ARCHIVED - 2010-2011 RPPs - Status Report on Transformational and Major Crown Projects

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Canada Border Services Agency



Status Report on Transformational and Major Crown Projects

eManifest

Description

eManifest represents Phase III of the Advance Commercial Information initiative, which is aimed at improving the CBSA's ability to detect shipments that pose a high or unknown risk to the safety and security of Canadians. eManifest will help the Agency protect and secure Canadian frontiers by “pushing the border out”, because it will require carriers to electronically submit all pre-arrival commercial information (including all cargo, conveyance and crew data) in the highway and rail modes of transportation. It will also require freight forwarders and importers to electronically submit advance secondary cargo and advance trade data for all modes (marine, air, rail and highway). This will enable the CBSA to more effectively analyze risk, help ensure that efficient border procedures are in place and help secure the international trade supply chain.

Project Phase

eManifest is being deployed in multiple phases, whereby deliverables are being implemented at various stages throughout the project according to client group. The following activities will be undertaken during the life cycle of the project:

• Electronic receipt and automated risk assessment of pre-arrival data, including
  • primary and secondary cargo information;
  • conveyance information;
  • crew/driver information; and
  • importer release/admissibility information.
• Development of
  • alternative methods of communication (Internet portal);
  • cargo messaging / notification system;
  • linkages between cargo, importer admissibility and release information (including arrival status);
  • a multi-modal manifest suitable for all modes of transportation;
  • improved information for border services officers at the primary inspection line;
  • integrated examination results;
  • a mechanism for risk assessors to make pre-arrival admissibility recommendations;
  • trend analysis and pattern detection (supported by business intelligence and a data warehouse);
  • compliance management and data quality review;
  • information reporting to senior management; and
  • sufficient capacity and infrastructure to meet established pre-arrival reporting time frames and volumes.

In addition, some of the activities listed above will be implemented or retrofitted for the air and marine modes because the activities were not included as part of Phase I and II of the Advance Commercial Information initiative. In particular:

• electronic receipt and automated risk assessment of pre-arrival data, including secondary cargo, crew and importer release / advance trade data;
• development of trend analysis and pattern detection;
• linkages between cargo, advance trade data and release information (including arrival status); and
• a multi-modal manifest suitable for all modes of transportation.

Leading and Participating Departments and Agencies

Table 5.1: Leading and Participating Departments and Agencies

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

Prime and Major Subcontractors

Table 5.2: Prime and Major Subcontractors

Prime contractor	n/a
Major contractors	n/a

Major Milestones

Table 5.3: Major Milestones

Major Milestone	Date
Phase I: Highway carriers begin transmitting cargo, conveyance and crew data to the CBSA in advance of their arrival at the border.	Spring 2010
Phase II: Rail carriers begin transmitting their pre-arrival data. Deployment of the Internet portal.	Fall 2010
Phase III: Freight forwarders begin transmitting their pre-arrival data.	Summer 2011
Phase IV: Importers begin transmitting their pre-arrival data.	Spring 2012
Full implementation: eManifest is expected to be fully implemented in all modes of transportation.	Spring 2014

Progress Report and Explanation of Variances

Treasury Board granted effective project approval on November 29, 2007.
The following eManifest project achievements were realized in 2009:

• Bill S-2, an Act to Amend the Customs Act, received royal assent on June 11, 2009. This Bill contains modifications to the advance commercial reporting requirements that provide the CBSA with the authority to mandate that carriers, importers and freight forwarders, in all modes of transportation, provide the CBSA with electronic shipment information prior to arrival in Canada.
• Implementation of electronic data interchange rail reporting (Phase I), enabling facilitated electronic processes for use by rail carriers.
• Development of an interim solution to manage the CBSA's information technology infrastructure to support the future increase in the receipt of electronic data volumes and processes from trade-chain participants.
• Implementation of the Highway In-Transit Pilot Project into production systems.
• Multiple consultations with the eManifest Stakeholder Partnership Network.

Table 5.4: Progress Report and Explanation of Variances
($ thousands)

CBSA Branch	2006-07		2007-08		2008-09
	Budget	Actual	Budget	Actual	Budget	Actual
Innovation, Science and Technology	4,660	4,660	46,169	30,656	90,019	46,842
Admissibility	296	296	708	368	584	940
Operations			392	1,087	2,733	1,108
Enforcement	302	302	723	140	584	218
Comptrollership	1,821	1,821	158	623	1,025	2,281
Human Resources	369	369	240	138	371	705
Strategy and Coordination	760	760	488	67	786	1,901
Carry Forward for 2008-09			0		12,749
Total	8,208	8,208	48,878	33,079	108,851	53,995
Carry Forward		0		12,749		54,856

Table 5.4: Progress Report and Explanation of Variances (continued)
($ thousands)

CBSA Branch	2009-10		2010-11
	Budget	Forecast	Budget
Innovation, Science and Technology	81,356	47,600	72,722
Admissibility	584	1,322	288
Operations	6,555	1,754	5,528
Enforcement	584	723	281
Comptrollership	2,078	1,999	1,747
Human Resources	566	663	309
Strategy and Coordination	1,319	1,152	509
Carry Forward for 2008-09	54,856
Total	147,898	55,213	81,384
Less: Government of Canada Contribution	-40,000		-45,000
Total	107,898		36,384

 

The spending profile was adjusted to reflect figures in the effective project approval submission dated November 2007. The total amount spent in 2008–09 was primarily related to the design and development of components towards the implementation of electronic reporting in the highway mode (target: spring 2010). Such components include an electronic reporting interchange, Internet portal and improved systems integration for border services officers at the primary inspection line. Additional spending was to carry out the further development and implementation of capacity and infrastructure enhancements to support future electronic reporting time frames and volumes.

The 2008–09 carry-forward amounts are attributed to a further refinement of the project schedule and associated implementation dates. The rollout of systems functionality has been aligned to meet the requirements of specific client groups, which necessitated the realignment of project spending. Furthermore, in response to the current economic environment, the Government of Canada requested a temporary rollback of $85 million (to be repaid over two years starting in 2011-12) to support other government pressures. This rollback necessitated a complete review of project spending profiles and the project deployment strategy. As a result, project components were realigned to account for yearly pressures relating to this budget reduction, which included the movement of procurement activities for infrastructure and hardware into future years. A significant amount of yearly carry-forwards are associated with the procurement of a data warehouse and associated tools. As a result of this realignment of project funds, the project is now targeted to be completed in 2013-14, a delay of two years from previous reports.

The 2010-11 budget accounts for a reduction in funding due to the Government of Canada's contribution. This reduction will be managed through a carry-forward as identified in 2009-10.

Industrial Benefits (Business Goals)

eManifest will provide the following industrial benefits:

• Enhanced prosperity: eManifest will contribute to a strong economy by facilitating the flow of low-risk trade in a high-volume, time-sensitive, transborder environment.
• Enhanced security: Canadian society will be better protected from health, safety, security and terrorist threats as eManifest will “push the border out” as a means to obtain the necessary data at the right time. eManifest uses sophisticated tools and technology and rigorous risk-assessment systems to interdict threats before goods arrive in Canada.
• Streamlined border processing: Obtaining and risk-assessing commercial information from trade-chain participants before the arrival of goods in Canada will minimize the processing required at the physical border, streamline the clearance process and reduce border congestion.
• Consistency of application: As eManifest will expand the existing requirements for marine and air carriers to those in the highway and rail environments, there will be a consistent application of risk assessment across all modes of transportation relative to CBSA requirements.
• Reduced costs of compliance: Members of the trade community will be able to leverage the investment they are making to comply with both international and United States requirements. To the greatest extent possible, eManifest will develop system requirements using recognized international and North American standards.
• Enhanced systems performance: Given the high volumes and compressed time frames associated with transborder trade, the CBSA will make enhancements to its information technology infrastructure that will improve system performance and reliability.

 

Canadian Space Agency



Annexe 4 - Status Report on Major Crown Projects (MCPs)

RADARSAT-2

Description

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

The RADARSAT-2 Major Crown Project, in partnership with MacDonald, Dettwiler and Associates (MDA), carried out the design, development, testing, deployment and operations of a space-borne SAR satellite to provide global coverage of terrestrial phenomena as a follow-up to RADARSAT-1. The current estimated total cost from CSA's budget is $418.1 million.

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

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

The major milestones on Major Crown Project, by phase, were the following:

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

Progress Report and Explanation of Variances

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

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

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

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

The additional costs to complete the construction and launch of RADARSAT-2 were at the main contractor's expense. However, these additional delays required that the CSA RADARSAT-2 project office remained operational to cover the remaining activities until project close-out. The necessary funding to cover all additional expenditures for the CSA is from within the project risk funding envelope and associated project authorities. With RADARSAT-2 being fully operational and the government departments making regular use of the data, the CSA is preparing the closure of the RADARSAT-2 Major Crown Project with the objective to submit the closure report to Treasury Board in January 2010.

Industrial Benefits

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

A major objective of this project is the transition of the Earth observation industry from the public sector to the private sector. The intention is to build on the SAR data and value-added markets established with RADARSAT-1 to strengthen the Canadian industry's position as a supplier of SAR-related technology, systems and value-added products and services.

Specifically, manufacturing potential and competitiveness will be encouraged in Canadian industry in the areas of phased array antenna design/manufacture, high performance receiver/transmitter design and manufacture, and enhanced structure design. Moreover, opportunities will be created for the export of ground station systems. The new capabilities also make new applications possible, creating new and expanded markets for data sales and value-added products.

As of March 31, 2009, the CSA will have funded $236.66 million worth of work to Canadian industry directly attributable to the RADARSAT-2 Major Crown Project (MCP). Direct industrial benefits from the construction of RADARSAT-2 will benefit all regions of Canada. The regional distribution of direct industrial benefits is shown in the following table.

Regional Distribution of RADARSAT-2 Contracts to Canadian Industry
(as of March 31, 2009)

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

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

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

Program	Current Estimated Total Expenditure	Forecast to March 31, 2010	Planned Spending 2010-2011	Future Years
RADARSAT-2	417.7	417.7	0.0	0.0

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RADARSAT Constellation

Description

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

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

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

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

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

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

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

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

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

Leading and participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

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

Phase	Major Milestones	Date
A	Requirement Definition	March 2009
B	Preliminary Design	March 2010
C	Detailed Design	January 2012
D	Launch satellite #1 Launch satellite #2 Launch satellite #3	May 2014 August 2015 November 2016
E1	Operations (part of MCP)	to March 2018
E2	Operations (not part of MCP)	2018 to 2024

Progress Report and Explanation of Variances

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

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

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

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

A revised PPA Treasury Board Submission to proceed to Phases B and C was approved in March 2007. In December 2006, Public Works and Government Services Canada (PWGSC) initiated a competitive Request for Proposal (RFP) process to identify a prime contractor for the RADARSAT Constellation project (i.e., for Phases B/C/D of the space segment and a portion of the ground segment) and negotiate a contract for Phases B and C with the winning prime contractor, MDA. The contract for Phase D would follow successful completion of Phases B and C, obtaining the necessary funding and the granting of Effective Project Approval (EPA) from Treasury Board. In September 2008, PWGSC obtained authority to enter into a contract with MDA. Negotiations for Phase B were completed in October 2008 and the contract for Phase B was awarded to MDA in November 2008. Phase B will be completed in February 2010. It is planned to amend the contract for Phase B to include the scope of Phase C which will continue to December 2011.

Industrial Benefits

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

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

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

Program	Current Estimated Total Expenditure	Forecast to March 31, 2010	Planned Spending 2010-2011	Future Years
RADARSAT Constellation	145.9	64.0	39.9	41.9

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James Webb Space Telescope

Description

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

• Observing the very first generation of stars to illuminate the dark universe when it was less than a billion years old.
• Understanding the physical processes that have controlled the evolution of galaxies over cosmic time, and, in particular, identifying the processes that led to the assembly of galaxies within the first 4 billion years after the Big Bang.
• Understanding the physical processes that control the formation and early evolution of stars in our own and other nearby galaxies.
• Studying the formation and early evolution of proto-planetary disks, and characterizing the atmospheres of isolated planetary mass objects.

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

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

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

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

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

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

The major milestones, by phase, are the following:

Phase	Major Milestones	Date
A	Requirement Definition	2003-2004
B	Preliminary Design	August 2004 to May 2005
C	Detailed Design	July 2005 to September 2008
D	Manufacturing/Assembly; Integration/Testing; Pre-launch preparations, Launch/System Commissioning	May 2007 to December 2015
E	Operations	2014-2015 to 2018-2019

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

Progress Report and Explanation of Variances

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

The first Critical Design Review (CDR), held in March 2007, for the guider function of the FGS, did reveal some technical issues, which required additional effort to resolve. This Review took place after the Effective Project Approval (EPA) received in February 2007. After this first CDR, with the focus now turning toward the preparation of the system level CDR, new issues became apparent requiring additional analysis. Testing of the Tunable Filter Imager prototype also revealed technical issues that needed to be addressed.

During this transition between the completion of the detailed design phase (Phase C) and the initiation of the manufacturing phase (Phase D) the project faced the prospect of a significant cost growth and therefore required the CSA to return to Treasury Board to amend its Effective Project Approval (EPA) for the JWST Major Crown Project. The current estimated total cost for the Definition and Implementation phases is now $134.7 million. On December 2007, Treasury Board granted a revised Effective Project Approval. Manufacturing, integration and test of the FGS will be completed during Fiscal Year 2010-2011.

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

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

On the PFM side, COM DEV Canada has received most of the flight components and is proceeding with the integration steps. The PFM is planned to be delivered to NASA Goddard Space Flight Center early 2011.

Industrial Benefits

As of March 31, 2009, the CSA has funded $71.97 million worth of work to Canadian industry directly attributable to the JWST-FGS Major Crown Project. Direct industrial benefits from the construction of the JWST-FGS and TFI system will benefit central regions of Canada. Although there is no regional distribution requirement for this project, the following table provides an approximate distribution:

Regional Distribution of JWST Contracts to Canadian Industry
(as of March 31, 2009)

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

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

Program	Current Estimated Total Expenditure	Forecast to March 31, 2010	Planned Spending 2010-2011	Future Years
JWST-FGS and TFI	144.8	126.2	13.0	5.6

Citizenship and Immigration Canada



Status Report on Major Crown Projects

Global Case Management System

1. Description

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

GCMS is helping CIC move toward an increasingly centralized, integrated and virtual business model. It enhances CIC's reporting capability to assist in detecting fraud. GCMS also lays the foundation to support future business improvements and innovation, such as the introduction of e-services, improved identity management through biometrics and paperless case processing.

2. Project Phases

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

As a result of independent reviews, GCMS underwent a project assessment, and a revised go-forward plan was developed with a reduced scope. In August 2008, Treasury Board granted approval to develop the next phase of GCMS, which focused on visa offices overseas where the majority of clients first seek CIC services.

An independent review completed in June 2009 confirmed that the project schedule is achievable, the technology is sound and the initiative is on track. In June 2010, the first visa office overseas will begin using the GCMS Release 2. Once fully implemented in March 2011, GCMS will provide a single, integrated processing capability for all citizenship and overseas immigration applications.

3. Leading and Participating Departments and Agencies

Lead Department	Citizenship and Immigration Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Canada Border Services Agency

4. Prime Contractor

Prime Contractor	None (CIC is responsible for system integration.)

5. Major Milestones

Major Milestone	Date
Treasury Board approves funding for the GCMS project at the same time as CIC's Treasury Board submission on the implementation of policy reforms and the new Immigration and Refugee Protection Act (IRPA).	August 2000
Treasury Board grants Preliminary Project Approval and major Crown project designation to GCMS.	March 2001
Treasury Board grants Effective Project Approval (EPA) to GCMS.	January 2002
Request for proposal for the acquisition of a commercial, off-the-shelf software package for case management is posted for tender by Public Works and Government Services Canada.	February 2002
Contract for the off-the-shelf software package for case management is awarded.	March 2003
Treasury Board grants amended EPA to GCMS to address the impact of procurement delays.	October 2003
The first GCMS business component (Citizenship) is implemented.	September 2004
Treasury Board grants a second amendment to the EPA to address the impact of cumulative slippage that includes critical new requirements in project scope, and provides for an incremental deployment approach.	September 2005
Completion of a System Under Development audit of the GCMS project.	November 2005
Treasury Board grants a third amendment to the EPA to address a wording anomaly with regard to the GST.	December 2006
Independent review indicates the need to assess project status and review options for completing GCMS objectives.	December 2006
Treasury Board grants a fourth amendment to the EPA to undertake this assessment and to develop a revised go-forward plan.	February 2007
Treasury Board grants a fifth amendment to the EPA, extending the time frame for completion of a substantive go-forward plan to late fiscal 2007–2008.	October 2007
Independent review validates project's recovery plan and project team's readiness to deliver.	December 2007
Treasury Board grants a sixth amendment to the EPA with a reduced scope for the second release of GCMS.	August 2008
Independent review confirms that technology is sound, project schedule is achievable and that "success is within sight."	June 2009
Treasury Board releases remainder of funding required to complete the project.	September 2009
Deployment of new GCMS version to existing citizenship users.	May 2010
GCMS deployment to first visa office overseas.	June 2010
GCMS deployment to all visa offices overseas is complete.	March 2011

6. Progress Report and Explanations of Variances

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

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

Previously, in August 2008, Treasury Board granted approval to extend the time required to complete the project to March 31, 2011, and increased the project's total spending authority to $387 million (including GST). Consistent with recommendations from independent reviews conducted between December 2006 and December 2007, GCMS Release 2 is being developed with a reduced scope focused on visa offices overseas.

The GCMS project has faced considerable challenges, adding to the cost and time needed to complete the project, including:

• an overly ambitious scope with no initial phased delivery;
• a change of government direction to commercial off-the-shelf software;
• splitting of immigration with the creation of the Canada Border Services Agency (CBSA);
• amendments to the IRPA, representing a major change in the administration of the immigration system; and
• a need to respond to increased security risks, while respecting privacy.

Temporary Resident Biometrics Project

1. Description

CIC and CBSA are jointly responsible for the delivery of Canada's immigration program. In accordance with IRPA, CIC and CBSA work together to manage the movement of clients across and within Canada's borders. Under the Customs Act, all people and goods entering Canada must report to CBSA at a port of entry. Among the issues addressed by CBSA are illegal migration, preventing the admission into Canada of persons involved in war crimes or crimes against humanity, and detention and removal from Canada of inadmissible persons.

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

2. Project Phases

The Temporary Resident Biometrics Project is currently in its planning/definition phase and will begin the implementation phase in late 2011. During the planning/definition phase, CIC, CBSA and the Royal Canadian Mounted Police (RCMP) are working collaboratively to define the solution, as well as the approaches and plans for implementing the Temporary Resident Biometrics Project. A critical first step is the clear definition of a set of comprehensive business and supporting infrastructure requirements agreed to by all partners. Requirements will then be used to define the business solution and how it will work (functional design), how technology will enable the solution (technical design), and how all the pieces fit and work together (supporting architectures).

Substantive plans and strategies for completing the project and managing the business change will be finalized and approved by all partners, culminating in a submission to obtain EPA.

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

3. Leading and Participating Departments and Agencies

In late 2007, CIC sought policy approval for the introduction of biometrics into the Temporary Resident Program, and funding to support this initiative was included in Budget 2008. Following the budget announcement, a Biometrics Project Office was established in CIC as the lead organization for managing this investment. The project will be developed and implemented with the active participation of three primary federal government departments and agencies: CIC, CBSA and the RCMP.

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

4. Prime and Major Subcontractor(s)

Prime Contractor	None (Tendering in late 2010)

5. Major Milestones

List of Major Milestones	Date
Effective Project Approval	2010
Request for Proposal (RFP) Tender	2010
Deployment	2011-2013
Project Shutdown	2013

6. Progress Report and Explanations of Variances

Funding was included in Budget 2008 to enhance and strengthen identity management within the Temporary Resident Program, allowing overseas visa officers and border service officers at ports of entry to make decisions based on accurate identity and immigration admissibility information, and permitting border service officers to verify applicants' identity at Canada's ports of entry.

An independent review concluded that the project is a solid initiative with a good approach, has clear objectives that are important and measurable, is highly aligned with the core mandates of the three partner agencies, is well defined, and does not have challenges associated with other projects.

7. Industrial Benefits

This major Crown project does not directly benefit Canadian industry; it is a project to improve the safety of Canadian citizens. Immigration and the granting of Canadian citizenship are vital to the continued growth and prosperity of Canada. To support the Government of Canada outcomes of strong economic growth and a safe and secure world, a balance must be maintained between the desire to welcome newcomers to Canada and the obligation to protect the health, safety and security of Canadian society. Criminals, terrorists and other known inadmissible persons must not be allowed to enter or stay in Canada.

Fisheries and Oceans Canada



Status Report on Transformational and Major Crown Projects

• Mid-Shore Patrol Vessels
• Offshore Fisheries Science Vessels
• Offshore Oceanographic Science Vessel
• Polar Icebreaker Project

 

Mid-Shore Patrol Vessels

Description

The Mid-Shore Patrol Vessels project will acquire nine (9) Mid-Shore Patrol Vessels (MSPV) for the Canadian Coast Guard (CCG) Fleet — five (5) for Fisheries Conservation and Protection (C&P) duties and four (4) for Maritime Security duties. This project serves two purposes: 1) Fleet Renewal — the acquisition of C&P patrol vessels represents the first step in modernization of the CCG fleet and will ensure the integrity of the fishery monitoring program and will provide the capacity for DFO to support the strategic role in fisheries enforcement; 2) Maritime Security — the acquisition of MSPV for Maritime Security will allow CCG, in conjunction with the RCMP, to respond to the Government's commitment to enhance the security of the nation's coasts and waterways.

Project Phase

The MSPV Project is currently in the Implementation phase.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Irving Shipbuilding Inc.
Major Subcontractor(s)	International Contract Engineering, Damen, Lloyd's Register, MTU.

Major Milestones

Major Milestones	Date
Preliminary Project Approval (PPA)	August 2005
Effective Project Approval (EPA)	June 2006
1st Request for Proposal (RFP) (cancelled)	July 2007
Amended Effective Project Approval — to include 4 additional vessels identified in Budget 2007	December 2007
2nd RFP issued (cancelled)	August 2008
3rd RFP issued	March 2009
Contract Awarded	August 2009
First Vessel Delivery	Fall 2011
Final vessel delivery for MSPV	2013

Progress Report and Explanations of Variances

An RFP for MSPV detailed design and construction was issued on November 8, 2006. Federal Budget 2007 approved funding for 4 additional vessels for Conservation and Protection, for a total of 12 vessels. A review of the four submissions received in response to the RFP revealed that the understanding between bidders and the Crown concerning bid evaluation requirements was insufficient to allow the process to proceed. This initial solicitation was cancelled in July 2007.

The second RFP was issued in December 2007. Bids received in response to the second RFP exceeded the anticipated costs. As no additional funding could be made available, this second RFP was also cancelled.

A 3rd RFP was issued on March 31, 2009 and closed on June 5, 2009. Following a review of the bids, the contract was awarded to Irving Shipbuilding Inc. on August 13, 2009. During 2009-10, the MSPV design was finalized and production planning commenced. The first vessel will be delivered in Fall 2011 and the final vessel in 2013.

Industrial Benefits

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

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2010	Planned Spending 2010-11	Future Years' Requirements
227.0	24.3	44.3	158.4

 

Offshore Fisheries Science Vessels

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestones	Date
Preliminary Project Approval (PPA)	October 2005
First Amended PPA	November 2006
Second Amended PPA	June 2009
Effective Project Approval (EPA) and Authority to Contract	Fall 2010
Contract Award	Spring 2011
First Vessel Delivery	2013
Delivery of last OFSV	2014

Progress Report and Explanations of Variances

Federal Budget 2005 allocated funding for two Offshore Fisheries Science Vessels (OFSV). Subsequently, Budget 2007 announced additional funding for one additional vessel, for a total of three OFSV.

In 2008, it was determined that the initial OFSV design exceeded the allocated budget. The OFSV project sought a second amendment to the PPA in order to conduct a "design to cost" exercise and develop a cost effective design so as to obtain Effective Project Approval (EPA).

Industrial Benefits

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

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2010	Planned Spending 2010-11	Future Years' Requirements
244.0	6.3	2.7	235.1

 

Offshore Oceanographic Science Vessel

Description

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

Project Phase

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestones	Date
Preliminary Project Approval	July 2008
Amended Preliminary Project Approval	June 2009
Design Contract Award	Winter 2010
Effective Project Approval and Contract Award Authority	Spring 2011
Delivery of Offshore Oceanographic Science Vessel	2013

Progress Report and Explanations of Variances

Federal Budget 2007 allocated funding for the replacement of the CCGS Hudson with a new Oceanographic Science Vessel (OOSV). The OOSV project is currently preparing for detailed design phase.

Industrial Benefits

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

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2010	Planned Spending 2010-11	Future Years' Requirements
144.4	2.5	2.6	139.3

 

Polar Icebreaker Project

Description

The Polar Icebreaker project will replace the Coast Guard's largest, most capable heavy Arctic icebreaker, the CCGS Louis S. St-Laurent. The new polar icebreaker will help to strengthen Arctic sovereignty and will be able to operate in the Arctic in more severe weather conditions and for a longer period of time — 3 seasons instead of the current 2 seasons.

Project Phase

The Polar Icebreaker Project is currently in the project definition phase and vessel concept development work in ongoing in preparation for the detailed design work to follow.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestones	Date
Preliminary Project Approval	June 2009
Effective Project Approval — Target Date	Summer 2013
Contract Award (Construction)	Fall 2013
Vessel Delivery	2017

Progress Report and Explanations of Variances

Federal Budget 2008 allocated funding for the replacement of the Canadian Coast Guard's largest, most capable heavy Arctic icebreaker, the CCGS Louis S. St-Laurent. Following preliminary Project Approval in 2009, project activities have included completion of the mission profile, broad stakeholder engagement and validation of operational requirements.

Industrial Benefits

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

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2010	Planned Spending 2010-11	Future Years' Requirements
800.0	7.8	8.0	784.2

Health Canada



Status Report on Transformational¹ and Major Crown Projects²

1. Description:

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

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

2. Project Phase:

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

The new Health Information and Claims Processing Services System will be fully deployed on December 6, 2009.

3. Leading and Participating Departments and Agencies

Lead Department	Health Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Indian and Northern Affairs Canada

4. Prime and Major Subcontractor(s)

Prime Contractor	ESI Canada, Mississauga, Ontario, Canada

5. Major Milestones

List of Major Milestones	Date
Initial meetings with Contractor, coordination of Implementation Phase Project Plan	Contract Award (December 4, 2007 through January 2008)
Business Requirements Gathering and Design	February 2008 to August 2008
HICPS Development	September 2008 to April 2009
HICPS Testing and Acceptance	May to September 2009
Documentation, Simulations, Validation, Data Conversion and Training	September 2009 to November 2009
HICPS Implementation (ESI Canada officially takes over real-time service provision)	December 6, 2009
Project Close-Out Phase:  Evaluation of the HICPS Project and lessons learned.	December 2010 to March 2011

6. Progress Report and Explanations of Variances:

The definition phase of the HICPS Project (including the RFP process through bid evaluation and ultimately contract award) was concluded on budget and the Project Implementation Phase has been underway as of December 4, 2007. The Project is moving towards the implementation of the full services on December 6, 2009.

Currently the Project is on schedule and a transition plan is in place between the incumbent claims processor First Canadian Health, and the new claims processor ESI Canada Inc.  The first few months of operations will be closely monitored to manage and resolve any residual system deficiencies in collaboration with the Contractor and in accordance with established procedures.

The Project schedule and budget are consistent with the amount granted by the project authorities.  Health Canada has included some further enhancements for the HICPS System as part of the Implementation Phase such as the development of a reporting database.

7. Industrial Benefits:

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

The development of the ABR approach for the HICPS Project was informed by industry feedback through two Requests for Information (RFI) consultation processes, and approved by Treasury Board. As HICPS Prime Contractor, ESI Canada will be required to ensure a mandatory and substantial Aboriginal benefits requirement representing direct or indirect benefits to Aboriginal businesses or individuals.

National Defence



Table 5: Status Report on Major Crown Projects

Table of Contents

AIRLIFT CAPABILITY PROJECT – STRATEGIC (ACP-S)

AIRLIFT CAPABILITY PROJECT – TACTICAL (ACP-T)

ARCTIC/OFFSHORE PATROL SHIP (A/OPS)

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

FORCE MOBILITY ENHANCEMENT (FME)

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

INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION  AND RECONNAISSANCE (ISTAR)

JOINT SUPPORT SHIP (JSS)

LIGHT ARMOURED VEHICLE III UPGRADE PROJECT (LAV III Upgrade)

LIGHT UTILITY VEHICLE WHEELED (LUVW)

LIGHTWEIGHT TOWED HOWITZER (LWTH)

MAIN BATTLE TANK (MBT)

MARITIME HELICOPTER PROJECT (MHP)

MATERIEL 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)

TACTICAL ARMOURED PATROL VEHICLE (TAPV)

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

Prime and Major Sub-Contractors
Prime Contractor	The Boeing Company, St-Louis, Missouri, USA

Major Milestones
Major Milestones	Date
Synopsis Sheet (Effective Project Approval) (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 6,000 flying hours. The project office is currently working on the Implementation Phase of the project. Due to complexities in transitioning to in-service support, Full Operational Capability (FOC) will be delayed to 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/H 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: Implementation. The ACP-T project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 C-130J-30 aircraft. Aircraft deliveries will commence no later than June 2010, with the final aircraft delivered no later than December 2012.

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

Prime and Major Sub-Contractors
Prime Contractor	Lockheed Martin Corporation, Marietta, Georgia, USA

Major Milestones
Major Milestones	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	Summer 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 the following areas: 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 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. Lockheed Martin Corporation will be required to identify, as specific work packages, 60% of each of the acquisition and the in-service support commitments prior to contract/amendment award. These IRBs requirements will be negotiated and accepted by Industry Canada prior to the signing of the contract and its amendments.

ARCTIC/OFFSHORE PATROL SHIP (A/OPS)

Description: The Arctic/Offshore Patrol Ship (A/OPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to demonstrate sovereignty in Canada's waters, including the Arctic. When the project is complete, the six to eight fully supported A/OPS 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;

• Cooperating with other elements of the CF and other Federal Government departments to demonstrate Canadian sovereignty, when and where necessary.

Project Phase: Definition/Implementation.

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

Prime and Major Sub-Contractors:

A/OPS is included in the National Shipbuilding Procurement Strategy (NSPS). Procurement options are being developed to precede either within a National Shipbuilding Program, should it be adopted by government, or outside such a program. No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval (EPA), planned for spring 2011.

Major Milestones
Major Milestones	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)	Spring 2011
Award of Implementation Contract	Spring 2011
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 (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 $3,030.8 million ($BY) full-up excluding GST or HST, for Implementation Phase (design build). So far, no variances in cost estimates have been identified. The A/OPS project is currently running on budget. A/OPS 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: 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
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
Prime Contractor	General Dynamics Land Systems, London, Ontario, Canada

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

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 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. Planning is currently underway 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 will take place in six locations: Edmonton, Wainwright, Petawawa, Montréal, Valcartier, and Gagetown. Construction activities are well under way and are scheduled for completion in early 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:

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 which began in fiscal year 2004-05 and will terminate in fiscal year 2015-16. It 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:

1. Secure Voice / Telephone Re-key Infrastructure
2. Secure Voice / Telephone Family
3. Classified Security Management Infrastructure
4. Combat Identification Family (Identification Friend or Foe (IFF))
5. Link Encryption Family
6. Network Encryption Family
7. Secure Radio Family
8. Secure Mobile Environment

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

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

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

Major Milestones
Project/Sub-project Major Milestones	Date
Preliminary Project Approval (PPA) for the CCMP Omnibus Project	March 2005
Preliminary Project Approval (PPA) for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure	November 2006
Preliminary Project Approval for Classified Security Management Infrastructure Phase 1B Implementation and Phase 2 Definition	February 2008
Secure Voice / Telephone Re-key Infrastructure – Completed	September 2009
Classified Security Management Infrastructure – Phase 1A Completed	2011
Secure Voice / Telephone Family – Completed	2011
Classified Security Management Infrastructure – Phase 1B Completed	2012
Secure Mobile Environment – Completed	2012
Link Encryption Family – Completed	2013
Classified Security Management Infrastructure – Phase 2 Completed	2014
Network Encryption Family – Completed	2014
Classified Security Management Infrastructure – Phase 3 Completed	2016
Combat Identification Family (Identification Friend or Foe (IFF)) – Completed	2016
Secure Radio Family – Completed	2016
CCMP Omnibus Project – Completed	2016

Progress Report and Explanations of Variances: The CCMP is executing within budget. The Secure Voice / Telephone Re-key Infrastructure project was closed on 30 September 2009. This is the first CCMP sub-project to reach completion. The following schedule changes have occurred since the fiscal year 2009-10 Report on Plans and Priorities (RPP).

• In November 2009, the CCMP Senior Decision Board (SDB) approved moving the Classified Security Management Infrastructure Phase 1A project closure from June 2010 to June 2012 in order to complete the activities required to sustain the current Government of Canada (GC) Electronic Key Management System.

• The completion of the Network Encryption Family sub-project has been moved from March 2011 to March 2014 to align with the implementation schedule of Defence.

• Definition of the Secure Radio Family began in March 2009 instead of March 2013 to provide additional time to define and implement the replacement of the large inventory of cryptographic equipment associated with Defence radios.

• The CCMP schedule is dependent on the American Crypto Modernization and Key Management Infrastructure programs. This allows Canada to leverage American Research and Development and maintain interoperability with its Allies. Completion dates for the sub-projects are regularly reviewed to keep them aligned with the American programs.

Industrial and Regional Benefits (IRBs): There are no IRBs associated with this program.

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
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
Prime Contractor	EDS Canada Inc., Ottawa, Ontario, Canada
Major Sub-Contractors	Mincom Pty. Ltd., Brisbane, 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 $289.3 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 will have ended as of the end of fiscal year 2009-10.

Industrial and Regional Benefits: This project includes the following overall IRBs:

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 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
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
Prime Contractor	Bell Helicopter Textron, Mirabel, Québec, Canada
Major Sub-Contractors	Pratt & 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 Explanation 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:

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
Participating Department and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
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 Explanation 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.

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

FORCE MOBILITY ENHANCEMENT (FME)

Description: The Force Mobility Enhancement (FME) project is a two-phase project. In Phase 1, the project will seek to replace Canada's aging Leopard 1 Armoured Engineer Vehicle (AEV) Badger fleet with a heavily protected and mobile platform capable of supporting the newly acquired Leopard 2 Main Battle Tank (MBT) until 2035. The project will seek to acquire 13 Leopard 2-based AEVs, with an option of an additional 5, including engineering implements for the AEV. In Phase 2, the project will seek to acquire tactical mobility implements for the in-service Leopard 2 MBT. Tactical mobility implements could include, but are not limited to, mine rollers, mine ploughs, and dozer blades. The project will also seek to acquire 2 Leopard 2-based Armoured Recovery Vehicles (ARV), with an option of an additional 2, as support variants for the AEV. The ARVs will be acquired by exercising contract options from the Tank Replacement Project (TRP).

Project Phase: Definition. The FME project entered the Definition Phase with the approval of TBS on June 18, 2009.

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

Prime and Major Sub-Contractors
Prime Contractor	To be determined
Major Sub-Contractors	To be determined

Major Milestones
Major Milestone	Date
Identification Phase Approval – Identification Phase	August 2008
Preliminary Project Approval (PPA) – Definition Phase	June 2009
Revised Preliminary Project Approval (Rev(PPA) – Expenditure Authority for Phase 1	March 2011
Initial Operational Capability for Phase 1	April 2014
Effective Project Approval (EPA) – Implementation Phase	April 2014
Full Operational Capability (FOC)	2015
Project Close-Out	2017

Progress Report and Explanations of Variances: The Chief of the Land Staff approved the indicative total project cost of $376.4 million (all costs are $BY including GST) in August 2008. On June 18, 2009, TBS approved $11.3 million in definition funds, allowing the Definition Phase to begin.

A Letter of Interest (LOI) for Phase 1 was released on July 17, 2009 and closed 28 August 2009. The release of a draft RFP for the acquisition of AEVs is scheduled for March, 2010. A final RFP will then be released in September, 2010.

The project will exercise unfunded Tank Replacement Project (TRP) contract options for the acquisition of the ARVs.

The project intends to return to TBS in March, 2011 for revised Preliminary Project Approval (PPA), seeking expenditure authority for Phase 1, and again in 2014 for EPA for Phase 2.

There are no cost variances to report.

Industrial and Regional Benefits (IRBs): This procurement will provide industrial regional benefits for the capital acquisition of the Armoured Engineer Vehicle, the Armoured Recovery Vehicle and tactical mobility implements. These IRBs requirements will be negotiated and accepted by Industry Canada prior to contract award.

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
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
In-Service Support Contractor (Class Design Agent)	Fleetway Incorporated, Halifax, 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 & 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

Progress Report and Explanation 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).

A 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. The project includes the acquisition of Unmanned Aerial Vehicles (UAV), Weapon Locating Sensors (WLS) and transformation or enhancement of existing sensor platforms to include Electronic Warfare (EW), Light Armoured Vehicle III, Coyote Reconnaissance Vehicle, Ground Based Air Defence, Geomatic support and Tactical Meteorology Systems.

Project Phase: Implementation. Delays have been experienced in formally advancing the sub-projects to the Implementation Phase due to the impact of numerous Unforecasted Operational Requirements (UOR) for Afghanistan that are related to and implemented by the LF ISTAR Project Management Office (PMO). In support of UOR for OPERATION ATHENA in the 2003-04 timeframe, the project delivered equipment in the areas of Command and Control, Tactical Unmanned Aerial Vehicles (TUAV), Weapons Locating Sensors and Electronic Warfare capabilities. These early deliveries enhanced professional knowledge and contributed to project definition work. Early delivery of elements of the Unmanned Aerial Vehicles, Electronic Warfare, and Data Link Communications sub-projects continued during 2006 with the UOR for OPERATION ARCHER. As well, urgently required systems, in particular the HALO Acoustic Weapons Locating System, the Lightweight Counter Mortar Radar system, and additional Electronic Warfare systems were fielded in 2007. Responding to the need for persistent surveillance identified by the Canadian Forces (CF) Counter Improvised Explosive Devices (IED) Task Force and confirmed in the recommendation of The Independent Panel on Canada's Future Role in Afghanistan, the LF ISTAR PMO delivered additional Small Unmanned Aerial Vehicle capability through a contracted service in 2008. In early 2008, the Electronic Warfare sub-project and the Command and Control sub-project were approved for implementation.

Leading and Participating Departments and Agencies
Lead Department 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
Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales (FMS)	US Army, USA
Light Weight Counter Mortar Radars (LCMR) - Foreign Military Sales (FMS)	US Army, USA
Small UAV Service Contract	In Situ, Bingen, Washington, USA
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 Unforecasted Operational Requirements (UOR)	May 2003
Treasury Board Project Approval in Arrears UAV UOR Full Operational Capability (FOC) 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 October 2009 December 2011
EW Sensors Treasury Board Effective Project Approval Phase 1 (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)	December 2010
Medium Range Radar Treasury Board Effective Project Approval (EPA)	December 2010
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 LF ISTAR Omnibus revised 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 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 TBS approval in December 2006 and Public Works and Government Services Canada (PWGSC) received TBS contract approval for radios in February 2007. The Foreign Military Sales (FMS) cases for 1,300 radios have been accepted. Delivery of equipment started in August 2008 and final delivery of the radio occured in June 2009. In February 2008, TBS approved the ISTAR Electronic Warfare and Command and Control sub-projects. Implementation is ongoing and equipment delivery has now started. The Command and Control sub-project has delivered an All Source Intelligence Center for support to the Vancouver Olympic and Paralympics Games and the G8 Summit.

The Tactical Unmanned Aerial Vehicle project was closed in June 2009 and the Acoustic Weapon Locating System and Beyond Line Of Sight sub-projects will close in March 2010.

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

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 idustry 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/Implementation.

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

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

Major Milestones
Major Milestone	Date
Treasury Board Preliminary Project Approval - (PPA)	November 2004
Invitation for Bids Posted on MERX	June 2006
Project Definition - Contract Award	December 2006
Contracted (PD) phase terminated	August 2008
Preliminary Options Analysis	Ongoing
Revised Preliminary Project Approval (Rev(PPA))	Winter 2010

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 provisions of $1,575 billion for the Project Implementation (PI) Contract for the delivery of the JSS capability (3 ships).

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 TBS by winter 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 ARMOURED VEHICLE III UPGRADE PROJECT (LAV III Upgrade)

Description: The recent experiences of CF and other nations in Afghanistan, Iraq and global operational theatres demonstrate the ongoing requirement for a highly protected, yet highly mobile Light Armoured Vehicle. The threats of mines, IEDs, explosively formed projectiles (EFPs) and anti-armour weapons have proliferated and are likely to be faced in most medium to high threat missions. Despite improvements to the protection of the vehicle, the current LAV III fleet has insufficient armour to defeat modern threats. Further, it has insufficient mobility given the increased weight of the vehicle due to the protection kits and the increased stowage of combat supplies in theatre. The target acquisition and fire control systems require upgrading to overcome obsolescence issues and to improve lethality. The LAV III Upgrade Project will capitalize on existing and evolving technology to upgrade a significant portion of the LAV III fleet to a standard required to protect the soldiers and equipment of the CF in current and future operations.

Project Phase: Definition. The objective of the Definition Phase is to design, produce, test and select appropriate upgrade packages to address the three main capability deficient areas of mobility, protection and lethality. A model contract was negotiated with the Original Equipment Manufacturer. PWGSC is currently seeking Contract Approval through TBS.

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

Prime and Major Sub-Contractors
Prime Contractor	General Dynamics Land Systems, London, Ontario, Canada

Major Milestones
Major Milestone	Date
Treasury Board Approval (DND)	June 2009
Treasury Board Approval for Contract Approval (PWGSC)	Early 2010
Implementation Start	Spring 2011
First Vehicle Delivery	Late 2011
Last Vehicle Delivery	Late 2017
Project Completed	Spring 2019

Progress Report and Explanation of Variances: The project received Preliminary Project Approval (PPA) in June 2009 and was announced by the Minister of National Defence (MND) in July 2009. In preparation for the PWGSC TBS Submission, a negotiating team engaged the Original Equipment Manufacturer (OEM) in a technical bid evaluation and an agreement in principal has been reached for the definition contract. The PWGSC submission to TBS for Contract Approval is scheduled for early 2010.

Industrial and Regional Benefits (IRBs): The majority of the work in the Definition Contract will be completed in London, Ontario, a region adversely impacted during the recent economic downturn.

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
Participating Department and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
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 (Phase 1) SMP	Date
Award of Contract	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 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 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 and should be completed by December 2009.

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 February 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 until the Long Term Support Contract (LTSC) (estimated value of $47 million including GST over 7 years), expected to be in place by April 2010, can be awarded. The Long Term Support Contract timeline and value has been reduced in order to better meet the land forces plan.

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. The project is awaiting spares deliveries in March 2010, at which time FOC will be declared. The project will then begin the close-out process with project closure scheduled for June 2010. Extension of project close-out date has been requested in order to address delays due to change of personnel and late deliveries.

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. On the subject of vehicle body cracks, an agreement was arrived at to address vehicles with body cracks and those potentially at risk of developing future cracks. MBC has provided an improved weapons station to address the deficiencies; the solution has been implemented since August 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. Industry Canada is working with MBC to identify regional components of the 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 (CF). This project will bridge a key facet of the land forces current indirect fire capability deficiency. Specifically, the project will field 25 M777 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 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 CF.

Project Phase: Definition. The LWTH project entered the Definition Phase with the approval of Treasury Board Secretariat (TBS) in June 2008. Expenditure and contracting authority was also delegated to Defence and PWGSC respectively for the M777 and DGMS acquisitions. The project is planning to enter into full implementation with MND approval in December 2009.

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

Prime and Major Sub-Contractors
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
M777 Foreign Military Sale (FMS) Agreement	November 2008
DGMS Contract Award	November 2009
Effective Project Approval (EPA)– Implementation Phase	December 2009
M777 Support Contract Award	January 2010
Initial Operational Capability (IOC)	June 2011
Final Operation Capability (FOC)	December 2012
Project Close-Out	June 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). In October 2009, the project has submitted a request to the MND for the EPA for the remaining project elements (M777 Support, Trucks and ammunition) with a total project cost $277.929 million (all costs are $BY including GST). The cost variance was mainly due to the fluctuations in the US and UK Sterling exchange rates. The EPA submission is currently with the MND and planned for approval in December 2009. This will permit the project to transition into Implementation and also grant expenditure authorities for the remaining project elements.

The Foreign Military Sales (FMS) Letter of Offer and Agreement (LOA) to procure 25 M777 howitzers was signed in November 2008.

The Contract Award for the DGMS 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 M777 Support Contract Award is planned to be awarded in the winter of 2010.

Industrial and Regional Benefits: The IRBs are an integral part of the Lightweight Towed Howitzer project. For the M777 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 M777 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 March 29, 2007 and Effective Project Approval (EPA) on June 11, 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
Participating Departments and Agencies	Industry Canada and the regional agencies

Prime and Major Sub-Contractors
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 April 2010
Prime Contractor for 8 Leopard 2 ARVs	To be determined August 2010

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	June 2008
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	Expect April 2010
Phase 2 – Contract for 8 ARVs	Expect August 2010
Full Operational Capability (FOC) – (Phase II)	December 2012
Project Close-Out	2014

Progress Report and Explanations of Variances: Due to schedule constraints to meet Initial Operation Capability (IOC), the Leopard 2 A6M tanks were deployed with slat armour. In addition, mine ploughs, mine rollers and dozers were not fielded with the loaned tanks, therefore, some Leopard C2 have remained in theatre.

EPA directed that work be done in Canada, for the training tanks and ARVs. The key risks are scheduling to achieve Full Operational Capability (FOC) in 2012 and cost management to deliver the core activities within the cost ceiling. The following issues continue to be managed:

• the effort of managing the multiple contracts;
• 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;
• the requirement to complete work in Canada (for the training tanks and ARVs) and the resulting risk to schedule and cost;
• ongoing sourcing of critical spares to support theatre and production activities;
• return to the German Government of loaned parts and test equipment, ARVs, and linkage of the Leopard 2 A6 contract with German requirements.

Industrial and Regional Benefits (IRBs): 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
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
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	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 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 (IRBs): The IRBs 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

MATERIEL ACQUISITION AND SUPPORT INFORMATION SYSTEM (MASIS)

Description: The mission of the Materiel Acquisition and Support Information System (MASIS) project is to provide Defence with 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 Defence related to the materiel acquisition and support functions, which are comprised of systems engineering, integrated logistics support (ILS), equipment configuration, technical data management, asset management, maintenance management, project management, performance management, operational support, business management, decision support analysis and contract management.

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

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

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

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

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

The project follows a cyclical approval and delivery methodology. In December 2003, an additional $34.4 million was approved to fund Phase 4 of the project, which has also been completed. In June 2007, the MASIS project received TBS approval in the amount of $170 million for Phase 5. Phase 5 activities include the rollout of MASIS functionality to CF land and air components. To date, Phase 5 activities are on budget and on time. Planned completion of this 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
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
Prime Contractor	The Boeing Company, Philadelphia, Pennsylvania, USA

Major Milestones
Major Milestone	Date
Synopsis Sheet Preliminary Project Approval (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 Explanation 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 in June 2009, at a value of $1,156 million (USD). 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 is required to identify 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 (Mil COTS) vehicles:
  • 1,300 commercial vehicles with militarized components.
• Special Equipment Vehicle (SEV) Kits:
  • Up to 1,000 special equipment vehicle kits, with options for an additional 150.

Project Phase: Definition for SMP and SEV Kitting, and Implementation for Mil COTS 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
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(PPA)) for Mil COTS 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 Milestones	Date
Preliminary Project Approval (PPA)	June 2006
Mil COTS - Invitation for Bids Posted on MERX	November 2007
Mil COTS – Revised  Preliminary Project Approval (Rev(PPA))	December 2008
Mil COTS - Contract Award	January 2009
Mil COTS - First Delivery	June 2009
Mil COTS - Delivery Complete	Summer 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	Summer 2010
SEV Baseline Shelter - Delivery Complete	Spring 2013
SMP - Invitation for Bids Posted on MERX	Spring 2010
SMP -  Revised  Preliminary Project Approval (Rev(PPA))	Spring 2011
SMP - Contract Award	Spring 2011
SMP - First Delivery	Spring 2012
SMP - Delivery Complete	Fall 2013
SEV Kits - Invitation for Bids Posted on MERX	Spring 2010
SEV Kits – Effective Project Approval (EPA)	Spring 2011
SEV Kits - Contract Award	Spring 2011
SEV Kits - First Delivery	Fall 2011
SEV Kits - Delivery Complete	Summer 2013
Project Close-Out	Fall 2014

Progress Report and Explanations of Variances: In December 2008, Project Management Office MSVS obtained TBS expenditure authority for Mil COTS 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, TBS 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.

• Mil COTS – 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. 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 spring 2010.

• SEV Kitting - A draft SEV Kitting RFP was posted on the project website in late December, 2009 for industry comment. The final RFP is planned for release in spring 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 Mil COTS vehicles and SEV Baseline Shelters with higher than anticipated price proposals, a volatile raw material market and fluctuation in foreign exchange rates.

At this time, Project Close-Out is anticipated for fall 2014. A continuous risk management program has been implemented and costing efforts for the Implementation Phases of SMP vehicles and SEV Kitting are progressing.

Industrial and 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: 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
Participating Departments and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
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 Explanation 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 (IRBs): Canadian industry in the following regions of Canada will benefit from the MAATS project.

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
Participating Department and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
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 $555 million ($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
Participating Department and Agencies	Industry Canada and its regional agencies

Prime and Major Sub-Contractors
Prime Contractor	The Government of the United Kingdom, (UK) of Great Britain and Northern Ireland, Ministry of Defence, UK
Major Sub-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 Explanation 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 June 2010 and complete this activity in December 2010.
• HMCS Windsor is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Scott. She is scheduled to undock in late 2010 and complete this activity in 2011.
• HMCS Corner Brook is operational and is participating in various exercises and patrols. Barring a six-month docking period commencing September 2009, she will remain operational until mid-2011.
• HMCS Chicoutimi was handed over to Canada in October 2004 and while en-route to Canada, she had an electrical incident at sea that resulted in a fire and was returned to Canada via sealift. Although some of the repairs have been completed, a decision was taken to delay the completion of the repair and Canadianization until her EDWP. HMCS Chicoutimi was signed over to the Canadian Submarine Management Group (In- Service Support Contractor) in June 2009. Her EDWP is scheduled to commence 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.

TACTICAL ARMOURED PATROL VEHICLE (TAPV)

Description: Emerging threats have highlighted a number of critical deficiencies with the G-Wagon Light Utility Vehicle Wheeled, the RG-31 Armoured Patrol Vehicle, and the Coyote Light Armoured Vehicle. These deficiencies include capacity, protection, mobility, weapons effects, information and human dimensions.

The Tactical Armoured Patrol Vehicle (TAPV) project will deliver to the land forces a wheeled combat vehicle that will overcome these deficiencies. This vehicle will fulfill a wide variety of roles on the battlefield, including but not limited to surveillance, security, command and control, cargo and personnel carrier. It will have a high degree of tactical mobility and provide a very high degree of crew protection.

The project scope includes an estimated initial purchase of 500 TAPV and an optional purchase of up to 100 additional vehicles, plus associated long-term in-service support.

Project Phase: Definition. The TAPV Project entered the Definition Phase with the approval of TBS on June 18, 2009. Expenditure and contracting authority for the Definition Phase were also delegated to Defence and Public Works and Government Services Canada (PWGSC) respectively for the TAPV and its associated in-service support.

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

Prime and Major Sub-Contractors
Prime Contractor	Not identified at this time
Major Sub-Contractors	Not identified at this time

Major Milestones
Major Milestone	Date
Identification Phase approved	March 26, 2008
Project Charter approved	May 29, 2009
Preliminary Project Risk Assessment endorsed	June 1, 2009
Definition Phase approved	June 18, 2009
Statement of Operational Requirements approved	January 2010
Implementation Phase approved	Summer 2011
Contract awarded	Autumn 2011
Initial Operational Capability (IOC) Delivery certified	2013
Full Operational Capability (FOC) Delivery certified	2015
Project Completion Report Approved	2017

Progress Report and Explanations of Variances: TBS approved the indicative total project cost of $1.250 million ($BY), plus $61.9 million GST for a total indicative cost estimate of $1.312 million ($BY). At the same time, TBS granted expenditure authority for the Definition Phase of this project at a substantive cost estimate of $37.5 million ($BY) plus $1.7 million ($BY) GST for a total substantive cost estimate of $39.2 million ($BY). The TAPV Project is currently within budget.

On November 14, 2008, the Defence Senior Project Advisory Committee approved a procurement strategy for a phased approach within a competitive process. Consequently, the TAPV Project issued a Letter of Interest/Request for Price and Availability (LOI/P&A) on July 9, 2009 to support cost planning. Results were received September 10, 2009. Given the multiple contenders who expressed interest in the LOI/P&A, the project will issue a Solicitation of Interest and Qualification (SOIQ) in early 2010 to pre-qualify potential contenders against essential TAPV requirements. Following the SOIQ evaluations, the project will issue a Request for Proposal (RFP) in late 2010 to those contenders that have addressed the SOIQ requirements. Final contract awarding will be completed in summer 2011 after Implementation Phase approval is given April 2011.

Industrial and Regional Benefits: This procurement will provide IRBs for the capital acquisition of the TAPV and its associated in-service support. These IRB requirements have been established at 100% on the acquisition and the in-service maintenance program.

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 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;
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: Implementation. Just over 85% 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
Participating Departments and Agencies	Industry Canada and Atlantic Canada Opportunities Agency

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

Industrial and Regional Benefits: There are no industrial and regional benefits strategy associated with this project.

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

Public Works and Government Services Canada



Status Report on Major Crown Projects

Parliamentary Precinct Project - Long Term Vision and Plan

1. Description

In 2007, Public Works and Government Services Canada (PWGSC) updated the Long-Term Vision and Plan (LTVP) for the Parliamentary Precinct. This update was undertaken in conjunction with the parliamentary partners - the Senate, the House of Commons and the Library of Parliament. The LTVP established a comprehensive approach for rehabilitating the heritage buildings, providing additional parliamentary accommodations and creating a secure and welcoming environment for parliamentarians, staff, visitors and tourists. It confirmed the long-term vision and guiding principles for the Precinct and the extensive set of planning and design principles created to guide future development. A major component of the LTVP Update was the creation of a new implementation framework designed to improve results and enhance accountability. This framework establishes short-term objectives in the context of the long-term vision and provides a strategy for getting projects underway and completed in an efficient and timely manner. The implementation strategy is composed of a broad strategic direction and a series of rolling five-year programs. The strategic direction establishes the renovation of the core historic parliamentary buildings - the West Block, Centre Block and East Block - as the first priority. Since Centre Block cannot be renovated while occupied, the East and West Blocks will be renovated first. This will be done not only to accommodate the interim uses from Centre Block, but also to address the pressing restoration work that is required on these two buildings. This work initiates a series of projects to create interim accommodation for those functions displaced from the East and West Blocks and, in a cascading fashion, triggers further projects required to house those displaced from buildings renovated for interim Parliamentary uses.

The rolling five-year programs establish short-term cycles for the approval of specific projects to implement the strategic direction. These shorter cycles provide greater flexibility in responding to government and parliamentary priorities, building conditions and current market conditions, and allowing for better accuracy in determining functional requirements and establishing project costs and scheduling. Each five-year program is composed of three components:

The Major Capital Program, which includes primary projects necessary to advance the overall objective of restoring the key heritage buildings;

The Recapitalization Program, which includes a series of urgent building interventions (related mostly to exterior masonry repairs), required to ensure the ongoing viability of buildings and address health and safety issues. These projects will be part of the full restoration work that will ultimately be done on these buildings and by undertaking them early will ensure that future projects are less complicated and costly; and

The Planning Program, which includes the development of more refined plans and reliable cost estimates for projects in the next five-year program.

2. Project Phase

Accordingly, the first five-year program includes projects for each of the three components. The core focus of the Major Capital Program is the stabilization and renovation of the West Block. Other projects will provide appropriate interim space to sustain the operations of Parliament while the West Block is being renovated, and will create interim and permanent facilities that meet the operational needs of Parliament and allow future phases of the LTVP to proceed in a cost-efficient manner. Specific projects will be undertaken in La Promenade Building, the Wellington Building, the former Bank of Montreal Building, and in several office buildings in downtown Ottawa.

The Recapitalization Program focuses on the core historic buildings and their physical state, and includes a series of projects for East Block, Centre Block and Confederation Building. These projects will ensure that the key buildings are consistently restored, as required; addressing problems that cannot wait until the major renovation projects can begin. The primary focus of these projects will be the long term restoration of discrete components of the buildings to extend their life.

The Planning Program will focus on preparing for the renovations of East Block. The intent is to ensure that West Block and East Block renovations are completed simultaneously so that work on the Centre Block can ultimately proceed without delay. The Planning Program will also include feasibility studies for future Centre Block renovations, and several master plans (including: underground infrastructure, west sector master plan, landscape master plan update, materiel handling and transportation, and Blocks 1,2,3).

Funding for individual projects within this five-year program will follow the normal approval process for government expenditures and will be approved by Treasury Board on a project-by-project basis.

3. Lead and Participating Departments

1. Lead Department or Agency: Public Works and Government Services Canada.
2. Contracting Authority: Public Works and Government Services Canada.
3. Participating Departments and Agencies: Senate of Canada, House of Commons, Library of Parliament.

4. Prime Contractor and Major Sub-Contractors

See separate notes for each specific project.

5. Major Milestones

See separate notes for each specific project.

6. Progress Report and Explanation of Variances

See separate notes for each specific project.

7. Industrial Benefits

See separate notes for each specific project.

Parliamentary Precinct Project - Wellington Building

1. Description

The Wellington Building is located at 180 Wellington Street, across from Parliament Hill. It is a six-storey structure first built in 1925 and later enlarged in the 1950's by Metropolitan Life Insurance Company. The House of Commons has been the major tenant since the Crown expropriated the building in 1973. Renovations of the building are required to address health and safety issues, replace obsolete building systems and meet building code requirements. The building will be completely vacated during the renovations. The Wellington Building is part of the Long Term Vision and Plan and will be used for Parliamentary accommodations.

2. Project Phase

The work will be completed in two phases to expedite project delivery. Phase 1 will include interior demolition, asbestos abatement and seismic reinforcement work. Phase 2, dependent on additional funding, will include the restoration of the exterior envelope, renovation of the base building and fit-up the interior space. The entire renovation is targeted to be completed in 2015 (depending on additional funding). The current total cost estimate is $425.2 million(current dollars, excluding GST). Separate project approval has been received for alternatespace at 181 Queen Street and 131 Queen Street.

3. Lead and Participating Departments

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

4. Prime Contractor and Major Sub-Contractors

Prime Contractor (Architectural, Mechanical and Electrical)	Design consultant for the Wellington renovation project is NORR Architects and Engineers Ltd., 175 Bloor Street East, Toronto, Ontario, M4W 3R8
Major Subcontractor(s)	Adjeleian Allen Rubeli (Structural) 75 Albert Street Suite 1005 Ottawa ON K1P 5E7 Fournier Gersovitz Moss and Associates (Heritage) 1435 rue St. Alexandre #1000 Montreal QC H3A 2G4

5. Major Milestones

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

*Subject to additional funding

6. Progress Report and Explanation of Variances

The Relocation Program is underway to completely empty the Wellington Building, whereby fourteen House of Commons operational units are being transferred to alternative locations in Crown-owned and leased facilities prior to start of construction in April 2010. Some relocations are temporary, pending completion of the renovation, while others are permanent. Alternative locations include 131 Queen, 155 Queen, 2086 Walkley Road, Confederation Building and 2455 Don Reid Drive in Ottawa and 45 Sacré Coeur in Gatineau.

7. Industrial Benefits

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

Parliamentary Precinct Project - West Block

1. Description

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

2. Project Phase

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

Phase 1 involves:

1. Emergency stabilization and rehabilitation of towers;

2. Repairs and conservation of the exterior masonry;

3. Fit-up of alternate accommodations in the La Promenade building and other locations for MPs, committee rooms and support services; and

4. The permanent relocation of the food production facility for Parliament Hill to a remote site.

Phase 2 involves*:

1. Fit-up of space for the relocation of Confederation Room 200 to the former Bank of Montreal building;

2. Asbestos abatement, interior demolition, and general rehabilitation of the West Block building; and

3. Associated infrastructure to support legislative functions during the renovation of the Centre Block, including a courtyard infill to accommodate Chamber activities, and provision of a security screening and material handling facility.

*Subject to additional funding

The current schedule calls for MPs and support staff to vacate the West Block in 2010, with construction to start on specific areas of West Block shortly thereafter. Overall completion is scheduled for 2020.

Current Treasury Board Preliminary Project Approval is $769.2 million, excluding GST.

3. Lead and Participating Departments

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

4. Prime Contractor and Major Sub-Contractors

Prime Contractor	Design consultant for the West Block renovation and fit-up project is ARCOP/FGM, architects in joint venture, 1244 Ste-Catherine Ouest, 3rd floor, Montreal PQ, H3G 1P1
Prime Contractor	Design consultant for the La Promenade fit-up project is KWC Architects Inc. 110 Argyle Avenue, Ottawa, Ontario K2P 1B4
Prime Contractor	General contractor for the La Promenade fit-up project is Pomerleau Inc., 220-343 Preston St. Ottawa, Ontario,K1S 1N4
Prime Contractor	General contractor for the North Towers stabilization and rehabilitation project is L'Unique General Insurance inc., 425, blvd. de Maisonneuve Ouest, suite 750, Montréal (Québec) H3A 3G5 with Verrault, 1080 cote du Beaver Hall, Suite 800, Montreal, Quebec, H2Z 1S8
Prime Contractor	General contractor for construction of the Food Production Facility for Parliament Hill is PCL Construction Ltd, 49 Auriga Drive, Nepean, Ontario, K2E 8A1
Prime Contractor	Design consultant for the Bank of Montreal rehabilitation project is NORR Architects and Engineers Ltd., 175 Bloor Street East, Toronto, Ontario, M4W 3R8

5. Major Milestones

Major Milestone	Date
Revised Preliminary Project Approval	June 2005
Partial Effective Project Approval (Phase 1)	June 2005
$17.2 million Spending Authority Approved for the development of preliminary design to EPA for West Block, Bank of Montreal, Wellington Committee rooms and project management support services for the program	December 2006
Effective Project Approval (Phase 1)	February 2007
MPs, parliamentary functions and support services vacate West Block	2010
Effective Project Approval	2010*
Major Construction Start	2010*
Major Construction Completion	2020*
La Promenade swing space completion	2010
Bank of Montreal	2014*
Food Production Facility	2010

*Subject to additional funding

6. Progress Report and Explanation of Variances

The West Block Program of work consists of sub-projects involving emergency stabilization of towers and masonry, several interim space projects, major renovations of the building and construction of a courtyard infill.

Stabilization:

The work presently underway is required in order to ensure the most at risk areas of the building envelope are stabilized. The work includes:

• South East Tower masonry pilot project - completed.

• North Towers - construction started.

• Tower scaffolding - contract documents for the MacKenzie and Laurier Towers, completed. Work will be done in Phase 2 as part of the overall building envelope program, unless building condition demands an earlier start date*.

• Masonry Wall Investigation and Research Project - conducted with the Intelligent Sensing for Innovative Structures (ISIS) Canada and three Canadian universities. This initiative is nearing completion. The objective is to gain and share leading edge knowledge on seismic reinforcing methodologies for heritage masonry walls. PWGSC constructed masonry wall sections, similar to those used in our Parliament buildings, in the University of Calgary seismic laboratories, in order to simulate seismic events and assess the reaction of various reinforcement methodologies.

*Subject to additional funding

Relocation Projects:

• La Promenade swing space (temporary accommodation) - scope of the project consists of restoring the building and fitting up 62 MP suites and 3 committee rooms for parliamentarians. The demolition and building envelope remediation (Phase I) contract has been completed. The construction contract for the fit up package was awarded and construction has begun. As part of the design process, a mock up suite was constructed, tested successfully and approved by the House of Commons.

• Bank of Montreal Building, located at 144 Wellington Street - has been identified as the permanent alternate location for West Block's Confederation Room 200 functions. A major RFP was posted on MERX and a prime consultant contract for the main design work was awarded to Norr Architects and Engineers, 200 Tremblay Road, suite 152, Ottawa. Completion is scheduled for 2014*.

• Food Production Facility - will be permanently relocated off-site. Solicitation for a design build contractor was awarded to PCL Construction Ltd, 49 Auriga Drive, Nepean, Ontario, K2E 8A1 (Ottawa). Completed Fall 2009.

*Subject to additional funding

7. Industrial Benefits

Several multi-million dollar contracts will be awarded over a ten-year period for building construction, information technology systems, multimedia systems, furniture and other equipment. An estimated 3,500 private sector jobs will be generated by this program of work.

Pension Modernization Project

1. Description

The Government of Canada Pension Modernization Project (GCPMP) has been initiated to renew PWGSC's pension administration systems and business processes in order to ensure the sustainability of the pension administration and improve services to employees, employers and pensioners. The current pension administration processes and system infrastructure are nearly 40 years old. They depend on outdated technology that is expensive to maintain, limits the Government's ability to provide modern services such as web-based self-service, and relies on inefficient and error prone manual processes. The GCPMP will replace existing systems with commercial off-the-shelf software products, streamline business processes, and introduce broader, more flexible service delivery methods. Although the project is focused on the Public Service Superannuation Act administration, the project will implement a multi-plan solution that will provide for other pension plans within the public service.

2. Project Phase

The GCPMP began its Implementation Phase in July 2007, following receipt of Effective Project Approval from the Treasury Board. The GCPMP Implementation Phase will take approximately four and a half years to complete.

3. Lead and Participating Departments

Lead Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	Public Works and Government Services Canada

4. Prime Contractor and Major Sub-Contractors

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

5. Major Milestones

This subsection lists the major milestones associated with the progress of the Major Crown Project (MCP).

Major Milestone	Date
Preliminary Project Approval for completion of Project Definition	Completed May 2004
Approval of contract award	Completed October 2005
Contract Award	Completed November 2005
Completion of Project Definition	Completed June 2007
Effective Project Approval for Implementation	Completed June 2007
Implementation Phase
Implementation of Release 1.0 (Client Services)	Completed February 2009
Implementation of Release 1.5 (Case Management functions)	Revised to December 2009
Implementation of Release 1.6 (decoupled from R.1.5) (Imaging functions)	January 2010
Implementation of Release 2.0 (Contributor functions and functions related to Pension Benefits Division Act - except functions related to Service Purchase and Leave Without Pay)	Revised to June 2010
Implementation of Release 2.5 (Contributor functions related to Service Purchase and Leave Without Pay)	Revised to November 2010
Implementation of Release 3.0 (Annuitant and Accounting functions)	October 2011
Final maintenance transition	January 2012
Close-Out Phase	January 2012

6. Progress Report and Explanation of Variances

Project Definition Phase (completed June 2007):

• At Preliminary Project Approval, the Treasury Board approved the completion of the Project Definition Phase and funding in the amount of $18,742 million (excluding GST). The GCPMP completed this phase at a cost of $18,335 million, although there was a delay of approximately six months in obtaining Effective Project Approval.

Implementation Phase (in progress):

• At Effective Project Approval, in June 2007, the Treasury Board approved implementation of the GCPMP and funding in the amount of $184,750 million. The amount budgeted from June 2007 to September 30, 2008, was $67,310,380. Actual expenditures for implementation activities from June 2007 to September 30, 2008, are $39,179,955. The cost variance resulted from lower-than-estimated costs for Human Resources, operations, maintenance and the delay in the Release 1.0.

• Release 1.0 was completed six weeks behind schedule for the Siebel components and three months behind schedule for the telephony components. This represents an 8% schedule variance on 85% of the release's scope (Siebel components) and a 10% variance for the telephony components (remaining 15% of Release 1.0 scope).

• The GCPMP is currently involved in activities related to Releases 1.5, 2.0 and 2.5. Release 1.5 is three months behind schedule for the Siebel components as a result of the three-month delay in Release 1.0. The imaging component will be further delayed due to technical problems encountered during readiness testing. At the release level, this represents a 20% variance on the Siebel scope and a 27% variance on the imaging scope. Release 2.0 is also three months behind schedule due to the three-month delay in Release 1.0. As well, the start of Release 2.5 was deferred by four months to minimize the impacts of the delays of previous releases. However, at the project level perspective, these delays are not expected to impact the overall project implementation, which is still expected to be completed in early 2012.

7. Industrial Benefits

A multi-million dollar contract has been awarded for the COTS products, as well as for the professional services to implement the new systems, and for support services and ongoing maintenance. The implementation will be conducted in several phases over a four-and-a-half-year period (2007-2011). During that time it is expected that there will be some temporary positions required to support the system implementation and business transformation activities. In the long term, the project will provide the infrastructure and processes essential to the sustainability of current pension administration operations, and of positions in Shediac, New Brunswick.

Transformation of Pay Administration Initiative – Pay Modernization Project

1. Description

PWGSC received preliminary project approval in July 2009 for the Transformation of Pay Administration Initiative which is made up of two projects; Pay Modernization and Pay Consolidation. The goal of this initiative is to transform the systems and processes by increasing flexibility and web self-service for managers and employees and improving efficiency in service delivery; thereby generating significant government-wide operational savings. Of these two projects that make up this initiative the Pay Modernization Project has been identified by Treasury Board (TB) as being a Major Crown Project.

The Pay Modernization Project involves the renewal of PWGSC's compensation administration services, systems and business processes. The Pay Modernization Project will replace PWGSC's 40-year-old technology and business processes with a commercial-off-the-shelf pay solution in order to ensure PWGSC's continuing ability to fulfill its mandate and to provide modern, "industry standard" services to public service employees.

2. Project Phase

Project Definition Phase (post preliminary project approval)

3. Lead and Participating Departments and Agencies

Lead Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	This project will be delivered by PWGSC ABC branch in partnership with ITSB. Although there are no participating departments in the project delivery, there are primary stakeholders as follows: Treasury Board of Canada Secretariat: TBS, as the employer for the core public administration, according to the Financial Administration Act (FAA) Schedule I and IV, sets compensation policies and negotiates collective agreements with unions representing employees of those organizations. Separate Agencies: These organizations, named in Schedule V of the FAA, negotiate collective agreements, set compensation policy for their employees, and have primary responsibility to ensure that their employees receive accurate and timely pay and benefits. Crown Corporations and Other Federal Entities: As the employer, these organizations, named under Schedules II and III of the FAA, or are not listed under a specific FAA schedule, negotiate collective agreements and set compensation policy for their employees. Departments, Agencies and other Organizations: These organizations have primary responsibility to ensure that their employees receive accurate and timely pay and benefits.

4. Prime Contractor and Major Sub-Contractors

Prime Contractor

There is no Prime Contractor currently on board. The current schedule identifies that the procurement activities for acquiring the Prime Contractor are planned for completion by the end of January 2011.

Major Subcontractor(s)

There is currently a standing offer with PriceWaterhouseCoopers for the provision of Advisory Services for the duration of the project. The current schedule identifies that the procurement activities for acquiring the firm for the Project Management Office (PMO) are planned for completion by the end February 2010 and the procurement activities for acquiring the Prime Contractor are planned for completion by the end of January 2011.

5. Major Milestones

List of Major Milestones	Date
Definition Phase Request for Information for Commercial Off-the-Shelf/Solution Integrator (ongoing - closes October, 2009) Request for Proposal for Project Management Services (ongoing - closes October, 2009) Request for Proposal and Contract Award for Commercial Off-the-Shelf/Solution Integrator Fit-Gap Business Model (Processes) Technical Architecture Design Confirm schedule and costs	October 2009 to April 2012
Implementation Phase Configuration Testing Training Implementation	May 2012 to July 2015

6. Progress Report and Explanation of Variances

• Initially, on July 30, 2009, the Treasury Board approved the “Initiative to Fix the Pay System” (Transformation of Pay Administration) which included the Pay Modernization Project with an estimated cost of $192,067,332 (including GST).

• The Pay Modernization Project start date was October 1, 2009.

• The Pay Modernization Project is currently in its definition phase and is on schedule and on budget.

• Activities on schedule include:

  • Request for Proposal (Project Management Office)

  • Request For Information (System Integrator, commercial off-the-shelf products (COTS))

  • Request For Proposal Development (Bid Posting; Bid Evaluation; Vendor Selection; and, Contract Approval)

7. Industrial Benefits

The following table outlines the expected outcomes as a result of implementing the initiative, as indicated in the Performance Measurement Framework:

Outcome Type	Outcome
Strategic Outcome	GC is employer of choice
	Increased Contribution to PS Renewal/MAF
	Increased stakeholder confidence in Payroll Administration function
	Supports Recommendations of OGGO Report
	Greening Government Operations
Final Outcome	Increased Pay Administration Sustainability
	Increased GC Operational Savings
Measured Outcome	Increased employee satisfaction
	Decreased time to train pay administration staff
	Decreased cost to deliver pay administration
	Decreased materiel usage (e.g. paper, mail)
	Decreased work effort for Compensation Advisors

The region of delivery for the Pay Modernization Project is the National Capital Area.

Royal Canadian Mounted Police



Status Report on Transformational ¹ and Major Crown Projects ²

Real Time Identification (RTID)

Description:

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

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

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

The Project was established under the sponsorship of National Police Services. The Chief Information Officer was appointed Project Leader, responsible for achieving the technology improvements associated with the project. The Project Director reports to the Chief Information Officer.

Project Phase:

The Project is being delivered in two major Phases. RTID Phase 1 modernized the civil clearance process by replacing the Automated Fingerprint Identification System (AFIS) and implementing a new transaction manager permitting agencies to submit their fingerprint information electronically. Phase 1 was closed in September 2008.

RTID Phase 2 will modernize the processes related to the management and update of the criminal records. The release of RTID Phase 2 has changed into a subset of the original and will concentrate on a core criminal records release. Further releases will be required to bring it to end state. Release 2.0 is scheduled for production in 2011-2012. However, the Independent Review will validate the schedule. Release 2.0 is a re-engineering effort and will replace some of the antiquated legacy systems. RTID Phase 2 Release 2.0 is currently in the implementation phase.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Fujitsu Consulting (Canada) Inc/Fujitsu Conseil (Canada) Inc 600-360 Albert Street Ottawa, Ontario K1R 7X7
Major Subcontractors	ADGA Group 600-616 Albert Street Ottawa ON K1P 5G3 Cogent Systems, Inc. 639 North Rosemead Blvd. Pasadena CA 91107, USA

Major Milestones

List of Major Milestones	Date
Automated Fingerprint Identification System (AFIS) and infrastructure to permit electronic fingerprint processing in production	March 2007
Electronic fingerprint processes for civil purposes implemented	March 2007
Contract for Criminal Record Workflow Component of RTID System (Phase 2) awarded	February 2008
Electronic processing of latent (crime scene) fingerprints implemented	March 2008
Criminal Record Workflow Component Implemented	2011
Project Closed	2012

Progress Report and Explanation of Variances

The development work for Phase 2 Release 2.0 is underway and expected to be delivered in July 2011. It is currently on budget but behind schedule. An amended Effective Project Approval (EPA) submission to Treasury Board will be submitted in the Spring of 2010 to re-baseline the project schedule utilizing the ongoing Independent Review's recommendations.

Industrial Benefits

There are no industrial benefits of the Real Time Identification Project.

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¹ As defined in the Policy on the Management of Projects
² As defined in the Policy on the Management of Major Crown Projects.

Transport Canada



Status Report on Transformational [1] and Major Crown Projects [2]

Description:

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

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

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

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

The Bridge

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

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

Selection of the bridge type will be made during subsequent design phases of this project. Neither bridge type requires piers to be placed in the Detroit River.

Customs Plaza

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

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

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

Ontario Access Road

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

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

The Rationale for the Project:

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

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

Project Phase:

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

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

Industrial Benefits

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

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

Transportation

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

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

Economic

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

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

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

Security

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

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

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[1] As defined in the Policy on the Management of Projects.

[2] As defined in the Policy on the Management of Major Crown Projects.