Question Period Note: Defence and Marine Procurement – General accomplishments

Suggested responses and background information is provided on defence and marine procurement accomplishments.

Note: Questions on defence procurement delays or the Department of National Defence (DND) order paper questions should be directed to the Minister of National Defence.

• Canada’s Defence Policy: Strong, Secure, Engaged, reaffirms the Government’s commitment toensure that Canada has an agile, multi-purpose military and that members of the Canadian Armed Forces are well equipped. We are delivering on this commitment
  • Over the last 18 months, significant progress has been achieved on major defence and marine procurement projects and activities

Most recently:

• On June 30 and July 3 2020, 2 new Challengers were accepted in Montreal, Quebec
• On July 31, 2020, Canada received proposals from all 3 eligible suppliers for the Future Fighter Capability Project
• On July 31, 2020, the second and third Fixed-Wing Search and Rescue (FWSAR) CC295 aircraft were accepted in Seville, Spain
• On July 31, 2020, the first Arctic and Offshore Patrol Ship, HMCS Harry DeWolf, was delivered and accepted by the Royal Canadian Navy
• As of November 28, 2020, 11 Royal Australian Air Force F/A-18 Hornet aircraft being acquired under the Interim Fighter Capability Project (IFCP) have been delivered to Mirabel, Quebec, to undergo the required Canadian upgrades for integration within the CF-18 fleet
• On September 10, 2020, we awarded a $155-million contract to purchase the Motor Vessel (MV) Villa de Teror as an interim measure to replace the MV Madeleine ferry
• On September 25, 2020 a ministerial event was held in Comox, British Columbia to celebrate the arrival of the first Fixed-Wing Search and Rescue (FWSAR) CC295 and to announce the official name, “Kingfisher”
• On October 9, 2020, the third and final Offshore Fisheries Science Vessel was delivered to the Canadian Coast Guard (CCG)
• On November 6, 2020 we announced a $182-million contract award to General Dynamics Mission Systems–Canada, from Ottawa, Ontario, for in-service support on 6 Halifax-class combat systems (HCCS)
• On November 19, 2020 an Advance Contract Award Notice (ACAN) closed signaling our intention to enter into a contract with Chantier Davie for required vessel life extension work on the CCGS Louis S. St-Laurent, Canada’s largest icebreaker. Contract award is anticipated mid-Summer 2021 with work scheduled to begin Spring 2022
• On November 23, 2020, the second medium icebreaker, the CCGS Jean Goodwill, was delivered to the CCG with the third vessel expected to be in service in 2021

If pressed on delays in defence procurement projects (questions on defence procurement delays should be directed to the Minister of National Defence):

• Over two thirds of projects under Strong, Secure, Engaged are in the implementation phase, near completion, or completed
• For example, National Defence has provided the Canadian Army with Medium Support Vehicle Systems which are currently deployed in Latvia
• Additionally, the Royal Canadian Navy’s Halifax-Class Frigates have been modernized and deployed overseas

Major progress on defence and marine procurements over the last 18 months include:

• Canadian Surface Combatant for the Department of National Defence (DND) :
  • The Canadian Surface Combatant (CSC) project is the largest, most complex procurement undertaken by the Government of Canada, with a total estimated project budget of $56 billion to $60 billion
  • In February 2019, the Government of Canada and Irving Shipbuilding selected Lockheed Martin Canada for the design of 15 new CSC that will be built at Irving Shipbuilding’s Halifax Shipyard. The CSC design will be based on BAE’s Type 26 Global Combat Ship
  • On February 7, 2019, the CSC Design Contract was awarded to Irving Shipbuilding
  • In early November 2019, Irving Shipbuilding and Lockheed Martin Canada were authorized to progress to the Preliminary Design phase of the design process; the second of the 4 design phases
  • In early November 2020, the United States Congress received notification of the proposed sale of 100 SM-2 surface-to-air missiles to Canada, at a cost not to exceed USD 500 million for the CSC
• Acquisition of 360 Light Armoured Vehicles:
  • On August 16, 2019, in support of Canada’s defence policy Strong, Secure, Engaged, the Government of Canada announced its intention to acquire up to 360 armoured combat support vehicles (ACSVs) and that it was in the advanced stages of negotiating a contract, through a non-competitive process
  • On September 5, 2019, Public Services and Procurement Canada (PSPC), on behalf of National Defence, awarded a contractto General Dynamics Land Systems – Canada (GDLS-C) valued at approximately $2 billion for 360 ACSVs, initial spare parts, technical manuals, and training
  • In May 2020, production of the first ACSV began in London, Ontario at the General Dynamics Land-Systems Canada manufacturing facilities. These new vehicles will fulfill a variety of combat support roles such as that of Troop/Cargo Vehicle, ambulance, command post, and mobile repair and recovery
• Future Fighter Capability Project eligible suppliers’ proposal receipt:
  • This procurement is a once in a generation opportunity to support the growth of Canada’s aerospace and defence industries for decades to come
  • The Government has delivered on its promise to launch an open and transparent competition to replace Canada’s fighter fleet and continues to make progress on its purchase of 88 advanced jets
  • On July 23, 2019, PSPC released the formal Request for Proposals to eligible suppliers
  • On July 31, 2020, Canada received proposals from the 3 eligible suppliers and entered into the evaluation phase of the procurement process
  • A contract award is anticipated in 2022, and the first replacement aircraft delivered as early as 2025
• Two Transport Canada ferries to be built at Chantier Davie:
  • On May 22, 2019, an Advance Contract Award Notice (ACAN) was issued, signaling the Government of Canada’s intention to enter into a contract with Chantier Davie for the construction of 2 new ferries for Transport Canada. Other interested suppliers had 15 calendar days to submit a Statement of Capabilities to show they met the requirements laid out in the ACAN. None were submitted
  • On June 19, 2019, the Government of Canada announced that it was entering into contract negotiations with Chantier Davie of Lévis, Quebec, for the construction of the vessels
  • On November 14, 2019, Lengkeek Vessel Engineering Inc. & Knud E. Hansen A/S Naval Architects (Joint Venture) were awarded a $3.1 million contract to provide expert advice and technical oversight to Transport Canada throughout the project leading to and including the construction
  • In November 2019, the Government of Canada awarded an initial Ancillary Contract to Chantier Davie to establish a Project Management Office and initiate various studies to support design and construction of the new vessels. As of September 14, 2020 the contract is valued at $3.334 million (tax included)
• Interim ferry:
  • On July 2, 2020, the Government of Canada issued an ACAN, signaling its intention to purchase the Motor Vessel (MV) Villa de Teror as an interim measure to replace the MV Madeleine until the new vessel being built at Davie is ready for service. Recent inspections on the MV Madeleine showed substantial investments and repairs would be required to keep the vessel in service. The interim solution is required to ensure continued reliable, predictable, and safe ferry service to the residents of Îles-de-la-Madeleine
  • On July 20, 2020, the ACAN closed, and a contract was signed for the acquisition of the vessel on September 10, 2020
  • The vessel is expected to be delivered between January and March 2021 and enter into service in Summer 2021
• Selection of a third Canadian Shipyard under the National Shipbuilding Strategy to build 6 Program Icebreakers for the CCG:
  • To respond to evolving federal shipbuilding requirements, PSPC is carrying out a process to select a third strategic partner shipyard under the National Shipbuilding Strategy (NSS). The selected shipyard will build 6 new program icebreakers for the CCG
  • In December 2019, Chantier Davie pre-qualified in the first stage of the process to become the third strategic partner under the NSS. Chantier Davie has moved on to the Request for Proposal (RFP) and evaluation stage. This will include a third-party assessment of the shipyard’s infrastructure, submission of a formal proposal, and a due diligence process to ensure the shipyard is financially capable of performing the work and making any necessary upgrades to its infrastructure
  • On July 29, 2020, the final RFP was sent to Chantier Davie
  • An umbrella agreement is expected to be in place with a third shipyard in mid-2021
• 16 Multi-Purpose Vessels for the CCG to be built at Vancouver Shipyards:
  • On May 22, 2019, the Government of Canada announced a $15.7 billion investment to renew the CCG fleet, in order to ensure capacity to deliver important services for Canadians. This includes building up to 16 Multi-Purpose Vessels (MPVs)
  • Construction of the MPVs is expected to start in the mid-2020s, following the completion of the second Joint Support Ship (JSS)
  • A run of up to 16 vessels will provide an opportunity for Vancouver Shipyards to generate efficiencies and economies of scale, as well as ensure greater workforce stability and minimize gaps in production
  • In August 2020, the MPV ancillary contract was awarded, which will progress early design work on the vessels
• 7th and 8th Arctic and Offshore Patrol Ships for the CCG:
  • On May 22, 2019, the Government of Canada announced a $15.7 billion investment to renew the CCG fleet, in order to ensure capacity to deliver important services for Canadians. This includes building two Arctic and Offshore Patrol Ships (AOPS) for the CCG
  • The 2 new AOPS (7&8), to be built by Irving Shipbuilding, will be adapted for the CCG to perform a range of critical missions, including Northwest Atlantic Fisheries Organization patrols
  • On November 1, 2019, the first contract relating to these ships was awarded. This contract is to have Irving Shipbuilding make the changes required to modify the AOPS design to satisfy CCG’s unique requirements
• Acquisition and conversion of 3 medium icebreakers for the CCG:
  • In December 2018, the CCG accepted into service the first of the 3 medium icebreakers being refit by Chantier Davie, the CCGS Captain Molly Kool
  • On November 23, 2020, the second medium icebreaker, the CCGS Jean Goodwill, was delivered to the CCG with the third vessel, the CCGS Vincent Massey, expected to be in service in 2021
• Invitation to Qualify for the Future Aircrew Training Program:
  • Through an open and transparent competition, the Government of Canada is taking the necessary steps to renew its existing aircrew training services
  • The Future Aircrew Training (FAcT) program has been put in place to develop and implement a new and cohesive training program that replaces the Canadian Armed Forces’ current Pilot, Air Combat Systems Officer (ACSO), and Airborne Electronic Sensor Operator (AES Op) training systems
  • In December 2018, Canada established a list of Qualified Suppliers that demonstrated their ability to meet Canada’s needs, as defined in the Invitation to Qualify
  • In fall 2020, a Draft Request for Proposal (RFP) is expected to be released
  • In spring 2021, the formal RFP is expected to be released
  • Industry engagement will continue until release of the final RFP
• Invitation to Qualify for the Victoria-class In-Service Support Contract II:
  • Through an open and transparent competition, the Government of Canada is renewing the in-service support contract for the Royal Canadian Navy’s Victoria Class submarine fleet
  • Canada has a fleet of 4 submarines that were purchased, used, from the UK in the early 2000’s
  • An Invitation to Qualify closed January 8, 2020 and we are evaluating the responses received. Successful respondents of the Invitation to Qualify will be part of the industry consultation group that will lead to the finalization of the RFP. First industry engagements with the prequalified bidders took place in September 2020 and will continue in November 2020
  • Babcock Canada Inc. is the current prime contractor and the current contract will remain in place until June 2023, if all option years are exercised. Victoria Shipyards Limited of Victoria, B.C. is one of the principal subcontractors to Babcock
• Invitation to Qualify for Remotely Piloted Aircraft Systems:**
  • Through an open and transparent competition, the Government of Canada is taking the necessary steps to procure an armed Medium Altitude Long Endurance Remotely Piloted Aircraft System (RPAS)
  • This new capability will provide intelligence, surveillance, target acquisition, reconnaissance and precision strike capabilities to the Canadian Armed Forces in support of operations domestically and abroad
  • In May 2019, Canada established a list of Qualified Suppliers that demonstrated their ability to meet Canada’s needs, as defined in the Invitation to Qualify
  • Industry engagement will continue until Spring 2021 to refine the requirements
  • In Fall 2020, a draft RFP is expected
  • In Spring 2021, the formal RFP is expected
• Invitation to Qualify for Logistics Vehicle Modernization Project:
  • Through an open and transparent competition, the Government of Canada is taking the necessary steps to revitalize and replace Canada’s light and heavy logistics vehicle capabilities
  • In July 2019, Canada established a list of Qualified Suppliers that demonstrated their ability to meet Canada’s needs, as defined in the Invitation to Qualify
  • Currently, the draft RFP is being released incrementally to Qualified Suppliers under the Review and Refine Requirements (RRR) phase and industry engagement activities will continue up to the end of Winter 2021
  • In Summer 2021, the formal RFP is expected
• Delivery of Offshore Fisheries Science Vessels:
  • The first 2 Offshore Fisheries Science Vessels, the CCGS Sir John Franklin and CCGS Capt. Jacques Cartier, were delivered to CCG in 2019. The final vessel, the CCGS John Cabot, was delivered in October 2020 marking the completion of the first class of large ships built under the National Shipbuilding Strategy
• Halifax-class Frigates work period contracts awarded:
  • The Royal Canadian Navy currently operates 12 Halifax-class ships:
    • 7 ships are assigned to Maritime Forces Atlantic
    • 5 are assigned to Maritime Forces Pacific. The Navy intends to continue operating these ships for approximately another 2 decades, until the Canadian Surface Combatants are delivered
  • In 2016, extensive industry engagements, along with market survey processes, identified 3 Canadian shipyards capable of performing the level of maintenance services needed to support the frigates through to the end of life
  • In November 2018, Advance Contract Award Notices were issued to Irving Shipbuilding, Chantier Davie, and Seaspan’s Victoria Shipyards
  • In July 2019, 2 contracts totaling $1 billion were awarded to Victoria Shipyards and Chantier Davie. In August 2019, a $500-million contract was awarded to Irving Shipbuilding. The contracts are expected to rise in value to over $7.5 billion as additional work packages are added
  • In August 2020, maintenance work on the HMCS St. John’s commenced at Chantier Davie
• Joint Support Ship:
  • The JSS project will deliver 2 support vessels to the Royal Canadian Navy to supply other ships with fuel, ammunition, spare parts, food and water. These ships, which are being built by Seaspan’s Vancouver Shipyards, will also provide a home base for maintenance and operation of helicopters, a limited sealift capability, and support to forces deployed ashore
  • The JSS build contract was awarded in June 2020. This contract will allow the construction, testing, commissioning and delivery of the 2 JSS
  • Construction of the first JSS is underway. Delivery of the first ship is expected in 2023. The second ship will begin construction after the Offshore Oceanographic Science Vessel, and delivery is expected in 2025
• Interim Fighter Capability Project
  • Note: All questions related to capability gap should be answered by the Minister of National Defence
  • Canada is acquiring up to 25 F/A-18 Hornet aircraft (18 flyable and 7 non-flyable) from the Royal Australian Air Force (RAAF)
  • 11 aircraft have been delivered to Canada
  • The first two were flown to 4 Wing Cold Lake, Alberta, by RAAF aircrew
  • Aircraft 3 to 7 were delivered to the CF18 3rd line depot at Mirabel, Quebec via RCAF CC177 Globemaster transport aircraft
  • On August 25, 2020, a transportation contract was awarded to Momentum Decisive Solutions Canada Inc. to transport aircraft numbers 8 through 18 to Canada via commercial carrier
  • Aircraft 8 to 11 were delivered to the CF18 3rd line depot at Mirabel, Quebec via commercial carrier
  • In February 2021, aircraft number 12 and 13 will be delivered to Mirabel via commercial carrier
  • Of the 11 Australian F18 aircraft delivered to Canada, the Royal Canadian Air Force has integrated 3 into regular service. National Defence will continue to integrate the Australian F-18 Hornet aircraft into service at regular intervals, until the final aircraft is integrated by December 2022
  • By December 31, 2021, all IFCP aircraft are expected to be delivered, with all flyable aircraft delivered by Summer 2021
  • National Defence will upgrade 36 Royal Canadian Air Force fighter aircraft with APG-79(v)4 radar. Assessments are currently in progress to determine which aircraft are best placed to receive these upgrades

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