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Defence procurement

An overview of current Canadian Forces equipment projects

Government Shipbuilding Consultation
July 27, 2009 marked the opening of the Government of Canada’s Shipbuilding Consultation, an opportunity to seek input from key stakeholders on comprehensive and viable options for a long-term, sustainable Canadian shipbuilding strategy. Fleet renewal plans could see the government invest in more than 50 large vessels.
Value: Commitment to fleet renewal is estimated at approximately $40 billion over the next 30 years.
Status: The maritime industry has until September 16, 2009 to provide their input to the GOC on how to put in place a long term, sustainable shipbuilding strategy for our country.

Family of Land Combat Vehicles (FLCV)
FLCV projects will deliver the next generation of land combat vehicles, providing the Army with a flexible, multi-purpose capability that will enable the Canadian Forces (CF) to respond effectively and successfully to the full spectrum of military operations. The FLCV encompasses four projects: the LAV III upgrade, the Close Combat Vehicle (CCV), the Tactical Armoured Patrol Vehicle (TAPV), and the Force Mobility Enhancement (FME) vehicle.
Value: Approx $5 billion (which includes an estimated $1 billion to upgrade the current fleet of Light Armoured Vehicles).
Status: The project, announced on July 8, 2009 has received preliminary project approval.

Naval Engineering Test Establishment (NETE)
The NETE comprises chemical, electronics and photography laboratories, environmental test facilities and computer system testing facilities. NETE is available for use by other federal and provincial government departments and Crown corporations, by defence agencies from other allied nations and, under specific conditions, by industry.
Value: Approx $600 million.
Status: The 5-year contract was awarded to Weir Canada Inc. on July 2, 2009.

Medium Support Vehicle System
The Medium Support Vehicle System project will deliver three different pieces of essential kit:
· Militarized Commercial-Off-The-Shelf (MilCOTS) vehicles – commercial trucks adapted for military use for domestic operations;
· Standard Military Pattern (SMP) vehicles, Armour Protection Systems, and Load Handling System Trailers – 1500 trucks designed for military use to be used in foreign operations; and
· Special Engineering Vehicles (SEVs) – up to 1000 SEV kits, to be transported on the MilCOTS and SMP vehicles, containing medical and dental facilities, workshops, offices, etc.
Value: Total project value: $1.22 billion.
Status:
· MilCOTS: A contract valued at $274 million was awarded to Navistar Defence LLC for 1300 vehicles;
· SMP: A Request for Proposals for this acquisition will be issued in fall 2009;
· SEV: A contract awarded to DEW Engineering and Development ULC, valued at $130 million, was announced on August 11, 2009 for 895 baseline (empty) shelters. A Request for Proposals for “kitting” of the baseline shelters will be issued in spring 2010.

Close in Weapon System
A rapid-fire computer-controlled radar and gun system that automatically acquires, tracks and destroys enemy threats that have penetrated all other ship defence systems, and is installed on the Canadian Navy’s patrol frigate, tribal class and supply ships.
Value: Approx $180 million.
Status: Contract award to Raytheon Canada Limited of Calgary was announced on June 19, 2009.

Persistent Surveillance Tower Systems and Surveillance Aerostat Systems
These contracts are part of the Counter-Improvised Explosive Devices Project, an initiative to provide the CF with enhanced persistent surveillance capability. Under the Enhanced Counter-Improvised Explosive Devices Project, National Defence is acquiring advanced capabilities to detect, neutralize and clear improvised explosive devices and other hazards and to deliver route surveillance.
Value: $12.5 million and $13.6 million.
Status: Contract awards to Thales Systems Canada Inc. ($12.5 million) and Rheinmetall Canada ($13.6 million) were announced on June 11, 2009.

Leopard 2 Main Battle Tanks
In 2007, Canada purchased 100 surplus Leopard 2 tanks from the Netherlands for the long-term requirements of the CF. Forty will be upgraded to a fully combat ready standard; the remainder will be used for training in Canada or converted and rebuilt into specific variants to support the main battle tanks during operations and training.
Value: $650 million.
Status: Acquisition of the Leopard 2 tanks from the Netherlands was announced on April 12, 2007. A Price and Availability was issued on MERX in April 2009 for the refurbishment of up to 60 tanks.

Medium-to Heavy-Lift Helicopters
These 16 new medium-to-heavy lift helicopters will allow the CF to increase their deployability, mobility and flexibility, and perform more complex operations both at home and abroad.
Value: Approx. $2 billion, plus a contract for 20 years of in-service support worth an estimated $2.7 billion.
Status: The Medium- to Heavy-Lift Helicopter capability was announced on June 27, 2006.

Consolidated Clothing Contract
This contract provides the CF manufacturing, design support services, inventory management, order taking, warehousing and distribution of military clothing. Clothing articles are ordered by the member online, and then delivered to the member.
Value: Approx $190.8 million.
Status: A contract was awarded to Logistik Unicorp Inc. on March 23, 2009.

Operational Training System Provider (OTSP) – CC130J fleet
This training program consists of basic flying qualifications for pilots and loadmasters for the J model Hercules aircraft. Pilots and loadmasters also receive mission qualifications to learn how to use the aircraft airlift systems in an operational environment while ongoing training will maintain their qualifications. This contract will provide the information, courseware, materials, equipment, and resources necessary to support training on the C-130J aircraft and aircraft systems.
Value: $346 million.
Status: A 20-year contract was awarded to CAE Inc. of Montreal on February 13, 2009.

Joint Support Ship (JSS)
The JSS will enable a Naval Task Group to remain at sea for up to six times longer than is currently possible. These vessels will provide core replenishment capabilities, plus added capacity for sealift and increased support to troops ashore.
Value: Approx. $2.9 billion.
Status: The JSS was announced on June 25, 2006. After receiving and evaluating the mandatory requirements for the project from the bidders, the Crown determined that the proposals were not compliant with the basic terms of the Request for Proposals including cost provisions. National Defence is currently considering the next steps for moving forward with this project, which is part of the Government Shipbuilding consultation process.

Strategic airlift (CC177 Globemaster III)
Whether for domestic deployments or overseas missions, strategic airlift is the most efficient way to move large loads over vast distances, reducing the number of crews and stopovers needed, and saving on fuel.
Value: $1.6 billion for acquisition and a contract for 20 years of in-service support with an estimated value of $1.6 billion.
Status: A contract for four aircraft was awarded to Boeing in February 2007; delivery of the first aircraft was in August 2007 with final delivery in April 2008.

Tactical airlift (CC130J Hercules)
The lifeline of the CF, tactical airlift provides reliable aircraft to quickly and safely carry passengers, heavy equipment and supplies over long distances in support of operations, or in response to crises.
Value: $1.4 billion US, with an additional amount to be added for in-service support.
Status: The contract was awarded to Lockheed Martin on December 20, 2007, with early delivery of two aircraft in June 2010. The remaining 15 aircraft will be delivered beginning in December 2010.

Halifax Class Modernization / Frigate Life Extension Project (HCM/FELEX)
The modernization of the Halifax class frigate will include a new command and control system, new radar capability, a new electronic warfare system and upgraded communications and missiles. Separate refit and stand-alone projects will include installation of new mechanical systems and modifications to accommodate the new Cyclone helicopters and a new military satellite communications system.
Value: Total of the four awarded contracts is approximately $2 billion.
Status: In March 2008, the government awarded two contracts for the on-going maintenance and repair of the frigates: $549 million to Halifax Shipyards and $351 million to Victoria Shipyards Company Limited. In November 2008, Lockheed Martin Canada was awarded the combat systems integration contract contract worth approximately $1.4 billion to procure, install and integrate the modernized combat systems; Lockheed Martin was also awarded the long-term in-service support of the command and control system worth approximately $600 million.

Afghanistan Air Capabilities

Small Unmanned Arieal Vehicle services
The services of a small UAV were urgently needed in theatre to provide life-saving intelligence and surveillance for unit commanders.
Value: Two contracts valued at up to $14 million and $30 million.
Status: A short-term directed contract was put in place to provide immediate small UAV support: the Scan Eagle UAV was leased to address those needs. The contract was valued at up to $14 million, depending on flight hours logged.
On April 3, 2009, a contract was awarded to Insitu Inc. of Bingen, Washington to provide the CF with services for SUAVs. This contract, awarded for one year, with two one-year options, provides for SUAV turnkey services that include: training Forces personnel; maintenance personnel; repair, technical and engineering support; and integrated logistics support. The services also include launching the SUAVs and performing post takeoff checks before providing them to CF personnel for operational missions. Once the missions are complete, the contractor will recover the SUAVs to prepare them for their next mission. This contract has an estimated value of US $30 million for the initial one-year period.

UAV services
MacDonald Dettwiler Associates (MDA) of Vancouver was awarded a two-year, $95 million contract for the lease of a Heron tactical UAV system. The Heron provides life-saving surveillance and intelligence gathering capabilities that can be used in a variety of operations.

Helicopters
Six commercial helicopters were leased to address immediate needs. The one-year contract is valued at up to $36 million, depending on flight hours logged, with renewable one year options available. Canada has purchased six used Chinook D-model helicopters – already in theatre – from the United States government. The cost for the equipment acquisition, plus initial logistics support, training and project management costs will not exceed $252 million.

DND infrastructure projects

With 21,000 buildings, 5,500 km of roads, 3,000 km of water, storm and sewer pipes and 2.25 million hectares of land, National Defence must maintain significant infrastructure across the country.

Navy

CFB Esquimalt
HAZMAT Facility
The HAZMAT building at CFB Esquimalt will be used for the storing and transportation of bulk hazardous material and hazardous waste.
Value: Approx $36 million.
A construction contract was awarded for the Phase II of the project to Kinetic Construction in November 2008 for approximately $14.5 million.
Construction completion date: Phase II is ongoing and completion is anticipated for summer 2010.
Announced: 13 March 2009.

CFS St. John’s
Pleasantville Consolidation
Construction of a modern complex to accommodate CFS St. John’s and many reserve and cadet units which will operate out of the facility.
Value: Approx $150 million
Expected construction start date: Late 2009.
Expected construction completion date: 2012.
Announced: April 2007.

Army

CFB Edmonton
Training Accommodation
Training accommodations are short-term accommodations used by Canadian Forces members during training. The training accommodations at CFB Edmonton are part of an overall Departmental program to modernize Canadian Forces accommodations across the country.
The new training accommodation building at CFB Edmonton will include 97 rooms.
Value: Approx $21.3 Million (overall project cost, including taxes)
Expected construction start date: Late 2009.
Expected construction completion date: Late 2010.
Announced: 15 March 2009.

CFB Wainwright
Water Treatment Plant Upgrade
The Water Treatment Plant Upgrade project at CFB Wainwright will improve the water processing system to ensure safe and reliable drinking water to both the base and the town of Wainwright.
Value: Approx $11.4 Million (overall project cost, including taxes)
Contract awarded to: Graham Construction and Engineering Inc.
Expected construction start date: Summer 2009.
Expected construction completion date: Summer 2010.
Announced: 15 March 2009.

Air Force

19 Wing Comox
Mess Building: will include three distinct mess halls — an Officer’s mess, a Non-Commissioned Member’s mess and a Senior Non-Commissioned Member’s mess — and a multi-purpose conference room; updates the existing kitchen facilities, which are aging and have become increasingly difficult to maintain.
Value: Approx $26 million.
Expected construction start date: 2010.
Expected construction completion date: 2012.
Announced: 12 July 2007.

4 Wing Cold Lake
Petroleum, Oil and Lubricants Dispensing System Upgrade: will replace the existing petroleum, oil and lubricants dispensing system, and upgrade the aviation refuelling facility to meet the required environmental standards.
Value: Approx $8.1 million.
Expected construction start date: Summer 2009.
Expected construction completion date: Summer 2010.
Announced: 15 March 2009.

17 Wing Winnipeg
Reconstruct Southeast Apron: The project will reconstruct 13, 215 sq m of the existing South East apron, located in front of the hangars, and will allow for aircraft manoeuvring.
Value: Approx $4.5 million.
Contract awarded to: Borland Construction.
Expected construction start date: May 2009.
Expected construction completion date: November 2009.
Announced: 15 March 2009.

3 Wing Bagotville
Resurfacing of runway 11/29: resurfacing of runway 11/29 due to damage over time by the harsh winters of the Saguenay-Lac-Saint-Jean region.
Value: Approx $17 million.
Contract awarded to: Groupe Alfred-Boivin.
Launched: 26 June 2008.

8 Wing Trenton
1. Reconstruct Taxiways and Aprons (South East): The southeast apron at 8 Wing Trenton will be reconstructed so that it can support the weight of a CC-177 aircraft, which can weigh up to 256 tonnes.
Value: Approx $25 million.

2. Reconstruction of the northwest ramp: construction of a new northwest ramp and associated taxiway infrastructure to provide more area for manoeuvring, parking and loading aircraft, while providing adequate space to accommodate future Wing requirements.
Value: Approx $39 million.
Contract awarded to: Dufferin Construction Company.
Announced: 5 September 2008.

9 Wing Gander
1. Construct 91 Chief Engineering Flight (CEF) Headquarters: involves the construction of a new 1358 sq m purpose-built facility to replace the existing building that houses 91 CEF, a reserve heavy construction engineering unit.
Value: Approx $6.6 million.
Expected construction start date: Spring 2010.

2. Construct multi-purpose facility: involves the construction of two multi-purpose facilities to be built on property that is currently leased from the Gander International Airport. This project will update existing infrastructure and consolidate 9 Wing support units into two buildings, improving the overall effectiveness of Wing support operations.
Value: Approx $35.9 million.
Expected construction start date: Phase one of the project is expected to begin in spring 2011. Phase two is expected to begin in 2015.

12 Wing Shearwater
In February 2009, DND completed the renovation of 18 housing units. The renovations increased the living area in these homes – in some cases, doubling the living space – and included an additional bedroom, a new kitchen and new bathroom. Other upgrades include updated and new exterior cladding.
Value: Approx $4.6 million.
The construction contract for $3.2 million was awarded to Blunden Construction Ltd of Halifax, Nova Scotia.
Expected construction start date: Winter 2008.
Expected construction completion date: February 2009.

14 Wing Greenwood
The new firehall at 14 Wing Greenwood, located on the airfield, will allow the fire services at the Wing to reach the site of aircraft incidents more quickly, minimizing response times. The new building will also contain offices, training rooms, quarters, classrooms and storage areas.
Value: Approx $13.1 million.
Expected construction start date: late 2010.
Expected construction completion date: 2011.
Announced: 12 July 2007.

 

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