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Canada Border Services Agency



Status Report on Major Crown Projects

eManifest

Description

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

Project Phase

eManifest is currently in the analysis and design phase. During this phase, the following activities will be undertaken:

• Electronic receipt and automated risk assessment of pre-arrival data, including
  • primary and secondary cargo information;
  • conveyance information;
  • crew/driver information; and
  • importer release/admissibility information.

• Development of
  • alternative methods of communication (Internet portal);
  • cargo messaging or 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;
  • management information reporting; and
  • sufficient capacity and infrastructure to meet established pre-arrival reporting time frames and volumes.

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

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

Leading and Participating Departments and Agencies

Table 7.1: Leading and Participating Departments and Agencies

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractors

Table 7.2: Prime and Major Subcontractors

Prime and Major Subcontractors

Prime Contractor	n/a
Major contractors	n/a

Major Milestones

Table 7.3: Major Milestones

Major Milestones

Milestones	Date
Implementation release	June 2008
Implementation release	February 2009
Implementation build 2	December 2009
Implementation build 3	April 2010

Progress Report and Explanations of Variances

The Treasury Board granted effective project approval on November 29, 2007. The implementation of the in-transit pilot project was completed in June 2008. The following eManifest readiness deliverables were also released in June 2008:

• ability to extract U.S. marine cargo data on U.S.-destined cargo;
• Accelerated Commercial Release Operations Support System/Canadian Food Inspection Agency interface;
• notification system (carriers are notified when primary cargo reports are matched with secondary cargo reports);
• TITAN/Accelerated Commercial Release Operations Support System linkages;
• ability to validate appraisal quality data with the Harmonized System code; and
• ability to perform a historical search to view all details of the cargo/container/conveyance.

The following eManifest readiness deliverables are scheduled as part of the implementation release to be completed in February 2009:

• additional risk indicators for TITAN (marine mode);
• TITAN online updates (Phase II); and
• electronic data interchange rail reporting (Phase I).

Table 7.4: Progress Report and Explanation of Variances

($ thousands)

CBSA Branch	2006-07		2007-08
	Budget	Actual	Budget	Actual
Innovation, Science and Technology	4,660	4,660	46,169	30,656
Admissibility	296	296	708	368
Operations			392	1,087
Enforcement	302	302	723	140
Comptrollership	1,821	1,821	158	623
Human Resources	369	369	240	138
Strategy and Coordination	760	760	488	67
Total	8,208	8,208	48,878	33,079
Carry Forward				12,749

($ thousands)

CBSA Branch	2008-09		2009-10
	Budget	Forecast	Budget
Innovation, Science and Technology	90,019	56,771	81,356
Admissibility	584	1,325	584
Operations	2,733	1,251	6,555
Enforcement	584	335	584
Comptrollership	1,025	2,281	2,078
Human Resources	371	705	566
Strategy and Coordination	786	1,901	1,319
Carry forward for 2007-08	12,749
Total	108,851	64,569	93,042
Carry Forward		44,282

The spending profile was adjusted to reflect the figures in the effective project approval submission. The total amount spent during 2006–07 was on activities within the initiation, feasibility and planning phases of the project life cycle. Significant work on building and confirming the project scope and identifying high-level requirements for development are attributed to this expenditure.

Approximately 50 percent of expenditures are attributed to the implementation release of June 2008. An additional 30 percent will be used to complete the implementation release scheduled for February 2009 and part of the implementation build 2. The remaining 20 percent will be carried forward and distributed among the remaining implementation builds.

The carry-forward amount is attributed to a shift in the time required for the critical work of project planning activities, which necessitated the movement of procurement activities for infrastructure and hardware into future years. A large portion of these funds is associated with the procurement of a data warehouse.

Industrial Benefits (Business Goals)

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

Canadian Space Agency



Annexe 5 - Status Report on Major Crown Projects (MCPs)

Radarsat-1

Description

RADARSAT-1, Canada's first Earth Observation satellite is the only fully operational civilian remote sensing satellite that carries Synthetic Aperture Radar (SAR). This technology, contrary to optical sensor satellites, has the capacity to image day and night, in all weather conditions, regardless of cloud cover, smoke, haze and darkness. Launched in November 1995, RADARSAT-1 was meant to operate for five years to consistently supply timely and high-quality data to RADARSAT International (RSI), now a wholly owned subsidiary of MacDonald, Dettwiler and Associates (MDA), and other partners (federal and provincial government departments, NASA and the U.S. National Oceanic and Atmospheric Administration). RADARSAT-1 has continued to supply SAR data to clients in its extended mission, now in the 14th year of operation.

RADARSAT-1 operations continues with the same level of high performance for satellite reliability and image production. Since RADARSAT-2 has now been commissioned and declared operational, the CSA has notified NASA and NOAA that the RADARSAT-1 CSA-NASA-NOAA IMOU is terminated. In other words, no new RADARSAT-1 data are available to NASA and NOAA since May 2, 2008 under this IMOU. Deliberations on the continuation of RADARSAT-1 operations through consultations with main users have been completed and accordingly operations phase have been extended by three years beyond March, 2009.

RADARSAT-1 acquires high quality images of the Earth, covering most of Canada every 72 hours and the Arctic every 24 hours. It has proven itself in gathering the data needed for more efficient resource management (e.g. support to fishing, shipping, oil and gas exploration, offshore drilling, mapping) as well as ice, ocean and environmental monitoring, disaster management, and Arctic and offshore surveillance.

Leading and Participating Departments and Agencies

Sponsoring Agency:	Canadian Space Agency
Contracting Authority:	Public Works and Government Services Canada
Participating Departments:	Environment Canada Natural Resources Canada (Canada Centre for Remote Sensing)

Prime and Major Sub-Contractors

Prime Contractor: - EMS Technologies (now MacDonald, Dettwiler and Associates)	- Ste.-Anne-de-Bellevue, Quebec
Major Sub-Contractors: - MacDonald, Dettwiler and Associates - SED Systems - EMS Technologies - COM DEV - Lockheed Martin	- Richmond, British Columbia - Saskatoon, Saskatchewan - Ottawa, Ontario - Cambridge, Ontario - Longueuil, Quebec
Other Contractors: - Ball Aerospace - RADARSAT International (RSI) (now Geospatial Services, MacDonald, Dettwiler and Associates)	- Boulder, Colorado - Richmond, British Columbia

Major Milestones

Major milestones of the RADARSAT-1 Major Crown Project are now completed.

Major Milestones - Preliminary studies	Date Completed
- Feasibility and concept definition	Completed
- Systems requirement and preliminary design	Completed
- Development and testing up to qualification test review	Completed
- Manufacture of the prototype flight sub-systems up to acceptance testing of the sub-systems	Completed
- Assembly and integration of the sub-systems up to flight readiness review, plus post-launch and commissioning activities up to system acceptance	Completed
- First Antarctica mission - Second Antarctica mission - Original Mission Life of five years	Completed Completed Completed
- Satellite operations	April 1996 to March 2012

Progress Report and Explanation of Variances

Effective Program Approval was obtained for RADARSAT-1 in March 1991, with launch in November 1995 and beginning of operations in April 1996. The initial system included receiving stations for Synthetic Aperture Radar (SAR) data in Prince Albert (Saskatchewan), Gatineau (Quebec), Fairbanks (Alaska) and McMurdo (Antarctica). The CSA and RADARSAT International (now MDA-GSI) have since signed agreements with another 36 network stations distributed around the world: Argentina, Australia, Brazil, China, Italy, Japan, Kasakhstan, South Korea, Malaysia, Norway, Puerto-Rico, Russia, Saudi Arabia, Singapore, Taiwan, Thailand, Turkey, the United Kingdom and the United-States. Presently, a station in Portugal is undergoing the certification process. This list includes the agreements that have been also signed with transportable stations for the direct reception of RADARSAT-1 data: one in Italy, five in the U.S., one in Taiwan and one in France. Even more stations are expected to join the RADARSAT network in 2009. Since the IMOU with NASA/NOAA has been terminated effective May 2, 2008, McMurdo (Antarctica) is no longer available for RADARSAT-1 data reception and Fairbanks (Alaska) is now receiving data as a network station.

Following a commissioning period, routine operations of RADARSAT-1 commenced in April 1996. The average system performance is being maintained at 95%. The worldwide client base includes more than 600 commercial and government users from over 60 countries.

Several system upgrades were completed over the past few years to enhance performance, reliability, and maintainability of RADARSAT-1. Highlights include: November 2006 – completed memory upgrade of database servers; December 2006 – completed development of a new reporting tool for the location of RADARSAT-1 archives; January 2007 – completed upgrade of all Mission Management Office workstations; March 2007 – completed upgrade of the Network File System server; August 2007 – implemented and demonstrated RADARSAT-1 contingency data ordering processes through operational tests with other Earth Observation satellites which resulted in successful data acquisition, processing and delivery of three ENVISAT images; October 2008 – completed development of a new tool to facilitate ingestion of reports for improving accuracy of the RADARSAT-1 catalogue; January 2009 – completed upgrade of database server disks to a higher capacity.

Since October 2000, the CSA is a signatory, along with the European Space Agency (ESA) and the Centre National d'Études Spatiales (CNES) in France, to the "International Charter on Space and Major Disasters". The emphasis of the Charter is on multi-satellite support for disaster response and mitigation efforts around the world utilising RADARSAT-1 and satellites of other Charter member agencies. Since its official launch, the Indian Space Research Organisation (ISRO), the National Oceanic and Atmospheric Administration (NOAA), Argentina's Comisión Nacional de Actividades Espaciales (CONAE), the Japanese Aerospace Exploration Agency (JAXA), the United States Geological Survey (USGS) and the Disaster Monitoring Constellation (DMC) along with the British National Space Centre (BNSC) and the China National Space Administration (CNSA) have also joined the Charter and participate fully in its operations.

As of December 31, 2008, there have been 201 activations of the Charter for events such as: floods in Afghanistan, New York state, Uruguay, U.-K., Pakistan, China, India, Vietnam, North Korea, West Africa, Slovenia, Dominican Republic, Mexico, Bangladesh, Fiji, South Africa, Bolivia, Ecuador, Namibia and Illinois; Tsunami in the Solomon Islands; Earthquakes in Afghanistan, Chili, Peru, Rwanda, and China; Volcanic eruptions in Colombia and Ecuador; oil spills off the coasts of Chili an Norway; forest fires in the Canari Islands, Paraguay, Greece, California and Chili and, wind storms (hurricanes and tornadoes) in Mexico, Nicaragua, U.S. and Myanmar. The Charter also covered one activation in Canada in April 2008 for floods in New Brunswick. The most recent devastating disasters, namely Cyclone Nargis in Myanmar, Hurricanes Gustav, Hanna and Ike in Haiti and the U.S. Gulf Coast and the earthquake in China were covered with the assistance of Canada's RADARSAT-1.

The RADARSAT-1 system has been improved to provide on average a less than 2.5-hour turnaround in the electronic delivery of images to the Canadian Ice Service (CIS) for the production of ice charts and bulletins for the Canadian Coast Guard and other marine clients. The CIS continues to be one of the leading users of RADARSAT-1 data since the first operational data began to flow in February 1996. Recently, the CIS has been collaborating with Noetix Research, the CSA, and RSI (now MDA) on an ESA-sponsored Global Monitoring for Environment and Security (GMES) Project - The Northern View - to provide regular RADARSAT-1 images in support of a Floe Edge Service for two communities in the Canadian Arctic.

The RADARSAT-1 Background Mission has archived one of the largest microwave remote sensing data collections in the world. In fact, it is the first multi-mode uniformly collected database of its kind ever created. The data archive is the result of several Background Mission global coverage campaigns undertaken in the past seven years. These include a complete coverage of the world's continents, continental shelves and polar ice caps, as well as complete coverage of nearly the Earth's entire landmass with two RADARSAT-1 imaging beams for the first ever beam-pair stereo data collection. This is the world's largest radargrammetric dataset currently available. Some of the continents, including North America, were covered more than once to generate seasonal snapshots in the form of wide-area SAR mosaics. High-resolution RADARSAT-1 image mosaics of Canada, the U.S., Australia and Africa were produced with the Background Mission data. Several time- and site-specific coverage types have also been done, such as that of the remote oceanic island localities, the world's major cities and capitals. A seasonal coverage of the tropical deltas is also underway, as is also a four-season continuous coverage of the Arctic. The latter coverage, which now has uninterrupted data records over the Arctic since the summer of 2003, supports the growing interest in the Arctic and climate change captured within the International Polar Year (IPY) activities. These baseline coverage campaigns of RADARSAT-1 have established benchmarks for RADARSAT-2 and the follow-on Canadian SAR missions to build upon.

MacDonald, Dettwiller and Associates (MDA) Geospatial Services Inc. (GSI) continues to provide Earth-Observation data, derived information products, and leading-edge services to global clients. The broad range of MDA/GSI products includes geo-corrected imagery, digital elevation models, and application-specific products such as flood and ocean oil-seep vectors to meet the demands for new markets. Products are delivered to clients via Internet in near-real time for time-critical operations such as disaster management and ship navigation. Other services include training, monitoring and emergency response services, and custom product generation, as well as Geographic Information Systems (GIS) project implementation.

Industrial Benefits

The Canadian Space Agency undertook a study to determine the achievements of RADARSAT data in support of ice mapping and related activities in Canada. To date, the Canadian Ice Services (CIS) is the main Canadian Government operational user of RADARSAT-1 data. RADARSAT-1 provides observations over a wider geographical area, at much lower cost and risk, and in much less time than with an aircraft. As a result, CIS has been able to improve its operational efficiency. Over five years (1995 to 2000), the net average annual savings to CIS operations have been about $7.7 million per year ($38.5 million over 5 years). The same annual benefits have continued for the past eight years.

The Canadian Coast Guard (CCG), the largest customer of CIS products, has felt these benefits most significantly. The CCG Ice Operation Centres can provide improved routing information to commercial shipping, which allows for faster transit times. The shipping industry has benefited from the accuracy of RADARSAT information to produce ice charts. The shipping companies believe that as a result of RADARSAT based ice charts, there have been savings in transit time through ice-infested waters. These commercial shipping savings are estimated to be $18 million a year. Other benefits included less damage to ships and a reduction in the need for CCG escorts. As for the CCG, an estimated dollar savings in both operating costs and transit time to be between $3.6 million and $7 million a year, depending on the severity of ice conditions.

In the past, the prime contractor SPAR and its Canadian sub-contractors created over 2,000 person-years of high technology employment during the construction phase of RADARSAT-1. Ongoing mission operations employ 75 people at the CSA's headquarters in St-Hubert (Quebec), 7 in Saskatoon (Saskatchewan), 15 at ground stations in Prince Albert (Saskatchewan) and Gatineau (Quebec), as well as more than 80 at RSI (now MDA) in Richmond (British Columbia). In the highly competitive marketplace for space-based information, MDA continues to capture roughly 15% of the world's space borne remote sensing market. MDA has continued to process scenes and integrate RADARSAT data into information products for delivery to nearly 600 clients in 60 countries, and furthermore, MDA has signed up 80 international distributions, 18 RADARSAT-1 Network Stations and 11 Resources Centres. The market development for data archives is likely to be significant and an area in which new benefits may develop.

Radarsat-2

Description

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

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

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

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

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

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

Progress Report and Explanation of Variances

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

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

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

The development of the RADARSAT-2 satellite was completed at a slower pace than planned. Delays encountered by the main contractor and sub-contractors in the production of some of the satellite components have resulted in a significant delay in the assembly, integration and testing of the spacecraft. The Extendible Support Structure (ESS), one of the primary spacecraft sub-systems, was delivered to the Assembly, Integration and Test (AI&T) site at the DFL in October 2003. The Solar Arrays and the Bus were delivered to DFL in April and May 2004, respectively. The SAR antenna was delivered in September 2005. The assembly, integration and test of the RADARSAT-2 spacecraft at the DFL, along with the operations-preparations activities at the CSA in St-Hubert were successfully completed in September 2007. RADARSAT-2 was launched on December 14, 2007 and associated commissioning activities were completed by the end of April 2008.

The additional costs to complete the construction and launch of RADARSAT-2 were at the main contractor's expense. However, these additional delays required that the CSA RADARSAT-2 project office remained operational to cover the remaining activities until project close-out. The necessary funding to cover all additional expenditures for the CSA is from within the project risk funding envelope and associated project authorities. With RADARSAT-2 being fully operational and the government departments making regular use of the data, the CSA is preparing the closure of the RADARSAT-2 Major Crown Project with the objective to submit the closure report to Treasury Board in June 2009.

Industrial Benefits

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

A major objective of this project is the transition of the Earth observation industry from the public sector to the private sector. The intention is to build on the SAR data and value-added markets established with RADARSAT-1 to strengthen the Canadian industry's position as a supplier of SAR-related technology, systems and value-added products and services. Specifically, manufacturing potential and competitiveness will be encouraged in Canadian industry in the areas of phased array antenna design/manufacture, high performance receiver/transmitter design and manufacture, and enhanced structure design. Moreover, opportunities will be created for the export of ground station systems. The new capabilities also make new applications possible, creating new and expanded markets for data sales and value-added products.

As of March 31, 2009, the CSA will have funded $384.4 million worth of work to Canadian industry directly attributable to the RADARSAT-2 Major Crown Project (MCP). Direct industrial benefits from the construction of RADARSAT-2 will benefit all regions of Canada. The regional distribution of direct industrial benefits is shown in the following table.

Regional Distribution of RADARSAT-2 Contracts
(as of January 2009)

Program	British Columbia	Prairie Provinces	Ontario	Quebec	Atlantic	Total Canada
Radarsat-2	59.1%	0.3%	10.2%	29.9%	0.4%	100%

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

Summary of Non-Recurring Expenditures ($ in millions)
(as of March 2008)

Program	Current Estimated Total Expenditure	Forecast to March 31, 2008	Planned Spending 2008-2009	Future Years
Radarsat-2	418.6	416.9	1.7	0

Radarsat Constellation

Description

The RADARSAT Constellation is the follow-on to RADARSAT-1 and RADARSAT-2. RADARSAT-1 was launched in 1995 and is still operating. RADARSAT-2, developed in partnership with the private sector, was launched in 2007 for a seven-year mission.

Canada has established itself as a leading global supplier of C-band satellite radar data. The RADARSAT Constellation will enhance this leadership and position Canadian industry in technology and value-added product markets.

The RADARSAT Constellation is designed as a scalable constellation of three small satellites. The satellites will be launched in 2014, 2015 and 2016.

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

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

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

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

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

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

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

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

Leading and participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

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

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

Progress Report and Explanation of Variances

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

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

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

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

A revised PPA Treasury Board Submission to proceed to Phases B and C was approved in March 2007. In December 2006, Public Works and Government Services Canada (PWGSC) initiated a competitive Request for Proposal (RFP) process to identify a prime contractor for the RADARSAT Constellation project (i.e., for Phases B/C/D of the space segment and a portion of the ground segment) and negotiate a contract for Phases B and C with the winning prime contractor, MDA. The contract for Phase D would follow successful completion of Phases B and C, obtaining the necessary funding and the granting of Effective Project Approval (EPA) from Treasury Board. In September 2008, PWGSC obtained authority to enter into a contract with MDA. Negotiations for Phase B were completed in October 2008 and the contract for Phase B was awarded to MDA in November 2008. It is planned to amend the contract for Phase B to include the scope of Phase C once the negotiations for Phase C have concluded. Phases B and C are planned to last approximately 3 years.

Industrial Benefits

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

CSA's approach to regional distribution has been developed in consultation with Industry Canada and the Atlantic Opportunities Agency (ACOA). It is based on applying CSA's overall regional distribution targets to the project, and will require bidders to apply these targets on a "best efforts" basis. The prime contract includes a requirement for 70% Canadian content, excluding launch services.

Given the past difficulty in achieving the targets in Atlantic Canada, a minimum of 3.5% benefits has been set for that region. The prime contract includes reporting obligations and performance measures as well as financial penalties for not meeting the minimum Atlantic Canada content.

CSA will continue to work closely with Industry Canada and ACOA to monitor regional distribution achievements and to support the prime contractor in the delivery of the given targets.

James Webb Space Telescope

Description

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

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

The JWST is scheduled for launch in 2013. JWST instruments will be designed to work primarily in the infrared range of the electromagnetic spectrum, with some capability in the visible range. JWST will have a large mirror, 6.5 meters in diameter and a sunshield the size of a tennis court that will both fold up and open once in outer space.

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

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

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

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

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

The major milestones, by phase, are the following:

Phase	Major Milestones	Date
A	Requirement Definition	2003-2004
B	Preliminary Design	August 2004 to May 2005
C	Detailed Design	July 2005 to September 2008
D	Manufacturing/Assembly; Integration/Testing; Pre-launch preparations, Launch/System Commissioning	May 2007 to November 2013
E	Operations	2013-2014 to 2018-2019

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

Progress Report and Explanation of Variances

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

Overall, the Fine Guidance Sensor with the Tunable Filter Instrument contribution is technically very challenging and proved to be more complex than envisioned by the CSA and the prime contractor at the time the substantive estimates were generated. Extremely tight tolerances on the optics combined with the need for reliable and precise mechanisms that must operate in a harsh cryogenic temperature environment required more design and testing effort than was originally envisaged. The full complexities of the FGS became evident during the Phase C, after the first of the two-planned Critical Design Reviews (CDR). The first CDR, held in March 2007, for the guider function of the FGS, did reveal some technical issues, which required additional effort to resolve. This Review took place after the Effective Project Approval (EPA) received in February 2007. After this first CDR, with the focus now turning toward the preparation of the system level CDR, new issues became apparent requiring additional analysis. Testing of the Tunable Filter Imager prototype also revealed technical issues that needed to be addressed. The manufacturing of the FGS will continue in 2009 and will be delivered to NASA in 2010.

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

Industrial Benefits

As of January 2009, the CSA has funded $50.6 million worth of work to Canadian industry directly attributable to the JWST-FGS Major Crown Project. Direct industrial benefits from the construction of the JWST-FGS and TFI system will benefit central regions of Canada. Although there is no regional distribution requirement for this project, the following table provides an approximate distribution:

Regional Distribution of JWST Contracts
(as of March 2008)

Program	Ontario	Quebec	Total Canada	Foreign
JWST-FGS and TFI	78%	5%	83%	17%

Summary of Non-Recurring Expenditures ($ in millions)
(as of March 2008)

Program	Current Estimated Total Expenditure	Forecast to March 31, 2008	Planned Spending 2008-2009	Future Years
JWST-FGS and TFI	134.7	64.3	31.8	38.6

Citizenship and Immigration Canada



Status Report on Major Crown Projects

Global Case Management System

Description:

The Global Case Management System (GCMS) is a multi-year program that will replace several aging, archaic and incompatible core business systems of Citizenship and Immigration Canada (CIC) and the Canada Border Services Agency (CBSA). The GCMS is an essential secure technology platform upon which to build a modern, global, integrated, information-based solution that will strengthen program integrity, improve efficiency and enhance client service delivery.

The GCMS will establish the next-generation business operational environment, and improve flexibility to adapt to future legislative and major program initiatives (such as biometrics). The GCMS will also facilitate communications and data sharing with the CBSA and with our other partners for the purposes of administrating the Immigration and Refugee Protection Act (IRPA).

Project Phase:

Building on the success of the first deployment of the GCMS in 2004 (the Citizenship Release), strategies for completing the projects were re-evaluated and a revised go-forward plan was prepared that reduces risk and delivers considerable business value. The GCMS is currently in the development phase for the second release, which will be oriented towards the immigration business line.

Leading and Participating Departments and Agencies

Lead Department	Citizenship and Immigration Canada
Participating Agency	Canada Border Services Agency
Contracting Authority	Public Works and Government Services Canada
Prime Contractor	None (The Department is responsible for system integration.)

Major Milestones	Date
Treasury Board approves funding for the GCMS project at the same time as CIC’s Treasury Board submission on the implementation of policy reforms and the new IRPA.	August 2000
Treasury Board grants Preliminary Project Approval and major Crown project designation to the GCMS.	March 2001
Treasury Board grants Effective Project Approval (EPA) to the GCMS.	January 2002
Request for proposal for the acquisition of a commercial, off-the-shelf software package for case management posted for tender by Public Works and Government Services Canada.	February 2002
Contract for the off-the-shelf software package for case management awarded.	March 2003
Treasury Board grants amended EPA to the GCMS to address the impact of procurement delays.	October 2003
The first GCMS business component (Citizenship) is implemented.	September 2004
Treasury Board grants a second amendment to the EPA to address the impact of cumulative slippage, include critical new requirements in project scope, and provide for an incremental deployment approach.	September 2005
Completion of a System Under Development audit of the GCMS project.	November 2005
Treasury Board grants a third amendment to the EPA to address a wording anomaly with regard to the GST.	December 2006
Independent review indicates the need to assess project status and review options for completing GCMS objectives.	December 2006
Treasury Board grants a fourth amendment to the EPA to undertake this assessment and to develop a revised go-forward plan.	February 2007
Treasury Board grants a fifth amendment to the EPA, extending the time frame for completion of a substantive go-forward plan to late fiscal 2007–2008.	October 2007
Independent review validates project’s recovery plan and project team’s readiness to deliver.	December 2007
Treasury Board grants a sixth amendment to the EPA with a reduced scope for the second release of GCMS.	August 2008
Deployment of GCMS Release 2 to first international mission	June 2010

Progress Report and Explanation of Variances

• The GCMS has faced its share of challenges, adding to the cost and time needed to complete the project:
  • an overly ambitious scope at the beginning of the project;
  • a change of government direction to commercial off-the-shelf software;
  • a need to respond to increased security risks post-9/11 while respecting privacy;
  • new legislation (IRPA), representing a major change in the administration of the immigration system;
  • the introduction of the Permanent Resident Card; and
  • a significant change in responsibility with the creation of the CBSA in 2003.
• Preliminary Project Approval was obtained from Treasury Board on March 1, 2001, with a planned cost of $194.8 million (excluding GST).
• An EPA was obtained from Treasury Board on January 31, 2002, with a planned cost of $194.8 million (excluding GST) and a completion date of March 31, 2005.
• On October 9, 2003, Treasury Board increased the project spending authority from $194.8 to $202.6 million (excluding GST). The $7.8 million variance was approved to address the impact on activities and resources of the decision to use a commercial software package rather than develop one in-house. The lengthy competitive procurement and contracting process delayed the project by nine months and pushed back the overall project completion date to December 31, 2005.
• On September 29, 2005, Treasury Board approved a second increase in the amount of $40.2 million (excluding GST) over two additional fiscal years, bringing the total project spending authority to $242.8 million (excluding GST) and extending the project to 2007–2008. This increment was granted to cover costs associated with new requirements resulting from an increased focus on national security post-9/11 and the division of responsibility across two organizations for the administration of IRPA in December 2003, and to make the necessary adjustments to the system’s functionality based on lessons learned with the first deployment of the GCMS in September 2004.
• On February 8, 2007, a further increase of $48.1 million in spending authority was approved by Treasury Board to reflect the GST in project estimates, undertake an assessment of the project status and consider alternative options for completing the GCMS objectives. This brought the total authority to $290.9 million (including GST).
• Results of the project quality verification and options analysis indicated that the project scope and complexity must be reduced and focus placed on first delivering the business components of greatest value.
• On October 18, 2007, Treasury Board granted an extension of the project authority to March 31, 2008, to provide the time frame needed to advance business requirements to the level necessary to develop a reliable cost and schedule estimate for the recommended path forward. There was no cost increase with this approval.
• Forecasted expenditures up to March 31, 2008, indicate shortfalls in funding have been covered by CIC internally reallocating a total of $58.6 million and CBSA contributing $8.1 million for its share of the costs.
• An amended EPA submission of February 2008, providing a substantive plan to complete the project, was deferred pending a broader review of major Crown projects. To allow time for the process to unfold, project authority was extended beyond March 31, 2008, within the previously approved level.
• On July 29, 2008, Treasury Board met to discuss the GCMS. Approval was granted through an addendum in August 2008 for an extension of the project authority to March 31, 2011, and an increase of the total authority to $387 million (including GST). Consistent with recommendations from independent reviews conducted between December 2006 and December 2007, the project will be completed with a reduced scope focusing on systems used by operations overseas.

Temporary Residents Biometrics Project

Description:

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

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

Project Phase:

The Temporary Residents Biometrics Project is currently in the initiation phase. Final Treasury Board submission documents are being submitted in early 2009 for Preliminary Project Approval.

The planning phase will define the solution, and the approaches and plans for implementing it. A critical first step is the clear definition of a set of comprehensive business and supporting infrastructure requirements agreed to by all partners. Requirements will then be used to define the business solution and how it will work (functional design), how technology will enable the solution (technical design), and how all the pieces fit and work together (supporting architectures).

Substantive plans and strategies for completing the project and managing the business change will be developed, culminating in a submission to obtain Effective Project Approval.

Leading and Participating Departments and Agencies

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor
Major Subcontractor(s) The project to date has had one editorial contract, one planning and scheduling contract and one application architect contract.	Brainhunter Carling Executive Park 1545 Carling Ave. Suite 600 Ottawa, ON K1Z 8P9 Cornerstone Word Company 19 Glen Avenue Ottawa, ON K1S 2Z6 CGI 275 Slater Street, 14th Floor Ottawa, Ontario K1P 5H9

Major Milestones

Date	Major Milestone
2010	Effective Project Approval
2011	Phase 1 Deployment – 15% of clients enrolled abroad
2012	Phase 2 Deployment – 50% of clients enrolled abroad
2013	Phase 3 Deployment – 100% clients enrolled and verified
2013	Project Shutdown

Progress Report and Explanations of Variances

Funding was included in Budget 2008 to enhance and strengthen identity management within the Temporary Resident Program, allowing overseas visa officers and border service officers at 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.

The project is currently working with a tight budget allocation and is proceeding as planned and on budget.

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 between the desire to welcome newcomers to Canada and the obligation to protect the health, safety and security of Canadian society must be maintained. Criminals, terrorists and other known inadmissible persons must not be allowed to enter or stay in Canada.

Fisheries and Oceans Canada



Status Report on Major Crown Projects

 

Table of Contents

Mid-Shore Patrol Vessels (MSPV)

Offshore Fisheries Science Vessels (OFSV)

Offshore Oceanographic Science Vessel (OOSV)

Polar Icebreaker Project

 

 

Mid-Shore Patrol Vessels (MSPV)

Description:

The Mid-Shore Patrol Vessels project will acquire up to twelve (12) Mid-Shore Patrol Vessels (MSPV) for the Canadian Coast Guard (CCG) Fleet — eight (8) for Fisheries Conservation and Protection (C&P) duties and four (4) for Maritime Security duties. This project serves two purposes: 1) Fleet Renewal — the acquisition of C&P patrol vessels represents the first step in modernization of the CCG fleet and will ensure the integrity of the fishery monitoring program and will provide the capacity for DFO to support the strategic role in fisheries enforcement; 2) Maritime Security — the acquisition of MSPV for Maritime Security will allow CCG, in conjunction with the RCMP, to respond to the Government's commitment to enhance the security of the nation's coasts and waterways.

 

Project Phase:

The MSPV Project is currently in the Implementation phase.

 

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments or Agencies	Industry Canada (IC); RCMP; Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada; Public Safety Canada; Department of National Defence (DND).

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	August 2005
Effective Project Approval (EPA)	June 2006
1st Request for Proposal (RFP) (cancelled)	July 2007
Amended Effective Project Approval — to include 4 additional vessels identified in Budget 2007	December 2007
2nd RFP issued (cancelled)	August 2008
3rd RFP to be issued	Early 2009
Target Contract Award	Fall 2009
First Vessel Delivery	Fall 2011
Last vessel delivery for MSPV	Summer 2014

 

Progress Report and Explanations of Variances

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

The second RFP was issued in December 2007. Bids received in response to the second RFP exceeded the anticipated costs. This second RFP was also cancelled. A 3rd RFP is scheduled to be issued in early 2009.

Industrial Benefits

Canadian industry in the following regions of Canada will benefit from this project: The RFP requires overall Industrial Benefits equal to 100% of contract value. Regional distribution will be determined at contract award.

 

Mid-Shore Patrol Vessels

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2009	Planned Spending 2009-2010	Future Years' Requirements
212.5	10.6	8.6	193.3

 

Offshore Fisheries Science Vessels (OFSV)

Description:

The Offshore Fisheries Science Vessels (OFSV) project will acquire three (3) OFSV for the Canadian Coast Guard (CCG) Fleet. The OFSV will replace three (3) 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 OFSV Project is currently in the definition and design phase.

 

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada (IC); Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada.

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	October 2005
Amended PPA	November 2006
Effective Project Approval (EPA) — Target Date	2009
Contract Award	2009
First Vessel Delivery	2011
Delivery of last OFSV	2014

 

Progress Report and Explanations of Variances

Federal Budget 2005 allocated funding for two (2) Offshore Fisheries Science Vessels (OFSV). Subsequently Budget 2007 announced additional funding for one (1) additional vessel, for a total of three (3) OFSV. The OFSV project is currently refining the cost estimate in order to obtain Effective Project Approval (EPA).

Industrial Benefits

Canadian industry in the following regions of Canada will benefit from this project.

Regional distribution will be determined at contract award.

 

Offshore Fisheries Science Vessels

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2009	Planned Spending 2009-2010	Future Years' Requirements
279.5	3.0	13.9	262.6

 

Offshore Oceanographic Science Vessel (OOSV)

Description:

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

 

Project Phase:

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

 

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments or Agencies	Industry Canada (IC); Environment Canada; NRCan; Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada.

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	July 2008
Effective Project Approval (EPA) and Authority to Contract — Target Date	Spring 2010
Contract Award	Fall 2010
Delivery of Offshore Oceanographic Science Vessel	2012

 

Progress Report and Explanations of Variances

Federal Budget 2007 allocated funding for the replacement of the CCGS Hudson with a new Oceanographic Science Vessel (OOSV). The OOSV project is currently finalizing a substantive cost estimate in order to obtain Effective Project Approval (EPA).

Industrial Benefits

Canadian industry in the following regions of Canada will benefit from this project.

Regional distribution will be determined at contract award.

 

Offshore Oceanographic Science Vessel

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2009	Planned Spending 2009-2010	Future Years' Requirements
108.9	0.8	2.0	106.1

 

Polar Icebreaker Project

Description:

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

 

Project Phase:

The Icebreaker Project is currently proceeding to obtain Preliminary Project Approval in 2009.

 

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments or Agencies	Industry Canada (IC); Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada; Environment Canada; National Defence (DND).

 

Prime and Major Subcontractor(s)

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

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	Spring 2009
Effective Project Approval (EPA) — Target Date	TBD
Contract Award	TBD
Vessel Delivery	2017

 

Progress Report and Explanations of Variances

Federal Budget 2008 allocated funding for the replacement of the Canadian Coast Guard's largest, most capable heavy Arctic icebreaker, the CCGS Louis S. St-Laurent. The project is currently in the process of developing Preliminary Project Approval documentation.

Industrial Benefits

Canadian industry in the following regions of Canada will benefit from this project.

Regional distribution will be determined at contract award.

 

Polar Icebreaker

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2009	Planned Spending 2009-2010	Future Years' Requirements
$800.0 ($720 accrual)	0.0	13.0	$787.0 ($720 accrual)

Health Canada



Health Information and Claims Processing Services (HICPS) Major Crown Project

Description: HICPS is the key delivery mechanism for the adjudication and payment of pharmacy, medical supplies and equipment, and dental benefits under Health Canada’s Non-Insured Health Benefits (NIHB) Program.  HICPS supports the delivery of much-needed health benefits for over 790,000 eligible First Nations and Inuit clients.  The HICPS includes a full range of claims processing and payment services; provider audit services; provider registration; and communications services.  In fiscal year 2007/08, a total number of 24,631 active NIHB providers were registered with the HICPS claims processor and, during this time, more than 17 million claim lines were processed through HICPS.

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

Project Phase:

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

Overview - The HICPS Project Implementation phase will terminate in December 2009 with a project evaluation.  The new adjudication system will be put into operation on December 1, 2009.

Leading and Participating Departments and Agencies

Lead Department: Health Canada

Contracting Authority: Public Works and Government Services Canada

Participating Departments: Indian and Northern Affairs Canada

Prime and Major Subcontractors

Prime Contractor: ESI Canada, Mississauga, Ontario, Canada

Major Subcontractor: Resolve Corporation, Toronto, Ontario, Canada

Major Milestones

Initial meetings with Contractor, coordination of implementation phase project plan

Date

Contract Award (December 4, 2007 through January 2008)

Major Milestones

Business Requirements Gathering and Design

Date

February 2008 to August 2008

Major Milestones

HICPS Development

Date

September 2008 to April 2009

Major Milestones

HICPS Testing and Acceptance

Date

May to September 2009

Major Milestones

Documentation, Simulations, Validation, Data Conversion and Training

Date

September 2009 to November 2009

Major Milestones

HICPS Implementation (ESI Canada officially takes over real-time service provision)

Date

December 1, 2009

Major Milestones

Evaluation of the HICPS Project and lessons learned

Date

December 2010 to March 2011

Progress Report and Explanations of Variances: Following the contract award to ESI Canada on December 4, 2007, Health Canada has undertaken joint project planning with ESI Canada. The HICPS Major Crown Project has progressed to date in accordance with the established project milestones.  The business requirements gathering phase was completed in August 2008 and the system and service development phase is well underway.  Health Canada is also working with ESI and the current contractor in order to ensure a smooth transition of the operations between the two organizations on December 1, 2009.

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

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

Industry Canada



Status Report on Major Crown Projects

Not applicable.

National Defence



TABLE 8: STATUS REPORT ON MAJOR CROWN PROJECTS

AIRLIFT CAPABILITY PROJECT – STRATEGIC (ACP-S)

AIRLIFT CAPABILITY PROJECT – TACTICAL (ACP-T)

ARCTIC/OFFSHORE PATROL SHIP (AOPS)

ARMOURED PERSONNEL CARRIERS (APC)

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM (CCMP)

CANADIAN FORCES SUPPLY SYSTEM UPGRADE (CFSSU)

CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER (CFUTTH) PROJECT

CANADIAN SEARCH AND RESCUE HELICOPTER (CSH) PROJECT

FIXED-WING SEARCH AND RESCUE (FWSAR)

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

INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION  AND RECONNAISSANCE (ISTAR)

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)

 

AIRLIFT CAPABILITY PROJECT – STRATEGIC (ACP-S)

Description: The objective of the Airlift Capability Project - Strategic is to acquire four new aircraft that will provide the global reach and speed necessary to operate effectively over long distances to deliver personnel and cargo directly into a theatre of operations, including a threat environment.

Project Phase: Implementation. All four aircrafts have been accepted on schedule and Close-Out is expected for Spring 2010.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor

The Boeing Company, St-Louis, Missouri, USA

Major Milestones

Major Milestone	Date
Synopsis Sheet (Effective Project Approval)	June 2006
Advanced Contract Award Notice Posted on MERX	July 2006
Contract Award	February 2007
Delivery First Aircraft	August 2007
Delivery Second Aircraft	October 2007
Delivery Third Aircraft	March 2008
Delivery Fourth Aircraft	April 2008
Initial Operational Capability (IOC)	October 2008
Full Operational Capability (FOC)	Summer 2009
Project Close-out	Spring 2010

Progress Report and Explanations of Variances:  The project received Effective Project Approval from Treasury Board in June 2006 for the purchase of four Strategic aircraft, setup of in-service support for 20 years, ancillary contracts and project office. The contract with the Boeing Company for the Direct Sales Contract was established in February 2007. A Foreign Military Sales case for worldwide in-service support was established in January 2007 through the United States Air Force to Boeing. All four aircrafts have been accepted on schedule and have already completed several operational missions. The project office is currently working on the Implementation Phase in support of this acquisition.

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

AIRLIFT CAPABILITY PROJECT – TACTICAL (ACP-T)

Description: The objective of the Airlift Capability Project – Tactical is to ensure a continued tactical airlift capability. In combination with the Fixed Wing Search and Rescue project, this project will replace the Canadian Forces’ ageing CC 130E/H Hercules fleet. This project will provide the Canadian Forces with an assured and effective tactical airlift capability that allows the requisite operational flexibility and responsiveness to support international and domestic operations.

Project Phase: Implementation.  The ACP-T project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 C-130J-30 aircraft. Aircraft deliveries will commence no later than December 2010, with the final aircraft delivered no later than December 2012.

Leading and Participating Departments and Agencies

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

Leading and Participating Departments and Agencies

Prime Contractor

Lockheed Martin Corporation, Marietta, Georgia, USA

Major Milestones

Major Milestone	Date
Revised Preliminary Project Approval (PPA)	June 2006
Solicitation of Interest and Qualification (SOIQ)	August 2006
Issue of Request For Proposal (RFP)	August 2007
Effective Project Approval	December 2007
Contract Award	December 2007
First Aircraft Delivery	Fall/Winter 2010
Initial Operational Capability (IOC)	Fall 2011
Full Operational Capability (FOC)	Winter 2013/2014
Project Close-out	Spring 2014

Progress Report and Explanations of Variances: Under the agreement of the December 2007 contract award, Lockheed Martin Corporation is required to undertake an open and fair competitive solicitation for the provision of in-service support.  The outcome of this Contractor-led solicitation would be one of many deliverables from the contract and will form the basis of a negotiation for amendments to the contract to include in-service support provisions.  The in-service support effort will include contractor provided support to: logistics, engineering, maintenance, material, publications, maintenance training, test equipment and electronic information environment.

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

Industrial and Regional Benefits: This procurement will provide industrial regional benefits equivalent to 100% of the contracted value for both the capital acquisition and in-service support. For the in-service support portion, 75% of the contract value will be direct work performed by Canadian companies. Lockheed Martin Corporation will be required to identify, as specific work packages, 60% of the total acquisition commitment. These Industrial and Regional Benefits requirements will be negotiated and accepted by Industry Canada prior to the in-service support contract amendment signing.

ARCTIC/OFFSHORE PATROL SHIP (AOPS)

Description:  The Arctic/Offshore Patrol Ship (AOPS) project has been established in order to deliver to the Government of Canada a naval ice-capable offshore patrol ship to assert and enforce sovereignty in Canada’s waters including the Arctic. When the project completes, the six to eight fully supported AOPS delivered to the Canadian Forces will be capable of:

1. Conducting armed, sea-borne surveillance of Canada's waters, including the Arctic;
2. Providing to Government situational awareness of activities and events in these regions; and
3. Cooperating with other elements of the Canadian Forces and other Federal Government departments to assert and enforce Canadian sovereignty, when and where necessary.

Project Phase: Definition/Implementation

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

No prime contractor has been selected. Final selection of the prime contractor will occur at Effective Project Approval, planned for July 2010.

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval	May 2007
Release of Definition, Engineering, Logistics and Management Support Request for Proposals (DELMS RFP)	December 2007
DELMS RFP Close	February 2008
DELMS Contract Award	May 2008
Effective Project Approval (SS(EPA))	July 2010
Award of Implementation Contract	August 2010
Delivery of First Ship	Fall 2014
Initial Operating Capability (IOC) of First Ship	March 2015
Project Complete	March 2021

Progress Report and Explanations of Variances: The project continues to progress steadily since obtaining Preliminary Project Approval in May 2007. Treasury Board granted expenditure authority of $42.465M ($BY), full up including GST, for Definition Phase. Treasury Board also acknowledged the indicative full up cost of $3,231.7M ($BY) including GST, for acquisition. So far, no variances in cost estimates have been identified.

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

ARMOURED PERSONNEL CARRIERS (APC)

Description: The Armoured Personnel Carrier (APC) is essential for all foreseeable Canadian Forces roles, including territorial defence, UN peacekeeping and peace enforcement operations, other international commitments, and Aid of the Civil Power. The existing APC fleet does not meet the minimum operational requirements when compared to the modern, technically sophisticated weapons and vehicles Canadian soldiers encounter during operations. They suffer shortcomings in protection, self-defence capability, mobility, carrying capacity and growth potential. The APC Project is fielding a fleet of modern, wheeled, armoured personnel carriers. 651 Light Armoured Vehicles (LAV) III are to be procured in six configurations: Infantry Section Carrier, Command Post, Engineer, Forward Observation Officer, and TOW (Tube Launched, Optically Tracked, Wire Guided) Under Armour, and LAV III Less Kits.

Project Phase:  Implementation. All vehicles were delivered by October 2007 and construction activities for indoor accommodation are well under way. The project is scheduled for completion in March 2011.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor

General Dynamics Land Systems - Canada, London, ON

Major Milestones

Major Milestone	Date
Treasury Board approval	December 1995
Contract award	December 1996
First vehicle delivery	July 1998
Exercise of first option	July 1998
Exercise of second option	July 1999
Exercise of third option	July 1999
Last vehicle delivery	October 2007
Project completed	March 2011

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

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

In March 2004, Treasury Board authorized $129M for indoor accommodation for LAV III to facilitate regular maintenance and training programs, and prevent any deterioration that would result from outdoor storage. Construction will take place in six locations: Edmonton, Wainwright, Petawawa, Montréal, Valcartier, and Gagetown. Construction activities are wellunder way and are scheduled for completion in early 2011. The project can then close in March 2011.

Industrial Benefits:  This project includes the following overall industrial benefits, and regional and small business achievements:

Content	Benefits
Direct	$852.9M
Indirect	$742.9M
Total	$1,595.8M
Regional And Small Business	Benefits
Atlantic Canada	$151.4M
Québec	$150.6M
Western Canada	$155.0M
Small Business	$210.3M

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM (CCMP)

Description:  The Canadian Cryptographic Modernization Program (CCMP) is a 12-year program (fiscal year 2004-2005 to 2015-2016) that will modernize the Government of Canada’s aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada’s ability to establish secure communications both nationally and internationally. The CCMP Omnibus Project includes the following sub-projects:

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

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractors

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

Major Milestones

Project / Sub-project Major Milestone	Date
a. Preliminary Project Approval for the CCMP Omnibus Project	March 2005
b. Preliminary Project Approval for a CCMP Omnibus Project sub-project:  Classified Security Management Infrastructure	November 2006
c. Preliminary Project Approval for Classified Security Management Infrastructure Phase 1B Implementation and Phase 2 Definition	February 2008
d. Secure Voice/Telephone Re-key Infrastructure – Completed	2009
e. Classified Security Management Infrastructure – Phase 1A Completed	2010
f. Classified Security Management Infrastructure – Phase 1B Completed	2011
g. Secure Voice/Telephone Family – Completed	2011
h. Network Encryption Family – Completed	2011
i. Secure Mobile Environment – Completed	2012
j. Link Encryption Family – Completed	2013
k. Classified Security Management Infrastructure – Phase 2 Completed	2014
l. Classified Security Management Infrastructure – Phase 3 Completed	2016
m. Combat Identification Family – Completed	2016
n. Secure Radio Family – Completed	2016
o. CCMP Omnibus Project – Completed	2016

Progress Report and Explanations of Variances: In June 2007, the CCMP Senior Project Advisory Committee (SPAC) approved incorporating the Secure Mobile Environment sub-project into the CCMP Omnibus project.  This did not increase the CCMP funding envelope.

The following completion dates have changed from those recorded in the CCMP Omnibus Project PPA approved in March 2005. These changes were approved by the CCMP SPAC.

• Secure Voice Re-key Infrastructure project closure was moved from June 2007 to June 2009 when the scope of the project was expanded to include a new capability.
• Secure Voice/Telephone Family was completed for the majority of Government of Canada departments and agencies by September 2007; however, the end date has been moved to 2011 to ensure the coordination of additional software upgrades that the new secure phones require for interoperability and improved information protection.
• The timeline for the Link Encryption Family, originally planned in two Phases to be completed in 2016, has been compressed into one Phase to be completed in 2013.  This will result in equipment replacements being completed ahead of schedule.
• The CCMP schedule is dependent on the US Crypto Modernization and Key Management Infrastructure Programs.  Completion dates for the Combat Identification Family and Phases 2 & 3 of the Classified Security Management Infrastructure will be reviewed to keep them aligned with the US programs.

The CCMP is executing within its budget.

Industrial Benefits: N/A

CANADIAN FORCES SUPPLY SYSTEM UPGRADE (CFSSU)

Description: The Canadian Forces Supply System Upgrade (CFSSU) project will meet the future supply requirements of the Canadian Forces during all operational situations while effectively and economically managing the Department of National Defence inventory. The system will have an inherent flexibility to manage changes in force structure, size and all types of missions. The CFSSU project will employ information technology to modernize Canadian Forces military supply operations. Not only will this technology dramatically improve productivity, it will also enhance the capability for performance measurement, greatly increase asset visibility, and provide a powerful management tool for provisioning. Additionally, the new supply system will have a deployed capability. The deployed solution is complementing the existing September 2001 corporate implementation to Bases and Wings, as well as the November 2002 implementation, which include all remaining CFSS users, at home and overseas.

Project Phase: Close-Out. CFSS Deployed has been implemented on 17 ships as well as at two sites for CANSOFCOM.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor	EDS Canada Inc. Ottawa, Ontario, Canada
Major Sub-Contractors	Mincom Pty. Ltd. Brisbane, Australia ADGA Group Ottawa, Ontario, Canada

Major Milestones

Major Milestone	Date
Contract Award	January 1995
Initial Site Installation	December 1995
Warehouse Management Information System Delivery	July 1997
Test Development Centre Delivery	October 1999
Commence System Development	November 1999
Complete System Development	March 2001
Commence System Pilot	June 2001
Complete System Pilot	August 2001
Commence System Rollout	September,2001
Complete System Rollout	June 2003 (official acceptance)
project Close-out (E Status)	September 2004
project Close-out (I Status)	Spring 2009

Progress Report and Explanations of Variances: Treasury Board initially approved the CFSSU project with an estimated cost of $289.3M. The Treasury Board approved in April 2000, the de-scoping of certain functionality and an increase to project contingency funding of $9.8M. In addition, $5M was approved in order to permit DND the option of restoring the Distribution Resource Planning (DRP) component. The Implementation Phase of DRP was de-scoped and the project budget remained at $304.1M.

The CFSSU Project has been transferred from implementation to Close-out in September 2004. Close-out funding is $3.6M. On March 9, 2006, DND Program Management Board approved the usage of Close-out funds for the project; these funds are to be used until fully expended or the work is completed.

The CFSSU project is to be completed prior to Spring 2009.

Industrial and Regional Benefits

Region	Benefits
Atlantic Canada	$51M
Québec	$48M
Ontario	$26M
Western Canada	$105M
Unallocated	$10M
Total	$240M

CANADIAN FORCES UTILITY TACTICAL TRANSPORT HELICOPTER (CFUTTH) PROJECT

Description:  The purpose of the Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project is to acquire helicopters in support of national and international tactical aviation roles. The project supports the Land Force, Air Force, Canadian Expeditionary Force Command (CEFCOM) operations and Civil Emergency Preparedness, as well as a wide range of defence objectives. It has replaced three aging helicopter fleets – the CH118 Iroquois, the CH135 Twin Huey and the CH136 Kiowa. The Bell 412CF/CH146 was procured as a single role multi-mission helicopter capable of supporting a majority of the tasks previously undertaken by fleets it replaced. The operational requirements for the CFUTTH defined the principle task requirements to include the tactical lift of troops, logistical lift, reconnaissance and surveillance, direction and control of fire, aero-medical support and casualty evacuation, command and liaison, and communications assistance. These mission capabilities are employed in support of DND operational commitments, United Nations peacekeeping missions, and support to other Government Departments and Agencies, including aid of the civil power.

Project Phase: Implementation. The project has delivered 100 Bell 412CF/CH146 Griffons, a flight simulator, composite maintenance trainer, facilities, mission kits (including defence electronic warfare suites), as well as other equipment, documentation and services. It is scheduled for completion in November 2009.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Department	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

Prime Contractor	Bell Helicopter Textron Canada, Mirabel, QC
Major Sub-Contractors	Pratt & Whitney Canada, Montréal, QC BAE Systems Canada Inc., Montréal, QC CAE Ltd., Montréal, QC

Major Milestones

Major Milestone	Date
Contract Award	September 1992
Critical Design Review	April 1993
First Helicopter Delivery	March 1995
Simulator Acceptance	June 1996
Last Helicopter Delivery	December 1997
Project Completion	November 2009

Progress Report and Explanation of Variances:  This project received Government approval in April 1992 and Treasury Board approval in September 1992, with an original budget of $1.293B.  Following directed reductions to the project budget and by assuming certain performance risks, the project will be completed in November 2009 for approximately $200M less than the initial Treasury Board budget approval. Remaining work consists of modifying the CH146 to accommodate the Radar Laser Warning Receiver (RLWR) functionality as well as the implementation of the Single-Channel Ground and Airborne Radio System (SINCGARS) capability.

Industrial Benefits:  To date, Bell Helicopter has claimed $289.5M direct and $252.1M indirect industrial regional benefits, totalling $541.6M, representing 107% of the overall commitment. Bell Helicopter Textron Canada has committed to achieving $506.7M in Canadian value-added industrial regional benefits as follows:

Region	Cash Benefits
East	$10.0M
Québec	$420.2M
Ontario	$32.1M
West	$12.0M
Unallocated	$32.4M
Total	$506.7M

CANADIAN SEARCH AND RESCUE HELICOPTER (CSH) PROJECT

Description:  Maintaining a national search and rescue capability is a direct departmental objective. The purpose of the Canadian Search and Rescue Helicopter (CSH) project was to replace the CH-113 Labradors with a fleet of 15 new helicopters. The new helicopters have addressed the operational deficiencies of the CH-113 Labrador fleet and eliminated the supportability difficulties of the older airframes.  Given expected aircraft availability rates and a sufficient fleet size, continuous operations are anticipated well into the 21^st century.

Project Phase: Completed. As of July 2003, all 15 Cormorant helicopters have been delivered. Spare parts and infrastructure are in place to support operations. Initial training is complete. Effective Project Closure was achieved on the September 15, 2004, but some work is still ongoing and full completion is not expected before 2013.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Department	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

Prime Contractor	Agusta Westland International Limited (formerly E.H. Industries Ltd. (EHI)), Farnborough, United Kingdom
Major Sub-Contractors	GKN Westland Helicopters, United Kingdom Agusta Spa, Italy General Electric Canada Inc., Canada

Major Milestones

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

Progress Report and Explanation of Variances:  The project has procured the required aircraft spares, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for the four Canadian Forces search and rescue bases.  The project has also established and funded the first two years of an in-service support contractor for follow-on support.

The Cormorant has been operational at the squadrons in Comox, BC, Gander, NF, Greenwood, NS and Trenton, ON. However, CH149 operations at 424 Squadron in Trenton have been suspended temporarily due to the lack of aircraft availability and difficulty to maintain adequate aircrew training.

It should be noted that although Effective Project Closure was achieved on the September 15, 2004, some work is still ongoing and full completion is not expected before 2013. The milestones still outstanding are tied to a three year Technical Publication Revision Service which is not expected to begin until fiscal year 2012-2013, and a number of milestones related to outstanding aircraft deficiencies which are expected to take at least two years to address.

Industrial and Regional Benefits:  The contractor (AWIL) committed to providing direct and indirect industrial benefits valued at $629.8M, within eight years from the date of contract award. It is estimated that these benefits created or sustained roughly 5,000 person-years of employment in Canada, and that all regions of Canada benefited from this project. The contractor has completed its obligations to Canada in regard to Industrial and Regional Benefits under the CSH contract. Small businesses in Canada will also benefit from the project by the placing of $67.0M in orders. 

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

FIXED-WING SEARCH AND RESCUE (FWSAR)

Description: Fixed-wing SAR aircraft are needed to provide immediate assistance to distress cases within the 18 million square kilometre Canadian SAR area of responsibility.  Search and rescue activities are extremely demanding on the CF and their equipment.  The Canadian Forces currently uses a mixed fleet of Buffalo and Hercules aircraft to provide FWSAR service to Canadians.  The purpose of this project is to replace the CC115 Buffalo and CC130 Hercules currently providing the fixed-wing SAR capability from four Main Operating Bases with a fleet of new aircraft.

This replacement project will resolve deteriorating supportability and affordability issues associated with the older airframes, allowing for the continued provision of effective fixed-wing response and immediate assistance to SAR incidents within the Canadian SAR area of responsibility.

Project Phase: Definition.The FWSAR Major Crown Project will enter the project definition phase as soon as Preliminary Project Approval (PPA) is received from Treasury Board.

Leading and Participating Departments and Agencies

Lead Department	National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Department	Industry Canada

Prime and Major Sub-Contractors

Prime Contractor

TBD

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	Spring/Summer 2009
Effective Project Approval (EPA)	Spring 2010
Contract Award	Spring/ Summer 2010
First aircraft delivery	Spring/ Summer 2013
Last aircraft delivery	Spring/Summer 2015
Project Closure	Spring/Summer 2017

Progress Report and Explanations of Variances:The Definition Phase of the FWSAR project will start as soon as Preliminary Project Approval is received from TB.

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

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

Description:  The HCM/FELEX project is the principal component of the overall HALIFAX Class modernization (HCM) initiative. The project will plan and manage HALIFAX Class mid-life refits, acquire the major elements of the new combat system, and deliver stability enhancements, degaussing improvements and a Commander Task Group capability in four ships. As the Design Integration Authority for the HCM, PM HCM/FELEX is responsible for the ship level design integration of all elements of the HCM including any unique/specific engineering changes required to address integration requirements. To ensure that the overall modernization initiative is achieved in a timely, efficient and coordinated manner, the HCM/FELEX project will conduct overall design integration, coordinate schedules, manage inter-project risk, and manage equipment installation during the mid-life refits.  Major equipment acquisitions through HCM/FELEX will include a modernized Command and Control System, Multi-Link, Identification Friend or Foe Mode S/5, upgrades to the radars, new Electronic Support Measures System, upgrades to the Internal Communications system, and an upgraded Harpoon Weapon System. These acquisitions will both sustain current capability and contribute to the new littoral operations role of the HALIFAX Class.

Project Phase: Implementation. Implementation of the HCM/FELEX project will occur through three principal contracts:  two Multi-Ship Contracts (MSC) for docking work periods/refits and one Combat System Integration (CSI) contract to develop, procure and install the majority of the combat system elements of the project. Project completion is expected by January 2019.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

In-Service Support Contractor (Class Design Agent)	Fleetway Incorporated, Halifax, NS, Canada
Internal Communications System	DRS Flight Safety, Kanata, ON, Canada
Multi-Ship Contract (East)	Halifax Shipyard, Halifax, NS, Canada
Multi-Ship Contract (West)	Victoria Shipyard, Victoria, BC, Canada
Combat System Integration Contract	Lockheed Martin Canada, Montréal, QC, Canada

Major Milestones

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

Progress Report and Explanation of Variances:  In September 2008, Treasury Board granted Effective Project Approval and Expenditure Authority for the project. The total full-up project value, including GST, is $2,998M (BY).

Three qualified contractors were selected to receive Request For Proposals through a Solicitation of Interest Qualification process. During the RFP process, two of the potential bidders withdrew from the competition. The sole bid, from Lockheed Martin Canada (LMC), was compliant with all mandatory requirements and a risk assessment of its proposal indicated no unacceptable risks. The CSI contract was awarded to LMC in November 2008.

The HCM/FELEX Project is presently in its implementation phase and is currently within budget.

A Request for Proposal for the Multi-Ship Contracts (docking work periods and refits) resulted in two successful bidders, Halifax Shipyard on the east coast and Washington Marine Group (Victoria Shipyard) on the west coast.  Contracts were awarded to the two shipyards on 17 and 31 March 2008.

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

INTELLIGENCE SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE (ISTAR)

Description:  ISTAR is an omnibus project that received Treasury Board approval for definition phase activity in April 2003. The purpose of this project is to develop, deliver and evolve an integrated, interoperable, ISTAR capability that will improve the ability of commanders to visualize the operational area, manage sensors and information collection resources, and to plan and implement actions to successfully complete operational missions. The project will provide enhancements to existing capabilities and include the acquisition of new capabilities in the areas of communications, command and control and sensors. The project includes the acquisition of Unmanned Aerial Vehicles (UAV), Weapon Locating Sensors (WLS) and transformation or enhancement of existing sensor platforms to include Electronic Warfare (EW), Light Armoured Vehicle III, Coyote Reconnaissance Vehicle, Ground Based Air Defence, Geomatic support and Tactical Meteorology Systems. 

Project Phase: Implementation.  Early deliveries of ISTAR capabilities for Op ARCHER will continue during 2009 and the first sub-projects have achieved Full Operational Capability (FOC) in 2008 and are closing in 2009.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works & Government Services Canada
Participating Department	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

Prime Contractor for the UAV UOR Op Athena sub-project	Oerlikon Contraves Inc., Saint-Jean, QC
Major Sub-Contractor for the UAV UOR Op Athena sub-project	SAGEM SA, France
Prime Contractor for Beyond Line of Sight Satellite (BLOS) UOR Op ARCHER	ND Satcom, Germany
Prime Contractors for Mobile Electronic Warfare Team (MEWT) UOR Op ARCHER	Agilent Technologies, Ottawa, ON Digital Receiver Technology Inc, Maryland USA Signal Technology Associates Inc., Kanata, ON Xwave, Stittsville, Ontario
Prime Contractor for Mini UAV UOR Op ARCHER	Thales Canada, Ottawa, ON
Major Sub-contractor for the Mini UAV UOR Op ARCHER	Elbit Systems, Israel
Prime Contractor for Acoustic Weapon Locating System (AWLS) Op ARCHER	SELEX Sensors & Airborne Systems Ltd, Basildon Essex, United Kingdom
Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales (FMS)	US Army, USA
Light Weight Counter Mortar Radars (LCMR) – Foreign Military Sales (FMS)	US Army, USA

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval	April 2003
MND Approval TUAV Unforcasted Operational Requirements (UOR)	July 2003
Treasury Board Project Approval in Arrears UAV UOR Full Operational Capability Close-out	August 2005 April 2008 February 2009
Communications & Data Link Component Treasury Board Effective Project Approval Initial Operational Capability	December 2006 October 2009
Command and Control (C2) Treasury Board Effective Project Approval Initial Operational Capability	February 2008 October 2009
EW Sensors Treasury Board Effective Project Approval Phase 1 Amendment 1 (AL 1) Initial Operational Capability Full Operational Capability	November 2005 February 2008 March 2008 January 2013
In Service Sensors Enhancement Treasury Board Effective Project Approval	October 2009
Medium Range Radar Treasury Board Effective Project Approval	March 2010
WLS Acoustic Sensor Initial Operation Capability (IOC) Full Operational Capability	November 2005 March 2008 March 2009
Family of Mini UAV Treasury Board Effective Project Approval (UOR) Family of Mini UAV Treasury Board Effective Project Approval AL 1	November 2005 October 2009
Light Weight Counter Mortar Radar Effective Project Approval Initial Operation Capability (IOC) Full Operational Capability (FOC)	March 2007 March 2008 December 2009
Deliveries Complete all ISTAR sub-projects	September 2013
Project Completion	March 2014

Progress Report and Explanations of Variances:  ISTAR project staff is still managing the UOR procurement for Op ATHENA and Op ARCHER. The approval process is taking longer than forecasted. However, deliveries after effective approval are either on schedule or ahead of schedule. ISTAR initial operational capabilities have been procured and the overall project is expected to complete on the original schedule.

Delivery of equipment actually started with UORs in Op Athena, and final deliveries are scheduled out to 2013. The currently approved sub-projects in support of Op Athena and Op Archer are:

• UAV UOR Op Athena
• BLOS Op Archer
• MEWT Op Archer
• Mini UAV UOR Op Archer
• AWLS Op Archer 
• LCMR Op ATHENA
• Remote Viewing Terminal Op ATHENA

In addition, the Data Link Communications project received TB approval in December 2006 and PWGSC received TB contract approval for radios in February 2007. The FMS cases for 1,300 radios have been accepted and initialdelivery of equipment started in August 2008. In February 2008, TB approved the ISTAR Electronic Warfare and Command and Control sub-projects. Implementation has now started.

Industrial Benefits:  Industrial benefits from the ISTAR project to Canadian industry in Canada will be determined during the approval of the implementation procurement strategy for each sub-project.

JOINT SUPPORT SHIP (JSS)

Description: The JSS will maintain the Canadian Navy’s current naval task group logistic support, while ensuring that the Canadian Forces has an adequate, assured strategic sealift capability to allow it to deploy and sustain operations in support of government policy. It will also enhance Canada's capability for joint command and control of forces ashore. The ships will replace the two ageing Protecteur class support ships currently in service on the east and west coast.

Project Phase: Definition/Implementation

Leading and Participating Departments and Agencies

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

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

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval - (PPA)	November 2004
Invitation for Bids Posted on MERX	June 2006
Project Definition – Contract Award	December 2006
Preliminary Options Analysis	Ongoing

Progress Report and Explanations of Variances: On 22 August 2008, the Minister of Public Works and Government Services Canada (PWGSC) announced the termination of the procurement process to acquire three Joint Support Ships.

After receiving and evaluating the mandatory requirements for the Joint Support Ship Project from the bidders, the Crown has determined that both proposals were not compliant with the basic terms of the Request for Proposals (RFP).  Among other non-compliances, both bids were significantly over the established budget provisions of $1,575B for the Project Implementation (PI) Contract for the delivery of the JSS capability (3 ships).

The project will not be able to meet the original delivery dates for Initial Operational Capability (IOC) and Full Operational Capability (FOC) as planned (2013 and 2016 respectively).

PMO JSS staff is currently performing preliminary Options Analysis in support of the decision best suited to the procurement of Joint Support Ships. The analysis, of fundamental importance to progressing the project, entails a review of capability requirements, cost, and the resulting impact on technical specifications and schedule.

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

LIGHT UTILITY VEHICLE WHEELED (LUVW)

Description:  Light utility vehicles are highly mobile and essential to facilitating the tactical command of combat, combat support and combat service support units, to assist in the gathering and dissemination of information and to liaise within and between field formations.

The LUVW Project mandate is to replace Canadian Iltis vehicles with two separate vehicle acquisitions: 1,159 Standard Military Pattern (SMP) vehicles (Mercedes Benz G Wagon) with integrated logistic support and 170 Armour Protection Systems ($241.4M), for use by field force units; and 1,061 Militarized Commercial Off-The-Shelf (Mil COTS) vehicles (GM Silverado) ($65.4M) for use primarily by the Reserve Force for a total project cost of $306.8M.

Project Phase:  Implementation

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Department	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

Prime Contractor (Phase 1) SMP	Mercedes-Benz Canada (MBC), Toronto, ON
Prime Contractor (Phase 2) Mil-COTS	General Motors Defense Military Trucks, Troy, Michigan, USA

Major Milestones

Major Milestone (Phase 1) SMP	Date
Award of Contract	October 2003
First Full Production Delivery	February 2004
Final Production Delivery	November 2006
Effective Project Completion	November 2009

Major Milestone (Phase 2) Mil COTS
Award of Contract	October 2002
First Full Production Delivery	October 2003
Final Production Delivery	December 2004
Effective Project Completion	November 2009

Progress Report and Explanation of Variances:  The project is in full Implementation.  Outstanding issues are Amendment 2 to the SMP production contract and delivery of the Mil COTS battery disconnect switch kits.  The amendment to the SMP production contract is required to reflect the costs resulting from Design Change Requests (DCRs), as well as additional ILS publication requirements.  A contract valued at $1.71M (incl GST) was awarded to Kerr Industries on July 23, 2008 for the delivery of 1,061 battery disconnect switch kits.  These kits are required to isolate the electrical system and associated parasitic loads from draining the batteries when the vehicles are not in use.  Final delivery is scheduled for March 31, 2009, but it is anticipated that Canadian Forces (CF) Reserve units will not have the last of these kits installed by their local GMC dealership until November 1, 2009.

A contract valued at $1.87M (incl GST) for Special Tools and Test Equipment (STTE) was awarded to MBC on November 19, 2008.  Final delivery for STTE is scheduled for March 31, 2009.  It is anticipated that FOC will be declared by July 31, 2009, after all the STTE have been delivered to base maintenance facilities.  Once FOC has been declared, the project will begin the close-out process with effective project closure scheduled by November 1, 2009 to coincide with the final installation of the Mil COTS battery disconnect switch kits. Even with the above mentioned changes, the project is scheduled to close under the allocated funding of $298.4M.

The vehicle fleet has been affected by body cracks and inferior weapons station design and quality issues.  An agreement was reached to address vehicles with body cracks and those potentially at risk of developing future cracks.  Mercedes-Benz Canada has initiated a redesign of the weapons station to address these deficiencies, with the first two prototypes completed in January 2009. 

It is expected that the Long Term Support Contract (LTSC) will be awarded by June 2009.  The anticipated total value of the contract (one five year term, with two optional five years terms) is $99.9M (incl GST).

Industrial Benefits:  The industrial benefits are required for Phase 1 for a value 100% of the contract value. Latest report from Industry Canada indicates that Mercedes Benz Canada has exceeded the industrial regional benefit goals by $300M. There are no mandated industrial benefits for the Mil COTS contract. Industry Canada is working with MBC to identify regional components of the Industrial and Regional Benefits (IRBs) program under the Initial Support Contract (ISC). There will be an IRB requirement in the LTSC in the amount of 100% of the contract value.

LIGHTWEIGHT TOWED HOWITZER (LWTH)

Description:The Lightweight Towed Howitzer (LWTH) project is an element of the act domain in the Canadian Forces.  This project will bridge a key facet of the Army’s current indirect fire capability deficiency.  Specifically, the project will field twenty-five (25) M777 lightweight 155mm towed howitzers, each with a Digital Gun Management System (DGMS), and supported by improved ammunition and a modern truck.  These howitzers will augment the 12 M777 howitzers currently in-service.  These capability enhancements in terms of lethality, range, precision, mobility and digitization are needed to support future missions and tasks likely to be assigned to the Canadian Forces. 

Project Phase: Definition. The LWTH project entered the Definition Phase with the approval of Treasury Board on June 5, 2008.  Expenditure and contracting authority were also delegated to DND and PWGSC respectively for the M777 and DGMS acquisitions.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

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

Major Milestones

Major Milestone	Date
Identification Phase Approval – Identification Phase	January 2008
Preliminary Project Approval – Definition Phase	June 2008
M777 Foreign Military Sale (FMS) Agreement	November 2008
DGMS Contract Award (Planned)	April 2009
Effective Project Approval – Implementation Phase	June 2009
Initial Operational Capability	April 2011
Final Operation Capability	December 2012
Project Close-Out	June 2013

Progress Report and Explanations of Variances: Treasury Board approved the indicative total project cost of $278.282M (all costs are $BY including GST) in June 2008. At the same time expenditure authority of $3.466M was granted for the Definition Phase, $106.898M to acquire the M777 (including ancillary equipment and services), and $25.302M to acquire the Digital Gun Management System (including support).

The FMS Letter of Offer and Agreement (LOA) to procure 25 M777 howitzers and support equipment was signed in November 2008. Contracting work for the DGMS is ongoing and award is planned for April 2009.

The project intends to return to TB in 2009 for Effective Project Approval, which will include three components: M777 support, truck, and ammunition.

There are no cost variances to report.

Industrial Benefits: This procurement will provide industrial regional benefits for the capital acquisition of the howitzer and DGMS.  These Industrial and Regional Benefits requirements will be negotiated and accepted by Industry Canada prior to contract award.

MAIN BATTLE TANK (MBT)

Description:  The purpose of the Tank Replacement Project is to replace Canada's aging Leopard C2 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The Tank Replacement Project is divided into two phases.  Phase 1 consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBT), two Armoured Recovery Vehicles (ARV) and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBT from the Netherlands Government.  Phase 2 consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 tanks and armoured recovery vehicles into service with the CF.

Project Phase: Implementation. The project received Treasury Board (TB) approval for Phase 1 in March 2007 and will return to TB to seek Effective Project Approval (EPA) for Phase 2. The project is capped at $650M.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor for ARV upgrades Phase 1	Rheinmetall Landsysteme (RLS), Germany
Prime Contractor for MBT upgrades Phase 1	Krauss-Maffei Wegmann (KMW), Germany
Prime Contractor for loaned tanks	German Government
Prime Contractor for tank purchase	Netherlands Government
Logistic Support Arrangement	German Government
Phase 2 Contract(s) for MBT repair, overhaul, upgrades and ARV conversion.	TBD

Major Milestones

Major Milestone	Date
Treasury Board - Preliminary Project Approval (PPA)	March 2007
Phase 1 – Loan Agreement with German MoD	May 2007
Phase 1 - Contract to KMW for upgrades to Loaned tanks	May 2007
Phase 1 - Contract to RLS for upgrades to Loaned tanks	May 2007
Initial Operational Capability – (Phase 1)	August 2007
Phase 1 - Acquisition of tanks from Dutch Government	December 2007
Letter of Interest	April 2008
PPA Amendment approved by TB	June 2008
Price and Availability	February 2009
Treasury Board - Effective Project Approval (EPA)	June-July 2009
Full Operational Capability – (Phase 2)	December 2012
Project Closed-Out	December 2014

Progress Report and Explanations of Variances:  The imperative to upgrade and deploy the borrowed tanks into Afghanistan to meet the July 2007 Initial Operational Capability (IOC) date required some performance trade-offs.  Time was insufficient to develop, qualify, and implement a new passive armour solution and as a result, the 20 borrowed tanks deployed with new slat armour. Time was also insufficient to install air conditioning therefore a crew cooling vest solution was developed and implemented. Some Leopard 1 C2 tanks for use with implements remain in theatre as the Leopard 2 tanks are not designed to accept mine ploughs, dozer blades or mine rollers.

The work in support of the EPA submission has been initiated. The Letter of Interest announced the broad objectives of the Project and good response was received from Industry. The feasibility study with Industry was cancelled by PWGSC, and the technical study was completed using DND and Allied government resources. The Leopard 2 tank capabilities and the Canadian performance requirements have been identified. The team finalized the Price and Availability identifying the core deliverables. The Price and Availability responses will be used to develop the substantive costs and schedule information required for the Effective Project Approval submission. 

Industrial and Regional Benefits (IRB):  No IRBs are required for Phase 1. The IRB requirements for Phase 2 will be recommended by Industry Canada, as part of the EPA process.

MARITIME HELICOPTER PROJECT (MHP)

Description: The purpose of this project is to replace the CH124 Sea King with a fleet of 28 new fully equipped Maritime Helicopters bundled with a long-term In-Service Support contract and the modification of the HALIFAX class ships to accommodate the new Maritime Helicopters. This replacement will address the operational deficiencies of the current CH124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multi-purpose shipborne Maritime Helicopters for operations well into the 21st century.

Project Phase: Implementation. In November 2008, the project marked the four-year milestone in the Implementation Phase. The project focus is now shifting from design and engineering to aircraft manufacturing and assembly followed by flight tests and delivery of the aircrafts.

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor	Sikorsky International Operations Incorporated, Stratford, Connecticut, USA
Sub-Contractors	General Dynamics Canada, Ottawa, Ontario L-3 MAS Canada, Mirabel, Québec

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	June 2003
Invitations for Bids Posted on MERX	December 2003
Synopsis Sheet (Effective Project Approval) SS (EPA)	November 2004
Contract Award	November 2004
First Delivery	November 2010
Final Delivery	2013
Project Close-out	2014

Progress Report and Explanations of Variances:  In December 2008, following discussions to minimize delays in the planned delivery of the integrated Maritime Helicopter, the Government and Sikorsky agreed to a new schedule for the delivery of helicopters starting in November 2010, with delivery of enhanced helicopters commencing in July 2012.

Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on HMCS Montréal have progressed well and are on schedule. The first test flight of the Maritime Helicopter occurred on November 15, 2008. The project is currently running within its authorized budget.

Industrial Benefits: The Industrial Regional Benefits are equivalent to 100% of the contract value for the capital acquisition and more than 80% of the contract value for the In-Service Support.

Region	Capital Acquisition	In-Service Support
Atlantic Canada	$239.1M	$825.9M
Québec	$555.8M	$399.2M
Northern Ontario	$3.2M	$7.6M
Ontario (excluding Northern Ontario)	$924.3M	$1,073.2M
Western Canada	$210.6M	$181.4M
Unallocated	$10.0M	$105.7M
Total	$1,943.0M	$2,593.0M

MATERIAL ACQUISITION AND SUPPORT INFORMATION SYSTEM (MASIS)

Description: The mission of the Material Acquisition and Support Information System (MASIS) project is to provide a Department of National Defence (DND) integrated materiel acquisition and support information system that enables the cost-effective optimization of weapon/equipment system availability throughout the life cycle. The scope of MASIS includes all end-to-end information requirements within DND/CF related to the materiel acquisition and support functions which are comprised of systems engineering, integrated logistics support (ILS), equipment configuration, technical data management, asset management, maintenance management, project management, performance management, operational support, business management, decision support analysis and contract management.

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

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Definition Phase
Preliminary Project Approval - Expenditure Authority for Phase 1	June 1998
Contract Awarded for Prime Systems Integrator	December 1998
MASIS system - Go Live Phase 1 (202 Work Depot Montréal)	September 1999
Implementation Phase
Expenditure Authority (EPA) for Phases 2 and 3: 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 (EPA) 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 (EPA) for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army.	June 2007
Project Close-out	2012

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

The project follows a cyclical approval and delivery methodology. In December 2003, an additional $34.4M was approved to fund Phase 4 of the project, which has been completed. In June 2007, the MASIS project received Treasury Board approval in the amount of $170M for Phase 5. Phase 5 activities include the rollout of MASIS functionality to Army and Air Force. To date, Phase 5 activities are on budget and on time. Planned completion of project is within the 2012 timeframe.

Industrial Benefits: All industrial benefits are attributed to Ontario since all project expenditures occur in Ontario.

MEDIUM TO HEAVY LIFT HELICOPTER (MHLH)

Description: Over the last decade, the ability to move personnel and equipment by air has become a vital and growing capability requirement for the Canadian Forces in fulfilling a wide range of roles. Canadian Forces operational experience, particularly in current operational theatres, has highlighted the urgent need for medium to heavy lift helicopters to support land forces in a threat environment by quickly, efficiently and safely moving large numbers of personnel and heavy equipment from forward deployed bases, thus reducing their vulnerability to attack. Both at home and overseas, medium to heavy lift helicopters will provide the Government with a wider range of military options for addressing threats and emergencies beyond the Canadian Forces’ current helicopter fleets.

The Medium to Heavy Lift Helicopter project will deliver the medium to heavy lift helicopter capability to support land-based domestic and international operations and to support Army Training on the road to high readiness. The project will acquire a minimum of 16 helicopters, integrated logistic support and other related support elements.

Project Phase: Definition

Leading and Participating Departments and Agencies

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

Prime and Major Sub-Contractors

Prime Contractor

The Boeing Company, Philadelphia, Pennsylvania, USA

Major Milestones

Major Milestone	Date
Synopsis Sheet Preliminary Project Approval (PPA)	June 2006
Advanced Contract Award Notice Posted on MERX	July 2006
Effective Project Approval and Contract Award	June 2009
First ACAN Compliant Aircraft	March 2012
First MHLH	March 2013
Initial Operational Capability (IOC)	March 2014
Full Operational Capability (FOC)	March 2015
Project Close-out	March 2016

Progress Report and Explanation of Variances:  On March 11, 2008, a Request for Proposal was released to the Boeing Company. A proposal was received in July 2008. Reconciliation of work scope and cost, and challenges in arriving at mutually agreeable terms and conditions, have extended contract negotiations thereby pushing contract award to March 2009.

Industrial Benefits: This procurement will provide Industrial Regional Benefits equivalent to 100% of the contracted value for both the capital acquisition and integrated in-service support. The selected contractor will be required to identify, as specific work packages, 60% of the total acquisition commitment.   For the integrated in-service support portion, 75% of the contract value will be direct work performed by a Canadian company. These industrial and regional benefits requirements will be negotiated and accepted by Industry Canada prior to contract signing.

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT (MSVS)

Description: The Medium Support Vehicle System Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. The MSVS project will cost approximately $1.2 B (net of GST) and will deliver the following mix of vehicles:

1. 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.
2. medium-sized Militarized Commercial Off-the-Shelf (MilCOTS) vehicles:
   • Up to 800 commercial vehicles with militarized components, with options for an additional 500.
3. Special Equipment Vehicle (SEV) Kits:
   • Up to 1000 special equipment vehicle kits, with options for an additional 150.

Project Phase: Definition/Implementation

Leading and Participating Departments and Agencies:

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

Prime and Major Sub-Contractors: One prime contractor will be selected for each project component. Final selection of the prime contractors will occur through Revised Preliminary Project Approvals (Rev (PPAs)) for MilCOTS Vehicles, SEV Baseline Shelters and SMP Vehicles followed by Effective Project Approval (EPA) for SEV Kits.

Prime Contractor

Navistar Defence LLC, Warrenville, Illinois, USA

Major Milestones:

Major Milestones	Date
Preliminary Project Approval (PPA)	June 2006
Invitation for Bids Posted on MERX - MilCOTS Vehicles	November 2007
Invitation for Bids Posted on MERX - SMP Vehicles	Summer 2009
Invitation for Bids Posted on MERX - SEV Baseline Shelters	May 2008
Invitation for Bids Posted on MERX - SEV Kits	Early 2010
Rev PPA for MilCOTS Vehicles	December 2008
Rev PPA for SMP Vehicles	Fall 2010
Rev PPA for SEV Baseline Shelters	Spring 2009
EPA for SEV Kits	Early 2011
Contract Award - MilCOTS Vehicles	January 2009
Contract Award - SMP Vehicles	Fall 2010
Contract Award – SEV Baseline Shelters	Spring 2009
Contract Award - SEV Kits	Early 2011
First Delivery - MilCOTS Vehicles	Summer 2009
First Delivery - SMP Vehicles	Fall 2011
First Delivery - SEV Baseline Shelters	Early 2011
First Delivery - SEV Kits	Spring 2011
Delivery Complete - MilCOTS Vehicles	Fall 2010
Delivery Complete – SMP Vehicles	Summer 2013
Delivery Complete – SEV Baseline Shelters	Fall 2012
Delivery Complete - SEV Kits	Fall 2012
Project Close Out	Fall 2013

Progress Report and Explanations of Variances: In December 2008, PMO MSVS obtained Treasury Board expenditure authority for MilCOTS in the amount of $351.8M ($BY), plus GST and a Rev PPA for an indicative full-up cost estimate of $1.22B ($BY), plus GST for all components of the MSVS project.

1. MilCOTS - Agreement in Principle was reached in August 2008 with the single responsive bidder. Rev PPA and contract approval received in December 2008. Contract awarded in January 2009.
2. SEV Baseline Shelter – The SEV Baseline Shelter RFP was released to industry in May 2008 and the bid evaluation was completed in July 2008.  Negotiations with the single responsive bidder are planned for completion in Early 2009.  Rev PPA and contract award for this component is planned for Spring 2009.
3. SMP – A revised draft technical specification was posted in November 2008 for industry comment. The complete RFP is planned for release in Summer 2009.
4. SEV Kits – The SEV Kits RFP is scheduled for release in Early 2010.

Schedule delays have occurred and are attributed to delayed project approval and overall manning shortages. Cost variances have also occurred and are attributed to the receipt of single bids for MilCOTS vehicles and SEV Baseline Shelters with higher than anticipated price proposals, volatile raw material market and fluctuation in foreign exchange rates.

At this time, Project Close-out is anticipated for Fall 2013. A continuous risk management program has been implemented and costing efforts for the implementation phase are progressing.

Industrial & Regional Benefits: Industrial Regional Benefits (IRBs) equivalent to 100% of the contract value will be required for each project component.

MILITARY AUTOMATED AIR TRAFFIC SYSTEM (MAATS) PROJECT

Description:  A national air traffic system project to automate air traffic services has been initiated by Transport Canada (now NAV CANADA).  To ensure that military air operations continue to function effectively, remain compatible with the national system, and keep pace with these enhancements, the Department of National Defence and the Canadian Forces established the Military Automated Air Traffic System (MAATS) Project.  The project directly supports the defence objective of conducting air traffic control operations.

The MAATS project will provide the essential equipment and system interfaces necessary to automate data interchange between applications.  The project will deliver a stable, sustainable, and operational Air Traffic Management System (ATMS) while providing as much integration as possible with NAV Canada’s Canadian Automated Air Traffic System (CAATS).  Where equipment or system interfaces are not currently available, new equipment will be installed.  All existing Defence radar systems will be retained and interfaced to the MAATS as appropriate.

Project Phase:  Implementation

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works Government Services Canada
Participating Department	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

Prime Contractor	Raytheon Canada Limited, Richmond, BC NavCanada, Ottawa, ON
Major Sub-Contractors	Hewlett Packard Canada Ltd, Ottawa ON CVDS, Montréal PQ Frequentis Canada Ltd, Ottawa ON

Major Milestones

Major Milestone	Date
Treasury Board Effective Project Approval	July 1993
Contract Award	January 1994
Preliminary Design Review	September 1997 – May 2000
Critical Design Review	February 2001
Factory Acceptance Test (Closure)	January 2002
Initial Delivery (Montréal)	December 2003
Contract Complete (Last Payment)	December 2004
Approval received to disengage concurrent development with NAV CANADA project and pursue sustainable minimum military requirement	September 2006
Begin Software Development on Phoenix Systems	October 2006
Complete Phoenix NAMS II Development	October 2007
Initial Operational Capability  – First Wing Operational with NAMS II Equipment	October 2007
Full Operational Capability (FOC) – All Wings with delivered Equipment	June 2009
Begin project Close-out	July 2009
Project complete	April 2010

Progress Report and Explanation of Variances:  Treasury Board initially approved the project with an estimated cost of $179.2M.  The project funding was reduced by $15M following departmental review.  Partial return of funding was approved at the December 2003 Senior Review Board (SRB). Current departmental funding is $169.2M.

As briefed at SRB on June 30, 2006, the MAATS project objectives were declared unachievable within the existing funding envelope. Given a number of alternative options, the MAATS’ Project Management Office (PMO) recommended to cease MAATS development, and continue the project with the implementation of an “in-house” solution coined Phoenix.  With the support of the Chief of the Air Staff and ADM(Mat), the Project Management Board (PMB) concurred with the PMO’s recommendation on March 15, 2007.  MAATS’ PMO was directed to de-link the project from NAV Canada’s Civilian Automated Air Traffic System (CAATS); concentrate on the re-vitalization and integration of Air Traffic Controller (ATC) information sources at each of the seven wings (Comox, Cold Lake, Moose Jaw, Bagotville, Trenton, Greenwood and Goose Bay); keep military Instrument Flight Rules (IFR) operations at the Wings vice at two Military Terminal Control Centres; and pursue the development and fielding of the Phoenix solution. 

Since the approvals were received in July 2007, the Phoenix solution is well on its way upgrading the current Air Traffic Management System capability inclusive of the following sub-systems: the Radar Processor, the Navigational Aids and Meteorological Sub-System (NAMS), the Air Movement Statistics Package and the Flight Data System.  Phoenix is based on the proven Radar Processing Display System II (RPDS II), which was certified for Operational Airworthiness and built on standard commercial off-the shelf (COTS) hardware and open source software, thus keeping technical risk LOW.  Installation of Phoenix equipment (NAMS II) at 8 Wing Trenton was completed and Provisional Operational Airworthiness Clearance (POAC) was granted in October 2007, ahead of schedule. Actual close out activities, including a project completion report to Treasury Board will be completed in fiscal year 2009–2010.

Industrial Benefits:  Canadian industry in the following regions of Canada will benefit from the MAATS project.

Region	Cash Benefits
Atlantic Canada	1.6M
Québec	1.0M
Ontario	1.8M
Western Canada	45.8M
Unallocated	To be determined
Total	$50.2M

PROTECTED MILITARY SATELLITE COMMUNICATIONS (PMSC)

Description:  The Department of National Defence and the Canadian Forces require global communications that are secure, guaranteed and directly interoperable with our allies. The aim of the Protected Military Satellite Communications Project (PMSC) is to overcome current Canadian Forces interoperability and global command and control limitations. Upon completion, this project will enable long-range communications to deployed forces and facilitate their interoperability with allies.

Project Phase: Implementation. The PMSC project is being implemented in two phases with project completion expected for Winter 2017.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works and Government Services Canada
Participating Department	Industry Canada and its regional agencies

Prime Contractor and Major Sub-Contractors

Prime Contractor	United States Department of Defense
Major Sub-Contractors	To be determined

Major Milestones

Major Milestone	Date
Preliminary Project Approval	August 1999
Effective Project Approval	November 2003
Initial Terminal Delivery	Summer 2011
Initial Satellite Delivery	Summer 2012
Terminal Delivery Completed	Summer 2013
Project Complete	Winter 2017

Progress Report and Explanations of Variances:  The PMSC project is being implemented in two phases. In Phase 1 the satellites are being procured under the terms of a Memorandum of Understanding (MOU) with the United States Department of Defense (DOD) that guarantees Canadian participation in their Advanced Extremely High Frequency (AEHF) system. Definition studies for the terminal segment were completed in Phase 1. Under Phase 2, the terminal segment is being procured and will be installed and tested starting in 2011.

In August 1999, Treasury Board granted Preliminary Project Approval to the PMSC Project, with expenditure authority for the implementation of Phase 1 at an estimated cost of $252M and granted approval for the Department of National Defence to enter into a Military Satellite Communication (MILSATCOM) MOU with the US Department of Defense. The MOU was signed in November 1999.

In November 2003, Treasury Board granted Effective Project Approval to the PMSC Project, with expenditure authority for the Implementation of Phase 2 at an estimated cost of $300M.  The total cost is now estimated at $552M. The project is on budget.

Industrial Benefits:  Under Phase 1, the US Department of Defense has committed to a work share with Canadian industry proportional to our contribution.  Suppliers from both nations will be permitted to bid on project work. In Phase 2, the Senior Procurement Advisory Committee (SPAC) endorsed that Terminal acquisition and support will be procured through Foreign Military Sales with installation done through DND managed contracts. Industrial and regional benefits will be sought by Industry Canada at 100% of contract value.

SUBMARINE CAPABILITY LIFE EXTENSION (SCLE)

Description:  The Submarine Capability Life Extension (SCLE) project replaced the Oberon class submarine fleet with four existing British Upholder class (renamed Canadian Victoria class) submarines. The project will ensure that Canada preserves its submarine capability within the existing capital budget. The project supports Canada’s ability to conduct surveillance and control of its territory, airspace and maritime areas of jurisdiction, as well as Canada’s ability to participate in bilateral and multilateral operations.

Project Phase: Implementation. The project has delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews.  Canadianization of three platforms and twelve of seventeen associated projects have been completed.  The last platform (HMCS CHICOUTIMI) will complete Canadianization in December 2011 and the remaining five associated projects will be completed by project closure in March 2013.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting Authority	Public Works & Government Services Canada
Participating Department	Industry Canada and its regional agencies

Prime and Major Sub-Contractors

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

Major Milestones

Major Milestone	Date
Treasury Board Approval	June 1998
Main Contract Award	July 1998
Initial Support Contract Award	July 1998
Initial Operational Capability	April 2006
Full Operational Capability	December 2011
Project Close-out	March 2013

Progress Report and Explanation of Variances:  Effective Project approval was granted to the SCLE project in June 1998 at an estimated total cost of $812.0M (BY) net of GST. The expenditure ceiling was increased by $84.8M by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE.  SCLE project is currently expending to budget.

Canada has accepted all four Upholder submarines from the United Kingdom.   The operational status of each of these vessels is summarized below:

1. Her Majesty’s Canadian Ship (HMCS) Victoria is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Breton.  She is scheduled to undock in June 2009 and complete this activity in December 2009.
2. HMCS Windsor is currently undergoing an Extended Docking Work Period (EDWP) at Fleet Maintenance Facility (FMF) Cape Scott.  She is scheduled to undock in late 2009 and complete this activity in 2010.
3. HMCS Corner Brook is operational and is participating in various exercises and patrols.  Barring a six-month docking period in late 2009 she will remain operational until mid 2011.
4. HMCS Chicoutimi was handed over to Canada October 2, 2004. On October 5, 2004, while en-route to Canada, she had an electrical incident at sea that resulted in a fire and was returned to Canada via sealift.  Although some of the repairs have been completed, a decision was taken to delay the completion of the repair and Canadianization until EDWP.  This work package is scheduled to commence in 2010.

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

Industrial and Regional Benefits: This project will provide an estimated $200M in direct and indirect industrial benefits. This includes Canadian modifications to the submarines and the relocation of the simulators and trainers to Canada. A further $100M in industrial benefits has taken the form of waivers to provide industrial offsets in the United Kingdom for Canadian companies bidding on defence contracts.

WHEELED LIGHT ARMOURED VEHICLE - LIFE EXTENSION (WLAV-LE)

Description:  The Wheeled Light Armoured Vehicle – Life Extension (WLAV- LE) will address deficiencies in command, combat support and combat service support capabilities to ensure that the current fleets of wheeled armoured vehicles are capable of operating in the current and anticipated threat environment.  The WLAV - LE will improve the mobility, protection and capability of the in-service Bison fleets (primarily composed of Infantry Section Carriers (ISC)) through a life extension and conversion to command and support variants dedicated to the new LAV III and LAV-Recce (Coyote) fleets. The following capabilities will be provided in the 2004-2011 timeframe:

1. Conversion of the entire Bison fleet of 199 vehicles to 32 Ambulances, 16 Electronic Warfare, 4 Nuclear Biological and Chemical Defence, 32 Maintenance and Recovery Vehicle, 32 Mobile Repair Team, 83 Command, Control, Communications and Intelligence vehicles;
2. Provision of updated add-on armour packages for operations stock as a result of changes made to existing vehicles, to provide the crew and mission essential equipment with a basic level of protection; and
3. Sufficient Integrated Logistics Support to maintain the fleet for the first two years of operations.
4.  

Project Phase:  Implementation. Just over 50% of the Bison fleet has been converted.

Leading and Participating Departments and Agencies

Lead Department	Department of National Defence
Contracting authority	Public Works and Government Services Canada
Participating Departments and Agencies	Industry Canada and Atlantic Canada Opportunities Agency

Prime and Major Sub-Contractors
Bison Re-Role

Prime Contractor (6 variants)	DEW Engineering and Development ULC (DEW), Ottawa, ON
Prime Contractor (1 variant)	General Dynamics Land Systems – Canada (GDLS-C), London, ON

Major Milestones

Major Milestone	Date
Treasury Board Preliminary Project Approval	September 1996
Treasury Board Effective Project Approval	November 1998
Initial Contract Award with DEW	January 2003
Treasury Board Revised Effective Project Approval	September 2006
New Contract Award with DEW	May 2007
Contract Award with GDLS-C	October 2007
Implementation – Initial Operational Capability	March 2009
Implementation – Full Operational Capability	December 2010
Project completed	March 2011

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

Industrial Benefits:  There are no Industrial and Regional Benefits strategy associated with the WLAV LE Project.

The WLAV - LE is excluded from the Agreement on Internal Trade under article 508 - Exceptional Circumstances. The exceptional circumstance is related to the economic hardship facing the local economy from the closure of Canadian Forces Base Chatham New Brunswick. Based on Cabinet decision in July 1995, a portion of the work is to be carried out in the Chatham area (now defined as the Miramichi Region). It is a provision of the Contract with DEW Engineering and Development ULC that the work is to be done in the Chatham Area of the province of New Brunswick to the maximum extent possible and where cost effective to the Crown.

Public Works and Government Services Canada



Table 10: Status Report on Major Crown Projects

Parliamentary Precinct Project - West Block

Description:

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

Project Phase:

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

Phase 1 involves:

1. Emergency stabilization and rehabilitation of towers;
2. Repairs and conservation of the exterior masonry;
3. Fit-up of alternate accommodations in the La Promenade building and other locations for MPs, committee rooms and support services; and
4. The permanent relocation of the food production facility for Parliament Hill to a remote site.

Phase 2 involves*:

1. Fit-up of space for the relocation of Confederation Room 200 to the former Bank of Montreal building;
2. Asbestos abatement, interior demolition, and general rehabilitation of the West Block building; and
3. Associated infrastructure to support legislative functions during the renovation of the Centre Block, including a courtyard infill to accommodate Chamber activities, and provision of a security screening and material handling facility.

* Subject to additional funding

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

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

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Design consultant for the West Block renovation and fit-up project is ARCOP/FGM, architects in joint venture, 1244 Ste-Catherine Ouest, 3rd floor, Montreal PQ, H3G 1P1
Prime Contractor	Design consultant for the La Promenade fit-up project is KWC Architects Inc. 110 Argyle Avenue, Ottawa, Ontario K2P 1B4
Prime Contractor	General contractor for the La Promenade fit-up project is Pomerleau Inc., 220-343 Preston St. Ottawa, Ontario, K1S 1N4
Prime Contractor	General contractor for the North Towers stabilization and rehabilitation project is LM Sauve Masons, 451, rue Sainte-Catherine Ouest, suite 301 Montréal (Québec) H3B 1B1
Prime Contractor	General contractor for construction of the Food Production Facility for Parliament Hill is PCL Construction Ltd, 49 Auriga Drive, Nepean, Ontario, K2E 8A1
Prime Contractor	Design consultant for the Bank of Montreal rehabilitation project is NORR Architects and Engineers Ltd., 175 Bloor Street East, Toronto, Ontario, M4W 3R8

Major Milestones

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

*Subject to additional funding

Progress Report and Explanations of Variances

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

Stabilization:

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

• South East Tower masonry pilot project - completed.
• North Towers - construction started.
• Tower scaffolding - contract documents for the MacKenzie and Laurier Towers, completed. Work will be done in Phase 2 as part of the overall building envelope program, unless building condition demands an earlier start date*.
• Masonry Wall Investigation and Research Project - conducted with the Intelligent Sensing for Innovative Structures (ISIS) Canada and three Canadian universities. This initiative is nearing completion. The objective is to gain and share leading edge knowledge on seismic reinforcing methodologies for heritage masonry walls. PWGSC constructed masonry wall sections, similar to those used in our Parliament buildings, in the University of Calgary seismic laboratories, in order to simulate seismic events and assess the reaction of various reinforcement methodologies.

*Subject to additional funding

Swing space:

• La Promenade swing space - scope of the project consists of restoring the building and fitting up 62 MP suites and 3 committee rooms for parliamentarians. The demolition and building envelope remediation (Phase I) contract has been completed. The construction contract for the fit up package was awarded and construction has begun. As part of the design process, a mock up suite was constructed, tested successfully and approved by the House of Commons.
• Bank of Montreal Building, located at 144 Wellington Street - has been identified as the permanent alternate location for West Block's Confederation Room 200 functions. A major RFP was posted on MERX and a prime consultant contract for the main design work was awarded to Norr Architects and Engineers, 200 Tremblay Road, suite 152, Ottawa. Completion is scheduled for 2013*.
• Food Production Facility - will be permanently relocated off-site. Solicitation for a design build contractor was awarded to PCL Construction Ltd, 49 Auriga Drive, Nepean, Ontario, K2E 8A1 (Ottawa). Completion is scheduled for late 2009.

*Subject to additional funding

Industrial Benefits

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

Parliamentary Precinct Project - Wellington Building

Description:

The Wellington Building is located at 180 Wellington Street, across from Parliament Hill. It is a six-storey structure first built in 1925 and later enlarged in the 1950's by Metropolitan Life Insurance Company. The House of Commons has been the major tenant since the Crown expropriated the building in 1973. Renovations of the building are required to address health and safety issues, replace obsolete building systems and meet building code requirements. The building will be completely vacated during the renovations. This project is a key enabler of the West Block Building Program, as the Wellington Building will provide interim accommodations for the West Block Committee Rooms during its renovation. It will also provide interim office accommodations for parliamentarians during the restoration of the East and Centre Blocks.

Project Phase:

The work will be completed in two phases to expedite project delivery. Phase 1 will include interior demolition, asbestos abatement and seismic reinforcement work. Phase 2, dependent on additional funding, will include the restoration of the exterior envelope, renovation of the base building and fit-up the interior space. The planned start of construction is 2010. The entire renovation, including the ten committee rooms required to enable the West Block renovations, and the 69 parliamentary offices to facilitate both East and Centre Block renovations, are targeted to be complete in 2015. The current total cost estimate excluding swing space is $425.2 million (current dollars, excluding GST). Separate project approval has been received for alternate spaces at 181 Queen Street and 131 Queen Street.

Leading and Participating Departments and Agencies

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

Prime and Major Subcontractor(s)

Prime Contractor	Design consultant for the Wellington renovation project is NORR Architects and Engineers Ltd., 175 Bloor Street East, Toronto, Ontario, M4W 3R8

Major Milestones

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

*Subject to additional funding

Progress Report and Explanations of Variances

The prime consultant has been engaged and has progressed through the analysis of project requirements and the completion of the final functional program. Many occupants and functions have been relocated to locations including 181 Queen Street and 131 Queen Street. Alternate space locations for remaining occupants have been defined, and several of the key relocation projects have obtained Preliminary Project Approval.

Industrial Benefits

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

Pension Modernization Project

Description:

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

Project Phase:

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

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	EDS Canada Inc.99 Bank 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 Oracle Canada Inc. 50 O'Connor St., Suite 1301, Ottawa, Ontario K1P 6L2

Major Milestones

Major Milestone	Date
Preliminary Project Approval for completion of Project Definition	Completed May 2004
Approval of contract award	Completed October 2005
Contract Award	Completed November 2005
Completion of Project Definition	Completed June 2007
Effective Project Approval for Implementation	Completed June 2007
Implementation Phase
Implementation of Release 1.0 (Client Services)	Revised to December 2008
Implementation of Release 1.5 (Case Management and Imaging functions)	September 2009
Implementation of Release 2.0 (Contributor functions - except functions related to Service Purchase, Pension Benefits Division Act and Leave Without Pay)	February 2010
Implementation of Release 2.5 (Contributor functions related to Service Purchase, Pension Benefits Division Act and Leave Without Pay)	July 2010
Implementation of Release 3.0 (Annuitant and Accounting functions)	October 2011
Final maintenance transition	December 2011
Close-Out Phase	January 2012

Progress Report and Explanations of Variances

Project Definition Phase (completed June 2007):

• At Preliminary Project Approval, the Treasury Board approved the completion of the Project Definition Phase and funding in the amount of $18.742 million (excluding GST). The GCPMP completed this phase at a cost of $18.335 million, although there was a delay of approximately six months in obtaining Effective Project Approval.

Implementation Phase (in progress):

• At Effective Project Approval, in June 2007, the Treasury Board approved implementation of the GCPMP and funding in the amount of $184.750 million. The amount budgeted from June 2007 to September 30, 2008, was $94.899 million. Actual expenditures for implementation activities from June 2007 to September 30, 2008, are $42.853 million. The cost variance resulted from lower than estimated costs for Human Resources, operations, maintenance, and the delay in the Release 1.0.
• The GCPMP is currently involved in activities related to Releases 1.0, 1.5 and 2.0. Release 1.0 is six weeks behind schedule for the Siebel components and three months behind schedule for the telephone components. This represents a 8% schedule variance on 85% of the release's scope (Siebel components) and a 10% variance for the telephony components (remaining 15% of Release 1.0 scope).

Industrial Benefits

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

Royal Canadian Mounted Police



Table 10: Status Report on Major Crown Projects

Real Time Identification (RTID)

Description

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

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

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

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

Project Phase

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

Phase 2 will modernize the processes related to the management and update of the criminal records. Phase 2 is a large re-engineering effort and the replacement of antiquated legacy systems in support of the re-engineering effort. Phase 2 is planned to be delivered in 2010.

Leading and Participating Departments and Agencies

Lead Department	RCMP
Contracting Authority
Participating Departments

Prime and Major Subcontractor(s)

Prime Contractor	Fujitsu Consulting (Canada) Inc., 600-360 Albert Street, Ottawa ON K1R 7x7
Major Subcontractor(s)

Major Milestones

Major Milestone	Date
Automated Fingerprint Identification System and infrastructure to permit electronic fingerprint processing in production	March 2007
Electronic fingerprint processes for civil purposes implemented	March 2007
Electronic processing of latent (crime scene) fingerprints implemented	March 2008
Contract for Criminal Record Workflow Component of RTID System (Phase 2) awarded	February 2008
Criminal Record Workflow Component Implemented	2010
Project Closed	2010

Progress Report and Explanation of Variances

Phase 1 closed in September 2008. The development work for Phase 2 systems is underway and expected to be delivered in 2010.

Industrial Benefits

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