Section I: Organizational Expenditure Overview

ORGANIZATIONAL PROFILE

Appropriate Minister

The Honourable Harjit S. Sajjan, PC, OMM, MSM, CD, MP (appointed November 2015);
The Honourable Jason Kenney, PC, MP (from February to October 2015);
The Honourable Robert Nicholson, PC, QC, MP (from July 2013 to February 2015)

Institutional Head

Deputy Minister John Forster (appointed February 2015);
Deputy Minister Richard B. Fadden (from May 2013 to February 2015)

Chief of the Defence Staff

General Jonathan Vance, CMM, MSC CD (appointed July 2015);
General Tom Lawson, CMM, CD (from October 2012 to July 2015)

Ministerial Portfolio:

Enabling Instruments:

For further information, see the Legislation and National Defence 9 page on the Defence website.

Year of Incorporation / Commencement: 1923

Other: For further information, see the Department of National Defence and the Canadian Armed Forces website  10.

ORGANIZATIONAL CONTEXT

Raison d’être and Responsibilities

On behalf of the people of Canada, the Canadian Armed Forces (CAF) and the Department of National Defence (DND) stand ready to perform three key roles:

  • Defend Canada -  by delivering excellence at home;
  • Defend North America - by being a strong and reliable partner with the United States in the defence of the continent; and
  • Contribute to International Peace and Security - by projecting leadership abroad.

Released in 2008, the Canada First Defence Strategy (CFDS) 11 sets a detailed roadmap for the modernization of the CAF into a first-class military that can deliver on these roles. The Strategy also commits National Defence to the execution of six core missions:

  • Conduct daily domestic and continental operations, including in the Arctic and through the North American Aerospace Defense Command (NORAD);
  • Support a major international event in Canada;
  • Respond to a major terrorist attack;
  • Support civil authorities during a crisis in Canada such as a natural disaster;
  • Lead and/or conduct a major international operation for an extended period; and
  • Deploy forces in response to crises elsewhere in the world for shorter periods.

In 2014-15, National Defence successfully carried out the missions outlined in CFDS, while also accomplishing the defence activities highlighted in the 2014-15 Report on Plans and Priorities:

  • Pursued the Defence Renewal initiative, launched in October 2013, to ensure a modern Canadian military that is affordable and sustainable over the long-term;
  • Provided enhanced support to our ill and injured CAF members and their families, and ensure that they can access timely treatment for a variety of mental illnesses, including Post Traumatic Stress Disorder; and
  • Carried out the defence mission while ensuring sound financial management of the Defence budget and stewardship of public resources.

This Defence mandate is the responsibility of the Minister of National Defence (MND). The MND presides over the Department and over all matters relating to National Defence and the CAF, as established by the National Defence Act (NDA). He is assisted by the Deputy Minister (DM), who is appointed by the Governor-in-Council on the advice of the Prime Minister and is the MND’s most senior civilian advisor, authorized under the law to carry out, on the Minister’s behalf, many aspects of the management and direction of the Department. He is responsible for policy advice, departmental management, interdepartmental coordination, international defence relations, public service renewal, federal-provincial relations, and portfolio management. He is also an Accounting Officer under the Financial Administration Act and is accountable before Parliamentary Committees to provide explanations on matters for which he is responsible. The Chief of the Defence Staff (CDS) has direct responsibility for the command, control and administration of the CAF, and is appointed by the Governor-in-Council, on the advice of the Prime Minister. The CDS advises the MND on issues such as current and future military requirements, force capabilities, and possible courses of action and the military or operational consequences of undertaking (or failing to undertake) various military activities. The CDS is accountable to the MND for the conduct of all CAF activities, as well as for the readiness and the ability to fulfill military commitments and obligations undertaken by the Government. The CDS is also the advisor to the Prime Minister and Cabinet on major military developments and issues.

Strategic Outcomes and Program Alignment Architecture

The Government of Canada’s Management, Resources and Results Structure  12 (MRRS) is the foundation of a government-wide approach aimed at strengthening the management and accountability of public expenditures and clearly demonstrating results for Canadians. The Program Alignment Architecture (PAA) is part of the MRRS. Defence’s PAA shows how its programs align with the Department’s two strategic outcomes. Internal Services is a stand-alone program which defines activities and resources that support the organization’s program needs and corporate obligations.

Effective fiscal year 2014-15, Defence implemented a new PAA that more accurately represents and articulates the “Business of Defence”. It describes what Defence provides to and for Canadians while also illustrating how those effects are created and delivered. This revised structure better positions Defence to address program granularity and interdependencies required for strategic reviews and to institutionalize a “Management for Results” paradigm that supports the strategic management of Defence. It also provides a structure that better lends itself to conveying Defence’s performance story and demonstrating results.

Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values

  • 1.0  Program: Defence Combat and Support Operations
    • 1.1  Sub-Program: Domestic and Continental Defence Operations
      • 1.1.1  Sub-Sub-Program: Operations to Defend Canada Against Armed Threats
      • 1.1.2  Sub-Sub-Program: Ongoing Defence, Security and Sovereignty of Canada Operations
      • 1.1.3  Sub-Sub-Program: Ongoing Defence Operations through NORAD
      • 1.1.4  Sub-Sub-Program: Ongoing Continental Defence Operations in Cooperation with the United States
    • 1.2  Sub-Program: International Combat Operations
      • 1.2.1  Sub-Sub-Program: International Operations over Extended Periods
      • 1.2.2  Sub-Sub-Program: International Crisis and Surge Response Operations
      • 1.2.3  Sub-Sub-Program: Ongoing Defence Operations through Standing NATO Commitments
    • 1.3  Sub-Program: Ongoing Centralized Operations and Operational Enablement
      • 1.3.1  Sub-Sub-Program: Overarching Command and Control of Domestic and International Operations
      • 1.3.2  Sub-Sub-Program: Ongoing Defence Intelligence Operations
      • 1.3.3  Sub-Sub-Program: Operational Support Services
      • 1.3.4  Sub-Sub-Program: Military Diplomacy and Global Engagement
  • 2.0  Program: Defence Services and Contributions to Government
    • 2.1  Sub-Program: Disaster Relief and Humanitarian Operations
      • 2.1.1  Sub-Sub-Program: Domestic and Continental Assistance and Response Operations
      • 2.1.2  Sub-Sub-Program: International Humanitarian Assistance and Disaster Response Operations
      • 2.1.3  Sub-Sub-Program: Non-Combatant Evacuation Operations
    • 2.2  Sub-Program: Defence Services for Canadian Safety and Security
      • 2.2.1  Sub-Sub-Program: Counter Terrorism, Terrorism Event Response and Consequence Management Operations
      • 2.2.2  Sub-Sub-Program: Assistance to Major Canadian Event Operations
      • 2.2.3  Sub-Sub-Program: National Search and Rescue Program
      • 2.2.4  Sub-Sub-Program: Search and Rescue Operations
      • 2.2.5  Sub-Sub-Program: Defence Services to Other Government Departments and Agencies
      • 2.2.6  Sub-Sub-Program: Canadian Safety and Security Program
    • 2.3  Sub-Program: Military Heritage and Outreach
      • 2.3.1  Sub-Sub-Program: Military History, Heritage and Awareness
      • 2.3.2  Sub-Sub-Program: Youth Program

Strategic Outcome: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values

  • 3.0  Program: Defence Ready Force Element Production
    • 3.1  Sub-Program: Force Elements Readiness Sustainment
      • 3.1.1  Sub-Sub-Program: Maritime Roles - Readiness Sustainment
      • 3.1.2  Sub-Sub-Program: Land Roles - Readiness Sustainment
      • 3.1.3  Sub-Sub-Program: Aerospace Roles - Readiness Sustainment
      • 3.1.4  Sub-Sub-Program: Special Operations Roles - Readiness Sustainment
      • 3.1.5  Sub-Sub-Program: Joint and Common Roles - Readiness Sustainment
    • 3.2  Sub-Program: Force Elements Integration Training
      • 3.2.1  Sub-Sub-Program: Maritime Environment - Integration Training
      • 3.2.2  Sub-Sub-Program: Land Environment - Integration Training
      • 3.2.3  Sub-Sub-Program: Aerospace Environment - Integration Training
      • 3.2.4  Sub-Sub-Program: Special Operations - Integration Training
      • 3.2.5  Sub-Sub-Program: Joint - Integration Training
      • 3.2.6  Sub-Sub-Program: International and Domestic - Interoperability Training
    • 3.3  Sub-Program: Force Elements Production
      • 3.3.1  Sub-Sub-Program: Maritime Environment - Force Element Production
      • 3.3.2  Sub-Sub-Program: Land Environment - Force Element Production
      • 3.3.3  Sub-Sub-Program: Aerospace Environment - Force Element Production
      • 3.3.4  Sub-Sub-Program: Special Operations - Force Element Production
      • 3.3.5  Sub-Sub-Program: Joint and Common - Force Element Production
    • 3.4  Sub-Program: Operational Readiness Production, Coordination and Command and Control
      • 3.4.1  Sub-Sub-Program: Maritime Environment - Force Element Production, Coordination and Command and Control
      • 3.4.2  Sub-Sub-Program: Land Environment - Force Element Production, Coordination and Command and Control
      • 3.4.3  Sub-Sub-Program: Aerospace Environment - Force Element Production, Coordination and Command and Control
      • 3.4.4  Sub-Sub-Program: Special Operations Forces - Force Element Production, Coordination and Command and Control
      • 3.4.5  Sub-Sub-Program: Joint and Common - Force Elements Production, Coordination and Command and Control
  • 4.0  Program: Defence Capability Element Production
    • 4.1  Sub-Program: Military Personnel and Organization Lifecycle
      • 4.1.1  Sub-Sub-Program: Military Personnel - Regular Force Portfolio Management
      • 4.1.2  Sub-Sub-Program: Military Personnel - Reserve Force Portfolio Management
      • 4.1.3  Sub-Sub-Program: Military Personnel - Recruitment
      • 4.1.4  Sub-Sub-Program: Military Personnel - Transition and Release
      • 4.1.5  Sub-Sub-Program: Military Personnel - Professional Development Training
      • 4.1.6  Sub-Sub-Program: Military Personnel - Occupation Training
      • 4.1.7  Sub-Sub-Program: Military Personnel - Morale and Well Being
      • 4.1.8  Sub-Sub-Program: Military Personnel - Health Care
      • 4.1.9  Sub-Sub-Program: Organization - Security, Protection, Justice and Safety
      • 4.1.10  Sub-Sub-Program: Military Personnel and Organization - Strategic Coordination, Development and Control
    • 4.2  Sub-Program: Materiel Lifecycle
      • 4.2.1  Sub-Sub-Program: Materiel - Portfolio Management
      • 4.2.2  Sub-Sub-Program: Materiel – Acquisition
      • 4.2.3  Sub-Sub-Program: Materiel - Equipment Upgrade and Insertion
      • 4.2.4  Sub-Sub-Program: Materiel - Divestment and Disposal
      • 4.2.5  Sub-Sub-Program: Materiel - Engineering, Test, Production and Maintenance
      • 4.2.6  Sub-Sub-Program: Materiel - Inventory Management and Distribution
      • 4.2.7  Sub-Sub-Program: Materiel - Strategic Coordination, Development and Control
    • 4.3  Sub-Program: Real Property Lifecycle
      • 4.3.1  Sub-Sub-Program: Real Property - Portfolio Management
      • 4.3.2  Sub-Sub-Program: Real Property - Acquisition
      • 4.3.3  Sub-Sub-Program: Real Property - Divestment and Disposal
      • 4.3.4  Sub-Sub-Program: Real Property - Operations, Maintenance and Repair
      • 4.3.5  Sub-Sub-Program: Real Property - Environment and Remediation
      • 4.3.6  Sub-Sub-Program: Real Property - Strategic Coordination, Development and Control
    • 4.4  Sub-Program: Information Systems Lifecycle
      • 4.4.1  Sub-Sub-Program: Info Systems - Portfolio Management
      • 4.4.2  Sub-Sub-Program: Info Systems - Acquisition, Development and Deployment
      • 4.4.3  Sub-Sub-Program: Info Systems - System Management and User Support
      • 4.4.4  Sub-Sub-Program: Info Systems - Strategic Coordination, Development and Control
  • 5.0  Program: Defence Capability Development and Research
    • 5.1  Sub-Program: Capability Design, Development and Integration
      • 5.1.1  Sub-Sub-Program: Capability Design and Management
      • 5.1.2  Sub-Sub-Program: Concept, Doctrine Development and Warfare Experimentation
      • 5.1.3  Sub-Sub-Program: Science and Systems Development and Integration
    • 5.2  Sub-Program: Strategic Direction and Planning Support
      • 5.2.1  Sub-Sub-Program: Strategic Capability Planning Support
      • 5.2.2  Sub-Sub-Program: Strategic Force Posture Planning Support
  • 6.0  Program: Internal Services
    • 6.1  Sub-Program: Management and Oversight
    • 6.2  Sub-Program: Communications
    • 6.3  Sub-Program: Legal Services
    • 6.4  Sub-Program: Human Resources Management
    • 6.5  Sub-Program: Financial Management
    • 6.6 Sub-Program: Information Management
    • 6.7  Sub-Program: Information Technology
    • 6.8  Sub-Program: Real Property
    • 6.9  Sub-Program: Materiel
    • 6.10  Sub-Program: Acquisition

Organizational Priorities

Over the past year, Defence advanced a range of concrete Canadian priorities – contributed to the safety and security of Canadians, promoted a safe and secure world through international engagement, and enhanced the vibrancy of Canadian culture and heritage. Notwithstanding mandatory Defence operations and related activities, Defence successfully achieved results against the four organizational priorities identified in the 2014-15 Report on Plans and Priorities. These priorities, provided emphasis for senior management and Canadian Armed Forces leaders to direct resources to key initiatives required to address gaps in achieving the PAA expected results, to mitigate key Corporate Risks and to respond to specific Government direction. 

Defence’s organizational priorities and plans, as well as significant results related to the Department’s PAA, are integrated into Section II of this report to provide a comprehensive overview of the Department’s performance in 2014-15. The priorities below are ordered for clarity of presentation only, and are aligned with the relevant Strategic Outcomes.

Priority: Ensuring Sustainable Operational Excellence both at Home and Abroad for the Defence of Canada and the Protection of Canadians

Type 1: Ongoing

Strategic Outcomes:

  • Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values
  • Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values

Description: The ultimate measure of success of the Defence Team is the successful conduct of operations by the CAF to protect Canadians and Canadian national interests at home and abroad. All Defence activities and efforts must be directed towards these ends.

Summary of Progress:

The following lists the original plans and the key accomplishments in 2014-15:

Priority Element: Defence requires an integrated and secure, flexible, and agile information environment that is conducive to efficient operations and decision making.

  • Plan: Provide an integrated and effective IM and IT environment in support of all Defence operations
    • Continued to strengthen cyber capabilities including advice and analysis on cyber risks, threats, and incidents, and to contribute to joint cyber security efforts with allied military organizations.
    • Developed a revised IM/IT future governance framework and business planning process.
    • Continued to advance alignment with the Government of Canada web renewal initiative.

(See sub-sub programs: 4.4.1 Info Systems – Portfolio Management, 4.4.4 Info Systems – Strategic Coordination, Development and Control, 5.2.1 Strategic Capability Planning Support, 6.7 Information Technology)

Priority Element: The Policy on Government Security directs all departments and agencies to ensure that security management is an identifiable and integral element of departmental governance, programs, and services. This includes a systematic and consistent approach is in place to support the planning, operation and monitoring of security activities, and essential controls are in place to support interoperability and information exchange.

  • Plan: Develop and implement initiatives to integrate security management into departmental operations
    • Established a new security organization.
    • Revitalized the Senior Security Advisory Committee.
    • Conducted a thorough review and update of the National Defence Security Orders and Directives in order to clearly articulate to all DND and CAF personnel the responsibilities related to the defence security program.
    • Advanced the development of the Departmental Security Plan including risk treatment plans for managing security risks and that outline the strategies, goals, objectives, priorities and timelines for improving security within Defence.
    • Replaced the certification and accreditation program with the security assessment and authorization program.
    • Conducted a top down review of counter explosive threat skills required by all CAF members to ensure an interoperable and seamless joint CAF capability.

(See sub-sub-programs: 4.1.9 Organization – Security, Protection, Justice and Safety4.4.1 Info Systems – Portfolio Management, 4.4.2 Info Systems – Acquisition, Development and Deployment, 4.4.3 Info Systems – System Management and User Support)

Priority Element: In the coming years, a number of significant historical anniversaries will be commemorated. Events such as the 100th anniversary of World War I, including a significant number of regimental centenaries, the 75th anniversary of World War II, as well as the 150th anniversary of the Confederation in 2017, will all have significant resource implications. These events represent a significant opportunity to engage Canadians and deepen their understanding of the contributions that the Royal Canadian Navy (RCN), the Canadian Army (CA), the Royal Canadian Air Force (RCAF) and DND have made to the development of the nation throughout its history.

  • Plan: Support Government efforts for commemoration of important anniversaries
    • As part of Operation DISTINCTION, participated in commemorative events designed to honour Canada’s proud military history, from the War of 1812 to the wars of the 20th century and during contemporary times.

 (See sub-sub-program: 2.3.1 Military History, Heritage and Awareness, and Sub-Program 6.2 Communications)

Priority Element: Exercising Canadian Arctic sovereignty is a priority of the Government of Canada, as articulated in Canada’s Northern Strategy, the Arctic Foreign Policy and the Canada First Defence Strategy.

  • Plan: Exercise Arctic sovereignty
    • Conducted a series of annual arctic operations and exercises to demonstrate sovereignty, enhance the CAF’s ability to operate in the Arctic, strengthen and develop whole-of-government partnerships, and maintain interoperability amongst northern partners.
    • Released the annual update of the Plan for the North, which strengthens synchronization with territorial governments and other government departments and agencies to better anticipate, prepare and conduct defence activities in the North.

(See sub-sub-programs: 1.1.2 Ongoing Defence, Security and Sovereignty of Canada Operations, 1.3.1 Overarching Command and Control of Domestic and International Operations)

Priority Element: Defence has a legal duty to consult with Aboriginal groups when contemplating activities that might adversely impact potential or established Aboriginal and treaty rights. Defence also has a legal obligation to respect treaties negotiated between the Crown and Aboriginal groups. These treaties can impact contracting, access to treaty settlement lands and environmental assessments.

  • Plan: Support Government efforts with the legal obligations to the Aboriginal People of Canada
    • Actively engaged Defence officials to increase awareness of Aboriginal issues and exchange information to ensure Aboriginal obligations are addressed.

(See Sub-Sub-Program: 4.3.6 Real Property – Strategic Coordination, Development and Control

Priority: Maintaining Required CAF Posture and Defence Readiness

Type: Ongoing

Strategic Outcome:

  • Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values

Description: By reconstituting and aligning the CAF and DND post Afghanistan, Defence will maintain its ability to deliver the Canada First Defence Strategy by managing operational readiness in support of its six core missions within Canada, in North America and in support of international operations.

Summary of Progress:

The following lists the original plans and the key accomplishments in 2014-15:

Priority Element: The CAF must ensure resources are aligned and available to support determined readiness levels and therefore able to posture military capability to meet planned and anticipated requirements of the Government of Canada as articulated in the Canada First Defence Strategy.

  • Plan: Implement CDS direction for CAF force posture and defence readiness horizon 1
    • Generated and sustained highly effective, responsive and adaptable force elements capable of synchronizing effects across the full spectrum of operations.
    • Ensured resources were aligned and available to support determined readiness levels.

(See Programs: 3.0 Defence Ready Force Element Production, 4.0 Defence Capability Element Production; and sub-sub-programs: 3.1.1 Maritime Roles – Readiness Sustainment, 3.1.2 Land Roles – Readiness Sustainment, 3.1.3 Aerospace Roles – Readiness Sustainment, 3.1.4 Special Operations Roles – Readiness Sustainment, 3.1.5 Joint and Common Roles – Readiness Sustainment)

Priority Element: The Canada First Defence Strategy is the primary guiding document for Defence and across the Defence Portfolio. The Government will undertake a review of the strategy in order to provide direction and ensure the Defence Team is balanced and positioned to meet current and future challenges.

  • Plan: Undertake CFDS renewal
    • Work on the Canada First Defence Strategy renewal is ongoing and is aimed at ensuring the CAF continues to be among the best in the world, well positioned to defend Canada and Canadian interests at home and alongside Canada’s allies around the world, particularly in an evolving security context.

(See Sub-Program: 6.1 Management and Oversight)

Priority: Strengthening the Defence Team

Type: Ongoing

Strategic Outcome:

  • Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values

Description: By investing in the personnel pillar of Canada First Defence Strategy – military and civilian, National Defence will align the Defence Team to ensure successful execution of the six core missions within Canada, North America, and around the globe.

Summary of Progress:

The following lists the original plans and the key accomplishments in 2014-15:

Priority Element: Defence has a moral commitment to military personnel in recognition of the sacrifices they make and the services they render. The duty and responsibility to care for our current and former members and their families reside especially with the leadership of the CAF, DND and Veteran Affairs Canada. Included under this priority is the psychological fitness of military personnel, which is an essential component of operational effectiveness and a key part of the fundamental obligation of the CAF to promote the well-being of their personnel.

  • Plan: Provide enhanced support to the ill and the injured and to the families of CAF members
    • Continued to bolster the sustainability and effectiveness of the CAF health care system by monitoring the ongoing performance of the system through the annual Military Health Program presentation to the departmental Program Management Board.
    • Extended 60 Reserve Force positions in order to address the increased demand for Joint Personnel Support Unit services.
    • Enhanced mental health initiatives, particularly to address Post Traumatic Stress Disorder, including:
      • Established Canadian Military and Veterans Mental Health Centre of Excellence and created a Chair in Military Mental Health, which will support clinical best practices and prioritize mental health research, education and prevention; and
      • Established electronic collection of mental health data allowing clinicians serving CAF members to view assessments and results immediately in a secure and confidential manner, wherever they may be.
    • Developed a robust, interdisciplinary and harmonized mental health capacity focusing on training and education, prevention and intervention to enhance the psychological resilience of CAF personnel, including:
      • Piloted Unit Road to Mental Readiness (R2MR) Training for a Communications Information Group and initiated development of occupation-specific mental health and resilience training for Military Police, Search and Rescue and Special Operations personnel;
      • Developed two Smartphone applications to support the uptake and practical application of R2MR arousal management skills taught in the classroom; and
      • Produced mental health outreach videos highlighting mental health support programs (You’re Not Alone), peer support and R2MR to assist CAF members and their families.
    • Developed a consolidated/integrated Military Family Services operating plan in October 2014, and eleven working groups and family panels were formed to address programming challenges and systemic stressors inherent with military life. Military Family Services formalized partnerships with national organizations that can play a role in ensuring Canadian communities have requisite skills, knowledge and awareness to better support military families.

(See sub-sub-programs: 4.1.7 Military Personnel – Morale and Well Being, 4.1.8 Military Personnel – Health Care)

Priority Element: The Canada First Defence Strategy is committed to ensuring a first-class, modern military that is well-trained, well-equipped, and ready to take on the challenges of the 21st century. The personnel pillar of the Canada First Defence Strategy is a critical component in enabling the CAF to deliver excellence at home, and be a strong and reliable partner in the defence of North America and a valuable contributor to overseas operations.

  • Plan: Advance a comprehensive plan to optimize the military and civilian workforce
    • Developed streamlined functional planning guidance to better align with the business planning process, focus attention on best practices, and realign the workforce to priorities as defined by resource allocation through the business planning process.
    • Continued to develop the processes for a Multi-Year Establishment Plan that validates and prioritizes military and civilian personnel requirements based on current and future known manning pressures associated with joint and common defence requirements and the force development of new or emerging capabilities.
    • Continued the May 2013 Vice Chief of the Defence Staff Initiating Directive - Rationalization of the Primary Reserve - Comprehensive Review in order to thoroughly explore, rationalize and incorporate the Reserve component resource into the CAF context, while also focusing on providing proposals to the Government of Canada on strengthening the Reserve for implementation in FY 2015-16.

(See sub-sub-programs: 4.1.10 Military Personnel and Organization – Strategic Coordination, Development and Control, 5.1.1 Capability Design and Management, and Sub-Program 6.4 Human Resources Management)

Priority Element: Defence requires an adaptive, agile and responsive personnel management system that meets personnel capability requirements and provides progressive professional development and competency-based employment to meet organizational needs. A workforce that has the tools, knowledge, developmental plans and learning opportunities is essential to a fully-integrated, flexible, multi-role and combat-capable Defence Team.

  • Plan: Maximize military and civilian potential by continuing to strengthen leadership capacity through succession planning, continuous learning, and professional development
    • Continued modernization of the Individual Training & Education system to ensure the delivery of performance-oriented, learner-centric training and education that are accessible to all through modern technology platforms.
    • Completed the concept design and commenced implementation of the new CAF personnel appraisal system.
    • Continued the implementation of pay consolidation and modernization.

(See sub-sub-program: 4.1.10 Military Personnel and Organization – Strategic Coordination, Development and Control, and Sub-Program 6.4 Human Resources Management)

Priority Element: Public Service Renewal is an overarching Public Service strategy to provide excellent advice and service to Government and Canadians.

  • Plan: Implement Public Service Renewal action plan aligned with the Clerk of the Privy Council’s priorities
    • On 7 June 2013, the Clerk of the Privy Council announced the Blueprint 2020 (BP2020) initiative, which arose from and replaces Public Service Renewal reports for the foreseeable future. Defence progressed the following initiatives in support of BP2020:
      • Technology: The IM/IT 2020 Tiger Team began a review of the existing IM/IT capabilities and how they can be better employed.
      • Innovative Practices and Networking: Two initiatives, digital signatures and a departmental podcast library were selected for investigation and potential for departmental implementation. A new profile series, The Innovators, was established to showcase civilian and military members of the Defence Team who have taken their ideas to the next level.
    • As of March 2014, Defence was 100 percent compliant with the Office of the Chief Human Resources Officer expectation of the Common Human Resources Business Process Implementation. Defence was identified as a candidate for Civilian Human Resources Capability Transformation project.

(See Sub-Program: 6.4 Human Resources Management)

Priority Element: The operational effectiveness of DND and the CAF depends on the formulation and implementation of specific programs to maximize the prevention of hazardous occurrences and minimize the impact of injury, illness and disease, thus contributing to the morale and well-being of all personnel.

  • Plan: Improve Defence Occupational Health and Safety Strategy
    • Demonstrated success in the implementation of the goals and objectives related to the improvements to the Occupational Health and Safety Program.
    • Advanced the process of consolidating all range safety and field safety programs under a unified governance framework.

(See Sub-Sub-Program: 4.1.9 Organization – Security, Protection, Justice and Safety)

Priority: Ensuring Defence Affordability

Type: Ongoing

Strategic Outcomes:

  • Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values
  • Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values

Description: To ensure Defence affordability in the short, medium and long term, the Defence Team must balance each of the four pillars of the Canada First Defence Strategy – Personnel, Equipment, Readiness, and Infrastructure – and carefully manage investments to maximize capability output, ensure stewardship of Defence resources, and deliver best value for Canada.

Summary of Progress:

The following lists the original plans and the key accomplishments in 2014-15:

Priority Element: Defence must maintain affordable and sustainable investment planning that delivers on Canada First Defence Strategy commitments, while also accounting for the potential for cost increases and funding requirements for new and expanded capabilities.

  • Plan: Improve investment planning and management to balance CFDS requirements
    • Produced a departmental Investment Plan that enables long term financial flexibility to provide an affordable, sustainable, and achievable management framework that delivers on the CFDS commitments.
    • Integrated a number of investment databases and developed Investment Plan change management and Banking Day processes to provide a more robust analytical capability over the financial aspect of departmental investment planning.
    • Modeled investment planning scenarios in order to develop options that best balanced CFDS requirements and available fiscal resources.
    • Provided a life-cycle cost estimate for the Future Fighter Capability that has been independently verified by third-party audit firms. The same life-cycle framework is now being institutionalized across all major capital projects.
    • Completed all seven planned major disposal projects of surplus assets.

(See sub-sub-programs: 4.2.1 Materiel – Portfolio Management, 4.2.4 Materiel – Divestment and Disposal, 5.2.1: Strategic Capability Planning Support, and Sub-Program 6.5 Financial Management)

Priority Element: Defence requires a corporate governance and business framework to deliver sustainable business management efficiencies, effectiveness, and accountability in order to maintain public confidence and trust.

  • Plan: Develop and implement Defence Business Management Capability
    • Initiated an internal study of business intelligence capabilities to inform future investments and developments within the Defence Resource Management Information System.
    • Under Defence Renewal, Defence initiated a review of the Accountabilities, Responsibilities, and Authorities framework of the senior leadership and a review of the Governance Structure to enable more effective decision making.

(See Sub-Program: 6.1 Management and Oversight)

Priority Element: The Government has introduced a new organization, Shared Services Canada, to maximize efficiencies and to improve the delivery of common Government services to departments by streamlining and consolidating government networks, data centres, and email systems.

  • Plan: Implement the transition to Shared Services Canada
    • Continued to strengthen relations with Shared Services Canada and the clear articulation of departmental IM/IT priorities.

(See Sub-Sub-Program: 4.4.4 Info Systems – Strategic Coordination, Development and Control)

Priority Element: Defence must improve its capacity for timely delivery of capital assets to meet the Canada First Defence Strategy objectives and maximize the broader economic agenda of the Government.

  • Plan: Improve Defence procurement
    • Together with Public Works and Government Services Canada, Industry Canada, International Trade and Central Agencies, continued to implement initiatives aimed at leveraging and streamlining objectives of the Defence Procurement Strategy. Defence-specific initiatives include:
      • Interdepartmental consultation in an effort to improve and streamline the procurement process and enhance interdepartmental governance.
      • Published an updated Defence Acquisition Guide for 2015 to enhance Defence's relationship with industry.
      • Enhanced training, identification, and re-transfer authorities to ensure compliance integrity as it relates to domestic and international controlled goods obligations.
      • Provided qualified Project Managers for 90 percent of projects with ratings in the top half of Treasury Board Secretariat's criticality and risk ratings for projects.

(See sub-sub-programs: 4.2.2 Materiel – Acquisition, 4.2.6 Materiel – Inventory Management and Distribution)

Priority Element: Defence must be able to demonstrate compliance with Government regulations and Treasury Board mandatory reporting requirements pertaining to procurement, management, and control of inventories.

  • Plan: Continue to strengthen the core control framework in support of Treasury Board requirements pertaining to procurement, management, and control of inventories
    • From September 2012 to February 2015, Defence completed over $3.5 billion of stocktaking and over $2.7 billion in stock verifications.
    • Progressed several initiatives to modernize inventory management programs. Key accomplishments include:
      • Rationalization: Investigated 1,141 NATO Stock Numbers (NSN) with a value of $944 million exceeding initial targets;
      • Modernization: Identified approximately 250,000 NSNs to be made historical and removed from the Defence Resource Management Information System active NSNs;
      • Project Disposal (Clean Up): Completed an analysis of approximately one third (approximately 24,000) of the NSNs currently marked for disposal; and
      • Project Disposal (Modernization): Conducted a detailed review of all processes and policies, regardless of organization.
    • Continued to conduct an options analysis for an Automatic Identification Technology capability to transform its Global Supply Chain business to enhance military operational support; provide a total asset visibility capability; increase the supply chain efficiency; and provide sophisticated decision support, optimization, and control systems.

(See Sub-Sub-Program: 4.2.6 Materiel – Inventory Management and Distribution and Sub-Program: 6.9: Materiel)

Priority Element: The Defence Environmental Strategy is a Department priority that is being developed as a way forward for environmentally sustainable defence management over the next 20 years. Its impetus stems from the ongoing requirement of integrating environmental considerations into the wide breadth of activities undertaken within Defence in support of the four pillars upon which Canada's military capabilities are built: personnel, equipment, infrastructure, and readiness.

  • Plan: Promulgate the Defence environmental strategy
    • Implemented and continued the development of the Defence Environmental Strategy plans to ensure environmental considerations are integrated into activities that support the Defence mandate.

(See Sub-Sub-Program: 4.3.5 Real Property – Environment and Remediation)

Priority Element: Defence must demonstrate compliance with architectural, fire protection, engineering, environmental and related legislation, as well as Government of Canada policies and agreements. The real property compliance strategy is a priority because the strategy will allow National Defence to make consistent and informed decisions in the prioritization, and risk management for the compliance with these requirements.

  • Plan: Implement Defence infrastructure compliance strategy
    • Continued to develop the Infrastructure and Environment Compliance Oversight Strategy to make consistent and informed decisions on prioritization and risk management for compliance with architectural, fire protection, engineering, environmental and related legislation, as well as Government of Canada policies and agreements.

(See Sub-Sub-Program: 4.3.6 Real Property – Strategic Coordination, Development and Control)

Priority Element: The global financial crisis and the period of fiscal restraint has reinforced the importance of ensuring that DND/CAF achieve maximum value for dollar as the Department works to carrying the CFDS momentum forward. Defence Renewal is critical to placing the Defence Team on a strong financial foundation for the future. Our renewal vision for the Defence Team is to establish a lean and efficient organization that continuously finds ways to better conduct the business of Defence, that frees up resources to be reinvested in operational capabilities and readiness, and that delivers the best military capabilities at the best value for Canadians, in a manner that is affordable and sustainable over the long term.

  • Plan: Implement Defence Renewal
    • Building on the foundation and progress of Defence Renewal’s first year ending in March 2014, the period of April 2014 to March 2015 was both successful and challenging, the following are highlights of the progress achieved over the past fiscal year:
      • Realized fiscal pressure relief for National Procurement, Infrastructure and Cadets;
      • Added two new initiatives to the Defence Renewal Portfolio based on ideas for improvement from Defence Team members, namely improving ammunition management, and enhancing emergency dispatch systems. In addition, two new ideas - electronic approvals and departmental video/podcast library – are being assessed to determine potential for inclusion in the Defence Renewal portfolio;
      • Awarded a contract to KPMG to provide solutions to improve maintenance execution, examine and offer solutions for a leaner headquarters and to provide a framework for measurement and metrics for renewal;
      • Reduced overbuy expenditures;
      • Created a Recruiting Operations Centre that performs the intake management previously conducted at 39 detachments across the country;
      • Implemented a common enterprise-level IT Service Management toolset to support the Defence Wide Area Network. This new capability will provide IT business intelligence that will assist with the consolidation of IT Service Delivery organizations across Defence. To this end, work has begun to consolidate Regional Service Management Centres (RSMC), including detailed planning for the lead RSMC in Halifax, Nova Scotia and the RSMC in the National Capital Region;
      • Obtained Treasury Board Secretariat approvals for Guardian, a modern, flexible and integrated workforce management system and worked with Public Works and Government Services Canada to develop a business case to leverage the Government of Canada payroll solution (Phoenix) as the pay engine for Military Pay;
      • Demolished 166 additional buildings and structures on bases and wings across Canada as a part of infrastructure rationalization;
      • Assessed interdependencies between Defence Renewal initiatives, broader Government of Canada change activities and other changes within the Defence Team in order to develop an improved management model of strategic change activities;
      • Continued to engage the civilian and military members of the Defence Team to seek suggestions for ways to improve the conduct of the business of Defence; and
      • Discussed Defence Renewal at leadership town halls at various organizational levels and senior CAF professional development programmes. Defence Renewal is also regularly featured in internal Defence Team media.

(See sub-sub-programs: 2.3.2 Youth Program, 4.1.1 Military Personnel – Regular Force Portfolio Management, 4.1.2 Military Personnel – Reserve Force Portfolio Management, 4.1.3 Military Personnel – Recruitment, 4.1.5 Military Personnel – Professional Development Training, 4.1.9 Organization – Security, Protection, Justice and Safety, 4.2.2 Materiel – Acquisition, 4.2.5 Materiel – Engineering, Test, Production and Maintenance, 4.2.7 Materiel – Strategic Coordination, Development and Control, 4.3.1 Real Property – Portfolio Management, 4.3.2 Real Property – Acquisition, 4.3.6 Real Property – Strategic Coordination, Development and Control, 4.4.1 Info Systems – Portfolio Management, 4.4.2 Info Systems – Acquisition, Development and Deployment, 4.4.3 Info Systems – System Management and User Support, 4.4.4 Info Systems – Strategic Coordination, Development and Control, 5.1.2 Concept, Doctrine Development and Warfare Experimentation, 5.2.2 Strategic Force Posture Planning Support, and sub-programs 6.1 Management and Oversight, 6.4 Human Resources Management)

Risk Analysis

Defence is influenced by a wide range of domestic and international factors that have an impact on how we carry out our mandate. These factors present us with both risks and opportunities, which are taken into account as we deliver on our roles and responsibilities. By continuously monitoring emerging issues, developments and trends, we can anticipate and respond to challenges and the risks associated with them.

Six key Corporate Risks that could have a Defence-wide impact were highlighted for fiscal year 2014-15, including Defence Readiness, Defence Team Capacity, Investment Planning Flexibility, Capability Delivery Process Complexity, Security, and Integrated IM/IT (Opportunity). To fulfill the Government of Canada's expectations, Defence has and will continue to manage these Corporate Risks in an effective manner.

Defence Readiness is a key risk consideration due to the unpredictable nature of the security environment which dictates that National Defence and the Canadian Armed Forces must be ready to respond to new missions without affecting ongoing security and defence commitments. The CDS Force Posture and Readiness Directive is the principle mechanism to ensure that CAF elements are resourced, trained, maintained and sustained at levels of readiness in accordance with Government of Canada expectations.

The Defence Team Capacity risk is significant to Defence as the effective management of the risk enables it to fulfil the expectations of the Government of Canada and Canadians. An aging Canadian population and growing competition for skilled talent between public and private sector employers affects Defence’s ability to renew and strengthen the workforce. Defence itself faces high attrition rates due to impending retirement of its personnel. Improving strategic level human resources plans and strengthening leadership capacity, succession planning, continuous learning, and professional development will allow Defence to continue to respond effectively to this risk.

The Investment Plan flexibility risk is important to Defence because the changing strategic situation, new developments in technology and the operational art may necessitate or create opportunities to invest in new capabilities. Flexibility is necessary in order to respond to these changes quickly, while still providing value for Canadians when obtaining materiel to support new or improved capabilities. A carefully crafted Investment Plan, Integrated Disposal Framework, and a comprehensive analysis process for assessing new projects will allow Defence to improve the inclusion of new or updated capabilities and the retirement of outdated capabilities to ensure long‐term affordability and balance investments across the four pillars of CFDS.

The Capability Delivery Process Complexity risk is significant because the timely and efficient delivery of capabilities is essential to enable operations today and tomorrow and allow success for the CAF across CFDS missions important to Defence and Canadians. The Project Approval Process Redesign, institutionalization of Project Management Competency Development and Economic Action Plan 2013 goals all improve the efficacious delivery of capabilities to enable operations and provide value for Canadians.

The Security Risk is important to Defence because ensuring an adequate security infrastructure is key to supporting defence readiness, capacity, protecting critical information assets, protecting the force and maintaining DND/CAF as a trusted partner and ally. This enables Defence to meet the expectation of the Government of Canada and Canadians. The implementation of comprehensive security orders and directives and the Security Assessment and Authorization program are vital steps in continued improvements to overall Defence Security and IM/IT security.

The Integrated IM/IT risk is crucial to Defence since synergistic sharing of information promotes success in operations and efficiency in all other areas of Defence. The refocused IM/IT strategy under the umbrella of Defence Renewal will optimize IT Service Delivery, increase the efficiency of the IM/IT Program by improving application management practices and build on existing efforts to synchronize planning, that will help make IT expenditure more efficient.

Key Risks

RiskRisk Response StrategyLink to Program Alignment Architecture

Defence Readiness

There is a risk that a major unexpected event may require Defence to reallocate resources at short notice, which may dramatically affect ongoing missions and jeopardize the Government’s international security related commitments.

To mitigate this risk identified in National Defence’s 2014-15 Report on Plans and Priorities (RPP):

  • The Directive for CAF Force Posture and Readiness was updated and implemented to adjust the necessary tasks based on lessons learned and from an updated understanding of possible threats to Canada. This provided a clear and viable plan which developed and maintained the capabilities and readiness levels necessary to meet the requirements of the CFDS within horizon 1. This Directive will continue to be reviewed every year.

3.0 Defence Ready Force Element Production

4.0 Defence Capability Element Production

3.1.1 Maritime Roles – Readiness Sustainment

3.1.2 Land Roles – Readiness Sustainment

3.1.3 Aerospace  Roles – Readiness Sustainment

3.1.4 Special Operations Roles – Readiness Sustainment

3.1.5 Joint and Common Roles – Readiness Sustainment

 

RiskRisk Response StrategyLink to Program Alignment Architecture

Defence Team Capacity

There is a risk that Defence will not have the right number of personnel with the right competency, at the right place, and at the right time, which may affect its capability to fulfill current or future Government of Canada and Defence expectations.

To mitigate this risk identified in the 2014‐15 RPP:

  • Defence promulgated streamlined functional planning guidance in order to focus attention on best practices to realign the workforce to priorities as defined by resource allocation through the business planning process. As well, Defence continued to develop the processes for a Multi-Year Establishment Plan that validates and prioritizes military and civilian personnel requirements based on current and future known manning pressures. Defence continued the comprehensive review for the rationalization of the Primary Reserve in order to thoroughly explore, rationalize and incorporate the Reserve component resource into the CAF context, while also focusing on providing proposals to the Government of Canada on strengthening the Reserve for implementation in FY 2015-16.
  • Defence created a Recruiting Operations Centre that performs the intake management previously conducted at 39 detachments across the country.
  • Defence also continued the modernization of the Individual Training & Education system and progressed the concept design, and commenced implementation of the new CAF personnel appraisal system.
  • In addition to the aforementioned responses to this risk, Defence continued to bolster the sustainability and effectiveness of the CAF Health Care system by monitoring the ongoing performance of the system through the annual Military Health Program presentation to the Departmental Program Management Board. This included initiatives such as:
    • Establishing the Canadian Military and Veterans Mental Health Centre of Excellence and creating a Chair in Military Mental Health, which will support clinical best practices and prioritize mental health research, education and prevention.
    • Defence development of a robust, interdisciplinary and harmonized mental health capacity focusing on training and education, prevention and intervention to enhance the psychological resilience of CAF personnel.

4.1.5 Military Personnel – Professional Development Training

4.1.7 Military Personnel – Morale and Well Being

4.1.8 Military Personnel – Health Care

4.1.10 Military Personnel and Organization – Strategic Coordination, Development and Control

6.1 Management and Oversight

6.4 Human Resources Management

 

RiskRisk Response StrategyLink to Program Alignment Architecture

Investment Planning Flexibility

There is a risk that Defence will be unable to fund new requirements or major acquisition cost increases and it may not be possible to take advantage of opportunities that arise. 

To mitigate this risk identified in the 2014‐15 RPP:

  • Defence produced a departmental investment plan enabling long term financial flexibility in order to provide an affordable, sustainable and achievable management framework.
  • As well, Defence integrated some of its investment databases and developed Investment Plan change management and Banking Day processes to provide a more robust analytical capability over the financial aspect of departmental investment planning and provided a Life Cycle Cost estimate that has been independently verified by third-party audit firms. The same life-cycle framework is now being institutionalized across all major capital projects.
  • Modeled investment planning scenarios in order to develop options that best balanced CFDS requirements and available fiscal resources.
  • Additionally, Defence completed all seven of its planned major disposal projects of surplus assets.
  • Defence Renewal contributed to the management of this risk including:
    • Realized fiscal pressure relief for National Procurement, Infrastructure and the Youth Program.
    • Inventory Management reduced overbuy expenditures.
    • As a part of infrastructure rationalisation, 166 additional buildings and structures were demolished on bases and wings across Canada.
  • Initiated an internal study of business intelligence capabilities to inform future investments and developments within the Defence Resource Management Information System.

4.2.1 Materiel – Portfolio Management

4.2.4 Materiel – Divestment and Disposal

4.2.6 Materiel – Inventory Management and Distribution

4.2.7 Materiel – Strategic Coordination, Development and Control

4.3.1 Real Property – Portfolio Management

4.3.6 Real Property – Strategic Coordination, Development and Control

5.2.1: Strategic Capability Planning Support

6.1 Management and Oversight

6.5 Financial Management

 

RiskRisk Response StrategyLink to Program Alignment Architecture

Capability Delivery Process Complexity

There is a risk that the complexity of development, programme approval and Government of Canada defence procurement processes will prevent Defence from meeting its investment targets in critical physical assets (equipment, physical and information infrastructure and real property) in a timely, sustainable and affordable manner to enable CAF operations.

To mitigate this risk identified in the 2014‐15 RPP:

  • Defence completed a new protocol, via the Defence Renewal Project Approval Process Review and negotiated with TBS, for a less time-consuming way ahead. The protocol will streamline less complex projects within MND authority. Further development of this important enabling initiative will proceed.
  • Additionally, in response to this risk, Defence, together with PWGSC, Industry Canada, International Trade and central agencies, continued to implement initiatives aimed at leveraging and streamlining objectives of the Defence Procurement Strategy. Defence-specific initiatives include:
    • Interdepartmental consultation in an effort to improve and streamline the project approval process and enhance departmental governance;
    • Internal Review Panel members appointed on 1 June 2015 to provide third party review of High Level Military Requirements; and
    • Publication of an updated Defence Acquisition Guide for 2015 to enhance Defence's relationship with industry.
  • Defence also enhanced training to continue to ensure compliance integrity as it relates to domestic and international controlled goods obligations and provide qualified Project Managers for 90 percent of projects with ratings in the top half of Treasury Board Secretariat's criticality and risk ratings for projects.
  • Initiated an internal study of business intelligence capabilities to inform future investments and developments within the Defence Resource Management Information System.

4.2.2 Materiel – Acquisition

4.2.6 Materiel – Inventory Management and Distribution

4.2.7 Materiel – Strategic Coordination, Development and Control

6.1 Management and Oversight

 

RiskRisk Response StrategyLink to Program Alignment Architecture

Security

There is a risk that the Defence security infrastructure is insufficient to ensure that Defence can support its overall defence readiness, capacity, and ability to operate as a trusted partner.

To mitigate this risk identified in the 2014‐15 RPP:

  • Defence established a new security organization in 2014-15. Defence also revitalized the Senior Security Advisory Committee for governance of the new organization and its roles.
  • Defence conducted a thorough review and update of the National Defence Security Orders and Directives in order to clearly articulate to all DND and CAF personnel the responsibilities related to the defence security program.
  • Defence continued to develop a Departmental Security Plan in order to improve the effective management of security risks and aid in the communication and coordination of initiatives designed for the overall improvement of Defence security.
  • Furthermore, to improve IM/IT security, the certification and accreditation program was replaced with the security assessment and authorization program.

4.1.9 Organization – Security, Protection, Justice and Safety

4.4.1 Info Systems – Portfolio Management

4.4.2 Info Systems – Acquisition, Development and Deployment

4.4.3 Info Systems – System Management and User Support

 

RiskRisk Response StrategyLink to Program Alignment Architecture

Integrated IM/IT (Opportunity)

There is an opportunity for Defence to take advantage of emerging technology to further an integrated IM/IT infrastructure that can provide a flexible and agile information environment conducive to efficient, interoperable, joint CAF operations and executive Defence decision making, while achieving value for money and demonstrating sound stewardship.

To mitigate this risk identified in the 2014‐15 RPP:

  • Defence continued to strengthen its cyber capabilities including advice and analysis on cyber risks, threats, and incidents, and contributing to support joint cyber security efforts with allied military organizations.
  • Defence also developed a revised IM/IT future governance framework and business planning process and continued to advance the alignment with the Government of Canada web renewal initiative.
  • Initiated an internal study of business intelligence capabilities to inform future investments and developments within the Defence Resource Management Information System.

4.4.1 Info Systems – Portfolio Management

4.4.3 Info Systems – System Management and User Support

4.4.4 Info Systems – Strategic Coordination, Development and Control

5.1.1 Capability Design and Management

5.1.3: Science and Systems Development and Integration

5.2.1 Strategic Capability Planning Support

6.7 Information Technology

ACTUAL EXPENDITURES

Budgetary Financial Resources (dollars)

The following table summarizes Defence’s total planned and actual spending for fiscal year (FY) 2014-15.

2014–15
Main Estimates

2014–15
Planned Spending

2014–15
Total Authorities Available for Use

2014–15
Actual Spending(authorities used)

Difference
(actual minus planned)

18,661,554,387 18,224,737,824 20,453,156,053 18,453,938,461 229,200,637

In 2014-15, the Main Estimates were increased by $1,791.6 million through Supplementary Estimates and allotments from the Treasury Board to a total authorities available for use of $20,453.2 million. The difference between total authorities and actual spending of $18,453.9 million is $1,999.2 million, which consists of:

  • $1,692.3 million in authorities that will be available to the Department in future years related to:
    • $1,335.1 million for adjustments to spending on major capital equipment and infrastructure projects to align financial resources with current project acquisition timelines;
    • $245.2 million in Carry Forward of lapsed funding from 2014-15 that will be available to the Department in 2015-16;
    • $96.7 million for collective bargaining agreements; and
    • $15.3 million in proceeds from the disposal of surplus Crown assets which will be returned to the Department in 2015-16.
  • $99.9 million primarily related to:
    • $58.0 million for Canada’s international operations;
    • $16.7 million for military and civilian severance pay savings related to the Budget 2013 Spending Review; and
    • $25.2 million in other frozen allotments.
  • $207.0 million in residual lapses.

2014-15 Departmental Spending by Program (dollars)

Human Resources (Full-Time Equivalents - FTEs)

The Canadian Armed Forces (CAF) is currently below its desired end-state for total Regular Force manning of 68,000 +/- 500, due to higher than forecasted attrition and other factors. Measures will continue to be applied to increase production and limit voluntary attrition in order to re-establish the CAF to its authorized strength as soon as practical.

While civilian workforce planned FTEs are subject to budgetary approval, the Department is now focussed on identifying and staffing key future and priority positions in order to return to the approved target of approximately 24,000 civilian employees. 

The following table summarizes Defence’s total planned and actual human resources FTEs 13 for FY 2014-15.

  PlannedActual

Difference
(actual minus planned)

Regular Force 68,000 66,130 (1,870)
Civilian 24,269 22,011 (2,258)
TOTAL 92,269 88,141 (4,128)

Notes:

  1. In comparison with the 2013-14 Departmental Performance Report (DPR) actual figures, Regular Force FTEs decreased by 1,556 and civilian FTEs decreased by 3,244.

  2. One FTE does not necessarily equal one employee (i.e. two part-time employees may count as one FTE). See Appendix: Definitions.

Human Resources - Reserve Force Personnel

The Reserve Force is a unique and valued component of the CAF. The Primary Reserve is currently below the Government of Canada-directed average paid strength due to a higher than forecasted attrition and challenges in meeting recruiting quotas. Mitigating actions are underway to improve recruiting success and to reduce voluntary attrition in order to re-establish and expand the Primary Reserve’s strength by 1,500 to a Government-authorized 28,500 personnel. The remaining two active sub-components of the Reserve Force – the Canadian Rangers and the Cadet Organization Administration and Training Service – will be maintained at the current approved total strength targets of 5,000 and 8,000 respectively. In addition, the CAF Regular Force recruiting plan includes the annual component transfer of 800 personnel from the Primary Reserve. Institutionally, a major review of Primary Reserve requirements will continue so as to ensure the allocation and employment of personnel is consistent with Defence priorities, is sustainable and remains within Government of Canada direction.

The following table summarizes Defence’s total planned and actual human resources 14 for Reserve Force Personnel for FY 2014-15.

  PlannedActual

Difference
(actual minus planned)

Primary Reserve
Average Paid Strength
27,000 21,707 (5,293)
Cadet Organizations Administration and Training Service
Total Strength
8,000 7,912 (88)
Canadian Rangers
Total Strength
5,000 5,194 194

Notes:

  1. For details on the Cadet and Junior Canadian Rangers, see Sub-Sub-Program 2.3.2: Youth Program.
  2. For details on the Canada’s Reserve Force 15, see the supporting document on the Defence web site.

 

Budgetary Performance Summary for Strategic Outcomes and Programs (dollars)
Strategic Outcome(s), Program(s), and Internal Services

2014-15
Main Estimates

2014-15
Planned Spending

2015-16
Planned Spending

2016-17
Planned Spending

Strategic Outcome 1 – Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values
1.0 Defence Combat and Support Operations 1,363,942,346 1,363,942,347 1,294,500,580 1,318,814,331
2.0 Defence Services and Contributions to Government 407,959,810 407,959,811 382,286,293 389,063,763
Subtotal 1,771,902,156 1,771,902,158 1,676,786,873 1,707,878,094
Strategic Outcome 2 – Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values
3.0 Defence Ready Force Element Production 3,039,436,884 3,039,436,885 3,102,147,905 3,136,189,956
4.0 Defence Capability Element Production 13,086,304,226 12,649,487,661 13,336,464,765 13,537,771,679
5.0 Defence Capability Development and Research 326,339,123 326,339,123 373,537,801 382,101,670
Subtotal 16,452,080,232 16,015,263,668 16,812,150,471 17,056,063,305
6.0 Internal Services Subtotal 437,571,998 437,571,998 453,116,285 464,729,483
Total 18,661,554,387 18,224,737,824 18,942,053,629 19,228,670,882

 

Budgetary Performance Summary for Strategic Outcomes and Programs (dollars)
Strategic Outcome(s), Program(s), and Internal Services

2014-15
Total Authorities Available for Use

2014-15
Actual Spending (authorities used)

2013-14
Actual Spending (authorities used)

2012-13
Actual Spending (authorities used)

Strategic Outcome 1 – Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values
1.0 Defence Combat and Support Operations 1,584,467,565 1,229,363,372 1,488,574,710 1,542,935,869
2.0 Defence Services and Contributions to Government 438,816,642 497,418,597 520,303,388 438,761,017
Subtotal 2,023,284,207 1,726,781,969 2,008,878,098 1,981,696,886
Strategic Outcome 2 – Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values
3.0 Defence Ready Force Element Production 3,281,611,558 3,284,882,232 3,340,624,380 3,443,414,107
4.0 Defence Capability Element Production 14,316,908,755 12,504,965,147 12,464,777,545 13,594,506,574
5.0 Defence Capability Development and Research 381,089,627 462,489,089 437,853,050 452,080,281
Subtotal 17,979,609,940 16,252,336,468 16,243,254,975 17,490,000,962
6.0 Internal Services Subtotal 450,261,906 474,820,024 512,241,132 506,492,283
Total 20,453,156,053 18,453,938,461 18,764,374,206 19,978,190,131

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance) / Chief Financial Officer Group

Notes:

  1. Due to rounding, figures may not add up to total shown.
  2. Where the actual spending amount is higher than the total authorities, this does not represent an over expenditure of Parliamentary authorities. Parliamentary authorities are allocated by vote and not by individual Programs, Sub-Programs, and Sub-Sub Programs.
  3. Significant differences in financial resources are explained in Section II of this report.

 

The differences between planned and final spending authorities used are summarized as follows:

Explanation of ChangeChange (dollars)
Increases  
Funding in Statutory related to military Employee Benefit Plan forecasts 364,988,599
Funding associated with the Canada First Defence Strategy 252,170,000
Funding associated with Manuge v. Her Majesty the Queen Class Action Lawsuit 204,154,597
Funding related to military operations overseas 85,811,095
Other miscellaneous departmental requirements 28,517,609
Total Increases 935,641,900
   
Decreases  
Net adjustments to the spending profile of major capital equipment and infrastructure projects to align financial resources with project acquisition timeliness (590,361,113)
Funding related to the North Atlantic Treaty Organization contribution program (41,428,434)
Net transfers to Other Government Organizations (39,789,139)
Funding related to the Military Pension Renewal        (34,862,577)
Total Decreases (706,441,263)
Net Change       229,200,637

 

ALIGNMENT OF SPENDING WITH THE WHOLE-OF-GOVERNMENT FRAMEWORK

Alignment of 2014-15 Actual Spending with the Whole-of-Government Framework 16 (dollars)

Strategic OutcomeProgramSub ProgramSpending AreaGovernment of Canada Outcome2014-15 Actual Spending
1.0 Defence Operations and Services Improve Stability and Security and Promote Canadian Interests and Values 1.0 Defence Combat and Support Operations 1.1 Domestic and Continental Defence Operations Social Affairs A safe and secure Canada 199,444,971
1.2 International Combat Operations International Affairs A safe and secure world through international engagement 173,172,331
1.3 Ongoing Centralized Operations and Operational Enablement International Affairs A safe and secure world through international engagement 856,746,069
2.0 Defence Services and Contributions to Government 2.1 Disaster Relief and Humanitarian Operations International Affairs A safe and secure world through international engagement 15,126,725
2.2 Defence Services for Canadian Safety and Security Social Affairs A safe and secure Canada 95,134,974
2.3 Military Heritage and Outreach Social Affairs A vibrant Canadian culture and heritage 387,156,898
2.0 Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values 3.0 Defence Ready Force Element Production 3.1 Force Elements Readiness Sustainment Social Affairs A safe and secure Canada 891,429,399
3.2 Force Elements Integration Training Social Affairs A safe and secure Canada 469,427,526
3.3 Force Elements Production Social Affairs A safe and secure Canada 1,357,538,844
3.4 Operational Readiness Production, Coordination and Command and Control Social Affairs A safe and secure Canada 566,486,463
4.0 Defence Capability Element Production 4.1 Military Personnel and Organizational Lifecycle Social Affairs A safe and secure Canada 3,771,764,487
4.2 Materiel Lifecycle Social Affairs A safe and secure Canada 5,968,990,396
4.3 Real Property Lifecycle Social Affairs A safe and secure Canada 1,962,778,579
4.4 Information Systems Lifecycle Social Affairs A safe and secure Canada 801,431,686
5.0 Defence Capability Development and Research 5.1 Capability Design, Development and Integration Social Affairs A safe and secure Canada 385,285,335
5.2 Strategic Direction and Planning Support Social Affairs A safe and secure Canada 77,203,754

 Total Spending by Spending Area (dollars) 

Spending AreaTotal Planned SpendingTotal Actual Spending
Economic Affairs 0 0
Social Affairs 16,750,503,414 16,934,073,312
International Affairs 1,036,662,412 1,045,045,125
Government Affairs 0
Total (Does not include Internal Services) 17,787,165,826 17,979,118,437

 DEPARTMENTAL SPENDING TREND

Notes:

  • Total spending for 2012-13, 2013-14, and 2014-15 represent the final spending on a cash basis, as provided in the Public Accounts.
  • Planned spending for 2015-16, 2016-17, and 2017-18 as provided in the Report on Plans and Priorities 2015-16.
  • Spending includes Internal Services.

[Text version of Departmental Spending Trend]

Planned spending in 2015-16 is higher than actual spending in 2014-15. The major factor contributing to the net change includes adjustments to the spending profile of major capital equipment and infrastructure projects into the future in order to align financial resources with project acquisition timelines.

ESTIMATES BY VOTE

For information on Defence’s organizational Votes and statutory expenditures, consult the Public Accounts of Canada 2015 17 on the Public Works and Government Services Canada website.

 


Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the Report on Plans and Priorities or the Departmental Performance Report.