensor (FGS) project, has been working on the FGS Engineering Test Unit (ETU) and Proto Flight Model (PFM).

On the ETU, a major achievement has been the successful completion of the cryogenic detector alignment test in August 2009 at CSA David Florida Laboratory (DFL) test facilities. This milestone paved the way towards the highly anticipated environmental test campaign where the FGS ETU was subjected to environmental conditions replicating launch, transition to its operation site and operations. These tests started at DFL in the fall of 2009 and should be completed early in fiscal year 2010-2011 with a shipment review planned at the beginning of May. The ETU will then be delivered to NASA Goddard Space Flight Center.

On the PFM side, COM DEV International Ltd. has received the flight components and proceeded with the integration steps. The PFM is planned to be delivered to NASA Goddard Space Flight Center in 2011.

8- Industrial Benefits

As of March 31, 2010, the CSA has funded $71.97 million worth of work to Canadian industry directly attributable to the JWST-FGS MCP. 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 to Canadian Industry
(as of March 31, 2010)

Program	Ontario	Quebec	Atlantic Provinces	Total Canada
JWST-FGS and TFI	86.0%	11.6%	2.4%	100%

Summary of Non-Recurring Expenditures ($ in millions)
(as of March 2010)

Program	Current Estimated Total Expenditure	Actuals at March 31, 2010	Future Years
JWST-FGS and TFI	144.9	126.1	18.8

Citizenship and Immigration Canada

Status Report on Major Crown/Transformational Projects

Global Case Management System
Temporary Resident Biometrics Project

Global Case Management System

Description:

The Global Case Management System (GCMS) is Citizenship and Immigration Canada’s (CIC’s) electronic business platform. It is integral to making the citizenship and immigration system more modern, efficient, flexible and responsive to Canada’s labour market. It is essential to improving citizenship and immigration services, maintaining program integrity and strengthening the security of Canada.

GCMS is helping CIC move toward an integrated and virtual business model. GCMS also lays the foundation to support future business improvements and innovation, such as the introduction of e-services and improved identity management through biometrics.

Project Phase:

GCMS is currently in the project implementation phase. GCMS was granted preliminary project approval by Treasury Board in 2001. In September 2004, it was successfully implemented for the Citizenship Program. The first version of GCMS is currently being used to process more than 200,000 applications each year for Canadian citizenship and proof of citizenship.

Based on the results 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 to develop the next phase of GCMS, which focused on visa offices overseas where the majority of clients first seek CIC services.

An independent review completed in June 2009 confirmed that the project schedule is achievable, the technology is sound and the initiative is on track. Once fully implemented in March 2011, GCMS will provide a single, integrated processing capability for all citizenship and overseas immigration applications.

Leading and Participating Departments and Agencies

Lead Department	CIC
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Canada Border Services Agency (CBSA)

Prime and Major Subcontractor(s)

Prime Contractor	None (CIC is responsible for system integration)
Major Subcontractor(s)	None (various subcontractors are used)

Major Milestones

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 Immigration and Refugee Protection Act (IRPA)	August 2000
Treasury Board grants Preliminary Project Approval and major Crown project designation to GCMS	March 2001
Treasury Board grants Effective Project Approval (EPA) to GCMS	January 2002
Request for proposal for the acquisition of a commercial, off-the-shelf software package for case management is posted for tender by PWGSC	February 2002
Contract for the off-the-shelf software package for case management is awarded	March 2003
Treasury Board grants amended EPA to 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 Goods and Services Tax	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
Independent review confirms that technology is sound, project schedule is achievable and that “success is within sight”	June 2009
Treasury Board releases remainder of funding required to complete the project	September 2009
Deployment of new GCMS version to existing citizenship users	May 2010
GCMS deployment to first visa office overseas	June 2010
GCMS deployment to all visa offices overseas is complete	March 2011

Project Outcomes

GCMS is CIC’s secure electronic business platform that will integrate citizenship and immigration data worldwide. It will provide a secure and effective system for managing clients that will deliver improved program integrity, increased overall efficiency and better service delivery—all elements of the government agenda—in a complex and changing business environment. GCMS will lay the foundation to support future business improvements and innovations such as the introduction of e-services and improved identity management through biometrics.

Progress Report and Explanations of Variances

The GCMS project is within its approved budgetary estimate of $387 million and deployed GCMS Release 2 (to its first international mission in June 2010) on schedule.

In September 2009, Treasury Board reviewed the latest project status report and released the remainder of the funding required to complete the project.

Previously, in August 2008, Treasury Board granted approval to extend the time required to complete the project to March 31, 2011, and increased the project’s total spending authority to $387 million (including Goods and Services Tax). Consistent with recommendations from independent reviews conducted between December 2006 and December 2007, GCMS Release 2 is being developed with a reduced scope focused on visa offices 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 CBSA;
• amendments to the IRPA, representing a major change in the administration of the immigration system; and
• a need to respond to increased security risks, while respecting privacy.

Industrial Benefits

This major Crown project does not directly benefit Canadian industry; it is a project to provide CIC with an automated, integrated case management tool to support its global business network and to provide enhanced end-to-end client services to support the delivery of CIC’s services.

Temporary Resident Biometrics Project

Description:

Today, the use of biometrics is expanding rapidly given its unique approach and its potential to identify an individual reliably. The introduction of biometric technology into the temporary resident stream screening process will enhance the screening of applicants in the temporary program, thereby fixing the client’s identity at the time of application for a visa or for a study or work permit, and allowing verification of that identity when the individual seeks entry at the border. As a result, Canada will better ensure the safety and security of Canadian society and reduce abuse of the immigration system by limiting opportunities for persons with Canadian criminal or deportation histories to use alternate identities to return to Canada. The project will also facilitate the processing of legitimate temporary workers, students and visitors. Many other countries, including such key migration countries as the United States, the United Kingdom, Australia and New Zealand, have either recently implemented or are planning to implement similar projects.

Project Phase:

The Temporary Resident Biometrics Project is currently in its planning/identification phase. During the planning/definition phase, CIC, CBSA and the Royal Canadian Mounted Police (RCMP) are working collaboratively to define the solution, as well as the approaches and plans for implementing the Temporary Resident Biometrics Project. A critical first step is the clear definition of a set of comprehensive business and supporting infrastructure requirements agreed to by all partners. Requirements will then be used to define the business solution and how it will work (functional design), how technology will enable the solution (technical design), and how all the pieces fit and work together (supporting architectures).

Substantive plans and strategies for completing the project and managing the business change are expected to be finalized and approved by all partners, culminating 2010–2011 with a submission to obtain Effective Project Approval.

During the implementation phase, expected to begin in 2011, the project will focus on developing, monitoring and controlling deliverables (as defined by the business requirements), while meeting schedule commitments.

Leading and Participating Departments and Agencies

Lead Department	Citizenship and Immigration Canada
Contracting Authority	PWGSC
Participating Departments	CBSA and RCMP

Prime and Major Subcontractor(s)

Prime Contractor	None (Tendering in early 2011)
Major Subcontractor(s)	Not applicable (N/A)

Major Milestones

Major Milestone	Date
Effective Project Approval	2010
Request for Proposal (RFP) Tender	2011
Deployment	2011–2013
Project Shutdown	2013

Project Outcomes

Funding was included in Budget 2008 to enhance and strengthen identity management within the Temporary Resident Program, allowing overseas visa officers and border service officers at ports of entry (POEs) to make decisions based on accurate identity and immigration admissibility information, and permitting border service officers to verify applicants’ identity at Canada’s POEs. The following performance indicators underscore the benefits of the project:

Protect Canadians
Between 2003 and 2007, 0.7 percent of refugee claimants had hits against the RCMP criminal fingerprint database. Based on the current volume of 1.2 million temporary applicants with the assumption of a similar pattern of hit results, it is estimated that fingerprint matching could detect 8,400 known criminals or potential security threats annually.

Reduced Abuse of Visa Program
Biometrics will allow the Government to detect and deter temporary applicants who use different identities, including previously refused visa/permit applicants. Fingerprint matching of refugee claimants between 2003 and 2007 found that 2.5 percent of them made repeat claims, likely under different identities. It is expected that the application of biometrics in the Temporary Resident Program will yield similar results.

Reduced Abuse of Refugee Program
Biometrics will make it possible to cross-reference visa/permit applicants against the refugee claimant database and vice-versa. Even within the limited scope of the field trial (October 2006 to April 2007), 12 cases out of 1,482 recorded entries into Canada were found between the visa and refugee streams—a rate of 0.8 percent. Under the auspices of the Five Country Conference, CIC, in partnership with CBSA and the RCMP, began sharing 3,000 fingerprint records per country per year under the High Value Data Sharing Protocol (Protocol) in September 2009. Canada is exchanging bilaterally with the United States, the United Kingdom, and Australia. This initiative covers refugee claimants as well as immigration enforcement cases. To date, the Protocol has yielded positive results, including potential interventions and warrant closures. To highlight some successes, as of May 31, 2010, Canada had a 43 percent match rate with the United States, a 4 percent match rate with the United Kingdom and a 0.1 percent match rate with Australia. Given these successes, development of future systematic biometric immigration information is being explored. This type of biometric matching could increase the quality of evidence available for decision makers at the Immigration and Refugee Board to establish the credibility of refugee claims.

Facilitate Removals
Biometrics will facilitate the removal of individuals who should not be in Canada by linking undocumented foreign nationals to the identity and place of origin stated on their visa application. Of the approximately 23,000 refugee claimants in 2006, 30 percent were without identity or travel documents. Biometrics will also detect previous deportees who apply for a Canadian visa under a different identity, thereby preventing them from returning to Canada.

Ensure Border Security
Biometric verification at the POE will allow CBSA officers to confirm that the individual arriving in Canada is the same one to whom CIC issued the visa/permit abroad. Currently, one of the key vulnerabilities is the inability to ensure that the visa/permit and the genuine holder remain together once the document is issued by CIC. It is this gap that resulted in 523 Canadian visas being used fraudulently by foreign nationals to travel to Canada in 2006. This includes altered and counterfeit visas as well as impostor fraud. The actual extent of the abuse is expected to be much higher than this figure suggests.

Progress Report and Explanations of Variances

In late 2007, CIC sought policy approval for the introduction of biometrics into the Temporary Resident Program, and funding to support this initiative was included in Budget 2008. In March 2009, CIC received preliminary approval for the implementation of the Biometrics Project. The Temporary Resident Biometrics Project is currently one year behind in the planning phase of the project; however, it is anticipated to recover this time during the implementation phase, delivering the project by March 2013.

Industrial Benefits

The Temporary Resident Biometrics Project will improve the safety and security of Canadian citizens. Immigration and the granting of Canadian citizenship are vital to the continued growth and prosperity of Canada. To support the Government of Canada outcomes of strong economic growth and a safe and secure world, a balance must be maintained between the desire to welcome newcomers to Canada and the obligation to protect the health, safety and security of Canadian society. Criminals, terrorists and other known inadmissible persons must not be allowed to enter or stay in Canada.

Fisheries and Oceans Canada

Status Report on Major Crown Projects

Mid-Shore Patrol Vessels

Description

The Mid-Shore Patrol Vessels (MSPV) project will acquire up to 9 Mid-Shore Patrol Vessels for the Canadian Coast Guard (CCG) Fleet - five of the nine MSPV will be used primarily to support the Conservation and Protection Program in the Maritimes, Quebec and Pacific Regions. The other four vessels will be used in a joint program with the Royal Canadian Mounted Police (RCMP) to enhance maritime security along the Great Lakes – St. Lawrence Seaway system. This project serves two purposes:

• Fleet Renewal - the acquisition of conservation and Protecction 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, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Industry Canada; RCMP; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Public Safety Canada; Department of National Defence.

Prime and Major Subcontractor(s)

Prime Contractor	Irving Shipbuilding Inc. P.O. Box 9110, 3099 Barrington Street Halifax, Nova Scotia B3K 5M7 Operating as: Halifax Shipyard
Major Subcontractor	International Contract Engineering, Damen, Lloyd's Register, MTU

Project Outcomes

The MSPV project supports the Fleet Renewal Objectives of the Canadian Coast Guard.

No specific outcomes other than project milestones had been developed for the MSPV project. The Major Crown Projects Directorate of CCG is currently working on the development of a Performance Measurement Framework for 2011-12 in line with changes being undertaken to the DFO Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

CCG had originally planned to procure 12 new Mid-Shore patrol vessels. Following the cancellation of two Requests for Proposal solicitations in 2007 and 2008, CCG successfully issued a third RFP in March 2009. In September 2009, a contract was awarded to Irving Shipbuilding Inc. for the procurement of 9 MSPVs, all that could be maintained within the funding envelope. To meet program requirements, vessel life extensions will be undertaken on 3 existing vessels.

All 2009-10 objectives for the MSPV project were achieved.

Detailed vessel specification and vessel baseline is nearing completion and fabrication of the first of the 9 MSPVs is scheduled to begin in the first half of 2010-11.

Industrial Benefits

Canadian industry will benefit from this project. The RFP requires overall Industrial Benefits equal to 100% of contract value. Regional allocation of industrial benefits is monitored by Industry Canada.

Major Milestones

Major Milestone	Date
Preliminary Project Approval	August 2005
Effective Project Approval	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 issued	March 2009
First Vessel Delivery	Fall 2011
Delivery of final MSPV	Summer 2014

Offshore Fisheries Science Vessels

Description

The Offshore Fisheries Science Vessels (OFSV) project will acquire three OFSV for the Canadian Coast Guard (CCG) Fleet. The OFSV will replace three 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 design phase.

Leading and Participating Departments and Agencies

Lead Department	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Industry Canada; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor	n/a at this time

Project Outcomes

The OFSV project supports the Fleet Renewal Objectives of the Canadian Coast Guard.

No specific outcomes other than project milestones had been developed for the OFSV project. The Major Crown Projects Directorate of CCG is currently working on the development of a Performance Measurement Framework for 2011-12 in line with changes being undertaken to the DFO Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

During 2009-10, the concept design work was finalized and associated Design Instructions and Guidance were developed.

The spring 2009 decision to move from a one stage contract process to a two-stage Design then Build process delayed the OFSV contract award expected for 2009-10. This approach was adopted to increase project management efficiencies within the approved funding envelope and consists of contracting the development of a design with associated construction specifications and cost estimate, then using this information as the basis to advance into the construction contract phase. The design contract is now expected to be awarded in 2010-11.

The OFSV is currently in the design phase. Project milestones have been revised and all vessels are expected to be delivered by 2015.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.

Major Milestones

Major Milestone	Date
Preliminary Project Approval	October 2005
Amended Preliminary Project Approval	November 2006
Effective Project Approval – Target Date	July 2007
Amended Effective Project Approval – to include 4 additional vessels identified in Budget 2007	June 2009
Effective Project Approval and Authority to Contract	Fall 2010
Contract Award	2009
First Vessel Delivery	2011
Delivery of final OFSV	2014

Offshore Oceanographic Science Vessel

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 phase.

Leading and Participating Departments and Agencies

Lead Department	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Industry Canada; Environment Canada; NRCan; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor	n/a at this time

Project Outcomes

The OOSV project supports the Fleet Renewal objectives of the Canadian Coast Guard.

No specific outcomes other than the project milestones had been developed for the OOSV project. The Major Crown Projects Directorate of CCG is currently working on the development of a Performance Measurement Framework for 2011-12 in line with changes being undertaken to the DFO Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

All 2009-10 objectives for the Offshore Oceanographic Science Vessel project were achieved.

During 2009-10, the concept design work was finalized and the Work Scope definition and the associated Design Instructions and Guidance were developed.

The OOSV Project is currently in the design phase and a contract will be issued in 2010 for the development of the detailed design contract. Project milestones have been revised and delivery of the vessel is now anticipated for 2013.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.

Major Milestones

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

Polar Icebreaker Project

Description

The new Polar Icebreaker is expected to be delivered in time for the decommissioning of  the CCGS Louis S. St-Laurent. This new polar icebreaker will help strengthen Canada's Arctic sovereignty and will be able to operate in the Arctic in more severe weather conditions and for a longer period of time - 3 seasons instead of the current 2 seasons.

Project Phase

The Polar Icebreaker Project is currently proceeding in the definition phase.

Leading and Participating Departments and Agencies

Lead Department	Canadian Coast Guard, Department of Fisheries and Oceans
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Industry Canada; Treasury Board Secretariat; Privy Council Office; Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Environment Canada; National Defence.

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor	n/a at this time

Project Outcomes

The Polar Icebreaker project supports the Fleet Renewal objectives of the Canadian Coast Guard, and supports the Government's Northern Strategy.

No specific outcomes other than defined objectives and project milestones have been developed for the Polar Icebreaker project. The Major Crown Projects Directorate of CCG is currently working on the development of a Performance Measurement Framework for 2011-12 in line with changes being undertaken to DFO's Program Activity Architecture and Management, Resources and Results Structure.

Progress Report and Explanations of Variances

All 2009-10 objectives and milestones for the Polar Icebreaker project were achieved.

In 2009-10, following Preliminary Project Approval by Treasury Board, the Polar Icebreaker project activities included completion of the Mission Profile, stakeholder consultations and validation of operational and science requirements. Currently planned for 2010-11 is the development of an in-house conceptual design in preparation for detailed design work to follow.

Industrial Benefits

Canadian industry will benefit from this project. Regional distribution will be determined at contract award.

Major Milestones

Major Milestone	Date
Preliminary Project Approval	June 2009
Design Contract Awards Target Date	2011
Effective Project Approval - Target Date	2013
Contract Award (Construction)	2013
Delivery of Polar Icebreaker	2017

Health Canada

Status Report on Major Crown/Transformational 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 Close-Out Phase: The HICPS Major Crown Project entered the project close-out phase upon implementation of the new Health Information and Claims Processing Services into production on December 1, 2009.

Overview: HICPS supports the delivery of much-needed health benefits for over 830,000 eligible First Nations and Inuit clients. ESI Canada commenced operations in December 2009 with implementation of the new HICPS system. Transition between the previous claims processor and the new Contractor was managed without major impact to Non-Insured Health Benefits' First Nation and Inuit Clients.

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(s)

Prime Contractor	ESI Canada, Mississauga, Ontario, Canada
Major Subcontractor(s)	ESI, IBM 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
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 2009 to March 2011
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. Project Outcomes

The Implementation Phase of the HICPS project was concluded on time and on budget in December 2009. All steps were taken to ensure a seamless transition to Non-Insured Health Benefits clients. Some system adjustments and enrolment of providers continued after system implementation. However, the new HICPS system is successfully processing pharmacy, dental, and MS&E benefits for First Nation and Inuit clients.

The Project has now entered the Close-Out Phase and an evaluation will be completed of the HICPS project and lessons learned. The close-out phase is scheduled to be completed by March 2011.

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

7. Progress Report and Explanations of Variances

HICPS was implemented on December 5, 2009 and transition completed between the two service contracts.

For fiscal 2010-11, the focus of this initiative will be on refinement of the services and the system project evaluation and project close-out.

8. 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 is required to ensure a mandatory and substantial Aboriginal benefits requirement representing direct or indirect benefits to Aboriginal businesses or individuals.

National Defence

Table : Status Report on Major Crown/Transformational Projects

For Fiscal Year 2009-2010

Table of Contents

• AIRLIFT CAPABILITY PROJECT – STRATEGIC (ACP-S))
• AIRLIFT CAPABILITY PROJECT – TACTICAL (ACP-T) )
• ARCTIC/OFFSHORE PATROL SHIP (AOPS))
• ARMOURED PERSONNEL CARRIERS (APC))
• CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM (CCMP) OMNIBUS PROJECT)
• CANADIAN FORCES SUPPLY SYSTEM UPGRADE (CFSSU))
• CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER (CFUTTH) PROJECT)
• CANADIAN SEARCH AND RESCUE HELICOPTER (CSH) PROJECT)
• FIXED-WING SEARCH AND RESCUE (FWSAR))
• HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION (HCM/FELEX))
• INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE (ISTAR))
• JOINT SUPPORT SHIP (JSS))
• LIGHT UTILITY VEHICLE WHEELED (LUVW))
• LIGHTWEIGHT TOWED HOWITZER (LWTH))
• 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))
• WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION (WLAV-LE) 52)

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 Canadian Forces (CF) with the global reach and speed necessary to operate effectively over long distances, as well as to deliver personnel and cargo directly into a theatre of operation, including threat environments.

Project Phase:

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	The Boeing Company, St-Louis, Missouri, USA
Major Subcontractor(s)

Major Milestones

Major Milestone	Date
Synopsis Sheet (Effective Project Approval) (EPA)	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 the fleet has flown in excess of 8,000 flying hours. The project office is currently working on the Implementation Phase of the project. Full Operational Capability (FOC) will be spring 2012 when the infrastructure at Trenton is completed and the Squadron can sustain all Lines of Tasking and all planned mission types as stated in the Statement of Operational Requirement (SOR). The project will close-out after FOC.

Industrial and Regional Benefits (IRBs):

IRBs are equivalent to 100% of the acquisition contract, Boeing's share of the in-service support Foreign Military Sales (FMS) contract value and the value of the engines. (A separate IRB agreement was negotiated with Pratt and Whitney USA for the value of the C-17 engines). The three IRB agreements total $1.9 billion. Several IRB announcements have been made and all regions of Canada are benefiting 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. This project will replace the CF's aging CC-130E Hercules fleet. It will also provide the CF with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.

Project Phase:

Project Implementation: The project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 C-130J-30 aircraft. Contract Amendments for In-Service Support (ISS) and Maintainer Training were awarded December 2009 and February 2010 respectively. Aircraft deliveries will commence in June 2010, with the final aircraft delivered no later than August 2012.

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Industrial Regional Benefits Authority	Industry Canada
Participating Agencies	The Regional Development Agencies

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestone	Date
Revised Preliminary Project Approval (Rev(PPA))	June 2006
Solicitation of Interest and Qualification (SOIQ)	August 2006
Issue of Request For Proposal (RFP)	August 2007
Effective Project Approval (EPA)	December 2007
Contract Award	December 2007
First Aircraft Delivery	June 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:

Canada’s first aircraft will arrive in Canada in June 2010, six months ahead of its original scheduled delivery date. By the end of 2010, Canada expects to have received five aircraft. During 2011, eight aircraft are scheduled for delivery and by August 2012, the remaining four aircraft will have been delivered.

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

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

Industrial and Regional Benefits:

Lockheed Martin Corporation has committed to provide IRBs equivalent to 100% of the eligible contracted value for both the capital acquisition and the in-service support portions, including a 15% requirement for the participation of small and medium business. For the in-service support portion, 75% of the eligible contract value will consist of direct work performed by Canadian companies on these and similar aircraft in international fleets (Global Value Chain). The IRB requirements are administered by Industry Canada, through PWGSC, for the duration of the contract and any amendments.

Arctic/Offshore Patrol Ship (AOPS)

Description:

The Arctic/Offshore Patrol Ship (AOPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to demonstrate sovereignty in Canada's waters, including the Arctic. When the project is complete, the six to eight fully supported AOPS delivered to the CF 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 CF and other Federal Government departments to demonstrate Canadian sovereignty, when and where necessary.

Project Phase:

Definition

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Industrial Regional Benefits Authority	Industry Canada and the regional agencies

Prime and Major Subcontractor(s)

AOPS procurement is expected to proceed with the National Shipbuilding Procurement Strategy (NSPS). The procurement approach has been revised to support draft RFP release as early as Aug 2010 but when the NSPS procurement activity allows. AOPS is an important part of the Government’s shipbuilding strategy, which will create the conditions for the effective and efficient delivery and support of the federal fleet over the long term. The procurement process for these ships is being reviewed to accommodate long-term shipbuilding options that could be considered by Government. Delivery of the first AOPS is expected in 2014 with Initial Operational Capability in 2015.

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval (PPA)	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 (EPA)	TBD
Award of Implementation Contract	TBD
Delivery of First Ship	TBD
Initial Operating Capability (IOC) of First Ship	TBD
Project Complete	TBD

Progress Report and Explanations of Variances:

The project continues to progress steadily since obtaining Preliminary Project Approval (PPA) in May 2007. Treasury Board Secretariat (TBS) granted expenditure authority of $42.8 million (budget year ($BY), full up excluding GST or HST, for Definition Phase. TBS also acknowledged the indicative full up cost of $3,067.4 million ($BY) full-up excluding GST or HST, for Implementation Phase (design build). The AOPS project is currently running on budget. AOPS is expanding on the Definition Phase to produce a design that will meet the requirements, and can be used by the contractor.

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

Project Phase:

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

Leading and Participating Departments and Agencies

Lead Department or Agency	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Industrial Regional Benefits Authority	Industry Canada and the regional agencies

Prime and Major Subcontractor(s)

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

Major Milestones

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

Progress Report and Explanations of Variances:

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

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

In March 2004, TBS authorized $129 million for indoor accommodation of the LAV III to facilitate regular maintenance and training programs, and prevent any deterioration that would result from outdoor storage. Construction of these accommodations is complete in Wainwright and well underway in both Gagetown and Montreal. Construction will start in Petawawa this year and in Valcartier next year. Construction activities are scheduled for completion in early 2012. The project can then close in March 2012.

Industrial and Regional Benefits:

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

Overall Industrial Benefits

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

Canadian Cryptographic Modernization Program (CCMP) Omnibus Project

Description:

The Canadian Cryptographic Modernization Program (CCMP) is a 12-year program (fiscal year 2004-05 to 2015-16) 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 Replacement
• Classified Security Management Infrastructure
• Combat Identification Replacement
• Link Encryption Replacement
• Network Encryption Replacement
• Secure Radio Replacement
• Secure Mobile Environment

Project Phase:

This is an Omnibus Project; some sub-projects are in the Definition phase and others are in the Implementation phase.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

Project / Sub-project Major Milestones	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 – Completed	September 2009
Classified Security Management Infrastructure – Phase 1B Completed	2011
Secure Voice/Telephone Replacement – Completed	2011
Classified Security Management Infrastructure – Phase 1A Completed	2012
Secure Mobile Environment – Completed	2012
Link Encryption – 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 (Identification Friend or Foe) Replacement Completed	2016
Secure Radio Replacement – Completed	2016
CCMP Omnibus Project – Project Close-out	2016

Progress Report and Explanations of Variances:

Fiscal year 2009-10 was the sixth 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 $893.8M 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 in December 2006 and Full Operational Capability in June 2009. This is 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. As of March 2010, no STU-III secure phones remain in use in the Government of Canada.

Classified Security Management Infrastructure Phase 1 completion was moved from 2008 to 2012. Phase 1 was divided into Phase 1A and 1B to reduce the complexity of managing the project.

Combat Identification (Identification Friend or Foe) 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 three milestones have been met. Eighty 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 and Regional Benefits:

There are no IRBs associated with this project.

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

Project Phase:

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

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

Progress Report and Explanations of Variances:

TBS initially approved the CFSSU project with an estimated cost of $292.4 million. TBS approved in April 2000, the de-scoping of certain functionality and an increase of $9.8 million to project contingency funding. In addition, $5 million was approved in order to permit Defence the option of restoring the Distribution Resource Planning (DRP) component. The Implementation Phase of DRP was de-scoped and the project budget remained at $304.1 million.

The CFSSU project has been transferred from implementation to close-out in September 2004. Close-out funding is $3.6 million. In March 2006, the Defence Program Management Board approved the usage of close-out funds for the project; these funds are to be used until fully expended or the work is completed. This project is closed and all close-out funds and related activities have ended as of the end of fiscal year 2009-10.

Industrial and Regional Benefits:

This project includes the following overall IRBs:

Overall IRB's

Region	Benefits
Atlantic Canada	$51M
Québec	$45M
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 Forces, Aerospace Forces, Canadian Expeditionary Force Command (CEFCOM) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. It has replaced three aging helicopter fleets - the CH118 Iroquois, the CH135 Twin Huey and the CH136 Kiowa. The Bell 412CF/CH146 was procured as a single role multi-mission helicopter capable of supporting a majority of the tasks previously undertaken by the fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements to include: the tactical lift of troops; logistical lift; reconnaissance and surveillance; direction and control of fire; aero-medical support; casualty evacuation; command and liaison, and communications assistance. These mission capabilities are employed in support of Defence operational commitments, UN peacekeeping missions, and support to other Government Departments and Agencies, including aid of the civil power.

Project Phase:

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 fiscal year 2010-11.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestone	Date
Contract Award	September 1992
Critical Design Review	April 1993
First Helicopter Delivery	March 1995
Simulator Acceptance	June 1996
Last Helicopter Delivery	December 1997
Project Completion	Fiscal Year 2010-11

Progress Report and Explanations of Variances:

This project received Government approval in April 1992 and Treasury Board Secretariat (TBS) approval in September 1992, with an original budget of $1.293 billion. Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in fiscal year 2010-11 for approximately $200 million less than the initial TBS budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver (RLWR) functionality.

Industrial and Regional Benefits:

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

Overall IRB's

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

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestone	Date
Treasury Board Effective Project Approval (EPA)	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 Explanations of Variances:

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

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

It should be noted that although Effective Project Closure was achieved in September 2004, some work is still ongoing and full completion is not expected before 2013. The milestones still outstanding are tied to a three year Technical Publication Revision Service which is not expected to begin until fiscal year 2010-11, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least an additional year to address.

Industrial and Regional Benefits:

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

Overall IRB's

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

FIXED-WING SEARCH AND RESCUE (FWSAR)

Description:

Fixed-wing SAR aircraft are needed to provide immediate assistance to distress cases within the 18 million square kilometre Canadian SAR area of responsibility. Search and rescue activities are extremely demanding on the CF and their equipment. The Canadian Forces currently uses a mixed fleet of Buffalo and Hercules aircraft to provide FWSAR service to Canadians. The purpose of this project is to replace the CC-115 Buffalo and CC-130 Hercules currently providing the fixed-wing SAR capability from four Main Operating Bases with a fleet of new aircraft.

This replacement project will resolve deteriorating supportability and affordability issues associated with the older airframes, allowing for the continued provision of effective fixed-wing response and immediate assistance to SAR incidents within the Canadian SAR area of responsibility.

Project Phase:

Definition. The FWSAR Major Crown Project will enter the project definition phase as soon as Preliminary Project Approval (PPA) is received from Treasury Board.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	TBD

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	Fall 2010
Effective Project Approval (EPA)	Fall 2011
Contract Award	Spring 2012
First Aircraft Delivery	Spring 2015
Last Aircraft Delivery	Spring 2017
Project Closure	Spring 2019

Progress Report and Explanations of Variances:

The Definition Phase of the FWSAR project will start as soon as Preliminary Project Approval is received from the Treasury Board.

Industrial and Regional Benefits:

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

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

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	February 2005 (FELEX) February 2007 (HCM/FELEX
Refit Procurement Strategy Approval by Treasury Board Secretariat	March 2007
Revised Preliminary Project Approval (Rev(PPA)) (Part 1)	June 2007
Multi-Ship Contracts (MSC) Awarded (Docking Work Periods and 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 (FOC)	January 2018
Project Closure	January 2019

Project Outcomes:

Complete the HALIFAX Class mid-life refits returning the ships to an acceptable material state for the second half of their service lives.

Return all 12 ships to the Operational Authority within Maritime Command by the end of January 2018 having delivered the full operational capability described in the HCM/FELEX Statement of Operational Requirements including:

• all HCM/FELEX ship and combat system enhancements installed and integrated into the ships;
• integration into the combat system of capability enhancements being delivered by other HALIFAX Class modernization projects;
• both Fleet Maintenance Facilities capable of supporting the modernized HALIFAX Class ships;
• all test equipment and special tools required to support HALIFAX Class ships delivered;
• all spares required to support HALIFAX Class ships delivered;
• all trainer modifications complete; and
• all required training completed.

Progress Report and Explanations of Variances:

In September 2008, Treasury Board Secretariat (TBS) granted EPA and Expenditure Authority for the project. The total full-up project value, including GST, is $2,988 million ($BY).

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

The HCM/FELEX project is presently in its Implementation Phase and is currently on schedule and within budget.

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

Project Phase:

Implementation. In support of operations the project delivered equipment in the areas of Command and Control, Unmanned Aerial Vehicles, Weapons Locating Sensors and Electronic Warfare capabilities.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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
Remote Viewing Terminal Unforecasted Operational Requirement (UOR)	L3 Communications, CSW, Salt Lake City, Utah, USA

Major Milestones

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

Progress Report and Explanations of Variances:

Prosecuting the UOR 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 PPA submission approved by TBS in December 2006. National Procurement funding requirements are being identified in the EPA documentation for each of the ten sub-projects. EPAs 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 Tactical Unmanned Aerial Vehicle project was closed in June 2009 and the Acoustic Weapon Locating System and Beyond Line Of Sight communication sub-projects closed in March 2010.

Industrial and Regional Benefits:

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

Joint Support Ship (JSS)

Description:

The JSS will maintain the maritime staff's current naval task group logistic support, while ensuring that the CF has an adequate 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 aging Protecteur class support ships currently in service on the east and west coast.

Project Phase:

Definition.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

	No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval (EPA).

Major Milestones

Major Milestone	Date
Options Analysis	Completed Fall 2009
Treasury Board Approval (Forecast) - Revised Preliminary Project Approval - (PPA)	June 2010
Project Definition Phase Re-commences	Summer 2010
Project Definition Phase Complete	Fall 2012

Progress Report and Explanations of Variances:

In August 2008, the Minister of Public Works and Government Services Canada 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 Proposal (RFP). Among other non-compliances, both bids were significantly over the established budget.

During the August 2008 to September 2009 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 revised PPA from TB by June 2010.

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 ($241.4 million), for use by field force units; and 1,061 Militarized Commercial Off-the-Shelf (Mil COTS) vehicles (GM Silverado) ($65.4 million) for use primarily by the Reserve Force for a total project cost of $306.8 million.

Project Phase:

Implementation.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

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

Progress Report and Explanations of Variances:

The project is in full Implementation. Outstanding issues are Amendment 2 to the SMP production contract and installation of the Mil COTS battery disconnect switch. The amendment to the SMP production contract is required to reflect the costs resulting from Design Change Requests (DCRs), as well as additional Integrated Logistic Support (ILS) publication requirements.

For the Mil COTS battery, a contract valued at $1.71 million (including 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. Installations are on going by local General Motors Corporation (GMC) dealerships. The contract has been amended to extend closure date to 30 June 2010 without any additional funding required.

For the SMP production contract, a total of $19.6 million 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 June 2010, at which time these funds can be released.

An Initial Support Contract (ISC) (valued at $17.9 million including GST) was awarded to Mercedes Benz Canada (MBC) in November 2005 to provide spares, repair and overhaul, 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 $0.77 million) and extended to June 2009 at which time a new "bridging" ISC contract was awarded to MBC in June 2009 (valued at $9.3 million including GST) to allow continued support of the LUVW SMP fleet. A new support contract was awarded to MBC in April 2010. The contract is valued at $35.1 million (including GST) over the next four years with a provision for three optional one-year extensions.

A contract valued at $1.87 million (including GST) for Special Tools and Test Equipment (STTE) was awarded to MBC in November 2008. Delivery for STTE has been completed as planned in September 2009. All spares deliveries were received by March 2010. The Project Management Office (PMO) is now working on certifying that Full Operational Capability (FOC) has been reached and on the close-out process to meet the schedule for project closure on 30 June 2010.

Even with the above mentioned changes, the project is scheduled to close under the allocated funding of $298.4 million. The vehicle fleet has been affected by body cracks and inferior weapons station design and quality issues. To resolve the cracks issue, an agreement was reached with MBC to fix existing cracks, as well as vehicles at risk of developing future cracks. MBC has provided an improved weapons station to address the deficiencies; the solution was implemented in 2009 on a portion of the fleet.

Industrial and Regional Benefits:

The industrial benefits required for Phase 1 were valued at 100% of the contract value. The latest report from Industry Canada indicates that MBC has exceeded the industrial regional benefit goals by $300 million. There are no mandated industrial benefits for the Mil COTS contract. For the Initial Support Contract (ISC), there are IRB requirements valued at 75% of the contract value and Industry Canada reports that MBC is up to date and progressing on its activities. There is an IRB requirement in the current support contract in the amount of 100% of the contract value. It was awarded in April 2010, so MBC is in the early stages of implementing its IRB program.

LIGHTWEIGHT TOWED HOWITZER (LWTH)

Description:

The Lightweight Towed Howitzer (LWTH) project is an element of the act domain in the Canadian Forces (CF). This project will bridge a key facet of the land forces current indirect fire capability deficiency. Specifically, the project will field 25 M-777 lightweight 155mm towed howitzers, each with a Digital Gun Management System (DGMS), and supported by improved ammunition and a modern truck. The 25 howitzers (six were delivered in a three month period ending July 2009 and the remaining will be delivered by July 2011) will augment the 12 M-777 howitzers currently in service. These capability enhancements in terms of lethality, range, precision, mobility and digitization are needed to support future missions and tasks likely to be assigned to the CF.

Project Phase:

Implementation. The LWTH project entered the Implementation Phase with the approval of the Minister of National Defence on 11 January 2010. The project is planning to enter project close-out in December 2012.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	BAE Systems, Barrow-in-Furrow, Cumbria, UK
Major Sub-Contractor	SELEX Sensor and Airborne Systems Ltd, Edinburgh, UK

Major Milestones

Major Milestone	Date
Identification Phase Approval – Identification Phase	January 2008
Preliminary Project Approval (PPA)– Definition Phase	June 2008
M-777 Foreign Military Sale (FMS) Agreement	November 2008
DGMS Contract Award	November 2009
Effective Project Approval (EPA)– Implementation Phase	January 2010
M-777 Support Contract Award	June 2010
Initial Operational Capability (IOC)	July 2011
Final Operation Capability (FOC)	December 2012
Project Close-Out	March 2013

Progress Report and Explanations of Variances:

TBS approved the indicative total project cost of $278.282 million (all costs are $BY including GST) and delegated EPA authority to MND in June 2008. At the same time, expenditure authority of $3.466 million was granted for the Definition Phase, $106.898 million to acquire the M777 (including ancillary equipment and services), and $25.302 million to acquire the DGMS (including support). The project received Implementation Phase approval (EPA) from the MND for the remaining project elements (M-777 Support and ammunition) with a total project cost $277.929 million (all costs are $BY including GST). Cost variance was mainly due to the fluctuations in the US and UK Sterling exchange rates.

The Foreign Military Sales (FMS) Letter of Offer and Agreement (LOA) to procure 25 M-777 howitzers was signed in November 2008.

The Contract Award was signed by the Minister of Public Works and Government Services Canada at the end of November 2009 and valued at £10.081 million (UKP).

The M-777 Support Contract Award is planned to be awarded in the summer of 2010.

Industrial and Regional Benefits:

The IRBs are an integral part of the Lightweight Towed Howitzer project. For the M-777 lightweight 155mm towed howitzer, the original equipment manufacturer has committed to 100% of the FMS agreement value (less the value of the US government furnished equipment) through a combination of direct and indirect IRBs. For the digital gun management system, the original equipment manufacturer has committed to 100% of the contract value in direct and indirect IRBs.

In view of the low value of the M-777 Initial Support contract and the high proportion of parts and labour, Industry Canada has determined that they will not be seeking IRBS. However, Industry Canada will monitor the Department's future Procurement Review Committee/Advisory Committee on Repair and Overhaul process for the in-service Support or long-term support contracts to determine if IRBs are appropriate.

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 (ARVs) and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBT from the Netherlands Government. Phase 2 consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 tanks and armoured recovery vehicles into service with the CF.

Project Phase:

Implementation. The project received PPA from TBS on 29 March 2007 and Effective Project Approval (EPA) on 11 June 2009 for Phase 2. The project is capped at $650 million.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Phase 1
Prime Contractor for ARV upgrades	Rheinmetall Land Systeme (RLS), Germany
Prime Contractor for MBT upgrades	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for loaned tanks	German Government
Prime Contractor for tank purchase	Netherlands Government
Phase 2
Prime Contractor for 20 Leopard 2 A4 ops tanks	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 20 Leopard 2 A6 tanks for return to German Government	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 42 Leopard 2 A4 training tanks	To be determined
Prime Contractor for 8 Leopard 2 ARVs	To be determined

Major Milestones

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 Operating Capability (IOC)	August 2007
Phase 1 - Acquisition of tanks from Dutch Government	December 2007
Letter of Interest	April 2008
Price and Availability	April 2009
Phase 1 – PPA amendment approved by Treasury Board	June 2008
Statement of Operational Requirements Approval	August 2008
Treasury Board Effective Project Approval (EPA) with conditions	June 2009
Phase 2 – Contract to KMW for urgent requirement of 20 Leopard 2 A4 Operational tanks (repair, overhaul and upgrade)	June 2009
Phase 1 – Contract to KMW for replacement in kind tank return to German MoD - 20 x A6 (NLD) tanks modified to German standard	July 2009
Phase 2 – Contract for repair and overhaul of 42 Training tanks	July 2010
Phase 2 – Contract for 8 ARVs	November/December 2010
Full Operational Capability (FOC) – (Phase II)	January 2014
Project Close-Out	January 2015

Progress Report and Explanations of Variances:

1. Treasury Board approved the PPA Amendment on 19 June 2008 allowing the Replacement in Kind concept for the loaned tanks. Canada will retain the loaned German Leopard 2A6 M. In return, the purchased Dutch Leopard 2 A6 will be converted to a German standard and returned to German MoD.
2. EPA was approved by TB on 11 June 2009 supporting the Phase 2 procurement strategy as follows:
   
   
   1. Sole source to the OEM for an urgent requirement to repair and upgrade 20 Leopard 2 A4 in Europe for delivery commencing in September 2010, to replace the deployed Leopard 2 A6M tanks;
   2. Competitive procurement for the repair, overhaul and limited upgrade to 42 Leopard 2 A4 training tanks in Canada;
   3. Competitive procurement for the conversion of Leopard 2 A4 to provide 8 ARV in Canada, and to provide 10 chassis to the Force Mobility Enhancement Project;
   4. Competitive procurement for the associated Integrated Logistics Support including but not limited to parts, training and ammunition.
3. EPA directed that work be done in Canada, for the training tanks and ARVs. The increasing schedule pressure on the deliverables has resulted in the FOC change to January 2014. In addition, cost continues to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities.
   
   The following issues continue to be managed:
   
   
   1. The effort of managing the multiple contracts;
   2. Support to the loaned tanks and ARVs deployed in Afghanistan - twenty Leopard 2 A4 ops tanks are being readied to rotate into theatre as replacements starting in fall 2010;
   3. The requirement to complete work in Canada (for the training tanks and ARVs) and the resulting risk to schedule and cost;
   4. Ongoing sourcing of critical spares to support theatre and production activities;

Industrial and Regional Benefits:

No IRBs were required for Phase 1. For Phase 2, IRBs are a requirement. Bidders will be required to submit acceptable IRB proposals with their bids. The successful contractors will be required to undertake IRB activities in Canada valued at 100% of the contract value. IRB proposals will be evaluated by representatives of Industry Canada and the Regional Development Agencies. Contractors will be required to submit annual IRB reports detailing their achievements, which Industry Canada will review and verify

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 (PWGSC)
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Subcontractor(s)

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

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 (Interim Maritime Helicopters)	November 2010
First Delivery (Compliant Maritime Helicopters)	July 2012
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 6 Interim helicopters starting in November 2010, with delivery of fully compliant 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 second Maritime Helicopter, first aircraft with complete Mission System Hardware installed, underwent its first test flight on July 29, 2009. Defence crews, as part of the Combined Test Force with Sikorsky, began aircraft testing on July 10, 2009. The project is currently running within its authorized budget.

Industrial and Regional Benefits:

The IRBs are equivalent to 107% of the contract value for the capital acquisition and more than 80% of the estimated contract value for the in-service support.

The IRB's

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	$1,943.00	$2,593.0M

Material Acquisition and Support Information System (MASIS)

Description:

The mission of the Materiel 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	Department of National Defence
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments and Agencies	N/A

Prime and Major Subcontractor(s)

Prime Contractor	IBM Canada, Ottawa, Ontario
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: a. Implementation of Complex Contracts; b. Implementation of the MASIS solution to the Navy; c. Operations Support and Maintenance for MASIS; d. Planning and scoping for requirements scheduled to be implemented for the Army.	June 2000
Amended Expenditure Authority (EPA) for Phase 4: a. Investigation of opportunities to progress the implementation of MASIS to the maximum extent possible within the future available Phase 5 funding; b. Management of Operations Support and Maintenance for MASIS (outside MASIS project Expenditure Authority); c. Project was deemed as a Major Crown Project with this approval.	December 2003
Amended Expenditure Authority (EPA) for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army.	June 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 and Regional 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 (CF) in fulfilling a wide range of roles. CF operational experience, particularly in current operational theatres, has highlighted the urgent need for medium-to-heavy-lift helicopters 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 CF’ 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 land staff training on the road to high readiness. The project will acquire a minimum of 15 helicopters, integrated logistic support and other related support elements.

Project Phase:

Implementation.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	The Boeing Company, Philadelphia, Pennsylvania, USA

Major Milestones

Major Milestone	Date
Synopsis Sheet Preliminary Project Approval (SS(PPA))	June 2006
Advanced Contract Award Notice Posted on MERX	July 2006
Effective Project Approval (EPA) 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 Explanations of Variances:

Treasury Board Secretariat (TBS) approved the Preliminary Project Approval (PPA) for the Medium-to Heavy-Lift Helicopter project in June 2006 with an estimated cost of $ 2,022 million. In December 2007, TBS approved a revised PPA for an additional $12 million. The requirement for additional funding is a result of delays associated with ensuring that the appropriate analysis and oversight was conducted. In June 2009, TBS granted Effective Project Approval (EPA) at a substantive cost estimate of $ 2,312 million. A contract was awarded to The Boeing Company June 30, 2009, at a value of $1,156 million (USD). A contract was awarded to CAE on 22 March 2010, at a value of $262.5 million for the Operational Training System Provider. The Medium-to Heavy-Lift Helicopter project is currently on budget. The project is to be completed by June 2016.

Industrial and Regional Benefits:

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

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 billion (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.
  

• Special Equipment Vehicle (SEV) Kits:
  Up to 868 special equipment vehicle kits, with options for an additional 110.
  

Project Phase:

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

One prime contractor will be selected for each project component. Final selection of the prime contractors will occur through Revised Preliminary Project Approvals (Rev(PPA)) for MilCOTS Vehicles, SEV Baseline Shelters and SMP Vehicles followed by EPA for SEV Kitting.
Prime Contractor - MiLCOTS	Navistar Defence LLC, Warrenville, Illinois, USA
Prime Contractor - SEV Baseline Shelters	DEW Engineering and Development ULC, Ottawa, Ontario, Canada

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	June 2006
MilCOTS - Invitation for Bids Posted on MERX	November 2007
MilCOTS – Revised Preliminary Project Approval (Rev(PPA))	December 2008
MilCOTS - First Delivery	June 2009
MilCOTS - Delivery Complete	Fall 2010
SEV Baseline Shelter - Invitation for Bids Posted on MERX	May 2008
SEV Baseline Shelter - Revised Preliminary Project Approval (Rev(PPA))	June 2009
SEV Baseline Shelter - Contract Award	July 2009
SEV Baseline Shelter - First Delivery	Early 2011
SEV Baseline Shelter - Delivery Complete	Fall 2013
SMP - Invitation for Bids Posted on MERX	Early 2011
SMP - Revised Preliminary Project Approval (Rev(PPA))	Summer 2012
SMP - Contract Award	Summer 2012
SMP - First Delivery	Summer 2013
SMP - Delivery Complete	Early 2015
SEV Kitting - Invitation for Bids Posted on MERX	Fall 2010
SEV Kitting – Effective Project Approval (EPA)	Summer 2011
SEV Kitting - Contract Award	Summer 2011
SEV Kitting - First Delivery	Early 2012
SEV Kitting - Delivery Complete	Early 2014
Project Close-out	Fall 2015

Progress Report and Explanations of Variances:

In December 2008, Project Management Office MSVS obtained TB expenditure authority for MilCOTS in the amount of $351.8 million ($BY) plus GST and a Rev PPA for an indicative full-up cost estimate of $1.22 billion ($BY) plus GST for all components of the MSVS project. In June 2009, TB expenditure authority was obtained for SEV Baseline Shelters in the amount of $161.4 million ($BY) plus GST, and a Rev PPA for an indicative full-up cost estimate of $1.24 billion ($BY) plus GST for all components of the MSVS project.

MilCOTS – An Agreement in Principle was reached in August 2008 with the single responsive bidder. Rev PPA and contract approval was received in December 2008. The contract was awarded in January 2009.

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

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

SEV Kitting - A draft SEV Kitting RFP was posted on the project website in December 2009 for industry comment. The final RFP is planned for release in fall 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, a volatile raw material market and fluctuation in foreign exchange rates.

A continuous risk management program has been implemented and efforts to finalize the RFPs for the Implementation Phases of SMP vehicles and SEV Kitting are progressing. At this time, Project Close-Out is anticipated for fall 2015.

Industrial and Regional Benefits:

IRBs equivalent to 100% of the contract value will be required for MilCOTS, SMP and SEV Baseline Shelters. IRBs cannot be obtained for SEV Kitting as the international trade agreements (NAFTA, WTO-AGP) apply.

Military Automated Air Traffic System (MAATS) Project

Description:

MAATS and Transport Canada (now NAV Canada) initiated a national air traffic system project to automate air traffic services. Defence and the CF established the Military Automated Air Traffic System (MAATS) Project to ensure that military air operations continue to function effectively with the integrity of the national system compatibility under all domestic operations. The project directly supports the defence objective of conducting air traffic control operations.

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

Project Phase:

Implementation.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Raytheon Canada Limited, Richmond, British Columbia, Canada NavCanada, Ottawa, Ontario, Canada
Major Sub-Contractors	Hewlett Packard Canada Ltd, Ottawa, Ontario, Canada CVDS, Montréal, Québec, Canada Frequentis Canada Ltd, Ottawa, Ontario, Canada

Major Milestones

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

Progress Report and Explanations of Variances:

TBS initially approved the project with an estimated cost of $179.2 million. The project funding was reduced by $15 million following departmental review. Partial return of funding was approved at the December 2003 Senior Review Board (SRB). Current departmental funding is $169.2 million.

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

Since approvals were received in July 2007, the Phoenix solution is well on its way to upgrading the current Air Traffic Management System capability inclusive of the following sub-systems: the Radar Processor, the Navigational Aids and Meteorological Sub-System (NAMS), the Air Movement Statistics Package and the Flight Data System. Phoenix is based on the proven Radar Processing Display System II (RPDS II) which was certified for Operational Airworthiness. Phoenix is built on standard commercial Off-the Shelf hardware and open source software, thus keeping technical risk low. Installation of Phoenix equipment (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 TBS, will be completed in fiscal year 2010-11.

PMO implemented the last site (Goose Bay) in May 2009 with: 1) NAMS II, 2) Frequentis (voice communication switch) and 3) Control Tower Consoles Revitalization. All sites are now synchronized with same technology and interfaces and the Phoenix environment has been running since 2007 without any downtime or major failure. The Vancouver 2010 Olympics shifted ATESS personnel priorities, delaying the revision of the last REDDS delivery called Flight Data Entry Terminal (FDET II). With SRB endorsement, the PMO plans to devolve FDET II implementation responsibilities to the Director General Aerospace Equipment Program Management (DGAEPM), close the office in March 2010, and close the project in December 2010. In-service Life Cycle Materiel Management (LCMM) support is in place to efficiently manage and co-ordinate the remaining FDET II responsibilities and to assist with project close-out activities.

Industrial and Regional Benefits:

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

IRB's

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

Project Phase:

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

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	August 1999
Effective Project Approval (EPA)	November 2003
Initial Terminal Delivery	Summer 2010
Initial Satellite Delivery	Spring 2012
Terminal Delivery Completed	Autumn 2014
Project Complete	Winter 2017

Progress Report and Explanations of Variances:

The PMSC project is being implemented in two phases. In the completed Phase 1, guaranteed access to satellites was procured under the terms of a 1999 Memorandum of Understanding (MOU) with the United States Department of Defense (DoD) in which Defence participation in the US DoD Advanced Extremely High Frequency (AEHF) system is ensured. Definition studies for the terminal segment were also completed. Under Phase 2, the terminal segment is being procured and will be installed, where appropriate, and tested starting in 2010.

In August 1999, Treasury Board Secretariat (TBS) granted Preliminary Project Approval (PPA) to the PMSC Project, with expenditure authority for the implementation of Phase 1 at an estimated cost of $271 million ($BY) including GST, and granted approval for the Defence to enter into a Military Satellite Communication (MILSATCOM) MOU with the US DoD. The MOU was signed in November 1999.

In November 2003, TBS granted Effective Project Approval (EPA) to the PMSC Project, with expenditure authority for the Implementation of Phase 2 at an estimated cost of $321 million ($BY) including GST. The total cost (including funds approved at PPA) is, currently, estimated at $592 million including GST ($BY) net-of-GST. The project is on budget.

Industrial and Regional Benefits:

Under Phase 1, the US DoD has committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations will be permitted to bid on project work. In Phase 2, the Senior Procurement Advisory Committee (SPAC) endorsed that terminal acquisition and support will be procured through Foreign Military Sales (FMS) with installation done through Defence-managed contracts. IRBs will be sought by Industry Canada at 100% of the 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 13 of 17 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 2010. The remaining associated projects will be completed by project closure in March 2013.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestone	Date
Treasury Board Approval	June 1998
Main Contract Award	July 1998
Initial Support Contract Award	July 1998
Initial Operational Capability (IOC)	April 2006
Full Operational Capability (FOC)	June 2011
Project Close-Out	March 2013

Progress Report and Explanations of Variances:

EPA was granted to the SCLE project in June 1998 at an estimated total cost of $812.0 million ($BY) net of GST. The expenditure ceiling was increased by $84.8 million by TBS in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. The SCLE project is 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 July 2010 and complete this activity in November 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 early 2011 and complete this activity in 2011.
• HMCS Corner Brook is operational and is participating in various exercises and patrols. She will remain operational until mid-2011.
• HMCS Chicoutimi was handed over to Canada in October 2004 and while en-route to Canada, 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 commenced in 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 $200 million 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 $100 million in industrial benefits have taken the form of waivers to provide industrial offsets in the United Kingdom for Canadian companies bidding on defence contracts.

WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION (WLAV-LE)

Description:

The Wheeled Light Armoured Vehicle – Life Extension (WLAV-LE) has addressed deficiencies in command, combat support and combat service support capabilities to ensure that the current fleets of wheeled armoured vehicles are capable of operating in the current and anticipated threat environment. The WLAV-LE improved the mobility, protection and capability of the in-service Bison fleets (primarily composed of Infantry Section Carriers (ISC)) through a life extension and conversion to command and support variants dedicated to the LAV III and LAV-Recce (Coyote) fleets. The following capabilities are being provided in the 2004-11 timeframe:

1. Conversion of the entire Bison fleet of 198 vehicles to 32 Ambulances, 16 Electronic Warfare, 4 Nuclear, Biological and Chemical Defence, 32 Maintenance and Recovery Vehicle, 32 Mobile Repair Team, 82 Command, Control, Communications and Intelligence vehicles;
2. Provision of updated add-on armour packages for operations stock as a result of changes made to existing vehicles, to provide the crew and mission essential equipment with a basic level of protection; and
3. Sufficient Integrated Logistics Support to maintain the fleet for the first two years of operations.

Project Phase:

Just over 94% of the Bison fleet has been converted.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)
Bison Re-Role

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

Major Milestones

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

Progress Report and Explanations of Variances:

Initially, TBS approved the WLAV-LE with an estimated cost of $230.387 million ($BY). In September 2006, TBS granted a reduced expenditure authority to WLAV-LE due to the cancellation of the Armoured Vehicle General Purpose (AVGP) component of the project. This change resulted from the decision taken by Defence in March 2005 to retire the AVGP fleet. The total cost estimate is now $170.3 million ($BY). The planned dates for the Initial Operational Capability (IOC) (August 2008) and Full Operational Capability (FOC)(December 2009) have been deferred as a result of delays experienced in getting contract approval, in completing the prototype build and in achieving a successful first article inspection for the Mobile Repair Team variant. The WLAV-LE is currently running under budget and is to be completed by March 2011.

Industrial and Regional Benefits:

There are no industrial and regional benefits strategy associated with this project.

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

Public Works and Government Services Canada

Status Report on Major Crown/Transformational Projects

Long-Term Vision and Plan for the Parliamentary Precinct

1. Description:

PWGSC is the custodian of the buildings and grounds within the area surrounding Parliament Hill, known as 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, approved in 2001, was developed to help guide the fulfillment of this mandate. 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 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 establishing almost a million square feet of space for parliamentary use 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 1500 parliamentary staff and over a dozen major parliamentary support functions;
   2. Restoration and adaptation for Parliamentary use of the La Promenade building, 1 Wellington Street (former Museum of Contemporary Photography), Wellington building, former Bank of Montreal building and the construction of a new food production facility for Parliament Hill;
   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, including the construction of an infill of the building’s courtyard to accommodate a temporary Parliamentary Chamber.
2. The Recapitalization Program includes a series of urgent building repairs (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 pavilions 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 (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 plans and 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 Area Master Plan; and
   4. Centre Block Renovations.

The LTVP has a reporting framework that enables the Parliamentary Partners and PWGSC to achieve immediate priorities and to set long-term direction. The 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.

West Block Program

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 of the exterior masonry;
• Establishing alternate accommodations for parliamentary use 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:

• Restoration and adaptation for Parliamentary use of space in the former Bank of Montreal building to relocate the Confederation room (Ceremonial Room 200);
• Asbestos removal, interior demolition, and general rehabilitation of the West Block building; and
• Constructing facilities critical to the continued functioning of Parliament during the renovation of the Centre Block, including an infill to the courtyard of the West Block to accommodate chamber activities, and the construction of a security screening facility for visitors entering the building.

The most recent Preliminary Project Approval (June 2005) is $769.2 million (GST excluded). The current schedule calls for MPs and support staff to vacate the West Block in the autumn of 2010 (Phase 1), with rehabilitation work (Phase 2) to start shortly thereafter.  In 2009-2010, much of the work of Phase 1 was completed and planning for Phase 2 well advanced.

Wellington Building

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 1950s by Metropolitan Life Insurance Company. The House of Commons has been the major occupant since the Crown expropriated the building in 1973 for government and parliamentary use. Renovations of the building are required to address health and safety issues, replace obsolete building systems and meet building code requirements, including seismic reinforcement. The building will be completely vacated during the renovations. This project is a key enabler of the Long Term Vision and Plan for the Parliamentary Precinct, as it will provide interim accommodation for Senate and House of Commons Committee Rooms and Offices for Parliamentarians during the restoration of the East and Centre Blocks. 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 interior space. Construction started as planned in spring 2010 and is targeted for completion in 2015. The current total cost estimate is $425.2 million (GST excluded).

2. Project Phase:

National Project Management System (NPMS) Reference

West Block Program

West Block Rehabilitation and Infill: Project Delivery (Design)

La Promenade Building: Project Delivery (Implementation)

Food Production Facility: Project Close-out

Former Bank of Montreal: Project Delivery (Design)

1 Wellington Street: Project Delivery (Implementation)

North Towers Restoration: Project Delivery (Implementation)

West Block Investigations: Project Delivery (Implementation)

Wellington Building

Wellington Building: Project Delivery (Design)

3. Leading and Participating Departments and Agencies

Lead Department	PWGSC
Contracting Authority	PWGSC
Parliamentary Partners	Senate of Canada, House of Commons, Library of Parliament
Participating Departments	The National Capital Commission, the Federal Heritage Buildings Review Office and the Royal Canadian Mounted Police

4. Prime Contractors and Major Sub-Contractors

West Block
Prime Contractor	The West Block building rehabilitation and infill is a joint design venture of ARCOP/FGM, architects - Montreal, Quebec. The La Promenade building renovation is being designed by KWC Architects, Ottawa, Ontario. The 1 Wellington Street renovation is being designed by DFS Architects, Montréal, Quebec. The former Bank of Montreal building is being designed by NORR Limited Architects and Engineers, Toronto, Ontario.
General Contractors	The La Promenade building rehabilitation is being carried out by Pomerleau - General Contracting and Construction Management, Saint-Georges, Quebec. The West Block North Towers Restoration is being carried out by Verreault, Montreal, Quebec. The 1 Wellington Street renovation is being carried out by PCL Constructors Canada Inc., Ottawa, Ontario.
Wellington Building
Prime Contractor	Design consultant for the Wellington renovation project is NORR Limited, Architects and Engineers, Toronto, Ontario.
General Contractor	Abatement, interior demolition and seismic upgrading of the Wellington Building is being carried out by PCL Constructors Canada Inc., Ottawa, Ontario.

5. Major Milestones

Milestone	RPP 2009-2010	DPR 2009-2010
LTVP
Memorandum to Cabinet - Update on the LTVP for the Parliamentary Precinct	Completed - July 2002	Completed - July 2002
Memorandum to Cabinet - LTVP for the Parliamentary Precinct – Update	Completed - May 2005	Completed - May 2005
Memorandum to Cabinet - The Long Term Vision and Plan for the Parliamentary Precinct - Update 2007	Completed - June 2007	Completed - June 2007
West Block
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)	2010	2010
La Promenade swing space completion	2010	2010
MPs vacate West Block	2010	2010
Major construction start	2010	2010
Major construction completion	2020	2018
Wellington
Preliminary Functional Program Completed	July 2007	July 2007
Revised Preliminary Project Approval and Phase 1 Effective Project Approval	March 2008	March 2008
Consultant Contract Award	August 2008	August 2008
Final Functional Program	January 2009	January 2009
Phase 1 Construction Start	2010	May 2010
Phase 2 Effective Project Approval	2010*	2011*
Phase 1 Construction Completion	2012	2012
Phase 2 Construction Start	2012*	2012*
Phase 2 Construction Completion	2015	2015

^*Subject to additional funding

6. Project Objectives

	Project objectives (expected results)	Performance indicators	Project outcomes (performance summary)
Long Term Vision and Plan for the Parliamentary Precinct	Parliamentarians have safe, modern facilities that support their work and Parliament Hill is restored as the cultural centre of Canada's federal government, to the benefit of all Canadians	Under the LTVP First Five-year Program, 2007-2012, 90% of projects are to be delivered on-time, on-budget and on-scope	Status:  Of the projects completed in 2009-2010, all were on-time, on-budget and on-scope.

7. Progress Report and Explanations of Variances

Progress Report

As noted in the 2009-2010 Annual Report to the Treasury Board Secretariat on the LTVP, within the Major Capital Program, all projects are on track, on budget and on scope.  The following projects were successfully completed in Fiscal Year 2009/10: The Food Production Facility, which is fully operational; the relocation of Parliamentary Security Service Communication to the Confederation Building; and the relocation of the Trade Shops to 2086 Walkley Road. Additional smaller relocations occurred successfully for the e-printing services, security administration, curatorial services, laundry services, the health unit, communications, the Ethics Commissioner and the maintenance support services unit.

At the end of this reporting period, the major projects were also all on schedule and on budget, with construction projects for La Promenade, the North Towers Restoration and the Rideau Committee Rooms at 1 Wellington Street are all on track.  In addition, the concept design of the West Block’s courtyard infill received endorsement from the National Capital Commission and the House of Commons, and PWGSC awarded a major construction contract for asbestos abatement, interior demolition and seismic upgrading of the Wellington building.

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 establishing of key buildings for parliamentary use to enable vacating West Block so it can be renovated. Work has been initiated and includes:
   • 119 and 131 Queen Street – relocation project successfully completed;
   • La Promenade Building – completed interior demolition and commenced renovation in fall 2008.  Project is on schedule for completion fall 2010;
   • Food Production Facility – project completed 6 months ahead of schedule and was under budget. Project will attain LEED Gold sustainability rating, exceeding LEED Silver target;
   • Former Bank of Montreal Building – continued to finalize schematic design for the building addition and initiated Design Development for the existing building; 
   • 1 Wellington Street (former Museum of Contemporary Photography)  - construction began fall 2009 and is scheduled to be completed fall 2010.  The project is anticipated to be delivered on time and within budget;
   • West Block Building Rehabilitation – continued to advance Concept design for the courtyard infill and construction documents for the heritage building to allow construction to commence when the building is emptied in fall 2010; 
   • West Block - North Towers Restoration project – advanced construction on masonry, copper roofing and seismic reinforcement.  Project is scheduled for completion in spring 2011;
   • West Block Investigations Program – continued monitoring temperature and humidity readings at specific locations; continued with Courtyard Masonry investigations, and completed phased II of West Block’s geotechnical investigation; and
   • Wellington Building – completed Pre-Design Report, Functional Program and Schematic Design Report and the Wellington Building was emptied at the end of March 2010.  Project is proceeding according to schedule with Effective Project Approval funding in place, sufficient to advance to the completion of contract documents for second phase construction. 
2. The Recapitalization Program continues to focus on a series of urgent building repairs (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 – Request for Proposal for design work for the ventilation towers rehabilitation;
   • East Block - construction documents prepared for the Northwest Towers Rehabilitation;
   • Confederation building – contract being put in place to initiate design work; and
   • Grounds – worked on design for the North Perimeter Wall.
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 – feasibility study for the construction of a new facility completed;
   • Security & Visitor Services Facility – Phase I of feasibility analysis completed;
   • West Sector Area Master Plan – drafted terms of reference to initiate master plan; and
   • Immediate Security Measures – completed planning phase for bollards and security gates.

Variances of the Major Milestones:

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, relocation of committee rooms into the former Museum of Contemporary photography at 1 Wellington Street will allow this function to be moved out of the West Block 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. Overall, this strategy has allowed the complete emptying of the West Block to occur four years earlier than initially planned and its completion to occur two years earlier than planned.

8. Industrial Benefits

West Block Program

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 private-sector jobs will be generated by the implementation of the West Block Renovation Program.

Wellington Building

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 5,800 private-sector jobs will be generated by this project.

9. Summary of Non-recurring Expenditures

Project	Original Estimated Total Cost	Revised Estimated Total Cost	Actual Cost Total	2009-10
				Main Estimates	Planned Spending	Total Authorities	Actual	Expected date of close-out
Ottawa - West Block Program	769.2	769.2	167.7	70.6	40.8	280.4	70.6	2018/2019
Ottawa - Wellington Building - Rehabilitation	452.2	425.2	18.6	9.7	9.8	101.4	9.7	2015/2016

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 became eligible to retire in 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 Public Service Superannuation Act 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	Completed in January 2010
Release 2.0 - Implementation of software functionality related to the administration of Contributor accounts and Pension Benefits Division Act/ Centralization of services related to Pension Benefit and Survivor Pension Entitlements and Employer Support	October 2010
Release 2.5 - Implementation of software functionality related to the administration of Service Buyback and Leave Without Pay / Centralization of Leave Without Pay services	June 2011
Release 3.0 - Implementation of software functionality related to the administration of Annuitant accounts and accounting	March 2012

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 March 2012.

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	Public Works and Government Services Canada

4. Prime and Major Subcontractor(s)

Prime Contractor	HP Enterprise Services (formerly EDS Canada Inc.) 99 Bank St., 6th Floor, Ottawa, Ontario K1P 6B9
Major Subcontractor(s)	James Evans & Associates (JEA) 4th floor, 844 Courtney St. Victoria, British Columbia V8W 1C4 Vangent Canada Limited (formerly Pearson Canada Solutions) 169 Colonnade Road, Nepean, Ontario K2E 7J4 Oracle Canada Inc. 50 O'Connor St., Suite 1301, Ottawa, Ontario K1P 6L2

5. Major Milestones

Major Milestone	Date
Project Definition Phase (from Preliminary Project Approval to Effective Project Approval):
Preliminary Project Approval for completion of Project Definition	May 22, 2004
Release of draft Request For Proposal (Completion: May 2004)	May 25, 2004
Consultations with vendors (Completion: July 2004)	July 2004
Release of final Request For Proposal (Completion: September 2004)	October 22, 2004 (Release of Request For Proposal 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 Treasury Board 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. Treasury Board 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 CPSDP)
Implementation Phase (Effective Project Approval to Close-Out):
Phase 5 – Effective Project Approval 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)	Basic Case Management completed December 15, 2008 Interactive Voice Response completed February 2, 2009 Enhanced Case Management completed December 14, 2009 Imaging completed January 25, 2010
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 Treasury Board Submission for Effective Project Approval.

6. Project Outcomes

The Pension Modernization project will renew the public service pension administration systems and business processes in order to achieve the following objectives:

1. Sustainability – Ensure the ongoing sustainability of the Government of Canada’s pension administration services and systems through the replacement of outdated legacy systems and the provision of automation and web capabilities needed to enable the centralization of pension services delivery.
2. Accountability – Strengthen accountability, governance, and stewardship of pension administration and resources to achieve and maintain greater operational efficiency.
3. Measurable Results – Ensure the provision of accurate, consistent and timely processing of all transactions and payments.
4. Streamlined Business Processes – Re-engineer and streamline business processes to improve effectiveness and provide a seamless information flow.
5. Client Focus – Provide clients with value-added, best-practice services and reporting that offer flexible access and up-to-date information by leveraging the new system’s capabilities to adopt modern service delivery methods and provide industry standard pension administration services to all pension plan members, pensioners and employers.

7. Progress Report and Explanations of Variances

Effective Project Approval was obtained in June 2007. After 3 years of implementation activities, the project is within budget and implementation is expected to be completed in fiscal year 2011-2012, as planned.

• 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 - In January 2010, the project completed its second technology release, as well as the centralization of plan enrolment and orientation services. Pension administration made an important step towards paperless case processing with the implementation of Document Imaging capabilities in the Cheque Redemption and Control Directorate in Matane, Quebec. Scanned images of mail, fax and email case documents and forms are now immediately available to staff in Matane as well as to Pension Centre staff in Shediac. In addition, this release enhanced Case Management functionality in the Pension Centre and expanded the use of the new tools to approximately 600 users.
• Release 2.0 - Systems and processes to administer active member accounts (including the calculation of estimates) and Pension Benefits Division: Activities for this release began in January 2008, as planned. Design and development activities for this release have been completed and testing activities are in progress. In addition to the carry over of delays with previous releases, this release has incurred a delay of four months as a result of increased technical complexity and limited resource capacity. The delay has been reduced by three weeks and completion is currently planned for October 2010. There is no expected impact on the project’s completion date.
• Release 2.5 - Systems and processes related to Service Buyback and Leave Without Pay. The implementation of Release 2.5 functionality began in September 2009 and design activities are due to be completed in September 2010. In addition to the carry over of delays from previous releases, this release has incurred a four month delay due to increased complexity and changes resulting from change requests. Completion is now expected in June 2011. There is no expected impact on the project’s completion date.
• 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 March 2012.
• Final project closeout is expected to be completed in March 2012.

8. Industrial Benefits

A multi-million dollar contract has been awarded for the commercial off-the-shelf software products, as well as for the implementation of the new systems and business processes, support services and ongoing maintenance. The products 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, HP Entreprise Services (formerly EDS Canada), to whom the contract was awarded. The implementation is being conducted in several phases over a period of approximately four and a half years (July 2007 to March 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

Status Report on Major Crown/Transformational Projects

Real Time Identification (RTID)

Description:

The Real Time Identification (RTID) Project is a re-engineering of systems and processes used for fingerprint identification, civil clearances and criminal records management. RTID 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. The following are the end state response times for RTID:

• Two hours for all criminal Ten Print searches (improved from six weeks)
• 24 hours for all criminal record updates (improved from nine to 12 months)
• 24 hours for all latent (improved from six weeks)
• 72 hours for all civil services (improved from five months )

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 the 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 Forensic Science & Identification Services (FS&IS) of Policing Support Services (PSS). The Chief Information Officer (CIO) was appointed as Project Leader responsible for achieving the technology improvements associated with this initiative.

Project Phase:

The project was initiated in 2004 and subsequently separated into two major phases. Phase 1 modernized the civil clearance process, implemented a new Automated Fingerprint Identification System (AFIS), and developed 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 closed-out in 2008.

The scope of Phase 2 includes modernizing the processes related to the management and updating of the criminal records.

Leading and Participating Departments and Agencies

Lead Department	Royal Canadian Mounted Police (RCMP)
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Public Safety Citizenship and Immigration Canada Correctional Services Canada Canada Border Services Agency Transport Canada Federal Bureau of Investigation Canadian Law Enforcement Agencies

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

The Senior Project Advisory Committee (SPAC) is a senior level committee of RCMP, Public Safety Canada 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 Public Safety committees.

RTID will be used across Canada and in all jurisdiction levels. Stakeholder involvement is required to ensure the system is useful for all and does not hinder or contravene regulations.

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)	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

Phase 2 has been contracted on a fixed-price basis to deliver multiple components. A Request for Proposal (RFP) was issued and a contract was subsequently awarded in January 2008 to Fujitsu Consulting (Canada) Inc. This portion represents Phase 2 of RTID.

Major Milestones

Major Milestones – Phase 2	Date
Effective Project Approval (EPA) 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
Phase 2 – Release 2 Scope Validation	October 2009
Release 1.1 in Production	January 2010
Independent Review	February 2010
Options Analysis	June 2010
Options Analysis Implementation Plan	August 2010
Amended Effective Project Approval submitted	Fall 2010

Project Outcomes

Project Outcomes include:

• Time to process civil, criminal and refugee Ten Print submissions reduced;
• Time to process latent crime scheme searches reduced;
• Number of latent identifications increased;
• Time to process updates to criminal records reduced; and
• Overall identification and criminal records services improved.
  

Progress Report and Explanations of Variances

The RTID Project is within the initial budget approved by Treasury Board (TB) of $129.7M ($136.5M including GST), but has a schedule variance compared to the original baseline in 2004. This schedule variance was caused by a series of factors.

As previously reported, RTID Phase 1 was closed-out from an information technology (IT) perspective in September 2008, 18 months later than previously planned. This schedule and scope variance has been carried over to Phase 2. Phase 2 was planned to be completed by July 2011, but is now being re-evaluated. Factors for this schedule variance include the Phase 1 delay due to the complexities of the system and the procurement process for the Phase 2 fixed-price contract, which was awarded in January 2008.

During the summer of 2009, Treasury Board Secretariat’s (TBS) Chief Information Branch (CIOB) launched a new committee to review Major Crown Information Technology (IT) enabled projects and report to TB Ministers twice per year on the health of such projects. This new Executive Project Oversight Committee (EPOC) recommended that the RCMP conduct an independent review of the RTID Project to help determine the project’s challenges, issues and way forward prior to submitting an amended EPA. The RCMP acted on this recommendation and a report was delivered to the RCMP in February 2010.

The review identified challenges and issues that need to be addressed to ensure that the vision and business benefits can be realized to the fullest. Based upon the review’s recommendations, the RCMP will proceed with an Options Analysis to identify the best strategy to move forward.

Following the Options Analysis, the RCMP will re-baseline the project in order to submit the EPA amendment.

Industrial Benefits

Not applicable.

Transport Canada

Status Report on Major Crown/Transformational Projects

Description:

Canada-U.S. Bi-National Transportation Partnership planning new Detroit River International Crossing (DRIC), composed of:

• Transport Canada
• U.S. Federal Highway Administration (FHWA)
• Ontario Ministry of Transportation (MTO)
• Michigan Department of Transportation (MDOT)

The project is a U.S./Canadian, I-75 to Highway 401, end-to-end solution consisting of five components: a new international crossing; the Canadian customs plaza; the U.S. border inspection plaza; the interchange between the U.S. bridge/plaza and Interstate 75; and the highway connector between Canadian bridge/plaza and Highway 401.

It is the Partnership's intention to seek a public-private partnership (P3) for the bridge and plaza portion of project.

The Bridge

The new Detroit River crossing will be a six-lane bridge that will provide three Canada-bound lanes and three U.S.-bound lanes. The new crossing will accommodate future travel demand, both in terms of providing capacity and flexibility to stream traffic on the crossing to improve border process (e.g. designated Nexus/fast lane).

The new crossing will be constructed to link inspection plazas on the Canadian and U.S. sides of the Detroit River, and will be a key component of the new end-to-end transportation system that will link the existing Highway 401 to the U.S. Interstate system. The crossing will consist of both a main bridge that will span the width of the Detroit River and designed to provide navigational clearances that meet U.S. and Canadian requirements, and approaches to the main bridge that will connect to plazas in both Canada and the United States.

Selection of the bridge type will be made during subsequent design phases of this project and will not require piers to be placed in the Detroit River.

Border Services Plaza

In Canada, border inspection plaza alternatives were developed in consideration of the need to provide improved border processing facilities to meet future travel demand and security requirements at the border crossing. The new plaza will be designed to serve the future (2035 and beyond) travel demands at the border crossing. Initial construction of the plaza may not include the fully developed plaza, as the plaza may be developed in stages. The initial construction of the plaza will be such that future expansion will be possible by way of constructing additional inspection or tollbooths.

The plaza was developed in consultation with Canada Border Services Agency and provides sufficient area for primary inspection lane booths and on-site secondary inspection of people and goods. The plaza also allows for dedicated Nexus and fast lanes and provides for a substantial improvement of border crossing processing capabilities.

The plaza will be situated within the Brighton Beach Industrial Park; bounded by the Detroit River, Chappus Street, Ojibway Parkway and Broadway Street. The plaza includes: total plaza area of 202 acres (72.8 hectares); total of 29 inbound inspection lanes; total of 103 secondary inspection parking spaces for commercial vehicles; nine toll collection lanes; and storm water management features to control quality and quantity of runoff rain water.

Ontario Access Road

The new access road will be a controlled access highway connection approximately 11 kilometres long located between the Border Services Plaza and the provincial highway network. The connection is a six-lane urban freeway involving interchanges, grade separations, road closings and the use of service roads. The connection includes a combination of below-grade, at-grade, and above-grade segments and eleven short-tunnelled (or covered) sections. The width of the right-of-way varies and where possible, existing rights-of way will be utilized. Along the corridor, the maximum width of the new right-of-way, not including the existing right-of way, is approximately 300 meters.

Ontario is responsible for the delivery of the Windsor-Essex Parkway, which will connect Highway 401 with the new border inspection plaza and bridge. The province is in the midst of the procurement process and on October 8, 2009, announced a shortlist of three qualified bidders to move to the request-for-proposal stage.

The Rationale for the Project:

Windsor-Detroit is the busiest land border crossing in North America:

• $130 billion (2006 Canadian dollars) of two-way surface trade.
• 28% of total Canada-U.S. trade.
• Consists of four crossings: Windsor-Detroit tunnel, Ambassador Bridge, truck ferry and Canadian Pacific Railway tunnel.
• Ambassador Bridge alone handles 99% of Windsor-Detroit truck traffic.
• In recent years, there have been increased traffic delays due to heightened security checks at the U.S.– Canada border. Inefficiencies at the border crossing directly affect costs; thus affecting abilities to compete internationally.
• Truck Traffic is expected to triple and vehicle traffic to double over the next 30 years.

Project Phase:

On December 3, 2009, the federal environmental assessment for the new bridge, customs plaza and access road to the bridge – the Windsor-Essex Parkway - was approved. The Province of Ontario commenced some advance construction of the Windsor-Essex Parkway in early 2010, while also advancing its procurement process for the remainder of the Parkway project.

Leading and Participating Departments and Agencies

Lead Department	Transport Canada
Contracting Authority	Deloitte
Participating Departments	Canada Border Services Agency, Public Works and Government Services Canada, Department of Fisheries and Oceans, Environment Canada

Prime and Major Subcontractor(s)

Prime Contractor	Deloitte 181 Bay Street, Suite 1100, Toronto, ON, M5J 2V1 Canada Direct 416-643-8382 | Fax 416-601-6690
Major Subcontractor(s)	Investment Grade Traffic & Revenue Forecast: Wilbur Smith Associates 9500 Arboretum, Suite 360, Austin, TX, U.S.A., 78759 Air Quality Advisor: Stantec 100 - 401 Wellington Street West, Toronto, ON, M5V 1E7 Cost Consultant: Davis Langdon 1717 Arch Street, Suite 3720, Philadelphia, PA, U.S.A., 19103 Bridge Technical Advisor: Delcan 625 Cochrane Drive, Suite 500, Markham, ON, L3R 9R9

Major Milestones

Major Milestone	Date
1. Environmental Assessment launched with 15 options considered.	February, 2005
2. Options narrowed to 3 potential crossing locations, 3 potential plaza locations and 5 potential access road designs.	March, 2006
3. Announcement of the technically preferred Ontario Access Road.	May 1, 2008
4. Announcement of the technically and environmentally preferred alternative for the crossing and plaza locations.	June 18, 2008
5. U.S. Final Environmental Impact Statement published for final comment.	December 5, 2008
6. Final Ontario Environmental Assessment Report submitted to the Ontario Ministry of the Environment / Canadian Environmental Assessment Final Screening Report submitted to the Canadian Environmental Assessment Agency.	December 31, 2008
7. U.S. Record of Decision.	January 14, 2009
8. Approval of Ontario's Environmental Assessment.	August 24, 2009
9. Approval of Federal Environmental Assessment.	December 3, 2009

Project Outcomes

The beneficiaries of the Detroit River International Crossing will be both the Canadian and United States economies and all users of the new bridge.

Progress Report and Explanations of Variances

Project Approvals

• Approval and necessary authorities were provided in December 2006, to continue advancing the development of a new Detroit River crossing for the Windsor-Detroit Corridor.
• The March 2007 Federal Budget supported the development of a new Detroit River Crossing for the Windsor-Detroit Corridor and provided $10 million over three years for this purpose.
• The Detroit River International Crossing project has been identified as a Major Crown Project as the total value is beyond the $100 million threshold. The entire project cost for Canada was estimated at $2.01 billion. Preliminary Project Approval to provide authorization to expend resources to fully define the Detroit River International Crossing Project was sought.
• Approval to continue to advance the development of a new Detroit River Crossing for the Windsor-Detroit Corridor was provided in December 2007.

Property Acquisition

• In June 2009, expenditure authority approvals were provided for Phase I implementation of the Detroit River Crossing Major Crown Project for the acquisition and implementation of infrastructure projects related to the first of two groups of properties, for the Canadian-half of the new international bridge and its Canadian customs plaza, at a substantive cost of $60.9 million inclusive of GST of $2.9 million.
• On July 20, 2009, the Government of Canada announced that it purchased 94 acres of land from the City of Windsor for $34 million for the new Canadian inspection plaza and Canada's portion of the six-lane bridge. This purchase represents the largest single block of land needed for the new crossing and plaza. TC, with Public Works and Government Services Canada (PWGSC), is in active negotiations with property owners to acquire the remaining properties required for the bridge and plaza.
• On October 19, 2009, TC acquired 5 parcels of land (1.2 acres) from James Sylvestre Developments Ltd. TC and PWGSC acquired on March 16, 2010 an additional 5 parcels of land (1.1 acres) from two individual property owners. TC is in active negotiations with the four remaining individual property owners to acquire the remaining properties for the Canadian customs plaza.
• Discussions and studies that were to be completed for TC to have substantive costs for the acquisition of four industrial properties and for the necessary utility relocation submissions have taken longer than originally anticipated. Although these studies are currently underway and negotiations with the utility and industrial owners are progressing well, these delays meant that TC will be returning to Treasury Board in Spring 2011.

Project Progress

• In August 2009, the Ontario Minister of the Environment approved the environmental assessment for the Windsor-Essex Parkway. The Canadian environmental assessment (EA) for DRIC was approved on December 3, 2009 by the Responsible Authorities (Transport Canada (TC), the Department of Fisheries and Oceans and the Windsor Port Authority).
• While important milestones were achieved in 2009 for the DRIC project, including the approval of the requisite environmental assessments in both countries, future progress on the new crossing is being threatened by multiple legal and trade challenges as well as the uncertainty of project approval in Michigan.
• On September 30, 2009, the Conference Committee of the Michigan Legislature (House and Senate) agreed that the Michigan legislature fully adopt or reject authorizing legislation by June 1, 2010, to construct a new crossing jointly and in agreement with Canada; to create an authorized tolling authority; and to create a public-private partnership.
• On April 29, 2010, the Michigan Department of Transportation presented a report to the Michigan Legislature responding to the legislative requirements. As well, Michigan Governor Jennifer Granholm read into the Legislature record a letter from Minister Baird stating that the Government of Canada is prepared to offer to increase its financial participation up to a maximum of US $550 million, for project components in Michigan that would not be funded by the public-private partnership or the United States Government.
• The Transportation Committee of the Michigan Legislature passed the Bill on April 29, 2010. The Bill was passed by the full House on May 26, 2010 and has been forwarded to the Senate for deliberations and decisions.

Industrial Benefits

The investment in new border infrastructure will result in a number of positive economic impacts. Recently conducted studies concluded that the direct and indirect (e.g. materials, equipment, services, etc.) impacts of the entire border infrastructure project will lead to the creation of approximately 23,000 jobs; including approximately 13,000 direct, and 10,000 indirect employment opportunities. This is particularly noteworthy in that Statistics Canada has reported that the Windsor-Essex region has maintained one of the highest unemployment rates in Canada. Ancillary benefits of these jobs are expected to result in increases in consumer spending, as personal income and company profits improve in the region.

Additionally, the project will provide significant opportunities for local businesses to participate in construction related aspects of the project's implementation.

Transportation

The vast majority, 62%, of Canadian and U.S. bi-lateral trade crosses our shared border by land. Each day, almost 36,000 trucks cross the Canada-U.S. border, close to one-third (12,000 trucks) of those at Windsor-Detroit. This project will improve not only the efficiency of the border crossing in the region, but will also provide direct highway connections, thereby reducing costs associated with shipping, and greenhouse gas emissions and other pollutants resulting from idling vehicles.

Over the next 30 years, trade between Canada and the U.S. is projected to increase. Under high-growth scenarios, cross-border traffic demand could exceed the capacity of the present border crossings in the Detroit River area as early as 2015.

Economic

Given the significant interdependency of the Canadian and American economies, there is nothing more important to exporters and importers on both sides of the border than being able to ensure that traffic at the border flows efficiently and that the international supply chain remains strong.

Businesses from coast-to-coast in Canada and the United States depend on a reliable and secure transportation network. Manufacturing production depends heavily on the fast and predictable trucking of components, parts and finished products across the border, particularly between Windsor-Detroit.

It is estimated that the direct and indirect impact of the entire border infrastructure project on the province's GDP will be $1.6 billion. Additionally, utilizing Ontario's two-thirds attribution ratio, it is expected that approximately 15,000 total jobs will occur in the Windsor-Essex Region, while contributing an estimated $587 million to the GDP of the Windsor-Essex region.

Security

The Bi-national Partnership is working with border inspection agencies in both countries to ensure that the proposed border processing facilities meet future travel demand and their security requirements at the border crossing. The plazas will be designed to serve future (2035 and beyond) travel demands. These new plazas are being developed in consultation with the Canada Border Services Agency and the U.S. Department of Homeland Security, Customs and Border Protection Branch, to provide sufficient areas for primary inspection-lane booths and on-site secondary inspection of people and goods. The plaza designs will allow for dedicated Nexus and fast lanes and will provide for a substantial improvement of border processing capabilities including areas for permanent gamma ray inspection equipment.

With almost $2 billion (CDN) daily in cross-border trade with the United States, keeping the trade system open and flowing efficiently is critical to ensuring both countries economic prosperity. It is equally critical to protect the border against potential threats to our health, security and economy. Redundant infrastructure will help keep the border open in case of incidents at other crossings.