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July 15, 2021 | Local, Aerospace, Naval, Land, C4ISR, Security

Defence equipment purchases and upgrades

Colleagues and Partners in Defence,

Like most of Canada's business and industry sectors, the COVID-19 pandemic has had a profound impact on much of our work here at the Department of National Defence over the past 18-months. Nonetheless our teams have been working diligently to ensure that key projects continue to move forward so our members in uniform have the equipment they need, and so Canadian industry has a sustainable workload.

While the full impact of the pandemic is not yet known, we are now sharing updated information about our key, major equipment procurement projects that reflects the effects of the first year of COVID-19. As you will see in the documents attached we continue to evaluate the effects of the pandemic and any changes these may bring to project schedules or costs.

Some of the main changes that you will notice include:

  • A potential delay of 16 months to the delivery of the final Arctic and Offshore Patrol Ship due to work adjustments caused by COVID-19 and other programmatic considerations. This should not impact operations, or production of future ships at the same shipyard, but we continue to monitor the schedule closely.
  • Significant progress on the Joint Support Ship, with 122 of 123 blocks of the first ship under construction. Since the documents attached were prepared, progress has continued and all 123 blocks are under construction or substantially complete. Based on this, we expect the delivery of the first ship as planned, in 2023.
  • Progress on the Fixed-Wing Search and Rescue Aircraft Replacement Project, with six aircraft now accepted in Spain, two of which have been delivered to Canada. This keeps us on track with our plan for initial operational capability in 2022.
  • Significant changes to the Cormorant Mid-Life Upgrade Project, as the original proposal was found unaffordable. We continue to work with the original equipment manufacturer to find an acceptable solution, but this will likely cause some delays to the project.
  • Continued production of the Armoured Combat Support Vehicle, with fourteen vehicles now produced, which keeps us on track for initial operational capability in 2023. Since the documents attached were prepared, production has continued, and a total of 22 vehicles have now rolled off the production line.
  • Completion of the Medium Support Vehicle System Project and Tactical Armoured Patrol Vehicle. Now that all vehicles have been received, and full operational capability has been achieved, this project will now be considered closed.

Our webpages will be updated in the coming days to reflect this latest information, and will continue to be updated should any changes develop in the future. You can always access information about all our major equipment procurements at https://www.canada.ca/en/services/defence/defence-equipment-purchases-upgrades.html.

We welcome your questions and commentary, and hope that you will continue to be involved in this effort as it evolves.

Vance White

C.V. (Vance) White, CD

Acting Director

Directorate of Outreach and Speechwriting [DOAS] | Assistant Deputy Minister (Public Affairs) [ADM(PA)]

Department of National Defence | Government of Canada

Vance.White@forces.gc.ca | C: 613-222-3272

https://www.canada.ca/fr/services/defense/achat-mise-a-niveau-equipement-defense.html

On the same subject

  • Canada ensures continued support for Halifax-class radar systems

    October 21, 2020 | Local, Naval, C4ISR

    Canada ensures continued support for Halifax-class radar systems

    From: National Defence Canada's Halifax-class multi-role patrol frigates are the backbone of the Royal Canadian Navy (RCN). Making sure that these ships have and maintain modern equipment is key to ensuring our navy can continue its important work. Canada's Halifax-class multi-role patrol frigates are the backbone of the Royal Canadian Navy (RCN). Making sure that these ships have and maintain modern equipment is key to ensuring our navy can continue its important work. Today, Defence Minister Harjit S. Sajjan announced an in-service support contract with Thales Canada, of Ottawa, Ontario, to support the SMART-S MK2 radar system used on Canada's Halifax-class frigates, starting in fall 2020. Valued at $4.6 million (including taxes), this contract will provide critical engineering, in-service support, and repair and overhaul services to ensure the radar remains operationally capable of detecting the location and range of possible air and surface threats up to 250 km away. The SMART-S MK2 radar is the primary tactical radar used on the Halifax-class frigates, and was installed as part of the Halifax-class Modernization Project. It is a medium-to-long-range 3-D radar that provides air and surface surveillance capabilities to the RCN's Halifax-class frigates. Keeping our Halifax-class frigates operational and at the height of modern technology is critical for maintaining the combat readiness of the RCN until the arrival of the Canadian Surface Combatant ships. Quotes “The continued support of the Royal Canadian Navy's Halifax-class frigates is an important aspect of Canada's defence policy, Strong, Secure, Engaged. The Halifax-class frigates are considered to be the backbone of the RCN. As maritime threats continue to evolve, this investment in equipment will provide our people in uniform with the tools they need, to continue protecting Canadians and supporting peace and security missions at home and abroad.” “We are providing the members in uniform with the equipment they need to carry out their important work. This in-service support contract is another example of our commitment to provide the Royal Canadian Navy with the technology it needs to continue protecting and serving Canadians.” The Honourable Anita Anand, Minister of Public Services and Procurement “Investing in our local industry is now more important than ever with the COVID-19 pandemic. By supporting companies like Thales here in the National Capital Region, our government is continuing to grow local Ottawa-based industry, while also providing the women and men of the Canadian Armed Forces with the resources they need.” Anita Vandenbeld, Parliamentary Secretary to the Minister of National Defence Quick facts Halifax-class frigates monitor and control Canadian waters, defend Canada's sovereignty, facilitate large-scale search and rescue activities, and provide emergency assistance when needed. The frigates operate with and integrate into the United Nations, the North Atlantic Treaty Organization and coalitions of allied states in support of international peace and security operations. Introduced into service in the 1990s, the Canadian-built Halifax-class frigates were recently modernized to remain operationally effective and relevant until the Canadian Surface Combatants enter into service. This contract will provide in-service support and repair and will overhaul parts for the SMART-S MK2 radar for one year, beginning this fall. There is also an option for an additional four, one-year extensions, in order to maintain support during the transition to future in-service support contracts. Should all options be exercised, the entire contract has a potential value of up to $19 million (including taxes). This contract is fully compliant with the Government of Canada's Sustainment Initiative, which helps us ensure performance, value for money, flexibility, and economic benefits. This in-service support contract for the radar is an interim measure that will ensure services until a new contract for the Halifax-class Combat System has been awarded and a transition has been completed in 2021. This future in-service support contract will combine five current contracts for the frigate's combat systems under one long-term contract managed by a single prime contractor, helping to ensure continued service and best value. Through the Halifax-class Modernization Project, the Government of Canada successfully modernized the RCN's fleet of 12 frigates to ensure they continue to meet evolving operational needs. Valued at $4.3 billion, this project provided state-of-the-art upgrades, including a new combat management system, new radar capability, new electronic warfare systems, and upgraded communications and missile systems. Final delivery was on November 30, 2016, with full operational capability achieved by January 31, 2018. https://www.miragenews.com/canada-ensures-continued-support-for-halifax-class-radar-systems/

  • New defence procurement agency would be disruptive, costly

    February 20, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

    New defence procurement agency would be disruptive, costly

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Nor is it apparent how the government would consolidate and streamline the myriad procurement functions of multiple departments. Jody Thomas, deputy minister of National Defence, acknowledged as much during an address to the Canadian Global Affairs Institute (CGAI) Jan. 29 when asked about DPC progress. “I don't know what it is going to look like ... We're building a governance to look at what the options could be and we are studying what other countries have done,” she said, noting that a standalone agency outside the department of defence has not necessarily worked particularly well in other countries. “Everything is on the table. We're looking at it, but we haven't actually begun the work in earnest.” The idea of moving defence procurement under a single point of accountability is hardly new. Alan Williams, a former assistant deputy minister of Material (Adm Mat), made the case for a single agency in a 2006 book, Reinventing Canadian Defence Procurement. And the Canadian Association of Defence and Security Industries (CADSI) issued a report in 2009 calling for a “separate defence procurement agency reporting through a single Minister ... [to] consolidate procurement, industrial, contracting and trade mandates into one new department, like a Defence Production Department, reporting to a minister.” More recently, an interim report on defence procurement by the Senate Committee on National Defence in June 2019 argued that “a single agency could simplify the complex procurement governance framework. Serious consideration could also be given to empowering project officials and making the Department of National Defence the lead department.” Williams remains a strong proponent. In a presentation to a CGAI conference on defence procurement in the new Parliament in late November, he greeted the DPC decision with a “hallelujah,” pointing to the high cost created by overlap and duplication when multiple ministers are involved in a military acquisition decision, and the tendency to play the “blame game” when delays or problems arise and there is no single point of accountability. But he cautioned that the initiative would falter without better system-wide performance measures on cost, schedules and other metrics. “If you don't monitor and put public pressure on the system, things will [slide],” he said. Williams also called for a defence industrial plan, backed by Cabinet approval, to help identify where to invest defence capital, and “a culture that recognizes and demands innovative creativity, taking chances.” Other former senior civil servants, many with decades of experience in public sector organizational reform, were less optimistic about the prospects of a new agency or departmental corporation. “There is always a good reason why things are the way they are,” said Jim Mitchell, a research associate with the Graduate School of Public and International Affairs at the University of Ottawa and part of massive reorganization of government departments undertaken by Prime Minister Kim Campbell during her brief tenure in 1993. “If you want to change things, you first have to understand, why do we have the current situation that we have in defence procurement and who are the people who have a major stake in the status quo and why? If you don't understand that, you are going to get into big trouble,” he warned the CGAI audience of government and industry leaders. At a time when the departments are moving a record number of equipment projects, including CF-188 Hornet replacement, through the acquisition process under the government's 2017 defence policy, any restructuring could significantly delay progress. “Organizational change is always disruptive, it's costly, it's difficult, it's hard on people, it hurts efficiency and effectiveness of organizations for a couple of years at minimum,” said Mitchell. “It is something you do very, very carefully.” It's a point not lost on CADSI. “The sheer scale of the change required to make DPC real should give companies pause. It could involve some 4,000-6,000 government employees from at least three departments and multiple pieces of legislation, all while the government is in the middle of the most aggressive defence spending spree in a generation,” the association wrote in an email to members in December. A vocal proponent of improving procurement, it called DPC “a leap of faith,” suggesting it might be “a gamble that years of disruption will be worth it and that the outcomes of a new system will produce measurably better results, including for industry.” Gavin Liddy, a former assistant deputy minister with PSPC, questioned the reasoning for change when measures from earlier procurement reform efforts such as increased DND contracting authority up to $5 million are still taking effect. “You really need an extraordinarily compelling reason to make any kind of organizational change. And every time we have attempted it ... it takes five to seven years before the organization is up and standing on its feet,” he told CGAI. “If you want to do one single thing to delay the defence procurement agenda...create a defence procurement agency. Nothing would divert attention more than doing that.” While few questioned the need for enhancements to the defence procurement process, many of the CGAI participants raised doubts about the logic of introducing a new entity less than three years into the government's 20-year strategy. Thomas described a number of improvements to project management and governance that are already making a difference. “The budgeting and project management in defence is really extraordinarily well done. If I am told by ADM Mat they are going to spend $5.2 billion, then that is what they spend. And we have the ability to bring more down, or less, depending on how projects are rolling,” she explained. “We are completely transparent about how we are getting money spent, what the milestones are on projects ... The program management board is functioning differently and pulling things forward instead of waiting until somebody is ready to push it forward.” “And we are working with PSPC. I think it is time to look at the government contracting [regulations], how much we compete, what we sole source, the reasons we sole source. I think there is a lot of work there that can be done that will improve the system even more.” https://www.skiesmag.com/news/new-defence-procurement-agency-would-be-disruptive-costly

  • Airbus Delivers on Industrial and Technological Benefits for Fixed Wing Search & Rescue aircraft (FWSAR) Program with UTAS Landing Gear on A350-1000

    June 29, 2018 | Local, Aerospace

    Airbus Delivers on Industrial and Technological Benefits for Fixed Wing Search & Rescue aircraft (FWSAR) Program with UTAS Landing Gear on A350-1000

    OTTAWA, June 28, 2018 /CNW/ - UTC Aerospace Systems (UTAS) Landing Systems site in Oakville, Ontario, is Airbus' sole supplier for the main landing gear of the A350-1000, the world's newest long range widebody airliner. With 168 A350-1000s ordered by airlines around the world, the cooperation is expected to bring long-term, sustainable and high-quality work to Canada, this also resulting through the Industrial and Technological Benefits (ITB) associated with the Airbus C295 FWSAR program. The program looks to provide business even beyond the duration of the current FWSAR ITB achievement period. "I am pleased to see that UTC Aerospace Systems' expertise is being recognized through this important contract with government suppliers. Our government is leveraging its purchasing power to bring economic benefits and jobs to Canadian firms, enabling them to grow and innovate, which is creating highly-skilled jobs and economic growth in Oakville and across the country," said the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development (ISED). UTC Aerospace Systems celebrated an important milestone earlier this year with the entry into service of its first Airbus A350-1000 landing gear, flying today with two operators. "At UTC Aerospace Systems, our Landing Systems business has a long history of operating in Canada and partnering with Airbus," said the company's Oakville Vice President Frank Karakas. "We're proud of that legacy, and look forward to building on it in the years to come." The manufacturing of the landing gear also incorporates a sizeable element of Canadian Small Medium Business (SMB) volumes, thus benefitting the local supply chain. The project also supports numerous ISED goals, such as world product mandates, export enhancement, sustainable business and SMB involvement. "Airbus and UTAS have been partners for many years and this new technology incorporated into the A350-1000 widebody airliner is just another example of how we continue to support Canadian innovation," said Simon Jacques, President, Airbus Defence and Space Canada. The A350-1000 is the latest member of Airbus' leading widebody family, showing high level of commonality with the A350-900 with 95% common systems part numbers and Same Type Rating. As well as having a longer fuselage to accommodate 40% larger premium area (compared to the A350-900), the A350-1000 also features a modified wing trailing-edge, new six-wheel main landing gears and more powerful Rolls-Royce Trent XWB-97 engines. Along with the A350-900, the A350-1000 is shaping the future of air travel by offering unprecedented levels of efficiency and unrivalled comfort in its 'Airspace' cabin. With its additional capacity the A350-1000 is perfectly tailored for some of the busiest long-haul routes. The FWSAR programme is supporting approximately $2.5 billion (CAD) in ITB value return to Canada, through high-volume, long-term partnerships with companies, such as UTC Aerospace Systems. About Airbus Airbus is a global leader in aeronautics, space and related services. In 2017 it generated revenues of € 59 billion restated for IFRS 15 and employed a workforce of around 129,000. Airbus offers the most comprehensive range of passenger airliners from 100 to more than 600 seats. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world's leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide. https://www.newswire.ca/news-releases/airbus-delivers-on-industrial-and-technological-benefits-for-fixed-wing-search--rescue-aircraft-fwsar-program-with-utas-landing-gear-on-a350-1000-686854821.html

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