Procurement

Equipping the Canadian Armed Forces

Key Facts

Details

Armoured Combat Support Vehicles

• The Armoured Combat Support Vehicle (ACSV) will provide the Canadian Armed Forces with a new fleet of armoured and mobile vehicles to perform services such as ambulance, mobile repair and vehicle recovery services, as well as engineer support and command and control. These vehicles will be used for both domestic and international operations. 
• 360 ACSVs will be procured through a $2 billion (taxes included) contract with General Dynamics Land Systems - Canada (GDLS-C).
• The new fleet of 360 ACSVs will all be based on the LAV 6.0 and will replace the current Light Armoured Vehicle (LAV) II Bison and M113 Tracked LAV fleets.
• Having our 360 support vehicles based on the same platform as the main combat vehicle fleet offers a number of key advantages from an operational and a sustainment perspective; for example, it will reduce training and sustainment costs, and result in an increased availability of spare parts to enable vehicles to be repaired quickly during critical operations.
• With the Canadian Government donation of 39 ACSVs to Ukraine earlier this year, changes were introduced to the ACSV production schedule. Instead of receiving the Troop Cargo Vehicle (TCV) variant first, the Canadian Army took delivery of the first ambulance variants on October 19, 2023.
• Plans by the Tracked Light Armoured Vehicles (TLAV) Equipment Management Team have also been developed to support the TLAV fleet slightly longer than previously planned, to account for the adjustments to the ACSV delivery schedule.
• The ACSV fleet will be comprised of eight variants:
  • Troop/Cargo Vehicles (TCVs);
  • Ambulance (AMB) vehicles;
  • Command Post (CP) vehicles;
  • Electronic Warfare (EW) vehicles; 
  • Engineer (ENGR) vehicles;
  • Fitter/Cargo Vehicles (FCV);
  • Mobile Repair Team (MRT) vehicles;
  • Maintenance and Recovery Vehicles (MRVs).

Urgent Operational Requirement (UOR)

• Urgent Operational Requirements (UOR) are a procurement mechanism that the Department of National Defence (DND) can use to procure essential equipment on a sped-up timeline.
• The UOR mechanism meets a specific and urgent operational requirement, but it is not a new tool, nor is it a new initiative. This mechanism has historically been utilized to accelerate procurements associated with urgent Canadian Amed Forces (CAF) operational requirements, such as in Afghanistan, and we continue to utilize this process, when and where appropriate.
• In response to the ongoing conflict in Ukraine, the Canadian Joint Operations Command has identified three UOR: a Portable Anti-X Missile (PAXM), portable soldier Air Defence (AD), and Counter Uncrewed Aircraft Systems (CUAS) to support members deployed in Eastern Europe as part of Operation REASSURANCE.

Arctic and Offshore Patrol Ships

• The AOPS will significantly enhance the Canadian Armed Forces (CAF) capabilities and presence in the Arctic, better enabling the Royal Canadian Navy (RCN) to assert and uphold Canada’s Arctic sovereignty. The AOPS will also augment Canada’s presence on the Atlantic and Pacific oceans and will conduct a wide variety of operations abroad.
• 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 CAF presence in the Canadian North.  

Future Fighter Capability Project

• 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.
  • On January 9, 2023, Canada announced that it had finalized an agreement with the 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). Delivery is expected to begin in 2026.
• 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.

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Defence Procurement Reform

Details

• National Defence works closely with the CAF, partners in other federal government departments such as Public Services and Procurement Canada (PSPC) and Innovation, Science and Economic Development (ISED), as well as defence industry experts, to procure the equipment and services our Forces need.
• We follow a rigorous project planning and procurement process that ensures the equipment procured meets all of the CAF requirements, while ensuring financial value for Canadians as well as economic growth for industry.
• DND’s project management approach is governed by policy set by the Treasury Board of Canada, which states that:
  • projects achieve value for money;
  • sound stewardship of project funds is demonstrated;
  • accountability for project outcomes is transparent; and,
  • outcomes are achieved within time and cost constraints.

Streamlining Defence Procurement

• National Defence has taken a number of concrete steps to ensure the members of the CAF get the equipment they need, when they need it, including:
  • Updating defence procurement program management processes by eliminating redundancies and improving collaboration with industry.
  • Accelerating procurement by eliminating certain requirements for low-risk, low-complexity projects.
  • Working closely with colleagues across government to implement more agile and innovative procurement approaches.
  • Investing in procurement professionals to make sure we have the expertise and capacity we need to advance projects.
  • Working with industry and other government partners on how we can move forward on sustaining operationally capable solutions for platforms. Specifically, providing National Defence with the flexibility required to rapidly integrate the latest technology developed by industry, to ensure platforms remain relevant and capable throughout their lifetime.
  • Shifting from more traditional transactional relationships with industry on in-service support, to a more partnership-focused relationship. This will ensure we work together on setting out capability roadmaps for systems that will need to be continuously updated and integrated on various platforms throughout their lifecycles. This revised process will make sure industry is part of the solution and able to help predict and rectify any obsolescence as the platform progresses, thereby reducing our need for timely modernization or upgrade projects.
• PSPC-led Risk-Based Approach to Contract Approval 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.
• 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.
• 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

• 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 within the Assistant Deputy Minister (Finance) 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.
  • A Purchasing and Supply Group (PG) ‘academy’ has been established which will recruit and develop procurement and materiel management specialist throughout their careers. This academy will encompass several developmental branches.
    • The Fundamental Program (one-year program, PG-01 to PG-02) officially onboarded 11 trainees on September 5th with a second cohort of 20 trainees planned for March 2024.
    • The PG Officer Development Program (PG-02 to PG-04) will recommence in FY 2024-25 after a short program pause which allowed us to update and modernize the program framework.
    • The Supervisor (PG-04 to PG-05) and Management (PG-05 to PG-06) programs are currently early in the planning/development phase.
    • A video library channel is also under development and will support all PG Academy programs. The video library channel will enable wider and more accessible knowledge transfer, professional development, competency development and training.  This first set of videos are expected to release before the end of this fiscal year.

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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.
• As the future warship of the Royal Canadian Navy (RCN), the CSC must be capable of conducting a full range of military operations in high-threat environments and will upgrade and replace the capabilities of two classes of RCN ships in a single, combat-capable vessel. 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 of Canada selected the CSC design, based on the BAE Systems’ Type 26 Global Combat Ship, to meet the unique operational requirements of the RCN. Irving Shipbuilding 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. In late 2022 the project progressed from the preliminary design phase into functional design.

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.

Infrastructure Investment

• Irving Shipbuilding (ISI) is expanding and modifying its site and facilities at the Halifax Shipyard and supporting facilities in Dartmouth, including at Woodside Industries and Marine Fabricators.
• Canada has agreed to provide ISI, with funding, $463M taxes included, for them to make infrastructure improvements at their shipyard to ensure that they have the capability to construct the current CSC design and to meet the delivery schedule to support the RCN.
• The Halifax Shipyard site expansion will include dredging, marine structures, and rock infill behind the structure creating approximately 13 acres of additional yard space. Within the shipyard, the newly expanded area is not expected to extend farther into the channel than the limits of the floating dry dock that was previously located at Halifax Shipyard. The upgrades are expected to enhance shipyard efficiency, directly contributing to the CSC build and delivery schedule. 
• Infrastructure enhancements began in 2023 to support the start of CSC construction activities, which are expected to begin in 2024 and conclude by 2050.

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Joint Support Ships (JSS)

Includes lines on Interim 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 (AOR). 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).

MV Asterix

• The MV Asterix remains an interim solution to mitigate the capability gap while the Joint Support Ships are being built.
• The period of service for the Asterix was recently extended to January 2025, however, the contract option periods provide a potential interim capability up to January 2028.

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.

Arctic and Offshore Patrol Ships (AOPS)

Key Facts

Details

Arctic and Offshore Patrol Ships

• The AOPS will significantly enhance the Canadian Armed Forces (CAF) capabilities and presence in the Arctic, better enabling the Royal Canadian Navy (RCN) to assert and uphold Canada’s Arctic sovereignty. The AOPS will also augment Canada’s presence on the Atlantic and Pacific oceans and will conduct a wide variety of operations abroad.
• 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.
• The ships are being built under the National Shipbuilding Strategy (NSS) by Irving Shipbuilding Inc. in Halifax, Nova Scotia.
• These vessels 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.

Delivery Timeline:

• Ship 1, HMCS Harry DeWolf, delivered on: July 31, 2020
• Ship 2, HMCS Margaret Brooke, delivered on: July 15, 2021
• Ship 3, HMCS Max Bernays, delivered on: September 2, 2022
• Ship 4, HMCS William Hall was delivered on: August 31, 2023
• Ship 5, the future HMCS Frédérick Rolette, anticipated delivery: December 2024
• Ship 6, the future HMCS Robert Hampton Gray, anticipated delivery: December 2025

Deficiencies and Repairs with the AOPS

• AOPS is the first new warship built in Canada in the last 20 years. Shipbuilding in general is difficult and when building the first ship in a class, it is expected that there will be issues identified throughout the building process—including after delivery—that require correction.
• Prior to delivery of HMCS Harry DeWolf, HMCS Margaret Brooke and HMCS Max Bernays, construction deficiencies were identified and documented as part of a rigorous quality assurance program. Both the Government of Canada and the shipbuilder agreed that certain deficiencies could be corrected after delivery.
• The Royal Canadian Navy works closely with the shipbuilder to resolve these deficiencies while progressing the ships’ trials and operational schedule. In the meantime, appropriate mitigation measures have been put in place where necessary.
• A Technical Investigation into issues with the Main Diesel Generator (MDG) on the AOPS was finalized in early February 2023. The changes recommended by this investigation are being implemented in ships 1 to 4 and will be incorporated within follow-on ships as appropriate.
• Ship’s 1 and 2 (HMCS Harry DeWolf and HMCS Margaret Brooke) have completed repairs to their Main Diesel Generators and Central Fresh Water Cooling System. This work was completed in Harry DeWolf in July was completed in Margaret Brooke at the end of August of 2023.
• Repair work on Ship 3, (HMCS Max Bernays), was completed under the builder warranty.
• Work on Ship 4 (HMCS William Hall) is now complete and  was recently delivered. Issues identified in-service are being rectified proactively during the construction of new ships, including Ship 4.

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.

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.

Deployments:

• HMCS Harry DeWolfe was deployed as part of Operation NANOOK-TUUGALIK, which took place from August 8 to September 29 in the Davis Strait.
• HMCS Harry DeWolf operated with the US Coast Guard Cutter FORWARD en route to the Davis Strait. Harry DeWolf proceeded to Nuuk for a visit 25-26 August and worked with United States Navy maritime assets conducting training in Davis Strait.
• From 29 August to 11 September Harry DeWolf supported JTFN OP NANOOK NUNAKPUT, conducting presence and surveillance in eastern portion of the North West passage. Some activities will include a visit to Mary River Mine and a community relations stop in Pangnirtung prior to returning to Halifax on 1 Oct.

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Victoria-Class Submarine Modernization Project (VISSC)

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 competitive process was led by Public Service and Procurement Canada and was overseen by an independent fairness monitor.
• In December 2022, the Government of Canada approved the acquisition of the F-35A, as the replacement to the CF-18 fighter aircraft fleet.

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

• Lockheed Martin and Pratt and Whitney have committed to providing economic benefits equal to the contract value over the life of the Joint Strike Fighter Program, to be completed within 25 years.
• This may include contracts to Canadian companies for equipment, parts, and services for the global F-35 aircraft and engine production.

Gender-Based Analysis Plus (GBA+)

• New infrastructure for the F-35A 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 Fighter Squadron Facilities (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 and all department and agency 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. Furthermore, the FFCP procurement is conducted through Government-to-Government Arrangements (MOU and Foreign Military Sales 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 PSFD MOU, which was renewed in 2021. The current PSFD MOU was renewed to December 2051.
• 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.
• Note: The 2023 payment of USD $97.343M is currently being processed. Once processed, Canada will have spent USD $809.84M to participate in the program. Canada’s participation in the Program 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 of the F-35: Belgium, Finland, Germany, Israel, Japan, South Korea, Poland, Singapore, and Switzerland.  

Parliamentary Budget Officer Report

• On 2 November, the PBO published its report regarding an independent analysis of costs associated with the F-35 procurement. This encompassed costs analyses of the development, acquisition, operations, and sustainment, as well as disposal costs of the project.
• As part of this study, the PBO conducted an independent life-cycle cost analysis of the announced F-35 procurement; its analysis of costs related to the acquisition phase ($19.8 billion) as well as total life-cycle costs ($73.9 billion) are largely aligned with those previously published by National Defence.
• Canada’s historical contributions to the Joint Strike Fighter Program MOU (2006) was not included as part of PBO’s costing.
• In its background section, the PBO report mentions the initial procurement in 2010; noting that, at the time, the Government of Canada announced that it would buy 65 F-35 jets at a cost of $18 billion. This costing was subsequently analysed in follow-on reports published by the PBO (2011) and the Auditor General (2012).

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Defence of Canada Fighter Infrastructure

Key Facts

Details

• 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 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.

Canadian Multi-Mission Aircraft (CMMA)

Key Facts

Details

Canadian Multi-Mission Aircraft (CMMA)

• The CMMA Project will deliver an enhanced long-range, long-endurance, multi-mission capability to replace the CP-140 fleet. It will be specialized in Anti-Submarine and Anti-Surface Warfare and optimized for C4ISR (command, control, communication, computers, intelligence, surveillance and reconnaissance).
• On 30 November 2023, Canada announced that it had finalized a government-to-government agreement with the United States (US) government and Boeing for the acquisition of up to 16 P-8A Poseidon aircraft for the Royal Canadian Air Force (RCAF). 14 multi-mission aircraft will be procured, with options for up to an additional two, subject to affordability.
• On whether the U.S. Government’s P-8A Poseidon aircraft has been selected; CMMA project is currently evaluating options:
  • In April 2021, DND launched a third-party CMMA Candidate Aircraft Analysis which identified potential CMMA candidates, their suitability against required CMMA Missions and ranked these potential solutions against High-Level Mandatory Requirements (HLMRs).
  • In February 2022, on behalf of DND, PSPC released a Request for Information (RFI) to validate market analysis conducted by PSPC as part of its role as the Government of Canada procurement authority.
  • The RFI sought input from Industry on High Level Mandatory Requirements (HLMR) and capability requirements pertaining to the replacement of the CP-140 Aurora fleet, including Industry’s interest, capability and experience, which was used to help inform the project’s next step for options available for the replacement of the CP-140 Aurora.
  • Following engagements with industry, Canada’s closest Allies and through independent third-party studies, 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.
  • To explore this option in more detail, in March 2023 Canada submitted a Letter of Request through the United States government’s Foreign Military Sales program outlining Canada’s requirements and requesting an offer.
  • A Letter of Offer and Acceptance was received from the United States government in July 2023 and is currently being reviewed by the project team.
  • PSPC and DND have conducted a review of the LOA and concluded that the capability offered meets all CMMA High Level Mandatory Requirements.
  • ISED is reviewing the Boeing Economic Benefits proposal to ensure the proposal leverages economic benefits for Canada.
  • LOA validity period ends 30 Nov 2023. There is a risk that if the LOA expires, that it would have to be repriced.

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Aurora Modernization Project

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 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.
• 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 August 2023, eight 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, noting that Block IV modifications have yet to be cleared for operational use.
  • 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.
• Concurrent to the Aurora Incremental Modernization Project (AIMP) which focussed on integrating new mission systems and sensors onto the aircraft, the CP-140 also benefitted from the Aurora Structural Life Extension Project (ASLEP) which involved replacing the outer wings and horizontal stabilizers on the aircraft. The ASLEP was completed in April 2020 at a cost of $418 million.  
• These upgrades will keep the CP-140 operationally relevant and effective until 2030.

Fixed-Wing Search and Rescue

Key Facts

Details

The CC-295 Kingfisher aircraft will be able to:

• 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.

Timeline

• Ground and flight testing is currently being conducted in Spain, the U.S., and Canada. Five aircraft are located in Comox, BC, and 10 remain in Seville, Spain, in preservation state.
• Initial aircrew and maintenance training was completed on May 11, 2023.
• 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.

Economic Benefits

• The Industrial and Technological Benefits Policy applies to the 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 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 at 17 Wing Winnipeg and CC-130J Hercules at 8 Wing Trenton.
• 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 based at 14 Greenwood, NS.
• Victoria Search and Rescue Region (SRR) (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 SRR will also have support from CH-149 Cormorant helicopters based out of 442 Squadron in Comox, B.C. For missions at sea, Victoria SRR 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.

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Remotely Piloted Aircraft Systems (RPAS)

Key Facts

Details

Project Details

• This project will acquire a long range, high endurance, armed Remotely Piloted Aircraft System along with associated equipment, weapons, infrastructure, and in-service sustainment capability that will support up to three concurrent lines of tasking, domestic (including contributing to Canada’s presence in the Arctic) or international.
  • Employment of precision strike capability will adhere to all applicable law, including international laws such as the Law of Armed Conflict.
• These systems are not autonomous. They are piloted by qualified pilots who control and monitor the aircraft from ground control stations.
• The Systems will be commanded and controlled in a manner similar to other capabilities, such as fighter aircraft. Qualified and authorized Canadian Armed Forces members will always be responsible for employing these systems.

Project Timelines:

• November 2020: Draft Request for Proposal issued.
• February 2022: Final Request for Proposal issued.
• August 2022: Bid evaluation started.
• January 30 – February 3, 2023: Cold weather testing validation of proposed solutions was completed.
• Contract award: by 2024
• First delivery: early 2028
• Initial operational capability: fiscal year 2027/28 to 2029/30
• Full operational capability: fiscal year 2030/31 to 2032/33
• Project Close: fiscal year 2033/34 to 2034/35

Operating Bases:

• Aircraft will be stationed at 14 Wing Greenwood, Nova Scotia, and 19 Wing Comox, British Columbia.
• They will also be operated out of Forward Operating Locations, including in Yellowknife, Northwest Territories.
• The ground control centre will be located in the Ottawa.

Indigenous Relations:

• The contract will require that the contractor submit an Indigenous Participation Plan and commit up to 5% of the contract value to support Indigenous participation. Consultation with Indigenous groups will occur to support development of the Indigenous Participation Plans, and for infrastructure design and construction.

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