Procurement

Defence Procurement

Key Facts

Details

Streamlining Defence Procurement (Process Improvements)

• National Defence is leveraging the PSPC-led Risk-Based Approach to Contract Approval, for eligible, low-risk project, procurements, which has improved the timeliness of low-risk defence procurements.
  • This initiative enables lower complexity projects to progress through the acquisition process with fewer check points, allowing the overall program to progress towards a timely delivery of projects and capabilities.
• National Defence has implemented a phased roll-out of the new contracting authorities for goods and services, allowing the Department the authority to proceed directly with approximately 80% of contracts.
  • National Defence maintains authorities to $7.5 million for competitive contracts and $375 thousand for non-competitive contracts.
• The Tailored Project Approval Process was implemented in 2017 to provide a flexible and scalable framework for DND to fully leverage its Organizational Project Management Capacity Assessment Level, through improved internal coordination, increased delegation, and strengthened approval processes. Low to Medium Risk Projects that follow the tailored approval process progress on average two to three times quicker.
• In November 2022, National Defence’s Project Approval Directive was amended regarding the Urgent Operational Requirement process, resulting in significant time savings throughout the Project Phases for those capabilities that are most urgently needed.
• National Defence works with government and industry partners to optimize defence procurement, including through new initiatives such as Continuous Capability Sustainment (CCS).
  • CCS seeks to identify ongoing investments in technology upgrades over the in-service phase of a capability to ensure CAF equipment remains technologically relevant, fit for purpose, and aligned with the extant high level mandatory requirements.
• An Infrastructure Renewal initiative will enable a shift from traditional infrastructure management to modern, enterprise-wide practices aimed at financial sustainability and operational resilience throughout asset life cycles.
  • This initiative will prioritize environmental sustainability, supporting the Greening Government Strategy. It will also support Defence’s climate resilience commitments and Indigenous reconciliation initiatives.
• Through its digital transformation initiative, the department will leverage necessary upgrades to its enterprise resource planning function to transform and modernize business processes, improve operational effectiveness and decision support at all levels. Through the increased use of analytics and a heightened trust in the data within the system, the Department will be able to better harness vital data to inform decision making.

Professionalization of Procurement Staff (Staff Capacity)

• A number of steps have been taken to strengthen the capacity of the procurement specialist workforce (project managers, procurement officers and cost estimators).
  • The Project Manager Competency Development (PMCD) program provides project managers with development and learning opportunities through a defined framework for accreditation. Within project implementation organizations, project managers are matched with projects of an appropriate level of complexity and risk.
  • The Competency-Based Project Management Organization seeks to enhance project management as an aspect of organizational culture with the following goals:
    • develop an engaged workforce that demonstrates the desired project management competencies;
    • improve workforce planning to ensure the right people are matched with the right projects;
    • provide an inclusive project management environment, and improve overall delivery of projects. 
  • A Centre for Costing in Defence (CCD) was established to generate life cycle cost estimates for each project as it advances through the project life cycle. The cost estimates are based on the best possible information available at the time, and will evolve as more information in known. The cost estimates are provided to project sponsors and decision makers, who use them to set realistic budgets and make informed decisions.
  • An ‘academy’ is being established which will recruit and develop procurement and materiel management specialist throughout their careers. The initial proof of concept of this professionalization and training system is currently under development to address the gap in training to develop advanced proficiency in procurement. The fundamental program (entry level) will begin summer 2023, along with the program development of additional streams for procurement officers and managers.  

Engagement with Defence Industry

• National Defence is committed to increasing transparency and timeliness of communication with the Canadian defence and security industry, including through mechanism such as:
  • The Defence Industry Advisory Group is an important vehicle used to discuss critical issued that affect the broad segments of the Canadian defence industrial base, such as NORAD modernization and defence supply chain resiliency.
  • Defence officials participate in several major industry events throughout the year, such as CANSEC and the CAF Outlooks, to keep industry informed of defence investment plans and the progress of defence projects, as well as to engage industry on their concerns and challenges.
  • The Defence Capability Blueprint (DCB) provides information about defence procurement and contracting opportunities in an online searchable format. The DCB includes funding ranges and project timelines for 178 major capital equipment, information technology and infrastructure projects, and significant in-service support contracts.
  • The information contained in the DCB is intended to help industry plan and compete for defence procurement opportunities and can be used to make informed research and development at strategic partner decisions based on projected needs of the CAF.  

Canadian Surface Combatant (CSC)

Key Facts

Details

• The CSC will replace and update the capabilities found in both the retired Iroquois-class destroyers and the Halifax-class frigates. This single class of ship will be capable of meeting multiple threats on the open ocean and the coastal environment.
• The new warships will be able to conduct a broad range of tasks, including:
  • Delivering decisive combat power at sea, either independently or as part of a Canadian or international task group;
  • Conducting counter-piracy, counter-terrorism, interdiction and embargo operations for medium intensity operations; and,
  • Delivering humanitarian aid, search and rescue, and law and sovereignty enforcement for regional engagements.

Project status

• In February 2019, the Government selected a design for CSC, and announced that Irving Shipbuilding had contracted Lockheed Martin Canada to provide the design and design team.
• Canada is now working with Irving Shipbuilding, Lockheed Martin Canada, and their subcontractors to evolve the selected ship design and systems integration.

Parliamentary Budget Officer (PBO) estimates

• PBO 2022 report: On October 27, 2022, the PBO published a report on the total life cycle cost for the CSC project, projected to be $306B.
• Total life cycle costs includes costs from the development through to disposal phases of the project. Previous PBO reports focused solely on the cost of the acquisition and development phase.
• The report estimates the development and acquisition phase to be $84.5 billion (excluding taxes).
• The estimated increases in cost compared to previous PBO reports is attributed to the increase in consumer price index and updated project production timelines, mitigated by the removal of provincial taxes which had been included in the previous PBO estimate.
• A costing refresh will be conducted by National Defence before entering the Implementation phase of the project.

Economic benefits:          

• Construction will occur in Halifax, Nova Scotia at Irving Shipbuilding.
  • More than 10,000 jobs will be created over the 25-year build period.
• The CSC project will promote growth of key industrial capabilities in Canada by creating investments in innovation, supplier development, and export opportunities with a focus on cyber security and the marine sector.

Arctic and Offshore Patrol Ships (AOPS)

Key Facts

Details

Arctic and Offshore Patrol Ships

• Built at Irving Shipbuilding Inc., Halifax.
• The AOPS will be able to operate in up to one meter of first-year ice, which is the ice condition experienced annually in the various waterways of the Canadian Arctic between June and October. Ice capability provided by the AOPS will provide a greater and longer Canadian Armed Forces presence in the Canadian North.
• This will allow the Royal Canadian Navy (RCN) to have unescorted access to areas of the Arctic that were previously inaccessible.
• These vessels are able to perform a wide variety of tasks, including:
• Surveillance operations of Canadian waters;
• Support of sovereignty operations;
• Support to international operations;
• Humanitarian assistance, emergency response and disaster relief;
• Search and Rescue.

Timeline:

• Ship 1 delivered on: July 31, 2020
• Ship 2 delivered on: July 15, 2021
• Ship 3 delivered on: September 2, 2022
• Ship 4 anticipated delivery: 2023
• Ship 5 anticipated delivery: 2024
• Ship 6 anticipated delivery: 2025

Indigenous Relations:

• Each AOPS will be affiliated with a region of Inuit Nunangat. These affiliations are a long-standing naval tradition and deeply valued by the sailors and the civilian communities.
  • HMCS Harry DeWolf formally affiliated with the Qikiqtani region of Nunavut: May 2019.
  • HMCS Margaret Brooke formally affiliated with the Nunatsiavut region on September 21, 2022 in Hopedale, Labrador.
  • The remaining ships will be affiliated with the following regions in Inuit Nunangat: Kitikmeot; Kivalliq; Nunavik; Inuvialuit.
• Over the next several years, the six vessels and their crews will build ties with the communities in these regions, founded on mutual respect, during routine operations in Canada’s Northern waters.
• HMCS Margaret Brooke participated in Op NANOOK TUUGAALIK (Op NA-TU) and NUNAKPUT (Op NA-NU) from August 2, 2022 to September 29, 2022.
  • One of HMCS Margaret Brooke’s central tasks on Op NANOOK was the development of meaningful and longstanding relationships between the ship and its affiliated region.
  • HMCS Margaret Brooke conducted a visit to Hopedale, NL during which they conducted an affiliation ceremony with the Nunatsiavut Government. This ceremony was of great importance as it strengthened the relationships between the community and the ship.

Recent issues and repairs to AOPS

• A Technical Investigation into issues with the Main Diesel Generator (MDG) on the AOPS was finalized in early February 2023. 
• Ship’s 1 and 2 (Harry DeWolf and Margaret Brooke) are undergoing repairs to their Main Diesel Generators and Central Fresh Water Cooling System. This work is expected to be completed in May and August of 2023.
• Work on Ship 4 (William Hall) is nearing completion after inspections were carried in December 2022. Issues identified in-service are being rectified proactively during the construction of new ships, including Ship 4, which is scheduled for delivery later this year.
• Repair work on Ship 3 (Max Bernays) is being undertaken and is expected to be completed in June 2023 under the builder warranty.

Nanisivik Naval Facility

• In 2007, the Government announced its plan to convert the deep-water port at Nanisivik to a logistics hub, which will operate as a docking and refueling facility for the Royal Canadian Navy and other government vessels, and serve to enhance the Navy’s presence in the North.
• The construction of the Nanisivik Naval Facility in Nunavut is nearing completion. The primary role of the facility will be to refuel the Royal Canadian Navy’s Arctic and Offshore Patrol Ships during the navigable season, while also continuing to provide the Canadian Coast Guard with refueling support and storage capacity for re-supply missions.
• The Auditor General’s report on Arctic Waters Surveillance noted that the Nanisivik Naval Facility (NNF) would not be equipped with heated fuel tanks, limiting its period of operation to approximately 4 weeks per year.
• As an Arctic facility, the operational year is usually from early August to as late as October, depending on ice-coverage and temperatures. As long as the waters are navigable and the facility is accessible, the site will be open to ships. There are a number of factors which contribute to the length of the facilities operating season.
• For example, the NNF requires fuel to be shipped in at the start of the season and removed at the end of the season. The fuel barge cannot typically access NNF until early August because of ice coverage. Depending on the temperatures in late September, fuel may start to thicken as the fuel tanks and lines are not heated, limiting the Navy’s ability to use the fuel. At that time the fuel must be removed from the tanks.
• National Defence is working on a longer term plan to lengthen the operating season, once success and capabilities have been established with the current model.

Joint Support Ships (JSS)

* Includes lines on Auxiliary Oil Tanker Replenishment (iAOR)

Key Facts

Details

• In June 2020, a $2.4 billion contract (including taxes) was awarded to Seaspan Vancouver Shipyards to progress with full-rate construction.
• The two new JSS are intended to replace the Navy’s Auxiliary Oiler Replenishment vessels (iAOR). They will provide at-sea support to naval task groups, limited sealift capabilities and support to operations ashore.
• The JSS are critical to the future of the RCN, and constitute a vital and strategic national asset. The presence of replenishment ships increases the range and endurance of a naval task group, permitting it to remain at sea for significant periods of time without returning to port for replenishment.
• The JSS will provide Canada with a modern, task tailored, globally deployable, naval support capability that can provide support to the ships and aircraft of a naval task group at sea. They will be crewed by CAF personnel.
• The new JSS will have capabilities such as:
  • Underway support to naval task groups:
    • Re-supply of fuel, ammunition, spare parts and other supplies between ships at sea;
    • Operation and maintenance of helicopters; and
    • Task group medical and dental facilities.
• Sealift: JSS will be capable of transporting and delivering cargo both in support of task group operations and in support to operations ashore.
• Support to operations ashore: To meet a range of possibilities in an uncertain future security environment, the JSS will leverage its on-board facilities to support operations ashore, ranging from combat to humanitarian and disaster relief.
• Support to northern operations: JSS will have an Enhanced Ice capable hull designed to operate in limited Arctic waters and will be able to access the Nanasivik Naval Facility during summer navigation season.

JSS Survival capabilities

• Equipped with systems to detect and protect against chemical, biological, radiological, and nuclear threats.
• Equipped with a full range of features and systems that enhance their survivability and allow them to fully integrate with other warships (e.g., a combat management system, multiple defensive weapons systems, an electronic support measures suite, air search radar and dual shafts for enhanced redundancy).

Parliamentary Budget Officer (PBO) Estimate

• In November 2020, the PBO released a fiscal analysis of the JSS project in response to a request from the House of Commons Government Operations and Estimates Committee (OGGO).
• The PBO estimated that the JSS will cost $ 4.1 billion (with taxes) which was in line with National Defence's cost estimate.

Victoria-Class Modernization Project

Key Facts

Details

• Canadian submarines deliver a world-class, force-multiplying deterrent effect as well as an unmatched sovereign defence and security capability.
• These submarines are capable of covertly monitoring evolving situations at home and abroad.
  • At home, submarines provide critical, sovereign force protection capacity for our sea-based forces when required.
  • Abroad, these submarines can conduct “indications and warnings” and vital joint-targeting information, weapon delivery, or Special Operations Force insertion.
• Canada purchased four Victoria-class submarines from the British Government in 1998.
• The first three Victoria-class submarines were accepted into service between 2000 and 2003. The fourth submarine suffered a fire in transit to Canada, which delayed its acceptance into Royal Canadian Navy service until 2015.
• These submarines are scheduled for end of life in the 2034-2040 timeframe.
• The decision to modernize remains the most effective means of ensuring continued submarine operations for the Royal Canadian Navy into the 2030s.
• The Victoria-class Modernization Project will focus primarily on enhancing three distinct capabilities:
  • Habitability – to improve habitability and deployment conditions onboard Victoria-class submarines;
  • Joint Force Capability – position the Victoria-class submarines to contribute meaningfully to joint operations ashore; and,
  • Survivability – to ensure the survivability of the Victoria-class submarines against an evolving complex threat in an ever-changing battle space.

Gender-Based Analysis Plus (GBA+)

• New equipment will enhance accessibility for crew members, including improvements in both privacy and functionality of:
  • Sleeping areas;
  • Wash places (including gender-neutral washrooms); and
  • Dining/social areas.

Future Fighter Capability Project (FFCP)

Defence of Canada Fighter Infrastructure Program (DCFI)

Key Facts

Details

Project Details

• The Future Fighter Capability Project (FFCP) will successfully acquire and transition into service 88 advanced fighter aircraft along with the associated equipment, weapons, infrastructure, information technology, and sustainment, including training and software support.
• The process, led by Public Service and Procurement Canada, is overseen by an independent fairness monitor.

Project Timelines

• December 2017: The Government of Canada launched an open and transparent competition for the permanent replacement of Canada’s fighter aircraft fleet.
• July 23, 2019: The Government of Canada released the Request for Proposals to eligible suppliers.
• July 31, 2020: Bids received from eligible suppliers.
• December 1, 2021: The Government of Canada announced that following evaluation of the proposals submitted, two bidders remained eligible—SAAB (Sweden) and Lockheed Martin (U.S. Government).

• March 28, 2022: The Government of Canada announced that it would enter into the finalization phase with the top ranked bidder: the U.S. Government and Lockheed Martin, for F-35 fighter jets.
• January 9, 2023: Canada announced that it had finalized an agreement with U.S. Government and Lockheed Martin with Pratt & Whitney for the acquisition of 88 F-35 fighter jets for the Royal Canadian Air Force (RCAF).

Economic Benefits

• Canada has implemented a Value Proposition to motivate generational investments in our aerospace and defence industries over the coming decades, and to drive innovation, exports, and skills development in Canada’s Key Industrial Capabilities including In-Service Support, and Aerospace Systems and Components.
• To date, Canadian companies have secured approximately USD $2.8B in production contracts. 

Fighter Squadron Facilities (FSF)

• In anticipation of the arrival of the aircraft, National Defence is preparing for the construction of some of the new fleet’s facilities in Bagotville, QC, and Cold Lake, AB. This will support long-term maintenance and operation of the aircraft.
• Construction on both facilities is expected to begin in early 2024.

Gender-Based Analysis Plus (GBA+)

• New infrastructure for the future fighter capability will be designed to take into account GBA+ considerations, including safety and the equitable fairness of infrastructure such as washrooms, sleeping quarters, and cultural spaces. The following GBA+ considerations are being incorporated into the design of the FSF:
  • A lactation room has been incorporated into the design of the FSF facilities based on DND Policy requirements that a lactation room be made available to CAF personnel;
  • A multi-faith room has been included in the design of the FSF based on the Chaplain Guideline for Canadian Forces Sacred Space;
  • An area for Indigenous Smudging ceremonies has been included in the design of the FSF;
  • The FSF will be accessible for persons with disabilities and to personnel requiring assistance in alignment with Government of Canada requirements for accessibility excluding maintenance and service areas; and
  • Respectful gender inclusive washrooms, showers, and change rooms have been incorporated into the design of the infrastructure based upon consultations with stakeholders.

Indigenous Considerations

• The requirement for federal departments and agencies to ensure a minimum of 5% of the total value of each department and agencies contracts are awarded to Indigenous businesses does not apply to FFCP procurement. 
• This commitment came into effect after FFCP’s release of its Request for Proposal, during the Proposal evaluation phase. Also, the FFCP procurement is conducted through Government-to-Government Arrangements (MOU and FMS Cases) and is therefore not subject to the set-aside Program for Indigenous Business.
• However, FFCP has endeavored to find means to directly and indirectly support the Government of Canada’s Indigenous commitments.
• Specifically, within the FFCP Infrastructure component, proactive engagements are taking place by the Modified-Design Build (MDB) contractors with identified Indigenous communities with the intent that the Indigenous partnerships formed will contribute to mutually beneficial and sustainable economic benefits to the Indigenous communities in the Bagotville and Cold Lake areas.

Joint Strike Fighter Program (JSF) and Production, Sustainment and Follow-on Development (PSFD) MOU

• The JSF Program is a U.S.-led multinational cooperative effort to build an advanced combat aircraft equipped to fulfill multiple roles.
• The objectives of the JSF program include: developing, producing, and sustaining the most advanced, affordable fighter for participants; maximizing commonality to achieve affordability and coalition interoperability; implementing a global sustainment system to deliver continuous cost and performance improvements; and promoting industrial involvement for participants.
• Canada has been an active participant in the JSF Program since it began in 1997, and in 2006 became a partner in the Production Sustainment and Follow-On Development (PSFD) MOU, which was renewed in 2021.
• To date, Canada has spent USD $712.5M to participate in the program. The most recent payment was for USD $99.5M, made on 1 May, 2022.
  • The payment in the current fiscal year is expected to be USD $89.3M.
• As of December 2022, approximately USD $2.8B in contracts had been awarded to Canadian companies for JSF program-related work since program inception in 1997.
• The annual payments also provided Canada with the option to buy the aircraft at the lowest possible cost and with priority access to the production line. This provides Canada with production and delivery flexibility, even as the number of Foreign Military Sales customers steadily increase.
• 8 partner countries are part of the JSF PSFD MOU: Australia, Canada, Denmark, Italy, Netherlands, Norway, United Kingdom, and the U.S.
• To date, there are 9 foreign military sales customers: Belgium, Finland, Germany, Israel, Japan, South Korea, Poland, Singapore, and Switzerland.

Hornet Extension Project (HEP)

Key Facts

Defence of Canada Fighter Infrastructure (DCFI)

For information on Future Fighter Capability Project

Key Facts

Details

Project Background

• On 9 January 2023, the government of Canada announced that it had finalized an agreement with the United States Government and Lockheed Martin to acquire up to 88 F-35As to replace the Royal Canadian Air Force (RCAF)’s CF-18s.
• Concept work for the Future Fighter Capability Project (FFCP) indicated that the current infrastructure layout and design at Canada’s two main airbases, Cold Lake and Bagotville, is outdated and retains design elements from the 1950s. These facilities are no longer fit-for-purpose and require extensive upgrades to accommodate the future fighter aircraft.
• In response to both new infrastructure requirements for future fighter capability and legacy infrastructure issues, National Defence established the DCFI project as a distinct endeavour from the FFCP acquisition.
• The DCFI project was announced by the Prime Minister, during a visit by the President of the United States, on 24 March 2023.
• This new project builds on earlier infrastructure work that began under FFCP, modernizing or recapitalizing existing infrastructure and adding new critical elements.

Fixed-Wing Search and Rescue (FWSAR)

Key Facts

Details

Timeline

• Ground and flight testing is currently being conducted in Spain, the U.S., and Canada. Five aircraft are in Comox, BC, and 10 remain in Seville, Spain, in preservation state.
• Many certification issues remain to be addressed before the aircraft can become operationalized.
• Initial operational capability was anticipated for summer 2022; however, this timeline has shifted to 2025-2026. This delay is attributed to several factors related to the progress of the aircraft’s certification, technical considerations, and training maturity.
  • March 2019: The first aircraft rolled off the production line.
  • September 17, 2020: The first delivered aircraft arrived at 19 Wing Comox, British Columbia.
  • November 2022: Initial aircrew flight training for the initial operational test and evaluation crews began.
  • December 23, 2022: The fifteenth and latest aircraft was accepted in Spain.
  • May 2023: Initial operational testing and evaluation is scheduled to begin.
• Initial Operational Capability is currently anticipated in the 2025-2026 time period.

The new aircraft will:

• Detect, identify, and classify objects and people, in low light and challenging conditions, using state-of-the-art sensors;
• Communicate better with other search and rescue systems through modern communication, navigation, and data management tools;
• Conduct searches across the full range of Canada’s search and rescue areas of responsibility; and
• Be available when needed as a result of robust in-service support, including maintenance, engineering, and training support.

Economic Benefits

• The Industrial and Technological Benefits Policy applies to the Fixed Wing Search and Rescue Aircraft Replacement (FWSAR) contract. Bidders were required to partner with a Canadian company to deliver a maintenance and support program that ensured Canadian businesses were involved.
• Airbus partnered with Newfoundland-based PAL Aerospace, and developed a joint-venture, Airpro SAR Services, that serves as the in-service support Canadian integrator. This approach ensures the majority of the maintenance and support services work is performed in Canada through a network of suppliers under a program managed by Airpro SAR Services.
• In addition, many of Canada’s leading aerospace and defence companies have been provided opportunities to integrate into the CC295 program for Canada and into Airbus’ broader global supply chain. For example:
  • Pratt & Whitney Canada has provided the engines.
  • L3 Harris (Wescam) the electro optical infrared vision systems.
  • CAE has been subcontracted to deliver the training program and training centre in Comox, British Columbia.
• This work is providing well-paying jobs for middle class Canadians, growing the economy and supporting a strong Canadian aerospace and defence sector by providing export opportunities for Canadian businesses in global supply chains.

Current Search and Rescue Response Capabilities

• To ensure ongoing coverage following the retirement of the CC-115 Buffalo, the Canadian Armed Forces will continue to rely on the existing CC-130H Hercules and CC-130J Hercules aircraft until the CC-295 Kingfisher assumes search-and-rescue operations.
• Trenton Search and Rescue Region (Prairies, Ontario, part of Quebec, Nunavut and the Northwest Territories): FWSAR coverage will continue to be provided by the CC-130H Hercules, until a portion of the responsibility transitions to the CC-130J in May 2023.
• Halifax Search and Rescue Region (North Atlantic to 30W, part of Quebec, part of Baffin Island and Atlantic Province): FWSAR coverage will continue to be provided by the CC-130H Hercules.
• Victoria Search and Rescue Region (Eastern Pacific Ocean, British Columbia and Yukon Territory): 435 Squadron from Winnipeg delivers FWSAR coverage using a detachment at 19 Wing Comox. The CC-130H Hercules detachment will remain at 19 Wing Comox until the Kingfisher is able to assume SAR operations. Victoria will also have support from CH-149 Cormorant helicopters based out of 442 Squadron in Comox, B.C. For missions at sea, Victoria may also call upon the Royal Canadian Air Force’s 407 Squadron CP-140 Auroras and U.S. Coast Guard fixed-wing aircraft to support the Cormorants, as required.

Indigenous Relations

• National Defence is engaged with the K’òmoks First Nation in the construction of the training centre at 19 Wing Comox, British Columbia, on K’òmoks First Nation traditional territory.

CH-146 Griffon Limited Life Extension Project (GLLE)

Key Facts

Details

• The CH-146 Griffon Helicopter is based on the commercially available Bell 412 helicopter, and was developed with unique specifications for the Canadian Armed Forces (CAF).
• Canada’s fleet of CH-146 Griffons entered service between 1995 and 1997.
• The CH-146 can carry up to 15 people (two pilots, a flight engineer, and 12 passengers), has a maximum gross weight of nearly 5,400 kilograms, and can reach speeds up to 260 kilometres per hour.
• CH-146 Griffons provided close fire support and tactical transport during the CAF’s engagement in Afghanistan, reducing exposure of CAF personnel to ground threats such as ambushes, land mines, and improvised explosive devices.
• The Griffon Limited Life-Extension (GLLE) project will extend the life of the fleet until at least the mid-2030s, while the project for the acquisition of the next generation of tactical utility helicopters is developed and implemented.
• The GLLE project will:
  • Replace a number of the aircraft’s avionics systems, including communications radios and cryptographic equipment, cockpit voice and flight recorders, navigation systems, automatic flight control systems, and control display units;
  • Upgrade of the cockpit to a digital configuration;
  • Upgrade engines; and,
  • Integrate sensor systems.

Project Milestones

• Implementation Contract Awarded on April 14, 2022.
• Modification of the first developmental aircraft started in Feb 2021.
• First Flight is estimated to occur in Jan 2024.
• Start of the modification line is estimated at May 2024.

Strategic Tanker Transport Capability Project (STTC)

Key Facts

Details

Project summary:

• The Government of Canada is acquiring a new fleet of aircraft to replace the CC-150 Polaris, which currently has an estimated life expectancy to 2027. The Strategic Tanker Transport Capability (STTC) fleet will conduct multiple tasks, such as in-flight refueling of other aircraft, military personnel and cargo airlift, medical evacuations, and strategic transport of Government of Canada officials.
• This new aircraft will improve the flexibility, responsiveness, interoperability with allied nations, communications security, and self-protection of the Royal Canadian Air Force’s current fleet. It will also support the ability of the Canadian Armed Force (CAF) to project and sustain forces across Canada’s vast land mass, including in the North.
• The project will acquire an in-service support solution for the aircraft, as well as infrastructure to house and maintain the fleet at the main operating base. Additionally, the project will provide a training and simulation capability to prepare and maintain crew readiness.
• STTC project is preparing a request to seek amended project approval and expenditure authority to increase the scope of the STTC Project to include 9 aircraft (previously 5 or 6) as part of the North American Aerospace Defense Command (NORAD) Modernization.

Timelines:

• April 1, 2021: Following evaluation of responses received to an Invitation to Qualify (ITQ), the Government of Canada published the name of the qualified supplier that demonstrated its ability to meet the requirements listed in the ITQ. The company is Airbus Defence and Space SA.
• June 13, 2022: The Government of Canada awarded a competitive contract, valued at $102M USD (taxes excluded) to International AirFinance Corporation, for the procurement and preparation of two used Airbus A330-200.
• October 21, 2022: A second Request for proposal (RFP) for additional used aircraft was released to source list suppliers and initial evaluation of bids received identified three candidate aircraft that will undergo inspection and final evaluation before summer 2023.
• January 13, 2023: A revised RFP for acquisition of any new aircraft and conversion of used aircraft to their future STTC configuration was released to Airbus Defence and Space. A response is anticipated late April 2023.       

Expected implementation timelines:

• Implementation Phase: 2023/2024
• Initial Operational Capability: 2028/2029
• Final Operational Capability: 2030/2031

Recent Operations involving the CAF’s existing Strategic Transport Capability:

• Operation VECTOR: The Canadian Armed Forces used strategic airlift to transport, store, and distribute COVID-19 vaccines throughout Canada between December 2020 and June 2021.
• Operation GLOBE: In May 2021, strategic airlift delivered medical supplies to India.
• Operation AEGIS: In August 2021, strategic airlift aircraft safely evacuated 3,700 individuals from Afghanistan.
• Operation REASSURANCE: Strategic Airlift continues to be used for Canada’s contribution to NATO assurance and deterrence measures in Central and Eastern Europe, including resupply of Task Force Riga.
  • Aid to Ukraine: Strategic Airlift continues to be used to transport all lethal and non-lethal aid to Ukraine.

Armoured Combat Support Vehicles (ACSV)

Key Facts

CP-140 Aurora

Key Facts

Details

• The modernized CP-140 Aurora Long-Range Maritime Patrol Aircraft is a vital Canadian Joint Intelligence, Surveillance and Reconnaissance platform given its cutting-edge anti-submarine warfare and long-range surveillance capabilities. This aircraft is used extensively by the CAF, both in the Arctic and abroad, and is planned to be replaced in the early 2030s with the Canadian Multi-Mission Aircraft (CMMA).

Life Extension and Upgrade Work

• National Defence originally intended to modernize ten aircraft however, in October 2013, an additional $548 million was announced to life-extend and modernize four additional Auroras.
• The 2013 approval also included definition of three new operational capabilities for all fourteen aircraft (referred to as Block IV) including: 1) a state-of-the-art self-protection system; 2) a Link 16 Data-link system (a military tactical data exchange network used by NATO countries); and 3) a High-bandwidth beyond-line-of-sight satellite communications system. Block IV implementation was approved in June 2015, and will ensure the fleet’s operational effectiveness until 2030.
• Timelines for Aurora Incremental Modernization Project (AIMP) Block IV:
  • Initial operational capability (IOC) will be achieved incrementally by capability: IOC for the self-protection system is summer 2023, and IOC for the beyond-line-of-sight satellite communications system and Link 16 is the first quarter of 2024.
  • Project IOC has been delayed several times due to the increased complexity of the design, test and evaluation resource limitations and the requirement to coordinate system certifications with United States Government test agencies. 
  • Full operational capability is planned for late 2024;
  • As of April 2023, seven Block IV aircraft are currently in Greenwood, N.S. In addition to operational employment, these aircraft are being used for concept development, training, and ground and flight testing. Three others are undergoing modifications at IMP Aerospace in Halifax.
• Further updates to the CP-140, to be implemented in the next five years, will include: Multi-Fleet Air Traffic Management Avionics updates; Secure Radio Modernization; and Light-Weight Torpedo Upgrade.
• These upgrades will keep the CP-140 operationally relevant and effective until CMMA is ready to replace it.
• The in-service support costs of the CP-140 are increasing, due in part to many worldwide users transitioning away from P-3 variants, which makes supporting a shrinking global fleet less attractive to industry leaving the CP-140 increasingly isolated.

Canadian Multi-Mission Aircraft (CMMA)

• The aim of the CMMA Project is to deliver an enhanced long-range, long-endurance, multi-mission capability to replace the CP140 fleet. It will be specialized in ASW and ASuW, and optimized for C4ISR.
• The CMMA project is currently in Option Analysis phase:
  • In February 2022, a Request for Information was released to potential suppliers for the Canadian Multi-Mission Aircraft, which was used to help inform the project’s next step for options available for the replacement of the CP140 Aurora.
  • Following engagements with industry and Canada’s closest allies, the government has determined that the P-8A Poseidon is the only currently available aircraft that meets all of the CMMA operational requirements, namely anti-submarine warfare and C4ISR.
  • The P-8A is a proven capability that is operated by several of Canada’s defence partners including all of its Five Eyes allies — the United States, United Kingdom, Australia, New Zealand — as well as Norway and South Korea. Germany has also recently purchased this platform. 
  • To explore this option in more detail, Canada submitted a Letter of Request through the United States government’s Foreign Military Sales program outlining Canada’s requirements and requesting an offer.

CH-149 Cormorant Mid-Life Upgrade (CMLU)

Key Facts

Details

Cormorant Mid-Life Upgrade Project

• In May 2018, the Government of Canada published a notice on buy and sell that announced the project to upgrade and enhance the capabilities of the Royal Canadian Armed Forces’ fleet of CH-149 Cormorant helicopters.
• Following the announcement, the Government of Canada worked with the aircraft’s original manufacturer, Leonardo, to identify how these upgrades could be made. 
• After a year of consultations and negotiations, none of the proposals from Leonardo delivered all of the required capabilities while respecting the project’s overall budget.
• Following an additional analysis of options, negotiations were restarted in December 2021 to attempt to reach an affordable solution.

Cormorant Mid-Life Upgrade and Simulator Solution Contracts

• Two contracts with a total value of up to $1.24 billion were awarded to CAE Inc, and to Leonardo U.K.
• These contracts were awarded for:
  • The upgrade of the CH-149 Cormorant fleet, as well as increasing the size of the fleet from 13 to 16 aircraft (valued at $1.168 billion).
  • The delivery of a domestic training flight simulator that will enable RCAF members to train in Canada, rather than travel to the United Kingdom to train on simulators that may not be consistent with Canadian aircraft (valued at $78 million).

Economic Benefits

• Innovation, Science, and Economic Development Canada (ISED) has indicated that the principal contractors have made significant economic commitments for the Canadian aerospace and Defence industry.
• Canadian companies will conduct a significant portion of the helicopter upgrades (IMP Aerospace), including a made-in-Canada electro-optical/infrared sensor (L3Harris WESCAM).
• Several skills development and training activities have also been identified, including the development of a research chair for hydroelectric innovation and support for the development of a technical manufacturing training program.