Question Period Note: Fixed Wing Search and Rescue Project

About

Reference number:
PSPC-2022-QP-00046
Date received:
Sep 26, 2022
Organization:
Public Services and Procurement Canada
Name of Minister:
Jaczek, Helena (Hon.)
Title of Minister:
Minister of Public Services and Procurement

Issue/Question:

On May 4, 2022, the Department of National Defence announced delays in the Fixed-Wing Search and Rescue (SAR) project. The CC295 Kingfisher fleet of aircraft, that will eventually replace existing SAR aircraft, still require significant work, tests, and trials before entering into Royal Canadian Air Force (RCAF) service. As a result, Initial Operational Capability (IOC) has been delayed from 2022 to 2025-2026.

The new fleet of modern aircraft is equipped with technologically advanced systems and will be able to perform in Canada’s harsh search and rescue environment; one of the most challenging and diverse landscapes in the world.

Note: All questions related to Initial and Full Operational Capabilities, capability gap, security, interoperability requirements and costs should be answered by the Minister of National Defence

Suggested Response:

  • Canada is building a more agile, better-equipped military, while ensuring the best value for Canadians
    • As of August 23, 2022, 13 of 16 aircraft and all training devices have been accepted
    • While operationalization of the aircraft will take more time than originally anticipated, Canada expects to remain within the project’s approved budget. The contract is performance-based, therefore payments are made only when equipment and services are delivered, and accepted by Canada
    • The firm, fixed-price contract protects Canada from cost overruns for work defined in the contract and incentivizes the contractor to minimize further delays

If pressed on the delay:

  • Due to the overall project complexity and the COVID-19 pandemic which created challenges and loss of productivity, the operationalization of the new fleet has experienced some delays. Canada continues to work closely with the manufacturer to reduce the impact of the delays

Background:

On December 1, 2016, the Government awarded a contract to Airbus Defence and Space to procure new fixed-wing search and rescue aircraft and systems. This contract was awarded following a fair, open and transparent and competitive procurement process, to replace Canada’s Buffalo and Hercules aircraft.

Extensive industry consultations were conducted throughout this capability-based procurement. A value proposition for both the aircraft procurement and the maintenance contracts was used to foster business opportunities for companies in Canada, through the application of Canada’s Industrial and Technological Benefits policy.

On December 18, 2019, the Government accepted the first aircraft in Spain. On September 17, 2020, the first operational aircraft arrived in Comox, British Columbia. Questions pertaining to the delays in Initial and Final Operating Capabilities should be answered by National Defence.

Additional Information:

None