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TABLE 8: STATUS REPORT ON MAJOR CROWN PROJECTS
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)
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)
LIGHT UTILITY VEHICLE WHEELED (LUVW)
LIGHTWEIGHT TOWED HOWITZER (LWTH)
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)
AIRLIFT CAPABILITY PROJECT – STRATEGIC (ACP-S)
Description: The objective of the Airlift Capability Project - Strategic is to acquire four new aircraft that will provide the global reach and speed necessary to operate effectively over long distances to deliver personnel and cargo directly into a theatre of operations, including a threat environment.
Project Phase: Implementation. All four aircrafts have been accepted on schedule and Close-Out is expected for Spring 2010.
| Lead Department or Agency | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and its Regional Agencies |
| Prime Contractor | The Boeing Company, St-Louis, Missouri, USA |
| Major Milestone | Date |
|---|---|
| Synopsis Sheet (Effective Project Approval) | June 2006 |
| Advanced Contract Award Notice Posted on MERX | July 2006 |
| Contract Award | February 2007 |
| Delivery First Aircraft | August 2007 |
| Delivery Second Aircraft | October 2007 |
| Delivery Third Aircraft | March 2008 |
| Delivery Fourth Aircraft | April 2008 |
| Initial Operational Capability (IOC) | October 2008 |
| Full Operational Capability (FOC) | Summer 2009 |
| Project Close-out | Spring 2010 |
Progress Report and Explanations of Variances: The project received Effective Project Approval from Treasury Board in June 2006 for the purchase of four Strategic aircraft, setup of in-service support for 20 years, ancillary contracts and project office. The contract with the Boeing Company for the Direct Sales Contract was established in February 2007. A Foreign Military Sales case for worldwide in-service support was established in January 2007 through the United States Air Force to Boeing. All four aircrafts have been accepted on schedule and have already completed several operational missions. The project office is currently working on the Implementation Phase in support of this acquisition.
Industrial Benefits: Industrial and Regional Benefits (IRBs) are equivalent to 100% of the acquisition contract, Boeing's share of the in-service support Foreign Military Sales contract value and the value of the engines. (A separate IRB agreement was negotiated with Pratt and Whitney USA for the value of the engines for the C-17). The three IRB agreements total $1.9B. Several IRB announcements have been made and all regions of Canada will benefit from these contracts.
AIRLIFT CAPABILITY PROJECT – TACTICAL (ACP-T)
Description: The objective of the Airlift Capability Project – Tactical is to ensure a continued tactical airlift capability. In combination with the Fixed Wing Search and Rescue project, this project will replace the Canadian Forces’ ageing CC 130E/H Hercules fleet. This project will provide the Canadian Forces with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.
Project Phase: Implementation. The ACP-T project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 C-130J-30 aircraft. Aircraft deliveries will commence no later than December 2010, with the final aircraft delivered no later than December 2012.
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | Lockheed Martin Corporation, Marietta, Georgia, USA |
| Major Milestone | Date |
|---|---|
| Revised Preliminary Project Approval (PPA) | June 2006 |
| Solicitation of Interest and Qualification (SOIQ) | August 2006 |
| Issue of Request For Proposal (RFP) | August 2007 |
| Effective Project Approval | December 2007 |
| Contract Award | December 2007 |
| First Aircraft Delivery | Fall/Winter 2010 |
| Initial Operational Capability (IOC) | Fall 2011 |
| Full Operational Capability (FOC) | Winter 2013/2014 |
| Project Close-out | Spring 2014 |
Progress Report and Explanations of Variances: Under the agreement of the December 2007 contract award, Lockheed Martin Corporation is required to undertake an open and fair competitive solicitation for the provision of in-service support. The outcome of this Contractor-led solicitation would be one of many deliverables from the contract and will form the basis of a negotiation for amendments to the contract to include in-service support provisions. The in-service support effort will include contractor provided support to: logistics, engineering, maintenance, material, publications, maintenance training, test equipment and electronic information environment.
The ACP-T project is currently running on schedule and on budget.
Industrial and Regional Benefits: This procurement will provide industrial regional benefits equivalent to 100% of the contracted value for both the capital acquisition and in-service support. For the in-service support portion, 75% of the contract value will be direct work performed by Canadian companies. Lockheed Martin Corporation will be required to identify, as specific work packages, 60% of the total acquisition commitment. These Industrial and Regional Benefits requirements will be negotiated and accepted by Industry Canada prior to the in-service support contract amendment signing.
ARCTIC/OFFSHORE PATROL SHIP (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 assert and enforce sovereignty in Canada’s waters including the Arctic. When the project completes, the six to eight fully supported AOPS delivered to the Canadian Forces will be capable of:
- Conducting armed, sea-borne surveillance of Canada's waters, including the Arctic;
- Providing to Government situational awareness of activities and events in these regions; and
- Cooperating with other elements of the Canadian Forces and other Federal Government departments to assert and enforce Canadian sovereignty, when and where necessary.
Project Phase: Definition/Implementation
| Lead Department or Agency | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and the regional agencies |
Prime and Major Sub-Contractors
No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval, planned for July 2010.
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval | May 2007 |
| Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP) | December 2007 |
| DELMS RFP Close | February 2008 |
| DELMS Contract Award | May 2008 |
| Effective Project Approval (SS(EPA)) | July 2010 |
| Award of Implementation Contract | August 2010 |
| Delivery of First Ship | Fall 2014 |
| Initial Operating Capability (IOC) of First Ship | March 2015 |
| Project Complete | March 2021 |
Progress Report and Explanations of Variances: The project continues to progress steadily since obtaining Preliminary Project Approval in May 2007. Treasury Board granted expenditure authority of $42.465M ($BY), full up including GST, for Definition Phase. Treasury Board also acknowledged the indicative full up cost of $3,231.7M ($BY) including GST, for acquisition. So far, no variances in cost estimates have been identified.
Industrial and Regional Benefits: Industrial and Regional Benefits (IRBs) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.
ARMOURED PERSONNEL CARRIERS (APC)
Description: The Armoured Personnel Carrier (APC) is essential for all foreseeable Canadian Forces roles, including territorial defence, UN peacekeeping and peace enforcement operations, other international commitments, and Aid of the Civil Power. The existing APC fleet does not meet the minimum operational requirements when compared to the modern, technically sophisticated weapons and vehicles Canadian soldiers encounter during operations. They suffer shortcomings in protection, self-defence capability, mobility, carrying capacity and growth potential. The APC Project is fielding a fleet of modern, wheeled, armoured personnel carriers. 651 Light Armoured Vehicles (LAV) III are to be procured in six configurations: Infantry Section Carrier, Command Post, Engineer, Forward Observation Officer, and TOW (Tube Launched, Optically Tracked, Wire Guided) Under Armour, and LAV III Less Kits.
Project Phase: Implementation. All vehicles were delivered by October 2007 and construction activities for indoor accommodation are well under way. The project is scheduled for completion in March 2011.
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | General Dynamics Land Systems - Canada, London, ON |
| 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 2011 |
Progress Report and Explanation of Variances: In August 1995, the Government approved in principle the procurement of up to 651 APCs. In January 1997, the Government announced the award of a contract to General Dynamics Land Systems – Canada (GDLS-C) to build 240 new eight-wheel-drive APCs. The contract contained three options for an additional 120, 120 and 171 APCs. All three options have been exercised. All vehicles were delivered by October 2007.
The vehicles have been involved in significant operational demands after being fielded and have performed well. They have since undergone a number of modifications to adjust to the modern threat, and will require additional work to optimize performance against these threats. Planning is currently underway to address this issue.
In March 2004, Treasury Board authorized $129M for indoor accommodation for LAV III to facilitate regular maintenance and training programs, and prevent any deterioration that would result from outdoor storage. Construction will take place in six locations: Edmonton, Wainwright, Petawawa, Montréal, Valcartier, and Gagetown. Construction activities are wellunder way and are scheduled for completion in early 2011. The project can then close in March 2011.
Industrial Benefits: This project includes the following overall industrial benefits, and regional and small business achievements:
| Content | Benefits |
|---|---|
| Direct |
$852.9M |
| Indirect |
$742.9M |
| Total |
$1,595.8M |
|
Regional And Small Business |
Benefits |
| Atlantic Canada |
$151.4M |
| Québec |
$150.6M |
| Western Canada |
$155.0M |
| Small Business |
$210.3M |
CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM (CCMP)
Description: The Canadian Cryptographic Modernization Program (CCMP) is a 12-year program (fiscal year 2004-2005 to 2015-2016) that will modernize the Government of Canada’s aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada’s ability to establish secure communications both nationally and internationally. The CCMP Omnibus Project includes the following sub-projects:
- Secure Voice / Telephone Re-key Infrastructure
- Secure Voice / Telephone Family
- Classified Security Management Infrastructure (CSMI)
- Combat Identification Family
- Link Encryption Family
- Network Encryption Family
- Secure Radio Family
- Secure Mobile Environment
Project Phase: Implementation for some sub-projects and Definition for others.
| Lead Department | Communications Security Establishment Canada (CSEC) |
| Contracting Authority | Public Works & Government Services Canada (PWGSC) |
| Participating Departments & Agencies | Government of Canada departments & agencies using cryptographic equipment to protect classified information |
| Prime Contractor | N/A |
| Major Sub-Contractors | Various allied manufacturers of cryptographic equipment |
| Project / Sub-project Major Milestone |
Date |
| a. Preliminary Project Approval for the CCMP Omnibus Project | March 2005 |
| b. Preliminary Project Approval for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure | November 2006 |
| c. Preliminary Project Approval for Classified Security Management Infrastructure Phase 1B Implementation and Phase 2 Definition | February 2008 |
| d. Secure Voice/Telephone Re-key Infrastructure – Completed | 2009 |
| e. Classified Security Management Infrastructure – Phase 1A Completed | 2010 |
| f. Classified Security Management Infrastructure – Phase 1B Completed | 2011 |
| g. Secure Voice/Telephone Family – Completed | 2011 |
| h. Network Encryption Family – Completed | 2011 |
| i. Secure Mobile Environment – Completed | 2012 |
| j. Link Encryption Family – Completed | 2013 |
| k. Classified Security Management Infrastructure – Phase 2 Completed | 2014 |
| l. Classified Security Management Infrastructure – Phase 3 Completed | 2016 |
| m. Combat Identification Family – Completed | 2016 |
| n. Secure Radio Family – Completed | 2016 |
| o. CCMP Omnibus Project – Completed | 2016 |
Progress Report and Explanations of Variances: In June 2007, the CCMP Senior Project Advisory Committee (SPAC) approved incorporating the Secure Mobile Environment sub-project into the CCMP Omnibus project. This did not increase the CCMP funding envelope.
The following completion dates have changed from those recorded in the CCMP Omnibus Project PPA approved in March 2005. These changes were approved by the CCMP SPAC.
- Secure Voice Re-key Infrastructure project closure was moved from June 2007 to June 2009 when the scope of the project was expanded to include a new capability.
- Secure Voice/Telephone Family was completed for the majority of Government of Canada departments and agencies by September 2007; however, the end date has been moved to 2011 to ensure the coordination of additional software upgrades that the new secure phones require for interoperability and improved information protection.
- The timeline for the Link Encryption Family, originally planned in two Phases to be completed in 2016, has been compressed into one Phase to be completed in 2013. This will result in equipment replacements being completed ahead of schedule.
- The CCMP schedule is dependent on the US Crypto Modernization and Key Management Infrastructure Programs. Completion dates for the Combat Identification Family and Phases 2 & 3 of the Classified Security Management Infrastructure will be reviewed to keep them aligned with the US programs.
The CCMP is executing within its budget.
Industrial Benefits: N/A
CANADIAN FORCES SUPPLY SYSTEM UPGRADE (CFSSU)
Description: The Canadian Forces Supply System Upgrade (CFSSU) project will meet the future supply requirements of the Canadian Forces during all operational situations while effectively and economically managing the Department of National Defence inventory. The system will have an inherent flexibility to manage changes in force structure, size and all types of missions. The CFSSU project will employ information technology to modernize Canadian Forces military supply operations. Not only will this technology dramatically improve productivity, it will also enhance the capability for performance measurement, greatly increase asset visibility, and provide a powerful management tool for provisioning. Additionally, the new supply system will have a deployed capability. The deployed solution is complementing the existing September 2001 corporate implementation to Bases and Wings, as well as the November 2002 implementation, which include all remaining CFSS users, at home and overseas.
Project Phase: Close-Out. CFSS Deployed has been implemented on 17 ships as well as at two sites for CANSOFCOM.
| Lead Department or Agency | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | EDS Canada Inc. Ottawa, Ontario, Canada |
| Major Sub-Contractors |
Mincom Pty. Ltd. Brisbane, Australia ADGA Group Ottawa, Ontario, Canada |
| 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 2009 |
Progress Report and Explanations of Variances: Treasury Board initially approved the CFSSU project with an estimated cost of $289.3M. The Treasury Board approved in April 2000, the de-scoping of certain functionality and an increase to project contingency funding of $9.8M. In addition, $5M was approved in order to permit DND the option of restoring the Distribution Resource Planning (DRP) component. The Implementation Phase of DRP was de-scoped and the project budget remained at $304.1M.
The CFSSU Project has been transferred from implementation to Close-out in September 2004. Close-out funding is $3.6M. On March 9, 2006, DND Program Management Board approved the usage of Close-out funds for the project; these funds are to be used until fully expended or the work is completed.
The CFSSU project is to be completed prior to Spring 2009.
| Region | Benefits |
|---|---|
| Atlantic Canada |
$51M |
| Québec |
$48M |
| Ontario |
$26M |
| Western Canada |
$105M |
| Unallocated |
$10M |
| Total |
$240M |
CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER (CFUTTH) PROJECT
Description: The purpose of the Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project is to acquire helicopters in support of national and international tactical aviation roles. The project supports the Land Force, Air Force, Canadian Expeditionary Force Command (CEFCOM) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. It has replaced three aging helicopter fleets – the CH118 Iroquois, the CH135 Twin Huey and the CH136 Kiowa. The Bell 412CF/CH146 was procured as a single role multi-mission helicopter capable of supporting a majority of the tasks previously undertaken by fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements to include the tactical lift of troops, logistical lift, reconnaissance and surveillance, direction and control of fire, aero-medical support and casualty evacuation, command and liaison, and communications assistance. These mission capabilities are employed in support of DND operational commitments, United Nations peacekeeping missions, and support to other Government Departments and Agencies, including aid of the civil power.
Project Phase: Implementation. The project has delivered 100 Bell 412CF/CH146 Griffons, a flight simulator, composite maintenance trainer, facilities, mission kits (including defence electronic warfare suites), as well as other equipment, documentation and services. It is scheduled for completion in November 2009.
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Department | Industry Canada and its regional agencies |
| Prime Contractor | Bell Helicopter Textron Canada, Mirabel, QC |
| Major Sub-Contractors |
Pratt & Whitney Canada, Montréal, QC BAE Systems Canada Inc., Montréal, QC CAE Ltd., Montréal, QC |
| Major Milestone | Date |
|---|---|
| Contract Award | September 1992 |
| Critical Design Review | April 1993 |
| First Helicopter Delivery | March 1995 |
| Simulator Acceptance | June 1996 |
| Last Helicopter Delivery | December 1997 |
| Project Completion | November 2009 |
Progress Report and Explanation of Variances: This project received Government approval in April 1992 and Treasury Board approval in September 1992, with an original budget of $1.293B. Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in November 2009 for approximately $200M less than the initial Treasury Board budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver (RLWR) functionality as well as the implementation of the Single-Channel Ground and Airborne Radio System (SINCGARS) capability.
Industrial Benefits: To date, Bell Helicopter has claimed $289.5M direct and $252.1M indirect industrial regional benefits, totalling $541.6M, representing 107% of the overall commitment. Bell Helicopter Textron Canada has committed to achieving $506.7M in Canadian value-added industrial regional benefits as follows:
| Region | Cash Benefits |
|---|---|
| East |
$10.0M |
| Québec |
$420.2M |
| Ontario |
$32.1M |
| West |
$12.0M |
| Unallocated |
$32.4M |
| Total |
$506.7M |
CANADIAN SEARCH AND RESCUE HELICOPTER (CSH) PROJECT
Description: Maintaining a national search and rescue capability is a direct departmental objective. The purpose of the Canadian Search and Rescue Helicopter (CSH) project was to replace the CH-113 Labradors with a fleet of 15 new helicopters. The new helicopters have addressed the operational deficiencies of the CH-113 Labrador fleet and eliminated the supportability difficulties of the older airframes. Given expected aircraft availability rates and a sufficient fleet size, continuous operations are anticipated well into the 21st century.
Project Phase: Completed. As of July 2003, all 15 Cormorant helicopters have been delivered. Spare parts and infrastructure are in place to support operations. Initial training is complete. Effective Project Closure was achieved on the September 15, 2004, but some work is still ongoing and full completion is not expected before 2013.
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Department | Industry Canada and its regional agencies |
| Prime Contractor |
Agusta Westland International Limited (formerly E.H. Industries Ltd. (EHI)), Farnborough, United Kingdom |
| Major Sub-Contractors |
GKN Westland Helicopters, United Kingdom Agusta Spa, Italy General Electric Canada Inc., Canada |
| Major Milestone | Date |
|---|---|
| Treasury Board Effective Project Approval | April 1998 |
| Contract Award | April 1998 |
| First Aircraft Delivery (at plant in Italy) | September 2001 |
| Final Aircraft Delivery (at plant in Italy) | July 2003 |
| Project Completion (Effective Project Completion) | September 2004 |
Progress Report and Explanation of Variances: The project has procured the required aircraft spares, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for the four Canadian Forces search and rescue bases. The project has also established and funded the first two years of an in-service support contractor for follow-on support.
The Cormorant has been operational at the squadrons in Comox, BC, Gander, NF, Greenwood, NS and Trenton, ON. However, CH149 operations at 424 Squadron in Trenton have been suspended temporarily due to the lack of aircraft availability and difficulty to maintain adequate aircrew training.
It should be noted that although Effective Project Closure was achieved on the September 15, 2004, some work is still ongoing and full completion is not expected before 2013. The milestones still outstanding are tied to a three year Technical Publication Revision Service which is not expected to begin until fiscal year 2012-2013, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least two years to address.
Industrial and Regional Benefits: The contractor (AWIL) committed to providing direct and indirect industrial benefits valued at $629.8M, within eight years from the date of contract award. It is estimated that these benefits created or sustained roughly 5,000 person-years of employment in Canada, and that all regions of Canada benefited from this project. The contractor has completed its obligations to Canada in regard to Industrial and Regional Benefits under the CSH contract. Small businesses in Canada will also benefit from the project by the placing of $67.0M in orders.
| Region | Cash Benefits |
|---|---|
| Atlantic Canada |
$43.1M |
| Québec |
$317.7M |
| Ontario |
$146.5M |
| Western Canada |
$86.2M |
| Unallocated |
$36.3M |
| Total |
$629.8M |
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 CC115 Buffalo and CC130 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.
| Lead Department | National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Department | Industry Canada |
| Prime Contractor | TBD |
|
Major Milestone |
Date |
| Preliminary Project Approval (PPA) | Spring/Summer 2009 |
| Effective Project Approval (EPA) | Spring 2010 |
| Contract Award | Spring/ Summer 2010 |
| First aircraft delivery | Spring/ Summer 2013 |
| Last aircraft delivery | Spring/Summer 2015 |
| Project Closure | Spring/Summer 2017 |
Progress Report and Explanations of Variances:The Definition Phase of the FWSAR project will start as soon as Preliminary Project Approval is received from TB.
Industrial 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, PM HCM/FELEX is responsible for the ship level design integration of all elements of the HCM including any unique/specific engineering changes required to address integration requirements. To ensure that the overall modernization initiative is achieved in a timely, efficient and coordinated manner, the HCM/FELEX project will conduct overall design integration, coordinate schedules, manage inter-project risk, and manage equipment installation during the mid-life refits. Major equipment acquisitions through HCM/FELEX will include a modernized Command and Control System, Multi-Link, Identification Friend or Foe Mode S/5, upgrades to the radars, new Electronic Support Measures System, upgrades to the Internal Communications system, and an upgraded Harpoon Weapon System. These acquisitions will both sustain current capability and contribute to the new littoral operations role of the HALIFAX Class.
Project Phase: Implementation. Implementation of the HCM/FELEX project will occur through three principal contracts: two Multi-Ship Contracts (MSC) for docking work periods/refits and one Combat System Integration (CSI) contract to develop, procure and install the majority of the combat system elements of the project. Project completion is expected by January 2019.
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works & Government Services Canada |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| In-Service Support Contractor (Class Design Agent) | Fleetway Incorporated, Halifax, NS, Canada |
| Internal Communications System | DRS Flight Safety, Kanata, ON, Canada |
| Multi-Ship Contract (East) | Halifax Shipyard, Halifax, NS, Canada |
| Multi-Ship Contract (West) | Victoria Shipyard, Victoria, BC, Canada |
| Combat System Integration Contract | Lockheed Martin Canada, Montréal, QC, Canada |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval (PPA) Approval |
February 2005 (FELEX) February 2007 (HCM/FELEX) |
| Refit Procurement Strategy Approval by TB | March 2007 |
| Revised Preliminary Project Approval (Part 1) | June 2007 |
| Multi-Ship Contracts (MSC) Awarded (Docking Work Periods & Refits) |
March 2008 (West) March 2008 (East) |
| Effective Project Approval (EPA) Approval (Part 2) | September 2008 |
| Combat System Integration Contract Award | November 2008 |
| Refits Begin | October 2010 |
| Full Operational Capability | January 2018 |
| Project Closure | January 2019 |
Progress Report and Explanation of Variances: In September 2008, Treasury Board granted Effective Project Approval and Expenditure Authority for the project. The total full-up project value, including GST, is $2,998M (BY).
Three qualified contractors were selected to receive Request For Proposals through a Solicitation of Interest Qualification process. During the RFP process, two of the potential bidders withdrew from the competition. The sole bid, from Lockheed Martin Canada (LMC), was compliant with all mandatory requirements and a risk assessment of its proposal indicated no unacceptable risks. The CSI contract was awarded to LMC in November 2008.
The HCM/FELEX Project is presently in its implementation phase and is currently within budget.
A Request for Proposal for the Multi-Ship Contracts (docking work periods and refits) resulted in two successful bidders, Halifax Shipyard on the east coast and Washington Marine Group (Victoria Shipyard) on the west coast. Contracts were awarded to the two shipyards on 17 and 31 March 2008.
Industrial and Regional Benefits: Industrial and Regional Benefits (IRBs) for this project are equivalent to 100% of the contracted value.
INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE (ISTAR)
Description: ISTAR is an omnibus project that received Treasury Board approval for definition phase activity in April 2003. The purpose of this project is to develop, deliver and evolve an integrated, interoperable, ISTAR capability that will improve the ability of commanders to visualize the operational area, manage sensors and information collection resources, and to plan and implement actions to successfully complete operational missions. The project will provide enhancements to existing capabilities and include the acquisition of new capabilities in the areas of communications, command and control and sensors. The project includes the acquisition of Unmanned Aerial Vehicles (UAV), Weapon Locating Sensors (WLS) and transformation or enhancement of existing sensor platforms to include Electronic Warfare (EW), Light Armoured Vehicle III, Coyote Reconnaissance Vehicle, Ground Based Air Defence, Geomatic support and Tactical Meteorology Systems.
Project Phase: Implementation. Early deliveries of ISTAR capabilities for Op ARCHER will continue during 2009 and the first sub-projects have achieved Full Operational Capability (FOC) in 2008 and are closing in 2009.
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works & Government Services Canada |
| Participating Department | Industry Canada and its regional agencies |
| Prime Contractor for the UAV UOR Op Athena sub-project | Oerlikon Contraves Inc., Saint-Jean, QC |
| Major Sub-Contractor for the UAV UOR Op Athena sub-project | SAGEM SA, France |
| Prime Contractor for Beyond Line of Sight Satellite (BLOS) UOR Op ARCHER | ND Satcom, Germany |
| Prime Contractors for Mobile Electronic Warfare Team (MEWT) UOR Op ARCHER |
Agilent Technologies, Ottawa, ON Digital Receiver Technology Inc, Maryland USA Signal Technology Associates Inc., Kanata, ON |
| Prime Contractor for Mini UAV UOR Op ARCHER | Thales Canada, Ottawa, ON |
| Major Sub-contractor for the Mini UAV UOR Op ARCHER | Elbit Systems, Israel |
| Prime Contractor for Acoustic Weapon Locating System (AWLS) Op ARCHER | SELEX Sensors & Airborne Systems Ltd, Basildon Essex, United Kingdom |
| Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales (FMS) | US Army, USA |
| Light Weight Counter Mortar Radars (LCMR) – Foreign Military Sales (FMS) | US Army, USA |
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval | April 2003 |
| MND Approval TUAV Unforcasted Operational Requirements (UOR) | July 2003 |
|
Treasury Board Project Approval in Arrears UAV UOR Full Operational Capability Close-out |
August 2005 April 2008 February 2009 |
|
Communications & Data Link Component Treasury Board Effective Project Approval Initial Operational Capability |
December 2006 October 2009 |
|
Command and Control (C2) Treasury Board Effective Project Approval Initial Operational Capability |
February 2008 October 2009 |
|
EW Sensors Treasury Board Effective Project Approval Phase 1 Amendment 1 (AL 1) Initial Operational Capability Full Operational Capability |
November 2005 February 2008 March 2008 January 2013 |
| In Service Sensors Enhancement Treasury Board Effective Project Approval | October 2009 |
| Medium Range Radar Treasury Board Effective Project Approval | March 2010 |
|
WLS Acoustic Sensor Initial Operation Capability (IOC) Full Operational Capability |
November 2005 March 2008 March 2009 |
|
Family of Mini UAV Treasury Board Effective Project Approval (UOR) Family of Mini UAV Treasury Board Effective Project Approval AL 1 |
November 2005 October 2009 |
|
Light Weight Counter Mortar Radar Effective Project Approval Initial Operation Capability (IOC) Full Operational Capability (FOC) |
March 2007 March 2008 December 2009 |
| Deliveries Complete all ISTAR sub-projects | September 2013 |
| Project Completion | March 2014 |
Progress Report and Explanations of Variances: ISTAR project staff is still managing the UOR procurement for Op ATHENA and Op ARCHER. The approval process is taking longer than forecasted. However, deliveries after effective approval are either on schedule or ahead of schedule. ISTAR initial operational capabilities have been procured and the overall project is expected to complete on the original schedule.
Delivery of equipment actually started with UORs in Op Athena, and final deliveries are scheduled out to 2013. The currently approved sub-projects in support of Op Athena and Op Archer are:
- UAV UOR Op Athena
- BLOS Op Archer
- MEWT Op Archer
- Mini UAV UOR Op Archer
- AWLS Op Archer
- LCMR Op ATHENA
- Remote Viewing Terminal Op ATHENA
In addition, the Data Link Communications project received TB approval in December 2006 and PWGSC received TB contract approval for radios in February 2007. The FMS cases for 1,300 radios have been accepted and initialdelivery of equipment started in August 2008. In February 2008, TB approved the ISTAR Electronic Warfare and Command and Control sub-projects. Implementation has now started.
Industrial Benefits: Industrial benefits from the ISTAR project to Canadian industry in Canada will be determined during the approval of the implementation procurement strategy for each sub-project.
JOINT SUPPORT SHIP (JSS)
Description: The JSS will maintain the Canadian Navy’s current naval task group logistic support, while ensuring that the Canadian Forces has an adequate, assured strategic sealift capability to allow it to deploy and sustain operations in support of government policy. It will also enhance Canada's capability for joint command and control of forces ashore. The ships will replace the two ageing Protecteur class support ships currently in service on the east and west coast.
Project Phase: Definition/Implementation
| Lead Department or Agency | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and the regional agencies |
Prime and Major Sub-Contractors: No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval.
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval - (PPA) | November 2004 |
| Invitation for Bids Posted on MERX | June 2006 |
| Project Definition – Contract Award | December 2006 |
| Preliminary Options Analysis | Ongoing |
Progress Report and Explanations of Variances: On 22 August 2008, the Minister of Public Works and Government Services Canada (PWGSC) announced the termination of the procurement process to acquire three Joint Support Ships.
After receiving and evaluating the mandatory requirements for the Joint Support Ship Project from the bidders, the Crown has determined that both proposals were not compliant with the basic terms of the Request for Proposals (RFP). Among other non-compliances, both bids were significantly over the established budget provisions of $1,575B for the Project Implementation (PI) Contract for the delivery of the JSS capability (3 ships).
The project will not be able to meet the original delivery dates for Initial Operational Capability (IOC) and Full Operational Capability (FOC) as planned (2013 and 2016 respectively).
PMO JSS staff is currently performing preliminary Options Analysis in support of the decision best suited to the procurement of Joint Support Ships. The analysis, of fundamental importance to progressing the project, entails a review of capability requirements, cost, and the resulting impact on technical specifications and schedule.
Industrial and Regional Benefits: Industrial and Regional Benefits (IRBs) for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.
LIGHT UTILITY VEHICLE WHEELED (LUVW)
Description: Light utility vehicles are highly mobile and essential to facilitating the tactical command of combat, combat support and combat service support units, to assist in the gathering and dissemination of information and to liaise within and between field formations.
The LUVW Project mandate is to replace Canadian Iltis vehicles with two separate vehicle acquisitions: 1,159 Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and 170 Armour Protection Systems ($241.4M), for use by field force units; and 1,061 Militarized Commercial Off-The-Shelf (Mil COTS) vehicles (GM Silverado) ($65.4M) for use primarily by the Reserve Force for a total project cost of $306.8M.
Project Phase: Implementation
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Department | Industry Canada and its regional agencies |
| Prime Contractor (Phase 1) SMP | Mercedes-Benz Canada (MBC), Toronto, ON |
| Prime Contractor (Phase 2) Mil-COTS | General Motors Defense Military Trucks, Troy, Michigan, USA |
| Major Milestone (Phase 1) SMP |
Date |
| Award of Contract | October 2003 |
| First Full Production Delivery | February 2004 |
| Final Production Delivery | November 2006 |
| Effective Project Completion | November 2009 |
| Major Milestone (Phase 2) Mil COTS | |
| Award of Contract | October 2002 |
| First Full Production Delivery | October 2003 |
| Final Production Delivery | December 2004 |
| Effective Project Completion | November 2009 |
Progress Report and Explanation of Variances: The project is in full Implementation. Outstanding issues are Amendment 2 to the SMP production contract and delivery of the Mil COTS battery disconnect switch kits. The amendment to the SMP production contract is required to reflect the costs resulting from Design Change Requests (DCRs), as well as additional ILS publication requirements. A contract valued at $1.71M (incl GST) was awarded to Kerr Industries on July 23, 2008 for the delivery of 1,061 battery disconnect switch kits. These kits are required to isolate the electrical system and associated parasitic loads from draining the batteries when the vehicles are not in use. Final delivery is scheduled for March 31, 2009, but it is anticipated that Canadian Forces (CF) Reserve units will not have the last of these kits installed by their local GMC dealership until November 1, 2009.
A contract valued at $1.87M (incl GST) for Special Tools and Test Equipment (STTE) was awarded to MBC on November 19, 2008. Final delivery for STTE is scheduled for March 31, 2009. It is anticipated that FOC will be declared by July 31, 2009, after all the STTE have been delivered to base maintenance facilities. Once FOC has been declared, the project will begin the close-out process with effective project closure scheduled by November 1, 2009 to coincide with the final installation of the Mil COTS battery disconnect switch kits. Even with the above mentioned changes, the project is scheduled to close under the allocated funding of $298.4M.
The vehicle fleet has been affected by body cracks and inferior weapons station design and quality issues. An agreement was reached to address vehicles with body cracks and those potentially at risk of developing future cracks. Mercedes-Benz Canada has initiated a redesign of the weapons station to address these deficiencies, with the first two prototypes completed in January 2009.
It is expected that the Long Term Support Contract (LTSC) will be awarded by June 2009. The anticipated total value of the contract (one five year term, with two optional five years terms) is $99.9M (incl GST).
Industrial Benefits: The industrial benefits are required for Phase 1 for a value 100% of the contract value. Latest report from Industry Canada indicates that Mercedes Benz Canada has exceeded the industrial regional benefit goals by $300M. There are no mandated industrial benefits for the Mil COTS contract. Industry Canada is working with MBC to identify regional components of the Industrial and Regional Benefits (IRBs) program under the Initial Support Contract (ISC). There will be an IRB requirement in the LTSC in the amount of 100% of the contract value.
LIGHTWEIGHT TOWED HOWITZER (LWTH)
Description:The Lightweight Towed Howitzer (LWTH) project is an element of the act domain in the Canadian Forces. This project will bridge a key facet of the Army’s current indirect fire capability deficiency. Specifically, the project will field twenty-five (25) M777 lightweight 155mm towed howitzers, each with a Digital Gun Management System (DGMS), and supported by improved ammunition and a modern truck. These howitzers will augment the 12 M777 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 Canadian Forces.
Project Phase: Definition. The LWTH project entered the Definition Phase with the approval of Treasury Board on June 5, 2008. Expenditure and contracting authority were also delegated to DND and PWGSC respectively for the M777 and DGMS acquisitions.
| Lead Department or Agency | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and the regional agencies |
| Prime Contractor | BAE Systems, Barrow-in-Furrow, Cumbria, United Kingdom |
| Major Subcontractor(s) | SELEX Sensor and Airborne Systems Ltd, Edinburgh, United Kingdom |
| Major Milestone | Date |
|---|---|
| Identification Phase Approval – Identification Phase | January 2008 |
| Preliminary Project Approval – Definition Phase | June 2008 |
| M777 Foreign Military Sale (FMS) Agreement | November 2008 |
| DGMS Contract Award (Planned) | April 2009 |
| Effective Project Approval – Implementation Phase | June 2009 |
| Initial Operational Capability | April 2011 |
| Final Operation Capability | December 2012 |
| Project Close-Out | June 2013 |
Progress Report and Explanations of Variances: Treasury Board approved the indicative total project cost of $278.282M (all costs are $BY including GST) in June 2008. At the same time expenditure authority of $3.466M was granted for the Definition Phase, $106.898M to acquire the M777 (including ancillary equipment and services), and $25.302M to acquire the Digital Gun Management System (including support).
The FMS Letter of Offer and Agreement (LOA) to procure 25 M777 howitzers and support equipment was signed in November 2008. Contracting work for the DGMS is ongoing and award is planned for April 2009.
The project intends to return to TB in 2009 for Effective Project Approval, which will include three components: M777 support, truck, and ammunition.
There are no cost variances to report.
Industrial Benefits: This procurement will provide industrial regional benefits for the capital acquisition of the howitzer and DGMS. These Industrial and Regional Benefits requirements will be negotiated and accepted by Industry Canada prior to contract award.
MAIN BATTLE TANK (MBT)
Description: The purpose of the Tank Replacement Project is to replace Canada's aging Leopard C2 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The Tank Replacement Project is divided into two phases. Phase 1 consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT), two Armoured Recovery Vehicles (ARV) and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBT from the Netherlands Government. Phase 2 consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 tanks and armoured recovery vehicles into service with the CF.
Project Phase: Implementation. The project received Treasury Board (TB) approval for Phase 1 in March 2007 and will return to TB to seek Effective Project Approval (EPA) for Phase 2. The project is capped at $650M.
| Lead Department or Agency | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor for ARV upgrades Phase 1 | Rheinmetall Landsysteme (RLS), Germany |
|
Prime Contractor for MBT upgrades Phase 1 |
Krauss-Maffei Wegmann (KMW), Germany |
| Prime Contractor for loaned tanks | German Government |
| Prime Contractor for tank purchase | Netherlands Government |
| Logistic Support Arrangement | German Government |
| Phase 2 Contract(s) for MBT repair, overhaul, upgrades and ARV conversion. | TBD |
| Major Milestone | Date |
|---|---|
| Treasury Board - Preliminary Project Approval (PPA) | March 2007 |
| Phase 1 – Loan Agreement with German MoD | May 2007 |
| Phase 1 - Contract to KMW for upgrades to Loaned tanks | May 2007 |
| Phase 1 - Contract to RLS for upgrades to Loaned tanks | May 2007 |
| Initial Operational Capability – (Phase 1) | August 2007 |
| Phase 1 - Acquisition of tanks from Dutch Government | December 2007 |
| Letter of Interest | April 2008 |
| PPA Amendment approved by TB | June 2008 |
| Price and Availability | February 2009 |
| Treasury Board - Effective Project Approval (EPA) | June-July 2009 |
| Full Operational Capability – (Phase 2) | December 2012 |
| Project Closed-Out | December 2014 |
Progress Report and Explanations of Variances: The imperative to upgrade and deploy the borrowed tanks into Afghanistan to meet the July 2007 Initial Operational Capability (IOC) date required some performance trade-offs. Time was insufficient to develop, qualify, and implement a new passive armour solution and as a result, the 20 borrowed tanks deployed with new slat armour. Time was also insufficient to install air conditioning therefore a crew cooling vest solution was developed and implemented. Some Leopard 1 C2 tanks for use with implements remain in theatre as the Leopard 2 tanks are not designed to accept mine ploughs, dozer blades or mine rollers.
The work in support of the EPA submission has been initiated. The Letter of Interest announced the broad objectives of the Project and good response was received from Industry. The feasibility study with Industry was cancelled by PWGSC, and the technical study was completed using DND and Allied government resources. The Leopard 2 tank capabilities and the Canadian performance requirements have been identified. The team finalized the Price and Availability identifying the core deliverables. The Price and Availability responses will be used to develop the substantive costs and schedule information required for the Effective Project Approval submission.
Industrial and Regional Benefits (IRB): No IRBs are required for Phase 1. The IRB requirements for Phase 2 will be recommended by Industry Canada, as part of the EPA process.
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.
| Lead Department or Agency | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor |
Sikorsky International Operations Incorporated, Stratford, Connecticut, USA |
| Sub-Contractors |
General Dynamics Canada, Ottawa, Ontario L-3 MAS Canada, Mirabel, Québec |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval (PPA) | June 2003 |
| Invitations for Bids Posted on MERX | December 2003 |
| Synopsis Sheet (Effective Project Approval) SS (EPA) | November 2004 |
| Contract Award | November 2004 |
| First Delivery | November 2010 |
| Final Delivery | 2013 |
| Project Close-out | 2014 |
Progress Report and Explanations of Variances: In December 2008, following discussions to minimize delays in the planned delivery of the integrated Maritime Helicopter, the Government and Sikorsky agreed to a new schedule for the delivery of helicopters starting in November 2010, with delivery of enhanced helicopters commencing in July 2012.
Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on HMCS Montréal have progressed well and are on schedule. The first test flight of the Maritime Helicopter occurred on November 15, 2008. The project is currently running within its authorized budget.
Industrial Benefits: The Industrial Regional Benefits are equivalent to 100% of the contract value for the capital acquisition and more than 80% of the contract value for the In-Service Support.
| Region | Capital Acquisition | In-Service Support |
|---|---|---|
| Atlantic Canada |
$239.1M |
$825.9M |
| Québec |
$555.8M |
$399.2M |
| Northern Ontario |
$3.2M |
$7.6M |
| Ontario (excluding Northern Ontario) |
$924.3M |
$1,073.2M |
| Western Canada |
$210.6M |
$181.4M |
| Unallocated |
$10.0M |
$105.7M |
| Total |
$1,943.0M |
$2,593.0M |
MATERIAL ACQUISITION AND SUPPORT INFORMATION SYSTEM (MASIS)
Description: The mission of the Material Acquisition and Support Information System (MASIS) project is to provide a Department of National Defence (DND) integrated materiel acquisition and support information system that enables the cost-effective optimization of weapon/equipment system availability throughout the life cycle. The scope of MASIS includes all end-to-end information requirements within DND/CF related to the materiel acquisition and support functions which are comprised of systems engineering, integrated logistics support (ILS), equipment configuration, technical data management, asset management, maintenance management, project management, performance management, operational support, business management, decision support analysis and contract management.
Project Phase: Implementation. To date the project has completed Phases 1 to 4 and implementation of Phase 5 is currently underway. Project completion is expected for 2012.
| Lead Department or Agency | National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | N/A |
| Prime Contractor | IBM Canada, Ottawa, Ontario |
| Major Sub-Contractors |
SAP Canada, Ottawa, Ontario Pennant Ottawa, Ontario, Canada |
| 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:
|
June 2000 |
Amended Expenditure Authority (EPA) for Phase 4:
|
December 2003 |
| Amended Expenditure Authority (EPA) for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army. | June 2007 |
| Project Close-out | 2012 |
Progress Report and Explanations of Variances: Following Definition Phase approval, EPA for MASIS was granted to DND in June 2000 in the amount of $147.8M. This authority provided the project the means to cover the work under Phases 1 to 3, which have been completed.
The project follows a cyclical approval and delivery methodology. In December 2003, an additional $34.4M was approved to fund Phase 4 of the project, which has been completed. In June 2007, the MASIS project received Treasury Board approval in the amount of $170M for Phase 5. Phase 5 activities include the rollout of MASIS functionality to Army and Air Force. To date, Phase 5 activities are on budget and on time. Planned completion of project is within the 2012 timeframe.
Industrial Benefits: All industrial benefits are attributed to Ontario since all project expenditures occur in Ontario.
MEDIUM TO HEAVY LIFT HELICOPTER (MHLH)
Description: Over the last decade, the ability to move personnel and equipment by air has become a vital and growing capability requirement for the Canadian Forces in fulfilling a wide range of roles. Canadian Forces operational experience, particularly in current operational theatres, has highlighted the urgent need for medium to heavy lift helicopters to support land forces in a threat environment by quickly, efficiently and safely moving large numbers of personnel and heavy equipment from forward deployed bases, thus reducing their vulnerability to attack. Both at home and overseas, medium to heavy lift helicopters will provide the Government with a wider range of military options for addressing threats and emergencies beyond the Canadian Forces’ current helicopter fleets.
The Medium to Heavy Lift Helicopter project will deliver the medium to heavy lift helicopter capability to support land-based domestic and international operations and to support Army Training on the road to high readiness. The project will acquire a minimum of 16 helicopters, integrated logistic support and other related support elements.
Project Phase: Definition
| Lead Department or Agency | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | The Boeing Company, Philadelphia, Pennsylvania, USA |
| Major Milestone | Date |
|---|---|
| Synopsis Sheet Preliminary Project Approval (PPA) | June 2006 |
| Advanced Contract Award Notice Posted on MERX | July 2006 |
| Effective Project Approval and Contract Award | June 2009 |
| First ACAN Compliant Aircraft | March 2012 |
| First MHLH | March 2013 |
| Initial Operational Capability (IOC) | March 2014 |
| Full Operational Capability (FOC) | March 2015 |
| Project Close-out | March 2016 |
Progress Report and Explanation of Variances: On March 11, 2008, a Request for Proposal was released to the Boeing Company. A proposal was received in July 2008. Reconciliation of work scope and cost, and challenges in arriving at mutually agreeable terms and conditions, have extended contract negotiations thereby pushing contract award to March 2009.
Industrial Benefits: This procurement will provide Industrial Regional Benefits equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. The selected contractor will be required to identify, as specific work packages, 60% of the total acquisition commitment. For the integrated in-service support portion, 75% of the contract value will be direct work performed by a Canadian company. These industrial and regional benefits requirements will be negotiated and accepted by Industry Canada prior to contract signing.
MEDIUM SUPPORT VEHICLE SYSTEM PROJECT (MSVS)
Description: The Medium Support Vehicle System Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. The MSVS project will cost approximately $1.2 B (net of GST) and will deliver the following mix of vehicles:
- medium-sized Standard Military Pattern (SMP) vehicles:
- Up to 1,500 vehicles, with options for an additional 650;
- Up to 150 integrated armour protection systems, with options for an additional 150, and
- Up to 300 companion military pattern trailers, with options for an additional 240.
- medium-sized Militarized Commercial Off-the-Shelf (MilCOTS) vehicles:
- Up to 800 commercial vehicles with militarized components, with options for an additional 500.
- Special Equipment Vehicle (SEV) Kits:
- Up to 1000 special equipment vehicle kits, with options for an additional 150.
Project Phase: Definition/Implementation
| Lead Department or Agency | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
Prime and Major Sub-Contractors: One prime contractor will be selected for each project component. Final selection of the prime contractors will occur through Revised Preliminary Project Approvals (Rev (PPAs)) for MilCOTS Vehicles, SEV Baseline Shelters and SMP Vehicles followed by Effective Project Approval (EPA) for SEV Kits.
| Prime Contractor | Navistar Defence LLC, Warrenville, Illinois, USA |
|
Major Milestones |
Date |
| Preliminary Project Approval (PPA) | June 2006 |
| Invitation for Bids Posted on MERX - MilCOTS Vehicles | November 2007 |
| Invitation for Bids Posted on MERX - SMP Vehicles | Summer 2009 |
| Invitation for Bids Posted on MERX - SEV Baseline Shelters | May 2008 |
| Invitation for Bids Posted on MERX - SEV Kits | Early 2010 |
| Rev PPA for MilCOTS Vehicles | December 2008 |
| Rev PPA for SMP Vehicles | Fall 2010 |
| Rev PPA for SEV Baseline Shelters | Spring 2009 |
| EPA for SEV Kits | Early 2011 |
| Contract Award - MilCOTS Vehicles | January 2009 |
| Contract Award - SMP Vehicles | Fall 2010 |
| Contract Award – SEV Baseline Shelters | Spring 2009 |
| Contract Award - SEV Kits | Early 2011 |
| First Delivery - MilCOTS Vehicles | Summer 2009 |
| First Delivery - SMP Vehicles | Fall 2011 |
| First Delivery - SEV Baseline Shelters | Early 2011 |
| First Delivery - SEV Kits | Spring 2011 |
| Delivery Complete - MilCOTS Vehicles | Fall 2010 |
| Delivery Complete – SMP Vehicles | Summer 2013 |
| Delivery Complete – SEV Baseline Shelters | Fall 2012 |
| Delivery Complete - SEV Kits | Fall 2012 |
| Project Close Out | Fall 2013 |
Progress Report and Explanations of Variances: In December 2008, PMO MSVS obtained Treasury Board expenditure authority for MilCOTS in the amount of $351.8M ($BY), plus GST and a Rev PPA for an indicative full-up cost estimate of $1.22B ($BY), plus GST for all components of the MSVS project.
- MilCOTS - Agreement in Principle was reached in August 2008 with the single responsive bidder. Rev PPA and contract approval received in December 2008. Contract awarded in January 2009.
- SEV Baseline Shelter – The SEV Baseline Shelter RFP was released to industry in May 2008 and the bid evaluation was completed in July 2008. Negotiations with the single responsive bidder are planned for completion in Early 2009. Rev PPA and contract award for this component is planned for Spring 2009.
- SMP – A revised draft technical specification was posted in November 2008 for industry comment. The complete RFP is planned for release in Summer 2009.
- SEV Kits – The SEV Kits RFP is scheduled for release in Early 2010.
Schedule delays have occurred and are attributed to delayed project approval and overall manning shortages. Cost variances have also occurred and are attributed to the receipt of single bids for MilCOTS vehicles and SEV Baseline Shelters with higher than anticipated price proposals, volatile raw material market and fluctuation in foreign exchange rates.
At this time, Project Close-out is anticipated for Fall 2013. A continuous risk management program has been implemented and costing efforts for the implementation phase are progressing.
Industrial & Regional Benefits: Industrial Regional Benefits (IRBs) equivalent to 100% of the contract value will be required for each project component.
MILITARY AUTOMATED AIR TRAFFIC SYSTEM (MAATS) PROJECT
Description: A national air traffic system project to automate air traffic services has been initiated by Transport Canada (now NAV CANADA). To ensure that military air operations continue to function effectively, remain compatible with the national system, and keep pace with these enhancements, the Department of National Defence and the Canadian Forces established the Military Automated Air Traffic System (MAATS) Project. The project directly supports the defence objective of conducting air traffic control operations.
The MAATS project will provide the essential equipment and system interfaces necessary to automate data interchange between applications. The project will deliver a stable, sustainable, and operational Air Traffic Management System (ATMS) while providing as much integration as possible with NAV Canada’s Canadian Automated Air Traffic System (CAATS). Where equipment or system interfaces are not currently available, new equipment will be installed. All existing Defence radar systems will be retained and interfaced to the MAATS as appropriate.
Project Phase: Implementation
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works Government Services Canada |
| Participating Department | Industry Canada and its regional agencies |
| Prime Contractor |
Raytheon Canada Limited, Richmond, BC NavCanada, Ottawa, ON |
| Major Sub-Contractors |
Hewlett Packard Canada Ltd, Ottawa ON CVDS, Montréal PQ Frequentis Canada Ltd, Ottawa ON |
| Major Milestone | Date |
|---|---|
| Treasury Board Effective Project Approval | July 1993 |
| Contract Award | January 1994 |
| Preliminary Design Review |
September 1997 – May 2000 |
| Critical Design Review | February 2001 |
| Factory Acceptance Test (Closure) | January 2002 |
| Initial Delivery (Montréal) | December 2003 |
| Contract Complete (Last Payment) | December 2004 |
| Approval received to disengage concurrent development with NAV CANADA project and pursue sustainable minimum military requirement | September 2006 |
| Begin Software Development on Phoenix Systems | October 2006 |
| Complete Phoenix NAMS II Development | October 2007 |
| Initial Operational Capability – First Wing Operational with NAMS II Equipment | October 2007 |
| Full Operational Capability (FOC) – All Wings with delivered Equipment | June 2009 |
| Begin project Close-out | July 2009 |
| Project complete | April 2010 |
Progress Report and Explanation of Variances: Treasury Board initially approved the project with an estimated cost of $179.2M. The project funding was reduced by $15M following departmental review. Partial return of funding was approved at the December 2003 Senior Review Board (SRB). Current departmental funding is $169.2M.
As briefed at SRB on June 30, 2006, the MAATS project objectives were declared unachievable within the existing funding envelope. Given a number of alternative options, the MAATS’ Project Management Office (PMO) recommended to cease MAATS development, and continue the project with the implementation of an “in-house” solution coined Phoenix. With the support of the Chief of the Air Staff and ADM(Mat), the Project Management Board (PMB) concurred with the PMO’s recommendation on March 15, 2007. MAATS’ PMO was directed to de-link the project from NAV Canada’s Civilian Automated Air Traffic System (CAATS); concentrate on the re-vitalization and integration of Air Traffic Controller (ATC) information sources at each of the seven wings (Comox, Cold Lake, Moose Jaw, Bagotville, Trenton, Greenwood and Goose Bay); keep military Instrument Flight Rules (IFR) operations at the Wings vice at two Military Terminal Control Centres; and pursue the development and fielding of the Phoenix solution.
Since the approvals were received in July 2007, the Phoenix solution is well on its way upgrading the current Air Traffic Management System capability inclusive of the following sub-systems: the Radar Processor, the Navigational Aids and Meteorological Sub-System (NAMS), the Air Movement Statistics Package and the Flight Data System. Phoenix is based on the proven Radar Processing Display System II (RPDS II), which was certified for Operational Airworthiness and built on standard commercial off-the shelf (COTS) hardware and open source software, thus keeping technical risk LOW. Installation of Phoenix equipment (NAMS II) at 8 Wing Trenton was completed and Provisional Operational Airworthiness Clearance (POAC) was granted in October 2007, ahead of schedule. Actual close out activities, including a project completion report to Treasury Board will be completed in fiscal year 2009–2010.
Industrial Benefits: Canadian industry in the following regions of Canada will benefit from the MAATS project.
| Region | Cash Benefits |
|---|---|
| Atlantic Canada |
1.6M |
| Québec |
1.0M |
| Ontario |
1.8M |
| Western Canada |
45.8M |
| Unallocated |
To be determined |
| Total |
$50.2M |
PROTECTED MILITARY SATELLITE COMMUNICATIONS (PMSC)
Description: The Department of National Defence and the Canadian Forces require global communications that are secure, guaranteed and directly interoperable with our allies. The aim of the Protected Military Satellite Communications Project (PMSC) is to overcome current Canadian Forces interoperability and global command and control limitations. Upon completion, this project will enable long-range communications to deployed forces and facilitate their interoperability with allies.
Project Phase: Implementation. The PMSC project is being implemented in two phases with project completion expected for Winter 2017.
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works and Government Services Canada |
| Participating Department | Industry Canada and its regional agencies |
| Prime Contractor | United States Department of Defense |
| Major Sub-Contractors | To be determined |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval | August 1999 |
| Effective Project Approval | November 2003 |
| Initial Terminal Delivery | Summer 2011 |
| Initial Satellite Delivery | Summer 2012 |
| Terminal Delivery Completed | Summer 2013 |
| Project Complete | Winter 2017 |
Progress Report and Explanations of Variances: The PMSC project is being implemented in two phases. In Phase 1 the satellites are being procured under the terms of a Memorandum of Understanding (MOU) with the United States Department of Defense (DOD) that guarantees Canadian participation in their Advanced Extremely High Frequency (AEHF) system. Definition studies for the terminal segment were completed in Phase 1. Under Phase 2, the terminal segment is being procured and will be installed and tested starting in 2011.
In August 1999, Treasury Board granted Preliminary Project Approval to the PMSC Project, with expenditure authority for the implementation of Phase 1 at an estimated cost of $252M and granted approval for the Department of National Defence to enter into a Military Satellite Communication (MILSATCOM) MOU with the US Department of Defense. The MOU was signed in November 1999.
In November 2003, Treasury Board granted Effective Project Approval to the PMSC Project, with expenditure authority for the Implementation of Phase 2 at an estimated cost of $300M. The total cost is now estimated at $552M. The project is on budget.
Industrial Benefits: Under Phase 1, the US Department of Defense has committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations will be permitted to bid on project work. In Phase 2, the Senior Procurement Advisory Committee (SPAC) endorsed that Terminal acquisition and support will be procured through Foreign Military Sales with installation done through DND managed contracts. Industrial and regional benefits will be sought by Industry Canada at 100% of contract value.
SUBMARINE CAPABILITY LIFE EXTENSION (SCLE)
Description: The Submarine Capability Life Extension (SCLE) project replaced the Oberon class submarine fleet with four existing British Upholder class (renamed Canadian Victoria class) submarines. The project will ensure that Canada preserves its submarine capability within the existing capital budget. The project supports Canada’s ability to conduct surveillance and control of its territory, airspace and maritime areas of jurisdiction, as well as Canada’s ability to participate in bilateral and multilateral operations.
Project Phase: Implementation. The project has delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews. Canadianization of three platforms and twelve of seventeen associated projects have been completed. The last platform (HMCS CHICOUTIMI) will complete Canadianization in December 2011 and the remaining five associated projects will be completed by project closure in March 2013.
| Lead Department | Department of National Defence |
| Contracting Authority | Public Works & Government Services Canada |
| Participating Department | Industry Canada and its regional agencies |
| Prime Contractor | The Government of the United Kingdom (UK) of Great Britain and Northern Ireland, Ministry of Defence, UK |
| Major Sub-Contractor | British Aerospace Engineering (BAE) Marine Systems (formerly Vickers Shipbuilding and Engineering Limited (VSEL)/Marconi Marine) Cumbria, UK |
| Major Milestone | Date |
|---|---|
| Treasury Board Approval | June 1998 |
| Main Contract Award | July 1998 |
| Initial Support Contract Award | July 1998 |
| Initial Operational Capability | April 2006 |
| Full Operational Capability | December 2011 |
| Project Close-out | March 2013 |
Progress Report and Explanation of Variances: Effective Project approval was granted to the SCLE project in June 1998 at an estimated total cost of $812.0M (BY) net of GST. The expenditure ceiling was increased by $84.8M by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. SCLE project is currently expending to budget.
Canada has accepted all four Upholder submarines from the United Kingdom. The operational status of each of these vessels is summarized below:
- Her Majesty’s Canadian Ship (HMCS) Victoria is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Breton. She is scheduled to undock in June 2009 and complete this activity in December 2009.
- HMCS Windsor is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Scott. She is scheduled to undock in late 2009 and complete this activity in 2010.
- HMCS Corner Brook is operational and is participating in various exercises and patrols. Barring a six-month docking period in late 2009 she will remain operational until mid 2011.
- HMCS Chicoutimi was handed over to Canada October 2, 2004. On October 5, 2004, while en-route to Canada, she had an electrical incident at sea 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 EDWP. This work package is scheduled to commence 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 $200M in direct and indirect industrial benefits. This includes Canadian modifications to the submarines and the relocation of the simulators and trainers to Canada. A further $100M in industrial benefits has taken the form of waivers to provide industrial offsets in the United Kingdom for Canadian companies bidding on defence contracts.
WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION (WLAV-LE)
Description: The Wheeled Light Armoured Vehicle – Life Extension (WLAV- LE) will address 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 will improve 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 new LAV III and LAV-Recce (Coyote) fleets. The following capabilities will be provided in the 2004-2011 timeframe:
- Conversion of the entire Bison fleet of 199 vehicles to 32 Ambulances, 16 Electronic Warfare, 4 Nuclear Biological and Chemical Defence, 32 Maintenance and Recovery Vehicle, 32 Mobile Repair Team, 83 Command, Control, Communications and Intelligence vehicles;
- 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
- Sufficient Integrated Logistics Support to maintain the fleet for the first two years of operations.
Project Phase: Implementation. Just over 50% of the Bison fleet has been converted.
| Lead Department | Department of National Defence |
| Contracting authority | Public Works and Government Services Canada |
| Participating Departments and Agencies | Industry Canada and Atlantic Canada Opportunities Agency |
| Prime Contractor (6 variants) | DEW Engineering and Development ULC (DEW), Ottawa, ON |
| Prime Contractor (1 variant) | General Dynamics Land Systems – Canada (GDLS-C), London, ON |
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval | September 1996 |
| Treasury Board Effective Project Approval | November 1998 |
| Initial Contract Award with DEW | January 2003 |
| Treasury Board Revised Effective Project Approval | September 2006 |
| New Contract Award with DEW | May 2007 |
| Contract Award with GDLS-C | October 2007 |
| Implementation – Initial Operational Capability | March 2009 |
| Implementation – Full Operational Capability | December 2010 |
| Project completed | March 2011 |
Progress Report and Explanation of Variances: Initially, the Treasury Board approved the WLAV LE with an estimated cost of $230.387 M ($BY). In September 2006, the Treasury Board 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 the Department of National Defence in March 2005 to retire the AVGP fleet. The total cost estimate is now $170.3 M ($BY). The planned dates for the Initial Operational Capability (August 2008) and Full Operational Capability (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 on budget and is to be completed by March 2011.
Industrial Benefits: There are no Industrial and Regional Benefits strategy associated with the WLAV LE 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 Canadian Forces Base Chatham New Brunswick. Based on Cabinet decision in July 1995, 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.