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Table : Status Report on Major Crown/Transformational Projects
For Fiscal Year 2009-2010
Table of Contents
- AIRLIFT CAPABILITY PROJECT – STRATEGIC (ACP-S))
- AIRLIFT CAPABILITY PROJECT – TACTICAL (ACP-T) )
- ARCTIC/OFFSHORE PATROL SHIP (AOPS))
- ARMOURED PERSONNEL CARRIERS (APC))
- CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM (CCMP) OMNIBUS PROJECT)
- CANADIAN FORCES SUPPLY SYSTEM UPGRADE (CFSSU))
- CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER (CFUTTH) PROJECT)
- CANADIAN SEARCH AND RESCUE HELICOPTER (CSH) PROJECT)
- FIXED-WING SEARCH AND RESCUE (FWSAR))
- HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION (HCM/FELEX))
- INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE (ISTAR))
- JOINT SUPPORT SHIP (JSS))
- LIGHT UTILITY VEHICLE WHEELED (LUVW))
- LIGHTWEIGHT TOWED HOWITZER (LWTH))
- MAIN BATTLE TANK (MBT))
- MARITIME HELICOPTER PROJECT (MHP))
- MATERIAL ACQUISITION AND SUPPORT INFORMATION SYSTEM (MASIS))
- MEDIUM-TO-HEAVY-LIFT HELICOPTER (MHLH))
- MEDIUM SUPPORT VEHICLE SYSTEM PROJECT (MSVS))
- MILITARY AUTOMATED AIR TRAFFIC SYSTEM (MAATS) PROJECT)
- PROTECTED MILITARY SATELLITE COMMUNICATIONS (PMSC))
- SUBMARINE CAPABILITY LIFE EXTENSION(SCLE))
- WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION (WLAV-LE) 52)
Airlift Capability Project – Strategic (ACP-S)
Description:
The objective of the Airlift Capability Project - Strategic is to acquire four new aircraft that will provide the Canadian Forces (CF) with the global reach and speed necessary to operate effectively over long distances, as well as to deliver personnel and cargo directly into a theatre of operation, including threat environments.
Project Phase:
Project Implementation: All four aircraft have been accepted on schedule and project close-out is expected for Summer 2012.
| Lead Department | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada |
| Participating Departments | Industry Canada and its regional agencies |
| Prime Contractor | The Boeing Company, St-Louis, Missouri, USA |
|---|---|
| Major Subcontractor(s) |
| Major Milestone | Date |
|---|---|
| Synopsis Sheet (Effective Project Approval) (EPA) | June 2006 |
| Advanced Contract Award Notice Posted on MERX | July 2006 |
| Contract Award | February 2007 |
| Delivery First Aircraft | August 2007 |
| Delivery Second Aircraft | October 2007 |
| Delivery Third Aircraft | March 2008 |
| Delivery Fourth Aircraft | April 2008 |
| Initial Operational Capability (IOC) | October 2008 |
| Full Operational Capability (FOC) | Spring 2012 |
| Project Close-Out | Summer 2012 |
Progress Report and Explanations of Variances:
All four aircraft have been accepted on schedule and the fleet has flown in excess of 8,000 flying hours. The project office is currently working on the Implementation Phase of the project. Full Operational Capability (FOC) will be spring 2012 when the infrastructure at Trenton is completed and the Squadron can sustain all Lines of Tasking and all planned mission types as stated in the Statement of Operational Requirement (SOR). The project will close-out after FOC.
Industrial and Regional Benefits (IRBs):
IRBs are equivalent to 100% of the acquisition contract, Boeing's share of the in-service support Foreign Military Sales (FMS) contract value and the value of the engines. (A separate IRB agreement was negotiated with Pratt and Whitney USA for the value of the C-17 engines). The three IRB agreements total $1.9 billion. Several IRB announcements have been made and all regions of Canada are benefiting from these contracts.
Airlift Capability Project – Tactical (ACP-T)
Description:
The objective of the Airlift Capability Project - Tactical is to ensure a continued tactical airlift capability. This project will replace the CF's aging CC-130E Hercules fleet. It will also provide the CF with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.
Project Phase:
Project Implementation: The project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 C-130J-30 aircraft. Contract Amendments for In-Service Support (ISS) and Maintainer Training were awarded December 2009 and February 2010 respectively. Aircraft deliveries will commence in June 2010, with the final aircraft delivered no later than August 2012.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada |
| Industrial Regional Benefits Authority | Industry Canada |
| Participating Agencies | The Regional Development Agencies |
| Prime Contractor | Lockheed Martin (LM) Corporation, Marietta, Georgia, USA |
|---|---|
| ISS Sub-Contractor | Cascade Aerospace, Abbotsford, British Columbia, Canada |
| ISS Sub-Contractor | IMP Aerospace, Enfield, Nova Scotia, Canada |
| ISS Sub-Contractor | CAE, Montreal, Quebec, Canada |
| ISS Sub-Contractor | Standard Aero, Winnipeg, Manitoba, Canada |
| ISS Sub-Contractor | HAAS Group, Oshawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Revised Preliminary Project Approval (Rev(PPA)) | June 2006 |
| Solicitation of Interest and Qualification (SOIQ) | August 2006 |
| Issue of Request For Proposal (RFP) | August 2007 |
| Effective Project Approval (EPA) | December 2007 |
| Contract Award | December 2007 |
| First Aircraft Delivery | June 2010 |
| Initial Operational Capability (IOC) | Fall 2011 |
| Full Operational Capability (FOC) | Winter 2013/2014 |
| Project Close-Out | Spring 2014 |
Progress Report and Explanations of Variances:
Canada’s first aircraft will arrive in Canada in June 2010, six months ahead of its original scheduled delivery date. By the end of 2010, Canada expects to have received five aircraft. During 2011, eight aircraft are scheduled for delivery and by August 2012, the remaining four aircraft will have been delivered.
With the recent Contract Amendments, and in conjunction with the infrastructure upgrades at the aircraft’s Main Operating Base in Trenton, Ontario, the support systems are progressively being established to accommodate the new fleet as it is delivered.
The ACP-T project is currently running on schedule and within budget.
Industrial and Regional Benefits:
Lockheed Martin Corporation has committed to provide IRBs equivalent to 100% of the eligible contracted value for both the capital acquisition and the in-service support portions, including a 15% requirement for the participation of small and medium business. For the in-service support portion, 75% of the eligible contract value will consist of direct work performed by Canadian companies on these and similar aircraft in international fleets (Global Value Chain). The IRB requirements are administered by Industry Canada, through PWGSC, for the duration of the contract and any amendments.
Arctic/Offshore Patrol Ship (AOPS)
Description:
The Arctic/Offshore Patrol Ship (AOPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to demonstrate sovereignty in Canada's waters, including the Arctic. When the project is complete, the six to eight fully supported AOPS delivered to the CF will be capable of:
- Conducting armed, sea-borne surveillance of Canada's waters, including the Arctic;
- Providing to Government situational awareness of activities and events in these regions; and
- Cooperating with other elements of the CF and other Federal Government departments to demonstrate Canadian sovereignty, when and where necessary.
Project Phase:
Definition
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada |
| Industrial Regional Benefits Authority | Industry Canada and the regional agencies |
Prime and Major Subcontractor(s)
AOPS procurement is expected to proceed with the National Shipbuilding Procurement Strategy (NSPS). The procurement approach has been revised to support draft RFP release as early as Aug 2010 but when the NSPS procurement activity allows. AOPS is an important part of the Government’s shipbuilding strategy, which will create the conditions for the effective and efficient delivery and support of the federal fleet over the long term. The procurement process for these ships is being reviewed to accommodate long-term shipbuilding options that could be considered by Government. Delivery of the first AOPS is expected in 2014 with Initial Operational Capability in 2015.
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval (PPA) | May 2007 |
| Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP) |
December 2007 |
| DELMS RFP Close | February 2008 |
| DELMS Contract Award | May 2008 |
| Effective Project Approval (EPA) | TBD |
| Award of Implementation Contract | TBD |
| Delivery of First Ship | TBD |
| Initial Operating Capability (IOC) of First Ship | TBD |
| Project Complete | TBD |
Progress Report and Explanations of Variances:
The project continues to progress steadily since obtaining Preliminary Project Approval (PPA) in May 2007. Treasury Board Secretariat (TBS) granted expenditure authority of $42.8 million (budget year ($BY), full up excluding GST or HST, for Definition Phase. TBS also acknowledged the indicative full up cost of $3,067.4 million ($BY) full-up excluding GST or HST, for Implementation Phase (design build). The AOPS project is currently running on budget. AOPS is expanding on the Definition Phase to produce a design that will meet the requirements, and can be used by the contractor.
Industrial and Regional Benefits:
IRBs for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.
Armoured Personnel Carriers (APC)
Description:
The Armoured Personnel Carrier (APC) is essential for all foreseeable CF roles, including territorial defence, United Nations (UN) peacekeeping and peace enforcement operations, other international commitments, and aid of the civil power. The existing APC fleet did not meet the minimum operational requirements when compared to the modern, technically sophisticated weapons and vehicles Canadian soldiers encounter during operations. They suffered shortcomings in protection, self-defence capability, mobility, carrying capacity and growth potential. The APC project fielded a fleet of modern, wheeled, armoured personnel carriers. 651 Armoured Vehicles (LAV) III were procured in six configurations: Infantry Section Carrier, Command Post, Engineer, Forward Observation Officer, TOW (Tube Launched, Optically Tracked, and Wire Guided) Under Armour, and LAV III Less Kits.
Project Phase:
Project Implementation: All vehicles were delivered by October 2007 and construction activities for indoor accommodation are well under way. The project is scheduled for completion in March 2012.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada |
| Industrial Regional Benefits Authority | Industry Canada and the regional agencies |
| Prime Contractor | General Dynamics Land Systems, London, Ontario, Canada |
|---|
| Major Milestone | Date |
|---|---|
| Treasury Board Approval | December 1995 |
| Contract Award | December 1996 |
| First Vehicle Delivery | July 1998 |
| Exercise of First Option | July 1998 |
| Exercise of Second Option | July 1999 |
| Exercise of Third Option | July 1999 |
| Last Vehicle Delivery | October 2007 |
| Project Completed | March 2012 |
Progress Report and Explanations of Variances:
In August 1995, the Government approved, in principle, the procurement of up to 651 APCs. In January 1997, the Government announced the award of a contract to General Dynamics Land Systems - Canada (GDLS-C) to build 240 new eight-wheel-drive APCs. The contract contained three options for an additional 120, 120 and 171 APCs respectively. All three options have been exercised. All vehicles were delivered by October 2007.
The vehicles have been involved in significant operational demands after being fielded and have performed well. They have since undergone a number of modifications to adjust to the modern threat, and will require additional work to optimize their performance against these threats. A separate project has been launched to address this issue.
In March 2004, TBS authorized $129 million for indoor accommodation of the LAV III to facilitate regular maintenance and training programs, and prevent any deterioration that would result from outdoor storage. Construction of these accommodations is complete in Wainwright and well underway in both Gagetown and Montreal. Construction will start in Petawawa this year and in Valcartier next year. Construction activities are scheduled for completion in early 2012. The project can then close in March 2012.
Industrial and Regional Benefits:
This project includes the following overall industrial benefits, and regional and small business achievements:
| Content | Benefits |
|---|---|
| Direct | $852.9M |
| Indirect | $742.9M |
| Total | $1,595.8M |
| Regional and Small Business Benefits | |
| Atlantic Canada | $151.4M |
| Quebec | $150.6M |
| Western Canada | $155.0M |
| Small Business | $210.3M |
Canadian Cryptographic Modernization Program (CCMP) Omnibus Project
Description:
The Canadian Cryptographic Modernization Program (CCMP) is a 12-year program (fiscal year 2004-05 to 2015-16) that will modernize the Government of Canada’s aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada’s ability to establish secure communications both nationally and internationally.
The CCMP Omnibus Project includes the following sub-projects:
- Secure Voice / Telephone Re-key Infrastructure
- Secure Voice / Telephone Replacement
- Classified Security Management Infrastructure
- Combat Identification Replacement
- Link Encryption Replacement
- Network Encryption Replacement
- Secure Radio Replacement
- Secure Mobile Environment
Project Phase:
This is an Omnibus Project; some sub-projects are in the Definition phase and others are in the Implementation phase.
| Lead Department | Communications Security Establishment Canada (CSEC) |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Government of Canada departments and agencies using cryptographic equipment to protect classified information |
| Prime Contractor | N/A |
|---|---|
| Major Sub-Contractors | Various allied manufacturers of cryptographic equipment |
| Project / Sub-project Major Milestones | Date |
|---|---|
| Preliminary Project Approval for the CCMP Omnibus Project | March 2005 |
| Preliminary Project Approval for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure | November 2006 |
| Secure Voice/Telephone Re-key Infrastructure – Completed | September 2009 |
| Classified Security Management Infrastructure – Phase 1B Completed | 2011 |
| Secure Voice/Telephone Replacement – Completed | 2011 |
| Classified Security Management Infrastructure – Phase 1A Completed | 2012 |
| Secure Mobile Environment – Completed | 2012 |
| Link Encryption – Completed | 2013 |
| Classified Security Management Infrastructure – Phase 2 Completed | 2014 |
| Network Encryption Replacement – Completed | 2014 |
| Classified Security Management Infrastructure – Phase 3 Completed | 2016 |
| Combat Identification (Identification Friend or Foe) Replacement Completed | 2016 |
| Secure Radio Replacement – Completed | 2016 |
| CCMP Omnibus Project – Project Close-out | 2016 |
Progress Report and Explanations of Variances:
Fiscal year 2009-10 was the sixth year of this 12-year program. The CCMP is executing within budget.
In March 2005, Treasury Board granted Preliminary Project Approval to the CCMP Omnibus Project at an estimated full-up cost of $893.8M with expenditure authority for the project definition phases and management of the program at a substantive full-up cost estimate of $80M.
In November 2006, Treasury Board granted Preliminary Project Approval to the Classified Security Management Infrastructure project at an estimated full-up cost of $182M with expenditure authority for the implementation of Phase 1A at a substantive full-up cost estimate of $31M.
In February 2008, the Secretary to the Treasury Board granted expenditure authority for a subsequent phase of the CSMI project; i.e., implementation of Phase 1B at a substantive full-up cost estimate of $12M, and definition of Phase 2 at a substantive full-up cost estimate of $3M.
The following completion dates have changed from those recorded in the CCMP Omnibus Project PPA approved in March 2005.
Secure Voice Re-key Infrastructure close-out was moved to September 2009 in order to incorporate stronger security for re-keying new secure phones. This sub-project achieved Initial Operational Capability in December 2006 and Full Operational Capability in June 2009. This is the first sub-project under the CCMP umbrella to reach completion.
Secure Voice/Telephone Replacement close-out was moved to December 2011 in order to coordinate software upgrades needed by the new secure phones for interoperability and improved information protection. As of March 2010, no STU-III secure phones remain in use in the Government of Canada.
Classified Security Management Infrastructure Phase 1 completion was moved from 2008 to 2012. Phase 1 was divided into Phase 1A and 1B to reduce the complexity of managing the project.
Combat Identification (Identification Friend or Foe) Replacement completion was moved from 2010 to 2016 due to changes in the US program schedule.
Classified Security Management Infrastructure Phase 2 close-out was moved from 2011 to 2014 due to delays in the US Key Management Infrastructure program.
Link Encryption Replacement completion will occur ahead of schedule in 2013. The first three milestones have been met. Eighty percent of the GC link encryption devices, which encrypt information during transmission between two points, have been replaced.
Network Encryption Replacement completion was moved from 2011 to 2014 to align with the implementation schedule in DND.
Secure Mobile Environment is a new crypto family that was added to the CCMP in June 2007. Handheld wireless devices designed to handle classified information are currently being tested and evaluated.
Industrial and Regional Benefits:
There are no IRBs associated with this project.
Canadian Forces Supply System Upgrade (CFSSU)
Description:
The Canadian Forces Supply System Upgrade (CFSSU) project will meet the future supply requirements of the Canadian Forces (CF) during all operational situations while effectively and economically managing Defence's inventory. The system will have an inherent flexibility to manage changes in force structure, size and type of mission. The CFSSU project will employ information technology to modernize CF military supply operations. Not only will this technology dramatically improve productivity, it will also enhance the capability for performance measurement, greatly increase asset visibility, and provide a powerful management tool for provisioning. Additionally, the new supply system will have a deployed capability. The deployed solution is complementing the existing September 2001 corporate implementation to Bases and Wings, as well as the November 2002 implementation, which include all remaining CFSS users, at home and overseas.
Project Phase:
Close-Out. CFSSU has been deployed on 17 ships as well as at two sites for Canadian Special Operations Forces Command (CANSOFCOM).
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | EDS Canada Inc., Ottawa, Ontario, Canada |
|---|---|
| Major Sub-Contractors | Mincom Pty. Ltd., Brisbane, Queensland, Australia ADGA Group, Ottawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Contract Award | January 1995 |
| Initial Site Installation | December 1995 |
| Warehouse Management Information System Delivery | July 1997 |
| Test Development Centre Delivery | October 1999 |
| Commence System Development | November 1999 |
| Complete System Development | March 2001 |
| Commence System Pilot | June 2001 |
| Complete System Pilot | August 2001 |
| Commence System Rollout | September 2001 |
| Complete System Rollout | June 2003 (official acceptance) |
| Project Close-Out (E Status) | September 2004 |
| Project Close-Out (I Status) | Spring 2010 |
Progress Report and Explanations of Variances:
TBS initially approved the CFSSU project with an estimated cost of $292.4 million. TBS approved in April 2000, the de-scoping of certain functionality and an increase of $9.8 million to project contingency funding. In addition, $5 million was approved in order to permit Defence the option of restoring the Distribution Resource Planning (DRP) component. The Implementation Phase of DRP was de-scoped and the project budget remained at $304.1 million.
The CFSSU project has been transferred from implementation to close-out in September 2004. Close-out funding is $3.6 million. In March 2006, the Defence Program Management Board approved the usage of close-out funds for the project; these funds are to be used until fully expended or the work is completed. This project is closed and all close-out funds and related activities have ended as of the end of fiscal year 2009-10.
Industrial and Regional Benefits:
This project includes the following overall IRBs:
| Region | Benefits |
|---|---|
| Atlantic Canada | $51M |
| Qu�bec | $45M |
| Ontario | $26M |
| Western Canada | $105M |
| Unallocated | $10M |
| Total | $240M |
Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project
Description:
The purpose of the Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project is to acquire helicopters in support of national and international tactical aviation roles. The project supports the Land Forces, Aerospace Forces, Canadian Expeditionary Force Command (CEFCOM) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. It has replaced three aging helicopter fleets - the CH118 Iroquois, the CH135 Twin Huey and the CH136 Kiowa. The Bell 412CF/CH146 was procured as a single role multi-mission helicopter capable of supporting a majority of the tasks previously undertaken by the fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements to include: the tactical lift of troops; logistical lift; reconnaissance and surveillance; direction and control of fire; aero-medical support; casualty evacuation; command and liaison, and communications assistance. These mission capabilities are employed in support of Defence operational commitments, UN peacekeeping missions, and support to other Government Departments and Agencies, including aid of the civil power.
Project Phase:
Implementation. The project has delivered 100 Bell 412CF/CH146 Griffons, a flight simulator, composite maintenance trainer, facilities, mission kits (including defence electronic warfare suites), as well as other equipment, documentation and services. It is scheduled for completion in fiscal year 2010-11.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | Bell Helicopter Textron, Mirabel, Qu�bec, Canada |
|---|---|
| Major Sub-Contractors | Pratt and Whitney, Montr�al, Qu�bec, Canada BAE Systems Canada Inc., Montr�al, Qu�bec, Canada CAE Ltd., Montr�al, Qu�bec, Canada |
| Major Milestone | Date |
|---|---|
| Contract Award | September 1992 |
| Critical Design Review | April 1993 |
| First Helicopter Delivery | March 1995 |
| Simulator Acceptance | June 1996 |
| Last Helicopter Delivery | December 1997 |
| Project Completion | Fiscal Year 2010-11 |
Progress Report and Explanations of Variances:
This project received Government approval in April 1992 and Treasury Board Secretariat (TBS) approval in September 1992, with an original budget of $1.293 billion. Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in fiscal year 2010-11 for approximately $200 million less than the initial TBS budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver (RLWR) functionality.
Industrial and Regional Benefits:
To date, Bell Helicopter has claimed $289.5 million direct and $252.1 million indirect IRBs, totaling $541.6 million, representing 107% of the overall commitment. Bell Helicopter Textron Canada has committed to achieving $506.7 million in Canadian value-added industrial regional benefits as follows:
| Region | Benefits |
|---|---|
| East | $10.0M |
| Qu�bec | $420.2M |
| Ontario | $32.1M |
| West | $12.0M |
| Unallocated | $32.4M |
| Total | $506.7M |
Canadian Search and Rescue Helicopter (CSH) Project
Description:
Maintaining a national search and rescue capability is a direct departmental objective. The purpose of the Canadian Search and Rescue Helicopter (CSH) project was to replace the CH-113 Labradors with a fleet of 15 new helicopters. The new helicopters have addressed the operational deficiencies of the CH-113 Labrador fleet and eliminated the supportability difficulties of the older airframes. Given expected aircraft availability rates and a sufficient fleet size, continuous operations are anticipated well into the 21st century.
Project Phase:
Completed. As of July 2003, all 15 Cormorant helicopters have been delivered. Spare parts and infrastructure are in place to support operations. Initial training is complete. Effective Project Closure was achieved in September 2004, but some work is still ongoing and full completion is not expected before 2013.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | Agusta Westland International Limited (formerly European Helicopters Industries Ltd. (EHI)), Farnborough, UK |
|---|---|
| Major Sub-Contractors | Westland Helicopters, Yeovil, UK Agusta Spa, Cascina Costa, Italy General Electric Canada Inc., Mississauga, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Treasury Board Effective Project Approval (EPA) | April 1998 |
| Contract Award | April 1998 |
| First Aircraft Delivery (at plant in Italy) | September 2001 |
| Final Aircraft Delivery (at plant in Italy) | July 2003 |
| Project Completion (Effective Project Completion | September 2004 |
| Expected Project Closure | 2013 |
Progress Report and Explanations of Variances:
The project has procured the required aircraft spares, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for the four CF search and rescue bases. The project has also established and funded the first two years of an in-service support contractor for follow-on support.
The Cormorant has been operational at the squadrons in Comox, BC, Gander, NL, Greenwood, NS and Trenton, ON. However, CH149 operations at 424 Squadron in Trenton have been suspended temporarily due to the lack of aircraft availability and difficulty in maintaining adequate aircrew training.
It should be noted that although Effective Project Closure was achieved in September 2004, some work is still ongoing and full completion is not expected before 2013. The milestones still outstanding are tied to a three year Technical Publication Revision Service which is not expected to begin until fiscal year 2010-11, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least an additional year to address.
Industrial and Regional Benefits:
The contractor (AWIL) committed to providing direct and indirect industrial benefits valued at $629.8 million, within eight years from the date the contract was awarded. It is estimated that these benefits created or sustained roughly 5,000 person-years of employment in Canada, and that all regions of Canada benefited from this project. The contractor has completed its obligations to Canada in regards to IRBs under the CSH contract. Small businesses in Canada will also benefit from the project by the placing of $67.0 million in orders.
| Region | Benefits |
|---|---|
| Atlantic Canada | $43.1M |
| Qu�bec | $317.7M |
| Ontario | $146.5M |
| Western Canada | $86.2M |
| Unallocated | $36.3M |
| Total | $629.8M |
FIXED-WING SEARCH AND RESCUE (FWSAR)
Description:
Fixed-wing SAR aircraft are needed to provide immediate assistance to distress cases within the 18 million square kilometre Canadian SAR area of responsibility. Search and rescue activities are extremely demanding on the CF and their equipment. The Canadian Forces currently uses a mixed fleet of Buffalo and Hercules aircraft to provide FWSAR service to Canadians. The purpose of this project is to replace the CC-115 Buffalo and CC-130 Hercules currently providing the fixed-wing SAR capability from four Main Operating Bases with a fleet of new aircraft.
This replacement project will resolve deteriorating supportability and affordability issues associated with the older airframes, allowing for the continued provision of effective fixed-wing response and immediate assistance to SAR incidents within the Canadian SAR area of responsibility.
Project Phase:
Definition. The FWSAR Major Crown Project will enter the project definition phase as soon as Preliminary Project Approval (PPA) is received from Treasury Board.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada |
| Prime Contractor | TBD |
|---|
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval (PPA) | Fall 2010 |
| Effective Project Approval (EPA) | Fall 2011 |
| Contract Award | Spring 2012 |
| First Aircraft Delivery | Spring 2015 |
| Last Aircraft Delivery | Spring 2017 |
| Project Closure | Spring 2019 |
Progress Report and Explanations of Variances:
The Definition Phase of the FWSAR project will start as soon as Preliminary Project Approval is received from the Treasury Board.
Industrial and Regional Benefits:
Maximum Industrial Regional Benefits (IRB) will be sought for this project and details will soon be determined by the Government stakeholders.
HALIFAX Class Modernization/Frigate Life Extension (HCM/FELEX)
Description:
The HCM/FELEX project is the principal component of the overall HALIFAX Class Modernization (HCM) initiative. The project will plan and manage HALIFAX Class mid-life refits, acquire the major elements of the new combat system, and deliver stability enhancements, degaussing improvements and a Commander Task Group capability in four ships. As the Design Integration Authority for the HCM, Project Manager (PM) HCM/FELEX is responsible for the ship level design integration of all elements of the HCM including any unique/specific engineering changes required to address integration requirements. To ensure that the overall modernization initiative is achieved in a timely, efficient and coordinated manner, the HCM/FELEX project will conduct overall design integration, coordinate schedules, manage inter-project risk, and manage equipment installation during the mid-life refits. Major equipment acquisitions through HCM/FELEX will include a modernized Command and Control System, Multi-Link, Identification Friend or Foe Mode S/5, upgrades to the radars, new Electronic Support Measures System, upgrades to the Internal Communications system, and an upgraded Harpoon Weapon System. These acquisitions will both sustain current capability and contribute to the new littoral operations role of the HALIFAX Class.
Project Phase:
Implementation. Implementation of the HCM/FELEX project will occur through three principal contracts: two Multi-Ship Contracts (MSC) for docking work periods/refits and one Combat System Integration contract to develop, procure and install the majority of the combat system elements of the project. Project completion is expected by January 2019.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| In-Service Support Contractor (Class Design Agent | Fleetway Incorporated, Halifax, Nova Scotia, Canada |
|---|---|
| Internal Communications System | DRS Flight Safety, Kanata, Ontario, Canada |
| Multi-Ship Contract (East) | Halifax Shipyard, Halifax, Nova Scotia, Canada |
| Multi-Ship Contract (West) | Victoria Shipyard, Victoria, British Columbia, Canada |
| Combat System Integration Contract | Lockheed Martin Canada, Montr�al, Qu�bec, Canada |
| Harpoon/Advanced Harpoon Weapons Control System (AHWCS) | The Boeing Company, St-Louis, Missouri, USA |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval (PPA) | February 2005 (FELEX) February 2007 (HCM/FELEX |
| Refit Procurement Strategy Approval by Treasury Board Secretariat | March 2007 |
| Revised Preliminary Project Approval (Rev(PPA)) (Part 1) | June 2007 |
| Multi-Ship Contracts (MSC) Awarded (Docking Work Periods and Refits) | March 2008 (West) March 2008 (East) |
| Effective Project Approval (EPA) Approval (Part 2) | September 2008 |
| Combat System Integration Contract Award | November 2008 |
| Refits Begin | October 2010 |
| Full Operational Capability (FOC) | January 2018 |
| Project Closure | January 2019 |
Project Outcomes:
Complete the HALIFAX Class mid-life refits returning the ships to an acceptable material state for the second half of their service lives.
Return all 12 ships to the Operational Authority within Maritime Command by the end of January 2018 having delivered the full operational capability described in the HCM/FELEX Statement of Operational Requirements including:
- all HCM/FELEX ship and combat system enhancements installed and integrated into the ships;
- integration into the combat system of capability enhancements being delivered by other HALIFAX Class modernization projects;
- both Fleet Maintenance Facilities capable of supporting the modernized HALIFAX Class ships;
- all test equipment and special tools required to support HALIFAX Class ships delivered;
- all spares required to support HALIFAX Class ships delivered;
- all trainer modifications complete; and
- all required training completed.
Progress Report and Explanations of Variances:
In September 2008, Treasury Board Secretariat (TBS) granted EPA and Expenditure Authority for the project. The total full-up project value, including GST, is $2,988 million ($BY).
An RFP for the Multi-Ship Contracts (docking work periods and refits) resulted in two successful bidders, Halifax Shipyard on the east coast and Washington Marine Group (Victoria Shipyard) on the west coast. Contracts were awarded to the two shipyards in March 2008. The Combat System Integration contract was awarded to Lockheed Martin Canada in November 2008.
The HCM/FELEX project is presently in its Implementation Phase and is currently on schedule and within budget.
Industrial and Regional Benefits:
IRBs for this project are equivalent to 100% of the contracted value.
Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)
Description:
ISTAR is an omnibus project that received TBS approval for Definition Phase activity in April 2003. The purpose of this project is to develop, deliver and evolve an integrated, interoperable, ISTAR capability that will improve the ability of commanders to visualize the operational area, manage sensors and information collection resources, and to plan and implement actions to successfully complete operational missions. The project will provide enhancements to existing capabilities and include the acquisition of new capabilities in the areas of communications, command and control and sensors.
Project Phase:
Implementation. In support of operations the project delivered equipment in the areas of Command and Control, Unmanned Aerial Vehicles, Weapons Locating Sensors and Electronic Warfare capabilities.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales (FMS) |
US Army, USA |
|---|---|
| Light Weight Counter Mortar Radars (LCMR) - Foreign Military Sales (FMS) | US Army, USA |
| Remote Viewing Terminal Unforecasted Operational Requirement (UOR) | L3 Communications, CSW, Salt Lake City, Utah, USA |
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval (PPA) | April 2003 |
| Minister of National Defence (MND) Approval TUAV UOR | May 2003 |
| Treasury Board Project Approval in Arrears TUAV UOR Full Operational Capability (FOC) Sub-Project Close-Out |
May 2005 December 2005 June 2009 |
| Beyond Line of Sight Communication Effective Project Approval (EPA) Initial Operational Capability (IOC) Full Operational Capability (FOC) Project Close-Out |
November 2005 July 2006 February 2010 March 2010 |
| Communications & Data Link Component Treasury Board Effective Project Approval (EPA) Initial Operational Capability (IOC) Full Operational Capability (FOC) |
December 2006 October 2009 December 2011 |
| Command and Control (C2) Treasury Board Effective Project Approval (EPA) Initial Operational Capability (IOC) Full Operational Capability (FOC) |
February 2008 July 2010 December 2011 |
| EW Sensors Treasury Board Effective Project Approval (EPA) Amendment 1 (AL 1) Initial Operational Capability (IOC) Full Operational Capability (FOC) |
November 2005 February 2008 March 2008 January 2013 |
| In-Service Sensors Enhancement Treasury Board Effective Project Approval (EPA) | March 2011 |
| Medium Range Radar Treasury Board Effective Project Approval (EPA | March 2011 |
| WLS Acoustic Sensor Effective Project Approval (EPA) Initial Operation Capability (IOC) Full Operational Capability (FOC) Project Close-Out |
November 2005 March 2008 November 2009 March 2010 |
| Family of UAV Treasury Board Effective Project Approval (EPA) for UOR Family of Mini UAV Treasury Board Effective Project Approval (EPA) for AL 1 |
November 2005 December 2010 |
| Light Weight Counter Mortar Radar Effective Project Approval (EPA) Initial Operation Capability (IOC) Full Operational Capability (FOC) |
March 2007 March 2008 July 2011 |
| Deliveries Complete all ISTAR sub-projects | September 2013 |
| Project Completion | March 2014 |
Progress Report and Explanations of Variances:
Prosecuting the UOR continues to challenge the omnibus project delivery. However, current estimates are that the project will be complete in 2013 as per the schedule contained in the PPA submission approved by TBS in December 2006. National Procurement funding requirements are being identified in the EPA documentation for each of the ten sub-projects. EPAs have been received for all but three of the LF ISTAR sub-projects. Delivery of equipment actually started with UORs in Op ATHENA, and final deliveries are scheduled out to 2013.
The Tactical Unmanned Aerial Vehicle project was closed in June 2009 and the Acoustic Weapon Locating System and Beyond Line Of Sight communication sub-projects closed in March 2010.
Industrial and Regional Benefits:
The benefit to Canadian industry from the ISTAR project continues to be determined during the approval of the procurement strategy for each sub-project. Canadian industry has derived long-term benefits from many aspects of the ISTAR project through the establishment of long-term in-service support contracts with Canadian industry.
Joint Support Ship (JSS)
Description:
The JSS will maintain the maritime staff's current naval task group logistic support, while ensuring that the CF has an adequate capability to allow it to deploy and sustain operations in support of government policy. It will also enhance Canada's capability for joint command and control of forces ashore. The ships will replace the two aging Protecteur class support ships currently in service on the east and west coast.
Project Phase:
Definition.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval (EPA). |
| Major Milestone | Date |
|---|---|
| Options Analysis | Completed Fall 2009 |
| Treasury Board Approval (Forecast) - Revised Preliminary Project Approval - (PPA) | June 2010 |
| Project Definition Phase Re-commences | Summer 2010 |
| Project Definition Phase Complete | Fall 2012 |
Progress Report and Explanations of Variances:
In August 2008, the Minister of Public Works and Government Services Canada announced the termination of the initial procurement process to acquire three Joint Support Ships.
After receiving and evaluating the mandatory requirements for the Joint Support Ship project from the bidders, the Crown has determined that both proposals were not compliant with the basic terms of the Request for Proposal (RFP). Among other non-compliances, both bids were significantly over the established budget.
During the August 2008 to September 2009 timeframe, the Project Office conducted Options Analysis that examined cost versus capability of various options. Work continues on a recommended course of action for the JSS project with the aim of achieving revised PPA from TB by June 2010.
Industrial and Regional Benefits:
IRBs for this project are equivalent to 100% of the contracted value for both the capital acquisition and in-service support.
Light Utility Vehicle Wheeled (LUVW)
Description:
Light utility vehicles are highly mobile and essential to facilitating the tactical command of combat, combat support and combat service support units, to assist in the gathering and dissemination of information and to liaise within and between field formations.
The LUVW project mandate is to replace Canadian Iltis vehicles with two separate vehicle acquisitions: 1,159 Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and 170 Armour Protection Systems ($241.4 million), for use by field force units; and 1,061 Militarized Commercial Off-the-Shelf (Mil COTS) vehicles (GM Silverado) ($65.4 million) for use primarily by the Reserve Force for a total project cost of $306.8 million.
Project Phase:
Implementation.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor (Phase 1) SMP) | Mercedes-Benz Canada (MBC), Toronto, Ontario, Canada |
|---|---|
| Prime Contractor (Phase 2) Mil-COTS | General Motors Defense Military Trucks, Troy, Michigan, USA |
| Major Milestone | Date |
|---|---|
| Major Milestone (Phase 1) SMP | October 2003 |
| First Full Production Delivery | February 2004 |
| Final Production Delivery | November 2006 |
| Project Close-Out | June 2010 |
| Major Milestone (Phase 2) Mil COTS | Date |
| Award of Contract | October 2002 |
| First Full Production Delivery | October 2003 |
| Final Production Delivery | December 2004 |
| Project Close-Out | June 2010 |
Progress Report and Explanations of Variances:
The project is in full Implementation. Outstanding issues are Amendment 2 to the SMP production contract and installation of the Mil COTS battery disconnect switch. The amendment to the SMP production contract is required to reflect the costs resulting from Design Change Requests (DCRs), as well as additional Integrated Logistic Support (ILS) publication requirements.
For the Mil COTS battery, a contract valued at $1.71 million (including GST) was awarded to Kerr Industries in July 2008 for the delivery of 1,061 battery disconnect switch kits. These kits are required to isolate the electrical system and associated parasitic loads from draining the batteries when the vehicles are not in use. Installations are on going by local General Motors Corporation (GMC) dealerships. The contract has been amended to extend closure date to 30 June 2010 without any additional funding required.
For the SMP production contract, a total of $19.6 million has been applied as holdbacks, which equate to 10% of all paid invoices. It is anticipated that the amendment will be completed and signed by June 2010, at which time these funds can be released.
An Initial Support Contract (ISC) (valued at $17.9 million including GST) was awarded to Mercedes Benz Canada (MBC) in November 2005 to provide spares, repair and overhaul, lease of diagnostic equipment, support and engineering services, and 4th line vehicle repair, with the last (3rd) year option exercised in October 2007. This contract was amended (value increased by $0.77 million) and extended to June 2009 at which time a new "bridging" ISC contract was awarded to MBC in June 2009 (valued at $9.3 million including GST) to allow continued support of the LUVW SMP fleet. A new support contract was awarded to MBC in April 2010. The contract is valued at $35.1 million (including GST) over the next four years with a provision for three optional one-year extensions.
A contract valued at $1.87 million (including GST) for Special Tools and Test Equipment (STTE) was awarded to MBC in November 2008. Delivery for STTE has been completed as planned in September 2009. All spares deliveries were received by March 2010. The Project Management Office (PMO) is now working on certifying that Full Operational Capability (FOC) has been reached and on the close-out process to meet the schedule for project closure on 30 June 2010.
Even with the above mentioned changes, the project is scheduled to close under the allocated funding of $298.4 million. The vehicle fleet has been affected by body cracks and inferior weapons station design and quality issues. To resolve the cracks issue, an agreement was reached with MBC to fix existing cracks, as well as vehicles at risk of developing future cracks. MBC has provided an improved weapons station to address the deficiencies; the solution was implemented in 2009 on a portion of the fleet.
Industrial and Regional Benefits:
The industrial benefits required for Phase 1 were valued at 100% of the contract value. The latest report from Industry Canada indicates that MBC has exceeded the industrial regional benefit goals by $300 million. There are no mandated industrial benefits for the Mil COTS contract. For the Initial Support Contract (ISC), there are IRB requirements valued at 75% of the contract value and Industry Canada reports that MBC is up to date and progressing on its activities. There is an IRB requirement in the current support contract in the amount of 100% of the contract value. It was awarded in April 2010, so MBC is in the early stages of implementing its IRB program.
LIGHTWEIGHT TOWED HOWITZER (LWTH)
Description:
The Lightweight Towed Howitzer (LWTH) project is an element of the act domain in the Canadian Forces (CF). This project will bridge a key facet of the land forces current indirect fire capability deficiency. Specifically, the project will field 25 M-777 lightweight 155mm towed howitzers, each with a Digital Gun Management System (DGMS), and supported by improved ammunition and a modern truck. The 25 howitzers (six were delivered in a three month period ending July 2009 and the remaining will be delivered by July 2011) will augment the 12 M-777 howitzers currently in service. These capability enhancements in terms of lethality, range, precision, mobility and digitization are needed to support future missions and tasks likely to be assigned to the CF.
Project Phase:
Implementation. The LWTH project entered the Implementation Phase with the approval of the Minister of National Defence on 11 January 2010. The project is planning to enter project close-out in December 2012.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | BAE Systems, Barrow-in-Furrow, Cumbria, UK |
|---|---|
| Major Sub-Contractor | SELEX Sensor and Airborne Systems Ltd, Edinburgh, UK |
| Major Milestone | Date |
|---|---|
| Identification Phase Approval – Identification Phase | January 2008 |
| Preliminary Project Approval (PPA)– Definition Phase | June 2008 |
| M-777 Foreign Military Sale (FMS) Agreement | November 2008 |
| DGMS Contract Award | November 2009 |
| Effective Project Approval (EPA)– Implementation Phase | January 2010 |
| M-777 Support Contract Award | June 2010 |
| Initial Operational Capability (IOC) | July 2011 |
| Final Operation Capability (FOC) | December 2012 |
| Project Close-Out | March 2013 |
Progress Report and Explanations of Variances:
TBS approved the indicative total project cost of $278.282 million (all costs are $BY including GST) and delegated EPA authority to MND in June 2008. At the same time, expenditure authority of $3.466 million was granted for the Definition Phase, $106.898 million to acquire the M777 (including ancillary equipment and services), and $25.302 million to acquire the DGMS (including support). The project received Implementation Phase approval (EPA) from the MND for the remaining project elements (M-777 Support and ammunition) with a total project cost $277.929 million (all costs are $BY including GST). Cost variance was mainly due to the fluctuations in the US and UK Sterling exchange rates.
The Foreign Military Sales (FMS) Letter of Offer and Agreement (LOA) to procure 25 M-777 howitzers was signed in November 2008.
The Contract Award was signed by the Minister of Public Works and Government Services Canada at the end of November 2009 and valued at �10.081 million (UKP).
The M-777 Support Contract Award is planned to be awarded in the summer of 2010.
Industrial and Regional Benefits:
The IRBs are an integral part of the Lightweight Towed Howitzer project. For the M-777 lightweight 155mm towed howitzer, the original equipment manufacturer has committed to 100% of the FMS agreement value (less the value of the US government furnished equipment) through a combination of direct and indirect IRBs. For the digital gun management system, the original equipment manufacturer has committed to 100% of the contract value in direct and indirect IRBs.
In view of the low value of the M-777 Initial Support contract and the high proportion of parts and labour, Industry Canada has determined that they will not be seeking IRBS. However, Industry Canada will monitor the Department's future Procurement Review Committee/Advisory Committee on Repair and Overhaul process for the in-service Support or long-term support contracts to determine if IRBs are appropriate.
Main Battle Tank (MBT)
Description:
The purpose of the Tank Replacement Project is to replace Canada's aging Leopard C2 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The Tank Replacement Project is divided into two phases. Phase 1 consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT), two Armoured Recovery Vehicles (ARVs) and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBT from the Netherlands Government. Phase 2 consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 tanks and armoured recovery vehicles into service with the CF.
Project Phase:
Implementation. The project received PPA from TBS on 29 March 2007 and Effective Project Approval (EPA) on 11 June 2009 for Phase 2. The project is capped at $650 million.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Phase 1 | |
|---|---|
| Prime Contractor for ARV upgrades | Rheinmetall Land Systeme (RLS), Germany |
| Prime Contractor for MBT upgrades | Krauss Maffei Wegmann (KMW), Germany |
| Prime Contractor for loaned tanks | German Government |
| Prime Contractor for tank purchase | Netherlands Government |
| Phase 2 | |
| Prime Contractor for 20 Leopard 2 A4 ops tanks | Krauss Maffei Wegmann (KMW), Germany |
| Prime Contractor for 20 Leopard 2 A6 tanks for return to German Government | Krauss Maffei Wegmann (KMW), Germany |
| Prime Contractor for 42 Leopard 2 A4 training tanks | To be determined |
| Prime Contractor for 8 Leopard 2 ARVs | To be determined |
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval (PPA) | March 2007 |
| Phase 1 - Loan Agreement with German MoD | May 2007 |
| Phase 1 - Contract to KMW for upgrades to Loaned tanks | May 2007 |
| Phase 1 - Contract to RLS for upgrades to Loaned tanks | May 2007 |
| Initial Operating Capability (IOC) | August 2007 |
| Phase 1 - Acquisition of tanks from Dutch Government | December 2007 |
| Letter of Interest | April 2008 |
| Price and Availability | April 2009 |
| Phase 1 – PPA amendment approved by Treasury Board | June 2008 |
| Statement of Operational Requirements Approval | August 2008 |
| Treasury Board Effective Project Approval (EPA) with conditions | June 2009 |
| Phase 2 – Contract to KMW for urgent requirement of 20 Leopard 2 A4 Operational tanks (repair, overhaul and upgrade) | June 2009 |
| Phase 1 – Contract to KMW for replacement in kind tank return to German MoD - 20 x A6 (NLD) tanks modified to German standard | July 2009 |
| Phase 2 – Contract for repair and overhaul of 42 Training tanks | July 2010 |
| Phase 2 – Contract for 8 ARVs | November/December 2010 |
| Full Operational Capability (FOC) – (Phase II) | January 2014 |
| Project Close-Out | January 2015 |
Progress Report and Explanations of Variances:
- Treasury Board approved the PPA Amendment on 19 June 2008 allowing the Replacement in Kind concept for the loaned tanks. Canada will retain the loaned German Leopard 2A6 M. In return, the purchased Dutch Leopard 2 A6 will be converted to a German standard and returned to German MoD.
- EPA was approved by TB on 11 June 2009 supporting the Phase 2 procurement strategy as follows:
- Sole source to the OEM for an urgent requirement to repair and upgrade 20 Leopard 2 A4 in Europe for delivery commencing in September 2010, to replace the deployed Leopard 2 A6M tanks;
- Competitive procurement for the repair, overhaul and limited upgrade to 42 Leopard 2 A4 training tanks in Canada;
- Competitive procurement for the conversion of Leopard 2 A4 to provide 8 ARV in Canada, and to provide 10 chassis to the Force Mobility Enhancement Project;
- Competitive procurement for the associated Integrated Logistics Support including but not limited to parts, training and ammunition.
- EPA directed that work be done in Canada, for the training tanks and ARVs. The increasing schedule pressure on the deliverables has resulted in the FOC change to January 2014. In addition, cost continues to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities.
The following issues continue to be managed:
- The effort of managing the multiple contracts;
- Support to the loaned tanks and ARVs deployed in Afghanistan - twenty Leopard 2 A4 ops tanks are being readied to rotate into theatre as replacements starting in fall 2010;
- The requirement to complete work in Canada (for the training tanks and ARVs) and the resulting risk to schedule and cost;
- Ongoing sourcing of critical spares to support theatre and production activities;
Industrial and Regional Benefits:
No IRBs were required for Phase 1. For Phase 2, IRBs are a requirement. Bidders will be required to submit acceptable IRB proposals with their bids. The successful contractors will be required to undertake IRB activities in Canada valued at 100% of the contract value. IRB proposals will be evaluated by representatives of Industry Canada and the Regional Development Agencies. Contractors will be required to submit annual IRB reports detailing their achievements, which Industry Canada will review and verify
Maritime Helicopter Project (MHP)
Description:
The purpose of this project is to replace the CH124 Sea King with a fleet of 28 new fully equipped Maritime Helicopters bundled with a long-term in-service support contract and the modification of the HALIFAX class ships to accommodate the new Maritime Helicopters. This replacement will address the operational deficiencies of the current CH124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multi-purpose shipborne Maritime Helicopters for operations well into the 21st century.
Project Phase:
Implementation. In November 2008, the project marked the four-year milestone in the Implementation Phase. The project focus is now shifting from design and engineering to aircraft manufacturing and assembly, followed by flight tests and delivery of the aircrafts.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | Sikorsky International Operations Incorporated, Stratford, Connecticut, USA |
|---|---|
| Major Sub-Contractors | General Dynamics Canada, Ottawa, Ontario L-3 MAS, Mirabel, Qu�bec, Canada |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval (PPA) | June 2003 |
| Invitations for Bids Posted on MERX | December 2003 |
| Synopsis Sheet Effective Project Approval (SS(EPA)) | November 2004 |
| Contract Award | November 2004 |
| First Delivery (Interim Maritime Helicopters) | November 2010 |
| First Delivery (Compliant Maritime Helicopters) | July 2012 |
| Final Delivery | 2013 |
| Project Close-Out | 2014 |
Progress Report and Explanations of Variances:
In December 2008, following discussions to minimize delays in the planned delivery of the integrated Maritime Helicopter, the Government and Sikorsky agreed to a new schedule for the delivery of 6 Interim helicopters starting in November 2010, with delivery of fully compliant helicopters commencing in July 2012.
Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on HMCS Montr�al have progressed well and are on schedule. The first test flight of the Maritime Helicopter occurred on November 15, 2008. The second Maritime Helicopter, first aircraft with complete Mission System Hardware installed, underwent its first test flight on July 29, 2009. Defence crews, as part of the Combined Test Force with Sikorsky, began aircraft testing on July 10, 2009. The project is currently running within its authorized budget.
Industrial and Regional Benefits:
The IRBs are equivalent to 107% of the contract value for the capital acquisition and more than 80% of the estimated contract value for the in-service support.
| Region | Capital Acquisition | In-Service Support |
|---|---|---|
| Atlantic Canada | $239.1M | $825.9M |
| Qu�bec | $555.8M | $399.2M |
| Northern Ontario | $ 3.2M | $7.6M |
| Ontario (excluding Northern Ontario) | $924.3M | $1,073.2M |
| Western Canada | $210.6M | $181.4M |
| Unallocated | $10.0M | $105.7M |
| Total | $1,943.00 | $2,593.0M |
Material Acquisition and Support Information System (MASIS)
Description:
The mission of the Materiel Acquisition and Support Information System (MASIS) project is to provide a Department of National Defence (DND) integrated materiel acquisition and support information system that enables the cost-effective optimization of weapon/equipment system availability throughout the life cycle. The scope of MASIS includes all end-to-end information requirements within DND/CF related to the materiel acquisition and support functions which are comprised of systems engineering, integrated logistics support (ILS), equipment configuration, technical data management, asset management, maintenance management, project management, performance management, operational support, business management, decision support analysis and contract management.
Project Phase:
Implementation. To date the project has completed Phases 1 to 4 and implementation of Phase 5 is currently underway. Project completion is expected for 2012.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | N/A |
| Prime Contractor | IBM Canada, Ottawa, Ontario |
|---|---|
| Major Sub-Contractors | SAP Canada, Ottawa, Ontario Pennant Ottawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Definition Phase | |
| Preliminary Project Approval - Expenditure Authority for Phase 1 | June 1998 |
| Contract Awarded for Prime Systems Integrator | December 1998 |
| MASIS system - Go Live Phase 1 (202 Work Depot Montr�al) | September 1999 |
| Implementation Phase | |
| Expenditure Authority (EPA) for Phases 2 and 3: a. Implementation of Complex Contracts; b. Implementation of the MASIS solution to the Navy; c. Operations Support and Maintenance for MASIS; d. Planning and scoping for requirements scheduled to be implemented for the Army. |
June 2000 |
| Amended Expenditure Authority (EPA) for Phase 4: a. Investigation of opportunities to progress the implementation of MASIS to the maximum extent possible within the future available Phase 5 funding; b. Management of Operations Support and Maintenance for MASIS (outside MASIS project Expenditure Authority); c. Project was deemed as a Major Crown Project with this approval. |
December 2003 |
| Amended Expenditure Authority (EPA) for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army. | June 2007 |
| Project Close-out | 2012 |
Progress Report and Explanations of Variances:
Following Definition Phase approval, EPA for MASIS was granted to DND in June 2000 in the amount of $147.8M. This authority provided the project the means to cover the work under Phases 1 to 3, which have been completed.
The project follows a cyclical approval and delivery methodology. In December 2003, an additional $34.4M was approved to fund Phase 4 of the project, which has been completed. In June 2007, the MASIS project received Treasury Board approval in the amount of $170M for Phase 5. Phase 5 activities include the rollout of MASIS functionality to Army and Air Force; to date, Phase 5 activities are on budget and on time. Planned completion of project is within the 2012 timeframe.
Industrial and Regional Benefits:
All industrial benefits are attributed to Ontario since all project expenditures occur in Ontario.
Medium-To-Heavy-Lift Helicopter (MHLH)
Description:
Over the last decade, the ability to move personnel and equipment by air has become a vital and growing capability requirement for the Canadian Forces (CF) in fulfilling a wide range of roles. CF operational experience, particularly in current operational theatres, has highlighted the urgent need for medium-to-heavy-lift helicopters to support land forces in a threat environment by quickly, efficiently and safely moving large numbers of personnel and heavy equipment from forward deployed bases, thus reducing their vulnerability to attack. Both at home and overseas, medium-to-heavy-lift helicopters will provide the Government with a wider range of military options for addressing threats and emergencies beyond the CF’ current helicopter fleets.
The Medium-to-Heavy-Lift Helicopter project will deliver the medium-to-heavy-lift helicopter capability to support land-based domestic and international operations and to support land staff training on the road to high readiness. The project will acquire a minimum of 15 helicopters, integrated logistic support and other related support elements.
Project Phase:
Implementation.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | The Boeing Company, Philadelphia, Pennsylvania, USA |
|---|
| Major Milestone | Date |
|---|---|
| Synopsis Sheet Preliminary Project Approval (SS(PPA)) | June 2006 |
| Advanced Contract Award Notice Posted on MERX | July 2006 |
| Effective Project Approval (EPA) and Contract Award | June 2009 |
| First ACAN Compliant Aircraft | June 2012 |
| First MHLH | June 2013 |
| Initial Operational Capability (IOC) | June 2014 |
| Full Operational Capability (FOC) | June 2015 |
| Project Close-out | June 2016 |
Progress Report and Explanations of Variances:
Treasury Board Secretariat (TBS) approved the Preliminary Project Approval (PPA) for the Medium-to Heavy-Lift Helicopter project in June 2006 with an estimated cost of $ 2,022 million. In December 2007, TBS approved a revised PPA for an additional $12 million. The requirement for additional funding is a result of delays associated with ensuring that the appropriate analysis and oversight was conducted. In June 2009, TBS granted Effective Project Approval (EPA) at a substantive cost estimate of $ 2,312 million. A contract was awarded to The Boeing Company June 30, 2009, at a value of $1,156 million (USD). A contract was awarded to CAE on 22 March 2010, at a value of $262.5 million for the Operational Training System Provider. The Medium-to Heavy-Lift Helicopter project is currently on budget. The project is to be completed by June 2016.
Industrial and Regional Benefits:
The procurement strategy for MHLH will provide IRBs equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. The Boeing Company has identified 60% of the total acquisition commitment prior to contract signing. For the integrated in-service support portion, 75% of the contract value will be direct work performed by Canadian companies. As a result, Canadian companies will have access to Boeing's global value chain which will allow them to do long-term, high-value work on Boeing's international fleets of aircraft through global partnerships. This new business being generated in Canada means that Canadian firms will hold an enviable place in the global aerospace industry.
Medium Support Vehicle System Project (MSVS)
Description:
The Medium Support Vehicle System Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. The MSVS project will cost approximately $1.2 billion (net of GST) and will deliver the following mix of vehicles:
- Medium-sized Standard Military Pattern (SMP) vehicles:
Up to 1,500 vehicles, with options for an additional 650;
Up to 150 integrated armour protection systems, with options for an additional 150; and
Up to 300 companion military pattern trailers, with options for an additional 240.
- Medium-sized Militarized Commercial Off-the-Shelf (MilCOTS) vehicles:
1,300 commercial vehicles with militarized components.
- Special Equipment Vehicle (SEV) Kits:
Up to 868 special equipment vehicle kits, with options for an additional 110.
Project Phase:
Definition for SMP and SEV Kitting, and Implementation for MilCOTS and SEV Baseline Shelters.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| One prime contractor will be selected for each project component. Final selection of the prime contractors will occur through Revised Preliminary Project Approvals (Rev(PPA)) for MilCOTS Vehicles, SEV Baseline Shelters and SMP Vehicles followed by EPA for SEV Kitting. | |
|---|---|
| Prime Contractor - MiLCOTS | Navistar Defence LLC, Warrenville, Illinois, USA |
| Prime Contractor - SEV Baseline Shelters | DEW Engineering and Development ULC, Ottawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval (PPA) | June 2006 |
| MilCOTS - Invitation for Bids Posted on MERX | November 2007 |
| MilCOTS – Revised Preliminary Project Approval (Rev(PPA)) | December 2008 |
| MilCOTS - First Delivery | June 2009 |
| MilCOTS - Delivery Complete | Fall 2010 |
| SEV Baseline Shelter - Invitation for Bids Posted on MERX | May 2008 |
| SEV Baseline Shelter - Revised Preliminary Project Approval (Rev(PPA)) | June 2009 |
| SEV Baseline Shelter - Contract Award | July 2009 |
| SEV Baseline Shelter - First Delivery | Early 2011 |
| SEV Baseline Shelter - Delivery Complete | Fall 2013 |
| SMP - Invitation for Bids Posted on MERX | Early 2011 |
| SMP - Revised Preliminary Project Approval (Rev(PPA)) | Summer 2012 |
| SMP - Contract Award | Summer 2012 |
| SMP - First Delivery | Summer 2013 |
| SMP - Delivery Complete | Early 2015 |
| SEV Kitting - Invitation for Bids Posted on MERX | Fall 2010 |
| SEV Kitting – Effective Project Approval (EPA) | Summer 2011 |
| SEV Kitting - Contract Award | Summer 2011 |
| SEV Kitting - First Delivery | Early 2012 |
| SEV Kitting - Delivery Complete | Early 2014 |
| Project Close-out | Fall 2015 |
Progress Report and Explanations of Variances:
In December 2008, Project Management Office MSVS obtained TB expenditure authority for MilCOTS in the amount of $351.8 million ($BY) plus GST and a Rev PPA for an indicative full-up cost estimate of $1.22 billion ($BY) plus GST for all components of the MSVS project. In June 2009, TB expenditure authority was obtained for SEV Baseline Shelters in the amount of $161.4 million ($BY) plus GST, and a Rev PPA for an indicative full-up cost estimate of $1.24 billion ($BY) plus GST for all components of the MSVS project.
MilCOTS – An Agreement in Principle was reached in August 2008 with the single responsive bidder. Rev PPA and contract approval was received in December 2008. The contract was awarded in January 2009.
SEV Baseline Shelters – An Agreement in Principle was reached in April 2009 with the single responsive bidder. Rev PPA and contract approval was received in June 2009. The contract was awarded in July 2009.
SMP - Portions of a draft Request for Proposal (RFP) were posted on the project website in October 2009 for industry comment. The final RFP is planned for release in early 2011.
SEV Kitting - A draft SEV Kitting RFP was posted on the project website in December 2009 for industry comment. The final RFP is planned for release in fall 2010.
Schedule delays have occurred and are attributed to delayed project approval and overall staffing shortages. Cost variances have also occurred and are attributed to the receipt of single bids for MilCOTS vehicles and SEV Baseline Shelters with higher than anticipated price proposals, a volatile raw material market and fluctuation in foreign exchange rates.
A continuous risk management program has been implemented and efforts to finalize the RFPs for the Implementation Phases of SMP vehicles and SEV Kitting are progressing. At this time, Project Close-Out is anticipated for fall 2015.
Industrial and Regional Benefits:
IRBs equivalent to 100% of the contract value will be required for MilCOTS, SMP and SEV Baseline Shelters. IRBs cannot be obtained for SEV Kitting as the international trade agreements (NAFTA, WTO-AGP) apply.
Military Automated Air Traffic System (MAATS) Project
Description:
MAATS and Transport Canada (now NAV Canada) initiated a national air traffic system project to automate air traffic services. Defence and the CF established the Military Automated Air Traffic System (MAATS) Project to ensure that military air operations continue to function effectively with the integrity of the national system compatibility under all domestic operations. The project directly supports the defence objective of conducting air traffic control operations.
The MAATS project will provide the essential infrastructure, systems, and automated capabilities to efficiently interface Air Traffic Management Systems (ATMS) and accurately exchange data between applications. The project will deliver a stable, sustainable, and operational ATMS while providing as much integration as possible with NAV Canada's Canadian Automated Air Traffic System (CAATS). New equipment will be installed where system interfaces are not currently available. All existing Defence radar systems, meteorological and aids sensors are retained and interfaced to the MAATS. In 2006, CAATS was no longer in a position to support military operations so Project Management Office (PMO) MAATS selected the option to progress the project with an in-house solution. Since 2006, the Aerospace and Telecommunications Engineering Support Squadron (ATESS) has been mandated to design, develop and implement the complete Defence ATMS solutions for MAATS.
Project Phase:
Implementation.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | Raytheon Canada Limited, Richmond, British Columbia, Canada NavCanada, Ottawa, Ontario, Canada |
|---|---|
| Major Sub-Contractors | Hewlett Packard Canada Ltd, Ottawa, Ontario, Canada CVDS, Montr�al, Qu�bec, Canada Frequentis Canada Ltd, Ottawa, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Treasury Board Effective Project Approval (EPA) | July 1993 |
| Contract Award | January 1994 |
| Preliminary Design Review | September 1997 - May 2000 |
| Critical Design Review | February 2001 |
| Factory Acceptance Test (Closure) | January 2002 |
| Initial Delivery (Montr�al) | December 2003 |
| Contract Complete (Last Payment) | December 2004 |
| Approval received to disengage concurrent development with NAV CANADA project and pursue sustainable minimum military requirement | September 2006 |
| Begin Software Development on Phoenix Systems | October 2006 |
| Complete Phoenix NAMS II Development | October 2007 |
| Initial Operational Capability - First Wing Operational with NAMS II Equipment | October 2007 |
| Full Operational Capability (FOC) - All Wings with delivered Equipment | June 2009 |
| Begin project Close-Out | July 2009 |
| MAATS Project Close-Out Senior Review Board (SRB) | January 2010 |
| Project Management Office (PMO) Close-Out | March 2010 |
| Project Complete | December 2010 |
Progress Report and Explanations of Variances:
TBS initially approved the project with an estimated cost of $179.2 million. The project funding was reduced by $15 million following departmental review. Partial return of funding was approved at the December 2003 Senior Review Board (SRB). Current departmental funding is $169.2 million.
As briefed at SRB in June 2006, the MAATS project objectives were declared unachievable with CAATS. Given a number of alternative options, the MAATS' PMO recommended to cease MAATS/CAATS development, and continue the project with the implementation of an "in-house" solution coined Phoenix. With the support of the Chief of the Air Staff and the Assistant Deputy Minister (Materiel) Group, the Programme Management Board (PMB) concurred with the PMO's recommendation in March 2007. MAATS' PMO was directed to de-link the project from NAV Canada's Canadian Automated Air Traffic System (CAATS); concentrate on the re-vitalization and integration of Air Traffic Controller (ATC) information sources at each of the seven Wings (Comox, Cold Lake, Moose Jaw, Bagotville, Trenton, Greenwood, and Goose Bay); keep military Instrument Flight Rules (IFR) operations at the Wings vice at two Military Terminal Control Centres; and pursue the development and fielding of the Phoenix solution.
Since approvals were received in July 2007, the Phoenix solution is well on its way to upgrading the current Air Traffic Management System capability inclusive of the following sub-systems: the Radar Processor, the Navigational Aids and Meteorological Sub-System (NAMS), the Air Movement Statistics Package and the Flight Data System. Phoenix is based on the proven Radar Processing Display System II (RPDS II) which was certified for Operational Airworthiness. Phoenix is built on standard commercial Off-the Shelf hardware and open source software, thus keeping technical risk low. Installation of Phoenix equipment (NAMS II) at 8 Wing Trenton was completed and Provisional Operational Airworthiness Clearance (POAC) was granted in October 2007, ahead of schedule. Actual close-out activities, including a project completion report to TBS, will be completed in fiscal year 2010-11.
PMO implemented the last site (Goose Bay) in May 2009 with: 1) NAMS II, 2) Frequentis (voice communication switch) and 3) Control Tower Consoles Revitalization. All sites are now synchronized with same technology and interfaces and the Phoenix environment has been running since 2007 without any downtime or major failure. The Vancouver 2010 Olympics shifted ATESS personnel priorities, delaying the revision of the last REDDS delivery called Flight Data Entry Terminal (FDET II). With SRB endorsement, the PMO plans to devolve FDET II implementation responsibilities to the Director General Aerospace Equipment Program Management (DGAEPM), close the office in March 2010, and close the project in December 2010. In-service Life Cycle Materiel Management (LCMM) support is in place to efficiently manage and co-ordinate the remaining FDET II responsibilities and to assist with project close-out activities.
Industrial and Regional Benefits:
Canadian industry in the following regions of Canada will benefit from the MAATS project.
| Region | Benefits |
|---|---|
| Atlantic Canada | $1.6M |
| Qu�bec | $1.0M |
| Ontario | $1.8M |
| Western Canada | $45.8M |
| Unallocated | To be determined |
| Total | $50.2M |
Protected Military Satellite Communications (PMSC)
Description:
The Department and the Canadian Forces (CF) require global communications that are secure, guaranteed and directly interoperable with our Allies. The Protected Military Satellite Communications (PMSC) System provides a Canadian Advanced Extremely High Frequency (AEHF) Military Satellite Communications System for near-worldwide assured, secure, survivable, and jam-resistant communications to the CF for the command and control of deployed Canadian commanders and forces, as well as interoperability with our principal ally, the United States.
Project Phase:
Implementation. The PMSC project is being implemented in two phases with project completion expected for winter 2017.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | United States Department of Defense (DoD) |
|---|---|
| Major Sub-Contractors | To be determined |
| Major Milestone | Date |
|---|---|
| Preliminary Project Approval (PPA) | August 1999 |
| Effective Project Approval (EPA) | November 2003 |
| Initial Terminal Delivery | Summer 2010 |
| Initial Satellite Delivery | Spring 2012 |
| Terminal Delivery Completed | Autumn 2014 |
| Project Complete | Winter 2017 |
Progress Report and Explanations of Variances:
The PMSC project is being implemented in two phases. In the completed Phase 1, guaranteed access to satellites was procured under the terms of a 1999 Memorandum of Understanding (MOU) with the United States Department of Defense (DoD) in which Defence participation in the US DoD Advanced Extremely High Frequency (AEHF) system is ensured. Definition studies for the terminal segment were also completed. Under Phase 2, the terminal segment is being procured and will be installed, where appropriate, and tested starting in 2010.
In August 1999, Treasury Board Secretariat (TBS) granted Preliminary Project Approval (PPA) to the PMSC Project, with expenditure authority for the implementation of Phase 1 at an estimated cost of $271 million ($BY) including GST, and granted approval for the Defence to enter into a Military Satellite Communication (MILSATCOM) MOU with the US DoD. The MOU was signed in November 1999.
In November 2003, TBS granted Effective Project Approval (EPA) to the PMSC Project, with expenditure authority for the Implementation of Phase 2 at an estimated cost of $321 million ($BY) including GST. The total cost (including funds approved at PPA) is, currently, estimated at $592 million including GST ($BY) net-of-GST. The project is on budget.
Industrial and Regional Benefits:
Under Phase 1, the US DoD has committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations will be permitted to bid on project work. In Phase 2, the Senior Procurement Advisory Committee (SPAC) endorsed that terminal acquisition and support will be procured through Foreign Military Sales (FMS) with installation done through Defence-managed contracts. IRBs will be sought by Industry Canada at 100% of the contract value.
Submarine Capability Life Extension(SCLE)
Description:
The Submarine Capability Life Extension (SCLE) project replaced the Oberon class submarine fleet with four existing British Upholder class (renamed Canadian Victoria class) submarines. The project will ensure that Canada preserves its submarine capability within the existing capital budget. The project supports Canada's ability to conduct surveillance and control of its territory, airspace and maritime areas of jurisdiction, as well as Canada's ability to participate in bilateral and multilateral operations.
Project Phase:
Implementation. The project has delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews. Canadianization of three platforms and 13 of 17 associated projects have been completed. The last platform (HMCS CHICOUTIMI) will complete Canadianization during her Extended Docking Work Period (EDWP) which is scheduled to commence in 2010. The remaining associated projects will be completed by project closure in March 2013.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor | The Government of the United Kingdom, (UK) of Great Britain and Northern Ireland, Ministry of Defence, UK |
|---|---|
| Major Sub-Contractors | British Aerospace Engineering (BAE) Marine Systems (formerly Vickers Shipbuilding and Engineering Limited (VSEL)/Marconi Marine) Cumbria, UK |
| Major Milestone | Date |
|---|---|
| Treasury Board Approval | June 1998 |
| Main Contract Award | July 1998 |
| Initial Support Contract Award | July 1998 |
| Initial Operational Capability (IOC) | April 2006 |
| Full Operational Capability (FOC) | June 2011 |
| Project Close-Out | March 2013 |
Progress Report and Explanations of Variances:
EPA was granted to the SCLE project in June 1998 at an estimated total cost of $812.0 million ($BY) net of GST. The expenditure ceiling was increased by $84.8 million by TBS in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. The SCLE project is currently expending to budget.
Canada has accepted all four Upholder submarines from the United Kingdom. The operational status of each of these vessels is summarized below:
- Her Majesty's Canadian Ship (HMCS) Victoria is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Breton. She is scheduled to undock in July 2010 and complete this activity in November 2010.
- HMCS Windsor is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Scott. She is scheduled to undock in early 2011 and complete this activity in 2011.
- HMCS Corner Brook is operational and is participating in various exercises and patrols. She will remain operational until mid-2011.
- HMCS Chicoutimi was handed over to Canada in October 2004 and while en-route to Canada, she had an electrical incident at sea that resulted in a fire and was returned to Canada via sealift. Although some of the repairs have been completed, a decision was taken to delay the completion of the repair and Canadianization until her EDWP. HMCS Chicoutimi was signed over to the Canadian Submarine Management Group (In- Service Support Contractor) in June 2009. Her EDWP commenced in 2010.
Based on progress to date and current information, all performance objectives of this contract will be met within the allocated budget.
Industrial and Regional Benefits:
This project will provide an estimated $200 million in direct and indirect industrial benefits. This includes Canadian modifications to the submarines and the relocation of the simulators and trainers to Canada. A further $100 million in industrial benefits have taken the form of waivers to provide industrial offsets in the United Kingdom for Canadian companies bidding on defence contracts.
WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION (WLAV-LE)
Description:
The Wheeled Light Armoured Vehicle – Life Extension (WLAV-LE) has addressed deficiencies in command, combat support and combat service support capabilities to ensure that the current fleets of wheeled armoured vehicles are capable of operating in the current and anticipated threat environment. The WLAV-LE improved the mobility, protection and capability of the in-service Bison fleets (primarily composed of Infantry Section Carriers (ISC)) through a life extension and conversion to command and support variants dedicated to the LAV III and LAV-Recce (Coyote) fleets. The following capabilities are being provided in the 2004-11 timeframe:
- Conversion of the entire Bison fleet of 198 vehicles to 32 Ambulances, 16 Electronic Warfare, 4 Nuclear, Biological and Chemical Defence, 32 Maintenance and Recovery Vehicle, 32 Mobile Repair Team, 82 Command, Control, Communications and Intelligence vehicles;
- Provision of updated add-on armour packages for operations stock as a result of changes made to existing vehicles, to provide the crew and mission essential equipment with a basic level of protection; and
- Sufficient Integrated Logistics Support to maintain the fleet for the first two years of operations.
Project Phase:
Just over 94% of the Bison fleet has been converted.
| Lead Department or Agency | Department of National Defence |
|---|---|
| Contracting Authority | Public Works and Government Services Canada (PWGSC) |
| Participating Departments and Agencies | Industry Canada and its regional agencies |
| Prime Contractor (6 variants) |
DEW Engineering and Development ULC (DEW), Ottawa, Ontario, Canada |
|---|---|
| Prime Contractor (1 variant) |
General Dynamics Land Systems – Canada (GDLS-C), London, Ontario, Canada |
| Major Milestone | Date |
|---|---|
| Treasury Board Preliminary Project Approval (PPA) | September 1996 |
| Treasury Board Effective Project Approval (EPA) | November 1998 |
| Initial Contract Award with DEW | January 2003 |
| Treasury Board Revised Effective Project Approval (EPA) | September 2006 |
| New Contract Award with DEW | May 2007 |
| Contract Award with GDLS-C | October 2007 |
| Implementation – Initial Operational Capability (IOC) | March 2009 |
| Implementation – Full Operational Capability (FOC) | December 2010 |
| Project Completed | March 2011 |
Progress Report and Explanations of Variances:
Initially, TBS approved the WLAV-LE with an estimated cost of $230.387 million ($BY). In September 2006, TBS granted a reduced expenditure authority to WLAV-LE due to the cancellation of the Armoured Vehicle General Purpose (AVGP) component of the project. This change resulted from the decision taken by Defence in March 2005 to retire the AVGP fleet. The total cost estimate is now $170.3 million ($BY). The planned dates for the Initial Operational Capability (IOC) (August 2008) and Full Operational Capability (FOC)(December 2009) have been deferred as a result of delays experienced in getting contract approval, in completing the prototype build and in achieving a successful first article inspection for the Mobile Repair Team variant. The WLAV-LE is currently running under budget and is to be completed by March 2011.
Industrial and Regional Benefits:
There are no industrial and regional benefits strategy associated with this project.
The WLAV-LE is excluded from the Agreement on Internal Trade under article 508 - Exceptional Circumstances. The exceptional circumstance is related to the economic hardship facing the local economy from the closure of CF Base Chatham in New Brunswick. A portion of the work is to be carried out in the Chatham area (now defined as the Miramichi Region). It is a provision of the contract with DEW Engineering and Development ULC that the work is to be done in the Chatham Area of the province of New Brunswick to the maximum extent possible and where cost effective to the Crown.
