Main Estimates – Grants and Contributions

Contribution: NATO Security Investment Program

Key Facts

Details

• The North Atlantic Treaty Organization Contribution Program is comprised of two NATO budgets and one NATO program: NATO Military Budget, NATO Security Investment Program and NATO Other Activities Budget.
• The NATO Security Investment Program (NSIP) covers major construction and command and control system investments of the Alliance.
• NSIP is not a NATO budget per se but rather a ceiling against which host nations (owners of NSIP projects) may call upon common funds for NATO Security Investments. Once the ceiling has been reached, investments will be delayed to subsequent years, or allies will agree to increase the ceiling.
• It supports the roles of the NATO Strategic Commands by providing critical installations and facilities, such as:
  • Airfield, fuel systems and harbor facilities
  • Air command and control systems
  • Automated information systems
  • Intelligence, surveillance, and reconnaissance capabilities
• NSIP spending in recent years have been consistently exceeding planned capital spending. This will likely continue over the next years. The anticipated increase in NSIP spending is the result of:
  • Implementation of several large capabilities approved in 2018 and 2019 has started. Notably, five significant air-related capabilities, totalling approximately €1.9B over 15 years, will have a significant impact on upcoming spending levels.
  • Capital costs associated with the NATO Command Structure, communications and information system (CIS) costs for replacing obsolete systems, and the need to maintain and augment CIS capability in a rapidly changing world continue.
  • Reduced decision points and streamlined program management approach fostered by the new common funded capability delivery governance model. The full impact of the new governance model is expected to be more significant later in the planning period.

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Innovation for Defence Excellence and Security (IDEaS) Program

Key Facts

Details

• The Innovation for Defence Excellence and Security (IDEaS) program was announced in June 2017 with the release of Canada's defence policy Strong, Secure, Engaged (SSE).
• Through IDEaS innovative thinkers are providing the Department of National Defence, the Canadian Armed Forces (CAF) and Canada's safety and security communities with unique solutions to today's toughest defence and security challenges.
• IDEaS has three main objectives:
  • Catalyzing innovation clusters by promoting and supporting science and technology (S&T) networks of academics, industry, other government departments, as well as other external partners that conduct research and development;
  • Holding competitions for ideas that invite innovators to present viable solutions to specific defence and security S&T challenges; and,
  • Providing innovators with opportunities to assess their innovations in a test environment and receive feedback from DND/CAF subject-matter experts (Sandbox program element). This iterative process will also allow National Defence to procure small volumes of innovations for assessment in operational environments (Test Drive program element).

COVID-19

• Due to the ongoing and evolving COVID-19 outbreak, the IDEaS program has scaled back its outputs to adapt to the reduced capacity issues facing a lot of Canadian workplaces, and provide innovators with more flexibility and time to deliver ongoing projects.
• The current phase of the Pop-Up City contest will be delayed by approximately 10 weeks, and subsequent milestones will also shift. This shift does not pose a risk to the milestones that will take place in the 2021-22 fiscal year. 
• The IDEaS program pivoted some of its capacity and existing tools to reach out to the innovation sector to develop novel solutions or refine existing technologies that could help respond to the COVID-19 pandemic.
• This includes addressing challenges in areas such as personal protective equipment, sanitization, diagnostics and testing, moral injury, and disease-tracking technology.
• Two specific projects being funded as a result of IDEaS' participation in the National Research Council's Pandemic Response challenge, valued at approximately $1M each are:
  • Diagnostics Biochem: Their planned anti-SARS-CoV-2 serological tests are intended to detect antibodies to SARS-CoV-2 in human blood. They have developed four tests, each of which provides information that helps physicians, epidemiologists, and other specialists to evaluate the nature of the infection, including the timing between the infection and the blood test. Their test will differentiate between people that have been infected by the virus from individuals that never were infected, whether they have been symptomatic or not.
  • Custom Biologics is targeting point-of-care solutions that will bring rapid testing directly to the community. Test kits are being developed that are more stable for shipping and storage and will not require trained personnel for handling. Saliva based tests are designed to detect SARS- CoV-2 instead of a nose swab, a much simpler and more agreeable procedure. Finally, they are developing point-of-care readers. Testing is currently done on laboratory-based equipment. Custom Biologics is exploring a variety of point-of-care devices that can be deployed in diverse community- based settings such as long-term care facilities, mobile clinics, airports, and sea going vessels.

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Grant for Compensation for Employers of Reservists

Key Facts

Details

• The role of reservists in international operations has increased significantly since the early 1990s. For example, 15% of each rotation to Afghanistan was made up of reservists (i.e. 400-600 per rotation).
• The Compensation for Employers of Reservists Program (CERP) came into effect on September 25, 2014. It is implemented and delivered by Employment and Social Development Canada (ESDC) on a cost-recovery basis.
• In addition to compensating employers and increasing reservists' availability for operational duty, CERP is also seen as an awareness-building tool that can improve people's understanding of reservists' value and purpose.
• CERP will provide financial support to civilian employees, and self-employed reservists, to help offset operational costs their businesses may incur when a reservist employee is deployed away from work on a Chief of the Defence Staff-named - international or domestic - operation. Eligible applicants will receive a lump sum payment, in the form of a grant, following the deployment period of the reservist employee.
• Operating costs for employers may include:
  • Training or hiring replacement workers;
  • Increasing overtime hours for existing employees;
  • Business realignment to mitigate staff reduction; and,
  • Reduced revenue.

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Grants and Contributions for Mobilizing Insights in Defence and Security (MINDS)

Key Facts

Details

• MINDS is an innovative program which provides access to evidence-based research and collaboration between the Defence Team and the defence and security expert community.
• The program assists DND/CAF in responding to key defence and security policy challenges in areas such as: national resilience, continental defence and NORAD modernization; great power competition; understanding emerging domains and technology; addressing hateful conduct; and, eliminating sexual misconduct. 
• MINDS also provides the flexibility to adjust to a changing security environment, such as the changes arising from COVID-19, ensuring the Defence Team has the knowledge and support it needs to meet these challenges.
• The program ensures Gender Based Analysis (GBA+) is incorporated in all MINDS activities and supports Indigenous reconciliation and youth engagement.

Key Achievements

• From the start of FY 2019-20 to date, MINDS has continued to deliver a high quality program, with many notable achievements. For example:
  • MINDS' first Collaborative Networks continued to grow and three new networks were added, each with a unique and relevant focus: addressing hateful conduct and right wing extremism; military design and innovation; and, strategic analysis related to great power competition, capacity building and defence relationships.
  • The program granted an increasing number of scholarships at the Master's, Doctoral and Post-Doctoral level, including to Indigenous Masters students, with topics ranging from the Arctic to cyberspace.
  • MINDS quickly adapted to the needs of the department for information on crown prerogative and defence intelligence. Connecting one of the country's preeminent constitutional scholars with the Defence Team.
  • Through its grants, MINDS helped fund a number of thought-provoking events including a well-attended and well-received event on modernizing North American Defence – a DND/CAF priority from SSE.
  • MINDS launched a special grant competition in response to COVID-19, soliciting input from experts on how COVID-19 is changing the global security environment, identifying lessons learned and best practices, and determining short- and long-term implications for DND/CAF. 

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Grant for the National Offices of the Cadet Leagues of Canada

Key Facts

Details

• The Navy League of Canada, the Army Cadet League of Canada and the Air Cadet League of Canada (collectively referred to as the "Cadet Leagues") are national federally incorporated not-for-profit organizations.
• These organizations support Cadets and Cadet Corps and Squadrons in specific key areas, as requested by the Canadian Armed Forces (CAF).
• They serve as the points of contact for their provincial counterparts, the sponsoring bodies of the local cadet corps and squadrons and liaison between these entities and the CAF organizations under the command and control of the VCDS and Command Cadets and Junior Canadian Rangers (CJCR).
• Through its ongoing and planned activities, the Cadet Leagues of Canada aim to:
  • Improve League management and support through developing volunteer management, corporate governance, and standardize policies and procedures;
  • Increase communication  through the national information centre and active recruitment to increase volunteer and cadet membership; and
  • Promote liaison with the Government of Canada (at the national and international levels) through attendance and participation in national forums like the National Cadet Council.

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Statutory Grant & Contribution

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Contribution to NATO Military Budget

Key Facts

Details

• The North Atlantic Treaty Organization (NATO) Contribution Program is comprised of two NATO budgets and one program: the NATO Military Budget, the NATO Security Investment Program, and the NATO Other Activities Budget.
• The NATO Military Budget funds the operating and maintenance costs of the NATO military structure and activities, including deployed operations.
• From Main Estimates 2019-20 to 2020-21, there has been an increase of $30 million in Canada's contributions to the NATO Military Budget. This increase is mainly the result of prior years' decisions, including:
  • Rejoining the Airborne Warning Control System (AWACS) program;
  • Committing to the NATO Command Structure Adaptation; and,
  • Commanding NATO Mission in Iraq.
• The current planning figures see a renewed emphasis on deterrence and collective defence, with a move toward enhanced readiness and responsiveness to global crises.
• To determine the percentage of what each nation will contribute, NATO considers Allies' Gross National Income (GNI), current exchange rates and purchasing power parity. Consequently, Canada's cost share fluctuates with its economic performance.
• Exceptionally in 2020-2021, two other factors will influence the cost shares:
  • Accession of North Macedonia effective April 1, 2020.
  • November 2019 Council approved changes to the common funding budget shares effective 2021 to 2024.

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Military Training and Cooperation Program

Key Facts

Details

• The following activities are key priorities for the Military Training and Cooperation Program (MTCP) in 2020-21:
  • Identifying opportunities to establish and maintain bilateral relations through cooperative training and professional development projects;
  • Seeking opportunities to partner with regionally significant countries to deliver activities in various locations around the world;
  • Using non-lethal military training assistance to enhance Canadian influence with countries of strategic interest;
  • Promoting democratic principles, the rule of law, international stability, and the protection of human rights;
  • Building the capacity of MTCP members to contribute trained and effective personnel to multi-lateral operations, such as peace support operations;
  • Continuing to demonstrate cost-effectiveness and innovation by enhancing bilateral and multi-lateral interoperability among Canada's partners to lessen the operational burden on Canada;
  • Improving partner understanding of Canadian values, civil-military relations, and democratic control over the armed forces, and enhance their staff officer and professional skills and qualifications; and,
  • Continuing to partner with the Defence Team's teaching and learning establishments to increase the ability of member country personnel to communicate in English and French.

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Capital Assistance Program

Key Facts

Details

• Projects funded under the Capital Assistance Program (CAP) meet one or more of the following criteria:
  • Collaboration with local authorities to upgrade, expand, construct, own and operate public infrastructure and services required by National Defence;
  • Reduce departmental non-core infrastructure and prioritize cost-effective development and maintenance of infrastructure; and,
  • Optimize departmental infrastructure to support the evolving force structure and enhanced quality of life in the Canadian Armed Forces (CAF).
• Most CAP projects are multi-year projects with staggered project phasing required to accommodate multiple cash flows within current budget allocations.
• COVID-19 has had minimal effect on the long term scheduling of CAP projects. Although some initial Milestone delays were realized at the onset of COVID-19, these delays have been mitigated through reworking of the multi-year schedules so the target completion date remains the same.

Completed and Current Projects

Project	Funding / Timeline	Description
Halifax – Multi-use Trail	Completed Fiscal Year 2019-2020	Provided contribution funding to the Halifax Regional District to upgrade Barrington Street adjacent to CFB Halifax to create a safe, all-traffic corridor as part of the HRM Active Transportation Greenway system.
Ste-Hyacinthe Monument	Completed Fiscal Year 2019-2020	Provided contribution funding to City of Ste-Hyancinthe to build a memorial next to Laframboise Street Armory to commemorate 100th anniversary of the Royal 22nd Regiment.
NDHQ Carling South Entrance	Completed Fiscal Year 2019-2020	Provided contribution funding to the City of Ottawa to upgrade the south entrance to NDHQ Carling, including a new traffic light.
Nanisivik Road Upgrade	$4.7 million over 2015-2021	Providing contribution funding to Government of Nunavut to upgrade Nanisivik road in order to support access to the Nanisivik Naval Facility.
Valcartier Route 369 re-alignment	$4.98 million over 2019-2021	Providing contribution funding to Province of Quebec to construct turning lane to Garrison and upgrade pedestrian tunnel under the highway.
Vernon Storm Water Drainage	$2.9 million over 2019-2021	Transferring storm water infrastructure and outfall to neighbouring municipality and providing contribution funding to recapitalize storm water infrastructure.
Edmonton – Water Connection	$1.9 million over 2019-2021	Providing contribution funding to Sturgeon County to extend their water infrastructure to enable transfer of water service from National Defence to the County and create a redundant water supply to National Defence.
Inuvik Runway Extension	$150 million over 2019 – 2025.	Providing contribution funding to the Government of the Northwest Territories to extend the existing runway at the Forward Operating Location Inuvik, co-located on the GNWT owned Inuvik (Mike Zubko) NT Airport (CYEV) for shared public / DND use, and in support of Air Sovereignty Alert Operations, Canadian Sovereignty Operations, and Defence of the North, as mandated under the NORAD Treaty
Winnipeg – Air Force Way	$2 million over 2020-2021	Transferring land and providing contribution funding to the City of Winnipeg to design / construct new access to the Winnipeg Airport that does not go through National Defence property, thereby establishing a security perimeter at the Base's main entrance.
Valcartier Water Distribution	$12.6 million over 2021-2023	Providing safe drinking water to Valcartier Garrison via a connection to the neighbouring municipality water distribution network.
Nanisivik Road Maintenance	$17 million over   25 years, 2021-2046	Providing contribution funding to the Government of Nunavut for maintenance and ongoing repair work to Nanisivik Road.
St. Jean Pumping Station	$0.5 million over    2 years. Project currently in development.	Proposed project to transfer the on-base wastewater pumping station to the municipality and provide contribution funding to repair and upgrade the pump.
Gander Water Connection	$100,000 over      1 year. Project currently in development.	Proposed project to transfer water supply service to neighbouring municipality and provide contribution funding to install new meter and connection.
Petawawa Road Work	$5 million over      4 years. Project currently in development.	Proposed project to provide contribution funding to municipality to widen Petawawa Blvd, bridge and round-a-bout at base entrance. Joint project with Province, County and Town.
Esquimalt – Mary Hill Road	$1 million over      2 years. Project currently in development.	Proposed project to transfer access road to neighbouring municipality and provide contribution funding to widen and upgrade the road to municipal standards.
Amherst Armoury	Shared funding,   $4 million over       3 years. Project currently in development.	Proposed project to transfer and provide contribution funding to Town of Amherst to repair and upgrade the heritage property for shared public / National Defence use.
Rocky Point – Potable Water Supply	$6.5 million over          3 years. Project currently in development.	Proposed project to transfer infrastructure and provide contribution funding to install new service connections to National Defence facilities.
Gagetown – Water Treatment Plant & Wastewater Treatment Plant	Dedicated funding, $74.5 million over 5 years. Project currently in development.	Proposed project to transfer Base water and wastewater treatment plants to Town of Oromocto, requiring dedicated funding to proceed to design and Implementation.
Wainright – Water Treatment Plant	Dedicated funding, $50 million over     4 years. Project currently in development.	Proposed project to transfer Base water treatment plant to Town of Wainright, requiring dedicated funding to proceed to design and implementation.
Goose Bay – Water Treatment Plant	Dedicated funding, $50 million over    4 years. Project currently in development.	Proposed project to transfer Base water treatment plant to Town of Goose Bay, requiring dedicated funding to proceed to design and implementation.

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Contribution for Civil Air Search and Rescue Association

Key Facts

Details

• CASARA was established in 1986.
• The CASARA program trains volunteers and enables them to support activities related to aeronautical search and rescue operations coordinated by the Canadian Armed Forces (CAF).
• The program helps maintain an effective and affordable Search and Rescue (SAR) system that considers the value of other resources in addition to the CAF.
• CASARA contributes to the development and maintenance of a well-informed aviation community appreciating the complexity of SAR response.

Funding

• National Defence has a Contribution Agreement in place with CASARA which is renewed every five years.
• The current agreement stands from April 1, 2020 to March 31, 2025 for $3.1 million per year. An inflationary increase is currently being sought for future years.
• Under the program's Terms and Conditions, eligible initiatives and expenditures must relate to:
  • Training CASARA volunteers in the fundamental techniques required to assist in SAR activities; and,
  • Maintaining CASARA (i.e. insurance and administration costs).

COVID-19

• To date, CASARA is facing minor impacts on its operational readiness in Northern Canada due to the COVID-19 pandemic. It still has 97 private aircraft and many more ground teams ready for tasking, as required.
• Further, there have been some issues regarding travel limitations for members conducting intra-provincial/territorial exercises based on provincial/territorial bubbles and updates on COVID-19 hotspots.
• CASARA is currently working to be declared an essential service to resolve this issue. CASARA is close to being recognized in Quebec as an Essential Service, and in other provinces, CASARA is working with Health Ministers to be recognized as an Essential Service.

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Contribution for Sexual Assault Centres in Canada Program

Key Facts

Details

• The Sexual Misconduct Response Centre (SMRC) is outside the military chain of command and provides support to CAF members affected by sexual misconduct, through the provision of information, advice, and accompaniment.
• The Sexual Assault Centre Contribution Program is one component of broader efforts to address the need to support those affected by sexual misconduct, especially for groups falling outside the Operation HONOUR and SMRC mandates, such as National Defence civilian employees and CAF family members.
• The centres will ensure programming responds to diverse population needs (including LGBTQ persons, Indigenous people, visible minorities, persons with disabilities, and both men and women), based on a GBA+ analysis during program development. 

COVID-19

• The six projects with signed agreements were initially impeded in their ability to launch, hire staff, and start delivering services, as most closed their face-to-face support services.
• Some projects have since restructured face-to-face individual and group counselling as well as outreach efforts planned as project activities. Project partners have adapted to virtual services, with additional, limited in-person options for those who don't have a safe space to attend virtual sessions.
• Signature of the four remaining projects are delayed due to the uncertainty about when service provision and outreach efforts can resume. These locations are:
• Edmonton, AB – CFB Edmonton (proposal being revised);
• Montréal, QC – Saint-Jean Garrison (no proposal was received);
• Québec City – CFB Valcartier (to be signed soon);
• Halifax, NS – CFB Halifax (to be signed soon)
• All projects rely on the availability of their CAF counterparts on the local bases, which is also affected by the CAF’s changed posture and operational tempo during this pandemic.
• This will have a significant impact on the ability of the program to fully expend the allocated $2 million, as there are limits on in-year funding to each recipient ($60,000) and the Terms and Conditions expire on March 31, 2024, which leave little flexibility for re-profiling and extending projects. 

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Vancouver Principles

Key Facts

Details

Vancouver Principles

• The Vancouver Principles were launched during the United Nations (UN) Peacekeeping Defence Ministerial, hosted by Canada in Vancouver in November 2017.
• The Vancouver Principles were conceived by the Government of Canada, in partnership with the Roméo Dallaire Child Soldiers Initiative (RDCSI), and developed in consultation with:
  • The UN Department of Peacekeeping Operations;
  • The UN Children's Fund;
  • The Special Representative to the Secretary General for Children and Armed Conflict;
  • Child protection actors and civil society partners; and
  • UN Member States.

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Contribution for Biological and Chemical Defence Review Committee

Key Facts

Details

• In May 1990, the Minister of National Defence directed the establishment of the Biological and Chemical Defence Review Committee (BCDRC). The BCDRC now operates at arm's length to Government.
• The BCDRC builds public and international confidence that the biological and chemical research, development and training activities of National Defence are strictly defensive in nature, comply with Canada's international treaty obligations, and are conducted in a professional manner with minimal risk to the public or the environment.
• Reviews conducted in 2020-21
  • Defence Research and Development Canada Suffield;
  • Canadian Joint Incident Response Unit / Chemical Biological Radiological Nuclear Capability Trenton;
  • Director Joint Chemical, Biological, Radiological and Nuclear Defence;
  • Canadian Forces Health Services Headquarters; and
  • Defence Research and Development Canada Corporate Office.
• As a result of the COVID-19 pandemic physical visits were cancelled. Documentary evidence was gathered from some organizations and virtual visits were conducted in October upon which observations, conclusions and recommendations will be made in the annual report.
• Reviews conducted in 2019-20
  • Observed Exercise FIRE DRAKE at Defence Research and Development Canada Suffield
  • Canadian Forces Base Wainwright
  • Canadian Forces Fire/and Chemical, Biological, Radiological, Nuclear Academy Borden
  • 1st Canadian Field Hospitality and Canadian Medical Equipment Depot at Canadian Forces Base Petawawa
  • Canadian Forces Health Services Group Headquarters
  • National Defence Headquarters
  • Chemical Biological Radiological and Nuclear Defence (CBRN) Advisor Course and CBRN Defence Workshop

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Contribution: NATO Other Activities

Key Facts

Details

• The North Atlantic Treaty Organization Contribution Program is comprised of two NATO budgets and one NATO program: NATO Military Budget, NATO Security Investment Program and NATO Other Activities Budget.
• Funding going toward NATO Other Activities helps pay for projects that do not fall under the NATO military budget or NATO Security Investment Program (NSIP).  They relate to projects with fewer participating member nations.
• The participating countries identify the requirements, the priorities and the funding arrangements, and NATO provides political and financial oversight.
• The share that participating nations will pay is determined at the beginning of the activity and is agreed to by Canada and other participating nations in a Memorandum of Understanding.
• Canada's contribution to NATO Other Activities varies, based on activities it is participating in and funding arrangements established.
• The funding forecasts are subject to change due to the following:
  • Currency fluctuations;
  • Cost share calculation; and
  • Funding pressure.

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