Department of National Defence and the Canadian Armed Forces - Report on Plans and Priorities 2014-15

Status Report on Transformational and Major Crown Projects

AIRLIFT CAPABILITY PROJECT – TACTICAL

Description: The objective of the Airlift Capability Project – Tactical (ACP-T) is to ensure a continued tactical airlift capability. This project will replace the Canadian Armed Forces’ (CAF) aging CC-130E Hercules fleet, and will provide the CAF 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 project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 CC-130J aircraft.  The contract was subsequently amended in December 2009 to include provisions for in-service support, and in February 2010 for maintenance training system. Aircraft deliveries began in May 2010. All aircraft have been delivered as of May 2012.

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

 

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

 

Major Milestones
Major MilestoneDate
Revised Preliminary Project Approval June 2006
Solicitation of Interest and Qualification August 2006
Issue of Request for Proposal August 2007
Effective Project Approval December 2007
Contract Award December 2007
Initial Operational Capability September 2013
Full Operational Capability Fall 2016
Project Close-Out Winter 2016-17

Project Outcomes: Deliver 17 CC-130J aircraft, the associated in-service support and training, and the required infrastructure at 8 Wing Trenton. The project contributes to achieving the Canada First Defence Strategy (CFDS) and the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Air Force and will support the Canadian Army.

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

All 17 aircraft have been delivered on time and on budget.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. Lockheed Martin Corporation has committed to provide IRBs equivalent to 100% of the eligible contract value for both the capital acquisition and the in-service support portions.  Industry Canada is the IRB Authority and closely monitors IRB achievements.

ARCTIC/OFFSHORE PATROL SHIP

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

Project Phase: Definition: The Project is in Definition phase which includes activities to advance the planning and ship design to the point of ship construction and the implementation of infrastructure (jetties) in Esquimalt, Halifax and Nanisivik. This phase upon attaining appropriate approvals will be followed by the Project Implementation contract for ship construction.

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

 

Prime and Major Subcontractor(s)
Prime Contractor

The National Shipbuilding Procurement Strategy (NSPS) Secretariat announced on 19 October 2011 that Irving Shipbuilding Inc. is to build the AOPS. Irving Shipbuilding Inc. as the prime contractor of the AOPS Definition Contract is maturing the AOPS design to production-ready status.

The prime contractor for the project’s In-Service Support Contract (ISSC) will be competed separately. The Department is investigating options for a combined ISSC for the AOPS and the Joint Support Ship (JSS) project.

Major Subcontractor(s)

Irving Shipbuilding Inc. is in contract with the following Tier 1 sub-contractors for the AOPS Definition Contract: Odense Maritime Technologies, Lockheed Martin Canada, General Electric Canada, Fleetway Inc. and Lloyds Register Canada.

DND is proceeding to put in place a long term ISSC for the AOPS and JSS vessels. The contract will be competed separately from the design and construction of the two ship classes.

 

Major Milestones
Major MilestoneDate
Treasury Board Preliminary Project Approval May 2007
Design Engineering Logistics Maintenance and Support Contract Awarded May 2008
Revised Project Approval (Definition) I October 2011
Ancillary Contract Awarded June 2012
Revised Project Approval (Definition) II December 2012
Definition Contract Awarded March 2013
Project Approval (Implementation) 2014
Award of Implementation Contract 2015
Delivery of First Ship 2018
Initial Operational Capability 2019
Full Operational Capability 2023
Project Close-Out 2024

Project Outcomes: Deliver ships, a 25-year In-Service Support Contract and associated infrastructures in Halifax, Esquimalt and Nanisivik. This project will sustain Maritime Forces capabilities of conducting armed, seaborne surveillance of Canada's waters, including the Arctic. Once declared at full operational capability it will contribute towards achieving the Canada First Defence Strategy (CFDS) and Canada’s Northern Strategy objectives and the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Navy.

Progress Report and Explanations of Variances: In fiscal year 2012-13, the AOPS project awarded and concluded an Ancillary Contract with Irving Shipbuilding Inc. to validate the existing AOPS design. The task-based Definition Contract and the first two tasks (Project Management and Design Phase 1) were awarded to Irving Shipbuilding Inc. on 7 March 2013. The Definition Contract is progressing on track.

Project Approval (Implementation) and Award of Implementation Contract dates have been advanced to facilitate the Contractor's ramp-up for production to start later in 2015. 

Industrial Benefits:  Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project.  IRBs equivalent to 100% of the contracted value for both the capital acquisition and in-service support will be required. However, IRBs have not been applied to the Ancillary Contract.

CANADIAN CRYPTOGRAPHIC MODERNIZATION PROGRAM

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

The CCMP omnibus project includes the following sub-projects:

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

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

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

 

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

 

Major Milestones
Major MilestoneDate
Preliminary Project Approval for the CCMP Omnibus Project March 2005
Preliminary Project Approval for a CCMP Omnibus Project sub-project: Classified Security Management Infrastructure November 2006
Secure Voice / Telephone Re-key Infrastructure September 2009
Secure Voice / Telephone Family July 2012
Classified Security Management Infrastructure – Phase 1A 2014
Classified Security Management Infrastructure –Phase 1B March 2012
Classified Security Management Infrastructure –Phase 2 Definition March 2013
Link Encryption Family 2020
Secure Mobile Environment 2014
Classified Security Management Infrastructure – Phase 2A 2017
Classified Security Management Infrastructure – Phase 2B 2019
Combat Net Radio Enhancement 2016
Network Encryption Family 2018
Combat Identification Family (Identification Friend or Foe (IFF)) 2018
Secure Radio Family 2019
Classified Security Management Infrastructure – Phase 3 2020

Project Outcomes: Deliver affordable Information Protection by means of cryptographic solutions with an adequate level of security to protect Government of Canada classified electronic information and to provide enhanced interoperability to facilitate the exchange of classified information both nationally and internationally. This requires the right balance between interoperability and sovereignty, while striving to meet unique Canadian requirements. Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

Progress Report and Explanations of Variances: The CCMP is on budget. The CCMP schedule is dependent on the American Cryptographic Modernization Initiative and the Key Management Infrastructure Program. Canada’s collaboration with the United States allows Canada to leverage American research and development and maintain interoperability with its Allies. Completion dates for the sub-projects are regularly reviewed for alignment with the American initiative/program.

The CCMP originated as a 12-year program ending in 2016. In the Treasury Board submission that was approved in November 2012, the end date of the program was extended to 2020. Although the CCMP baseline schedule and cash flow are being updated, extending the end date of the program will not impact the overall cost of the CCMP.

Industrial Benefits: There are no Industrial and Regional Benefits requirements associated with this project.

CANADIAN SEARCH AND RESCUE HELICOPTER PROJECT

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

Project Phase: As of July 2003, all 15 Cormorant helicopters had been delivered. Spare parts and infrastructure were also in place to support operations, and initial training had been completed. Effective Project Closure was achieved in September 2004 at which point the Project Management Office was closed; however, some aspects of the contract were noted as deficiencies. Final contract completion is projected to occur in 2015.

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

 

Prime and Major Subcontractor(s)
Prime Contractor Agusta Westland International Limited (formerly European Helicopters Industries Ltd. (EHI)), Farnborough, UK
Major Subcontractor(s)

Westland Helicopters, Yeovil, UK

Agusta Spa, Cascina Costa, Italy

General Electric Canada Inc., Mississauga, Ontario, Canada

 

Major Milestones
Major MilestoneDate
Treasury Board Effective Project Approval April 1998
Contract Award April 1998
First Aircraft Delivery September 2001
Final Aircraft Delivery July 2003
Effective Project Completion September 2004
Project Close-Out 2015

Project Outcomes: Deliver 15 CSRH aircraft at full operational capability which contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Air Force. The primary beneficiary is the Canadian population who require Search and Rescue services.

Progress Report and Explanations of Variances: The project delivered the 15 aircraft and procured the required aircraft spares, maintenance and support equipment, a Cockpit Procedures Trainer and facilities for the four CAF search and rescue bases. The project also established and funded the first two years of an in-service support contractor for follow-on support.

The Cormorant has been operational at the squadrons in Comox, BC, Gander, NL, Greenwood, NS and Trenton, ON. CH-149 operations at 424 Squadron in Trenton have been suspended due to the lack of aircraft availability and difficulty in maintaining adequate aircrew training. The fleet size has reduced to 14, following the loss of an aircraft in a 2006 crash.

It should be noted that although effective project closure was achieved in September 2004, there is some work still ongoing. This work is related to outstanding deliverables from the original equipment manufacturer, specifically technical publications and aircraft modifications. Full completion is not expected before 2015 at the earliest.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy was applied to this project.  The contractor has successfully completed its IRB obligations. Industry Canada is the IRB Authority and closely monitors IRB achievement.

CANADIAN SURFACE COMBATANT PROJECT

Description: In accordance with the Canada First Defence Strategy (CFDS), the Canadian Surface Combatant (CSC) project will recapitalize Canada’s surface combatant fleet through replacement of the capability found in the Iroquois Class destroyers and the Halifax Class frigates, along with the provision of the necessary integrated logistics support and infrastructure. To sustain the ships through their operational life, the CSC project will define and award In-Service Support contract(s). The CSC project will pursue system commonality in ship design and acquisition. System commonality will potentially generate acquisition and through-life cost savings in a number of areas including crewing, training, maintenance and logistics support. This will result in a number of aspects of the ships being common, regardless of variants produced.

Project Phase: The project is in Definition Phase I which will conclude with the selection of an industry design team. Key activities in Definition Phase 2 will include the design and costing of the ships in anticipation of the implementation phase.

Sponsoring and Participating Departments and Agencies
Sponsoring Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Department(s) Industry Canada, supported by regional development agencies

 

Prime and Major Subcontractor(s)
Prime Contractor

The National Shipbuilding Procurement Strategy Secretariat announced on 19 October 2011 that Irving Shipbuilding Inc. is to build the Canadian Surface Combatant.

Priming arrangements have yet to be determined.

The CSC project intends to complete elements of In Service Support after it has entered the project implementation phase.

 

Major Milestones
Major MilestoneDate
Project Approval (Definition Phase I) June 2012
Project Approval (Definition Phase II) and Contract Approval 2016
Project Approval (Implementation) 2018
Implementation Contract - Awarded 2018
First Delivery 2025
Initial Operational Capability 2026
Full Operational Capability 2042
Project Close-Out 2043

Project Outcomes: The CSC project will recapitalize the capability currently found in Canada’s destroyers and frigates – deliver ships, infrastructure, associated support and In-Service Support contract(s). The introduction of CSC will ensure that the Royal Canadian Navy can “continue to monitor and defend Canadian waters and make significant contributions to international naval operations”. The CSC project contributes to achieving the Canada First Defence Strategy (CFDS) objectives and to achieving the following Program Alignment Architecture (PAA). Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Navy.

Progress Report and Explanations of Variances: The CSC Project commenced definition work in June 2012 and has proceeded with a number of studies to inform the development of technical specifications. In parallel, the CSC project has engaged industry through procurement and technical sessions. In the last year, the CSC project has aligned its schedule with the National Shipbuilding Procurement Strategy programme schedule.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project.  IRBs equivalent to 100% of the Implementation and ensuing In-service support contracts will be required.

CF-18 REPLACEMENT PROJECT

Description: The objective of the CF-18 Replacement Project is to replace the CF-18 fleet on its retirement so as to maintain a manned fighter capability necessary for the defence of Canada and North America, and for Canadian Armed Forces’ (CAF) collective expeditionary operations.

Project Phase: Options Analysis.

Sponsoring and Participating Departments and Agencies
Sponsoring Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Department (s)

National Fighter Procurement Secretariat, PWGSC

Industry Canada and its regional agencies

 

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

 

Major Milestones
Major MilestoneDate
Treasury Board Project Approval (Definition) TBD
Treasury Board Project Approval (Implementation) TBD
First Aircraft Order TBD
Delivery First Aircraft TBD
Initial Operational Capability TBD
Full Operational Capability TBD
Project Close-Out TBD

Project Outcomes: The CF-18 Replacement Project will deliver a fighter aircraft capable of executing the roles and core missions described in the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Air Force (RCAF).

Progress Report and Explanations of Variances: On 3 April 2012, the Government of Canada announced a comprehensive response to Chapter 2 of the 2012 Spring Report of the Auditor General of Canada that included a Seven-Point Plan to meet and/or exceed the Auditor General’s recommendation for replacing Canada’s CF-18 fighter fleet. As a result, the National Fighter Procurement Secretariat was established to provide oversight and coordination amongst the Departments involved with the implementation of the Seven-Point Plan.

A key part of the Seven-Point Plan is an evaluation of options which will review and assess all available fighter aircraft. Until the Seven-Point Plan is complete, including the evaluation of options, the Government will not make a decision on a path forward for the replacement of the CF-18 fleet. However, Canada remains in the Joint Strike Fighter Program to keep the F-35 option open and to enable Canada to benefit from economic opportunities resulting from the partnership.

The dates for all major milestones are ‘to be determined’, pending the completion of the Seven-Point Plan and a Government decision on the replacement of the CF-18 fleet. Following the decision, DND and PWGSC will jointly seek authority from Treasury Board to commence project definition activities.

Industrial Benefits: Industry Canada, through the National Fighter Procurement Secretariat is reviewing information regarding potential industrial benefits to Canada in the context of the evaluation of options. In the meantime, as part of the Seven-Point Plan, Industry Canada will continue identifying opportunities for Canadian Industry to participate in the F-35 Joint Strike Fighter Program.

FIXED WING SEARCH AND RESCUE AIRCRAFT REPLACEMENT

Description: The purpose of the Fixed Wing Search and Rescue Aircraft Replacement (FWSAR) project is to replace the fixed wing Search and Rescue (SAR) capability currently being provided by the CC-115 Buffalo and CC-130H Hercules aircraft. 

This replacement will address the operational deficiencies of the CC-115 Buffalo and legacy CC-130H Hercules fixed wing SAR aircraft while eliminating the supportability and affordability difficulties of the older airframes. The solution will provide the capability to conduct an effective response and immediate assistance to SAR incidents within the Canadian SAR Area of Responsibility.

Project Phase: Definition: Treasury Board approved Expenditure Authority for definition work. Project approval is pending.

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

 

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

 

Major Milestones
Major MilestoneDate
Treasury Board Expenditure Authority – Definition phase March 2012
 Project Approval (Definition) Winter 2013-14
 Project Approval (Implementation) Winter 2014-15
 Contract Award Winter 2014-15
 Delivery First Aircraft Winter 2017-18
 Initial Operational Capability 2018
Full Operational Capability 2020
Project Close-Out 2020

Project Outcomes: Deliver a replacement capability currently performed by the CC-115 Buffalo and CC-130H Hercules aircraft. The project contributes towards achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Air Force. The primary beneficiary is the Canadian population who require Search and Rescue Services.

Progress Report and Explanations of Variances: The project entered the project definition phase upon receipt of Expenditure Authority from Treasury Board for definition work in March 2012.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project.  IRBs equivalent to 100% of contract value will be required.

FORCE MOBILITY ENHANCEMENT

Description: The Force Mobility Enhancement (FME) project is part of the Family of Land Combat Vehicles (FLCV) projects. FME is a two-phase project.

In Phase 1, the project will replace the Leopard 1 Armoured Engineer Vehicle (AEV) BADGER fleet with a modern, heavily protected and mobile platform capable of supporting the newly acquired Leopard 2 Main Battle Tank’s (MBT) out to the year 2035. In this phase, the project will also acquire Leopard 2 based Armoured Recovery Vehicles (ARV) to support the AEV. The ARVs will be acquired by exercising contract options from the Tank Replacement Project (TRP).  Both platforms will support the Leopard 2 MBT until 2035. In addition, they will support all current armoured vehicle fleets and future fleets, including those in the FLCV project.

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

Project Phase: Phase 1 (AEV): Implementation: The FME project received Treasury Board (TB) Project Approval Implementation for Phase 1 on 15 March 2012.

Phase 2 (TMIs): Implementation: The FME project received TB Project Approval Implementation for Phase 2 on 21 November 2013.

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

 

Prime and Major Subcontractor(s)
Prime Contractor

Flensburger Fahrzeugbau (FFG) Gesellschaft mit beschränkter Haftung (GmbH), Flensburg, Germany

Krauss-Maffei Wegmann GmbH & Co. KG (KMW), Munich, Germany

Urdan Metal & Casting Industries Ltd, Tel Aviv, Israel.

Major Subcontractor(s)    Flensburger Fahrzeugbau (FFG) Canada, Bathurst, New Brunswick, Canada

 

Major Milestones
Major MilestoneDate
Identification Phase Approval – Identification Phase September 2008
Senior Project Advisory Committee Approval November 2008
Preliminary Project Approval  – Definition Phase June 2009
Request for Proposal - Phase 1 Released October 2010
Advanced Contract Award Notice (ACAN) on MERX – Phase 2 Released July 2011
Request for Proposal – Phase 2 Released June 2011
Project Approval Implementation (Phase 1) March 2012
Contract Award - Phase 1 April 2012
Project Approval Implementation (Phase 2) November 2013
Contract Award – Phase 2 December 2013
Initial Operational Capability – Phase 1 February 2015
Initial Operational Capability – Phase 2 August 2015
Full Operational Capability December 2016
Project Close-Out 2017

Project Outcomes: Delivery of 18 Leopard 2-based AEV’s, four Leopard 2-based ARV’s and TMI’s specifically 18 Dozer Blades (DB), 16 Track Width Mine Ploughs (TWMP) and 16 Mine Clearing Roller Systems (MCRS) to be installed onto Leopard 2 Main Battle Tanks. The FME project deliverables will provide crucial support to the Leopard 2 tanks, Light Armoured Vehicles III, and a future fleet, such as the Tactical Armoured Patrol Vehicle. Once delivered and declared at full operational capability this project will contribute towards achieving the Canada First Defence Strategy (CFDS) objectives as well as the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Canadian Army.

Progress Report and Explanations of Variances: Phase 1. The AEV initial draft Request for Proposal (RFP) was posted on MERX and closed on 25 June 2010. The final RFP was re-posted on MERX and closed on 27 June 2011. Two bidders were found compliant. Phase 1 received Treasury Board Project Approval Implementation on 15 March 2012. Subsequently, the TRP ARV contract was amended to exercise the four FME ARV options on 26 March 2012 and a contract was awarded to FFG on 05 April 2012 to provide the 18 AEVs.

Phase 2. Due to Intellectual Property (IP) rights, only the MBT Original Equipment Manufacturer (KMW) replied to the draft RFP.  Therefore an Advance Contract Award Notice (ACAN) was posted on MERX in summer 2011 to announce FME project intention to contract with KMW for the DB, the adaptor for the TWMP and necessary MBT modifications. As expected, the ACAN remained unchallenged. Following receipt of a TMI feasibility study report on 16 October 2012 by the Project Management Office, a subsequent ACAN was posted on MERX on 21 December 2012 to announce FME project intention to contract with Urdan Metal and Casting Industries Ltd for the acquisition of MCRS’s as they own IP rights for the Leo 2 MCRS. The ACAN closed on 18 January 2013 and remained unchallenged. TB Project Approval Implementation for Phase 2 was granted on 21 November 2013 and contracts with KMW and Urdan have been awarded December 2013.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. IRBs valued at 100% of the contract value are required in Phase 1 only, with the exception of the government-to-government purchase of the Leopard 2 MBT chassis.  Industry Canada is the IRB Authority and closely monitors IRB achievements.

HALIFAX CLASS MODERNIZATION/FRIGATE LIFE EXTENSION

Description: The HALIFAX Class Modernization/Frigate Life Extension (HCM/FELEX) project is the principal component of the overall HALIFAX Class Modernization (HCM) program. The project will plan and manage 12 HALIFAX ship's mid-life refits, acquire the major elements of a new combat system, and deliver stability enhancements, and magnetic signature improvements. A Commander Task Group capability will also be added in four of the 12 ships. Major equipment acquisitions through HCM/FELEX will include a modernized Command and Control System, Tactical Data Link Improvements, Identification Friend or Foe upgrades for Mode S/5, new radars, a new Electronic Support Measures System, upgrades to the Internal Communications system, and an upgraded Harpoon Weapon System. These acquisitions will satisfy the capability deficiency introduced by the need to contribute in the new littoral operations role of the HALIFAX Class. The mid-life refit period will also provide an opportunity for the insertion of existing equipment sustainment measures to ensure equipment viability through to end of life for the class.

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

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

 

Prime and Major Subcontractor(s)
In-Service Support Contractor (Class Design Agent) Fleetway Incorporated, Halifax, Nova Scotia, Canada
Internal Communications System DRS Flight Safety, Kanata, Ontario, Canada
Multi-Ship Contract (East) Halifax Shipyard, Halifax, Nova Scotia, Canada
Multi-Ship Contract (West) Victoria Shipyards, Victoria, British Columbia, Canada
Combat System Integration Contract Lockheed Martin Canada, Montreal, Quebec, Canada
Harpoon/Advanced Harpoon Weapons Control System (AHWCS) The Boeing Company, St-Louis, Missouri, USA

 

Major Milestones
Major MilestoneDate
Preliminary Project Approval

February 2005 (FELEX)

February 2007 (HCM/FELEX)

Refit Procurement Strategy Approval by Treasury Board Secretariat March 2007
Revised Preliminary Project Approval (Part 1) June 2007
Multi-Ship Contracts (MSC) Awarded (Docking Work Periods & Refits)

March 2008 (West)

March 2008 (East)

Effective Project Approval (EPA) (Part 2) September 2008
Combat System Integration Contract Award November 2008
Refits Begin October 2010
Initial Operating Capability January 2015
Full Operational Capability January 2018
Project Close-Out January 2019

Project Outcomes: Deliver 12 modernized HALIFAX-Class ships capable to execute the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered to the Royal Canadian Navy, the modernized HALIFAX Class ships will be the main contribution towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

Progress Report and Explanations of Variances: In September 2008, Treasury Board granted Effective Project Approval (EPA) and Expenditure Authority for the project.

A Request for Proposal (RFP) for the Multi-Ship Contracts (docking work periods and refits) resulted in two successful bidders, Halifax Shipyard on the east coast and Washington Marine Group (Victoria Shipyards) on the west coast. Contracts were awarded to the two shipyards in March 2008. The Combat System Integration contract was awarded to Lockheed Martin Canada in November 2008.

As of the end of Fiscal Year (FY) 2013-14, the HCM/FELEX project is still in Implementation. Seven of the 12 ships have either started or completed the mid-life refit and four ships have been turned back to the Navy. Of these, three ships are conducting acceptance test and trial activities either alongside or at sea, with the fourth in preparations for the commencement of her test and trials activities.

The project is currently within budget and on schedule to achieve Initial Operational Capability by January 2015.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. IRBs equivalent to 100% of the contract values are required. Industry Canada is the IRB Authority and closely monitors IRB achievements.

INTELLIGENCE, SURVEILLANCE, TARGET ACQUISITION AND RECONNAISSANCE

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

Project Phase: Implementation: The implementation of these sub-projects has been delayed in order to progress numerous Unforecasted Operational Requirements (UOR) for Afghanistan that have been implemented by the Land Force (LF) ISTAR Project Management Office (PMO). The final three sub-projects have received Effective Project Approval for Implementation in January 2012.

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

 

Prime and Major Subcontractor(s)
Type 1 Radios Data Link Communication (DLC) project - Foreign Military Sales US Army, USA
Light Weight Counter Mortar Radars (LCMR) - Foreign Military Sales US Army, USA
Small UAV Service Contract In Situ, Bingen, Washington, USA
Remote Viewing Terminal Unforecasted Operational Requirement (UOR) L3 Communications, CSW, Salt Lake City, Utah, USA
Mini Unmmaned Aerial System MDA, Richmond, British Columbia, Canada

 

Major Milestones
Major MilestoneDate
Treasury Board Preliminary Project Approval April 2003

Minister of National Defence Approval TUAV UOR

Treasury Board Project Approval in Arrears UAV UOR

Full Operational Capability

Project Closed

May 2003

May 2005

December 2005

June 2009

Emergency Beyond Line of Sight Communication Treasury Board Effective Project Approval

Beyond Line of Sight Communication Treasury Board Effective Project Approval

Initial Operational Capability

Full Operational Capability

Project Closed

November 2005

July 2006

March 2008

March 2010

May 2010

Communications & Data Link Component Treasury Board Effective Project Approval

Initial Operational Capability

Full Operational Capability

Project Close-out

December 2006

April 2010

December 2013

June 2014

Command and Control (C2) Treasury Board Effective Project Approval

Initial Operational Capability

Full Operational Capability

Project close-out

February 2008

October 2012

January 2014

March 2014

Early Warning (EW) Sensors Treasury Board Effective Project Approval Phase 1

Amendment 1 (AL 1)

Initial Operational Capability

Full Operational Capability

Project close-out

November 2005

February 2008

March 2006

January 2014

June 2014

In-Service Sensors Enhancement Project Approval Implementation

Initial Operational Capability

Full Operational Capability

Project close-out

January 2012

September 2013

December 2014

March 2015

Medium Range Radar Project Approval Implementation

Initial Operational Capability

Full Operational Capability

Project close-out

January 2012

January 2014

December 2015

March 2016

Weapon Locating Sensors (WLS) Acoustic Sensor Effective Project Approval

Initial Operation Capability

Full Operational Capability

Project Closed

November 2005

March 2008

April 2010

May 2010

Family of UAV Effective Project Approval for UOR

Family of UAV Project Approval Implementation AL 1

Initial Operation Capability

Full Operational Capability

Project close-out

November 2005

January 2012

September 2013

June 2015

December 2015

Light Weight Counter Mortar Radar Effective Project Approval

Initial Operation Capability

Full Operational Capability

Project close-out

March 2007

March 2008

December 2014

April 2015

Deliveries Complete all ISTAR sub-projects December 2015
Project Close-Out December 2016

Project Outcomes: To deliver an integrated intelligence capability with the surveillance, target acquisition, and reconnaissance assets to improve Commanders’ Situational Awareness at all level of commands. Once all sub-projects are delivered and declared at full operational capability, ISTAR will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Canadian Army.

Progress Report and Explanations of Variances: Current estimates are that the project will be completed in 2016. This delay is associated with the necessary diversion of staff effort to address UORs, with the maintenance of an off-the-shelf philosophy and US Government Contracting delays for equipment acquired through Foreign Military Sales. In support of UORs for OPERATION ATHENA in the 2003-04 timeframe, the project delivered equipment in the areas of Command and Control, Tactical Unmanned Aerial Vehicles (TUAV), Weapons Locating Sensors and Electronic Warfare capabilities. These early deliveries enhanced professional knowledge and contributed to project definition work. Early deliveries of elements of the Unmanned Aerial Vehicles, Electronic Warfare and Data Link Communications sub-projects continued during 2006 with the UOR for OPERATION ARCHER. As well, urgently required systems, in particular the Acoustic Weapons Locating System, the Lightweight Counter Mortar Radar system, and additional Electronic Warfare systems were fielded in 2007. Responding to the need for persistent surveillance identified by the Canadian Armed Forces (CAF) Counter Improvised Explosive Devices (IED) Task Force and confirmed in the recommendation of The Independent Panel on Canada’s Future Role in Afghanistan, the LF ISTAR PMO delivered additional Small Unmanned Aerial Vehicle capability through a service contract in 2008. In early 2008, the Electronic Warfare sub-project and the Command and Control sub-project were approved for implementation. The final three sub-projects have received Effective Project Approval for Implementation in January 2012.

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

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

JOINT SUPPORT SHIP

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

Project Phase: Definition.

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

 

Prime and Major Subcontractor(s)
Prime Contractor

The National Shipbuilding Procurement Strategy (NSPS) Secretariat announced on 19 October 2011 that Vancouver Shipyards Co. Ltd (VSY) is to build the JSS. Identification of major sub-contractors will be determined through the Canadian shipyard’s teaming arrangement for JSS construction.

DND is proceeding to put in place a long term In-Service Support Contract (ISSC) for the AOPS (Arctic/Offshore Patrol Ship) and JSS vessels. The contract will be competed separately from the design and construction of the two ship classes. This options analysis will be managed by the Naval Shipbuilding Projects Office. 

 

Major Milestones
Major MilestoneDate
Options Analysis Fall 2009
Revised Project Approval (Definition) June 2010
Project Approval (Implementation) 2016
Award of Implementation Contract 2016
Initial Operational Capability 2019
Full Operational Capability 2020
Project Close-Out 2021

Project Outcomes: The project will deliver two Joint Support Ships. This project contributes to achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

Capability is being delivered to:

  • CAF (specifically the sustainment of the Royal Canadian Navy) for both national and international operations; and
  • Canadian and international communities, when humanitarian assistance is required to be rendered.

Progress Report and Explanations of Variances: On 10 June 2010, the JSS project received Treasury Board expenditure authority for its Definition Phase. The JSS design selection process was completed in May 2013, and the selection of the Military-off-the-Shelf (Berlin Class) design was announced on 2 June 2013.  On 11 October 2013, the Government of Canada announced that JSS would be built prior to the Polar Icebreaker.

Defence is working with Vancouver Shipyards to define the plan and cost estimates for the JSS Design and Production Engineering Contract which is expected to bring the JSS design to a production ready state in time for construction start in 2016.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project.  IRBs equal to 100% of the contract values for the capital acquisition and in-service support will be required.

JOINT UNMANNED SURVEILLANCE AND TARGET ACQUISITION SYSTEM

Description: This project will deliver a mature Long Endurance Unmanned Aircraft System to provide mandatory capabilities for domestic and international operations. This Joint Unmanned Surveillance and Target Acquisition System (JUSTAS) will complement existing reconnaissance, surveillance, and target acquisition capabilities, increase maritime and arctic domain awareness and provide precision force application in support of deployed Land and Special Operations Forces.

Project Phase: Option Analysis.

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

 

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

 

Major Milestones
Major MilestoneDate
Project Approval (Definition) TBD
Project Approval (Implementation) TBD
Contract Award TBD
First aircraft delivery TBD
Initial Operational Capability TBD
Full Operational Capability TBD
Project Close-Out TBD

Project Outcomes: Deliver a mature Long Endurance Unmanned Aircraft System capability that meets the objectives of the Canada First Defence Strategy (CFDS) for a robust domestic and international surveillance capability. JUSTAS delivery contributes to the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Air Force, and will support the Canadian Army and the Royal Canadian Navy.

Progress Report and Explanations of Variances:  The project is in the options analysis phase.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project.  IRBs equal to 100% of the contract value will be required.

LIGHT ARMOURED VEHICLE III UPGRADE PROJECT

Description: The recent experience of the Canadian Armed Forces (CAF) and other nations in Afghanistan, Iraq and global operational theatres highlighted the ongoing requirement for a highly protected, yet highly mobile Light Armoured Vehicle (LAV). The threats of mines and Improvised Explosive Devices (IEDs) have proliferated and are likely to be faced in most medium to high threat missions.  Despite improvements to the protection of the vehicle, the current LAV III fleet has insufficient protection to defeat modern threats.  Further, it has insufficient mobility given the increased protection and payload requirement of the vehicle. As well, the target acquisition and fire control systems require upgrading to overcome obsolescence issues and to improve technical effectiveness and lethality. The LAV III Upgrade Project will capitalize on existing and evolving technology to upgrade a significant portion of the LAV III fleet to a standard required to protect the soldiers and equipment of the CAF in current and future operations.

Project Phase: Implementation: The project finalized the system design and the first deliveries occurred at the end of 2012.

Sponsoring and Participating Departments and Agencies
Sponsoring Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Department(s) Industry Canada and its regional agencies
Prime and Major Subcontractor(s)
Prime Contractor  General Dynamics Land Systems-Canada, London, Ontario, Canada
Major Milestones
Major MilestoneDate
Treasury Board Approval for Definition June 2009
Treasury Board Approval for Contract April 2010
Treasury Board Approval for Implementation October 2011
Contract Award October 2012
First Vehicle Delivery End 2012
Initial Operational Capability Spring 2014
Final Operational Capability 2018
Project Close-Out Spring 2019

Project Outcomes: To deliver 550 LAV III vehicles upgraded in the areas of mobility, protection and lethality capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome:  Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Canadian Army.

Progress Report and Explanations of Variances: The project received Preliminary Project Approval in June 2009 and was announced by the Minister of National Defence in July 2009. The PWGSC submission received Treasury Board (TB) approval in April 2010. The project received Effective Project Approval and Contract Approval from TB in October 2011. Both approvals were announced by the Associate Minister of National Defence and the Minister of PWGSC in October 2011. First deliveries occurred in December 2012 and were announced by the Associate Minister of National Defence in January 2013. Approximately 55 vehicles have been produced to date and fielding to operational units will start in 2014. Initial Operational Capability has moved to spring 2014 to ensure that all activities related to this event are in place.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. General Dynamics Land Systems-Canada is committed to provide IRBs valued at 100% of the contract value.  Industry Canada is the IRB Authority and closely monitors IRB achievements.

LIGHTWEIGHT TOWED HOWITZER

Description: The Lightweight Towed Howitzer (LWTH) project is a key facet of the Land Forces current indirect fire capability deficiency. Specifically, over the summer of 2011, the project fielded 25 M777 lightweight 155mm towed howitzers to the Canadian Army, each with a Gun Management System (GMS), to augment the 12 M777 howitzers in service at the time. The project will also field improved ammunition, Gun Line Communication System (GLCS), and wheeled gun tractors, based upon the Medium Support Vehicle System (MSVS) project Standard Military Pattern (SMP) vehicle. These howitzers provide a capability enhancement in terms of lethality, range, precision, mobility and digitization, and support future missions and tasks likely to be assigned to the Canadian Armed Forces (CAF).

Project Phase: Implementation.

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

 

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

 

Major Milestones
Major MilestoneDate
Identification Phase Approval – Identification Phase January 2008
Preliminary Project Approval (PPA)– Definition Phase June 2008
M777 Foreign Military Sale (FMS) Agreement November 2008
Digital Gun Management System Contract Award November 2009
Effective Project Approval (EPA) – Implementation Phase January 2010
M777 Initial Support Contract Award June 2010
Initial Operational Capability October 2011
Full Operational Capability March 2016
Project Close-Out June 2016

Project Outcomes: Deliver the following capabilities:

  • 25 M777 155mm lightweight howitzers each equipped with a GMS, a Gun Line Communication System (digital radio/ enhanced position location reporting system (EPLRS), a Land Ethernet Switch (LES), a Power Distribution Unit (PDU), and an antenna);
  • 37 wheeled gun tractors (based upon the MSVS SMP) that will pull the howitzer and be equipped with an Ammunition Storage and Handling System (ASHS);
  • Ammunition (including propellant, projectiles and fuses);
  • Integrated logistics support; and
  • Infrastructure enhancements.

Once delivered and declared at Full Operational Capability (FOC), this project will contribute toward achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Canadian Army.

Progress Report and Explanations of Variances: The LWTH project is achieving defined project objectives. Final deliveries of the M777 howitzer and the GMS components commenced in late 2010 and were completed summer 2011.

The Initial Operational Capability (IOC) was originally forecasted to occur in July 2011 and was shifted to October 2011 as a result of unforeseen issues with technical integration.  In October 2012, the project achieved full IOC.

The M777 infrastructure initiative is currently in the construction phase. The majority of infrastructure initiatives are expected to be completed by FY 2014-15.

The LWTH project is currently within the allocated budget and is planning to achieve Effective Project Closure (EPC) in June 2016, representing a slippage from the original EPC date of March 2013. This is due to the requirement to deliver the infrastructure, MSVS gun tractor variant, ammunition components and the Ammunition Stores and Handling System.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. The LWTH project has IRB agreements with BAE Systems on the M777 LWTH FMS Acquisition case and with SELEX on the GMS acquisition contract. Industry Canada is the IRB Authority and closely monitors IRB achievements.

MARITIME HELICOPTER PROJECT

Description: The purpose of the Maritime Helicopter Project (MHP) is to replace the CH-124 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 CH-124, 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 2013, the project marked the nine-year milestone in the Implementation Phase. The project continues to shift focus from design and engineering to flight test and preparations for initial operational testing and evaluation, followed by delivery of the fully capable Maritime Helicopters which contractually were required to start in June 2012.

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

 

Prime and Major Subcontractor(s)
Prime Contractor Sikorsky International Operations Incorporated, Stratford, Connecticut, USA
Major Subcontractor(s)

General Dynamics Canada, Ottawa, Ontario, Canada

L-3 MAS, Mirabel, Quebec, Canada

 

Major Milestones
Major MilestoneDate
Preliminary Project Approval June 2003
Invitations for Bids Posted on MERX December 2003
Effective Project Approval November 2004
Contract Award November 2004
First Delivery (Interim Maritime Helicopters) 2015
First Delivery (Fully Capable Maritime Helicopters) 2018
Final Delivery 2020
Project Close-Out 2021

Project Outcomes: Deliver 28 fully equipped Maritime Helicopters to support operations and deploy with the Halifax Class Frigates capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, it will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome:  Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Air Force and will support the Royal Canadian Navy.

Progress Report and Explanations of Variances: In December 2008, following discussions to minimize delays in the planned delivery of the integrated Maritime Helicopter, the Government and Sikorsky International Operations Incorporated agreed to a new schedule for the delivery of six interim helicopters starting in November 2010, with delivery of fully capable helicopters commencing in Summer 2012.  A second contract amendment in June 2010 modified the requirements for the interim Maritime Helicopter to allow delivery with an earlier version of mission system software while still enabling the start of initial training and operational testing. Delivery of the Maritime Helicopter in June 2012 was not achieved.

Other components of the project such as construction of the Training Centre building in Shearwater, NS, and ship modification work on the 12 Halifax Class Frigates have progressed well. The first test flight of the Maritime Helicopter occurred in November 2008. The second Maritime Helicopter, the first aircraft with complete Mission System Hardware installed, underwent its first test flight in July 2009. Defence crews, as part of the Combined Test Force with Sikorsky International Operations Incorporated, began aircraft testing in July 2009. The first and second Ship Helicopter Operation Limitations – Sea Trials were completed in 2010 and 2011 respectively. In August 2013, the Government and Sikorsky International Operations Incorporated began Sikorsky-funded Risk Reduction Training in Shearwater. To date, 18 helicopters have been built, and the production of helicopters 19 though 28 is underway. The project is running well within its authorized budget.

Earlier in 2013, the Government has initiated a review of the Maritime Helicopter Project, and a study of the alternative helicopters on the market that could potentially meet the Statement of Operational Requirements. On January 3, 2014, the Government of Canada and Sikorsky announced that a Principles of Agreement (POA), which will form the basis of formal contract negotiations, was concluded on December 31, 2013. Under the terms of the POA, Canada will see delivery of helicopters with operational capability sufficient to begin retirement of Sea Kings in 2015, and a program to enhance those capabilities culminating in a fully capable CH-148 Cyclone Maritime Helicopter in 2018.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. Sikorsky has committed to IRBs equivalent to 107% of the contract value for the capital acquisition and 80% of the maximum contract value for the in-service support. Industry Canada is the IRB Authority and closely monitors IRB achievements.

MATERIEL ACQUISITION AND SUPPORT INFORMATION SYSTEM

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

Project Phase: Implementation:  To date, the project has completed Phases 1 to 4 and implementation of Phase 5 is currently underway where emphasis is on the delivery of the MASIS solution to the Army, Air Force, Navy ships and supply chain.

Sponsoring and Participating Departments and Agencies
Sponsoring Department Department of National Defence (DND)
Contracting Authority Public Works and Government Services Canada (PWGSC)
Participating Department(s) N/A

 

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

SAP Canada, Ottawa, Ontario, Canada

Pennant, Ottawa, Ontario, Canada

 

Major Milestones
Major MilestoneDate
Preliminary Project Approval - Expenditure Authority for Phase 1 June 1998
Contract Awarded for Prime Systems Integrator December 1998
MASIS system - Go Live Phase 1 (202 Work Depot Montréal) September 1999

Expenditure Authority for Phases 2 and 3:

  • Implementation of Complex Contracts; 
  • Implementation of the MASIS solution to the Navy;
  • Operations Support & Maintenance for MASIS;
  • Planning and scoping for requirements scheduled to be implemented for the Army.

May 2000

Amended Expenditure Authority for Phase 4:

  • Investigation of opportunities to progress the implementation of MASIS to the maximum extent possible within the future available Phase 5 funding;
  • Management of Operations Support & Maintenance for MASIS (outside MASIS project Expenditure Authority); and
  • Project was deemed as a Major Crown Project with this approval.
December 2003
Amended Expenditure Authority for Phase 5 to cover rollout of additional functionality to wider user base including Air Force and Army. June 2007
Revised Effective Project Approval (EPA) and increase to the Contracting Authority September 2011
Supply chain integrated within Defence Resource Management Information System (DRMIS) November 2013
Implementation of Illustrated Parts Catalogue September 2014
Project Close-Out December 2014

Project Outcomes: Deliver an end-to-end information system to enable materiel acquisition and support processes to the Navy, Army and Air Force. This system has improved visibility and efficiency of weapon system and equipment support. MASIS has also enabled Defence’s vision of business renewal. Once delivered and declared at full operational capability, this software solution will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

Progress Report and Explanations of Variances: In June 2007, the MASIS project received Treasury Board approval for Phase 5.

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

Based on the estimate for completion of the Illustrated Parts Catalogue, the proposed Project Close-out is scheduled for December 2014 to allow for completion of procurement.

Industrial Benefits: There are no Industrial and Regional Benefits requirements associated with this project. IBM Canada has committed to providing industrial benefits on the project, with the total value of the contract procured in Ontario where IBM Canada is based.

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT

Description: The Medium Support Vehicle System (MSVS) Project is a capability replacement project for the existing Medium Logistics Vehicle Wheeled (MLVW) fleet that has reached the end of its service life due to age, heavy usage and corrosion. 

The MSVS project scope consists of four (4) separate procurement activities:

a) Phase 1 - Militarized Commercial-Off-The-Shelf (MilCOTS) Trucks;

b) Phase 2 - Special Equipment Vehicle (SEV) Baseline Shelters;

c) Phase 3 - Modification of the SEV Shelters (also referred to as “Shelter Kitting”); and

d) Phase 4 - Standard Military Pattern (SMP) Trucks in five (5) variants: a Cargo variant, a Cargo with Material Handling Crane variant, a Load Handling System variant, a Cargo Mobile Repair Truck variant and a Gun Tractor Variant. The requirement also includes Trailers, Armour Protection Systems; and long term In-Service-Support.

The project scope also includes an infrastructure component.

Project Phase: Definition.

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

 

Prime and Major Subcontractor(s)
Prime Contractor - MilCOTS Navistar Defence LLC, Warrenville, Illinois, USA
Prime Contractor - SEV Baseline Shelters DEW Engineering and Development ULC, Ottawa, Ontario, Canada
Prime Contractor - SEV Kitting DEW Engineering and Development ULC, Ottawa, Ontario, Canada
Prime Contractor – SMP To be determined

 

Major Milestones
Major MilestoneDate
Preliminary Project Approval June 2006
MilCOTS - Invitation for Bids Posted on MERX November 2007
MilCOTS – Revised  Preliminary Project Approval December 2008
MilCOTS - Contract Award January 2009
MilCOTS - First Delivery June 2009
MilCOTS - Delivery Complete October 2012
SEV Baseline Shelter - Invitation for Bids Posted on MERX May 2008
SEV Baseline Shelter -  Revised  Preliminary Project Approval June 2009
SEV Baseline Shelter - Contract Award July 2009
SEV Baseline Shelter - First Delivery April 2012
SEV Baseline Shelter - Delivery Complete 2014
Kitting - Invitation for Bids Posted on MERX October 2011
Kitting - Revised Project Approval (Definition) November 2012
Kitting - Contract Award December 2012
Kitting - First Delivery Fall 2013
Kitting - Delivery Complete 2016
SMP - Invitation for Bids Posted on MERX July 2013
SMP - Project Approval (Implementation) 2015
SMP - Contract Award 2015
SMP - First Delivery 2017
SMP - Delivery Complete 2018
Project Close-Out 2020

Project Outcomes: Deliver a replacement fleet of medium-weight trucks capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS).  At the conclusion of the project, the Canadian Armed Forces will have acquired two fleets of medium-weight vehicles (MilCOTS and SMP) as well as new SEVs. Once delivered and declared at full operational capability, the project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

Progress Report and Explanations of Variances: On 29 November 2012, Treasury Board expenditure authority was obtained for Phase 3 – Kitting, and a Revised Project Approval (Definition) was granted for all phases of the MSVS project.

  • Phase 1 - The MilCOTS vehicles are in-service.
  • Phase 2 –The SEV Baseline Shelters are in production.
  • Phase 3 - The design and production of the Kits are on-going.
  • Phase 4 – SMP Trucks – The RFP was cancelled in July 2012. The new RFP was issued in July 2013 and is slated to close in January 2014.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to the MilCOTS, SEV Baseline Shelter and SMP contracts. IRBs equal to 100% of the contract values are required. Industry Canada is the IRB Authority and closely monitors IRB achievements. The IRB Policy does not apply to the Phase 3 Kitting contract.

MEDIUM-TO-HEAVY LIFT HELICOPTER

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

The MHLH project will deliver 15 Chinook CH-147F helicopters to support land-based domestic and international operations and to support land staff training on the road to high readiness, as well as integrated logistic support and other related support elements.

Project Phase: Implementation: The MHLH Project entered the implementation phase in July 2009.

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

 

Prime and Major Subcontractor(s)
Prime Contractor The Boeing Company, Philadelphia, Pennsylvania, USA
Prime Subcontractor CAE, St-Laurent, Quebec, Canada

 

Major Milestones
Major MilestoneDate
Synopsis Sheet Preliminary Project Approval June 2006
Advanced Contract Award Notice Posted on MERX July 2006
Effective Project Approval and Contract Award June 2009
First Aircraft Delivery June 2013
Initial Operational Capability June 2014
Full Operational Capability June 2017
Project Close-Out June 2018

Project Outcomes: Deliver 15 Chinook CH-147F helicopters capable of executing the roles and core missions of the Canada First Defence Strategy (CFDS). Once delivered and declared at full operational capability, this project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Air Force and will support the Canadian Army.

Progress Report and Explanations of Variances:  In June 2009, Treasury Board granted Effective Project Approval. In March 2010, a contract amendment to the existing CAE contract for Operational Training was issued to include MHLH requirements. In June 2013, Canada took delivery of the first MHLH aircraft and signed a contract amendment with Boeing for the first 5 of 20 years of In-Service-Support. In July 2013, ground and flight school for aircrew Initial Cadre Training commenced at Canadian Forces Base Petawawa and is proceeding according to plan. As of November 2013, seven aircraft had been delivered and Operational Test & Evaluation was underway. The final aircraft is on schedule to be delivered in June 2014 and an Initial Operational Capability will be declared shortly thereafter.

The milestones for Full Operational Capability and project closure were extended in October 2010 due to delays in pilot production unrelated to MHLH, and are now scheduled for June 2017 and June 2018 respectively.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. IRBs equivalent to 100% of the contracted value are required for both the capital acquisition and integrated in-service support.  Industry Canada is the IRB Authority and closely monitors IRB achievements.

MERCURY GLOBAL

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

Project Phase: Definition.

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

 

Prime and Major Subcontractor(s)
Prime Contractor

Satellite Constellation - United States Department of Defense (DoD) via a Memorandum of Understanding

Terminals - To be determined (TBD)

Prime Contractor (Early Access Terminals) Telesat Canada, Ottawa, Ontario, Canada
Major Subcontractor Satellite Manufacturer - Boeing, St. Louis, Missouri, USA

 

Major Milestones
Major MilestoneDate
Preliminary Project Approval October 2011
Initial Satellite Access June 2012
Effective Project Approval (EPA) April 2014
Terminal Implementation Complete October 2016
Full Operational Capability October 2017
Project Close-Out Winter 2017-18

Project Outcomes: Deliver a near-worldwide, Canadian assured, wideband global Military Satellite Communications System. When operational, this system, when coupled with the secure and protected capabilities being delivered by the Protected Military Satellite Communications project, will ensure, in part, that the CAF will be well-equipped with modern strategic and tactical satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability, the project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

Progress Report and Explanations of Variances: In Phase 1, procurement of guaranteed access to and participation in the U.S. Department of Defense (DoD) Wideband Global Satellite constellation to the year 2032 was approved by Treasury Board (TB) with Preliminary Approval in October 2011. TB also granted approval for DND to enter into a Military Satellite Communications (MILSATCOM) Memorandum of Understanding (MOU) with, principally, the U.S. DoD, and also Denmark, The Netherlands, Luxembourg, and New Zealand. The MOU is the vehicle used to fund the construction and launch of the ninth Wideband Global System satellite and, thereby, provide the U.S. DoD Wideband Global System service to the Department of National Defence (and the others) to, at least, the year 2032. The MOU was signed by Canada in January 2012. In addition, approval was granted to define the terminal segment and to provide funds to facilitate early use of the Wideband Global Satellite Communications service.

Effective Approval for Phase 2 will be sought in 2014 for the procurement and installation, where necessary, of the associated Wideband Global Satellite anchor station and strategic deployable satellite terminals. The EPA date was changed after consultation with PWGSC who advised that the project seek Project Approval and Contract Authority simultaneously. 

With a Wideband Digital Channelizer (WDC) upgrade, Wideband Global SATCOM (WGS) satellites 8 and 9 within the nine-satellite constellation will almost double their current bandwidth availability through innovative and efficient frequency allocation. This satellite modification is being undertaken by the U.S. Department of Defense; International Partners will not share the cost, in part or in total, for this upgrade.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to both phases of this project. In Phase 1, a separate IRB agreement between Boeing and PWGSC was reached in which Boeing committed to IRBs equivalent to 100% of DND’s proportionate share of the final negotiated price of the Boeing contract with the U.S. DoD for the ninth Wideband Global Satellite.  In Phase 2, IRBs will also be required. Industry Canada is the IRB Authority and closely monitors IRB achievements.

PROTECTED MILITARY SATELLITE COMMUNICATIONS

Description: The Department of National Defence (DND) and the Canadian Armed Forces (CAF) are being provided with global communications that are secure, guaranteed and directly interoperable with our Allies by the Protected Military Satellite Communications (PMSC) project. The project will deliver a Canadian Advanced Extremely High Frequency (AEHF) Military Satellite Communications System for near-worldwide assured, secure, survivable, and jam-resistant communications to the CAF for the command and control of deployed Canadian commanders and forces, as well as interoperability with some of our principal allies, the United States, the United Kingdom, and the Netherlands.

Project Phase: Implementation:  The PMSC project is being implemented in two phases with project completion expected March 2021.

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

 

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

 

Major Milestones
Major MilestoneDate
Preliminary Project Approval (PPA) August 1999
Effective Project Approval (EPA) November 2003
Initial Terminal Delivery November 2011
Initial Satellite Availability May 2013
PMSC System Full Operational Capability December 2020
Project Close-Out March 2021

Project Outcomes: Deliver a near-worldwide, assured, secure, survivable, and jam-resistant Canadian Advanced Extremely High Frequency (AEHF) Military Satellite Communications System. This system, when coupled with the wideband capabilities being delivered by the Mercury Global project, will ensure, in part, that the CAF will be well-equipped with modern strategic and tactical satellite communications, permitting them to be fully-integrated, flexible, multi-role, and combat-capable. Once delivered and declared at full operational capability the project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

Progress Report and Explanations of Variances: In the completed Phase 1, procurement of guaranteed access to the U.S. Department of Defense (DoD) Advanced Extremely High Frequency (AEHF) satellite constellation was approved by Treasury Board (TB) with Preliminary Project Approval (PPA) in August 1999. TB also granted approval for DND to enter into a Military Satellite Communications (MILSATCOM) Memorandum of Understanding (MOU) with the U.S. DoD. This would ensure DND access to the U.S. DoD Advanced Extremely High Frequency (AEHF) satellite constellation. This MOU was signed in November 1999. In addition, approval was granted to define the terminal segment. 

Phase 2 has been underway since November 2003, when TB granted Effective Project Approval (EPA) for the procurement and installation, where necessary, of the associated AEHF satellite terminals.

The project is on budget.

Due to slippages in the U.S. DoD overall satellite launch schedule and the Victoria Class submarine installations, the PMSC System Full Operational Capability, has moved to December 2020 from the original expected date of November 2017.

The PMSC Interim Operational Capability was achieved 12 November 2013.

Industrial Benefits: Under the completed Phase 1, the U.S. DoD committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations were permitted to bid on project work. In Phase 2 Canada’s Industrial and Regional Benefits Policy was applied and an IRB Agreement was negotiated with Raytheon. IRB equal to 100% of the contract value are required. Industry Canada is the IRB Authority and closely monitors IRB achievements.

SUBMARINE CAPABILITY LIFE EXTENSION

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

Project Phase: Implementation: The project has delivered four functional Victoria class submarines with up-to-date, safe-to-dive certificates, four crew trainers (including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer), and four trained crews. Canadianization of three platforms and 13 of 17 associated projects have been completed. The last platform (HMCS Corner Brook) will complete Canadianization during her Extended Docking Work Period (EDWP) which is scheduled to begin in the spring of 2014. Effective Project Closure of SCLE is planned for fiscal year 2014-15. The remaining associated projects will be completed by the end of HMCS Corner Brook’s EDWP in the spring of 2017.

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

 

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

 

Major Milestones
Major MilestoneDate
Treasury Board Approval June 1998
Main Contract Award July 1998
Initial Support Contract Award July 1998
Initial Operational Capability (IOC) April 2006
Full Operational Capability (FOC) 2012
Steady-state for the class (three boats available for operations) 2014
Project Close-Out 2015

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

  • four functional Victoria class submarines, acquired from the United Kingdom Ministry of Defence, with up-to-date "safe to dive" certificates;
  • four crew trainers; including a combat systems trainer, a ship control trainer, a machinery control trainer, and a torpedo handling and discharge trainer;
  • a technical data package consisting of manuals, design data, trials reports and maintenance and configuration records;
  • initial spares including on-board and depot spares, special tools and other support equipment; and
  • initial conversion training of four Canadian submarine crews and the fleet support personnel necessary to maintain and operate the Victoria Class.

This project contributes to achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Royal Canadian Navy (RCN).

Progress Report and Explanations of Variances: EPA was granted to the SCLE project in June 1998. The expenditure ceiling was increased by Treasury Board in June 2003 to accommodate increased scope to include 17 submarine related projects and initiatives that were progressing outside the bounds of SCLE. The SCLE project is within budget.

Canada has accepted all four Upholder submarines from the United Kingdom. The operational status of each of these vessels is summarized below as follows: Her Majesty’s Canadian Submarine (HMCS) VICTORIA and WINDSOR are now operational on the west and east coast respectively. HMCS VICTORIA has proven the class weapon capability with the successful sinking of a decommissioned United States Navy Ship during the multinational RIMPAC exercise in 2012. HMCS CHICOUTIMI is currently in the first scheduled deep maintenance period to be conducted by industry. HMCS CHICOUTIMI is planning to begin sea trials in the spring of 2014. HMCS CORNER BROOK will begin her deep maintenance in 2014 and return to the RCN in 2017.

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

Although Effective Project Closure is expected to be achieved during Fiscal Year (FY) 2014-15, a small number of Engineering Changes still require installation in HMCS CORNER BROOK during her upcoming deep maintenance. This will necessitate the scheduling of funding to FY 2016-17.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applied to this project. IRBs valued at 100% of the contract value were required and the contractor successfully met its IRB obligations. Industry Canada is the IRB Authority and closely monitors IRB achievement.

TACTICAL ARMOURED PATROL VEHICLE

Description: The Tactical Armoured Patrol Vehicle (TAPV) Project is one of the four projects within the Army’s “Family of Land Combat Vehicles”.

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

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

Project Phase: Implementation.

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

 

Prime and Major Subcontractor(s)
Prime Contractor Textron Systems Canada Incorporated, Ottawa, Ontario, Canada
Major Subcontractor(s)

Textron Marine and Land Systems, Louisiana, USA

Kongsberg Protech Systems Canada, London, Ontario, Canada

Rheinmetall Canada, Ottawa, Ontario, Canada

Engineering Office Deisenroth Canada, Ottawa, Ontario, Canada

 

Major Milestones
Major MilestoneDate
Preliminary Project Approval June 2009
Project Approval (Implementation) June 2012
Contract awarded June 2012
Initial Operational Capability 2014
Full Operational Capability 2016
Project Close-Out 2017

Project Outcomes: The TAPV project expects to achieve the following outcomes:

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

This project contributes to achieving the Canada First Defence Strategy (CFDS) objectives and the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Canadian Army.

Progress Report and Explanations of Variances: The TAPV Project entered its implementation phase with the approval of Treasury Board in June 2012. The TAPV Project is within its approved budget.  

In November 2008, the Senior Project Advisory Committee approved a procurement strategy for a phased approach within a competitive process. PWGSC released the Letter of Interest/Price and Availability in July 2009 to obtain cost and schedule information to support the Project Approval (Implementation) submission  A Statement of Interest and Qualification was released in March 2010 and closed in June 2010 with seven pre-qualified bidders announced in July 2010. A draft Request for Proposal (RFP) was issued in November 2010 and the final RFP was issued in March 2011 with a closing date of August 2011. RFP evaluation and testing of contender vehicles commenced in fall 2011 and was completed in January 2012. Project Approval (Implementation) and contract award were achieved on 7 June 2012. Pre-production vehicles are currently undergoing Qualification testing at Canadian Forces Base Valcartier and at the United States Army Test Centre in Maryland, USA. 

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project. IRBs equal to 100% of the contract values are required for the capital acquisition of the TAPV and its associated in-service support. Industry Canada is the IRB Authority and closely monitors IRB achievements.

TANK REPLACEMENT PROJECT

Description: The purpose of the Tank Replacement Project (TRP) is to replace Canada's aging Leopard 1 tank fleet with a modern, heavily protected, mobile, direct fire support capability. The TRP is divided into two phases. Phase 1 consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBTs), two Armoured Recovery Vehicles (ARVs), and logistics support from the German (GE) Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBTs from the Netherlands (NLD) Government. Phase 2 consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 MBTs and ARVs into service with the Canadian Armed Forces (CAF) as well as the Integrated Logistics System (ILS) inherent to the variants.

Project Phase: Implementation. The project received Preliminary Project Approval (PPA), inclusive of Effective Project Approval (EPA) for Phase 1, from Treasury Board (TB) in March 2007 and EPA in June 2009 for Phase 2.

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

 

Prime and Major Subcontractor(s)
Phase 1  
MBT & ARV loan

 German Ministry of Defence (MoD)

MBT upgrades Krauss Maffei Wegmann (KMW), Germany
ARV upgrades Rheinmetall Land System (RLS), Germany
MBT purchase Netherlands Government
Phase 2  
Convert 20 to Leopard 2 A4M KMW, Germany
Convert 20 to Leopard 2 A6M KMW, Germany
Repair 42 Leopard 2 A4 Rheinmetall Canada Inc, Canada
Deliver 8 Leopard 2 ARVs RLS, Germany and Rheinmetall Canada Inc, Canada
Integrated Logistics Support (ILS) – Ammunition General Dynamics Ordnance and Tactical Systems, Canada
ILS – Simulators

Rheinmetall Defence Electronics, Germanyand

Rheinmetall Canada Inc, Canada

ILS – Special Tools & Test Equipment Several manufacturers (11 Contracts)
ILS – Initial Provisioning of Spare Parts

Phase 1, several manufacturers (11 Contracts);

Phase 2, Request For Proposal (RFP) in progress, contract awards expected during 2013-14.

Sub-Calibre Training Devices RFP in progress, contract award expected during 2014

 

Major Milestones
Major MilestoneDate
Treasury Board PPA March 2007
Initial Operating Capability (IOC) August 2007
Phase 2 - TB EPA with conditions June 2009
Full Operational Capability (FOC) – (Phase II) February 2015
Project Close-Out May 2015

Project Outcomes: Deliver the following capabilities:

  • 20 Leopard 2 A6M – Operational MBTs equipped with the L55 Gun, additional mine protection, and slat armour systems;
  • 20 Leopard 2 A4M – Operational MBTs equipped with the L44 Gun, mine protection, slat armour, and all around add-on armour systems;
  • 42 Leopard 2 A4 – MBTs primarily used for training, equipped with the L44 Gun and basic protection;
  • 8 Leopard 2 Armoured Recovery Vehicles;
  • Appropriate ammunition, parts and special maintenance tools and training; and
  • 10 Leopard 2 MBTs provided to the Force Mobility Enhancement (FME) project for conversion to Leopard 2 Armoured Engineer Vehicles.

This project contributes to achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence remains continually prepared to deliver National Defence and defence services in alignment with Canadian interests and values.

This capability is being delivered to the Canadian Army.

Progress Report and Explanations of Variances: TB granted EPA in June 2009 with FOC anticipated during 2012. The new FOC estimate is February 2015 for several reasons: one is Canadian ARVs’ delivery schedule by RLS, another is A4 MBT schedule delay by Rheinmetall Canada, and, lastly, delivery of Phase 2 Initial Provisioning from yet-to-be selected contractors. Cost continues to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities.

Industrial Benefits:  Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project’s Phase 2, but not Phase 1. IRBs equal to 100% of the contract values are required for the Phase 2 acquisitions. Industry Canada is the IRB Authority and closely monitors IRB achievements.