Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Minister: The Honourable Harjit S. Sajjan, PC, OMM, MSM, CD, MP

Associate Minister: The Honourable Kent Hehr, PC, MP

Institutional Head: John Forster, Deputy Minister

Chief of the Defence Staff: General Jonathan Vance, CMM, MSC CD

Ministerial Portfolio:

Enabling Instruments:

For further information, see Legislation and National Defence 10.

Year of Incorporation / Commencement: 1923

Other: For further information, see the Department of National Defence and the Canadian Armed Forces website 11.

Organizational Context

Raison d’être and Responsibilities

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

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

In 2016-17, National Defence will be ready to contribute to new Government of Canada national policy priorities. The activities described in this document will ensure DND and the CAF have the capabilities and expertise to successfully complete missions associated with these priorities:

  • Ensuring Sustainable Operational Excellence;
  • Ensuring CAF Posture and Readiness;
  • Strengthening the Defence Team; and
  • Ensuring Defence Resource Stewardship and Affordability.

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

Strategic Outcomes and Program Alignment Architecture

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

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

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

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

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

Organizational Priorities

To advance the Government of Canada’s defence agenda, the Department will focus on the following four enduring organizational priorities:

  • Ensuring Sustainable Operational Excellence;
  • Ensuring CAF Posture and Readiness;
  • Strengthening the Defence Team; and
  • Ensuring Defence Resource Stewardship and Affordability.

Key supporting initiatives − informed by the Minister of National Defence Mandate Letter 13 and the National Defence Plan 2016-19 i − are enabling tasks that address government direction and guide Defence resource management. In addition to other important ongoing work, these initiatives are integrated into Section II of this report to provide a comprehensive overview of departmental plans and expected results.

During fiscal year 2016-17, the Defence Team will work in partnership with other government departments to deliver on the Government’s commitments. With a strong focus on results, the Defence Team will work to define specific initiatives, timelines and targets in response to new government direction. It will further develop measures to assess their effectiveness and impact. While these particulars were not available in time for inclusion in this report, it is the Department’s intent to report on its progress and achievements in future reports.

Priority: Ensuring Sustainable Operational Excellence

Description: The ultimate measure of success of the Defence Team is the successful conduct of operations to protect Canadians and Canadian national interests at home and abroad. All National Defence activities and efforts directed towards these ends - today, tomorrow and in the future - must be privileged. The Department must make longer term investments that are key to current and future operations, including force development, acquisition, infrastructure and supply chains.

Priority Type ii: Ongoing

Key Supporting Initiatives
Planned InitiativesStart DateEnd Date

Link to PAA

Collaborate with partners and allies to refocus Canada’s efforts in Iraq and Syria towards the training of local forces and humanitarian support

November 2015 March 2017

1.2

1.2.1

2.1

Maintain current Defence spending levels, including current planned increases to ensure the CAF have the equipment they need TBD Budget 2016 6.5
Work with Public Services and Procurement Canada to launch an open and transparent competition to replace the CF-18 fighter aircraft, focusing on options that match  Canada’s defence needs January 2016 TBD 4.0
Work with Public Services and Procurement Canada to invest in strengthening the Navy, while meeting the commitments that were made as part of the National Shipbuilding Procurement Strategy Public Quarterly Updates starting in March 2016 TBD 4.0
To renew Canada’s commitment to United Nations peace support operations, make Defence’s specialized capabilities - from mobile to medical teams, to engineering support, to aircraft that can carry supplies and personnel - available on a case-by-case basis TBD TBD 2.1
To renew Canada’s commitment to United Nations peace support operations, help the United Nations respond more quickly to emerging and escalating conflicts and provide well-trained personnel to international initiatives that can be quickly deployed TBD TBD 2.1
Lead an international effort to improve and expand the training of military and civilian personnel deployed on peace operations TBD TBD 1.3.4
Insist that any peacekeepers involved in misconduct be held accountable by their own country and the United Nations TBD TBD 4.1.9
Conduct and sustain routine, non-discretionary operations, such as Search and Rescue obligations, and maintain Canada’s strong commitments to NORAD Ongoing Ongoing 1.1.3
Continue to maintain a strong commitment to NATO Ongoing Ongoing

1.2

1.2.3

3.2.6

Renew Canada’s focus on surveillance and control of Canadian territory and approaches, particularly Arctic regions TBD TBD

1.1

1.1.2


5.1.3


i. The 2016-19 Defence Plan provides strategic guidance and direction for fiscal years 2015-16 to 2018-19. It articulates resource levels – in terms of both fiscal and personnel strengths – and departmental priorities while providing direction to organizations in each of the functional authority areas.  Priorities are developed as a result of identified risks and the results achieved from previous business cycles. Priorities are achieved through the privileging of resources for activities which have measureable performance outcomes that can be assessed and reported.

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

Priority: Ensuring CAF Posture and Readiness

Description: National Defence will maintain its ability to respond to Government of Canada defence policy by managing operational readiness in support of core missions within Canada, in North America and in support of international operations. We must ensure CAF capabilities are positioned and ready to meet operational contingencies and expectations in Canada and around the world.

Priority Type: Ongoing

Key Supporting Initiatives
Planned InitiativesStart DateEnd DateLink to PAA
Conduct an open and transparent review process to create a new defence policy document for Canada, replacing the now out-dated Canada First Defence Strategy December 2015 December 2016 5.0
Continue to evolve the CDS Directive for CAF Force Posture and Readiness (FP&R) 2011 Ongoing 5.2.2
Develop and maintain high readiness forces to respond when tasked to National Defence missions, contingencies and to augment ongoing operations Ongoing in accordance with CDS FP&R As outlined in CDS FP&R

3.1.1

3.1.2

3.1.3

3.1.4

3.1.5

Design, direct, and execute a joint managed readiness programme and ensure exercises and operations in support of maintaining and enhancing Canada’s sovereignty continue to receive high priority and have their scope expanded with a view to increasing participation of all Commands Ongoing (annual 5-year rolling plan) Ongoing (annual 5-year rolling plan)

3.2.1

3.2.2

3.2.3

3.2.4

3.2.5

3.2.6

3.3.5

3.4.5

Support Public Safety Canada in a review of existing measures to protect Canadians and our critical infrastructure from Cyber-threats January 2016 TBD 5.0
Continue to develop, deliver and enhance cyber defence capabilities Ongoing Ongoing

1.3.3

2.2.6

5.1.1

5.1.3

Continue to develop, deliver and enhance space capabilities Ongoing Ongoing

1.3.3

5.1.1

5.1.3

Continue to establish and support robust capabilities in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR), Cyber and information security Ongoing Ongoing 4.4.2
Continuously improve the DND/CAF Business Continuity Plan Ongoing Ongoing 6.1
Continue to implement the Defence Security Plan over three years Ongoing (annual 3-year rolling plan) Ongoing (annual 3-year rolling plan)

6.1

4.1.9

4.4.2

Priority: Strengthening the Defence Team

Description: By investing in personnel, National Defence will ensure successful execution of missions within Canada, North America and around the globe. This implies prudent management of our strategic human resources, developing new skills needed to transition our workforce to areas where investments are required. Intake, retention and training policies must enable our workforce, and leverage the potential of the Regular Force, Reserves and civilians.

Priority Type: Ongoing

Key Supporting Initiatives
Planned InitiativesStart DateEnd DateLink to PAA
Establish and maintain a workplace free from harassment and discrimination in accordance with Operation HONOUR

Phase 2: October 2015

Phase 3:
July 2016

Phase 4:
July 2017

Phase 2: June 2016

Phase 3: June 2017

Phase 4: 2018-19

4.1

6.4

 Reduce complexity, overhaul service delivery and strengthen partnerships with Veterans Affairs Canada  TBD TBD  6.1
Develop a suicide prevention strategy for CAF personnel and Veterans with Veterans Affairs Canada TBD TBD 4.1
Develop an integrated DND/CAF HR Strategy April 2016 March 2017 6.1
Conduct a capability analysis, in support of Government direction, to increase the size of the Canadian Rangers TBD 2017-18 5.0
Pursue recruiting and retention initiatives and carefully manage recruiting efforts to achieve Government of Canada mandated personnel levels by 2018 Ongoing 2017-18

4.1.3

5.2.1

6.4

Develop and operationalize a Multi-Year Establishment Plan to more effectively manage the CAF as it transforms to meet new and emerging challenges 2015 Ongoing

4.1.10

5.2.1

Implement the CDS Initiating Directive and be prepared to respond to future Government of Canada direction on Strengthening the Reserves October 2015 March 2019

4.1.2

5.2.1

Achieve a steady state in the efficiency efforts under the Cadet and Junior Canadian Ranger Program renewal initiative October 2013 December 2018 2.3.2
Monitor training, education, health care and other military personnel functions to find appropriate efficiencies that can be re-invested to support personnel Ongoing Ongoing

4.1.8

4.1.10

Ensure CAF members have ready access to quality health care, including mental health, and that it is delivered in an effective and efficient manner so as to return members to duty as quickly as possible and support them and their families throughout Ongoing Ongoing

4.1

4.1.8

For members who are unable to return to duty, work closely with other Government Departments, particularly Veterans Affairs Canada, as well as Non-Government Organizations, to enable a seamless transition that ensures their continued care and maximizes their opportunity for future success Ongoing Ongoing

 4.1

4.1.4

4.1.7

To deliver the Blueprint 2020 vision, continue to show leadership in building a modern, efficient, and high-performing workforce that supports Canada’s national security objectives while delivering value for money Ongoing Ongoing

6.0

6.4

Continue efforts to streamline civilian training Ongoing Ongoing 6.4
Transform practices and procedures involving the management of the civilian workforce Ongoing Ongoing 6.4
Implement activities in the Strategic Public Affairs Plan to help maintain public trust in National Defence as a capable, well-managed organization and an employer of choice April 2016 March 2017 6.2

 Priority: Ensuring Defence Resource Stewardship and Affordability

Description: To ensure National Defence resource stewardship and affordability in the short, medium and long term, the Defence Team must balance readiness, equipment, personnel and infrastructure and carefully manage resources to maximize capability output, through responsible governance of departmental resources, to deliver the best value for Canada.

Priority Type: Ongoing

Key Supporting Initiatives
Planned InitiativesStart DateEnd DateLink to PAA
Implement and continuously improve a long-term, holistic, affordable acquisition plan in a focused, deliberate manner (Capital Investment Program Plan Review (CIPPR) January 2014 Ongoing

4.2

4.2.1

4.2.2

4.2.7

4.3.1

4.3.2

4.4.2

5.2

5.2.1

6.5

6.9

6.10

Enhance materiel accountability by implementing modern, effective inventory controls, supply chain management and inventory valuation to support existing fleets as efficiently as possible Ongoing Ongoing

4.2.1

4.2.6

6.9

Implement and continue to evolve transformation improvement initiatives, such as the Defence Procurement Strategy and the Independent Review Panel for Defence Acquisition Ongoing Ongoing

4.2

4.2.2

4.2.7

5.2.1

6.5

6.10

Complete the implementation of the centralized management of Real Property and the Infrastructure and Environment Business Modernization program Ongoing April 2021 4.3.1
Complete the National Capital Region long-term accommodation strategy and the move of National Defence Headquarters elements to the Carling Campus 2016-17 2019-20 6.0
Continue to implement the departmental Chief Information Officer model to create a single authority and voice on all IM/IT centric issues including pan-departmental initiatives Ongoing Ongoing 4.4.4
Deliver initial operational capability on Business Intelligence capabilities scalable to the enterprise level January 2016 March 2017

4.4.2

6.7

Implement Phase One of the Project Approval Process Renewal to streamline the project submission and approval process 2016-17 TBD 6.1
Implement key financial controls in compliance with the Treasury Board Policy on Internal Control April 2016 March 2019 6.5
Continue to implement Defence Renewal, including an improved Performance Management Framework utilizing business intelligence to drive effective outcomes that result in productivity improvements and cost avoidance, allowing for the reallocation of dollars and FTEs that can be reinvested in force readiness and capability development priorities, consistent with the Defence Renewal Charter Ongoing Ongoing

2.3.2

3.1

4.1.1

4.1.2

4.1.6

4.1.9

4.1.10

4.2.2

4.2.5

4.2.6

4.3.1

4.4.1

4.4.4

5.2

5.2.1

6.1

6.9

For more information on organizational priorities, see the Minister’s mandate letter on the Prime Minister of Canada’s website 14.

Risk Analysis

National Defence is influenced by a wide range of external and internal factors, both domestic and international, that have an impact on how it carries out its mandate. These factors present both risks and opportunities, which are taken into account as the Department delivers on its roles and responsibilities.

Each year, as part of an Integrated Risk Management approach, an exercise is undertaken to identify key risks and opportunities related to the achievement of departmental objectives. Following an impact and likelihood assessment, strategies are developed to address these risks, and are published in the annual Corporate Risk Profile (CRP). The CRP informs departmental planning processes, including the priority-setting exercise and ensures that resources are allocated effectively.

The strategic environment is marked by increasing complexity and volatility coupled with emerging threats across the spectrum of conflict. The requirement for capability interdependence has become increasingly significant. At the same time, fiscal prudence and stewardship continue to play a pivotal role in departmental initiatives. To this end, capabilities that cut horizontally across DND and the CAF in contributing to operations and force posture and readiness will be privileged.

For 2016-17, the Department identified seven key risks and opportunities which focus on:

  • Defence readiness;
  • Defence Team capability;
  • Strategic resilience;
  • Capability delivery;
  • Integrated information management / information technology;
  • Financial controls and reporting of inventory and assets; and
  • Security

A number of controls are in place to respond to these risks and opportunities. Response strategy initiatives covered in this report are outlined in the table below. For details, see the applicable links to the Program Alignment Architecture.

National Defence will continue to monitor emerging issues, developments and trends so as to anticipate and mitigate the risks associated with them. In doing so, the department will remain prepared to respond and provide the Government of Canada with advice and options underpinned by ready trained forces and capabilities.

 

RiskRisk Response StrategyLink to PAA

Defence Readiness

There is a risk that National Defence will not have sufficient force elements of appropriate readiness to respond to concurrent missions, or sequential missions before reconstitution is complete. This includes missions that are planned in advance, as well as responses to unexpected events which by their nature are unpredictable in time, number, location and effect.

Continue to evolve the CDS Directive for CAF Force Posture and Readiness in order to institutionalize it within the overall Defence Strategic Planning Framework. 5.2.2
Design, direct, and execute a joint managed readiness programme in order to maintain and enhance Canada’s sovereignty and institutionalize joint training at the strategic level.

3.2

3.2.5

3.3.5

3.4.5

Defence Team Capability

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

Develop an integrated DND/CAF HR Strategy to ensure the Defence Team continues to support and execute operations, is postured to implement emerging capabilities, and is shaped to exploit future capabilities and pre-empt future threats. 6.1
Pursue recruiting and retention initiatives and carefully manage recruiting efforts to achieve Government of Canada mandated personnel levels by 2018 in order to strengthen a CAF regular and reserve workforce that is representative of Canada’s diverse population and reflects Canadian values.

4.1.3

5.2.1

6.4

Develop and operationalize a Multi-Year Establishment Plan in order to more effectively manage the CAF as it transforms to meet new and emerging challenges.

4.1.10

5.2.1

Conduct a comprehensive review of Primary Reserve employment and be prepared to respond to future Government of Canada direction on strengthening the Reserves in order to ensure that reserve forces more effectively support National Defence efforts.

Continually monitor training and education, health care and other military personnel functions in order to find appropriate efficiencies that can be re-invested in supporting our personnel.

 

4.1.2

5.2.1

Continue efforts to streamline civilian training, including the training required by military personnel to manage civilians and financial resources in order to take advantage of and promote the use of on-line training, the Canada School of Public Service and the Defence Learning Network for their training needs. 6.4
Continue to show leadership in building a modern, efficient, and high-performing workforce that supports Canada’s national security objectives while delivering value for money in order to deliver the Blueprint 2020 vision.

6.0

6.4

Transform practices and procedures involving the management of the civilian workforce in order to provide the flexibility to invest civilian growth in new and emerging areas, increase efficiencies, support diversity and more broadly a civilian workforce that is reflective of Canada’s population and promote a progressive, respectful environment that maximizes the opportunity for our members to contribute and in which all Canadians can be proud of.  6.4
Ensure CAF members have ready access to quality health care, including mental health, and that it is delivered in an effective and efficient manner in order to return our members to duty as quickly as possible and support them and their families throughout. For those unable to return to duty, National Defence will work closely with Other Government Departments, especially Veterans Affairs Canada (VAC), as well as Non-Government Organizations (NGOs), in order to enable a seamless transition that ensures their continued care and maximizes their opportunity for future success.

4.1

4.1.4

4.1.7

Strategic Resilience

There is a risk that unexpected events may change the strategic picture such that it requires significant changes to the strategic level of resource planning and result in disruption to National Defence’s business operations.

Continue to implement Defence Renewal including an improved oversight and reporting process in order to comprehensively transform our major business processes. Defence Renewal will strengthen governance, management and planning of resources, improving the ability to respond to changes in the strategic environment.

Defence Renewal will facilitate the creation of a lean and efficient organization that can generate savings to be reinvested in military capabilities and readiness and facilitate the delivery of a modern, first-class military to sustain the operational excellence for which we are known, and continue to earn the support and trust of Canadians.

2.3.2

3.1

4.1.1

4.1.2

4.1.6

4.1.9

4.1.10

4.2.2

4.2.5

4.2.6

4.3.1

4.4.1

4.4.4

5.2

5.2.1

6.1

6.9

Capability Delivery

There is a risk that the complexity of development, program approval and procurement processes will prevent National Defence from meeting its investment targets in critical physical assets (equipment, physical and information infrastructure and real property) in a timely, sustainable and affordable manner to enable CAF operations. This risk is about failing to close gaps, or preventing gaps in capabilities which may lead to future mission failure.

Continuously improve and implement a long-term, holistic, affordable investment plan portfolio and corporate submissions process in a focused, deliberate manner in order to ensure equipment deliveries and project advancement vital to establishing future departmental and CAF capabilities.

4.2

4.2.1

4.2.2

4.2.7

4.3.1

4.3.2

4.4.2

5.2

5.2.1

6.5

6.9

6.10

Implement and evolve transformation process improvement initiatives such as the Defence Procurement Strategy which includes Third Party Review (Independent Review Panel) in order to improve capital project acquisitions and support to existing fleets and ensure alignment of internal resource governance bodies with Treasury Board requirements and the governance structure of the Investment Plan.

4.2

4.2.2

4.2.7

5.2.1

6.5

6.10

Implement Phase One of the Project Approval Process Renewal (PAPR) in order to streamline the project submission and approval process. 6.1

Integrated Information Management / Information Technology

There is a risk to National Defence if it does not take advantage of emerging technology to further an integrated IM/IT infrastructure that can provide a flexible and agile information environment conducive to efficient interoperable joint CAF operations and executive decision making, while achieving value for money and demonstrating sound stewardship. Failure to do so could also imperil the Command and Control (C2) of CAF operations at home and abroad as well as the effective management of the defence enterprise.

Implement the departmental Chief Information Officer (CIO) model, in accordance with Government of Canada directives and guidelines in order to create a single authority and voice on all IM/IT centric issues including pan-departmental initiatives. 4.4.4
Work with Shared Services Canada to further enhance its relationship and ensure operational success. 6.7
Develop and implement robust Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR), Cyber and information security capabilities in order to provide the capacity to succeed in these evolving areas.

4.4.2

5.1.3

Deliver initial operational capability on Business Intelligence capabilities scalable to the enterprise level in order to increase functionalities, automation and efficiencies and help rationalize legacy applications.

4.4.2

6.7

 

Financial Controls and Reporting of Inventory and Assets

There is a risk that the financial reporting of inventory and capital assets in the Public Accounts of Canada and the Departmental Financial Statements may not accurately reflect the true value of the Department’s asset holdings which may result in a loss of confidence in the Department’s ability to manage the public purse. Without the proper financial controls in place, this could lead to DND/CAF being subject to more scrutiny which might reduce business flexibility and hinder agility. More importantly, without this visibility and control, we are at risk of wasting precious resources that should be directed to higher priority initiatives.

Enhance materiel accountability by implementing modern, effective inventory controls, supply chain management and inventory valuation in order to support existing fleets as efficiently as possible.

4.2

4.2.6

6.5

6.9

Security

There is a risk that some elements of the Defence Security Program are insufficient to assure the protection of all assets and the continuity of critical services in support of readiness, capacity and operational capability.

Continue to implement the Departmental Security Plan in order to identify and manage critical security risks, help ensure operational success and safeguard information and assets.

4.1.9

6.1

Continue to resolve IM/IT security risks through the implementation of the Defence Security Plan over 3 years in order to reduce security risks to a level that offers sufficient protection of sensitive information, meets baseline IT security requirements and prevents unauthorized disclosures. 4.4.2
Advance efforts to develop a comprehensive operational framework for the conduct of cyber operations to maintain DND/CAF freedom of manoeuvre in the cyber domain. 5.1.1

 

Planned Expenditures

Budgetary Financial Resources (dollars)

2016–17
Main Estimates
2016–17
Planned Spending
2017–18
Planned Spending
2018–19
Planned Spending
18,640,268,933 18,640,268,933 19,462,061,542 19,470,244,184

Human Resources (Full-Time Equivalents [FTEs])

The Department will continue to realign the civilian workforce in support of strategic priorities. Growth in key areas is projected and strategies are being implemented to increase growth and retention. The effect of these measures may not be visible in the short term.

The following table summarizes National Defence’s total planned human resources 15 FTEs for the next three fiscal years, 2016-19.

 

 2016-172017-182018-19
Military - Regular Force 68,000 68,000 68,000
Civilian 24,407 24,407 24,407
TOTAL 92,407 92,407 92,407

Notes:
1. Figures may not add up to total due to rounding
.
2. One FTE does not necessarily equal one employee (i.e. Two part-time employees may count as one FTE).  See Appendix: Definitions.

Human Resources – Reserve Force Personnel

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

The following table provides National Defence’s total planned human resources for Reserve Force Personnel 16 for the next three fiscal years, 2016-19.

 2016-172017-182018-19
Primary Reserve 27,000 27,000 28,500
Cadet Organization Administration and
Training Service
8,000 8,000 8,000
Canadian Rangers 5,000 5,000 5,000
Note: The Reserve Force will have an increase of 1,500 average paid strength and the Rangers will grow at a rate that will be sustainable from current population pool available in the northern areas as per Government of Canada direction

Budgetary Planning Summary for Strategic Outcome(s) and Program(s) (dollars)

Strategic Outcomes,
Programs and
Internal Services

2013-14
Expenditures

2014-15
Expenditures
2015-16
Forecast
Spending
2016-17
Main
Estimates
2016-17
Planned
Spending
2017-18
Planned
Spending
2018-19
Planned
Spending
Strategic Outcome 1: Defence Operations and Services Improve Stability and Security, and Promote Canadian Interests and Values
1.0 Defence Combat and Support Operations 1,488,574,710 1,229,363,372 1,537,747,578 1,235,618,328 1,235,618,328 1,248,194,497 1,273,209,024

2.0 Defence Services and Contributions to Government

520,303,388 497,418,597 373,922,252 323,558,922 323,558,922 325,949,892 333,110,322
Subtotal 2,008,878,098 1,726,781,969 1,911,669,829 1,559,177,250 1,559,177,250 1,574,144,389 1,606,319,346
Strategic Outcome 2: Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values
3.0 Defence Ready Force Element Production 3,340,624,380 3,284,882,232 3,132,677,120 3,469,027,157 3,469,027,157 3,505,575,556 3,564,198,463
4.0 Defence Capability Element Production 12,464,777,545 12,504,965,147 13,186,756,753 12,775,597,776 12,775,597,776 13,540,527,595 13,443,511,760
5.0 Defence Capability Development and Research 437,853,050 462,489,089 381,346,423 397,614,790 397,614,790 401,175,948 408,745,909
Subtotal 16,243,254,975 16,252,336,468 16,700,780,296 16,642,239,723 16,642,239,723 17,447,279,099 17,416,456,132
Internal Services Subtotal 512,241,132 474,820,024 454,322,298 438,851,960 438,851,960 440,638,054 447,468,706
Total 18,764,374,206 18,453,938,461 19,066,772,423 18,640,268,933 18,640,268,933 19,462,061,542 19,470,244,184

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance) / Chief Financial Officer Group
Note: Due to rounding, figures may not add up to totals shown.

 

 

Departmental Planned Spending for 2016-17 by Program (Dollars)

Departmental Planned Spending for 2016-17 by Program (Dollars)

Description of Figure: Departmental Planned Spending for 2016-17 by Program (dollars)

This pie chart illustrates the Department of National Defence’s planned spending for Fiscal Year 2016-17, broken down by Program.

The percentages allocated to each section, from largest to smallest, are:

  • 68%, $12,775,597,776 for Defence Capability Element Production;
  • 19%, $3,469,027,157 for Defence Ready Force Element Production;
  • 7%, $1,235,618,328 for Defence Combat and Support Operations;
  • 2%, $438,851,960 for Internal Services;
  • 2%, $397,614,790 for Defence Capability Development and Research; and
  • 2%, $323,558,922 for Defence Services and Contributions to Government.

 

Alignment of Spending with the Whole-of-Government Framework

Alignment of 2016-17 Planned Spending with the Whole-of-Government Framework 17 (dollars)

Departments and agencies are required to indicate in their Report on Plans and Priorities the alignment of programs to Government of Canada outcome areas. The alignment of strategic outcomes and their corresponding programs to the whole-of-government framework makes it possible to calculate spending by Government of Canada outcome area and correctly total all government spending. For a description of each of the outcome areas, see the Treasury Board of Canada Secretariat website. 18

 

Strategic OutcomeProgram Sub Program Spending Area Government of Canada Outcome

2016-17 Planned Spending

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

1.0 Defence Combat and Support Operations

1.1 Domestic and Continental Defence Operations Social Affairs A safe and secure Canada 252,899,104
1.2 International Combat Operations International Affairs A safe and secure world through international engagement 195,451,958
1.3 Ongoing Centralized Operations and Operational Enablement International Affairs A safe and secure world through international engagement 787,267,266

2.0 Defence Services and Contributions to Government

2.1 Disaster Relief and Humanitarian Operations International Affairs A safe and secure world through international engagement 17,898,969
2.2 Defence Services for Canadian Safety and Security Social Affairs A safe and secure Canada 97,797,905
2.3 Military Heritage and Outreach Social Affairs A vibrant Canadian culture and heritage 207,862,048
Defence Remains Continually Prepared to Deliver National Defence and Defence Services in Alignment with Canadian Interests and Values 3.0 Defence Ready Force Element Production 3.1 Force Elements Readiness Sustainment Social Affairs A safe and secure Canada 1,159,779,945
3.2 Force Elements Integration Training Social Affairs A safe and secure Canada 421,969,180
3.3 Force Elements Production Social Affairs A safe and secure Canada 1,238,913,945
3.4 Operational Readiness Production, Coordination and Command and Control Social Affairs A safe and secure Canada 648,364,087
4.0 Defence Capability Element Production 4.1 Military Personnel and Organization Lifecycle Social Affairs A safe and secure Canada 3,737,129,401
4.2 Materiel Lifecycle Social Affairs A safe and secure Canada 6,019,894,981
4.3 Real Property Lifecycle Social Affairs A safe and secure Canada 2,230,300,542
4.4 Information Systems Lifecycle Social Affairs A safe and secure Canada 788,272,852
5.0 Defence Capability Development and Research 5.1 Capability Design, Development and Integration Social Affairs A safe and secure Canada 324,935,081
5.2 Strategic Direction and Planning Support Social Affairs A safe and secure Canada 72,679,709

 Total Planned Spending by Spending Area (dollars)

Spending AreaTotal Planned Spending
Economic Affairs N/A
Social Affairs 17,200,798,780
International Affairs 1,000,618,193
Government Affairs N/A
Total
(does not include Internal Services)
18,201,416,973

  Departmental Spending Trend

 

Departmental Spending Trend Graph

Description of Figure: Departmental Spending Trend Graph

This bar graph depicts Defence's financial spending trend starting with fiscal year 2013-14.

On the Y-axis are dollars ranging from 0 to 25,000,000,000. On the X-axis is Fiscal Year 2013-14 through 2018-19.

Statutory Financial Spending Trend is:

  • $1,751,329,001 in 2013-14;
  • $1,606,156,838 in 2014-15;
  • $1,275,575,351 in 2015-16;
  • $1,314,598,925 in 2016-17;
  • $1,325,886,758 in 2017-18; and
  • $1,336,317,646 in 2018-19

Voted Financial Spending Trend is:

  • $17,013,045,205 in 2013-14;
  • $16,847,781,623 in 2014-15;
  • $17,791,197,072 in 2015-16;
  • $17,325,670,008 in 2016-17;
  • $18,136,174,784 in 2017-18; and
  • $18,133,926,538 in 2018-19.

Total Financial Spending Trend is:

  • $18,764,374,206 in 2013-14;
  • $18,453,938,461 in 2014-15;
  • $19,066,772,423 in 2015-16;
  • $18,640,268,933 in 2016-17;
  • $19,462,061,542 in 2017-18; and
  • $19,470,244,184 in 2018-19.

 

Over the period 2013-14 to 2018-19 actual expenditures, forecast spending and planned spending varies from a low of $18.8 billion in 2013-14 to a high of $19.5 billion in 2018-19. This net increase of $0.7 billion is summarized as follows:

Explanation of Departmental Financial Spending Trend Changes from 2013-14 to 2018-19 (dollars)
Funding associated with Manuge v. Her Majesty the Queen Class Action Lawsuit (510,000,000)
Funding related to lower Employee Benefit Plan forecasts (385,281,654)
Funding related to measures announced by the government in Budget 2012 and Budget 2013 to make government more efficient and return to a balanced budget (267,063,568)
Funding associated with National Defence Priorities (263,238,827)
Funding authorized to be carried forward between fiscal years (196,080,528)
Funding to support Canada's international security operations in Afghanistan (144,000,000)
Funding related to the establishment of Shared Services Canada as a stand-alone agency (44,620,992)
Other miscellaneous departmental requirements (126,693,740)
Total Decreases (1,936,979,309)
Annual escalator on Defence spending as announced in Budget 2008 to provide long-term and predictable funding 1,805,964,000
Net adjustments to spending on major capital equipment and infrastructure projects to align financial resources with current project acquisition timelines 836,885,289
Total Increases 2,642,849,289
Net Change 705,869,980

Estimates by Vote

For information on National Defence’s organizational appropriations, consult the 2016-2017 Main Estimates 19.