ARCHIVED - 2012-13 RPPs - Status Report on Transformational and Major Crown Projects

Description:

In the 2007 Speech from the Throne, the Government outlined that there are both new opportunities and new challenges in the North, and indicated it would bring forward an integrated Northern Strategy focused on strengthening Canada's sovereignty, protecting environmental heritage, promoting economic and social development, and improving and devolving governance. As a signature deliverable of this new commitment, the Government also promised to "build a world-class Arctic research station that will be on the cutting edge of Arctic issues, including environmental science and resource development. This station will be built by Canadians, in Canada's Arctic, and it will be there to serve the world." The Prime Minister announced Cambridge Bay, Nunavut as the location for the Canadian High Arctic Research Station (CHARS) in August 2010. CHARS is scheduled to open on July 1, 2017, Canada's 150th anniversary.

Project Phase:

Design. Budget 2010 provided $18 million over four years for the design of CHARS. The selection of a design consultant is currently underway.

Leading and Participating Departments and Agencies

Lead Department	Aboriginal Affairs and Northern Development Canada (AANDC)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	AANDC and PWGSC

Prime and Major Subcontractor(s)

Prime Contractor	A Construction Manager will be identified in 2012
Major Subcontractor(s)	Construction is scheduled to begin in 2014

Major Milestones

List of Major Milestone	Date
Creation of a Canadian High Arctic Research Station announced	Speech from the Throne 2007
CHARS Feasibility: $2M over 2 years	Budget 2009
CHARS Design: $18M over 4 years	Budget 2010
Cambridge Bay location announced by Prime Minister	August 2010
CHARS mandate announced by Minister	December 2010
Feasibility Study Released on Science.gc.ca	September 2011
RFP for Design Consultant Tendered	September 2011
RFP for Design Consultant Closed	November 2011
Design Consultant Proposals Evaluated – Phase 1	December 2011
Seek Decisions on Construction Funding	Winter 2012
Design Consultant Proposals Evaluated – Phase 2	February 2012
Tender for Construction Manager	Spring 2012
Award Design Consultant Contract	August 2012
Recommend Site in Cambridge Bay	December 2012
Award Construction Manager Contract	January 2013
Announce Design Concept	Spring 2013
Provide Class 'B' Estimate for Construction	November 2013
Complete Land Acquisition in Cambridge Bay	December 2013
Attain Effective Project Approval for Construction	April 2014
Begin Construction	Fall 2014
Finalize Design	2014/15
Open on 150th Anniversary of Confederation	July 1, 2017
Commissioning Complete	March 2018

Project Outcomes

• The objective of this project is to provide researchers with access to a world-class Arctic science and technology platform in the Canadian North by establishing the Canadian High Arctic Research Station (CHARS). Performance indicators will be developed with the Business Case to confirm this objective has been reached.
  
  
• Beneficiaries of this project include scientists, Northerners, and all Canadians.

Progress Report and Explanations of Variances

• In March 2011, Treasury Board granted Preliminary Project Approval for the Canadian High Arctic Research Station Major Crown Project at an indicative cost of $208,734,100 inclusive of Harmonized Sales Tax (HST) of $23,210,975.
  
  
• Also in February 2011, Expenditure Authority for the Project Definition Phase was granted at a substantive cost estimate of $19,862,959, inclusive of HST of $1,862,959, to proceed with the design phase for the Canadian High Arctic Research Station.
  
  
• The Canadian High Arctic Research Station Major Crown Project is currently running on budget.
  
  
• The Canadian High Arctic Research Station Major Crown Project is to be completed by July 1, 2017.

Industrial Benefits

• Design and construction of CHARS will provide jobs in the Kitikmeot region of Nunavut, across the North, and in specialized sectors in Southern Canada.
  
  
• Canada's consultation and procurement obligations as specified in the Nunavut Land Claims Agreement Act will be respected, and where possible exceeded, in the implementation of the CHARS initiative. Inuit and Northern participation in CHARS construction will be a fundamental component of the construction bidding process. Local and regional businesses will benefit from goods and services procurement, and an Inuit training and capacity- building plan is being developed for CHARS that addresses the requirements of the land claim.
  
  
• The continued participation of Northerners in the planning and construction of CHARS, and in future science and technology programming, internships, and employment at the Station, will provide Northerners with new skills and career experience. It is expected that employment of Northerners in a wide range of sectors from mining and energy, through natural resources and wildlife management, to health and life sciences will be increased.

Description:

Agriculture and Agri-Food Canada (AAFC) identified the need to make strategic changes to the way Grants and Contributions (Gs&Cs) programs were delivered to the Canadian public with the aim of simplifying their administration while, at the same time, strengthening accountability and risk-based approaches for managing programs.

Drivers for this coordinated action include the overall Government of Canada (GoC) Gs&Cs reform, administrative reform efforts and service excellence, and the Report of the Independent Blue Ribbon Panel on Gs&Cs Programs "From Red Tape to Clear Results" for efficient management and effective access to Gs&Cs.

AAFC's response to these drivers resulted in the need for the Grants and Contributions Delivery Project (GCDP) which is two-fold in scope:

• Business Transformation: the departmental adoption of a Common Business Process Model to design, deliver and report on non-Business Risk Management (BRM) Gs&Cs programs; and
• Common Tools Utilization: the implementation of a departmental "one common platform" for the electronic delivery and management of non-BRM Gs&Cs programs.

The GCDP was repositioned in April 2010 to ensure that: it complied with the Department's overall Gs&Cs reform; it supported GoC administrative reform efforts; and rigorous project management controls required for projects of this size were implemented.

Phase I of the GCDP was completed in March 2011. This Phase included the completion of a flexible component based architecture, design and costing, confirmation of the "best fit" solution, selection of three programs (Early Adopters) to represent all non-BRM programs and completion of a business alignment exercise for validation of a Common Business Process Model.

In February, 2011, approval was received to move forward with Phase II of the GCDP for the implementation of the Common Business Process Model onto a common information system, the Grants and Contributions Delivery System (GCDS), using a validated solution. Together, the Common Business Process Model and associated information system will improve the access, management and delivery of non-BRM programs. Completion of the GCDP is set for March 2013.

Project Phase:

This project is currently in the implementation phase.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractors

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

Major Milestones - GCDP Phases I and II

Major Milestones - Phase I	Completion Date
Preliminary Project Approval	June 4, 2009
Conceptual Design and Approved Architecture	June 30, 2010
Confirm "Best Fit" Solution	October 31, 2010
Preliminary / Detailed Design	November 30, 2010
EPA Package Approval	February 17, 2011
Business Transformation (Early Adopter Programs)	March 31, 2011
Major Milestones - Phase II	Target Date
Business Transformation	August 31, 2011
GCDS Support Centre Staffing	October 31, 2011
Release 1 - Basic Program Office	November 30, 2011
Release 2 - Saturn Integration and Legal Amendments	April 30, 2012
Release 3 - Front Office	August 30, 2012
Release 4 - Business Intelligence	October 31, 2012
Release 5 - Transactional Processes and Interfaces to other Departmental Systems	October 2012
Treasury Board Reporting (results of the Independent Assessment)	October 2012
Project Closeout	March 31, 2013

Project Outcomes:

• Increased decision support through improvement of performance reporting across Gs&Cs programs;
• Increased consistency of program delivery through the rationalization of work processes and enabling technological infrastructure;
• Increased accessibility and transparency for clients of Agriculture and Agri-Food Canada in the delivery of services;
• Increased auditability in how Agriculture and Agri-Food Canada aligns to legal, political and policy changes; and
• Increased value for money in how Agriculture and Agri-Food Canada executes, monitors, and controls ongoing operations.

Progress Report and Explanations of Variances

Progress To Date:

Phase I of the project - Complete
Conceptual Design - Complete
GCDS Support Centre Staffing - Underway
Business Transformation - Common Model in place, business alignment complete for "Early Adopter" Programs as part of Phase I, and alignment of remaining and new programs is underway
Technical design and configuration - Underway

Financial Information:

1. Proof of Concept (PoC) of the GCDP from February 2006 to May 2008, incurred costs of $3,074,200 (excluding GST/HST of $153,710).
2. In June 2009, the GCDP received approval and funding ($2,344,155 - excluding GST/HST of $79,388) to conduct Preliminary Project Approval (PPA). Phase I of the project was from April 1, 2009 to March 31, 2011.
3. On February 17, 2011, project approval was provided for the GCDP and expenditure authority for the implementation of the GCDP at a substantive cost estimate of $9,987,411 (excluding HST of $734,996), for fiscal years 2011-12 and 2012-13, bringing the total expenditure authority to date to $15,405,767 (excluding GST/HST of $968,093), which includes the 2006-2008 PoC and the 2009-2011 PPA.
4. The GCDP is currently running slightly under budget as some key procurement contracts have not yet been initiated and there have been staffing delays of the Information Systems Branch GCDS Support Centre.
5. The GCDP is to be completed by March 31, 2013.

Industrial Benefits:

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

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

Note: Further details on this project can be found in the Status Report on Projects operating with specific Treasury Board Approval in the 2010-11 Departmental Performance Report.

eManifest

1. Description:

eManifest represents Phase III of the Advance Commercial Information program, 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.” It will accomplish this by requiring carriers to electronically submit all pre-arrival commercial information (including 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, assist with ensuring that efficient border procedures are in place, and help secure the international trade supply chain.

2. Project Phase:

The CBSA is deploying eManifest in multiple phases, whereby deliverables are being implemented at various stages throughout the project, according to client group. During the life cycle of the project, the CBSA will undertake activities related to the electronic receipt and automated risk assessment of pre-arrival data including:

• primary and secondary cargo information;
• conveyance information;
• crew/driver information; and
• importer release / advance trade information.

The project will also see the development of the following:

• 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
• capacity and infrastructure that are sufficient to meet established pre-arrival reporting time frames and volumes.

In addition, some activities included in the list above will be implemented or retrofitted for the air and marine modes because the activities were not included as part of Phases I and II of the Advance Commercial Information program. These are:

• 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
• multi-modal manifest suitable for all modes of transportation.

3. Leading and Participating Departments and Agencies

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

4. Prime and Major Subcontractor(s)

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

5. Major Milestones

List of Major Milestone	Date
Rail carriers to transmit cargo and conveyance data will begin an 18-month implementation timeline	2012
Freight forwarders in all modes of transportation to transmit house bill / supplementary cargo data will begin an 18-month implementation timeline	2012
Importers begin transmission of importer data (beginning with the marine mode)	2013
Full implementation of eManifest in all modes of transportation expected	2014

6. Project Outcomes

eManifest has the following immediate outcomes:

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

eManifest has the following strategic outcomes:

• International trade and travel are facilitated across Canada’s border and Canada’s population is protected from border-related risks.

7. Progress Report and Explanations of Variances:

The following eManifest project achievements were realized between 2007 and 2010:

• completed successful consultation and communication activities with external stakeholders within the trade community through the eManifest Stakeholder Partnership Network and the Border Commercial Consultative Committee;
• implemented the foundations for an automated border process with U.S. Customs and Border Protection to support the secure movement of commercial goods through Canada and/or the United States by land;
• introduced the ability to extract U.S. marine cargo data on U.S.-destined cargo;
• made changes to the Accelerated Commercial Release Operations Support System / Canadian Food Inspection Agency interface;
• implemented a notification system (carriers are notified when primary cargo reports are matched with supplementary cargo reports);
• improved TITAN/Accelerated Commercial Release Operations Support System linkages;
• introduced the ability to validate appraisal quality data with the Harmonized System Code;
• introduced the ability to perform an historical search to view all details of the cargo/container/conveyance;
• Bill S-2, an Act to amend the Customs Act, received Royal Assent on June 11, 2009 (the Act contains modifications to the requirements for advance commercial reporting 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);
• implemented Phase I of the electronic data interchange for rail reporting, enabling facilitated electronic processes for use by rail carriers;
• developed 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;
• implemented electronic data interchange for highway carriers;
• highway carriers began transmitting cargo and conveyance data to the CBSA through the electronic data interchange system in advance of their arrival at the border;
• trained nearly 1,500 staff across Canada (border services officers, superintendents and clerks in the highway mode, and client services officers) through WebEx, a Web-based interactive learning environment, and conference calls. Other employees will be trained with an eLearning product;
• developed and distributed multiple training products (manuals, quick reference guides); and
• conducted multiple consultations with the eManifest Stakeholder Partnership Network.

The following eManifest project achievements were realized in 2011:

• Implementation of highway carrier reporting. Electronic Data Interchange (EDI) systems are now available to highway carriers who have completed registration and testing of their systems with the CBSA to begin transmitting their pre-arrival cargo and conveyance data before arriving at the border. The CBSA continues the registration of new carriers clients;
• Passage enhancements to the existing system now provide border services officers with the ability to retrieve, view, update data online and through reports, log arrival of the conveyances in highway mode, make decisions and retrieve trip information by alternative keys;
• Phase I of infrastructure upgrades support an expected increase in eManifest volumes and process requirements for highway carriers;
• The first iteration of development of the Agency’s first Internet-based service window, the eManifest Portal, was delivered to the business community in the summer of 2011.  This secure data option was developed primarily for small to medium sized enterprises to facilitate their compliance and make the transition from paper to electronic reporting more manageable.
• The distribution of the Electronic Commerce Client Requirements Document for highway carriers to the trade community was completed; and
• Consultations took place with stakeholders on the design, development, implementation and communication activities of eManifest.

The spending profile was adjusted to reflect figures in the effective project approval submission dated November 2007. The total amount spent during 2008-09 was primarily related to the design and development of components towards the implementation of electronic reporting in the highway mode. Such components include electronic reporting interchange, the 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. 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 economic environment, the Government of Canada requested a temporary rollback of $85 million (to be repaid over two years commencing in 2011-12) to support other government pressures. This rollback necessitated a complete review of project spending profiles and the project deployment strategy. As such, project components were realigned to account for yearly pressures related to this budget reduction, which included moving procurement activities for infrastructure and hardware to future years. A significant number of yearly carry-forwards are associated with procuring a data warehouse and associated tools. As a result of this realignment of project funds, the last project release is now scheduled for 2013-14, a delay of two years from previous reports.

Starting in 2011-12, the eManifest major project will only receive maintenance funds as detailed in the Preliminary Project Approval (PPA). As previously planned, the funds used for development in fiscal year 2011-12 are derived from carry-forward amounts from previous years and from the first installment ($50 million) of the $85 million temporary rollback by the Government of Canada.

8. Industrial Benefits:

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, trans-border 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 right data at the right time. eManifest will use sophisticated tools and technology and rigorous risk assessment systems to interdict threats prior to their arrival at the border.
• 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 border, streamline the clearance process and reduce border congestion.
• Consistent 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 in line with 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 U.S. 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 trans-border trade, the CBSA will make enhancements to its information technology infrastructure that will improve system performance and reliability.

Temporary Resident Biometrics Project

1. Description:

The Temporary Resident Biometrics Project (TRBP) is a major crown project led by Citizenship and Immigration Canada (CIC) in partnership with the Canada Border Services Agency (CBSA) and the Royal Canadian Mounted Police (RCMP).  The business objective of TRBP is to streamline identity management within the Government of Canada temporary resident program. Against the backdrop of the rise of identity fraud globally and the use of ever more sophisticated means to evade detection, a key challenge in Canada’s immigration program is identifying applicants and managing their identity with confidence.  The TRBP is not aimed at a re-engineering of processes and systems, but rather an enhancement to existing processes for visa/study and work permit applications and visitor entry and leveraging of investment in existing CIC, CBSA and  RCMP systems to the maximum extent possible.

Budget 2008 provided the CBSA with funding of $12.7 million. With this funding, the CBSA will design and develop a photo verification solution on Primary and Secondary Inspection at all Ports of Entry (POE), as well as a discretionary biometric verification solution in Secondary at select POEs.  The CBSA is currently on schedule to implement the above-noted work components by March 2013.

2. Project Phase:

The TRBP is currently in its analysis and design phase and will begin the construction and implementation phases in late fiscal 2011–12. During the analysis and design phase, CIC, the CBSA and the RCMP are working collaboratively to define and develop the solution, as well as the approaches and plans for implementing the TRBP. Partners have developed business and supporting infrastructure requirements, and these will 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 will fit and work together (supporting architectures).

During the construction and implementation phases, 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

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

4. Prime and Major Subcontractor(s)

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

5. Major Milestones

List of Major Milestone	Date
Building of the technical solution	Fall 2012
Completion of the Memorandum of Understanding between the CBSA and the RCMP	Fall 2012
Finalization of training manuals and standard operating procedures	Fall 2012
Deployment of the solution to the regions	Fall 2012
Provision of training	Winter 2013

6. Project Outcomes

The objectives of the TRBP are to:

• Strengthen identity management: Ensure that the Government of Canada is using accurate and robust tools to store and safeguard client identity information so that only legitimate holders of Temporary Resident Visas / Study Permits / Work Permits and Temporary Resident Permits gain entry to Canada;
• Enhance security: Reduce the likelihood that known criminals or immigration violators will gain access to Canada through the temporary resident visa program;
• Improve program integrity: Introduce additional tools that make it more difficult for illegal migrants, previous deportees and people smugglers and traffickers to exploit identity loopholes for economic benefit by assuming different identities.  Identity and nationality information of refugee claimants, gained through biometric checks, will support decision making at the Immigration and Refugee Board; and
• Facilitate processing of legitimate clients: For returning clients, biometric identifiers will improve operational efficiency by reducing the burden on paper and the time taken at POEs to re-establish identity.  More efficient and effective identity management is one of a number of key enablers in support of ongoing processing improvements that will enable CIC to increasingly automate service delivery — and help guide CIC service delivery.

7. Progress Report and Explanations of Variances:

• With the $12.7 million that the CBSA received in Budget 2008, the project has been re-scoped to complete only photo verification at Primary and in Secondary Inspection at all Canadian POEs with immigration processing capabilities, and discretionary biometric verification in Secondary Inspection at selected POEs.
• The effort required to conduct the cost analysis, the uncertainties in terms of project scope, and the need to revisit project plans have delayed the Effective Project Approval submission, which had been planned for fiscal 2009–10.  The Effective Project Approval was granted in February 2011.
• Business Use Cases have been developed and approved and system use case development is currently underway. 
• Partners are holding ongoing discussions on how to operationalize the business requirements through the development of an implementation plan.
• Due to delays in the Request for Proposal process, it is unlikely that the CBSA will procure any equipment in Fiscal Year 2011–2012.  Funding required for the purchase of the equipment and software development kit will be carried forward to Fiscal Year 2012–2013.
• Pending no further delays with the Request for Proposal, the CBSA will be ready to implement the Temporary Resident Biometrics reduced scope solution by March 31, 2013 as originally envisioned.

8. 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.

Air Cargo Security

1. Description:

The primary objective of the Air Cargo Security Program is to develop a comprehensive air cargo security regime in Canada. The program will align Canada's approach with the regimes of international partners, and will ensure that it mitigates the risks associated with both the introduction of explosives in cargo or mail and the use of cargo aircraft as weapons. Supply-chain programs to identify low-risk cargo will be developed and procedures identified to screen high-risk and targeted cargo.

2. Project Phase:

The priority initiatives of the Canadian Air Cargo Security Program major Crown project to be implemented in 2012-13 are as follows:

3. Leading and Participating Departments and Agencies

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

4. Prime and Major Subcontractor(s)

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

5. Major Milestones

List of Major Milestone	Date
Agreement on the risk assessment process for Transport Canada participants	2012
Interoperability between CBSA and other Government departments	2012-2013
Evaluate areas of harmonization and international approach for mitigating risk	2012-2013

6. Project Outcomes

The beneficiaries of this program are air travellers. Benefits include:

• Enhanced regulatory regime;
• Oversight, training and compliance;
• Screening technologies and processes;
• Mutual recognition and interoperability;
• Support for risk assessments undertaken by Transport Canada; and
• Screening of air cargo items at small and remote class II and class “other” airports.

7. Progress Report and Explanations of Variances

• Work on this initiative commenced in May 2010 and was approved by Treasury Board;
• Continuing the work on the agreement on the risk assessment for Transport Canada participants;
• Participating in the Interoperability Working Group; focusing on interoperability opportunities between the CBSA and other Canadian Government departments; and
• Participating in the World Customs Organization Technical Experts Group on Air Cargo Security focusing on areas where harmonization could be perused and discussing an integrated international approach for mitigating risks posed by ACS.

8. Industrial Benefits

The industrial benefits include:

• Protection of the Canadian public and those working in the air cargo supply chain;
• Streamlining of trade through risk management;
• Promotion of the movement of goods, both domestically and internationally, through effective trade supply chains;
• Improvement in the ability of the CBSA to detect high-risk cargo;
• Improvement in the controls and the ability to make better, more efficient allocations of CBSA resources; and
• Assurance of the efficient flow of goods contributing to Canada's economic prosperity.

Description:

Through the implementation of the Balanced Refugee Reform Act, Canada is improving its asylum system to enable the country to help those truly in need and to do so in a timely manner. This new legislation supports the underlying principles of Canada’s asylum system: ensuring fairness; protecting genuine refugees; and upholding Canada’s humanitarian tradition. Canada’s refugee system is world renowned for its fairness and generosity. These new measures will continue to exceed Canada’s international and domestic legal obligations to asylum seekers.

Receiving royal assent on June 29, 2010, the Balanced Refugee Reform Act addresses systemic challenges in the current refugee system, such as:

• A large increase in annual refugee claims. Nearly 37,000 claims were made in Canada in 2008 and about 33,000 claims were made in 2009, which far surpasses the capacity of the Immigration and Refugee Board (IRB). Claims have increased since 2005 when Canada received fewer than 20,000 claims. This increase in volume, coupled with a shortfall of decision-makers at the IRB has led to a large backlog at the IRB’s Refugee Protection Division (RPD), which ultimately undermines the efficiency of Canada’s asylum system.
• An increase in the time it takes to have a hearing at the RPD. It currently takes about 19 months. Lengthy wait times for a decision also contribute to rising backlog numbers.
• Inefficient processes. These inefficiencies affect Canada’s ability to protect those in genuine need and reduce the ability to deter misuse of the asylum system. Approximately 62% of claimants are found not to be in need of protection (claims are withdrawn, abandoned or rejected). The high volume of unfounded refugee claims indicates possible abuse.

Project Phase:

The Balanced Refugee Reform Act is currently in the execution phase. The next project gate is 6—Construction Complete and Deployment Readiness.

Leading and Participating Departments and Agencies

Lead Department	Citizenship and Immigration Canada
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Canada Border Services Agency (CBSA), IRB, Department of Justice/Federal Court, Royal Canadian Mounted Police (RCMP), Canadian Security Intelligence Service, Courts Administration Service

Prime and Major Subcontractor(s)

Prime Contractor	None
Major Subcontractor(s)	Various subcontractors are used on a task authorization basis

Major Milestones

List of Major Milestones	Date
CIC: Prepublish Pre-removal Risk Assessment (PRRA) Regulations	06-30-2011
CIC/IRB: Revise system for tracking appeals and refugees / deploy Field Operations Support System Interface	TBD
IRB: Complete regional accommodations leased and fit-up	TBD
IRB: Staff positions for RPD	TBD
IRB: Begin employee training	TBD
All: Complete information technology (IT) critical system modifications	TBD
All: Coming into Force	TBD
CBSA: Launch Assisted Voluntary Returns Pilot, Phase 1	TBD
CIC: Launch Ministerial Reviews and Intervention Pilot	TBD
CIC: Begin issuing Protected Person Status Documents	TBD
RCMP: Launch enhanced Security Screening Pilot	TBD
IRB: Staff positions for Refugee Appeal Division	TBD
CIC: End backlog funding	03-13-2013
CIC: Assess Backlog Reduction Strategy	03-29-2013
CBSA: Launch Assisted Voluntary Returns Pilot, Phase 2	04-01-2013
CIC/IRB: Transfer PRRA function to IRB	01-05-2015
Project Completion	03-31-2015

Project Outcomes

The business outcomes of the Refugee Reform Project include:

• streamlining the process from the point of claim to the end of the determination process and imposition of specific timelines for each step of the process;
• enhancing system integrity by reducing abuse of the system through ongoing monitoring and analysis, increasing capacity to conduct Ministerial Intervention to designate countries of origin, introducing enhanced security screening on a pilot basis, and increasing efficiency by maximizing use of resources (time, human, financial); and
• ensuring timely removals through increased removals capacity at CBSA and the introduction of an Assisted Voluntary Returns Pilot.

To underscore Canada’s commitment to protection, and facilitate passage of the legislation, reform measures are complemented by efforts to strengthen Canada’s role as a global leader in refugee protection. By 2013, Canada will resettle up to 14,500 refugees, an increase of 2,500 refugees since 2010.

CIC and relevant partners are developing metrics of success to measure the success of the project.

Progress Report and Explanations of Variances

Bill C-31, the Protecting Canada’s Immigration System Act, was tabled on February 16, 2012. C-31 proposes a number of amendments to the Balanced Refugee Reform Act (BRRA). The impact of C-31 on the implementation of the BRRA is currently being analysed. In particular, C-31 would amend the existing coming into force date for the BRRA from 06-29-2012, to a date to be determined by the Governor in Council.

Industrial Benefits

Bona fide refugee claimants will benefit from a streamlined process and Canadian society at large will benefit from system integrity and timely removal of failed claimants.

Description:

Today, the use of biometrics is expanding rapidly given its unique approach and its potential to identify an individual reliably. The introduction of biometric technology into the temporary resident stream screening process will enhance the screening of applicants in the Temporary Resident 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 key partners like Australia, New Zealand, the United Kingdom and the United States, have either recently implemented or are planning to implement similar projects.

Project Phase:

The Temporary Resident Biometrics Project is currently in the execution phase. During the planning phase, CIC, CBSA and the RCMP worked collaboratively to define the solution, as well as the approaches and plans for implementing the Temporary Resident Biometrics Project. A critical first step was the definition of a set of comprehensive business and supporting requirements agreed to by all partners in 2010, culminating in 2010–11 with a project submission. Substantive plans and strategies for deployment and management of the business change are expected to be finalized and approved by all partners in 2012–13. During the execution phase, the project is focusing on developing, monitoring and controlling deliverables (as defined by the business requirements), while meeting scheduling commitments.

Leading and Participating Departments and Agencies

Lead Department	Citizenship and Immigration Canada
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Canada Border Services Agency (CBSA) and Royal Canadian Mounted Police (RCMP)

Prime and Major Subcontractor(s)

Prime Contractor	Fujitsu Technical solution Visa application centre (VAC) RFP 2012
Major Subcontractor(s)	Not applicable

Major Milestones

List of Major Milestones	Date
Global VAC RFP posting on MERX	January 2012
Technical solution contract award	February 2012
Global VAC contract award	2012–13
Deployment	2012–13
Project shutdown	2013–14

Project Outcomes

Funding was included in Budget 2008 to enhance and strengthen identity management within the Temporary Resident Program, allowing overseas visa officers and CBSA border service officers at ports of entry (POEs) to make decisions based on accurate identity and immigration admissibility information, and permitting border service officers to verify applicants’ identity at Canada’s POEs. As a result, the Government of Canada will be in a better position to reduce identity fraud, enhance the safety and security of Canadians through strengthened criminality screening, and facilitate the processing of legitimate applicants by confirming identity promptly. The following performance indicators underscore the benefits of the project.

Protect Canadians

The rise of identity fraud and theft globally and the use of sophisticated means to evade detection present challenges for Canada’s immigration program in verifying and managing applicants’ identification. Proper identification of applicants is crucial to the decision-making process of CIC officers abroad and CBSA officers at Canadian POEs. Decisions taken by CIC and CBSA form the first line of defence against individuals who pose a criminal or security threat to Canadians and against certain migrants who seek to take advantage of Canada’s high standard of living.

Reduce Abuse of Visa Program

Biometrics will allow the government to better detect and deter temporary applicants who use different identities, including previously refused visa/permit applicants.

Reduce Abuse of Refugee Program

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

Facilitate Removals

Biometrics will facilitate the removal of individuals who should not be in Canada by linking undocumented foreign nationals to the identity and place of origin stated on their visa application. Of the approximately 23,172 in-Canada refugee claimants in 2010, 6,215 or 27 percent were without identity or travel documents. Biometrics will also assist in the detection of previous deportees who apply for a Canadian visa under a different identity, thereby preventing them from returning to Canada.

Ensure Border Security

Biometric verification at the POE will strengthen identity management and allow CBSA officers to confirm that the individual arriving in Canada is the same one to whom CIC issued the visa/permit abroad. Currently, one of the key vulnerabilities is the inability to ensure that the visa/permit and the genuine holder remain together once the document is issued by CIC. It is this gap that resulted in 454 Canadian visas being used fraudulently by foreign nationals to travel to Canada in 2010. This includes altered and counterfeit visas as well as impostor fraud. The actual extent of the abuse is estimated to be higher as not all fraud is detected.

Improve Service Delivery by Building a Global Network of VACs

Since 2005, the Government of Canada has had contracts with private sector service providers to operate VACs that deliver a range of visa application support services to applicants in 60 VACs in 41 countries. In 2010, as part of its modernization agenda, the Department developed a plan to implement an expanded global service delivery network of VACs, which will enhance service delivery by providing visa applicants easier access to services closer to home and include biometrics enrolment. Given the high volume of temporary resident applications from visa-required foreign nationals temporarily residing in the United States, service delivery options are also being explored to allow applicants to enrol their biometrics at U.S. application support centre locations. Safeguards governing the protection of personal information will continue to be part of the terms of agreement or arrangements with each service provider.

Progress Report and Explanations of Variances

In late 2007, CIC sought policy approval for the introduction of biometrics into the Temporary Resident Program, and funding to support this initiative was included in Budget 2008. In March 2009, CIC received preliminary project approval for the implementation of the Temporary Resident Biometrics Project. In March 2011 effective project approval was granted for a total project cost of $123 million.

The technology RFP was released in 2011 and contract was awarded in early 2012. The VAC RFP was released in early 2012, initiating the procurement of a global network of VACs that include biometrics enrolment services.

Over the course of the last year, the Department has made important strides in the development of a plan to implement an expanded global service delivery network of VACs. In collaboration with its project partners, the Department has developed a concept of operations, business process maps, and the business and technical requirements for its VAC network. In addition, it has conducted industry consultations that supported the preparation of a statement of work for the launch of the global VAC RFP in 2011–12.

The Temporary Resident Biometrics Project is currently running under budget due to procurement delays of the biometric IT solution and biometric advisory services. In both cases, the initial procurement attempt resulted in non-compliant bids and therefore the project had to retender. Retendering had a direct impact on related activities such as planning and design of the biometric solution, development plans for user acceptance testing, privacy impact assessments, and development of deployment strategies and plans. In 2011–12, the funding associated with these activities was included as part of a reprofile request to Treasury Board.

During the course of the retender process for the IT solution, the project was able to recover two months of delay by applying findings and best practices from the first RFP, specifically as it relates to development timelines and bid evaluation approach. As a result, the contract for the technical solution was awarded on February 3, 2012. The Temporary Resident Biometrics Project is currently in the execution phase, is achieving defined performance objectives and will be on schedule to begin deploying in 2013.

Industrial Benefits

The Temporary Resident Biometrics Project will improve the safety and security of Canadian citizens. Immigration and the granting of Canadian citizenship are vital to the continued growth and prosperity of Canada. To support the Government of Canada outcomes of strong economic growth and a safe and secure world through international engagement, 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.

Mid-Shore Patrol Vessels

Description

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

Project Phase

The Mid-Shore Patrol Vessels Project is currently in the construction phase of project implementation.

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	Industry Canada; Royal Canadian Mounted Police; Treasury Board Secretariat; Privy Council Office; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Public Safety Canada; Department of National Defence.

Prime and Major Subcontractor(s)

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

Project Outcomes

The Mid-Shore Patrol Vessels project supports the Vessel Procurement and Fleet Renewal Objectives of the Canadian Coast Guard. Project outcomes contribute to the Fleet Operational Readiness Program Activity in the Fisheries and Oceans Canada Program Activity Architecture.

Progress Report and Explanations of Variances

The procurement of nine Mid-Shore Patrol Vessels by 2014 is on track. In August 2009, the construction contract was awarded to Irving Shipbuilding Inc. Construction of the first vessel began in September 2010; the construction of three additional vessels started in 2011. The first two vessels are expected to be delivered in Summer and Fall 2012. A third vessel will be delivered in Winter 2013. The remaining vessels will be delivered by Fall 2014.

Industrial Benefits

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval	August 2005
Effective Project Approval	June 2006
1st Request for Proposal (cancelled)	July 2007
Amended Effective Project Approval – to include four additional vessels identified in Budget 2007	December 2007
2nd Request for Proposal issued (cancelled)	August 2008
3rd Request for Proposal issued	March 2009
Contract Awarded	August 2009
First Vessel Delivery	Summer 2012
Delivery of final Mid-Shore Patrol Vessel	Fall 2014

Offshore Fisheries Science Vessels

Description

The Offshore Fisheries Science Vessels project will acquire three Offshore Fisheries Science Vessels for the Canadian Coast Guard Fleet. The Offshore Fisheries Science Vessels will replace three aging Coast Guard ships on the east and west coasts of Canada that provide a platform from which critical scientific research and ecosystem-based management can be performed.

Project Phase

The Offshore Fisheries Science Vessels Project has completed the design phase and is about to enter the construction phase of project implementation.

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; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

Prime and Major Subcontractor(s)

Prime Contractor	Vancouver Shipyards Co. Ltd. (Seaspan) under the National Shipbuilding Procurement Strategy subject to successful conclusion of contract negotiations
Major Sub-contractor(s)	Design Contractor: Robert Allan Ltd., Alion Science and Technology (Canada) Corporation and Alion Science and Technology Corporation in joint venture

Project Outcomes

The Offshore Fisheries Science Vessels project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard. Project outcomes contribute to the Fleet Operational Readiness Program Activity in Fisheries and Oceans Canada’s Program Activity Architecture.

Progress Report and Explanations of Variances

This project was delayed in light of longer than expected timelines in implementing Canada’s National Shipbuilding Procurement Strategy. Under the Strategy, Government and Vancouver Shipyards first negociated and signed, on February 14, 2012, an umbrella agreement on key aspects of their strategic sourcing relationship. Negotiations on specific vessel construction will now follow and inform related Treasury Board authorities to be sought. Two Offshore Fisheries Science Vessels are planned to be delivered by 2014 and one in 2015.

Industrial Benefits

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval	October 2005
Amended Preliminary Project Approval	November 2006
2nd Amended Effective Project Approval	June 2009
Request for Proposal for Design Issued	March 2010
Government of Canada announced that the three Offshore Fisheries Science Vessels will be built under the National Shipbuilding Procurement Strategy	June 2010
3rd Amended Preliminary Project Approval — to award contract	September 2010
Contract Award for Design	October 2010
Design Contract Completion	Winter 2012
Effective Project Approval	Spring 2012
Contract Award for Construction	Summer 2012
First Two Vessels to be Delivered	2014
Delivery of final Offshore Fisheries Science Vessel	2015

Offshore Oceanographic Science Vessel

Description

The Offshore Oceanographic Science Vessel 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 fulfill 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 Offshore Oceanographic Science Vessel project has completed the design phase and is about to enter the construction phase of project implementation.

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; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

Prime and Major Subcontractor(s)

Prime Contractor	Vancouver Shipyards Co. Ltd. (Seaspan) under the National Shipbuilding Procurement Strategy subject to successful conclusion of contract negotiations
Major Sub-contractor(s)	Design Contractor: STX Canada Marine Inc.

Project Outcomes

The Offshore Oceanographic Science Vessel project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard. Project Outcomes contribute to the Fleet Operational Readiness Program Activity in the Fisheries and Oceans Canada Program Activity Architecture.

Progress Report and Explanations of Variances

This project was delayed in light of longer than expected timelines in implementing Canada’s National Shipbuilding Procurement Strategy. Under the Strategy, Government and Vancouver Shipyards first negotiated and signed, on February 14, 2012, an umbrella agreement on key aspects of their strategic sourcing relationship. Negotiations on specific vessel construction will now follow and inform related Treasury Board authorities to be sought. The Offshore Oceanographic Science Vessel is expected to be delivered in late 2014.

Industrial Benefits

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval	July 2008
Amended Preliminary Project Approval	June 2010
Request for Proposal for Design Issued	April 2010
Government of Canada announced that the Offshore Oceanographic Science Vessel would be built under the National Shipbuilding Procurement Strategy	June 2010
Contract Award for Design	October 2010
Design Contract Completion	Fall 2011
Effective Project Approval	Spring 2012
Contract Award for Construction	Summer 2012
Delivery of Offshore Oceanographic Science Vessel	Late 2014

Polar Icebreaker Project

Description

The Government of Canada is procuring a Polar Icebreaker to be delivered in time for the decommissioning of the CCGS Louis S. St-Laurent. The new Polar Icebreaker will help strengthen Canada’s Arctic sovereignty. The vessel will be able to operate in the Arctic in more difficult weather conditions and for a longer period of time — three seasons instead of the current two seasons.

Project Phase

The Polar Icebreaker Project is currently in the detailed design stage of the definition 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; Aboriginal Affairs and Northern Development 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	Vancouver Shipyards Co. Ltd. (Seaspan) under the National Shipbuilding Procurement Strategy subject to successful conclusion of contract negotiations
Major Sub-contractor(s)	Design Contractor: STX Canada Marine Inc

Project Outcomes

The Polar Icebreaker project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard and supports the Government's Northern Strategy. Project outcomes contribute to the Fleet Operational Readiness Program Activity in Fisheries and Oceans Canada's Program Activity Architecture.

Progress Report and Explanations of Variances

The design contract for the Polar Icebreaker was awarded in November 2011. The construction contract is planned to be awarded in Spring 2014. Vessel construction is planned to start in 2014. The Polar Icebreaker remains on track for delivery in late 2017.

Industrial Benefits

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

Major Milestones

Major Milestone	Date
Preliminary Project Approval	June 2009
Government of Canada announced that the Polar Icebreaker would be built under the National Shipbuilding Procurement Strategy	June 2010
Contract Award for Design	November 2011
Effective Project Approval – Target Date	Fall 2013
Contract Award for Construction	Spring 2014
Delivery of Polar Icebreaker	Late 2017

Air Cushion Vehicle

Description

The Government of Canada is procuring an Air Cushion Vehicle (or hovercraft) to replace CCGS Penac at the Canadian Coast Guard Sea Island Hovercraft Base in Richmond, British Columbia. It will provide ongoing search and rescue coverage in the area, allowing the Canadian Coast Guard to continue to fulfill its mandate and maintain current levels of service.

Project Phase

The Air Cushion Vehicle is currently in the construction phase of project implementation.

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	Treasury Board Secretariat

Prime and Major Subcontractor(s)

Prime Contractor	Griffon Hoverwork Ltd. Merlin Quay, Hazel Road, Woolston, Southhampton, SO19-7GB, United Kingdom
Major Sub-contractor(s)	Aluminium Marine Consultant’s Limited of Cowes, Isle of Wight

Project Outcomes

The Air Cushion Vehicle project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard. Project Outcomes contribute to the Fleet Operational Readiness program activity in the Fisheries and Oceans Canada Program Activity Architecture. They also contribute to the Canadian Coast Guard Pacific Fleet Search and Rescue operational readiness.

Progress Report and Explanations of Variances

The Air Cushion Vehicle construction contract was awarded on March 15, 2011 after the contractor’s proposal and contract negotiations were completed. The Air Cushion Vehicle is expected to be delivered in Fall 2013.

Industrial Benefits

Not applicable, as craft is being built in England, United Kingdom.

Major Milestones

Major Milestones	Date
Project announced in Budget 2010	March 2010
Effective Project Approval	May 2010
Advance Contract Award Notice put on MERX1. No challenges received from the Canadian industry	September 2010
Contract Award for Construction	March 2011
Delivery of the Air Cushion Vehicle	Late 2013

AIRLIFT CAPABILITY PROJECT – STRATEGIC

Description

The objective of the Airlift Capability Project – Strategic (ACP-S) 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	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada and its regional agencies

 

Prime and Major Subcontractor(s)

Prime Contractor	The Boeing Company, St-Louis, Missouri, USA
In-service Support (ISS) Contractor	The Boeing Company via Foreign Military Sales (FMS) case

Major Milestones

List of Major Milestone	Date
Synopsis Sheet (Effective Project Approval)	June 2006
Advanced Contract Award Notice Posted on MERX	July 2006
Contract Award	February 2007
Delivery First Aircraft	August 2007
Delivery Second Aircraft	October 2007
Delivery Third Aircraft	March 2008
Delivery Fourth Aircraft	April 2008
Initial Operational Capability	October 2008
Full Operational Capability	Spring 2012
Project Close-Out	Summer 2012

Project Outcomes

Deliver four aircraft and the required infrastructure at 8 Wing Trenton. Once declared at full operational capability, it will contribute towards achieving the Canada First Defence Strategy objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The beneficiary of this capability is the Royal Canadian Air Force and Canadian Army.

Progress Report and Explanations of Variances

All four aircraft have been accepted on schedule and the fleet has already flown in excess of 16,000 flying hours. The project office is currently working on the Implementation Phase of the project. As the project transitions to in-service support, Full Operational Capability is expected in spring 2012 when the infrastructure at Trenton is completed and the Squadron can sustain all planned mission types as stated in the Statement of Operational Requirement.

Industrial Benefits

Industrial and Regional Benefits (IRB) are equivalent to 100% of the acquisition contract, Boeing's share of the in-service support Foreign Military Sales contract value, and the value of the engines. (A separate IRB agreement was negotiated with Pratt and Whitney USA for the value of the C-17 engines). The three IRB agreements total $1.9B. Several IRB announcements have been made and all regions of Canada are benefiting from these contracts.

AIRLIFT CAPABILITY PROJECT – TACTICAL

Description

The objective of the Airlift Capability Project – Tactical (ACP-T) is to ensure a continued tactical airlift capability. This project will replace the Canadian Force’s aging CC130E Hercules fleet, and will 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

The project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 CC130J aircraft. The Contract was subsequently amended to include provisions for in-service support in December 2009, and for maintaining training in February 2010. Aircraft deliveries began in June 2010. The final aircraft is to be delivered no later than August 2012.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

List of Major Milestone	Date
Revised Preliminary Project Approval	June 2006
Solicitation of Interest and Qualification	August 2006
Issue of Request for Proposal	August 2007
Effective Project Approval	December 2007
Contract Award	December 2007
Initial Operational Capability	January 2013
Full Operational Capability	September 2016
Project Close-Out	December 2014

Project Outcomes

The ACP-T will deliver 17 CC130J aircraft which will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcomes: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal; and ensuring National Defence is ready to meet government defence expectations, specifically the program activity of Aerospace Readiness.

The beneficiary of this capability will be the Royal Canadian Air Force and Canadian Army.

Progress Report and Explanations of Variances

Canada’s first aircraft arrived in Canada in June 2010, six months ahead of the scheduled delivery date. Thirteen aircraft have now been received. The remaining four aircraft are scheduled for delivery in 2012.

With contract provisions for in-service support and maintainer training; and in conjunction with the infrastructure upgrades at the aircraft’s Main Operating Base in Trenton, Ontario, the project is progressively establishing the support systems for this new capability in preparation for the declaration of Full Operational Capability.

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

Industrial Benefits

Lockheed Martin Corporation has committed to provide Industrial and Regional Benefits (IRB) 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. Several IRB announcements have been made and all regions of Canada are benefiting from this contract. The IRB requirements are administered by Industry Canada, through Public Works and Government Services Canada, for the duration of the contract and any amendments.

ARCTIC/OFFSHORE PATROL SHIP

Description

The Arctic/Offshore Patrol Ship (AOPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to demonstrate sovereignty in Canada's waters, including the Arctic. The AOPS project is acquiring six to eight Arctic/Offshore Patrol Ships, the in-services support elements, jetty infrastructures in Halifax and Esquimalt as well as a berthing and fuelling facility at Nanisivik, Nunavut.

Project Phase

Definition.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

The National Shipbuilding Procurement Strategy (NSPS) Secretariat announced on 19 Oct 2011 that Irving Shipbuilding Inc. (ISI) is to build the AOPS. Identification of major sub-contractors will be determined through the Canadian shipyard's teaming arrangement for AOPS construction. The prime contractor for the project's In-Service Support Contract (ISSC) will be competed separately during the project implementation phase.

Major Milestones

List of Major Milestone	Date
Treasury Board Preliminary Project Approval	May 2007
Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP)	December 2007
DELMS RFP Close	February 2008
DELMS Contract Award	May 2008
Revised Project Approval (Definition) I	October 2011
Revised Project Approval (Definition) II	Fall 2012
Award Definition Contract	Winter 2013
Project Approval (Implementation)	2015
Award of Implementation Contract	2015
Delivery of First Ship	2018
Initial Operating Capability of First Ship	2019
Full Operational Capability	2023
Project Complete	2024

Project Outcomes

Deliver six to eight ships, a 25 year In-Service Support Contract and associated infrastructures in Halifax, Esquimalt and Nanisivik. This project will sustain Maritime Forces capabilities of conducting armed, sea-borne surveillance of Canada's waters, including the Arctic. Once declared at full operational capability it will contribute towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectation, specifically the program activity of Maritime Equipment Acquisition and Disposal.

The beneficiary of this capability is the Royal Canadian Navy.

Progress Report and Explanations of Variances

The project continues to progress steadily since obtaining Preliminary Project Approval (PPA) in May 2007 with an indicative cost of $3,074M ($Budget Year). The Project Definition funding increased from $42.8M ($Budget Year) to $58.4M ($Budget Year). This additional $15.6M ($Budget Year) of increased expenditure authority was approved in October 2011. The total project budget remains $3,074M ($Budget Year) as the source of funding for increased definition was transferred from implementation funding. The Project Definition Phase will produce an AOPS ship specification and drawing package that will be used when ISI is contracted for the build. Previous dates for AOPS were based on a traditional competitive procurement strategy. Since the signing of the NSPS Umbrella Agreement, engagement with ISI has begun and the dates in this submission reflect a schedule that takes into account a collaborative approach, ISI's shipyard infrastructure improvements and production strategy.

Note: all figures above are exclusive of GST/HST.

Industrial Benefits

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

ARMOURED PERSONNEL CARRIERS

Description

The Armoured Personnel Carrier (APC) is essential for all foreseeable Canadian Forces (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 Light 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. The latter was eventually configured into the LAV III with Remote Weapon Station.

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 Spring 2012.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

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

Project Outcomes

Deliver 651 LAV III vehicles including variants that met the specific performance requirements as well as infrastructure upgrades to accommodate LAV III vehicles in five locations across Canada. This outcome has been achieved under the Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectation, specifically the program activity of Land Equipment Acquisition and Disposal.

The beneficiary of this capability is the Canadian Army.

Progress Report and Explanations of Variances

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

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

In March 2004, Treasury Board authorized $129M for indoor accommodation of the LAV III to facilitate regular maintenance and training programs, and prevent any deterioration that would result from outdoor storage. Construction of these accommodations is taking place in five locations: Wainwright, Petawawa, Montréal, Valcartier, and Gagetown. Construction activities are well advanced and will allow this project to terminate its involvement in Spring 2012.

Industrial Benefits

This project includes industrial benefits valued at $1.595B with $852.9M in direct Industrial and Regional Benefits (IRB) and $742.9M in indirect IRBs.

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM

Description

The Canadian Cryptographic Modernization Program (CCMP) is an omnibus project that will modernize the Government of Canada’s aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada’s ability to establish secure communications both nationally and internationally.

The CCMP omnibus project includes the following sub-projects:

• Secure Voice / Telephone Re-key Infrastructure;
• Secure Voice / Telephone Family;
• Classified Security Management Infrastructure;
• Combat Identification Family (Identification Friend or Foe (IFF));
• Link Encryption Family;
• Network Encryption Family;
• Secure Radio Family; and
• Secure Mobile Environment.

Project Phase

Implementation for some sub-projects, definition for others.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	N/A
Major Subcontractor(s)	Various allied manufacturers of cryptographic equipment

Major Milestones

List of Major Milestone	Date
Preliminary Project Approval for the CCMP Omnibus Project	March 2005
Preliminary Project Approval for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure	November 2006
Secure Voice / Telephone Re-key Infrastructure	September 2009
Secure Voice / Telephone Family	December 2011
Classified Security Management Infrastructure – Phase 1A	2012
Classified Security Management Infrastructure – Phase 1B	2012
Link Encryption Family	2013
Secure Mobile Environment	2014
Network Encryption Family	2014
Classified Security Management Infrastructure – Phase 2A	2014
Classified Security Management Infrastructure – Phase 2B	2016
Combat Identification Family (Identification Friend or Foe (IFF))	2016
Secure Radio Family	2016
Classified Security Management Infrastructure – Phase 3	2020

Project Outcomes

Deliver affordable Information Protection by means of cryptographic solutions with an adequate level of security to protect Government of Canada classified electronic information and to provide enhanced interoperability to facilitate the exchange of classified information both nationally and internationally. This requires the right balance between interoperability and sovereignty, while striving to meet unique Canadian requirements. Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Defence operations will improve peace, stability and security wherever deployed, specifically the program activity of Support to Intelligence, Surveillance and Reconnaissance.

Progress Report and Explanations of Variances

The CCMP is on budget. The CCMP schedule is dependent on the American Cryptographic Modernization Initiative and the Key Management Infrastructure Program. 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 initiative/program.

• The CCMP originated as a 12-year program ending in 2016. However, in June 2011, the end date of the Classified Security Management Infrastructure project was extended to 2020 to remain aligned with the U.S. Key Management Infrastructure Program. While the Classified Security Management Infrastructure baseline schedule and cash flow will be updated, extending the end date will not impact the overall cost of the CCMP.

Industrial Benefits

There are no associated Industrial and Regional Benefits (IRB) with this project.

CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER 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 Canadian Army (CA), Royal Canadian Air Force (RCAF), 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 principal 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 (OGD) and Agencies, including aid of the civil power.

Project Phase

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 April 2012.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Bell Helicopter Textron, Mirabel, Québec, Canada
Major Subcontractor(s)	Pratt & Whitney, Montréal, Québec, Canada BAE Systems Canada Inc., Montréal, Québec, Canada CAE, Montréal, Québec, Canada

Major Milestones

List of 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	April 2012

Project Outcomes

Deliver 100 Bell 412/CH146 Griffon helicopters and a reduction in the total number of aircraft. Mission capabilities are employed in support of Defence operational commitments, UN peacekeeping missions, and support to OGD and Agencies, including air to the civil power. This outcome has been achieved under the Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government Defence expectation, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The beneficiary of this capability is the Royal Canadian Air Force and Canadian Army.

Progress Report and Explanations of Variances

This project received Government approval in April 1992 and Treasury Board approval in September 1992, with an original budget of $1.293B. Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in April 2012 for approximately $200M less than the initial Treasury Board budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver functionality with the last aircraft scheduled for completion in December 2011.

Industrial Benefits

To date, Bell Helicopter has claimed $289.5M direct and $252.1M indirect Industrial and Regional Benefits (IRB), totalling $541.6M, representing 107% of the overall commitment of $506.7M.

CANADIAN SEARCH AND RESCUE HELICOPTER PROJECT

Description

Maintaining a national search and rescue capability is a key Defence mission. 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 and initial training has been completed. Effective Project Closure was achieved in September 2004 at which point the Project Management Office was closed; however, some aspects of the contract were noted as deficiencies. Final contract completion is projected to occur in 2014.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

List of Major Milestone	Date
Treasury Board Effective Project Approval	April 1998
Contract Award	April 1998
First Aircraft Delivery (at plant in Italy)	September 2001
Final Aircraft Delivery (at plant in Italy)	July 2003
Project Completion (Effective Project Completion)	September 2004
Expected Project Closure	2014

Project Outcomes

Deliver 15 CSH aircraft and declared at full operational capability which contributes towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Defence operations to improve peace, stability and security whenever employed, specifically the program sub-activity of Search and Rescue.

The beneficiary of this capability is the Canadian population who require Search and Rescue services.

Progress Report and Explanations of Variances

The project 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 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. 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. The fleet size has also been reduced to 14, following the loss of an aircraft in a 2006 crash.

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 2014. The milestones still outstanding are tied to a three year Technical Publication Revision Service which commenced in 2010-11, and a number of milestones related to outstanding aircraft deficiencies which are expected to be completed by 2014.

Industrial Benefits

The contractor committed to providing direct and indirect Industrial and Regional Benefits (IRB) valued at $629.8M, 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 have also benefited from the project by the placing of $67M in orders.

CANADIAN SURFACE COMBATANT PROJECT

Description

In accordance with the Canada First Defence Strategy (CFDS), the Canadian Surface Combatant (CSC) Project will recapitalize Canada’s entire surface combatant fleet through replacement of the capability found in the Halifax and Iroquois classes, and provision of the necessary Integrated Logistics Support and infrastructure. The CSC Project will pursue system commonality in design and acquisition. System commonality will potentially generate acquisition and through-life cost savings in a number of areas including crewing, training, maintenance and logistics support. This will result in a number of aspects of the ships being common, regardless of variants produced.

Project Phase

Option Analysis.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Work continues toward the definition of the overall procurement strategy for design, platform and combat systems. Identification of major sub-contractors will be determined at a future date.

Major Milestones

List of Major Milestone	Date
Identification Phase Approval	July 2007
Identification Phase Amendment No. 1 Approval	January 2009
Project Approval (Definition)	To be determined
Project Approval (Implementation)	To be determined
Implementation Contract - Awarded	To be determined
Initial Operational Capability	To be determined
Full Operational Capability	To be determined
Project Completion	To be determined

Project Outcomes

Deliver a replacement capability currently found in Canada’s destroyers and frigates. These new ships ensure that the military can continue to monitor and defend Canadian waters and make significant contributions to international naval operations. The CSC project contributes towards achieving the CFDS objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet Government Defence Expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.

The beneficiary of this capability is the Royal Canadian Navy.

Progress Report and Explanations of Variances

The Options Analysis is still underway and the development of project documents is progressing. The Government announced its broad intention for fleet recapitalization and shipbuilding when it announced the CFDS in May 2008 and the National Shipbuilding Procurement Strategy (NSPS) in June 2010. There has yet to be a specific Canadian Surface Combatant project announcement, but this can be expected in due course.

Industrial Benefits

This procurement will provide Industrial and Regional Benefits (IRB) for the capital acquisition and its associated In-Service Support. These IRB requirements will be negotiated and accepted by Industry Canada prior to contract award.

CLOSE COMBAT VEHICLE

Description

The Close Combat Vehicle (CCV) project will deliver to the Canadian Army an extremely well protected armoured vehicle with very high tactical mobility, able to deliver a combat ready Canadian Army infantry section in close combat, while operating in intimate support of CF tanks.

CCV is one of the four projects within the Army’s “Family of Land Combat Vehicles”.

Project Phase

Definition: The CCV Project entered its definition phase with the approval of Treasury Board in June 2009.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor(s)	To be determined

Major Milestones

List of Major Milestone	Date
Treasury Board Project Approval (Implementation)	Spring 2013
Contract Award	Spring 2013
First Vehicle Delivery	2015
Expected Project Closure	2019

Project Outcomes

Deliver 108 CCV with an option for up to 30 additional vehicles (including Infantry Fighting Vehicle and Forward Observation Officer configurations), plus an associated long-term or through-life in-service support contract. The project contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Resources are acquired to meet Government Defence Expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The beneficiary of this capability is the Canadian Army.

Progress Report and Explanations of Variances

In 2010-11, the CCV project successfully completed its Solicitation of Interest and Qualification process, resulting in a list of Pre-Qualified Suppliers. The project released its Request for Proposal (RFP) in March 2011 with closure in August 2011. RFP response evaluation and testing commenced in Fall 2011. The project is in its definition phase and is proceeding on budget. As all bidders were deemed technically non-compliant, the RFP was cancelled and re-issued in April 2012. Delivery of the first CCV is currently planned for 2015.

Industrial and Regional Benefits

The CCV contracts will include a requirement for Industrial and Regional Benefits (IRB) equal to 100% of the contract values. Direct industrial benefits targets have been established at 25% for acquisition and 40% for in-service support.

FIXED WING SEARCH AND RESCUE AIRCRAFT REPLACEMENT

Description

The purpose of this project is to replace the CC115 Buffalo and CC130 Hercules currently providing the Fixed Wing Search and Rescue (FWSAR) capability in Canada.

This replacement will address the operational deficiencies of the CC115 Buffalo and Legacy CC130 Hercules fixed wing SAR aircraft while eliminating the supportability and affordability difficulties of the older airframes. The solution will provide the capability to conduct an effective fixed wing response and immediate assistance to SAR incidents within the Canadian SAR Area of Responsibility.

Project Phase

Definition.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	To be determined

Major Milestones

List of Major Milestone	Date
Expenditure Authority approved (Definition)	March 2012
Project Approval (Implementation)	Fall 2013
Contract Award	Spring 2014
Delivery First Aircraft	2017
Initial Operational Capability	2017
Full Operational Capability	2018
Project Close-Out	2020

Project Outcomes

Deliver a replacement capability currently performed by the CC115 Buffalo and CC130 Hercules aircraft. The project contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Royal Canadian Air Force.

Progress Report and Explanations of Variances

The FWSAR Project was in options analysis phase, with significant engagement with the public, industry and third party experts since 2009. The project entered the project definition phase upon receipt of Treasury Board Project Approval (Definition) in March 2012.

Industrial and Regional Benefits

Maximum Industrial and Regional Benefits (IRB) will be sought for this project.

FORCE MOBILITY ENHANCEMENT

Description

The Force Mobility Enhancement (FME) project is to acquire Armoured Engineer Vehicles (AEV), Armoured Recovery Vehicles (ARVs), to support the acquired AEVs and Tactical Mobility Implements (TMI) in support of Canada’s Leopard 2 Main Battle Tank (MBT). The project is part of the Family of Land Combat Vehicles (FLCV) project and has been broken down into two phases.

In Phase 1, FME will acquire AEVs and ARVs. Both platforms will support the Leopard 2 MBT until 2035. In addition, they will support all current armoured vehicle fleets and future fleets, including those in the FLCV project.

In Phase 2, FME will acquire TMIs for the Leopard 2 MBT to include mine rollers, mine ploughs, and dozer blades. TMIs provide a key capability for the Leopard 2-based force as the current Leopard 2 MBT does not have an in-service TMI capability.

Project Phase

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor(s)	To be determined

Major Milestones

List of Major Milestone	Date
Identification Phase Approval – Identification Phase	September 2008
Senior Project Advisory Committee Approval	November 2008
Preliminary Project Approval – Definition Phase	June 2009
Request for Proposal - Phase 1 Released	October 2010
Request for Proposal - Phase 2 Released	June 2011
Revised Preliminary Project Approval Phase 1	March 2012
Contract Award - Phase 1	April 2012
Effective Project Approval Phase 2	December 2012
Contract Award - Phase 2	January 2013
Initial Operational Capability – Phase 2	September 2014
Initial Operational Capability – Phase 1	February 2015
Full Operational Capability	2016
Project Close-Out	2017

Project Outcomes

Deliver up to 18 Leopard 2-based Armoured Engineer Vehicles (AEV), up to four Leopard 2-based Armoured Recovery Vehicles (ARV), and Tactical Mobility Implements (TMI) to install onto Leopard 2 Main Battle Tanks such as mine rollers, mine ploughs and dozer blades. The FME project will provide crucial support to the Leopard 2 tanks, LAV III, and future fleets, such as the Close Combat Vehicle and the Tactical Armoured Patrol Vehicle. Once delivered and declared at full operational capability this project will contribute towards achieving the Canada First Defence Strategy objectives as well as the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The beneficiary of this capability is the Canadian Army.

Progress Report and Explanations of Variances

On June 18, 2009, Treasury Board approved $11.465M in Definition funds (including contingency), allowing the Definition Phase to begin.

Phase 1. A Letter of Interest (LOI) for Phase 1 was released and closed Summer 2009. The release of a draft Request for Proposal (RFP) for the acquisition of AEVs (Phase 1) closed on 25 June 2010. The final RFP for Phase 1 was on the MERX from 5 October 2010 to 18 March 2011. Two extensions were granted (18 February 2011 and 18 March 2011) due to industry’s inability to meet Defence’s timelines. Both bidders were found non-compliant and debriefed on 17 May 2011. A follow-on RFP was posted on MERX 27 May 2011 and closed on 27 June 2011. Both bidders were found compliant.

Phase 2. Agreements were reached with Defence Research Development Canada in Suffield (DRDC Suffield) for the upgrade of the existing Leopard 1 Mine Roller and Prairie Agriculture Machinery Institute, (PAMI) for the upgrade of the existing Leopard 1 Mine Plough in February 2010 and November 2010 respectively. Due to Intellectual Property rights, only the Original Equipment Manufacturer (Krauss Maffei Wegmann (KMW)) replied to the RFP. An Advanced Contract Award Notice (ACAN) was posted on MERX Summer 2011 and no other responses were received. As a result, the project is currently negotiating with KMW to conduct a feasibility study in preparation for the implementation stage of Phase 2.

Effective Project Approval (EPA) Phase 2 is now scheduled for December 2012.

Industrial and Regional Benefits

In accordance with the Senior Project Advisory Committee approval November 2008, 100% of Industrial and Regional Benefits (IRB) will be sought on Phase 1 with the exception of the government-to-government purchase of the Leopard 2 MBT chassis.

HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION

Description

The Halifax Class Modernization/Frigate Life Extension (HCM/FELEX) project is the principal component of the overall HALIFAX Class Modernization (HCM) program. 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. 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 key combat system elements of the project. Project completion is expected by January 2019.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

In-Service Support Contractor (Class Design Agent)	Fleetway Incorporated, Halifax, Nova Scotia, Canada
Internal Communications System	DRS Flight Safety, Kanata, Ontario, Canada
Multi-Ship Contract (East)	Halifax Shipyard, Halifax, Nova Scotia, Canada
Multi-Ship Contract (West)	Victoria Shipyards, 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

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

Project Outcomes

Deliver 12 modernized HALIFAX-Class ships capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). The 12 ships of the HALIFAX-Class were designed for a 30 year life with the combat systems designed for 15 years and requiring mid-life upgrade to enable the ships to be effective through end-of-life. Changes in technology since the HALIFAX-Class was originally designed in the 1980s, particularly networks, have fundamentally changed how warfare is conducted at sea. Once delivered and declared at full operational capability, the modernized HALIFAX-Class ships will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcomes: Acquiring the resources to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal; and National Defence is ready to meet government defence expectations, specifically the program activity of Maritime Readiness.

The beneficiary of this capability is the Royal Canadian Navy.

Progress Report and Explanations of Variances

In September 2008, Treasury Board granted Effective Project Approval (EPA) and Expenditure Authority for the project with full-up project value of $2,988M ($Budget Year).

A Request for Proposal (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 Shipyards) 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, with three ships undergoing their mid-life refits, and is currently within budget and on schedule to achieve Full Operational Capability by January 2018.

Industrial and Regional Benefits

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

INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE

Description

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

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 have been implemented by the Land Force (LF) ISTAR Project Management Office (PMO). In support of UORs 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 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 service contract in 2008. In early 2008, the Electronic Warfare sub-project and the Command and Control sub-project were approved for implementation. The three remaining sub-projects are seeking Effective Project Approval (EPA).

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales	US Army, USA
Light Weight Counter Mortar Radars (LCMR) - Foreign Military Sales	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

List of Major Milestone	Date
Treasury Board Preliminary Project Approval	April 2003
Minister of National Defence Approval TUAV UOR Treasury Board Project Approval in Arrears UAV UOR Full Operational Capability Project Closed	May 2003 May 2005 December 2005 June 2009
Emergency Beyond Line of Sight Communication Treasury Board Effective Project Approval Beyond Line of Sight Communication Treasury Board Effective Project Approval Initial Operational Capability Full Operational Capability Project Closed	November 2005 July 2006 March 2008 March 2010 May 2010
Communications & Data Link Component Treasury Board Effective Project Approval Initial Operational Capability Planned Full Operational Capability Planned close-out	December 2006 October 2009 January 2013 March 2013
Command and Control (C2) Treasury Board Effective Project Approval Initial Operational Capability Planned Full Operational Capability Planned close-out	February 2008 October 2009 January 2013 March 2013
EW Sensors Treasury Board Effective Project Approval Phase 1 Amendment 1 (AL 1) Initial Operational Capability Planned Full Operational Capability Planned close-out	November 2005 February 2008 March 2008 January 2013 March 2013
Planned In-Service Sensors Enhancement Effective Project Approval Planned Initial Operational Capability Planned Full Operational Capability Planned close-out	December 2011 September 2013 December 2014 March 2015
Planned Medium Range Radar Effective Project Approval Planned Initial Operational Capability Planned Full Operational Capability Planned close-out	December 2011 January 2014 December 2015 March 2016
WLS Acoustic Sensor Effective Project Approval Initial Operation Capability Full Operational Capability Project Closed	November 2005 March 2008 November 2009 May 2010
Family of UAV Effective Project Approval for UOR Family of UAV Effective Project Approval for AL 1 Planned Initial Operation Capability Planned Full Operational Capability Planned Project close-out	November 2005 December 2011 September 2013 June 2015 December 2015
Light Weight Counter Mortar Radar Effective Project Approval Initial Operation Capability Planned Full Operational Capability Planned close-out	March 2007 March 2008 December 2012 March 2013
Deliveries Complete all ISTAR sub-projects	December 2015
Project Completion	December 2016

Project Outcomes

To deliver an integrated intelligence capability with the surveillance, target acquisition, and reconnaissance assets to improve Commanders’ Situational Awareness at all level of commands. Once all sub-projects are delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is Canadian Army.

Progress Report and Explanations of Variances

Current estimates are that the project will be complete in 2016. This delay is associated with the necessary diversion of staff effort to address UORs, and with the maintenance of an off-the-shelf philosophy. Approvals have been received for all but three of the LF ISTAR sub-projects. Final deliveries are scheduled out to 2015.

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

Industrial and Regional Benefits

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

JOINT SUPPORT SHIP

Description

The Joint Support Ship (JSS) Project will recapitalize Canada's naval support vessels, modernizing and apportioning joint force capabilities in line with the strategic vision outlined in the Canada First Defence Strategy (CFDS). The JSS will provide Canada with a modern, task-tailored and globally deployable naval support capability. The JSS project will acquire two new support ships (with an option for a third vessel if it is affordable or if additional internal funding becomes available). In addition to being able to provide at-sea support to deployed naval task groups, they will also be capable of providing limited sealift operations and limited support to forces deployed ashore.

Project Phase

Definition.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

The National Shipbuilding Procurement Strategy (NSPS) Secretariat announced on 19 Oct 2011 that Vancouver Shipyards Co. Ltd (VSY) is to build the JSS. Identification of major sub-contractors will be determined through the Canadian shipyard's teaming arrangement for JSS construction. The prime contractor for the project's In-Service Support Contract (ISSC) will be competed separately from the selection of the NSPS designated shipbuilder. The JSS project intends to compete the ISSC after it has entered the project implementation phase.

Major Milestones

List of Major Milestone	Date
Options Analysis	Fall 2009
Revised Project Approval (Definition)	June 2010
Project Definition Phase Recommenced	July 2010
Project Approval (Implementation)	February 2014
Award of Implementation Contract	March 2014
Initial Operating Capability - First Ship	Spring 2018
Final Operating Capability	Fall 2019

Project Outcomes

Deliver two Joint Support Ships (JSS) along with a 30 year In-Service Support Contract by the project completion date of 2019. This project will sustain Maritime Forces capabilities and enhance Canada’s ability to ensure peace and stability at Canadian, Continental, and International levels as laid out in the November 2010 Defence Priorities (for years 2011-14) and the Canada First Defence Strategy .

Project beneficiaries:

• CF (specifically the sustainment of Maritime Forces) for both national and international operations.
• Canadian and international communities, when humanitarian assistance is required to be rendered; and
• Canadian Shipbuilding Industry as determined by National Shipbuilding Procurement Strategy (NSPS);

Progress Report and Explanations of Variances

On 10 June 2010, the JSS project received Treasury Board expenditure authority for its Revised Definition Phase at a substantive cost estimate of $143M ($Budget Year), including HST with an indicative project cost of $2.613B ($Budget Year), including HST. The procurement strategy aims to provide a ship design to the NSPS shipyard. The ship design could be based either on a Military off the Shelf (MOTS) design or a newly developed design. The revised procurement approach seeks, in part, to undertake assessments of existing, proven designs, as a potential means of reducing project risks and ensuring program affordability.

Since achieving a revised Preliminary Project Approval, it has been determined that the project’s definition activities will exceed the original baseline estimate of 25 months by at least 6 months. This slippage has occurred to support the development and negotiation of complex design assessment contracts.

The net effect is a delay in the projected Implementation approval date. Project Definition schedule slippage is expected to be recoverable during Project Implementation such that the projected dates for Initial Operational Capability and Full Operational Capability have not changed and are still considered achievable.

Industrial and Regional Benefits

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

JOINT UNMANNED AERIAL VEHICLE SURVEILLANCE TARGET ACQUISITION SYSTEM

Description

This project will deliver a mature Medium Altitude Long Endurance Unmanned Aerial Vehicle System to provide the mandatory capabilities for domestic and international operations. This Joint Unmanned Aerial Vehicle Surveillance Target Acquisition System will complement existing reconnaissance, surveillance, and target acquisition capabilities, increase maritime and arctic domain awareness and provide precision force application in support of Land and Special Operations Forces.

Project Phase

Option Analysis.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	To be determined

Major Milestones

List of Major Milestone	Date
Project Approval (Definition)	To be determined
Project Approval (Implementation)	To be determined
Contract Award	To be determined
First aircraft delivery	To be determined
Last aircraft delivery	To be determined
Project Completion	To be determined

Project Outcomes

Deliver a mature Medium Altitude Long Endurance Unmanned Aerial Vehicle capability that meets the objectives of the Canada First Defence Strategy (CFDS) for a robust domestic and international surveillance capability. JUSTAS delivery contributes to following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

Progress Report and Explanations of Variances

Not applicable. The project is in the options analysis phase.

Industrial and Regional Benefits

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

LIGHT ARMOURED VEHICLE III UPGRADE PROJECT

Description

The recent experiences of the Canadian Forces and other nations in Afghanistan, Iraq and global operational theatres demonstrate the ongoing requirement for a highly protected, yet highly mobile Light Armoured Vehicle (LAV). The threats of mines and Improvised Explosive Devices (IEDs) 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 protection to defeat modern threats. Further, it has insufficient mobility given the increased protection and payload requirement of the vehicle. As well, the target acquisition and fire control systems require upgrading to overcome obsolescence issues and to improve technical effectiveness and 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

Implementation.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

List of Major Milestone	Date
Treasury Board Approval	June 2009
Treasury Board Approval for Contract Approval	April 2010
Implementation Start	October 2011
First Vehicle Delivery	2012
Last Vehicle Delivery	Late 2017
Project Completed	Spring 2019

Project Outcomes

To deliver 550 LAV III vehicles upgraded in the areas of mobility, protection and lethality capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Canadian Army.

Progress Report and Explanations of Variances

The project received Preliminary Project Approval in June 2009 and was announced by the Minister of National Defence in July 2009. The PWGSC submission received Treasury Board approval in April 2010. The project received Effective Project Approval and Contract Approval from Treasury Board in October 2011. Both approvals were announced by the Associate Minister of National Defence and the Minister of Public Works and Government Services Canada in October 2011.

Industrial and Regional Benefits

General Dynamics Land Systems-Canada is committed to provide 100% of contract value in Industrial and Regional Benefits (IRB).

LIGHTWEIGHT TOWED HOWITZER

Description

The Lightweight Towed Howitzer (LWTH) project is a key facet of the Land Forces current indirect fire capability deficiency. Specifically, over the summer of 2011, the project fielded 25 M777 lightweight 155mm towed howitzers to the Canadian Army, each with a Digital Gun Management System (DGMS), to augment the 12 M777 howitzers currently in service. The project will also field improved ammunition and wheeled gun tractors. These howitzers provide a capability enhancement in terms of lethality, range, precision, mobility and digitization and support future missions and tasks likely to be assigned to the CF.

Project Phase

Implementation.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	BAE Systems, Barrow-in-Furness, Cumbria, UK
Major Subcontractor(s)	SELEX Sensor and Airborne Systems Ltd, Edinburgh, UK

Major Milestones

List of 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	January 2010
M777 Initial Support Contract Award	June 2010
Initial Operational Capability	October 2011
Final Operation Capability	December 2012
Project Close-Out	March 2013

Project Outcomes

Deliver the following capabilities:

• 25 M777 155mm lightweight howitzers each equipped with a Gun Management System and digital radio
• 37 wheeled gun tractors (based upon the MSVS SMP) that will pull the howitzer and be equipped with an ammunition handling and storage system
• Ammunition (including propellant, projectiles and fuses)
• Integrated logistics support
• Limited infrastructure enhancements

Once delivered and declared at full operational capability, this project will contribute toward achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Canadian Army.

Progress Report and Explanations of Variances

The LWTH project is achieving defined project objectives. Final deliveries of the M777 howitzer and the Gun Management System components commenced in late 2010 and were completed Summer 2011.

The Initial Operational Capability (IOC) was originally forecasted to occur in July 2011 and was shifted to October 2011 as a result of unforeseen issues with technical integration. The project achieved IOC on October 2011.

The LWTH project is currently running within the allocated budget and is currently planning to move to Effective Project Closure (EPC) March 2013, in line with the EPA submission.

Industrial and Regional Benefits

The LWTH project has Industrial and Regional Benefits (IRB) agreements established with BAE Systems on the M777 LWTH FMS Acquisition case and with SELEX on the Gun Management System (GMS) acquisition contract.

In view of the low value of the M777 Initial Support contract and the high proportion of parts and labour, the initial support contract will not have IRBs. However, as the support concept matures, IRBs will be considered. SELEX has currently achieved approximately 50% of their IRB commitment.

MARITIME HELICOPTER PROJECT

Description

The purpose of the Maritime Helicopter Project (MHP) 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 2010, the project marked the six-year milestone in the Implementation Phase. The project focus is shifting from design and engineering to flight test and preparations for operational testing and evaluation, followed by delivery of the fully capable Maritime Helicopters which contractually are required to start in June 2012. However, the delivery of fully capable helicopters is now expected to occur in 2013.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Sikorsky International Operations Incorporated, Stratford, Connecticut, USA
Major Subcontractor(s)	General Dynamics Canada, Ottawa, Ontario, Canada L-3 MAS, Mirabel, Québec, Canada

Major Milestones

List of Major Milestone	Date
Preliminary Project Approval	June 2003
Invitations for Bids Posted on MERX	December 2003
Effective Project Approval	November 2004
Contract Award	November 2004
First Delivery (Interim Maritime Helicopters)	June 2012
First Delivery (Fully Capable Maritime Helicopters)	Late 2013
Final Delivery	2013
Project Close-Out	2014

Project Outcomes

Deliver 28 fully equipped Maritime Helicopters to support operations and deploy with the Halifax Class Frigates capable to execute the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, it will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Royal Canadian Navy.

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 International Operations Incorporated agreed to a new schedule for the delivery of six interim helicopters starting in November 2010, with delivery of fully capable helicopters commencing in June 2012. However, the delivery of fully capable helicopters is now expected to occur in 2013. A second contract amendment in June 2010 modified the requirements for the interim Maritime Helicopter to allow delivery with an earlier version of mission system software while still enabling the start of initial training and operational testing. Sikorsky International Operations Incorporated is now indicating first delivery of an interim helicopter will start in June 2012.

Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on the 12 Halifax Class Frigates have progressed well and are on schedule. The first test flight of the Maritime Helicopter occurred in November 2008. The second Maritime Helicopter, the first aircraft with complete Mission System Hardware installed, underwent its first test flight in July 2009. Defence crews, as part of the Combined Test Force with Sikorsky International Operations Incorporated, began aircraft testing in July 2009. The first Ship Helicopter Operation Limitations – Sea Trial and the second Sea Trial are now complete. The project is currently running within its authorized budget.

Industrial and Regional Benefits

The Industrial and Regional Benefits (IRB) are equivalent to 107% of the contract value for the capital acquisition and more than 80% of the contract value for the in-service support. Further, Sikorsky International Operations Incorporated agreed to an additional $80M of IRBs in the June 2010 contract amendment for the in-service support contract.

MATERIAL ACQUISITION AND SUPPORT INFORMATION SYSTEM

Description

The mission of the Materiel Acquisition and Support Information System (MASIS) project is to provide the Department of National Defence (DND) with an 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, supply chain, Integrated Logistics Support (ILS), equipment configuration management, 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 where emphasis is on the delivery of the MASIS solution to the Army, Air Force, Navy ships and supply chain.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	IBM Canada, Ottawa, Ontario, Canada
Major Subcontractor(s)	SAP Canada, Ottawa, Ontario, Canada Pennant, Ottawa, Ontario, Canada

Major Milestones

List of Major Milestone	Date
Preliminary Project Approval - Expenditure Authority for Phase 1	June 1998
Contract Awarded for Prime Systems Integrator	December 1998
MASIS system - Go Live Phase 1 (202 Work Depot Montréal)	September 1999
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 Army.	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 Air Force and Army.	June 2007
Revised EPA and increase to the Contracting Authority	September 2011
Supply chain integrated within DRMIS (spell out)	November 2013
Project Close-Out	December 2013

Project Outcomes

Deliver an end-to-end information system to enable materiel acquisition and support processes to the Navy, Army and Air Force. This system has improved visibility and efficiency of weapon system and equipment support. MASIS has also enabled Defence’s vision of business renewal. Once delivered and declared at full operational capability, this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Joint and Common Support Equipment Acquisition and Disposal.

Progress Report and Explanations of Variances

In June 2007, the MASIS project received Treasury Board approval for Phase 5 in the amount of $170M.

In September 2011, the project received Treasury Board approval for a refinement in its scope of work and an increase to the contracting authority to complete Phase 5 activities. The Expenditure Authority granted in 2007 was not amended as sufficient funds remain.

Industrial and Regional Benefits

All Industrial and Regional Benefits (IRB) are attributed to Ontario since all project expenditures occur in Ontario.

MEDIUM-TO-HEAVY-LIFT HELICOPTER

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 (MHLH) 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, MHLH will provide the Government with a wider range of military options for addressing threats and emergencies beyond the CF's current helicopter fleets.

The MHLH project will deliver 15 Chinook CH-47F helicopters to support land-based domestic and international operations and to support land staff training on the road to high readiness, as well as integrated logistic support and other related support elements.

Project Phase

Implementation: The MHLH Project entered the implementation phase in July 2009. The first two aircraft are currently on the production line. These helicopters will complete one year of intensive test and evaluation starting June 2012. The first of fifteen helicopters is scheduled for delivery in June 2013 and the final helicopter will be received in June 2014.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	The Boeing Company, Philadelphia, Pennsylvania, USA
Prime Contractor	CAE, St-Laurent, Quebec, Canada

Major Milestones

List of Major Milestone	Date
Synopsis Sheet Preliminary Project Approval	June 2006
Advanced Contract Award Notice Posted on MERX	July 2006
Effective Project Approval and Contract Award	June 2009
First Aircraft	June 2012
First fully mission ready aircraft	June 2013
Initial Operational Capability	June 2014
Full Operational Capability*	June 2017
Project Close-Out	June 2018

*Explanation of variance. Shortage in the delivery of trained pilots is expected to extend the achievement of Full Operational Capability by two years.

Project Outcomes

Deliver 15 Chinook CH-47F helicopters capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, this project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Canadian Army.

Progress Report and Explanations of Variances

In June 2009, Treasury Board granted Effective Project Approval with a substantive cost of $2.312B. A contract was awarded to The Boeing Company in June 2009 at a value of $1.156B (USD). In March 2010, a contract amendment to the existing CAE contract for Operational Training was issued to include MHLH requirements. The MHLH project is currently on budget and in scope. The project is to be completed by June 2018.

Industrial and Regional Benefits

The procurement strategy for MHLH will provide Industrial and Regional Benefits (IRB) equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. 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.

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT

Description

The Medium Support Vehicle System (MSVS) 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 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 Load Handling System trailers, with options for an additional 240;
• Medium-sized Militarized Commercial Off-the-Shelf (MilCOTS) vehicles:
  - 1,300 commercial vehicles with militarized components; and
  
• Special Equipment Vehicle (SEV) Kits:
  - 895 special equipment vehicle kits, with options for an additional 110.

Project Phase

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor - MiLCOTS	Navistar Defence LLC, Warrenville, Illinois, USA
Prime Contractor - SEV Baseline Shelters	DEW Engineering and Development ULC, Ottawa, Ontario, Canada

Major Milestones

List of Major Milestone	Date
Preliminary Project Approval	June 2006
Mil COTS - Invitation for Bids Posted on MERX	November 2007
Mil COTS – Revised Preliminary Project Approval	December 2008
Mil COTS - Contract Award	January 2009
Mil COTS - First Delivery	June 2009
Mil COTS - Delivery Complete	March 2011
SEV Baseline Shelter - Invitation for Bids Posted on MERX	May 2008
SEV Baseline Shelter - Revised Preliminary Project Approval	June 2009
SEV Baseline Shelter - Contract Award	July 2009
SEV Baseline Shelter - First Delivery	Early 2012
SEV Baseline Shelter - Delivery Complete	Spring 2014
SEV Kits - Invitation for Bids Posted on MERX	October 2011
SEV Kits - Revised Project Approval (Definition)	Spring 2012
SEV Kits - Contract Award	Spring 2012
SEV Kits - First Delivery	Spring 2013
SEV Kits - Delivery Complete	Fall 2014
SMP - Invitation for Bids Posted on MERX	Fall 2011
SMP - Project Approval (Implementation)	Early 2013
SMP - Contract Award	Early 2013
SMP - First Delivery	Spring 2014
SMP - Delivery Complete	Fall 2015
Project Close-Out	2016

Project Outcomes

Deliver a replacement fleet of medium-weight trucks capable to execute the roles and core missions of the Canada First Defence Strategy (CFDS). At the conclusion of the project, the Canadian Forces will have acquired two fleets of medium-weight vehicles (MilCOTS and SMP) as well as new SEVs. Once delivered and declared at full operational capability will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Canadian Army.

Progress Report and Explanations of Variances

In June 2009, Treasury Board expenditure authority was obtained for SEV Baseline Shelters for $161.4M ($Budget Year) plus GST and a Revised PPA was granted for an indicative full-up cost of $1.244B ($Budget Year) plus GST for all components of the MSVS project.

• MilCOTS – An Agreement in Principle was reached in August 2008 with the single responsive bidder. Contract approval was received in December 2008. The contract was awarded in January 2009 and the last vehicle was accepted in March 2011;
• SEV Baseline Shelters – An Agreement in Principle was reached in April 2009 with the single responsive bidder. Revised PPA and contract approval was received in June 2009. The contract was awarded in July 2009;
• SMP - Portions of a draft Request for Proposal (RFP) were posted on the project website in October 2009 and again in November 2010 for industry comment. The final RFP was scheduled for release in late 2011; and
• SEV Kitting - A draft SEV Kitting RFP was posted on the project website in late December 2009 for industry comment. The complete draft RFP was released in June 2010 for industry comment. The final RFP was released in October 2011.

MERCURY GLOBAL

Description

The Mercury Global (MG) project will provide wideband global satellite communications that are guaranteed and directly interoperable with our principal Allies. The project will deliver a Canadian Wideband Global System (WGS) Military Satellite Communications System for near-worldwide assured, wideband communications to the CF for the command and control of deployed Canadian commanders and forces, as well as interoperability with some of our principal allies, the United States, Australia, Denmark, the Netherlands, Luxembourg, and New Zealand.

Project Phase

Definition.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Satellite Constellation- United States Department of Defense (DoD) via a Memorandum of Understanding Terminals - To be determined
Major Subcontractor(s)	Satellite Manufacturer- Boeing, St Louis, Missouri, USA Terminals - To be determined

Major Milestones

List of Major Milestone	Date
Preliminary Project Approval	October 2011
Initial Satellite Access	November 2011
Effective Project Approval	April 2013
Terminal Implementation Complete	October 2016
Full Operational Capability	October 2017
Project Complete	Winter 2017/2018

Project Outcomes

Deliver a near-worldwide, Canadian assured, wideband global Military Satellite Communications System. When operational, this system, when coupled with the secure and protected capabilities being delivered by the Protected Military Satellite Communications project, will ensure, in part, that the Canadian Forces will be well-equipped with modern strategic and tactical satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability, the project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Joint and Common Informatics Infrastructure Acquisition and Disposal.

Progress Report and Explanations of Variances

In Phase 1, procurement of guaranteed access to and participation in the US Department of Defense (DoD) Wideband Global Satellite constellation to the year 2032 was approved by Treasury Board with Preliminary Approval in October 2011. Treasury Board also granted approval for the Department of National Defence (DND) to enter into a Military Satellite Communications (MILSATCOM) Memorandum of Understanding (MOU) with, principally, the US DoD, and also Denmark, The Netherlands, Luxembourg, and New Zealand. The MOU is the vehicle used to fund the construction and launch of the ninth Wideband Global System satellite and, thereby, provide the US DoD Wideband Global System service to DND (and the others) to, at least, the year 2032. The MOU was signed by Canada in November 2011. In addition, approval was granted to define the terminal segment and to provide funds to facilitate early use of the Wideband Global Satellite Communications service.

Effective Approval for Phase 2 will be sought in the spring 2013 for the procurement and installation, where necessary, of the associated Wideband Global Satellite anchor station and strategic satellite terminals.

The total indicative cost for this project (both phases) is estimated at $539.4M ($Budget Year) including $13.4M HST. The project is on budget.

Industrial and Regional Benefits

Under Phase 1, the Senior Project Advisory Committee (SPAC) endorsed that the Geostationary Coverage Space Segment service would be acquired through an MOU between United States, Denmark, The Netherlands, Luxembourg, and New Zealand. Regarding Industrial and Regional Benefits (IRB), a separate agreement between Boeing and Public Works and Government Services Canada has been negotiated in which Boeing has committed to IRBs equivalent to 100% of DND’s proportionate share of the final negotiated price of the Boeing contract with the US DoD for the ninth Wideband Global Satellite.

In the future Phase 2, the strategic terminals’ procurement, anchor stations’ construction, and Integrated Life Support would be acquired through competitive procurement.

NEXT GENERATION FIGHTER CAPABILITY

Description

The objective of the Next Generation Fighter Capability (NGFC) project is to acquire 65 next generation fighters to replace the CF-18 fleet on its retirement so as to maintain a manned fighter capability necessary for the defence of Canada and North America, and for CF collective expeditionary operations.

Project Phase

Options Analysis: An interim Project Management Office was stood up in October 2010 and work has been initiated to advance a Treasury Board submission seeking the required expenditure authorities for definition stage activities.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence (DND)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Public Works Secretariat, Industry Canada and its regional agencies

Prime and Major Subcontractor(s)

Prime Contractor	Joint Strike Fighter Program Office (JPO), Washington, DC, USA
Major Subcontractor(s)	Lockheed Martin Aeronautics Company, Fort Worth, Texas, USA

Major Milestones

List of Major Milestone	Date
Synopsis Sheet (Identification)	January 2010
Treasury Board Project Approval (Definition)	2012
Treasury Board Project Approval (Implementation)	2013
First Participant Procurement Request	2013
Delivery First Aircraft	2017
Initial Operational Capability	2020
Full Operational Capability	2025
Project Close-Out	2027

Project Outcomes

The NGFC project will deliver 65 F-35A Conventional Take-off and Landing (CTOL) aircraft capable of executing the roles and core missions described in the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, NGFC will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Aerospace Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Royal Canadian Air Force.

Progress Report and Explanations of Variances

In July 2010, the Government of Canada announced its decision to acquire 65 F-35 Lightning II fighter aircraft to replace the CF-18 fleet at an estimated acquisition cost of $9B. The process for acquisition is detailed in the Joint Strike Fighter (JSF) Production, Sustainment and Follow-On Development (PSFD) Memorandum of Understanding (MOU). An interim Project Management Office was stood up in October 2010 and work has since been initiated to advance a Treasury Board submission seeking project approval and initial expenditure authorities.

Industrial and Regional Benefits

By signing the PSFD MoU, the nine partner countries involved agreed to an industrial participation model for the JSF program. As a result, Canada’s defence industry has had a unique opportunity to be a part of the JSF global participation model for the JSF program. Canada’s defence industry has the opportunity to be a part of the JSF global supply chain, which means Canadian companies will not only work in support of the 65 aircraft that Canada is buying, but for the more than 3,000 F-35s that will be built. Canadian companies have already received more than $435M (USD) in contracts for the development and production of the F-35.

PROTECTED MILITARY SATELLITE COMMUNICATIONS

Description

The Department of National Defence (DND) and the Canadian Forces (CF) are being provided with global communications that are secure, guaranteed and directly interoperable with our Allies by the Protected Military Satellite Communications (PMSC) project. The project will deliver 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 some of our principal allies, the United States, The United Kingdom, and The Netherlands.

Project Phase

Implementation: The PMSC project is being implemented in two phases with project completion expected for winter 2017/2018.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	United States Department of Defense (DoD) via FMS
Major Subcontractor(s)	Raytheon, Waltham, Massachusetts, USA

Major Milestones

List of Major Milestone	Date
Preliminary Project Approval (PPA)	August 1999
Effective Project Approval (EPA)	November 2003
Initial Terminal Delivery	Autumn 2012
Initial Satellite Availability	Winter 2012/2013
PMSC System Full Operational Capability	Summer 2019/2020
Project Complete	Winter 2019/2020

Project Outcomes

Deliver a near-worldwide, assured, secure, survivable, and jam-resistant Canadian Advanced Extremely High Frequency (AEHF) Military Satellite Communications System. This system, when coupled with the wideband capabilities being delivered by the Mercury Global project, will ensure, in part, that the Canadian Forces will be well-equipped with modern strategic and tactical satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability the project will contribute towards achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Joint and Common Informatics Infrastructure Acquisition and Disposal.

Progress Report and Explanations of Variances

In the completed Phase 1, procurement of guaranteed access to the US Department of Defense (DoD) Advance Extremely High Frequency (AEHF) satellite constellation was approved by Treasury Board (TB) with Preliminary Project Approval (PPA) in August 1999. TB also granted approval for the Department of National Defence (DND) to enter into a Military Satellite Communications (MILSATCOM) Memorandum of Understanding (MOU) with the US DoD. This would ensure DND access to the US DoD Advance Extremely High Frequency (AEHF) satellite constellation. This MOU was signed in November 1999. In addition, approval was granted to define the terminal segment. The total cost of this Phase was a substantive cost estimate of $270.8M ($Budget Year), GST included.

Phase 2 has been underway since November 2003, when TB granted Effective Project Approval (EPA) for the procurement and installation, where necessary, of the associated Advance Extremely High Frequency satellite terminals at a substantive estimated cost of $321M ($Budget Year) including GST/HST.

The total substantive cost (including funds approved at PPA) is currently estimated at $592M ($Budget Year) including GST/HST. The project is on budget.

Due to slippages in the US DoD overall satellite launch schedule, the PMSC System Full Operational Capability, accordingly has moved to December 2019 from the original expected date of November 2017.

Industrial and Regional Benefits

Under the completed Phase 1, the US DoD committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations were permitted to bid on project work.

For Phase 2, a Senior Project Advisory Committee (SPAC) endorsed that terminal acquisition and support will be procured through Foreign Military Sales (FMS) with installation performed through Defence-managed contracts. Industrial and Regional benefits were negotiated with Raytheon by Industry Canada.

SUBMARINE CAPABILITY LIFE EXTENSION

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 officially began in July 2010. The remaining associated projects will be completed by project closure in March 2013.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

List of 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)	Late 2012
Project Close-Out	March 2013

Project Outcomes

The SCLE Project has acquired a complete submarine capability to replace the previous OBERON class submarines; this replacement capability includes:

• four functional Victoria class submarines, acquired from the United Kingdom Ministry of Defence, 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;
• a technical data package consisting of manuals, design data, trials reports and maintenance and configuration records;
• initial spares including on-board and depot spares, special tools and other support equipment; and
• initial conversion training of four Canadian submarine crews and the fleet support personnel necessary to maintain and operate the Victoria Class.

This project contributes to achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Maritime Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Royal Canadian Navy.

Progress Report and Explanations of Variances

EPA was granted to the SCLE project in June 1998 at an estimated total cost of $812M ($Budget Year) excluding GST. The expenditure ceiling was increased by $84.8M by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. The SCLE project is within 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 Submarine (HMCS) Victoria completed an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Breton in November 2011 and is undergoing operational tests and evaluation;
• HMCS Windsor is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Scott. She is scheduled to undock and complete this activity in mid – 2012;
• HMCS Corner Brook is currently in an Extended Limited Maintenance Period (ELMP), awaiting her scheduled EDWP in 2013; and
• HMCS Chicoutimi was handed over to Canada in October 2004 and while en-route to Canada had an electrical incident at sea that resulted in a fire and was returned to Canada via sealift. Although some of the repairs have been completed, a decision was taken to delay the completion of the repair and Canadianization until her EDWP. HMCS Chicoutimi was signed over to the Canadian Submarine Management Group (In- Service Support Contractor) in June 2009. Her EDWP commenced in July 2010 and she is scheduled to return to sea in 2013.

Based on progress to date and current information, all performance objectives of this contract will be met within the allocated budget.

Industrial and Regional Benefits

This project will provide an estimated $200M in direct and indirect Industrial and Regional Benefits (IRB). This includes Canadian modifications to the submarines and the relocation of the simulators and trainers to Canada. A further $100M in IRBs 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

Description

The Tactical Armoured Patrol Vehicle (TAPV) Project is one of four projects of the Future Land Combat Vehicles System announced in July 2009.

The TAPV Project will deliver a wheeled combat vehicle to the Canadian Army that will fulfill a wide variety of roles on the battlefield, including but not limited to reconnaissance and surveillance, security, command and control, cargo and armoured personnel carrier. It will have a high degree of tactical mobility and a very high degree of crew survivability.

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.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Not identified at this time
Major Subcontractor(s)	Not identified at this time

Major Milestones

List of Major Milestone	Date
Identification Phase approved	March 2008
Project Charter approved	May 2009
Preliminary Project Risk Assessment endorsed	June 2009
Definition Phase approved	June 2009
Statement of Operational Requirements approved	January 2010
Project Approval (Implementation)	June 2012
Contract awarded	Summer 2012
Initial Operational Capability Delivery certified	2014
Full Operational Capability Delivery certified	2016
Project Completion Report Approved	2017

Project Outcomes

The TAPV project expects to achieve the following outcomes:

• An initial purchase of 500 TAPV;
• An optional purchase for up to 100 additional vehicles;
• Procurement and delivery of essential Integrated Logistics Support (ILS) to sustain the fleet the first two (2) years;
• Acquisition of an operational stock and two (2) years of training stocks of ammunition; and
• Implementation of a long-term (25-year) through life In-service Support Contract to be funded through Army National Procurement funds.

This project contributes to achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Canadian Army.

Progress Report and Explanations of Variances

In June 2009, Treasury Board granted Preliminary Project Approval. Further, Treasury Board granted Expenditure Authority for Definition at a substantive cost of $37.5M ($Budget Year). The TAPV Project is within budget.

In November 2008, the Senior Project Advisory Committee approved a procurement strategy for a phased approach within a competitive process. Public Works and Government Services Canada released the Letter of Interest/Price and Availability in July 2009 to obtain cost and schedule information to support the Project Approval (Implementation) submission. A Statement of Interest and Qualification was released in March 2010 and closed in June 2010 with seven pre-qualified bidders announced in July 2010. A draft Request for Proposal (RFP) was issued in November 2010 and the final RFP was issued in March 2011 with a closing date of August 2011. RFP evaluation and testing of contender vehicles commenced in Autumn 2011 and was completed in January 2012.

Industrial and Regional Benefits

This procurement will provide Industrial and Regional Benefits (IRB) for the capital acquisition of the TAPV and its associated in-service support. Direct industrial and regional benefits requirements have been established at 25% for the Acquisition Contract and at 40% for the Support Contract.

TANK REPLACEMENT PROJECT

Description

The purpose of the Tank Replacement Project (TRP) is to replace Canada's aging Leopard 1 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 as well as the Integrated Logistics System (ILS) inherent to the variants.

Project Phase

Implementation: The project received Preliminary Project Approval (PPA) (inclusive of EPA for Phase 1) from Treasury Board in March 2007 and Effective Project Approval (EPA) in June 2009 for Phase 2. The project is capped at $650 million.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Phase 1
Prime Contractor for ARV upgrades	Rheinmetall Land System (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 A4M (operational) tanks	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 20 Leopard 2 A6M tanks for return to German Government	Krauss Maffei Wegmann (KMW), Germany
Prime Contractor for 42 Leopard 2 A4 training tanks	Rheinmetall Canada Inc (RhC), Canada
Prime Contractor for 8 Leopard 2 ARVs	Rheinmetall Land System (RLS), Germany
Prime Contractors for ILS related contracts: Ammunition Simulators Special Tools & Test Equipment (STTE) Initial Provisioning of Spare Parts Sub-Calibre Training Devices (SCTD)	General Dynamics Ordnance and Tactical Systems - Canada To be determined Various OEMs (6 Contracts) To be determined To be determined

Major Milestones

List of Major Milestone	Date
Memorandum to Cabinet	March 2007
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
Phase 1 – PPA amendment approved by Treasury Board	June 2008
Memorandum to Cabinet Amendment	April 2009
Treasury Board Effective Project Approval (EPA) with conditions	June 2009
Phase 2 – Contract to KMW for 20 Leopard 2 A4M Operational tanks (repair, overhaul and upgrade)	June 2009
Phase 1 – Contract to KMW for replacement in kind tank return to German MoD - 20 x Leopard 2A6 (NLD) tanks	July 2009
Phase 2 – Contract for repair and overhaul of 42 x Leopard 2A4 CAN (Training) tanks	August 2010
Phase 2 – Contract for 8 Leopard 2 ARV	November 2011
Full Operational Capability (FOC) – (Phase II)	October 2014
Project Close-Out	January 2015

Project Outcomes

Deliver the following capacities:

• 20 Leopard 2 A6M – Operational Main Battle Tanks (MBTs) for expeditionary tasks. L55 Gun with additional mine protection and slat armour systems;
• 20 Leopard 2 A4M – Operational MBTs for expeditionary tasks. L44 Gun with mine protection, slat armour and all around add-on armour systems;
• 42 Leopard 2 A4 – Main Battle Tanks primarily used for training. L44 Gun with basic protection;
• 8 Leopard 2 Armoured Recovery Vehicle (ARV). Four ARVs will be designated for expeditionary tasks and four for domestic support; and
• Appropriate ammunition, parts and special maintenance tools and training.

This project contributes to achieving the following Program Activity Architecture (PAA) Strategic Outcome: Acquiring the resources to meet government defence expectations, specifically the program activity of Land Equipment Acquisition and Disposal.

The primary beneficiary of this capability is the Canadian Army.

Progress Report and Explanations of Variances

Treasury Board approved the PPA Amendment in June 2008 allowing the replacement in kind concept for the loaned tanks. Canada will retain the loaned German Leopard 2 A6M. In return, the purchased Dutch Leopard 2 A6 will be converted to a German standard and returned to the German Ministry of Defence.

Effective Project Approval was approved by Treasury Board in June 2009 supporting the Phase 2 procurement strategy including development of a work capacity in Canada. Development of this capacity resulted in the change of the Final Operational Capability in October 2014. In addition, cost continues to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities.

Recently, TRP received authority to use $21.4M of contingency in order to support the Munition Supply Program (MSP) for the establishment of new ammunition capacity in Canada.

The project continues to move forward aggressively while ensuring effective support to Army high readiness training and the establishment of critical support contracts.

Industrial and Regional Benefits

No Industrial and Regional Benefits (IRB) were required for Phase 1.

For Phase 2, IRBs are a requirement. Bidders are 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.

Description:

This project is meant to strengthen the emergency management capacity within Public Safety Canada’s regional offices.  This initiative consists of co-locating regional offices, improving communications and information technology capabilities as well as conducting essential renovations to retrofit operations facilities to meet the accommodation guidelines for Federal Emergency Operations Centres (FEOC).

The Department is currently managing projects in Montreal (Quebec), Yellowknife (Northwest Territories), Winnipeg (Manitoba), Vancouver (British Columbia) and Toronto (Ontario).

Project Phase:

This project is composed of a series of seven sub-projects that are similar in nature for each centre. Most of these sub-projects are at the implementation phase.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Public Works and Government Services Canada manages all major contracts
Major Subcontractor(s)	Public Works and Government Services Canada manages all major contracts

Major Milestones

List of Major Milestone		Date
Regina (Saskatchewan)	Project completed	February 2011
Fredericton (New Brunswick)	Project start – Identification of needs
	Request for Information (RFI – find a location)	July 2009
	Site visits	August 2010
	Launch of Request for Proposal (RPF – Award a leasing contract)	October 2010
	Planning design phase	November 2010
	Construction phase	August 2011
	Fit-up phase	December 2011
	In-service	January 2012
Montreal (Quebec)	Project start – Identification of needs	June 2010
	Request for Information (RFI – find a location)	November 2010
	Site Visits	January 2011
	Launch of Request for Proposal (RPF – Award a leasing contract)	February 2011
	Planning design phase	October 2011
	Fit-up phase	January 2012
	In-service	April 2012
Yellowknife (Northwest Territories)	Project start – Identification of needs	July 2009
	Crown-owned building – determine location	November 2010
	Planning design phase	October 2010
	Fit-up phase	February 2012
	In-service	May 2012
Winnipeg (Manitoba)	Project start – Identification of needs	July 2009
	Request for Information (RFI – find a location)	December 2010
	Site visits	January 2011
	Launch of Request for Proposal (RPF – Award a leasing contract)	June 2011
	Planning design phase	October 2011
	Fit-up phase	TBD
	In-service	September 2012
Vancouver (British Columbia)	Project start – Identification of needs	July 2009
	Request for Information (RFI – find a location)	July 2011
	Site visits	September 2011
	Launch of Request for Proposal (RPF – Award a leasing contract)	February 2012
	Planning design phase	April 2012
	Fit-up phase	July 2012
	In-service	November 2012
Toronto (Ontario)	Project start – Identification of needs	July 2009
	Determine location	November 2010*
	New proposed location – site visit	January, 2012
	Award leasing contract	TBD
	Planning design phase	TBD
	Fit-up phase	TBD
	In-service	September 2013

* Location to be confirmed based on PWGSC’s ability to provide a suitable Crown owned building.

Project Outcomes

• Project Outcome: Integrated Public Safety Canada teams in the regions with strong leadership.
  • Performance indicators:
    • Number of Public Safety Canada offices consolidated.
    • Leadership positions established and staffed.
  • The recipients of this project are the Public Safety Canada regional offices and the Department at large.

• Project Outcome: Strengthen the emergency management capacity within Public Safety Canada’s regional offices
  • Performance indicators:
    • Number of Public Safety Canada offices consolidated.
    • Leadership positions established and staffed.

Progress Report and Explanations of Variances

1. Treasury Board approved the regional co-location project with an estimated cost of $10.7M over the 2008-2012 timeframe.
2. Since the outset of this project, Public Safety Canada experienced several scheduling delays, which directly impacted the annual distribution of funds. A portion of the funds were reallocated to fiscal year 2012-13; however, the project is still on budget.
3. The new completion target date is set for March 2013.

Industrial Benefits

Given that these sub-projects are conducted within the regions, local contractors and suppliers are being awarded to complete the refit construction work. Local economy is stimulated in these locations:

• Regina (Saskatchewan),
• Fredericton (New Brunswick),
• Montreal (Quebec),
• Yellowknife (Northwest Territories),
• Winnipeg (Manitoba),
• Vancouver (British Columbia)
• Toronto (Ontario)

Description:

PWGSC is the custodian of the buildings and grounds within the area surrounding Parliament Hill, known as the Parliamentary Precinct. Part of this important mandate is to maintain the historical and architectural integrity of these assets.

In 2007, in conjunction with the Parliamentary Partners-the Senate, the House of Commons and the Library of Parliament–PWGSC updated the Long Term Vision and Plan (LTVP). The updated LTVP provides a co ordinated long term approach to rehabilitating the heritage buildings in the Parliamentary Precinct (including the Parliament Buildings), meeting the accommodation requirements of Parliament, and providing a secure and welcoming environment for parliamentarians, staff and visitors.

The LTVP confirms the Vision and Guiding Principles for future development in the Parliamentary Precinct. The Vision ensures that changes within the Precinct meet the evolving functional needs of parliamentarians and other stakeholders while keeping in mind the historic, environmental and symbolic primacy of the site. The Guiding Principles are expressions of values and attitudes towards development within the Precinct and they set out essential areas for consideration when change is contemplated. Together with the Vision, the Guiding Principles establish a qualitative context for project evaluation and decision making.

The LTVP includes an Implementation Framework designed to provide greater flexibility in planning and implementation and support more accurate costing and project timelines. This Framework established a strategy, consisting of a series of cyclical five-year programs. Each five-year program is composed of four components: the Major Capital Program, the Recapitalization Program, the Planning Program, and the Building Components and Connectivity Program. The current focus of the programs is as follows:

1. The Major Capital Program of the current five-year program of work focuses on advancing the restoration of the main Parliament Buildings, beginning with the West Block. The Major Capital Program includes:

   1. Restoration and adaptation for the Wellington building (180 Wellington), the Sir John A. Macdonald Building(144 Wellington) and the initiation of work for the East Block; and

   2. The West Block's major rehabilitation and the construction of an infill in the building's courtyard to accommodate a Parliamentary Chamber, so that the Centre Block can be emptied and restored.

2. The Recapitalization Program is designed to address urgent work required to preserve the buildings and address health and safety issues critical to reducing overall expenditures and to limit the potential closure of occupied buildings. Projects in the Recapitalization Program are not stop-gap measures but rather permanent interventions to stop or reduce continued deterioration - investing in sustaining the building well beyond future major renovations. The Recapitalization Program may also include urgent building repairs required to ensure the ongoing viability of buildings and address health and safety issues. The major focus of this Recapitalization Program for the first five years includes:

   1. Centre Block – rehabilitation of portions of the pavilions and ventilation towers;

   2. East Block – exterior envelope repair of the 1867 wing with initial focus on the rehabilitation of the Northwest Tower and the Southeast corner;

   3. Confederation Building – repairs to the entire building envelope (masonry, windows and roof) and upgrade of elevators and domestic water/storm drainage system;

   4. Emergency work – such as the West Block water main; and

   5. Parliamentary Grounds work such as the North perimeter wall and slope stabilization.

3. The Planning Program focuses on the development of a number of Master Plans that guide project planning as well as the preparatory work for future projects, including the development of plans and cost estimates for projects in the next five-year Program, providing overall coordination between active projects to ensure they dovetail and contribute to the broader objectives of the LTVP Vision and Guiding Principles.

   Master Plans in the coming years will address the three blocks opposite Parliament Hill between Bank and Elgin Streets; Material Handling and Transportation; Landscape; underground Infrastructure and the West Sector Area. Other Planning studies will focus on the Centre Block Rehabilitation Program of Works; Interim Vehicle Screening Facilities; the Visitor Welcome Centre; Underground Tunnel Connections and other foundation studies to support future projects.

4. The Building Components and Connectivity (BCC) Program is both precinct-wide (across Parliamentary Precinct) and building specific. Components are building fixtures, furnishings and equipment. Connectivity includes interconnected systems for networking, security, multimedia and other electronic communications. BCC is installed as part of each building project. The BCC Program delivers precinct-wide projects to provide the infrastructure and services to implement the connectivity requirements for the Precinct. The current priority projects for the Precinct include:

   1. Integrated Security System (ISS) Upgrade and Expansion - To upgrade and expand the ISS to meet the needs associated with changing technology and growth during implementation of the LTVP;

   2. Trunked Radio Communications System (TRCS) - - To replace the existing 30 year old TRCS to meet the communications needs of security and operational groups;

   3. Core Network Infrastructure Revision - To select and install network equipment and infrastructure to meet the needs of changing technology, new systems and growth during implementation of the LTVP; and

   4. Wireless Signal Reinforcement and Wireless Network - To improve cell phone signal reception and provide wireless internet connectivity to meet the needs of Parliamentarians.

Project Phase:

The LTVP encompasses numerous and varied individual major capital, recapitalization and planning projects at different project phases at any one time. The Major Capital Projects are detailed below.

 

West Block Program

The West Block is the oldest of the Parliament Buildings located on the "Hill". This three-storey building was built in three phases starting in 1859 and was completed in 1906. Prior to being closed for renovations, the West Block provided accommodations for Members of Parliament MPs), and for parliamentary functions and support services.

Renovations of the building are required for health and safety and asset integrity reasons. In order to implement the renovations, the building had to be completely vacated, thus requiring the provision of alternate accommodations for the MPs, parliamentary functions and support services. Consequently, the program of work is being undertaken in two phases. Phase 1 of the West Block program is now completed and the Phase 2 has begun.

Phase 1 involved:

• Emergency stabilization of towers;

• Repairs of the exterior masonry;

• Establishing alternate accommodations for parliamentary use in the Clarica, C.D. Howe, and 1 Wellington for committee rooms and the La Promenade facility for MP offices, support services and committee rooms; and

• The permanent relocation of the Food Production Facility for Parliament Hill to a remote site.

Phase 2 involves:

• Restoration and adaptation for Parliamentary use of space in the Sir John A. Macdonald Building (144 Wellington) to relocate Confederation room (Ceremonial Room 200);

• Hazardous materials removal, interior demolition, and general rehabilitation of the West Block building; and

• Constructing facilities critical to the continued functioning of Parliament during the renovation of the Centre Block, including an infill in the courtyard of the West Block to accommodate the House of Commons' chamber activities.

• Construction of Phase 1 of the Visitor Welcome Centre and Security Screening Facility which will be the entry point for visitors, provide interpretive programming services as well as visitor screening.

Sir John A. Macdonald Building(144 Wellington)

The Sir John A. Macdonald Building is located at 144 Wellington Street, directly across from Parliament Hill. The building was originally constructed in 1932 to accommodate the Bank of Montreal's Main Ottawa Branch location. In 1973, the Crown expropriated the three blocks facing Parliament Hill between Elgin and Bank, which included the former Bank of Montreal Building, to accommodate Parliamentary and general functions.

In 2003, a highest and best use study was commissioned and the subsequent report recommended that the former Bank of Montreal Building be rehabilitated to permanently house the West Block's Confederation Room (Room 200). Acting on this recommendation, PWGSC is rehabilitating the former Bank of Montreal Building to house two multi-purpose rooms and associated functional meeting and ceremonial space for the House of Commons. On January 11,2012, the former Bank of Montreal Building was re-named the Sir John A. Macdonald Building in honour of Canada's first prime minister.

The Sir John A. Macdonald Building Rehabilitation involves an extensive renovation and adoptive re-use of a classified heritage asset and an addition in an empty lot to the west side of the building. The rehabilitation of the existing building will include removal of hazardous substances, refurbishment of the exterior masonry facades, refurbishment of windows and structural seismic upgrading, replacement of mechanical, electrical and life safety systems, and interior fit-up to meet the functional program requirements of the former Confederation Room (Room 200) functions.

The building addition is necessary to house the support functions that compliment the Room 200 functions. These include emergency exists, washrooms, security screening areas, loading and storage facilities and barrier free access. It will also provide an associated multi-purpose room with full translation and broadcasting capabilities. The building addition will be designed and constructed to respect and compliment the heritage character of the Sir John A. Macdonald Building.

180 Wellington Building

The Wellington Building is located at 180 Wellington Street, across from Parliament Hill. It is a six-storey structure first built in 1925 and later enlarged in the 1950s by Metropolitan Life Insurance Company. The House of Commons has been the major occupant since the Crown expropriated the building in 1973 for government and parliamentary use. Renovations of the building are required to address health and safety issues, replace obsolete building systems and meet building code requirements, including seismic reinforcement. The building has been completely vacated for renovations. This project is a key enabler of the LTVP for the Parliamentary Precinct, as it will provide interim accommodations for Senate and House of Commons Committee Rooms and offices for Parliamentarians during the restoration of the East and Centre Blocks. The work will be completed in two phases to expedite project delivery.

Phase 1 construction started, as planned, in spring 2010 and includes interior demolition, hazardous materials abatement and seismic reinforcement work which is scheduled to be completed by March 31, 2013.

Phase 2 will include the restoration of the exterior envelope, renovation of the base building and interior space. The Wellington Building is targeted for completion in 2015. The current total cost estimate is $425.2 million (GST and HST excluded).

Leading and Participating Departments and Agencies

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

Prime Contractors and Major Sub-Contractors

West Block
Prime Contractor	The West Block building rehabilitation and infill is a joint design venture of ARCOP/FGM, Architects – Montreal, Quebec.
General Contractors	The West Block rehabilitation is being carried out by PCL Constructors Canada Inc.
Sir John A. Macdonald Building (144 Wellington)
Prime Contractor	The Sir John A. Macdonald Building is being designed by NORR Limited Architects and Engineers, Toronto, Ontario.
Wellington Building
Prime Contractor	Design consultant for the Wellington renovation project is NORR Limited, Architects and Engineers, Toronto, Ontario.
General Contractor	Phase 1 Contractor: Abatement, interior demolition and seismic upgrading of the Wellington Building is being carried out by PCL Constructors Canada Inc., Edmonton, Alberta.

Major Milestones

List of Major Milestones	Date
LTVP
Memorandum to Cabinet – The Long Term Vision and Plan for the Parliamentary Precinct – Update 2007	Completed – June 2007
Memorandum to Cabinet – The Long Term Vision and Plan for the Parliamentary Precinct – Update 2010	Completed – April 2010
West Block
Revised Preliminary Project Approval (PPA)	Completed – December 2010
Partial Effective Project Approval (Phase 1)	Completed – June 2005
Full Effective Project Approval (Phase 1)	Approved – February 2007
Partial Effective Project Approval (Phase 2)	Completed – December 2010
La Promenade swing space completion	Completed – December 2010
MPs vacate West Block	Completed January 2011
Major construction start	February 2011
Full Effective Project Approval (Phase 2)	2013*
Major construction completion	2017
Sir John A. Macdonald Building (144 Wellington)
Prime Design Consultant engaged	June 2008
Functional Program completed	February 2009
Effective Project Approval	June 2011
Major construction completion	2015
Wellington
Preliminary Functional Program Completed	Completed – July 2007
Revised Preliminary Project Approval and Phase 1 Effective Project Approval	Completed – March 2008
Consultant Contract Award	Completed – August 2008
Final Functional Program	Completed – July 2010
Construction Start (Phase 1)	April 2010
Partial Effective Project Approval (Phase 2)	March 2011
Construction Completion (Phase 1)	April 2012
Construction Start (Phase 2)	April 2012
Full Effective Project Approval (Phase 2)	2013*
Construction Completion (Phase 2)	Late 2015

* Subject to additional funding

Project Outcomes

The Long Term Vision and Plan provides clear direction for the renewal of Canada's seat of government over a long-term planning horizon. It focuses on achieving three key objectives:

• Ensuring that the physical and heritage integrity of the existing buildings serve Parliament's needs now and into the future;

• Ensuring that Parliamentary accommodations meet changing requirements; and

• Ensuring that the overall design of the Precinct is exemplary in terms of its urban and environmental capacity.

The benefits of a well conceived and executed LTVP will be substantial. When the work envisioned is complete, the Parliament Buildings will stand not only as proud symbols of Canadian heritage, but as the hub of a parliamentary system of government equipped to handle the demands of a dynamic nation in a rapidly changing world.

Progress Report and Explanations of Variances

Progress Report

By March 31, 2011, all major projects were all on schedule and on budget. Successfully completed and fully operational projects included: the Food Production Facility, 1 Wellington (Rideau Committee Rooms), and the La Promenade Building. As well, the West Block North Towers project was completed. Other achievements include the relocation of the Parliamentary Security Service Communication to the Confederation Building; the relocation of the Trade Shops and the re-location and consolidation of printing services. Additional smaller relocations have been successfully completed for security administration, curatorial services, laundry services, the health unit, communications, the Ethics Commissioner, and the maintenance support services unit. Most recently, the West Block was vacated, on schedule, in January 2011 in preparation for its major restoration by PWGSC.

The completion of 1 Wellington and the La Promenade Building are part of PWGSC's LTVP strategy for relocating parliamentarians, their staff and other functions to interim accommodation off Parliament Hill while their building is being restored. Under this strategy, construction of interim accommodation is completed prior to moving occupants from their building in order to allow for major restoration. With the completion of 1 Wellington and La Promenade Buildings, PWGSC added seven committee rooms and 63 parliamentary offices, which enabled PWGSC to empty the West Block Building, while ensuring ongoing parliamentary operations for parliamentarians and their staff.

The restoration of the West Block, which officially began in February 2011, is regarded as the actual start date for the major renovation of the Parliament Buildings on Parliament Hill. Prior to this date, PWGSC's major construction work was focused on projects located off Parliament Hill as part of the LTVP's relocation strategy. Restoration work continued on 180 Wellington which, when completed, will add 69 parliamentary offices and 10 committee rooms to parliamentary operations, enabling PWGSC to vacate and restore the East Block. As well, design work continued on the Sir John A. Macdonald Building (144 Wellington) to provide a permanent replacement for the West Block's former Confederation Room (Room 200). In addition to its restoration of buildings in the Precinct, PWGSC began work on several projects to restore the landscape of Parliament Hill.

Variances of the Major Milestones

There are currently no variances to the major milestones, with the positive exception of advancing the complete emptying of the West Block by four years and advancing the planned completion of the West Block Project by three years from the planned completion date set as part of the 2007 revised LTVP. An active management approach has been instituted to avoid project delays, and lessons learned have been captured and are being applied to subsequent projects of the LTVP Program.

Industrial Benefits

Several multi-million dollar contracts will be awarded over a multi-year period for building construction, information technology systems, multimedia systems, furniture and other equipment.

It is expected that in excess of 20,000 direct and indirect private sector jobs will be generated.

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 pension administration processes and system infrastructure being replaced are more than 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 rely 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.

Project Phase:

The GCPMP's Implementation Phase began in July 2007, following receipt of Effective Project Approval from the Treasury Board and will be completed within five and a half years.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	HP Enterprise Services (formerly 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

Major Milestones

List of Major Milestones	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)	Completed December 2009
Implementation of Release 1.6 (Imaging functions)	Completed 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)	Completed April 2011
Implementation of Release 2.5 (Contributor functions related to Service Purchase and Leave Without Pay)	Completed November 2011
Implementation of Release 2.6 (Web-based self-services for Contributors)	Revised to June 2012
Implementation of Release 3.0 (Annuitant and Accounting functions)	Revised to December 2012
Final maintenance transition	Revised to December 2012
Close-Out Phase	Revised to December 2012

Project Outcomes

• Sustainability of the federal public service pension administration services and systems
• Increased quality, responsiveness and reliability of client service (advice and information)
• Increased client satisfaction (target of 90% satisfaction across public service pension plan members by one year after project completion)
• Increased accuracy and quality of information / records
• 10% reduction in cost of total administration target
• Increased take-up rate of self-service by public service pension plan members

Progress Report and Explanations of Variances

Project Definition Phase (completed June 2007):

• In May 2004, the Treasury Board granted preliminary project approval for the completion of the Project Definition Phase and funding in the amount of $18.74 million (excluding GST).
• The GCPMP completed this phase within the approved budget, although there was a delay of approximately six months in obtaining Effective Project Approval.

Implementation Phase (in progress):

• In June 2007, the Treasury Board granted Effective Project Approval for the implementation of the GCPMP and funding in the amount of $184.75 million.
• The amount budgeted from June 2007 to March 31, 2011, was $171,256,412. Project is presently forecasting to be completed by December 31, 2012, a variance of 11 months on an overall project duration of 55 months, with no change in scope and within budget. The unused contingency, as well as project management efficiencies have allowed remaining within budget despite the 11 months delay.

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 is being conducted in several phases over a five and a half year period (2007-2012). During that time, some temporary positions have been 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 the workforce retention of more than 600 employees in Shediac, New Brunswick.

Description:

Public Works Government Services Canada's Transformation of Pay Administration Initiative consists of two projects, the Pay Modernization and Consolidation of Pay Services that were initiated to replace the Government of Canada's outdated pay administration system and renew business processes and services. These projects will ensure the sustainability of pay administration and contribute to a more effective and efficient public service, offering better value for hard-earned Canadians' tax dollars.

The Pay Modernization Project is intended to replace the 40-year-old Regional Pay System (RPS). The current system depends 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 Pay Modernization Project will replace existing systems with commercial off-the-shelf software products, establishing a platform for more efficient compensation processes with extensive Web capabilities.

The Consolidation of Pay Services Project will gradually transfer pay administration services to a Centre of Expertise located in Miramichi, New Brunswick. The current decentralized model provides inconsistent service and is unable to respond to high attrition and turnover rates in the compensation community. Starting in 2011-12 departments and agencies using the endorsed Government of Canada Human Resources Management System (PeopleSoft) will have pay services consolidated, contributing to a more consistent service delivery and ensuring continued sustainability of pay services.

Project Phase:

After receiving Treasury Board Minister's approval in October 2009, the Pay Modernization Project began its Project Definition Phase. The Project Definition Phase was planned for completion in April 2012 and is now scheduled to be completed in June 2012.

The Consolidation of Pay Services Project also began its Project Definition Phase in October 2009 and this phase was completed in December 2011. Implementation will be completed by 2015.

Leading and Participating Departments and Agencies

Lead Department	Public Works and Government Services Canada
Contracting Authority	Public Works and Government Services Canada
Participating Departments	This Initiative will be delivered by the Public Works and Government Services Canada Accounting, Banking and Compensation Branch in partnership with Information Technology Services Branch. Although there are no participating departments / agencies in the Initiative delivery, there are primary stakeholders as follows: Treasury Board of Canada Secretariat (TBS): TBS, as the employer for the core public administration, according to the Financial Administration Act (FAA) Schedules 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.

Prime and Major Subcontractor(s)

Prime Contractor for Pay Modernization Project	IBM Canada Ltd. 3600 Steeles Avenue East Markham, Ontario L3R 9Z7
Major Subcontractor(s) for Pay Modernization Project	Deloitte 100 Queen Street, Suite 800 Ottawa, Ontario KIP 5T8 Oracle Consulting Services 45 O'Connor, World Exchange Plaza, Suite 400 Ottawa Ontario K1P 1A4 Vendita Technology Group 1120 Finch Avenue West, Suite 701 - #718 Toronto, ON M3J 3H7

Major Milestones - Pay Modernization Project

List of Major Milestones	Date
Project Definition Phase
TB Submission for project approval to implement the Pay Modernization Project	June 2012
Preliminary Detailed Design and Architecture	March 2013
Project Implementation Phase
Configuration	March 2014
Testing	September 2014
Pilot	March 2015
Deployment	June 2015
Project Close Out	July 2015

Major Milestones - Consolidation of Pay Services Project

List of Major Milestones	Date
Project Definition Phase
TB Submission for project approval to implement Pay Consolidation	Completed December 2011
Project Implementation Phase
Wave 1 Transfer of 20,000 pay accounts from participating organizations	August 2013
Wave 2 Transfer of 40,000 pay accounts from participating organizations	February 2015
Wave 3 Transfer of 32,000 pay accounts from participating organizations	December 2015
Wave 4 Transfer of remaining 92,000 pay accounts from participating organizations with the planned implementation of the new pay solution	December 2015
Project Close Out	December 2015

Project Outcomes

The main expected project outcomes for the Transformation of Pay Administration Initiative are as follows:

• Increased quality, responsiveness and reliability of systems and services.
• Improved efficiency for the Government of Canada pay administration allowing Compensation Advisors to increase the number of accounts that they can process from 180 to 400 accounts as a result of pay consolidation and modernization.
• Decreased training time for compensation staff to become fully operational from 18 to 12 months.

Progress Report and Explanations of Variances

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 and the Consolidation of Pay Services Project.

Consolidation of Pay Services Project (in progress):

• The Consolidation of Pay Services project is achieving defined performance objectives. It completed its Project Definition Phase and its Treasury Board submission for project approval to implement the Project within budget.
• On December 8, 2011, Treasury Board Ministers granted project authority and expenditure authority for $118.8M to implement the Project.
• The Project Implementation Phase of the Consolidation of Pay Services project is scheduled to be completed by December 2015.

Pay Modernization Project (in progress):

• The Treasury Board approved the Pay Modernization Project, a component of the Transformation of Pay Administration Initiative, with an estimated cost of $192.1M (including GST).
• The Pay Modernization Project is achieving defined performance objectives. In 2011-12, the contract was awarded to IBM Canada LTD. for the Systems Integrator and selection of the software. The business transformation strategy was completed; the pay solution architecture and the detailed project implementation planning and costing were developed. A Fit-Gap analysis was completed to evaluate the proposed new pay solution against the Government of Canada pay requirements.
• The Project Definition Phase is expected to be completed in June 2012.
• The Pay Modernization Project is to be completed in July 2015.

Industrial Benefits

Pay Modernization Project: A multi-million dollar contract has been awarded to IBM Canada Ltd. at an estimated cost of $5,775,000 for the provision of Commercial-off-the-shelf (COTS) software licenses and professional services for the design and implementation of the new pay system.

During the course of the project, it is expected that there will be some temporary positions required in IBM Canada and PWGSC offices located in the National Capital Area to support the solution implementation and business transformation activities.

Consolidation of Pay Services Project: The Initiative will create 550 new jobs in a Centre of Expertise located in Miramichi, New Brunswick.

Description:

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

Fingerprints are submitted by police agencies to support the creation of criminal records or to search the criminal record repository during criminal investigations or civil security screening. RTID is streamlining these services and enabling an improved tracking of criminals by reducing identification turnaround times from weeks and months to hours and days.

The development of RTID should result in the following end state response times:

• 72 hours for all civil 10-print searches (not linked to a criminal record) (improved from five months)
• 24 hours for all latent fingerprint crime scene searches (improved from six weeks)
• two hours for all refugee 10-print searches (improved from six weeks)
• two hours for all criminal 10-print searches (improved from 10 weeks)

The RTID Project was initiated in 2004 and subdivided into two major phases for its execution:

• Phase 1 modernized the civil clearance process, implemented a new Automated Fingerprint Identification System (AFIS) and developed a new transaction manager – the NPS National Institute of Standards and Technology (NIST) Server – permitting agencies to submit their fingerprint information electronically. Phase 1 was closed out in 2008 from an information technology (IT) perspective.
• The scope for Phase 2 was reassessed and in March 2011 the RCMP received Treasury Board Effective Project Approval (EPA) for the realignment of the Phase 2 objectives. The scope of the realignment will provide benefits related to civil process enhancements and enable the electronic submission of criminal charges. Although the reduced scope will not support the electronic submission of criminal record updates and dispositions, it will provide a functional, stabilized system that can process current and future transaction volumes for both civil and criminal processes. It will also support other Crown initiatives such as Citizenship and Immigration Canada’s Temporary Resident Biometrics Project (TRBP). This scope is scheduled for completion in March 2013.

Project Phase:

The project is currently focusing on IT systems development to stabilize key components that support essential RCMP business outcomes and deliver an RTID solution that supports future Government of Canada needs, such as the TRBP at Citizenship and Immigration Canada.

The project has realigned its staff to better support the requirements of the TRBP. RCMP resources on RTID and TRBP have been integrated to ensure that the RTID solution addresses the needs of all business lines within the scope.

The project is progressing as planned and is expected to deliver on the approved scope, budget and schedule. Development and testing activities continue in support of Criminal Migration.

Leading and Participating Departments and Agencies

Lead Department	Royal Canadian Mounted Police (RCMP)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Public Safety Citizenship and Immigration Canada Correctional Service Canada Canada Border Services Agency Transport Canada Federal Bureau of Investigation Canadian law enforcement agencies

Prime and Major Subcontractors

Prime Contractor
Major Subcontractors	Fujitsu Consulting (Canada) Inc 600-360 Albert Street Ottawa, Ontario K1R 7X7 Cogent Systems Inc 209 Fair Oaks Avenue South Pasadena, California USA 91030 ADGA Group Suite 600 116 Albert Street Ottawa, Ontario K1P 5G3 Zylog Systems Inc Suite 600 1545 Carling Avenue Ottawa, Ontario K1Z 8P9

Major Milestones

List of Major Milestones	Date
Criminal Migration Prep Release in Production	November 2011
Proof of Concept TP2000 Legacy Modernization Project	November 2011
Proof of Concept High/Low Resolution Scanning Legacy Modernization Project	February 2012
Criminal Migration Training Complete	February 2012
Criminal Migration Release in Production	March 2012
Independent Project Review	March 2012
Functional Release in Production	June 2012
Clean-up Release in Production	October 2012
Project Close-out	March 2013

Project Outcomes

Project outcomes include:

• Time to process civil, criminal and refugee 10-print fingerprint submissions reduced
• Time to process latent fingerprint crime scene searches reduced
• Number of latent fingerprint identifications increased
• Time to process updates to criminal records reduced providing front-line law enforcement personnel with current criminal records information

Progress Report and Explanations of Variances

The amended RTID EPA was granted on March 24, 2011 to adjust the project scope, extend the approved timeline and re-establish the expenditure authority.

The RTID Project is progressing as planned. The approved scope, the budget ($156.1M including HST) and the revised project end date of March 2013 will be achieved as per the EPA Authority.

Industrial Benefits

Not applicable.

Description:

The Canada-U.S. Bi-National Transportation Partnership that is planning the new Detroit River International Crossing is comprised of:

• Transport Canada;
• the U.S. Federal Highway Administration;
• the Ontario Ministry of Transportation; and
• the Michigan Department of Transportation.

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 the Canadian bridge/plaza and Highway 401.

It is the partnership’s intention to seek a public-private partnership (P3) for the bridge and plaza portions of the project and a separate P3 for the highway connection on the Canadian side.

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 processing (e.g., a 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 a main bridge that will span the width of the Detroit River and will be designed to provide navigational clearances that meet U.S. and Canadian requirements. It will also include 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 constructing additional inspection or toll booths.

The plaza was developed in consultation with the Canada Border Services Agency and provides sufficient area for primary inspection lane booths and on-site secondary inspection of people and goods. The plaza also allows for dedicated NEXUS and FAST lanes, and provides for 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 a total area of 202 acres (72.8 hectares); a total of 29 inbound inspection lanes; a total of 103 secondary inspection parking spaces for commercial vehicles; nine toll collection lanes; and storm water management features to control the quality and quantity of run-off 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 with interchanges, grade separations, road closings and service roads. The connection includes a combination of below-grade, at-grade and above-grade segments, and 11 short-tunnelled (or covered) sections. The width of the right of way varies and, where possible, existing rights of way will be used. Along the corridor, the maximum width of the new right of way, not including the existing right of way, is approximately 300 metres.

Ontario reached financial close last year with the Windsor Essex Mobility Group to design, build, finance, operate and maintain the Windsor-Essex Parkway. Construction of the parkway officially began in August 2011. In Budget 2010, the Government of Canada committed to providing up to $1 billion to fund 50 per cent of this project’s eligible capital costs through the Gateways and Border Crossings Fund.

Rationale for the Project

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

• It accounts for $130 billion (2006 Canadian dollars) of two-way surface trade.
• It accounts for 28 per cent of total Canada-U.S. trade.
• It consists of four crossings: the Windsor-Detroit tunnel, the Ambassador Bridge, the truck ferry and the Canadian Pacific Railway tunnel.
• The Ambassador Bridge alone handles 99 per cent of Windsor-Detroit truck traffic.
• In recent years, there have been increased traffic delays due to heightened security checks at the Canada-U.S. border. Inefficiencies at the border crossing directly affect costs, limiting the ability of Canadian and American businesses to compete internationally.
• Traffic is expected to increase over the next 30 years.
  

Project Phase:

The Detroit River International Crossing bridge and customs plaza are in the initial planning 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. Construction started on the Windsor-Essex Parkway in August 2011.

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, Fisheries and Oceans Canada, Environment Canada

Prime and Major Subcontractor(s)

Prime Contractor

Deloitte 181 Bay Street, Suite 1100, Toronto ON  M5J 2V1 Direct telephone: 416-643-8382, Fax: 416-601-6690

Major Subcontractor(s)

Investment Grade Traffic and 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 Environmental Management Plan: Morrison Hershfield 3585 Graveley Street, Suite 610, Vancouver BC  V5K 5J5

Major Milestones

List of Major Milestone	Date
An environmental assessment was launched, with 15 options considered.	February 2005
Options were narrowed to three potential crossing locations, three potential plaza locations and five potential access road designs.	March 2006
The technically preferred Ontario access road was announced.	May 1, 2008
The technically and environmentally preferred alternative for the crossing and plaza locations was announced.	June 18, 2008
The U.S. Final Environmental Impact Statement was published for final comment.	December 5, 2008
The final Ontario Environmental Assessment Report was submitted to the Ontario Ministry of the Environment and the Canadian Environmental Assessment Final Screening Report was submitted to the Canadian Environmental Assessment Agency.	December 31, 2008
The U.S. Record of Decision was made public.	January 14, 2009
Ontario’s environmental assessment was approved.	August 24, 2009
The federal environmental assessment was approved.	December 3, 2009
Construction of the Windsor-Essex Parkway started.	August 18, 2011

Project Outcomes

The project is designed to achieve the following substantive objectives:

• provide new border crossing capacity to meet increased long-term international trade and travel demand;
• improve system connectivity to enhance the continuous flow of people and goods;
• improve operations and processing capabilities at the border; and
• provide alternative and secure crossing options (i.e., network redundancy) to mitigate the risks of any disruptions or blockages of crossing facilities in the region.

In pursuing the above objectives, the assessment and management of procurement options are to respect the following process objectives:

• provide a comprehensive and systematic approach to security, safety and emergency operations through the use of appropriate technology and processes;
• be consistent with the Government of Canada’s divestiture policy of a comprehensive risk transfer to an arm’s-length entity for financing, design, construction and operation of the crossing; and
• be financially self-sustaining (for capital, operating and maintenance costs) to the maximum extent possible so that the new crossing minimizes the need for public funds.

Progress Report and Explanations of Variances

• Initially, the Government of Canada approved $10 million in Team Funding for the Detroit River International Crossing in Budget 2007.
• The Government of Canada approved an additional $10 million in Team Funding for the Detroit River International Crossing in Budget 2010, from 2010-2011 to 2012-2013.
• In June 2008, Transport Canada received authority to enter into negotiations for real property for the Canadian half of the new international bridge and its Canadian customs plaza. Approval was also received for $200 million from the Gateways and Border Crossings Fund for the acquisition of the required properties.
• The Detroit River International Crossing is currently running under budget due to delays in property acquisition. Challenges with the negotiations with the industrial owners have caused Transport Canada to delay several utility relocation studies until the negotiations are further advanced. The Gateways and Border Crossings Fund funding has been extended until 2013-2014.
• It is too early to determine when the Detroit River International Crossing will be complete. It is estimated that the bridge will be operational five years after construction starts. Construction is currently at least two years away.
  

Industrial Benefits

The investment in new border infrastructure will have 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 since Statistics Canada has reported that the Windsor-Essex region has one of the highest unemployment rates in Canada. An increase in consumer spending is expected as an ancillary benefit of these jobs, as personal income and company profits improve in the region.

Additionally, the project will provide significant opportunities for local businesses to participate in construction and related work.

Transportation

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

Economy

Given the significant interdependence 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 and 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, using Ontario’s two-thirds attribution ratio, it is expected that approximately 15,000 total jobs will be created in the Windsor-Essex Region, contributing an estimated $587 million to the region’s GDP.

Security

The Canada-U.S. Bi-national Transportation Partnership is working with border inspection agencies in both countries to ensure that the proposed border processing facilities meet future travel demand and 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 (Canadian) 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.

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