Department of National Defence and the Canadian Armed Forces - Report on Plans and Priorities 2015-16

Status Report on Transformational and Major Crown Projects

 

AIRLIFT CAPABILITY PROJECT – STRATEGIC

Description: The objective of the Airlift Capability Project – Strategic (ACP-S) is to acquire new aircraft that will provide the Canadian Armed Forces (CAF) with the global reach necessary to operate effectively over long distances, as well as to deliver personnel and cargo directly into a theatre of operation, including threat environments.

Project Phase: On 11 December 2014, Treasury Board approved a project amendment to increase availability and flexibility of the strategic airlift fleet.

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, St-Louis, Missouri, USA
Major Subcontractor(s) The Boeing Company via Foreign Military Sales (FMS) case, St-Louis, Missouri, USA

 

Major Milestones
Major Milestone Date
Synopsis Sheet (Effective Project Approval) June 2006
Advanced Contract Award Notice Posted on MERX July 2006
Contract Award February 2007
Delivery First Aircraft August 2007
Initial Operational Capability – first four aircraft October 2008
Full Operational Capability – first four aircraft December 2012
Amended Project Approval December 2014
Initial Operational Capability – fifth aircraft April 2015
Full Operational Capability – fifth aircraft August 2015
Project Close-Out December 2015

Project Outcomes: Deliver C17 Globemaster III aircraft and the required infrastructure at 8 Wing Trenton. 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.  Revised project approval for a fifth aircraft and related spares will provide for the increased flexibility and availability in the Canadian Armed Forces Strategic Airlift fleet.

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

Progress Report and Explanations of Variances: Four aircraft were accepted on schedule and the fleet initially achieved Full Operational Capability in December 2012.  Project closure will be after the last aircraft achieves Full Operational Capability which is scheduled for 120 days after delivery of the aircraft to Trenton.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to this project for the acquisition of C17 Globemaster III aircraft.  IRBs equivalent to 100% of the contracted value are required for both the capital acquisition and Boeing’s share of the integrated in-service support from the US Government.

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 has replaced the Canadian Armed Forces’ aging CC130E 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: The project entered the Implementation Phase with the December 2007 contract award to Lockheed Martin Corporation for 17 CC130J aircraft.  The contract was subsequently amended in December 2009 to include provisions for in-service support, in February 2010 for maintenance training systems, and in November 2013 for the Block 7 avionics modification required to satisfy final Project Deliverables.  Aircraft deliveries began in May 2010.  All aircraft were 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
Block 7 Treasury Board Approval November 2014
Full Operational Capability September 2016
Project Close-Out December 2016

Project Outcomes: Deliver 17 CC130J 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 Outcomes:  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: 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 (Acquisition)

Under the National Shipbuilding Procurement Strategy (NSPS) announcement on 19 October 2011, 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.

Major Subcontractor(s) (Acquisition)

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.

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

 

Major Milestones
Major Milestone Date
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) December 2014
Award of Implementation Contract January 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 Engineering Design Phase 1 – Preliminary Design Review) were awarded to Irving Shipbuilding Inc. on 7 March 2013. The Definition Contract is progressing on track and remains under budget. The first design milestone, the Preliminary Design Review, was successfully achieved in December 2013.  Task 3 (Engineering Design Phase 2 – Critical Design Review) and Task 7 (Project Implementation Proposal) were issued in January 2014 as planned. Task 3 led to the second design milestone, the Critical Design Review, which was successfully achieved in August 2014. Under Task 7, Irving Shipbuilding Inc. delivered the four cost estimates for the Project Implementation (Build) Proposal in April, June, August and October 2014 which formed the basis of the AOPS Project Implementation (Build) Treasury Board Joint Submission. Task 5 (Long Lead Items), Task 4 (Design Phase 3 – Final Design Review) and Task 6 (Test Production Module) were respectively issued in June, September and October 2014 and are progressing as planned in support of the “Cut Steel Date”.

Project Approval for Implementation and Award of the ship construction Contract dates have been respectively advanced to December 2014 and January 2015 to support the contractor’s intended production start date of the first ship.

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 2015
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 2020
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 Operations and Services Improve Stability and Security, and Promote 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 (CSH) project was to replace the CH-113 Labradors with a fleet of 15 new helicopters. The new helicopters have addressed the operational deficiencies of the CH-113 Labrador fleet and eliminated the supportability difficulties of the older airframes.  Given expected aircraft availability rates and a sufficient fleet size, continuous operations are anticipated well into the 21st century.

Project Phase: 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 (EPC) 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 CSH aircraft at full operational capability which contributes towards the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values.

This capability is being delivered to the Royal Canadian Air Force (RCAF).  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 RCAF 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, British Columbia, Gander, Newfoundland, Greenwood, Nova Scotia and Trenton, Ontario.  CH-149 operations at 424 Squadron in Trenton have been suspended in 2005 due to the lack of aircraft availability and difficulty in maintaining adequate aircrew training.  The fleet size was reduced to 14, following the loss of an aircraft in a 2006 crash.

It should be noted that although EPC was achieved in September 2004, there is some work still ongoing.  This work remaining is related to retrofit after design specification that is completed when major maintenance is conducted on the fleet. Full completion is expected in 2015.

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.  Key activities for the remainder of the Definition Phase include the selection of an industry design team or teams which will work with Irving Shipbuilding Inc, the National Shipbuilding Procurement Strategy designated shipyard, for 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

Under the National Shipbuilding Procurement Strategy (NSPS) announcement on 19 October 2011, Irving Shipbuilding Inc. is to build the Canadian Surface Combatant.

Priming arrangements have yet to be determined.

The CSC project intends to go to competition for 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) 2016
Contract Approval (Definition Phase II) 2016
Project Approval (Implementation) 2020
Implementation Contract - Awarded 2020
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 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 progressed towards the selection of a procurement strategy for the acquisition of the ships.

Industrial Benefits: Canada’s Defence Procurement Strategy, announced in February 2014, applies to the competitive sourcing of the combat systems portion of this project. The CSC project is collaborating with Industry Canada to define its implementation.

 

FUTURE FIGHTER CAPABILITY 

Description:  The objective of the Future Fighter Capability Project is to replace the CF18 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’ 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) 2015-17
Treasury Board Project Approval (Implementation) 2018-20
Contract Award 2018-20
Delivery First Aircraft TBD
Initial Operational Capability TBD
Full Operational Capability TBD
Project Close-Out TBD

Note: The forecast dates are subject to change when Project Approval is granted by Treasury Board.

Project Outcomes: The Future Fighter Capability 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 CF18 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 to review and assess all available fighter aircraft.  The RCAF has completed the evaluation of options, which has been reviewed by an Independent Review Panel.  Information that is not commercially sensitive or classified has been released.  Canada remains in the Joint Strike Fighter Program to keep the F-35 option open and to provide companies in Canada the opportunity to compete for contracts on the F-35 aircraft.

Industrial Benefits: Industry Canada, through the National Fighter Procurement Secretariat has reviewed information regarding potential industrial benefits to Canada in the context of the evaluation of options.  As part of the Seven-Point Plan, Industry Canada has also continued 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 CC115 Buffalo and CC130H Hercules aircraft.

This replacement will address the operational deficiencies of the CC115 Buffalo and legacy CC130H 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) 2015
 Project Approval (Implementation) 2016
 Contract Award 2016
 First Aircraft Delivery 2019
 Initial Operational Capability 2020
Full Operational Capability 2022
Project Close-Out 2023

Project Outcomes: Deliver a replacement capability currently performed by the CC115 Buffalo and CC130H 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: As per Canada’s Defence Procurement Strategy, a Value Proposition will apply to the FWSAR project.  The project office will collaborate with Industry Canada to define its implementation.

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 One, 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 (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 and MBT.  The ARVs will be acquired by exercising contract options from the Tank Replacement Project (TRP).

In Phase Two, the project will acquire Tactical Mobility Implements (TMI) for the Leopard 2 MBT, to include mine rollers, mine ploughs, and dozer blades.

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

Phase Two (TMI):  Implementation:  The FME project received TB Project Approval Implementation for Phase Two 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 Contractors

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

Kongsberg Defence and Aerospace, Norway

Major Subcontractor(s)   

Flensburger Fahrzeugbau (FFG) Canada, Bathurst, New Brunswick, Canada

Kongsberg Protech Systems Canada, London, Ontario, Canada

 

Major Milestones
Major MilestoneDate
Preliminary Project phase Approval (Definition) September 2008
Senior Project Advisory Committee Approval November 2008
Preliminary Project Approval - Phase One June 2009
Request for Proposal released - Phase One October 2010
Advanced Contract Award Notice (ACAN) posted on MERX - Phase Two July 2011
Request for Proposal released - Phase Two June 2011
Revised Project Approval - Phase One March 2012
Contract Award - Phase One April 2012
Project Approval - Phase Two November 2013
Contract Award - Phase Two December 2013
Initial Operational Capability (IOC) - Phase One October 2016
IOC  - Phase Two August 2015
Full Operational Capability (FOC) December 2017
Project Close-Out March 2018

Project Outcomes: Delivery of 18 Leopard 2 AEVs, four Leopard 2 ARVs and TMI, specifically 18 Dozer Blades, 16 Track Width Mine Ploughs and 16 Mine Clearing Roller Systems to be installed onto Leopard 2 MBT as required.  The FME project deliverables will provide crucial capabilities for the Leopard 2 and provide required support to other key armoured fleets used by the Canadian Army. 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 (CA).

Progress Report and Explanations of Variances: On 10 December 2013, the contractor informed DND that IOC would be postponed for seven months from February 2015 to September 2015 due to delays in the design and delivery of the casted chassis modules.

On 26 August 2014, DND was notified of a second delay; IOC is now postponed until October 2016 (an additional 13 months) and FOC is postponed until December 2017 (12 months).  This second delay is due to postponement of the ballistic testing by eight months.  An additional four months period was built into the overall project timelines for likely delays in the final design and acceptance tests, for a total of 12 months.  This extension was endorsed at Senior Review Board on 7 October 2014.

The 12 month extension for the FME Project will cause schedule, operational, financial and personnel impacts, all of which can be managed internally by the CA and the Materiel Group.

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 One 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 EQUIPMENT LIFE EXTENSION

Description: The HALIFAX Class Modernization/Frigate Equipment 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, 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: 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 and Communications, 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 and 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 (IOC) 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 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 2014-15, the HCM/FELEX project is still in Implementation.  Twelve of the 12 ships have either started or completed the mid-life refit.  Six ships have transitioned back to the Operational Authority and are completing acceptance test and trial activities either alongside or at sea.

The project is currently within budget and on schedule. IOC is expected to be declared in 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 is ongoing.  Three sub-projects have been successfully completed and closed.   Seven sub-projects remain to be completed.

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
Remote Viewing Terminal Unforecasted Operational Requirement (UOR) L3 Communications, CSW, Salt Lake City, Utah, USA
Mini Unmanned Aerial System MDA, Richmond, British Columbia, Canada

 

Major Milestones
Major MilestoneDate
Treasury Board Preliminary Project Approval April 2003

Minister of National Defence Approval Tactical Unmanned Air Vehicle

Treasury Board Project Approval in Arrears Tactical Unmanned Air Vehicle

Initial Operational Capability

Full Operational Capability

Project Closed

May 2003

May 2005

December 2003

December 2005

June 2009

Minister of National Defence Approval Beyond Line of Sight Communication

Beyond Line of Sight Communication In arrears Treasury Board Effective
Project Approval

Initial Operational Capability

Full Operational Capability

Project Closed

November 2005


July 2006

March 2008

March 2010

May 2010

Data Link Communication Treasury Board Effective Project Approval

Initial Operational Capability

Full Operational Capability

Project close-out

December 2006

April 2010

December 2014

March 2015

Command and Control (C2) Treasury Board Effective Project Approval

Initial Operational Capability

Full Operational Capability

Project close-out

February 2008

October 2012

November 2015

March 2016

Electronic Warfare (EW) Treasury Board Effective Project Approval
Urgent Operational Requirement

Electronic Warfare (EW) Treasury Board Effective Project Approval Amendment 1

Initial Operational Capability

Full Operational Capability

Project close-out


November 2005

February 2008

March 2006

June 2015

September 2015

In-Service Sensors Project Approval Implementation

Initial Operational Capability

Full Operational Capability

Project close-out

January 2012

March 2015

March 2016

July 2016

Medium Range Radar Project Approval Implementation

Contract Award

Initial Operational Capability

Full Operational Capability

Project close-out

January 2012

June 2015

June 2017

December 2017

March 2018

Acoustic Weapon Locating Sensors 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 Urgent Operational Requirement

Family of UAV Project Approval  Implementation Amendment 1

Initial Operation Capability

Full Operational Capability

Project close-out

November 2005

January 2012

September 2014

March 2016

July 2016

Light Weight Counter Mortar Radar Effective Project Approval

Initial Operation Capability

Full Operational Capability

Project close-out

March 2007

March 2008

December 2015

March 2016

Deliveries Complete all ISTAR sub-projects May 2018
Project close-out September 2018

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 project will contribute towards achieving the following Program Alignment Architecture (PAA) Strategic Outcome: Defence Operations and Services Improve Stability and Security, and Promote 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 2018.  This delay is associated with the necessary diversion of staff effort to address the maintenance of an off-the-shelf philosophy, US Government Contracting delays for equipment acquired through Foreign Military Sales and by other delays incurred in deliveries.  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.  In February 2008, the Electronic Warfare sub-project and the Command and Control sub-project were approved for implementation.  In January 2012, the Family of Unmanned Aerial Vehicles, In-Service Sensor and Medium Range Radar sub-projects were approved for implementation.

The TUAV 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 ISTAR project was the first project to implement the new Defence Procurement Strategy through the introduction of a rated Value Proposition and of Industrial and Technological Benefits for its Medium Range Radar sub-project Request for Proposal.

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 project 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 and support to operations 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

Under the National Shipbuilding Procurement Strategy (NSPS) announcement on 19 October 2011, 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 option will be managed by the Naval Shipbuilding Projects Office.

 

Major Milestones
Major MilestoneDate
Options Analysis Fall 2009
Revised Project Approval (Definition) 1 June 2010
Revised Project Approval (Definition) 2 April 2014
Revised Project Approval (Definition) 3 November 2014
Revised Project Approval (Definition) 4 Spring 2015
Project Approval (Implementation) 2016
Award of Implementation Contract 2016
Initial Operational Capability 2019
Full Operational Capability 2020
Project Close-Out 2020

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.

This capability is being delivered to the Royal Canadian Navy.

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.  On 3 April 2014 Treasury Board approval was obtained to complete the Initial Design Review (IDR) by Vancouver Shipyards Co. Ltd. (VSY).

The permanent design license for the Military-off-the-Shelf design was procured in September 2014 and the IDR work started on 23 September 2014. This risk reduction phase will allow VSY to review the design information and develop the detailed plans and cost data for the JSS Design and Production Engineering (D and PE) work.  The IDR Phase is expected to be completed in spring 2015 at which time the D and PE Phase will commence.

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.  The 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) 2016-18
Project Approval (Implementation) 2019-20
Contract Award 2019-20
First aircraft delivery 2021-25
Initial Operational Capability TBD
Full Operational Capability TBD
Project Close-Out TBD

Note: The forecast dates are subject to change when Project Approval is granted by Treasury Board.

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: As per Canada’s Defence Procurement Strategy, it is expected that the Industrial Technological Benefits and Value Proposition will apply to this acquisition.  Details will be confirmed during the Option Analysis and Definition phases.

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 December 2012
Initial Operational Capability June 2014
Final Operational Capability 2018
Project Close-Out March 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.  Approximately 185 legacy LAV III have been inducted into production.  143 vehicles have been produced and 64 have been fielded to operational units.  Initial Operational Capability occurred in June 2014.

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 addresses a Canadian Army (CA) indirect fire key capability deficiency and also provides required capability enhancements in terms of the lethality, range, precision, mobility and digitization needed to support the missions and tasks likely to be assigned to the Canadian Armed Forces.  Specifically, the project is required to field 25 M777 lightweight 155mm towed howitzers to the CA, each with a Gun Management System (GMS), to augment the 12 M777 howitzers already in service.  The project will also field improved ammunition, Gun Line Communication System (GLCS), and wheeled gun tractors, based upon the Medium Support Vehicle System (MSVS) Standard Military Pattern (SMP) vehicle, as delivered by the ongoing MSVS project.

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 ES, 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 (IOC) October 2012
Full Operational Capability December  2017
Project Close-Out March  2018

Project Outcomes: Deliver the following capabilities:

  • 25 M777 155mm Lightweight Towed 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 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 LWTH project is achieving defined project objectives. Deliveries of the M777 howitzers and the GMS components commenced in late 2010 and were completed in the summer of 2011.

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 Fiscal Year (FY) 2015-16.

The LWTH project is currently within the allocated budget and is planning to achieve Effective Project Closure (EPC) in March 2018, representing a slippage from the original EPC date of June 2016.  This is due to the requirement to deliver infrastructure, the MSVS gun tractor variant, ammunition components and the ASHS.  In FY 2013-14, the LWTH project completed an evaluation trial of the ASHS.  It is expected that the resulting design changes will be finished by the end of FY 2014-15.  The ASHS forms part of the MSVS gun tractor; therefore, its full production and delivery will be synchronized with the delivery of the MSVS gun tractor.

In FY 2014-15, the LWTH project received news that the delivery of the improved ammunitions (Precision Guided Kit - Course Correcting Fuze) has been delayed to address improvements after completion of the evaluation trial.  This has forced the LWTH project to delay its systems integration work until the ammunition is delivered.  This work should be completed by March 2018. 

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 Lightweight Towed Howitzer Foreign Military Sales 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 CH124 Sea King with a fleet of 28 new fully equipped Maritime Helicopters bundled with a long-term in-service support contract and the modification of the HALIFAX class ships to accommodate the new Maritime Helicopters.  This replacement will address the operational deficiencies of the current CH124, eliminate the supportability difficulties of the older helicopter, and provide a sufficient fleet size of multi-purpose shipborne Maritime Helicopters for operations well into the 21st century.

Project Phase: Implementation.

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
Amended Project Approval (Implementation) June 2014
First Delivery (Block 1  Maritime Helicopters) 2015
First Delivery (Block 2 Maritime Helicopters) 2018
Final Delivery 2021
Project Close-Out 2022

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 June 2014, Public Works and Government Services Canada and the Department of National Defence received a revised Effective Project Approval from Treasury Board.  Based on this approval, the Government and Sikorsky International Operations Incorporated signed a contract amendment on 18 June, 2014.  This amendment extended the In-Service Support Agreement out to 2038 and re-baselined the project schedule. This new schedule allows for eight initial capability Block 1 Aircraft to be delivered starting in June 2015.

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.  In August 2013, the Government and Sikorsky International Operations Incorporated began Sikorsky-funded Risk Reduction Training in Shearwater, which is still on going.

To date, 27 helicopters have completed initial build, and four of these have completed the Block 1 upgrade program.  The initial build of the 28th helicopter is underway. The project is running within its authorized budget.

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.

MEDIUM SUPPORT VEHICLE SYSTEM PROJECT

Description: The Medium Support Vehicle System (MSVS) project scope consists of four separate procurement activities:

Phase 1 - Militarized Commercial-Off-The-Shelf (MilCOTS) Trucks;
Phase 2 - Special Equipment Vehicle (SEV) Baseline Shelters;
Phase 3 - Modification of the SEV Shelters (also referred to as “Shelter Kitting”); and
Phase 4 - Standard Military Pattern (SMP) Trucks in five 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 - Delivery Complete March 2011
Baseline Shelter - Contract Award July 2009
Baseline Shelter - First Delivery May 2012
Baseline Shelter - Delivery Complete February 2015
Kitting - Contract Award December 2012
Kitting - First Delivery January 2014
Kitting - Delivery Complete Fall 2016
SMP - Invitation for Bids Posted on Buy and Sell July 2013
SMP - Bid Solicitation Closed January 2014
SMP - Project Approval (Implementation) May 2015
SMP – Contract Award June 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 Army will have acquired two fleets of medium-weight vehicles (MilCOTS and SMP) as well as new baseline shelters.  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 (TB) 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 ongoing.
    Phase 4 – SMP Trucks – The Request for Proposals (RFP) was cancelled in July 2012. The new RFP was issued in July 2013 and closed in January 2014. Bid evaluations were completed in September 2014, and the TB Corporate Submission Process started in September 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: The Medium-to-Heavy Lift Helicopter (MHLH) project will establish a new transport helicopter capability to support land-based domestic and international operations.  The project will deliver 15 Chinook CH147F helicopters and the associated infrastructure and support elements to create a new helicopter unit based in Petawawa, Ontario.  One of the logistics support elements is aircrew training which will be provided through the Operational Training Systems Provider initiative.

Project Phase: The MHLH Project entered the implementation phase in June 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 – Aircraft and In-Service Support The Boeing Company, Philadelphia, Pennsylvania, USA
Prime Contractor – Aircrew Training CAE, St-Laurent, Quebec, Canada
Prime Contractor – Petawawa Infrastructure Ellis Don Corporation, Ottawa, Ontario, Canada

 

Major Milestones
Major MilestoneDate
Preliminary Project Approval June 2006
Advanced Contract Award Notice Posted on MERX July 2006
Effective Project Approval and Boeing Acquisition Contract Award June 2009
CAE Contract Amendment to include MHLH Operational Training March 2010
Ellis Don Contract Award October 2010
First Aircraft Delivery June 2013
Boeing Contract Amendment – In-Service Support (first five years) June 2013
Last Aircraft Delivery June 2014
Initial Operational Capability (IOC) Fall 2014
Full Operational Capability (FOC) June 2017
Project Close-Out June 2018

Project Outcomes: Deliver 15 Chinook CH147F helicopters and associated support elements 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:  All 15 aircraft have been delivered on time with the final aircraft being delivered in June 2014.  The project is progressively establishing the support systems and aircraft capabilities to enable the declaration of IOC and FOC.  The declaration of IOC is expected to occur in December 2014. A reduction in the size of the project office, commensurate with the work remaining, commenced in 2014 and will continue until project closure.

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 deliver the infrastructure to tap into the United States Wideband Global System (WGS). The project will provide Military Satellite Communications for near-worldwide assured, wideband communications to the Canadian Armed Forces (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, Australia, Denmark, the Netherlands, Luxembourg, Belgium 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

Space segment - United States Department of Defense (DoD) via a Memorandum of Understanding

Anchor Segment – Announced in fall 2014

Strategic Deployment 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 Operating Capability May 2013
Effective Project Approval (EPA) October 2014
Terminal Implementation Complete October 2016
Full Operational Capability October 2016
Project Close-Out January 2017

Project Outcomes: Deliver a near-worldwide, assured, wideband global Military Satellite Communications System.  When operational, this system will ensure, in part, that the CAF will be well-equipped with modern strategic 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 early access terminals and participation in the US Department of Defense (DoD) Wideband Global Satellite constellation to the year 2031 was approved by Treasury Board (TB) with Preliminary Approval in October 2011. The MOU is the vehicle used to fund the construction and launch of the ninth Wideband Global System satellite and, thereby, provide the US DoD Wideband Global System service to the Department of National Defence and other international partners to at least, the year 2031.  The MOU was signed in January 2012.  In addition, approval was granted to define the anchor and the terminal segments and to provide funds to facilitate early use of the Wideband Global Satellite Communications service.

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

Effective Approval for Phase 3, the strategic deployable terminals, will be sought in 2016 after the definition is completed.

With a Wideband Digital Channelizer upgrade, Wideband Global SATCOM 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.

Through the Initial Operating Capability, MG is supporting the CAF in OPERATION IMPACT.  This effort provides additional robustness to the overall operation and underscores the value proposition of MG.

Industrial Benefits: Canada’s Industrial and Regional Benefits (IRB) Policy applies to the first 2 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 US 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.  Further IRBs will be investigated to determine their applicability to Phase 3.

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 guaranteed access to an 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: 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 Foreign Military Sales (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 Operational Capability 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 AEHF Military Satellite Communications System.  This system 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 Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values.

Progress Report and Explanations of Variances: In the completed Phase 1, procurement of guaranteed access to the US Department of Defense (DoD) 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 Memorandum of Understanding (MOU) with the US DoD.  This would ensure DND access to the US DoD 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 for the procurement and installation, where necessary, of the associated AEHF satellite terminals.

Risk mitigation strategies have been identified to minimize future costs due to installations that exceeded budgeted estimates.  These strategies have included, awarding installation activities to the supplier with the lowest overall cost structure, while the feasibility of proceeding with firm-fixed price contracts has been explored and implemented.

Due to slippages in the US 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 Initial Operational Capability was achieved 12 November 2013.

Industrial Benefits: Under the completed Phase 1, the US DoD committed to a work share with Canadian industry proportional to our contribution. Suppliers from both nations were permitted to bid on project work. 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 15 of 17 associated projects have been completed.  The last platform (HMCS CORNER BROOK) will complete Canadianization during her Extended Docking Work Period (EDWP) which started towards the end of Fiscal Year (FY) 2014-15.  Effective Project Closure of SCLE is planned for FY 2015-16.  The remaining associated projects will be completed as part of Project Close-out by the end of HMCS CORNER BROOK’s EDWP scheduled for the summer 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) November 2012
Steady-state for the class (three boats available for operations) 2014
Effective Project Closure (EPC) FY 2015-16
Project Close-Out 2017

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: Effective Project Approval (EPA) was granted to the SCLE project in June 1998. The expenditure ceiling was increased by Treasury Board in June 2003 to accommodate the increased scope to include 17 submarines 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 Pacific Rim exercise in 2012. HMCS CHICOUTIMI is currently completing the first scheduled deep maintenance period to be conducted by industry. HMCS CHICOUTIMI is currently conducting sea trials and upon completion she will be transferred to the RCN for operational employment and “steady state” will have been achieved for the class (i.e. three submarines available for operations). HMCS CORNER BROOK will begin extended docking work period in 2015 and will 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 EPC is expected to be achieved during Fiscal Year (FY) 2015-16, a small number of engineering changes still require installation in HMCS CORNER BROOK during her upcoming deep maintenance as well as the procurement of long-lead supply items.  This will necessitate the scheduling of funding to achieve Project Close-out in 2017.

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 Canadian Army’s “Family of Land Combat Vehicles”.

The TAPV project will deliver a wheeled combat vehicle to the Canadian Army (CA) 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 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 Mid 2016
Full Operational Capability Mid 2017
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 (acquisition and support contracts) were achieved on 7 June 2012.  Six pre-production vehicles were received in July 2013 and underwent Qualification Testing at Canadian Forces Base Valcartier and at the United States Army Aberdeen Test Centre in Maryland, USA. In August 2014, a first round of testing successfully identified design challenges.  The project returned to the contract design phase in order to allow the complex, inter-related designs for the vehicle’s structure, suspension and steering to be improved. Reliability testing is expected to resume at the Nevada Automotive Test Center, USA in the summer of 2015 and conclude by early 2016. Repeat engineering qualification testing will be conducted as necessary. This testing does not represent an additional investment by Canada beyond the contract awarded to Textron for the acquisition of the TAPVs in June 2012.

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 One consisted of the loan of 20 Leopard 2 A6M Main Battle Tanks (MBTs), two Armoured Recovery Vehicles (ARVs), and logistics support from the German Government for immediate deployment to Afghanistan, as well as the purchase of 100 surplus Leopard 2 MBTs from the Netherlands Government.  Phase Two consists of the repair, overhaul, upgrade and introduction of up to 100 Leopard 2 MBTs and eight 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, inclusive of Effective Project Approval (EPA) for Phase One, from Treasury Board (TB) in March 2007 and EPA in June 2009 for Phase Two.

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 One  
MBT and 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 Two  
Convert 20 to Leopard 2 A4M KMW, Germany
Convert 20 to Leopard 2 A6M KMW, Germany
Repair 42 Leopard 2 A4 Rheinmetall Canada Inc, Saint-Jean-sur-Richelieu, Quebec, Canada
Deliver eight Leopard 2 ARVs RLS, Germany and Rheinmetall Canada Inc, Saint-Jean-sur-Richelieu, Quebec, Canada
ILS – Ammunition General Dynamics Ordnance and Tactical Systems, Le Gardeur, Quebec, Canada
ILS – Simulators

Rheinmetall Defence Electronics, Germany

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

Phase One, several manufacturers (11 Contracts); and

Phase Two, several manufacturers (Five contracts)

Sub-Calibre Training Devices Request for proposal (RFP) in progress, contract award expected  early 2015
A4M Upgrade Krauss Maffei Wegmann (KMW), Germany

 

Major Milestones
Major MilestoneDate
Treasury Board Preliminary Project Approval March 2007
Initial Operating Capability (IOC) August 2007
Phase 2 - TB EPA with conditions June 2009
Full Operational Capability (FOC) - (Phase Two) 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;
  • 12 Leopard 2 ARVs (including four funded through the Force Mobility Enhancement (FME) project);
  • Appropriate ammunition, parts and special maintenance tools and training; and
  • 10 Leopard 2 MBTs provided to the FME project for conversion to Leopard 2 Armoured Engineer Vehicles.

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 (CA).

Progress Report and Explanations of Variances: TB granted EPA in June 2009 with FOC anticipated during 2012.  FOC was changed from 2012 to an estimated date of February 2015 for several reasons: Canadian ARVs’ delivery schedule by RLS, A4 MBT schedule delay by Rheinmetall Canada (completed September 2014) and, lastly, delivery of Phase 2 Initial Provisioning.  All 42 Leopard 2A4 MBT and the first two Leopard 2 ARVs have been delivered.  All 20 Leopard 2 A4M MBT have been delivered to date, two of these tanks remain at the contractor, KMW, one as the reference tank and one undergoing upgrade work.  The Leopard 2 A6M fleet, consisting of 20 tanks, continues to undergo a major repair program following the combat mission in Afghanistan.  Currently, four Leopard 2A6Ms have completed repairs and have been returned to the CA, two are undergoing major repairs at KMW and are expected to be operationally ready in October and December 2014, 13 are undergoing Repair and Overhaul at 202 Workshop Depot and one  is at KMW as a reference tank.  Costs continue to be tightly managed within the cost ceiling in accordance with the core deliverables and prioritized activities.  The project intends to achieve effective project closure, not project close-out, during May 2015 because there will be deliveries post-May, notably ARVs, Sub-Caliber Training Device and Initial Provisioning items.

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.