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2009-10
Departmental Performance Report

National Defence

Supplementary Information (Tables)

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Table of Contents

• Sources of Respendable and Non-respendable Revenue
• Status Report on Projects operating with specific Treasury Board Approval
• Status Report on Major Crown Projects
• Details on Transfer Payments Programs
• Green Procurement
• Response to Parliamentary Committees and External Audits
• Internal Audits and Evaluations

Sources of Respendable and Non-Respendable Revenue

Respendable Revenue

Program Activity ($ thousands)	Actual 2007-08	Actual 2008-09	2009-10
			Main Estimates	Planned Revenue	Total Authorities	Actual
Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces
Recoveries from Members	122,317	129,038	135,103	91,781	140,156	140,156
Recoveries from OGDs	5,613	5,974	4,382	4,206	7,523	7,523
Recoveries from Other Governments/UN/NATO	837	605	950	47,194	5,446	5,446
Other Recoveries	30,874	42,508	25,879	23,134	30,213	30,213
Subtotal	159,641	178,124	166,314	166,314	183,338	183,338
Conduct Operations
Recoveries from Members	2,185	2,394	1,390	1,668	6,498	6,498
Recoveries from OGDs	513	543	278	389	1,940	1,940
Recoveries from Other Governments/UN/NATO	17,530	22,184	17,622	18,411	22,825	22,825
Other Recoveries	1,262	4,214	2,133	955	2,557	2,557
Subtotal	21,491	29,335	21,423	21,423	33,820	33,820
Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values
Recoveries from Members	570	519	500	477	802	802
Recoveries from OGDs	7,208	10,495	5,678	9,150	7,567	7,567
Recoveries from Other Governments/UN/NATO	199,000	227,398	185,335	164,963	204,798	204,798
Other Recoveries	16,218	3,893	3,664	20,587	2,267	2,267
Subtotal	222,996	242,305	195,177	195,177	215,434	215,434
Internal Services
Recoveries from Members	10,253	10,390	10,339	8,483	10,565	10,565
Recoveries from OGDs	226	340	17	187	926	926
Recoveries from Other Governments/UN/NATO	13,657	16,325	47	11,299	2,628	2,628
Other Recoveries	15,979	24,670	22,786	13,221	29,494	29,494
Subtotal	40,114	51,725	33,189	33,189	43,613	43,613
Total Respendable Revenue	444,242	501,489	416,103	416,103	476,205	476,205

Non-Respendable Revenue

Program Activity ($ thousands)	Actual 2007-08	Actual 2008-09	2009-10
			Main Estimates	Planned Revenue	Total Authorities	Actual
Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces
Return on investments	4,211	1,742	N/A	444	444	253
Refunds of previous years' expenditures	1,570	1,755	N/A	4,018	4,018	2,289
Proceeds from disposal of surplus Crown assets	9,240	7,757	N/A	10,837	10,837	6,174
Other revenue	255	(156)	N/A	310	310	177
Subtotal	15,276	11,099	-	15,609	15,609	8,892
Conduct Operations
Return on investments	0	201	N/A	9	9	273
Refunds of previous years' expenditures	747	937	N/A	25	25	757
Proceeds from disposal of surplus Crown assets	494	1,459	N/A	48	48	1,467
Other revenue	31	60	N/A	2	2	75
Subtotal	1,272	2,657	-	85	85	2,572
Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interest and Values
Return on investments	(14)	29	N/A			(25)
Refunds of previous years' expenditures	1,351	1,816	N/A	19	19	119
Proceeds from disposal of surplus Crown assets	61	86	N/A	7	7	33
Other revenue	4,211	6,627	N/A	0	0	2
Subtotal	5,609	8,559	-	26	26	129
Internal Services
Return on investments	589	601	N/A	31	31	450
Refunds of previous years' expenditures	60,298	61,483	N/A	3,107	3,107	45,524
Proceeds from disposal of surplus Crown assets	7,605	5,626	N/A	822	822	12,044
Other revenue	33,498	8,782	N/A	859	859	12,589
Subtotal	101,990	76,493	-	4,819	4,819	70,606
Total Non-respendable Revenue	124,147	98,807	-	20,539	20,539	82,199
Total Respendable and Non-Respendable Revenue	568,388	600,296	416,103	436,642	496,744	558,405

* Due to rounding, figures may not add up to totals shown.

Notes:

1. The Respendable Revenues are $60.1 million higher than initial Planned Revenues mainly due to the following: an increase of $29.6 million associated with increased recoveries from foreign militaries for fuel and North Warning System cost sharing arrangments; an increase in sales of food services of $15.5 million; an increase of $11.5 million received earlier than planned for the use of Canadian Forces all terrain vehicles and $3.3 million from a number of diverse financial recovery areas.
2. Starting 2009-10, the resources for Internal Service program activity is displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous years. For comparability purpose, fiscal year 2007-08 and fiscal year 2008-09 for Respendable and Non-Respendable revenue for the 2009 DPR have been restated within program activity to report on the Internal Services program activity separately.

Status Report on Projects operating with specific Treasury Board Approval

• Employee Benefit Plans (EBP) and Contingency are not included in project costs
• Projects listed have been identified as either:
  1. those in which the estimated expenditure exceeds the delegated approval authority granted to DND by the Treasury Board ($30 million with substantive cost estimates), or;
  2. those in which the risk is particularly high, regardless of the estimated amounts.
• The Project Complexity Risk Assessment (PCRA) process is applied for all projects. Project Expenditure Authorities are based on value and the PCRA levels. Moreover, the PCRA scores determine if Treasure Board (TB) approval for the Project must be sought.

Project Number	Project Title	Phase	Main Estimates 2009-10 Total Estimated Cost	Current Estimated Total Cost ($000)	Previous Expenditures to end 2008-09 ($000)	Planned Spending 2009-10 ($000)	Actual Spending 2009-10 ($000)	VARIANCE ($000)
Program Activity: GENERATE AND SUSTAIN RELEVANT, RESPONSIVE AND EFFECTIVE COMBAT-CAPABLE INTEGRATED FORCES
MARITIME EFFECTS
846	V-Class Submarines-Bow Sonar System Upgrade	I	0	68,839	0	3,641	3,621	20
1216	Arctic/Offshore Patrol Ship	D	35,559	34,900	8,510	16,875	8,419	8,456
1216	Arctic/Offshore Patrol Ship	I	2,285,450	2,285,450	0	0	0	0
2549	Canadian Submarine Capability Life Extension	I	886,363	896,194	819,319	27,000	17,670	9,330
2573	Maritime Environmental Protection Project	I	61,119	55,507	48,343	2,580	941	1,639
2586	Halifax Class Modernization/Frigate Life Extension (FELEX)	I	2,352,990	2,353,370	83,393	314,878	295,274	19,604
2640	Evolved Sea Sparrow Missiles	I	500,106	507,660	490,060	4,193	2,499	1,694
2664	Advanced Electro-optic Sensor	I	230,566	193,439	114,930	36,519	22,554	13,965
2673	Joint Support Ship	D	50,480	134,558	43,468	5,688	5,664	24
2673	Joint Support Ship	I	1,728,200	2,194,179	0	194,000	0	194,000
2796	YAG 300 Training Vessel Replacement	I	98,861	91,161	88,442	1,340	1,331	9
	TOTAL MARITIME EFFECTS		8,229,694	8,815,257	1,696,465	606,713	357,973	248,740
LAND EFFECTS
58	LAND EFFECTS	I	160,454	137,031	108,429	22,300	17,221	5,079
84	Wheeled Light Armoured Vehicle Life Extension	I	40,517	40,509	35,907	3,441	2,408	1,033
562	Close Area Suppression Weapon (CASW)	D/I	110,499	118,724	6,287	12,233	1,474	10,759
675	Chemical Agent Sensor (CAS Project)	I	31,490	60,527	14,222	18,276	3,446	14,830
1017	Lightweight 155mm Towed Howitzer (M777 LWTH) (Note 1)	I	113,073	115,147	84,795	2,938	2,242	696
1070	Armoured Patrol Vehicle	I	122,757	121,998	116,044	2,088	1,987	101
1112	Enhanced Counter - Improvised Explosive Devices Project	I	70,864	81,601	11,581	38,145	33,884	4,261
1203	Armoured Heavy Support Vehicle	I	143,833	159,335	141,359	850	6,989	(6,139)
1204	Light Armoured Vehicle Remote Weapon System	I	42 477	45 945	22 570	9 844	16 855	(7 011)
1241	Main Battle Tank (Note 2)	I	192,410	595,504	136,837	13,160	14,706	(1,546)
1242	Improvised Explosive Device and Mine Protection Kits	I	42,886	38,574	19,079	21,200	14,491	6,709
1243	Impact Seating System (ISS)	I	41,817	22,845	2,525	32,177	12,334	19,843
1350	Lightweight Towed Howitzer	D	230,449	206,022	15,462	97,471	13,307	84,164
1436	Low Level Air Defence Modernization	I	0	36,369	34,658	1,888	1,386	502
2346	Medium Support Vehicle System (Note 3)	D	1,089,242	1,114,734	13,355	288,562	98,898	189,664
2349	Light Utility Vehicle Wheeled	I	296,624	293,376	288,476	5,432	4,660	772
2556	Canadian Forces Point Biological Agent Detection, Sampling and Identification Project	I	37,874	44,293	29,701	4,483	4,797	(314)
2637	Armoured Personnel Carriers	I	2,348,900	2,283,935	2,165,328	47,924	39,613	8,311
2731	Armoured Personnel Carriers Life Extension	I	350,200	357,855	342,292	1,598	10,616	(9,018)
	TOTAL LAND EFFECTS		5,466,366	5,874,324	3,588,907	624,010	301,314	322,696
AEROSPACE EFFECTS
86	Operational Flight Program	I	111,520	111,520	60,474	10,948	11,632	(684)
113	Advanced Distributed Combat Training System	I	187,742	187,742	159,729	13,479	7,384	6,095
180	CF-18 Multi-purpose Display Group Project	I	61,959	61,959	61,619	328	0	328
273	CF-18 Advanced Multi-role Infrared Sensor	I	186,060	186,060	83,578	54,044	48,693	5,351
295	Aurora Communication Management System Replacement	I	89,745	89,745	73,697	9,227	9,029	198
317	Aurora Electro-optical System Replacement	I	49,162	49,162	48,725	352	170	182
405	Canadian Advanced Synthetic Environment (CASE)	I	0	58,067	13,062	4,932	4,265	667
410	Aurora - Flight Deck Simulator	I	40,862	40,862	38,279	1,293	1,104	189
423	Aurora - Electronic Support Measures Replacements	I	194,457	194,457	132,273	23,235	14,682	8,553
428	Aurora - Imaging Radar Acquisition	I	280,018	280,018	198,643	36,818	24,607	12,211
451	Primrose Lake Evaluation Range TSPI System	I	41,607	38,134	29,865	8,842	3,882	4,960
536	Aurora - Operator Mission Simulator	I	44,633	44,633	17,582	11,045	8,310	2,735
548	Aerodrome Precision Approach and Landing Systems	I	47,007	47,366	2,165	20,770	588	20,182
583	CF-18 - Engineering Change Proposal 583	I	854,309	854,309	847,164	3,766	2,290	1,476
627	CF-18 Defensive Electronic Warfare Suite	I	177,981	177,981	24,839	43,095	39,392	3,703
646	Omnibus Night Vision Capability	I	33,751	36,771	1,344	22,820	1,368	21,452
743	Tactical Control Radar Modernization	I	39,019	39,665	3,303	9,050	417	8,633
877	Aircraft Arrestor Systems (AAS) Modernization	I	29,773	29,772	151	9,590	194	9,396
965	Aurora Structural Life Extension Project	I	261,347	260,209	30,688	53,500	3,479	50,021
1007	Medium to Heavy Lift Helicopters (Note 4)	I	1,786,563	2,070,699	14,501	282,101	283,276	(1,175)
1036	Airlift Capability Project (Tactical) (Note 5)	I	2,766,485	2,925,282	620,974	588,719	482,756	105,963
1117	Airlift Capability Project (Strategic)	I	1,522,292	1,403,118	1,257,433	164,707	41,711	122,996
1259	Interoperable Griffon Reconnaissance Escort Surveillance System	I	38,738	52,620	12,741	13,735	27,519	(13,784)
1454	Interim Medium Lift Capability	I	202,519	207,454	140,839	57,828	43,057	14,771
1686	CF-18 - Advanced Air to Air Weapon - Short Range	I	36,685	36,684	20,941	5,343	4,658	685
2320	Military Automated Air Traffic System	I	156,629	156,425	155,543	618	589	29
2371	Advanced Navigation and Precision Approach	I	98,039	101,008	77,643	12,620	4,439	8,181
2517	Canadian Forces Utility Tactical Transport Helicopters	I	1,092,119	1,086,349	1,079,909	11,490	4,318	7,172
2526	Region/Sector Air Operation Centre	I	140,368	140,368	132,784	3,563	3,586	(23)
2619	Air Combat Manoeuvring Instrumentation System (ACMI)	C/O	31,554	0	0	0	0	0
2657	Strategic Air-to-Air Refuelling - Airbus CC-150 310	I	133,876	138,436	5,037	0	4,840	(4,840)
2659	CF-18 Advanced Precision Guided Munitions	I	55,244	55,244	12,092	21,411	3,017	18,394
2678	Canadian Search and Rescue Helicopter	I	772,159	773,549	764,429	4,300	757	3,543
2680	Maritime Helicopters	I	3,163,089	3,174,085	1,464,797	558,883	195,095	363,788
2754	CF-18 Advanced Medium Range Air-to-Air Missile	I	100,250	100,250	74,498	9,752	12,190	(2,438)
5832	CF-i18 - Engineering Change Proposal - Phase 2	I	423,281	423,281	252,863	52,255	48,488	3,767
	TOTAL AEROSPACE EFFECTS		15,250,842	15,633,282	7,914,202	2,124,459	1,341,782	782,677
JOINT, NATIONAL, UNIFIED, and SPECIAL OPERATIONS
224	Defence Information Services Broker	I	0	38,268	36,178	2,222	2,054	168
438	Joint Space Support Project	I	38,595	6,266	6,085	600	957	(357)
439	Allied Vaccine Development Project	I	35,324	26,892	23,369	2,347	752	1,595
625	Polar Epsilon Joint Space-Based Wide Area Surveillance and Support	I	23,356	44,782	11,092	4,150	12,882	(8,732)
1210	Joint Task Force X	D	0	34,656	650	2,637	2,137	500
1111	CF Explosive Ordnance Disposal Team Equipment	D/I	33,779	70,951	6,171	22,077	3,591	18,486
2398	Joint Command System (Air) - JCS (Air)	I	0	42,169	28,901	2,844	2,770	74
2400	Defence Integrated Human Resource System	I	0	98,747	93,859	3,243	3,181	62
2469	Canadian Forces Command System I (CFCS)	C/O	67,709	0	66,141	1,304	1,423	(119)
2800	Canadian Forces Health Information System	I	101,652	7,498	0	14,000	17,118	(3,118)
3667	Surveillance of Space	I	97,792	77,392	21,283	29,047	14,797	14,250
Various	Canadian Cryptographic Modernization Project	D	111,073	109,690	50,946	17,438	17,210	228
XXXX	Clothe The Soldier Omnibus Project	I	284,147	152,448	131,931	44,735	24,724	20,011
	TOTAL JOINT, NATIONAL, UNIFIED, and SPECIAL OPERATIONS		793,427	709,759	476,606	146,644	103,596	43,048
	TOTAL GENERATE AND SUSTAIN RELEVANT, RESPONSIVE AND EFFECTIVE COMBAT-CAPABLE INTEGRATED FORCES		29,740,330	31,032,622	13,676,180	3,501,826	2,104,665	1,397,161
Program Activity: CONDUCT OPERATIONS
CONSTANT SITUATIONAL AWARENESS
276	Intelligence, Surveillance, Target Acquisition & Reconnaissance	D/I	99,634	101,075	55,832	11,527	7,086	4,441
1012	LF ISTAR - Datalink Communications	I	92,471	92,462	32,344	51,849	37,399	14,450
1013	LFISTAR - Electronic Warfare (EW) Transformation	I	71,542	71,551	2,954	27,611	23,328	4,283
1014	LF ISTAR - C2	I	33,724	33,565	2,050	12,664	7,507	5,157
2803	Protected Military Satellite Communication	I	531,468	523,742	300,495	61,350	10,003	51,347
	TOTAL CONSTANT SITUATIONAL AWARENESS		828,839	822,395	393,675	165,001	85,323	79,678
INTERNATIONAL OPERATIONS
1199	Expedient Route Opening Capability	I	164,370	179,949	80,310	61,579	38,467	23,112
1380	NOCTUA	I	165,053	165,053	26,667	52,076	35,468	16,608
	TOTAL INTERNATIONAL OPERATIONS		329,423	345,002	106,977	113,655	73,935	39,720
	TOTAL CONDUCT OPERATIONS		1,158,262	1,167,397	500,652	278,656	159,258	119,398
Program Activity: INTERNAL SERVICES
2272	Materiel Acquisition and Support Information System	I	332,653	144,343	54,629	35,330	44,093	(8,763)
2536	Role Three Health Support	I	42,453	42,453	40,180	2,273	1,031	1,242
	TOTAL INTERNAL SERVICES		375,106	186,796	94,809	37,603	45,124	(7,521)
	TOTAL PROGRAM ACTIVITIES		31,273,698	32,386,815	14,271,641	3,818,085	2,309,047	1,509,038

Legend: D = Definition, I = Implementation, C/O = Close-Out

Notes:

1. Accrual portion of project included in figures for M777.
2. Project obtained Phase 2 EPA from TB in June 2009
3. Project obtained additional $23M EPA from TB in June 2009
4. Project obtained additional $290M EPA from TB in June 2009
5. Contingency funds released to the project in November 2009

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.

Summary of Transfer Payment Programs by Program Activity

($ thousands)	Actual Spending 2007-08	Actual Spending 2008-09	2009-10
			Planned Spending	Total Authorities	Actual Spending
GRANTS
Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces	124	123	133	120	109
Conduct Operations	-	-	-	-	-
Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values	5,213	5,208	5,429	5,429	5,217
Internal Services	-	-	-	-	-
Total Grants	5,337	5,331	5,562	5,549	5,327
Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces	10,449	11,098	20,163	9,256	9,171
Conduct Operations	-	-	-	-	-
Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interests and Values	160,485	182,106	214,254	224,140	221,483
Internal Services	-	-	-	-	-
Total Contributions	170,934	193,204	234,417	233,396	230,654
Total Transfer Payments	176,271	198,535	239,980	238,945	235,981

Green Procurement

Meeting Policy Requirements

Green Procurement Targets

Response to Parliamentary Committees and External Audits

1st Report of the Standing Committee on National Defence, 39th Parliament, 1st Session, "Canadian Forces in Afghanistan" (Adopted by the Committee on June 12, 2007; Presented to the House on June 18, 2007) Original report Government response

Recommendation	Government Response/Commitment	Status
6. The government should recognize the critical and growing work done by the Operational Stress Injury Social Support Network and support it with appropriate funding and other resources, so that it can keep up with the growing need of caring for returning Afghanistan Veterans and their families.	The Government recognizes the critical work being done by the Operational Stress Injury Social Support (OSISS) network and has allocated additional resources to support the program's growing needs. Since the launch of the OSISS network in February 2002, Department of National Defence (DND) funding for OSISS initiatives has increased every year. To meet the rising demand for services, the Government approved a 25% increase in DND's funding for OSISS for fiscal year 2007-2008, bringing the total to $2.6 million. This increased funding will allow OSISS to hire two new peer support coordinators for military members and veterans, six new family peer support coordinators, four regional coordinators, and one speakers' bureau coordinator. Veterans Affairs Canada (VAC) also contributes $500,000 annually to support ongoing OSISS operations and to contribute to the management and delivery of the program. Furthermore, Budget 2007 provided an additional $1 million annually to VAC to allow OSISS to hire additional family peer support coordinators and support staff, demonstrating the Government's commitment to this worthwhile program.	Since the launch of the OSISS network in February 2002, National Defence funding for OSISS initiatives has increased every year. In 2006, the program launched a Bereavement component to support families who lost a loved one. In fiscal year 2007-2008 alone, the Government approved a 25% increase in the Department's funding for OSISS. DND implemented a regional management structure to the program in March 2009 recognising the importance of supporting front line staff and to create a more robust case management capacity within the program and a new agreement was signed with VAC in 2010 to ensure effective and efficient co-management of the program. A comprehensive strategy has now been developed leveraging the success of OSISS that includes the development of a comprehensive education/prevention initiative to mitigate Operational Stress Injuries as well as general Mental Health problems, decrease stigma, provide tangible tools for leaders to intervene at their levels and remove many of the existing barriers to mental health care.

11th Report of the Standing Committee on Public Accounts, 39th Parliament, 1st Session, "Chapter 2 of the May 2006 Report of the Auditor General of Canada on National Defence - Military Recruiting and Retention" (Adopted by the Committee on November 30, 2006; Presented to the House on December 7, 2006) Original report Government response

Recommendation	Government Response/Commitment	Status
2. That the Department of National Defence report progress in the implementation of its action plan to strengthen the recruitment and retention of military personnel in its annual Departmental Performance Report, beginning with the Report for the period ending 31 March 2007. The Department should also report progress in implementing its national recruiting attractions plan as well as its strategic guidance on national recruiting. In making this information available to Parliament, the Department must make clear reference to the outcomes that are being achieved.	The Department of National Defence will ensure that the information identified in this recommendation is included in its annual Departmental Performance Report beginning with the report for the period ending 31 March 2007.	The National Attractions Plan is embedded in the CF Recruiting Group's Annual Operations Plan, which has been published for the past four years. Overall recruiting targets for fiscal year 2009-10 were achieved with a total intake of 7522 personnel representing 100.9% of the intake goal. Significantly, of the 19 Priority Occupations (the most distressed occupations assessed as being the most difficult to recruit into) CF Recruiting Group achieved 100% of the intake in 13 occupations and greater than 90% in 4 of the remaining occupations for fiscal year 2009-10. The Strategic Guidance on National Recruiting was published in Feb 2007.
3. That the Department of National Defence establish a formal commitment to process applications for membership in the Canadian Forces within thirty days, ensure that all applicants are made aware of that commitment and report its progress in meeting those goals in its annual Departmental Performance Report.	The Government will continue to explore additional opportunities to streamline applicant processing and is progressing with the development of a robust performance measurement system based on the Treasury Board framework for service standards. Progress in meeting the goals identified above will be included in the annual Departmental Performance Report for the Department of National Defence, beginning with the report for the period ending 31 March 2007.	Attainment of the goal for applicant processing of 30% completed in 5 days and 70% in 30 days continues to be a significant challenge. Improvements were made in applicant service, eliminating waiting time and in the prioritization of processing. While the Commanding Officers of Recruiting Centres have been given the authority to conduct parallel processing in order to maximize the use of their resources at any given time and ensure concurrent activity, significant delays still exist in resolving three key issues: delays due to difficulties in resolving medical issues discovered during medical fitness evaluations that require additional information from an applicant's civilian medical specialist, delays due to confirmation of pre-security screening requirements and, in many cases, delays waiting for applicants to provide information missing from incomplete applications.
8. The Department of National Defence determine the rate of attrition for female members of the Canadian Forces and, in its exit surveys, seek to establish which factors prompt female members to leave the Forces before full service is completed. The results, along with corrective measures taken to encourage women to complete their full service should be reported in the Department's annual Performance Reports, beginning with the Report for the period ending 31 March 2008.	A comprehensive survey analysis that will be conducted in the fall of 2007 will allow the Government to better understand the reasons female members of the Canadian Forces decide to leave the military. Should trends be identified that indicate a need for change, the Government will initiate appropriate corrective measures. The results of this survey analysis, together with any corrective measures undertaken, will be reported in the Departmental Performance Reports, beginning with the report for the period ending 31 March 2008.	The CF Retention Strategy approved by AFC in March 2009 with its six lines of operations and 43 initiatives continues to be advanced on a number of fronts (the main lines of operations are Career/Employment Management, Career/Family Balance and Basic Training). CF attrition research has been expanded on and research focussed on female attrition and retention has been completed for naval officer occupations as well as for air force officers in the Pilot and Air Combat Systems Operations occupations. A comprehensive 20 year comparison of overall male and female attrition rates was included in the first Annual Report on Regular Force Attrition (fiscal year 2007-08). Several studies have been undertaken to investigate attrition occurring during the first year of service (YOS) as well as attrition patterns for CF members deployed on Task Force Afghanistan (TFA). In support of the CF Retention Strategy, the CF Retention Survey and CF Exit Survey continue to be administered to gather data on turnover intentions of CF personnel. Female Attrition Rates for the CF Regular Force Fiscal Year Officers Non-Commissioned Members 2001-02 4.7% 6.9% 2002-03 6.5% 6.7% 2003-04 6.6% 6.5% 2004-05 5.4% 6.3% 2005-06 6.0% 6.2% 2006-07 5.0% 8.1% 2007-08 6.9% 9.8% 2008-09 6.0% 8.4% 2009-10 7.0% 8.7% The attrition rates for females in fiscal year 2009-10 were higher than those for men. Female rates had increased over the past year whereas rates for men had decreased from 7.2% in fiscal year 2008-09 to 5.9% in 2009-10 for officers and from 9.6% to 7.5% for NCMs. (Fiscal year 2009-10 rates are preliminary).
9. The Department of National Defence begin to report the results of the exit surveys it conducts among members of the Canadian Forces in its Departmental Performance Reports beginning with the Report for the period ending 31 March 2007. References to the methodology and scope of the surveys should be included.	The Department of National Defence will ensure that the information identified in this recommendation is included in its annual Departmental Performance Report. However, since the comprehensive analysis of survey results will not commence until the fall of 2007, the reporting of these results can only begin with the report for the period ending 31 March 2008.	The Exit Survey is given to all Regular Force members who are leaving the CF voluntarily. Survey completion is voluntary. The objective of the analysis of Exit Survey data is to assess departing members' satisfaction (agreement) with several organizational issues as well as determine the extent to which these organizational issues and dissatisfiers influence their decision to leave the CF. Final reports detailing analysis of data collected from 2005 to 2008 will be released by September 2010. Analysis of data collected with the ongoing version, administered since summer 2008, has begun. As well, the CF Retention Survey, which is administered to occupations that are "at-risk" with regards to attrition, is used to explore specific work and non-work related items and their impact on whether an individual intends to stay in or leave the CF in the next five years. Results from the 2008 CF Retention survey are currently being analyzed and published by occupation. The 2010 CF Retention survey is in the field and data analysis will begin later this year. Results of the 2010 Retention survey will provide performance measures to the CF Retention Strategy.
10. That the Department of National Defence establish a target for the maximum acceptable rate of attrition of its trained effective strength and monitor the performance of the package of measures it has instituted to meet that target. The Department should begin to report its progress in its annual Departmental Performance Report beginning with the report ending 31 March 2007.	The Government will include data regarding attrition rates in the Department of National Defence annual Departmental Performance Report beginning with the report ending 31 March 2007. However, the data will be based on trend analysis as opposed to pre-determined targets.	Due to the number of factors influencing attrition that are beyond the control of the CF, including the state of the Canadian economy, instead of establishing a target for the maximum acceptable rate of attrition of its trained effective strength, the CF closely monitors all aspects of attrition and uses statistical modelling to forecast attrition for each occupation for each fiscal year. These forecasts are used in formal, structured processes to determine the number of personnel who need to be recruited for each occupation for each fiscal year and are published as the Strategic Intake Plan. During the fiscal year, actual recruiting and attrition are monitored on a month-by-month basis and the Strategic Intake Plan is adjusted as required. While voluntary Regular Force attrition between 2006 and 2008 increased from 4% to 6.9%, this rate increase was manageable in that the CF had the capacity to recruit and train sufficient personnel necessary to replace those who left. However, the additional requirement to recruit and train personnel to meet Force Expansion targets strained both the recruiting and training systems. During fiscal year 2009 - 2010 the Strategic Intake Plan was set at a higher than traditional level and sought to enrol 7,454 personnel. Actual recruiting exceeded this target, with 7,522 personnel being brought into the Regular Force. Projected attrition was 6,250; however, with the downturn in the economy and a successful CF Retention Strategy, only 5,293 personnel left the Regular Force this past fiscal year. Consequently, with recruiting up and attrition down, the CF grew by 2,229 personnel during this timeframe. The overall strength of the Regular Force as of end-March 2010 was 68,124 personnel and slightly surpassed the 2011-2012 growth target of 68,000. Now that Force Expansion requirements have been met, the Strategic Intake Plan for the next few years will be reduced to approximately 5,000 new recruits each year. This reduction will alleviate the strain on the recruiting system. However, surge recruiting that occurred during the past few years created a backlog of personnel undergoing basic and initial occupational training. Efforts are being made to increase training capacity and to move these personnel from the Basic Training List to the Trained Effective Strength as quickly as possible; however, due to the length of many technical and professional training programs, it will take a few years before the Trained Effective Strength sees a substantial increase.

15th Report of the Standing Committee on Public Accounts, 39th Parliament, 1st Session, "Chapter 5 - Relocating Members of the Canadian Forces, RCMP, and Federal Public Service of the November 2006 Report of the Auditor General of Canada (Adopted by the Committee on May 16, 2007; Presented to the House on May 29, 2007) Original report Government response

Recommendation	Government Response/Commitment	Status
5. That the Department of National Defence, the Royal Canadian Mounted Police, and Treasury Board Secretariat include, in their annual Departmental Performance Reports, references to the Integrated Relocation-Program as it relates to their employees. Information on the numbers of employees using the Program, the costs, and the extent to which the purposes of the Program are being achieved must be included. This performance information must be included in DPRs beginning with Reports for the period ending 31 March 2008.	The Government accepts this recommendation.	The purpose of the Integrated Relocation Program (IRP) is to relocate CF personnel and their families in the most efficient fashion and at the most reasonable cost to the public while having a minimum detrimental effect on the employee and family, and on departmental operations. During fiscal year 2009/10, the CF authorized the service provider, Royal Lepage Relocation Services (RLRS)/ Brookfield Global Relocation Services (GRS), to effect relocations for 16,859 personnel. Of those, 16,653 were activated and it is estimated that as many as 15,900 members actually relocated. Records indicate that the administration fees paid to RLRS/Brookfield GRS for providing relocation services totalled just under $26 million, including GST. The summation of the flow through costs for reimbursements made to CF personnel for relocation benefits were slightly greater than $242 million. All of these figures reflect slight increases over the previous year. A new IRP contract was awarded to Brookfield Global Relocation Services (GRS) in 2009 and became effective on 1 December. It should be noted that this is the same company that held the previous contract as Royal LePage Relocation Services has simply changed its name to Brookfield GRS. No new CFIRP Manual has been issued this year. Instead the 2009 Manual is still in use in combination with a series of Clarification Bulletins. The Manual and Bulletins are all available on line. The Service Level Agreement between DRBM/DGCB and DGMPRA has changed such that DGMPRA now only collects data for Customer Satisfaction Surveys with analysis now being conducted by DRBM. The most recent data has only just been received in DRBM in June (with an approximately 8% response rate) and has not yet been analysed.

2nd Report of the Standing Committee on National Defence, 40th Parliament, 2nd Session, "Health Services Provided to Canadian Forces Personnel with an Emphasis on Post-Traumatic Stress Disorder" (Adopted by the Committee on June 8, 2009; Presented to the House on June 17, 2009) Original report Government response

Recommendation	Government Response/Commitment	Status
1. The Minister of National Defence and Chief of the Defence Staff to make a joint public announcement to all Canadian Forces ranks, outlining a high-profile effort to pursue a modern, enlightened and unequivocal view of mental health issues in the Canadian Forces. All commanders of commands, formations and units to deliver complementary declarations to their personnel, to reinforce local implementation.	The Government is dedicated to pursuing a modern, enlightened and unequivocal view of mental health issues in the CF and has already taken steps to implement the Committee's recommendation. On 25 June 2009, the Chief of the Defence Staff (CDS) made a public announcement to launch the CF Mental Health Awareness Campaign, themed "Be the Difference," which has the dual aim of educating CF personnel on mental health issues, and building a culture of understanding. In his speech, the CDS communicated the idea that all personnel can make a difference to those affected by mental health issues. He also highlighted the success of two CF non-clinical programs: the Mental Health and Operational Stress Injury Joint Speakers Bureau, established in 2007 to educate the military community on mental health issues; and the Operational Stress Injury Social Support network, an innovative peer-based intervention program established in 2001. CF efforts to date have had success in raising awareness and understanding of mental health issues among the leadership cadre. However, much remains to be done at the lower rank levels to ensure that they too understand that mental illness is a genuine illness and not a personal failing. As part of the CF Mental Health Awareness Campaign, commanders of commands, formations and units will also be encouraged to deliver complementary declarations to their personnel to reinforce implementation at the local level.	This has been completed. It is continuing with the role-out of the "Be The Difference" campaign across the CF. As this is non-clinical mental health it falls more under the responsibility of CMP. This campaign launch was accompanied by the distribution of print and audio-visual materials to all units across the CF, and a general message was issued to the CF population. A follow-up awareness campaign is also being implemented at major bases across Canada with the support and participation of local leadership.
2. The Department of National Defence to cause an independent audit to be conducted of military patient case management practices, to determine the extent to which a gap exists between expressed Canadian Forces policy and the actual practices applied to the continuing treatment and care of injured Canadian Forces personnel. Once defined, appropriate measures should be taken, throughout the chain of command, to eliminate the gap and improve patient care.	Several authorities external to the CF have recently reviewed these issues, including the Office of the Auditor General, the CF Chief Review Services, the CF Ombudsman, the Mental Health Advisory Committee - a civil-military body with participation from DND, VAC, the RCMP and academics - to examine and make recommendations regarding mental health issues. Accreditation Canada, a not-for-profit, independent organization that is recognized as the national authority for the establishment and assessment of health care standards and the accreditation of health care institutions, also specifically assesses concordance between policy and practice. Gaps and action plans are well defined and further reviews are planned, such as Accreditation Canada's audit of the entire CF health system and the Mental Health Advisory Committee's ongoing reviews. In addition, an international panel of experts, led by the Deputy Surgeon General and including military and civilian experts from Canada, the United States, the United Kingdom, Australia and the Netherlands, will be reviewing and discussing each nation's experience with suicide prevention/education, as well as current literature and evidence-based best practices, this fall (22-23 September 2009). The Government looks forward to the outcome of all of these studies and will make every effort to implement recommended measures to eliminate the policy-implementation gap and further improve patient care.	Accreditation Canada's audit of the CF Healthcare System continues. As per initial Government response, if and when any gaps that exist between expressed Canadian Forces' policy and the actual practices applied to the continuing treatment and care of injured Canadian Forces personnel, appropriate measures are taken, throughout the chain of command, to eliminate the gap and improve patient care. This item should be considered complete.
9 . The Canadian Forces to ensure that members and their families are provided with information about the risk of domestic violence that is associated with OSI and PTSD, and to provide services to family members who are at risk of or suffering from domestic violence as a result of OSI or PTSD.	The Government has already taken actions to address this issue. A CF directive has been issued outlining the steps to be followed when an incident of family violence occurs. It explains the CF policy on family violence, establishes a framework for management/implementation of the policy at both national and unit levels and assigns responsibility/authority for the various elements of the policy. The CF has also adopted an interdisciplinary team including health care providers, chaplains, Military Police and Military Family Resource Centre staff who assist in educating the CF on the prevention of family violence as well as responding to incidents. Moreover, the newly formed Mental Health & OSI Joint Speakers Bureau is currently developing new mental health educational curriculum, which will include information about the risk of domestic violence associated with OSI and PTSD, and coordinating its delivery. While the new curriculum is being developed, the focus within the CF is on how to motivate CF members to encourage their families to attend information sessions where the link between domestic violence and OSI is discussed.	Families have access to social support through trained Family Peer support coordinators within the OSISS program. The Mental Health & OSI Joint Speakers Bureau has developed new mental health educational curriculum that is specific to families and deployment which includes information about potential negative behaviours associated with OSI and PTSD. New curriculum for families is also under development regarding mental health in general which will which will include information about the risk of domestic violence associated with OSI and PTSD, and a web-based delivery of this curriculum is being explored to render it accessible to all families. While the new curriculum is being developed, the focus within the CF is on how to motivate CF members to encourage their families to attend information sessions where the link between domestic violence and OSI is discussed. The CF continues to take a proactive stance in preventing family violence through education and awareness. The CF Family Violence Prevention and Awareness Campaign "Take a Stand Against Family Violence" was launched in 2007 and runs the second week of October each year. The campaign is intended to encourage open and frank dialogue on the prevention of family violence. The campaign includes posters, brochures, and family fact sheets, distribution of briefings and a resource database for use by responders/service providers, and localized base/wing activities. The CF Family Violence Prevention and Awareness Campaign is implemented locally through Base/Wing Family Crisis Teams, Military Family Resource Centres or the Strengthening the Forces Health Promotion Office.
10. The Canadian Forces to develop a formal outreach program to educate contracted health care professionals about the unique nature of military experiences encountered on international missions, particularly those involving any degree of combat.	The Government is currently working in this direction. Local level initiatives, such as the collective clinical training offered at CFB Gagetown and Valcartier for all health care professionals, are already well underway to develop such an understanding among both Public Service and contracted health care professionals, but there would be benefit in a more formal approach. To this end, the CF Health Services Group recently began developing a civilian personnel orientation package geared initially to Public Servants and civilian contractors. The package is expected to include information on the military culture, organization, terminology and domestic and international operations, including those involving combat, as well as occupational health aspects of the military. It could be completed as early as November 2009.	Local initiatives continue to be developed that include information not only for healthcare providers but family members of CF Personnel. Work also continues on developing a civilian personnel orientation guide. This guide was not completed by November 2009 as initially anticipated and a new completion date has not been determined at this time.
11. The Canadian Forces to formally recognize the requirement to include, where appropriate, selected family members in the treatment regime of psychologically injured personnel and take measures to ensure they are consulted and included in treatment plans, to the extent it is helpful to do so.	The Government fully recognizes the value-added of family members in the treatment of personnel injured either physically or psychologically. The inclusion of family members, where relevant to the health care of CF patients, is a long-established practice. The CF has issued an instruction on Member Focused Family Care which formally recognizes the importance of family inclusion in the care of the member and provides the opportunity for family members to be seen in CF clinics in support of the member and to participate in psycho-education programs. These programs are conducted at the regional centres. Families are brought into the clinic for an intensive one week training program to educate them about the CF members' condition and their involvement in the care and support to the member.	Completed.
12. Where injured Canadian Forces members require continuing assistance in navigating an administratively complex programme of treatment and care, the Canadian Forces to facilitate the use of a designated advocate chosen by the member and provide an appropriate level of cooperation with such advocate. Canadian Forces members to be advised of their right to an advocate. Given the concerns of additional stresses on family members, potential advocates to include retired members of the Canadian Forces and other professionals (e.g. medical doctors, psychologists, spiritual/religious advisors).	The Government recognizes the need to assist CF members in navigating the sometimes complex administration of treatment and care. The last thing injured personnel and their families want is an additional source of stress. There are already many professionals/entities responsible for advocating on the injured member's behalf, including Case Managers, Peer Counsellors, Veterans Affairs Advocates, the Integrated Personnel Support Centres (IPSC) and the chain of command. There has been an increased focus on identifying and correcting the deficiencies in the current system, including through the stand-up of the new Joint Personnel Support Unit (JPSU) that provides a one-stop shop for ill and injured members. Services offered by the JPSU include advocacy on a variety of issues such as the administration of health care.	To bolster the implementation of the JPSU/IPSCs, two services targeted at supporting the families of the ill and injured were introduced: Family Liaison Officer: Dedicated support to the families of CF personnel with an illness, injury, or special need; and Casualty Support Child Care: Child care services for the families of the ill and injured and the families of the fallen.
13. The Canadian Forces to give primary consideration to the continuity of quality care for recovering soldiers, over career development options.	The Government agrees that the health of our recovering men and women in uniform should always come first and that CF personnel should not be moved from one location to the other if such a move has the potential to adversely affect their recovery. This is particularly important in the case of mental health issues such as operational stress injuries and PTSD where the stability of the relationship between a patient and his/her mental health professional is crucial to ensure the success of the treatment and the full recovery of the member. While medical officers assign military employment limitations to patients in need of particular care or treatment when necessary to ensure that appropriate continuity of care is achieved, it may not always be clear to career managers that they should avoid posting a member away from his/her unit. The Government recognizes that this is an issue and the CF is committed to look into ways of improving its record in this area. In doing so, the CF will reach for a delicate balance between continuity of care and professional development, one that will put the health of our men and women in uniform first, while avoiding being an obstacle to career progression - which could make members reluctant to report the symptoms of mental health illnesses.	Director General Military Careers will continue to work with the other agencies within Defence that are charged with the care of the ill and injured to ensure that ill and injured members are treated with compassion. However, the boundaries imposed by the principle of universality of service and the National Defence Act must also be considered. To this end, a special board has been stood up, chaired by Chief Military Personnel with senior membership from the environmental commands, to ensure that decisions on the future employment of members wounded in action receive consideration at the highest level possible. Likewise, policy has been put in place to allow for the retention of ill and injured personnel who breech the terms of Universality of Service, but are employable 5 days a week during normal working hours for a transition period of up to 3 years. On completion of this period, the Director of Casualty Support Management, in cooperation with the staffs of the Joint Personnel Support Unit (JPSU) and Veterans Affairs Canada will ensure that the member receives the support required to transition to a civilian career, and ensure that they receive all of the pension/medical benefits associated with their condition. For those members whose condition does not allow them to be employed, they will be retained for a period of up to 6 months during which time the Director of Casualty Support Management, working with the agencies mentioned above will ensure a smooth transition plan into civilian life.
14. The Canadian Forces to monitor the mental health of its members for five years after deployment on operational missions, to ensure effective treatment and tracking of mental health issues.	The Government supports the need for sustained tracking of CF members' mental health. In fact, the CF monitors the mental health of its members not just for five years after an operational tour of duty, but throughout their entire career. The mechanisms for doing this include opportunities to self-report concerns through a mandatory end of deployment report and during Third Location Decompression, a mandatory enhanced post-deployment medical and psycho-social/mental health screening a few months post-deployment, an ongoing systematic program of Periodic Health Assessments for the duration of the member's career, the opportunity to self-identify and self-present for care at any time, and a final pre-release health assessment. Supervisors also have the responsibility to monitor the well-being of their subordinates and refer them to help if necessary.	Completed.
15. The Canadian Forces to recognize there still exists a certain culture, perhaps even a prejudice, regarding how mental illness is perceived among its rank and file.	The CF recognizes the stigma attached to mental health and is very pro-active in addressing this issue. The newly formed Joint Speakers Bureau, which includes mental health clinicians and OSI veterans, has been actively educating CF members and the chain of command at all stages of a member's career on mental health and the importance of creating a supportive environment so members can come forward early for mental health care. More recently, the CDS campaign raised the importance of mental health as a leadership issue. There is evidence that these efforts to decrease stigma have been successful in that members are seeking help much earlier when mental issues arise, indicating a significant reduction in stigma as a barrier to care. Moreover, the Global Business and Economic Roundtable on Addiction and Mental Health recently "praised the military for its success in taking some of the stigma out of mental illness." Mr. Bill Wilkerson, the Chairman of the Roundtable, stated that "the military and paramilitary have crossed the Rubicon in recognizing that mental illness is a real expression of ill health and not weak character." Information on mental health and OSI is already included in all Basic Military Qualification Training for commissioned and non-commissioned members, as well as Primary Leadership Qualification and Advanced Leadership Qualification. However, the CF is currently reviewing the detailed descriptions of the knowledge, skills, and other attributes required for all members of the CF for both officers and non commissioned personnel. This review is expected to result in the addition of OSI information to a greater number of courses. As of 1 October 2009, there will also be a standardized mental health and OSI pre-deployment education for all CF members, including leaders at all levels. This pre-deployment education will include recognition of behaviours often associated with mental health conditions, possible interventions, as well as information about available resources.	Information on Mental Health (MH) and Operational Stress Injuries (OSI) is currently taught during eight 40-minute periods throughout the Basic Military Officer Qualification (BMOQ) and Basic Military Qualification (BMQ) courses for commissioned and non-commissioned CF members, respectively. Additional content on the subjects are also provided on the other courses later during a member's career on the Primary Leadership Qualification (ten 45-minute periods), the Intermediate Leadership Qualification (two 45-minute periods) and the Advanced Leadership Qualification (eight 45-minute periods). The CF continuously reviews the training to update or add new knowledge and course content. The intent of future reviews on MH/OSI training is to add knowledge to courses where no training currently exists or to improve existing training. In the fall of 2009, preparations were made to provide a standardized MH/OSI pre-deployment education for all CF members, including leaders, at all levels. This pre-deployment education includes recognition of behaviours often associated with mental health conditions, possible interventions, as well as information about available resources. The pilot course was delivered in December 2009. Implementation of the training is scheduled for Task Force 3-10 in June 2010 in Valcartier, with 2,500 personnel to be trained. There is an additional phase of this training which involves family members of those being deployed, with on-site training on two bases for now, and also via Webinar for those who are not in close geographic proximity to a base, wing or Military Family Resource Centre. For the basic military qualification courses, a working group met in April 2010 to completely review the content and prepare for delivery of a three-phase building block process to teach and coach the members' skills throughout their career and deployment cycles. The training will be implemented starting in January 2011 and involves a three-phase approach based on three specific time periods within the basic military qualification courses (around 2nd week, 7th week and 13th week) when guest speakers from Health Services Group/Joint Speakers Bureau introduce MH/OSI topics as follows: Phase 1 - First Teaching Block: definitions, coping skills; Phase 2 - Middle Teaching Block: skill reaffirmation such as what do you remember, how have you applied what you learned so far, goal setting; and Phase 3 - Last Teaching Block- resilience, getting help, types of resources, demystifying MH, fears of stigma, resource barriers, suicide and addictions.
18. The Department of National Defence and the Canadian Forces to move to co-locate all medical facilities on military bases, in a manner that supports the concept that all injuries and ailments will be treated with equal respect and that works to eliminate any lingering stigma associated with mental health issues.	The Government adheres to this concept and has made every effort to co-locate all medical facilities on military bases. While challenges remain, these are due to infrastructure limitations rather than a lack of desire to co-locate. As new clinics are built as part of the Canadian Forces Health Services (CFHS) Infrastructure Recapitalization Project, all services will be integrated in one facility. This project will ensure that all CF clinics meet health care standards and that they provide appropriate layout and space for staff to operate effectively.	The current Canadian Forces Health Services Infrastructure Plan takes in to account this recommendation and will ensure collocation of all medical facilities on military bases. This item should be considered complete.
19. The Department of National Defence to ensure that adequate resources are allocated to the establishment of a sufficient number of the Joint Personnel Support Units and Integrated Personnel Support Centres to provide this level of support and service nation-wide.	DND continually strives to improve the resources, both financial and human, to support establishments throughout the country. Up to now, there is one Joint Personnel Support Unit with 19 Integrated Personnel Support Centres in its chain of command across Canada. Work is ongoing with the CF to assess the need for additional centres.	The implementation of the full scope of the new capability is expected during fiscal year 2010-11.
20. Reserve unit chains of command to be intimately and proactively involved in ensuring their returning personnel complete the post-deployment process on time, including all necessary administration, interviews and medical appointments. Where individual Reservists are undergoing continuing care and treatment after full-time service, Reserve unit chains of command to remain in regular contact with CFHS case managers and to take an active interest in the soldier's treatment programme.	The Government agrees that the military chain of command must be fully engaged in the health of their returning personnel. To ensure that returning Reservists complete all the necessary administration, interviews and medical appointments, DND has implemented a program known as the Reserve Medical Link Team whereby all returning Reservists are contacted and tracked to ensure that post-deployment screening is completed. To date, 90% of Primary Reserve members who participated in ROTO 5 of the CF mission in Afghanistan have been contacted, with final contact taking place 12 months after their return to Canada. Approximately 80% of Primary Reservists participating in ROTO 6 have now had initial contact. The Reserve Medical Link Team also liaises regularly with CF Case Managers and the situations of all Primary Reserve members requiring care are discussed in case conferences that review individual health care needs and management plans. The Government has already taken steps to address the issue covered by this recommendation. The Reserve Medical Link Team has implemented a program that provides annual briefings on health benefits, entitlements, access to care, post-deployment screening and contact information. These annual briefings are mandatory for all members of a Reserve unit, with frequent additional briefings to the units' command elements, and include information on the recognition of the signs and symptoms of OSIs, as well as information on how to access treatment. This program covers a very broad range of mental health illnesses (including PTSD, anxiety, depression, sleep and other disorders, etc.) attributable to operations and each of these illnesses has its specific treatment regime. In this program's first year of operations, 90% of target Army Reserve units were briefed. During its second year, Air and Naval Reserve units will be included. All remaining Reservists will be included in the third year of operations. In addition, the newly formed Joint Speakers Bureau which includes mental health clinicians and OSI veterans has been actively educating CF members and the chain of command at all stages of a member's career on mental health and the importance of creating a supportive environment so members can come forward early for care.	The Reserve Medical Link Team process has continued since its inception approximately 2 years ago. The process involves information briefings on entitlements to all Reserve stakeholders and staged contacts with deployed Reservists ending one year post return to Canada. To date, Primary Reserve members who participated in ROTO 5 of the CF mission in Afghanistan have been contacted a minimum of 3 or more times. The initial screening of this ROTO is considered complete. To note, there are individual cases of soldiers who, while initially self-reporting as well, have now reported concerns related to reintegration (i.e. sleeping problems, nightmares, family issues, and increased alcohol consumption). All of these members are being tracked and referred to appropriate agencies both internal and external to Defence. Initial screening of ROTO 6 has also been largely completed with approximately 77 % having responded to second contact at the 6 month point. ROTO 7 is still in progress with approximately 65% of the members having responded to initial contact. The Reserve Medical Link Team has recently begun contacting those members deploying in smaller numbers to other international operations which are on-going.
22. The Minister of National Defence and the Canadian Forces to continue to strive for the compassionate application of existing regulations regarding universality of service and minimum operational standards, to allow the continued employment of recovering soldiers, as long as such employment contributes to Canadian Forces operational requirements.	DND and the CF always strive to treat their members with compassion, while also respecting the boundaries imposed by the principle of universality of service and the National Defence Act. There are currently a number of existing and planned policies designed to retain recovering CF personnel. For example, the CF is authorized to retain personnel who are unable to meet the full requirements of universality of service for a limited period of time as long as they are employable. In addition, there are opportunities available for personnel to serve in a Reserve Force component, which is not subject to the same condition of universality as the Regular and Primary Reserve Forces. Treating our injured men or women in uniform with compassion is the least we can do in respect for the sacrifice they are willing to make for their country.	Policy - Director General Military Careers will continue to work with the other agencies within Defence that are charged with the care of the ill and injured to ensure that ill and injured members are treated with compassion. However, the boundaries imposed by the principle of universality of service and the National Defence Act must also be considered. To this end, a special board has been stood up, chaired by Chief Military Personnel with senior membership from the environmental commands, to ensure that decisions on the future employment of members wounded in action receive consideration at the highest level possible. Likewise, policy has been put in place to allow for the retention of ill and injured personnel who breech the terms of Universality of Service, but are employable 5 days a week during normal working hours for a transition period of up to 3 years. On completion of this period, the Director of Casualty Support Management, in cooperation with the staffs of the JPSU and VA will ensure that the member receives the support required to transition to a civilian career, and ensure that they receive all of the pension/medical benefits associated with their condition. For those members whose condition does not allow them to be employed, they will be retained for a period of up to 6 months during which time the Director of Casualty Support Management, working with the agencies mentioned above will ensure a smooth transition plan into civilian life. Career management - a cell of 3 dedicated career managers has been set up to manage the careers of the ill and injured. Once a CF member is posted to the SPHL, the management of their careers is turned over from their occupation CM to one of the 3 Ill and Injured CMs. These individuals will facilitate all necessary moves for the members' rehabilitation, they liaise with all of the other CF care providers on the members' behalf, they personally meet (either in person or through electronic means) with each of the ill and injured, they conduct annual briefings and interviews with the individuals and their CoCs, and they ensure, whenever possible, that career coursing continues if the individual's medical situation allows. Once the member has recovered, the CM for the Ill and Injured will then ensure that the member is transitioned back into his environment, and his or her career management is transitioned back to the environmental CM.
23. The Department of National Defence to immediately provide enhanced transportation resources (such as modern multi-passenger vans or highway cruiser buses and drivers) to isolated military bases to ensure that military personnel and family members have adequate transportation for access to out-of-town health care services and medical appointments.	DND is currently looking at ways for ill and injured members, and the members of their families who are involved in their treatment, to have access to transportation to access out-of-town health care services, if required. In some locations, Base Commanders have also expended funds to secure accessible transport to enable those requiring assistance to attend appointments with health care providers.	Ongoing. Vehicles are acquired as needed.
24. The Canadian Forces to remind personnel that they have an obligation to keep their families fully informed of medical and social support services available to them. The Canadian Forces to continue to encourage military families to engage those medical and social support services.	The Government recognizes the important role families play in enabling the operational effectiveness of the CF and appreciates the unique nature of military life. Every effort is being made to encourage CF members and their families to use the support resources that are made available to them. In 2008, DND's Chief Military Personnel initiated a transformation initiative, specifically targeting the enhancement of support to military families. Throughout 2008 and 2009, extensive, broad-based consultations with CF leadership, families and service providers revealed deficiencies in the family support system, and recommended solutions to close the gap between identified family requirements and available services. The CF is examining these solutions and will consider making necessary adjustments to the services currently provided by the Military Family Resources Centres to ensure military families are aware of, and have access to, available medical and social support services in their community.	In response to Chief Military Personnel's transformation initiative, a CF family service enhancement strategy was developed to address family support deficiencies in the following key: Child Care; Transition Services (Education, Employment, Access to Health Care); Family Separation and Reunion; and Mental Health and Social Support. Twenty-one projects were piloted, generating numerous recommendations on family program, service and policy additions, expansions and revisions. Based on the successful results of several of the pilot projects, the following initiatives were implemented: Family Information Line: A staffed 1-800 line to support families' navigation of existing policy, information and services; FamilyForce.ca: A web-based portal connecting CF families to local, national and international information, services and resources; National Military Family Council: A volunteer advisory council to provide a voice for military families to Armed Forces Council; Community Wellness Index: A standardized assessment of the health of each CF community; Family Liaison Officer: Dedicated support to the families of CF personnel with an illness, injury, or special need; and Casualty Support Child Care: Child care services for the families of the ill and injured and the families of the fallen.
25. In conjunction with other Federal Healthcare Partnership stakeholders, the Department of National Defence, Veterans Affairs Canada and the Canadian Forces to hold an annual national conference on best practices and advancements in military health care overall, with special emphasis on mental health care.	The Government has begun exploring ways of increasing the interest of Canadian mental health professionals in CF and Veterans issues. In this spirit, a joint VAC-DND Mental Health Information Exchange Symposium, featuring mental health experts was held on 22 January 2009, in Ottawa with participants from DND, VAC, the RCMP and other Government departments. In addition, staff from VAC, as well as from VAC-funded OSI clinics, present in major conferences in relation to operational stress injuries, such as those of the Canadian Psychology Association, the International Society for Traumatic Stress Studies, and the Canadian Centre on Substance Abuse. The Government of Canada will be providing further opportunities for the sharing of best practices and advancements in mental health care by organizing a symposium on psychological trauma and operational stress to be held in 2011 in partnership with the International Society for Traumatic Stress Studies. The Government will also continue to leverage regional education events/conferences that build upon the work already carried out by the CF Health Services Civilian-Military Co-operation Team, with the "Care to the Wounded Soldier Initiative." This initiative involved a series of educational events that brought health care providers and senior health care administrators within geographical regions together to participate in briefings on the health needs of the CF ill and injured soldiers, including mental health care needs, and proved very successful as a forum for information sharing.	Completed, although by its nature this will be a process that is continually ongoing.
32. The Canadian Forces to regularly review the composition of the Operational Trauma Stress Support Centre multi-disciplinary teams and remain open to the addition or use of clinical professionals not traditionally found in the military health care system, such as registered marriage and family therapists and that the services thereof be added to the dependents' Extended Health Care schedule of covered benefits.	The Government has already taken action in this direction. The present teams are composed of the following professionals who are members of a professional regulatory organization with the accompanying provincial statutory authority: family physicians, psychiatrists, social workers, mental health nurses and psychologists. Presently registered marriage and family therapists are regulated only in Quebec and are seeking regulatory status in other provinces. Once they are regulated the CF will assess their potential contribution to the care of CF members and their families, as well as their potential addition to the dependents' Extended Health Care schedule of covered benefits.	As part of their mandate, the Operational Trauma and Stress Support Centre programs review national and international literature on trauma, with a focus on issues related to post-traumatic stress disorder. The Canadian Forces utilizes evidence-based best practices as endorsed by organizations such as the International Society for Traumatic Stress Studies. Before considering a treatment or technique, it must be supported by objective evidence of its efficacy which normally requires randomized controlled trials published in peer reviewed journals. Progressive action has been and continues to be taken in the areas of both treatment and of prevention of mental illness and operational stress injuries such as post-traumatic stress disorder.
33. The Canadian Forces to provide this Committee, the Auditor General of Canada and the Department of National Defence and Canadian Forces Ombudsman with a full, unclassified update of the status of the Canadian Forces Health Information System, along with a meaningful explanation of when it will reach full operational capacity. 34. The federal government to move immediately to provide the necessary resources to reach full operational capability of the Canadian Forces Health Information Systems project, with the assistance of a database.	The CF Health Services Group would be pleased to provide additional briefings on the Canadian Forces Health Information System (CFHIS) and its future needs. As such, the CF Health Services Group will develop a presentation and make arrangements to set up briefings for the Committee, the Auditor General and the CF Ombudsman as outlined in recommendation 33. These briefings could take place this fall. A revised schedule and costing should be available this fall and will be shared with the Committee, the Auditor General and the CF Ombudsman as part of the briefings. The CFHIS will improve the management of health information that is created within CF facilities. However, CF members also receive care from the public health care system. Accordingly, full operational capability of the CFHIS will not be realized until the CFHIS is rolled out to each CF Clinic and then connected to the emerging pan-Canadian Electronic Health Record. This will then allow care providers in both the CF and the public health care system to have complete health information. As recommended, the CF, as a member of the FHP, is collaborating with other federal organizations with similar needs in a whole of government effort towards identifying the requirements for federal participation in the pan-Canadian Electronic Health Record.	The Canadian Forces Health Information System (CFHIS) Project continues to be on budget and during the reporting period sought TB approval for a 23-month extension to allow the roll-out of the system to all CF clinics and ships. CFHIS has also been identified by the TB Secretariat Chief Information Officer (CIO) as a model for other departments with health care delivery responsibilities. Federal Healthcare Partnership (FHP) continues to progress the development of an interface that will allow the relevant federal departments to link with civilian electronic health records systems.
35. The federal government to initiate cooperative programs with provincial and territorial governments, to offer incentives to qualified professional health care workers, to provide their services to Canadian Forces personnel and their families, in locations where there is a shortage of such services. 36. The federal government to continue to work in cooperation with provincial and territorial governments to enhance relationships between local community health and social services to enhance and Canadian Forces health care services.	In fact, much of the mechanics to facilitate such cooperation are already in place. As indicated in Recommendations 5 and 25, forums for discussions with Provinces and Territories and regional and local health authorities are in place. These include, but are not limited to, the Advisory Committee on Health Delivery and Human Resources, the Health Human Resources Partnership and Planning Sub-Committee, and the activities led by the CF Health Services Group. In Ontario, Memoranda of Understanding between the CF and the Local Health Integration Networks are being developed to facilitate access to community health services. As previously mentioned, the FHP Partners have also instituted the Office of Health Human Resources to build health services capacity within the federal government enabling the CF, for example, to better service its members, including families. The FHP, appreciating the value of further developing the relationships with Provinces and Territories, has invited one of the Co-Chairs of the Advisory Committee on Health Delivery and Human Resources to attend FHP Executive Committee meetings. This provides a vehicle to keep the FHP partner organizations up to date on activities with Provinces and Territories and a forum through which the FHP partners can raise issues they are facing and on which they would like to work collaboratively with Provinces and Territories to address.	With respect to service members, the actions outlined in the Government response have been completed and liaison/cooperation with the various partners is ongoing at the national and local levels. Responsibility for actions relating to dependents does not lie with the CF.

20th Report of the Standing Committee on Public Accounts, 40th Parliament, 2nd Session, "Chapter 5, Financial Management and Control - National Defence of the Spring 2009 Report of the Auditor General of Canada" (Adopted by the Committee on November 18, 2009; Presented to the House on December 3, 2009) Original report Government response

Recommendation	Government Response/Commitment	Status
1. National Defence to provide the Public Accounts Committee with a report by 31 December 2010 on the progress in implementing the recommendations made in Chapter 5 of the Auditor General's Spring 2009 Report.	The Government accepts this recommendation. Following the release of the Auditor General's 2009 Report, DND developed an action plan to chart its progress on implementing the recommendations made by the Auditor General. This action plan was presented to the Public Accounts Committee on September 28th, 2009. Some of the progress already underway includes the development of a new corporate strategy that will help establish clearer links between day-to-day activities of the Department and overall Government Direction, as outlined in the Canada First Defence Strategy; the development of a Program Activity Architecture that demonstrates how Defence programs achieve strategic outcomes; and the implementation of a new financial management governance structure with the appointment of DND's first Chief Financial Officer and the establishment of the Defence Finance Committee and the Defence Strategic Executive Committee. DND will continue to follow through on the action plan and will provide a progress report to the Committee by December 31st, 2010.	See "Response to the Auditor General".

1st Report of the Standing Committee on Public Accounts, 40th Parliament, 2nd Session, "Chapter 4, Military Health Care - National Defence of the October 2007 Report of the Auditor General of Canada" (Adopted by the Committee on February 12, 2009; Presented to the House on February 25, 2009) Original report Government response

Recommendation	Government Response/Commitment	Status
1. National Defence to provide the Public Accounts Committee with a detailed progress report by 31 October 2008 on the implementation of its plan to address deficiencies identified by the Office of the Auditor General in its audit on Military Health Care.	The Government accepts this recommendation, with the necessary revision to the timeline. The Government has developed an action plan intended to address the recommendations contained in the Auditor General's report on military health care. This action plan was presented to the Public Accounts Committee on 31 January 2008. An updated action plan was provided to the Auditor General in spring 2009. DND intends to provide the Committee with a copy of this updated action plan, which includes details on progress to date, by the end of June 2009. Progress towards achievement of these recommendations will be provided to the Auditor General on a regular basis. Copies of these reports will be provided to the Committee as they become available.	Updates are forwarded through Chief Military Personnel to Chief Review Services and updates should be provided to OAG through appropriate channels. Defence agreed to provide this same update to SCOPA but has not done so.
2. National Defence to provide information in its annual Departmental Performance Report on the aggregate costs of the military health care system, as well as the number of physicians, nurses, pharmacists, medical technicians, and physician's assistants employed in that system.	The Government accepts this recommendation. DND will report this information in the Fiscal Year 2009/10 Departmental Performance Report. In future years, DND will also look for other ways to make this information available to the public.	Currently, in the military health care system the CF employs 169 physicians (including specialists);182 nurses (excluding 60 in the process of completing mandatory preceptorship); 40 pharmacists; 29 social workers; 1299 med techs; and 139 physician assistants. In September 2009, the CF Health Services commissioned an independent, external costing review of the delivery of health care to CF members. This study, conducted by Public Works and Government Services Canada (PWGSC) Consulting Services, sought to determine the relative cost per capita of health services delivered to CF members compared to services provided to an equivalent Canadian population and to determine the reasons for any differences. The study identified the aggregate cost of the CF Health System to be $684M and found that the CF Health Services delivered the equivalent services at a lower cost than the Canadian health care system.
3. National Defence to conduct a comprehensive survey by 30 June 2009 of the state of mental health of CF members and the quality of mental health care services they and their families receive, with a special emphasis on those returning from overseas operations.	The Government accepts the intent of this recommendation and has already been working towards its implementation. Two surveys are currently underway as a part of a regular program to determine areas of personnel support in need of updating. The first survey, Canadian Forces Health and Lifestyle Information Survey (2008), will help determine the state of mental health in the CF, as well as develop a picture of the overall health and fitness of CF personnel. The survey contains significant emphasis on mental health issues including questions on depression, mental distress, post traumatic stress disorder and suicide. In addition there is a large section on the utilization of mental health services and patient satisfaction. The survey is sent to a random selection of CF members and will be compared to previous surveys. The survey was sent out in three cycles to take into account seasonal variations in factors such as physical activity. The first cycle was sent out in the fall of 2008. While the results of all three phases will not be ready to analyze until fall 2009, preliminary mental health results could be available by July 2009. The second survey (entitled Your Say) measures the attitudes of CF personnel and their families towards the CF and its quality of life programs. The next version of the survey will be sent to CF members in June 2009 and will contain questions to measure the availability of mental health resources for CF members and their families. Capturing the views of those returning from overseas operations is particularly important to ensuring the CF health system meets the needs of members. In addition to the two surveys, on completion of lengthy deployments, CF members receive briefings on mental health issues and have an opportunity to discuss, in private, any personal concerns with a mental health provider, including concerns related to the availability of services. Ninety to 180 days after returning to Canada, members are required to complete a detailed health questionnaire and an in-depth interview with a mental health professional to discuss any outstanding issues.	The first of the two surveys identified in the Government response, The CFHLIS (2008) has been completed and analysed. The resulting report has been produced and is going through the staffing process. Release of the final report is anticipated no later than end summer 2010.
4. National Defence to report in its annual Departmental Performance Report on the status and implementation of the Canadian Forces Health Information System, including whether the system is on budget and on time.	The Government accepts this recommendation. DND will report this information in the Fiscal Year 2009/10 Departmental Performance Report. In future years, DND will also look for other ways to make this information available to the public.	The CFHIS Project continues to be on budget and during the reporting period sought Treasury Board approval for a 23-month extension to allow the roll-out of the system to all CF clinics and ships.
5. National Defence to confirm in its annual performance report that all physicians, nurses, dentists and pharmacists are licensed to practice and that all medical technicians and physician assistants are certified. National Defence also to confirm the number of practitioners who take advantage of the Maintenance of Clinical Skills program.	The Government accepts this recommendation. DND will report this information in the Fiscal Year 2009/10 Departmental Performance Report. In future years, DND will also look for other ways to make this information available to the public.	Licenses- The National Credentialing Cell maintains a database of licensed/certified CF clinical practitioners. Maintenance of Clinical Skills Program (MCSP)- Since 2009, the MCSP Cell has instituted a detailed accounting of clinical practitioners who participated in nationally funded MCSP activities. In fiscal year 2009-10, the following participated in MCSP - Regular Force: nurses- 56 (24%); generalist physicians- 144 (78%); physician assistants-80 ( 52%); medical technicians- 152 (14%), dentists- 8 (80% of dentists in non-clinical positions). The majority of CF generalist medical officers, physiotherapists, pharmacists, social workers, dentists and dental technicians, operating room, laboratory and radiology technicians are employed in CF clinical positions where they obtain clinical practice daily. All physician specialists and most new nurse graduates work in civilian institutions and are in full-time clinical positions. Many Regular Force clinicians also participate in MCSP locally where no funding is required and these numbers are not presently captured by the National MCSP Cell. However, a MCSP Activity Evaluation Survey was implemented 1 April 2010 which all Regular and Reserve Force CF clinicians are required to complete when participating in any MCSP activity. This data will be captured in a national database to provide a true representation of MCSP participation. In preparation for deployment, all CF clinicians are required to participate in MCSP; however, their numbers are not captured under the normal MCSP due to their Operations category. Reservist clinicians normally work in their clinical environments in their civilian jobs and therefore usually only require some clinical time in a CF clinical-related environment each year to maintain military competencies for which we had 95 participants in fiscal year 2009-10. Reserve medical technicians also have a robust Unit MCSP training program in which participation is mandatory on a regular basis.
6. National Defence to develop a governance framework for its military health care system that involves senior leadership, health care providers, and Canadian Forces members using the system.	The Government accepts this recommendation. The CF is continually seeking new ways to involve members in the administration of programs. The CF will review the current CF Health System governance structure to identify possible areas for improvement, with a particular focus on the need for user and healthcare provider input. The CF has begun to address the Committee's concerns with the military health care governance system. For example, the Spectrum of Care Committee is now chaired by the Assistant Chief Military Personnel and reports to the Chief of the Defence Staff. This committee is responsible for determining the medical procedures and benefits to be made available to CF personnel. It is made up of senior leaders from Canada Command, Canadian Expeditionary Forces Command, and Canadian Special Operations Forces Command, as well as health services providers and senior leaders from Military Personnel Command. CF members in the system are represented on the Committee by their senior officers. Their views are also communicated to the Committee through the results of the Canadian Forces Health and Lifestyle Information Survey and the Your Say survey. As a result of the Spectrum of Care Committee's membership, and by raising the approval level to the Chief of the Defence Staff, the CF can now ensure that the medical system reacts to the needs of its senior leadership in implementation of Government policies and directions.	Canadian Forces Health Services is firmly embedded in a well-defined and robust command and governance structure, which is horizontally linked and vertically connected to all Defence organizations. With respect to Health Care and service to our CF members, Canadian Forces Health Services Group (CF H Svcs Gp) manages the Canadian Forces Spectrum of Care (SoC). The CF H Svcs Gp has a direct reporting function for command and control, governance, as well as business planning to CMP, recognizing and respecting the uniqueness of the CF Health Care system. Even though health services is clearly one of Defence's main lines of operation, there are also other intricate relationships for the CF H Svcs Gp within the CF framework at large, Defence and other government departments. One such example is the Surgeon General's direct linkage to the Minister of National Defence and the Chief of the Defence Staff. The CF H Svcs Gp is Canada's fourteenth healthcare system and is the life-blood of the CF, providing excellent health care to all CF members, wherever they serve.

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

Office of the Auditor General (OAG) During the reporting period the Auditor General (AG) and the Commissioner of the Environment and Sustainable Development tabled two audit reports in Parliament focused specifically on National Defence-Chapter 5 of the May 09 tabling titled "Financial Management and Control" and Chapter 5 of the November 09 tabling titled "Acquiring Military Vehicles for Use in Afghanistan". In the Chapter on "Financial Management and Control" the AG concluded that although the Department had taken steps to strengthen financial management and control, the Department could not demonstrate that these support the financial management of resources, corporate planning and decision making, especially for the medium to long term; that the implementation of Integrated Risk Management in the Department has been slow; and that the existing governance structure is not focussed on financial management. In the Chapter on "Acquiring Military Vehicles for Use in Afghanistan", for the four vehicles examined, the AG concluded that National Defence was able to quickly provide three of these vehicles to address operational needs, although not always with all required capabilities. The AG reported that one of the vehicles was two years behind schedule and that the numbers of this vehicle available for operations had been affected by an underestimation of the vehicles needed for training. The AG reported that the Department's Project Approval Guide was consistent with TB's project management policies, but that the four large, urgent projects were not managed in accordance with this Guide. These two Chapters, including departmental responses to the Auditor General's recommendations, can be accessed on the Auditor General's website at the following link: OAG Latest Audit Reports In May 09 the Auditor General also tabled "Health and Safety Issues in Federal Office Buildings". This report focused primarily on Public Works and Government Services Canada, but, in the portion of the report dealing with fire safety, also included three recommendations directed at National Defence and a number of other departments and agencies. These can also be viewed at the above web link. In November 09 the AG tabled a Chapter focused on Public Safety Canada and titled, "Emergency Management". Although DND was included in the audit along with other federal departments and agencies, no recommendations were directed at the Department. Chapter 1 of the November 09 Commissioner of the Environment and Sustainable Development report was addressed to the Canadian Environmental Assessment Agency (the Agency) and entitled, "Applying the Canadian Environmental Assessment Act". Aside from the Agency, the audit scope involved twelve other entities, including National Defence, but all recommendations were addressed at the Agency. During the reporting period, in response to the annual request by the Auditor General, National Defence provided updates on the status of all OAG audit recommendations tabled in Parliament during the five-year period 2004-05 to 2008-09.

External Audits (Note: These refer to other external audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages)

The Office of the Commissioner of Official Languages (OCOL) conducted an audit on language of instruction (LOI) in the CF and on the training management framework to determine whether the CF promotes and delivers training in the official language (OL) of its members' choice. The Commissioner made public the final report on 2 June 2010. It consists of his recommendations, the CF action plan and his response to the action. This report, including recommendations and responses, is available on the OCOL website. The OCOL had looked at the CF periodically over the past years, and certain issues linger. These include, but are not restricted to, deficiencies in strategic and operational planning leading to IT&E plans, framework and delivery of courses (courses not available in both OLs, material not available in both OLs, and a lack of bilingual instructors), and lack of integration of OLs as a vital component of career management. This audit took a comprehensive look at the LOI for all CF individual training provided to officers and non-commissioned members from all Training Authorities. The findings and recommendations that will emanate from the OCOL's final audit report will assist in improving CF OLA compliance and, ultimately, in offering all CF members the possibility of being trained in their OL of choice.

Internal Audits and Evaluations

Departments must provide a list of key internal audits that pertain to the department's work during the reporting period. Departments should also provide electronic links to completed internal audits.

Internal Audits (current reporting period)

The following table lists project that were active or completed during fiscal year 2009-10. Completed audit reports can be found at the following link: http://crs-csex.mil.ca/reports-rapports/index-eng.asp

Name of Internal Audit	Audit Type	Status	Completion Date
Internal Audit of the Fixed-Wing Search and Rescue Project	Capital Acquisition	Completed	September 2009
Internal Audit of Inventory Management: Surpluses and Disposals	Financial Management/ Asset Management	Completed	September 2009
Internal Audit of Contaminated Sites Liability	Environmental Management/Financial Management	Completed	September 2009
Internal Audit of Capital Asset Valuation	Financial Management	Completed	September 2009
Internal Audit of M113 LE Intellectual Property	Asset Management	Completed	September 2009
Review of HR Service Delivery	People Management	Completed	September 2009
Review of the TB/Ministry of National Defence Submission Process	Corporate Governance	Completed	September 2009
Management Action Plan Follow-Up of Audit of CF188 Hornet System Engineering Support Contract	Contract Management	Completed	September 2009
Management Action Plan Follow-Up of Internal Audit: Audit of CP140 Aurora Maintenance contract	Contract Management	Completed	September 2009
Risk Analysis of Contracts	Contract Management	Completed	September 2009
Selected IT Security Project Part I	Security Management	Completed	November 2009
Selected IT Security Project Part II	Security Management	Completed	November 2009
Audit Follow Up (Update): Security Clearance Process	Security Management	Completed	November 2009
Audit Follow Up (Update): Internal Audit of Security for Sensitive Inventories	Security Management	Completed	November 2009
Management Action Plan Follow-Up of Internal Audit of IT Security: Certification and Accreditation	Security Management	Completed	November 2009
Internal Audit of Minor Warships & Auxiliary Vessel In-Service Support Contract	Contract Management	Completed	February 2010
Review of the Implementation of Modern Management within the DND	Corporate Governance / Financial Management	Completed	February 2010
Risk Analysis of Information Management Projects	Information Management/ Capital Acquisition	Completed	February 2010
Audit of Financial Stewardship of the CF Housing Portfolio	Financial Management	Completed	March 2010
Management Action Plan Follow-Up: Military Moves	People Management	Completed	March 2010
Audit of Subcontractor Visibility	Contract Management	Completed	July 2010*
Audit of Civilian Leave and Absence Administration	People Management	Completed	July 2010*
Audit of Revenue Management	Financial Management	Completed	July 2010*
Audit of Contracting for Professional Services	Contract Management/ People Management	Completed	July 2010*
Audit of Security Incident Management	Security Management	Completed	July 2010*
Management Action Plan Follow-Up: Audit of CF Reserve Pay	People Management/ Financial Management	Completed	July 2010*
Audit of FMF Cape Breton Shop Consolidation	Real Property Management	Reporting	October 2010*
Audit of the Canadian Forces Pension Plan	Financial Management	Conduct	October 2010*
Audit of Contract Terms of Payment	Contract Management	Conduct	October 2010*
Audit of the Defence Sustainable Development Strategy	Environmental Management	Conduct	December 2010*
Audit of the FELEX Halifax Class Modernization Frigate Life Extension	Capital Acquisition	Conduct	December 2010*
Audit of Industrial Security	Security Management	Conduct	December 2010*
Audit of RMC Kingston	Financial Management	Conduct	December 2010*
Audit of Loaned Equipment	Asset Management	Planning	December 2010*
Management Action Plan Follow-Up: Audit of CP 140 Aurora Data Management System Contract	Contract Management	Planning	December 2010*
Health Services Recapitalization - CFB Greenwood	Real Property Management/	Planning	March 2011*
CRS IA Perspective	Other	Planning	March 2011*

Evaluations (current reporting period)

The following table lists the program evaluations that were active or completed during fiscal year 2009-10. Completed evaluations can be found at the following link: http://crs-csex.mil.ca/reports-rapports/index-eng.asp

Name of Evaluation	Program Activity	Program Type	Status	Completion Date
Promotion of Defence Diplomacy Objectives Implemented by the Military Training Assistance Programme (MTAP) (Renamed June 2010 to Military Training and Cooperation Program (MTCP))	Contribute to Canada and the international community	Summative Evaluation	Completed	April 2009
Royal Canadian Naval Benevolent Fund	Contribute to Canada and the international community	Summative Evaluation	Completed	April 2009
Contribution to the Civil Air Search and Rescue Association (CASARA)	Conduct Operations	Summative Evaluation	Completed	April 2009
Biological and Chemical Defence Review Committee (BCDRC)	Contribute to Canada and the international community	Summative Evaluation	Completed	April 2009
Conflict Management (Alternate Dispute Resolution)	Generate and Sustain Integrated Forces	Follow-Up Evaluation	Completed	July 2009
Search and Rescue New Initiatives Fund	Conduct Operations	Summative Evaluation	Completed	July 2009
Support to Ill and Injured CF Members and Their Families	Generate and Sustain Integrated Forces	Impact Evaluation	Completed	December 2009
Capital Assistance Program	Real Property and Informatics Infrastructure Acquisition and Disposal	Summative Evaluation	Completed	December 2009
Institute of Environmental Monitoring and Research	Contribute to Canada and the international community	Summative Evaluation	Completed	December 2009
Evaluation of the NATO Contribution Program	Contribute to Canada and the international community	Summative Evaluation	In Progress	December 2010
COSPAS-SARSAT	Conduct Operations	Summative Evaluation	In Progress	June 2010
Security & Defence Forum	Contribute to Canada and the international community	Summative Evaluation	In Progress	June 2010
Real Property Acquisition & Disposal	Real Property and Informatics Infrastructure Acquisition and Disposal	Impact Evaluation	In Progress	December 2010
Situational Awareness	Conduct Operations	Impact Evaluation	In Progress	December 2010
Land Training	Generate and Sustain Integrated Forces	Impact Evaluation	In Progress	December 2010
CF Recruitment & Absorption Strategy	Generate and Sustain Integrated Forces	Impact Evaluation	In Progress	March 2011
Policing and Security Vancouver 2010 Olympics	Conduct Operations	Summative Evaluation (RCMP-led)	In Progress	March 2011