2014-15 Departmental Performance Report

Analysis of Programs by Strategic Outcome

Program 3.4 - Fleet Operational Readiness

Description

The Canadian Coast Guard Fleet Operational Readiness program provides safe, reliable, available, and operationally capable vessels, air cushion vehicles, helicopters, and small craft with competent and professional crews ready to respond to on-water and maritime-related requirements. This program involves fleet management and operations, fleet maintenance, and fleet asset procurement. Through the Fleet Operational Readiness program, the Canadian Coast Guard ensures that the Government of Canada's civilian fleet meets the current and emerging needs and priorities of Canadians and the Government of Canada. The Fleet Operational Readiness program supports Coast Guard programs, the science and fisheries and aquaculture management activities of Fisheries and Oceans Canada, and the activities of a number of other government departments needing on-water delivery in support of their mandates. The Canadian Coast Guard College is an important contributor to the delivery of this program. The legal basis and authority for this program and capability is found in the Constitution Act, 1867 and the Oceans Act.

Budgetary Financial Resources (dollars)

2014-15
Main Estimates Planned Spending Total Authorities Available for Use Actual Spending (authorities used) Difference (actual minus planned)
434,001,300 434,001,300 592,838,614 474,005,854 40,004,554

Human Resources (full-time equivalents)

2014-15
Planned Actual Difference
(actual minus planned)
2,824.0 2,788.8 -35.2

Performance Measurement

Expected Result Performance Indicators Target Actual Results
An operationally capable fleet that responds to the needs and requirements of the Government of Canada Percentage of client mission completion against client-approved planned 90% by March 31, 2015 92.6%
Percentage of operational days lost due to breakdowns 3% by March 31, 2015 2.26%
Percentage of operational life remaining of the fleet of large vessels, the fleet of small vessels and the fleet of helicopters 50% by March 31, 2015

Large vessels
27%

Small vessels
26%

Helicopters
-3%

Performance Analysis and Lessons Learned

The Fleet completed 92.6% of its planned missions, thereby demonstrating the effectiveness of its services. Regular planned maintenance contributes to the Fleet's ability to limit the operational days lost to breakdown within the target range. It should be noted that planned fleet utilization is based on the capacity of the Fleet, and not on requirements from clients or mariners.

The percentage of operational life remaining of the fleet of vessels and helicopters did not achieve its target. However, the helicopter result will improve significantly in the coming year as new helicopters are delivered.


Sub-program 3.4.1 - Fleet Operational Capability

Description

The Canadian Coast Guard Fleet Operational Capability program includes fleet operations, fleet management and the provision of fleet personnel. This program ensures that certificated professionals safely, effectively, and efficiently operate vessels, air cushion vehicles, helicopters, and small craft that are ready to respond to the Government of Canada's on-water and marine related needs. The Canadian Coast Guard College is an important contributor to the delivery of this program. Activities associated with the Fleet Operational Capability program are guided by a number of international conventions and domestic marine-related regulations. For example, the Coast Guard Fleet's Safety and Security Management System is modeled after the International Ship Management Code (as ratified by Canada as a member state of the United Nations' International Maritime Organization), the International Ship and Port Facility Security Code, and the International Labour Code (applicable to Seafarers). The Fleet's Safety and Security Management System is also heavily influenced by the International Convention for the Prevention of Pollution by Ships, the findings of Transportation Safety Board Marine Investigation Reports, the internal safety investigations, the occupational safety and health regulations, and the Canada Shipping Act regulations governing certification of seafarers, the inspection of vessels, the marine equipment requirements, and other operational regulatory aspects. Legal basis and authority for this Program and capability is found in theConstitution Act, 1867 and the Oceans Act.

Budgetary Financial Resources (dollars)

2014-15
Planned Spending Actual Spending Difference
(actual minus planned)
218,915,939 253,363,629 34,447,690

Human Resources (full-time equivalents)

2014-15
Planned Actual Difference
(actual minus planned)
2,586.0 2,571.1 -14.9

Performance Measurement

Expected Result Performance Indicator Target Actual Result
An operationally capable fleet has the capacity to respond to the current operational needs and requirements of the Government of Canada Percentage of operational days delivered versus planned 95% by March 31, 2015 98%

Performance Analysis and Lessons Learned

The Fleet delivered 98% of its operational planned days. It thus surpassed its target of 95% and demonstrated the effectiveness of its services.


Sub-program 3.4.2 - Fleet Maintenance

Description

The Canadian Coast Guard Fleet Maintenance program includes the management and delivery of maintenance services during the operational lives of the vessels, air cushioned vehicles, helicopters, and small craft in order to ensure their availability and reliability to deliver fleet services. The Fleet Maintenance program ensures availability and reliability of vessels through the provision of life-cycle investment planning, engineering, maintenance, and disposal services. The Canadian Coast Guard College is an important contributor to the delivery of this program. As required, this program is delivered in coordination with Public Works and Government Services Canada. Activities associated with fleet maintenance and refit are guided by a number of international and national trade agreements, legal instruments such as the Financial Administration Act and Government Contract Regulations, as well as policies, directives, and guidelines provided by Treasury Board, Treasury Board Secretariat, Industry Canada, and Public Works and Government Services Canada. Fundamental authority for building fleet capability is found in the Constitution Act, 1867 and the Oceans Act.

Budgetary Financial Resources (dollars)

2014-15
Planned Spending Actual Spending Difference
(actual minus planned)
148,098,300 137,528,954 -10,569,346

Human Resources (full-time equivalents)

2014-15
Planned Actual Difference
(actual minus planned)
153.0 161.5 8.5

Performance Measurement

Expected Result Performance Indicator Target Actual Results
A reliable fleet has the capacity to respond to the operational needs and requirements of the Government of Canada Condition ratingFootnote1 for the fleet of large vessels remains within acceptable risk tolerance for reliability, availability and maintainability 64.4 by March 31, 2015 56
Condition rating for the fleet of small vessels remains within acceptable risk tolerance for reliability, availability and maintainability 65.8 by March 31, 2015 64.9

Performance Analysis and Lessons Learned

The score for the large vessels (56) indicates that the level of maintenance has been stable with an acceptable variance for the past two years. The score in the previous reporting cycle was 57.5. With the scheduled vessel life extensions, we expect a noticeable improvement.

Stability can also be seen in the score for the small vessels (64.9). The score in the previous reporting cycle was 67.

The vessel scoring process will be monitored and validated over the next few reporting cycles.


Sub-program 3.4.3 - Fleet Procurement

Description

The Canadian Coast Guard Fleet Procurement program plans, manages, verifies, and accepts the design and construction of new large and small vessels, air cushioned vehicles, helicopters, and small craft consistent with the Canadian Coast Guard's operational requirements as identified in the Fleet Renewal Plan 2017 and the Integrated Investment Plan. This program provides project management support to ensure effective and efficient project integration, scope, time, cost, quality, human resources, communications, risk, and procurement. As required, program delivery is coordinated with Public Works and Government Services Canada. Activities associated with Fleet Procurement are also guided by a number of international and national trade agreements, and legal instruments such as the Financial Administration Act and Government Contract Regulations, as well as policies, directives, and guidelines provided by Treasury Board, Industry Canada, and Public Works and Government Services Canada. Fundamental authority for building fleet capability is found in the Constitution Act, 1867 and the Oceans Act.

Budgetary Financial Resources (dollars)

2014-15
Planned Spending Actual Spending Difference
(actual minus planned)
66,987,061 83,113,270 16,126,209

Human Resources (full-time equivalents)

2014-15
Planned Actual Difference
(actual minus planned)
85.0 56.2 -28.8

Note: The variance between planned and actual human resources is balanced out when utilization is rolled-up to the Fleet Operational Readiness program (3.4).

Performance Measurement

Expected Result Performance Indicators Targets Actual Results
A modern fleet that responds to the operational needs and requirements of the Government of Canada Percentage of critical milestones achieved versus planned 80% by March 31, 2015 20%
Percentage of new large vessels, small vessels, and helicopters delivered versus planned 80% by March 31, 2015 100%
Percentage of vessels planned for replacement (10 years or less of expected remaining operational life for large vessels, and 5 years or less of expected remaining operational life for small vessels) that have a funded procurement plan in place 90% by March 31, 2015 88.4%

Performance Analysis and Lessons Learned

In 2014-15, the Canadian Coast Guard (CCG) accepted delivery of the final two of nine new Mid-Shore Patrol Vessels, CCGS M. Charles M.B. and CCGS Captain Goddard M.S.M.

Although 100% of vessels planned for delivery were delivered, the CCG experienced some delays in projects underway in 2014-15. Contracts for 15 new light-lift helicopters and seven new medium-lift helicopters were awarded in 2014-15 as planned; however, the final project closeout of the new Air Cushion Vehicle, CCGS Moytel, was delayed to 2015-16 due to an extension of the warranty period to correct manufacturing defects. While a contract for new Search and Rescue Lifeboats was also expected to be awarded in 2014-15, the project was amended to accommodate an additional five vessels funded through the 2014 Infrastructure investment and the solicitation process was extended at the request of industry. The contract is now expected to be awarded in 2015-16. CCG continues to advance engineering work for the Offshore Fisheries Science Vessels project and prepare for the start of construction at Vancouver Shipyards Co. Ltd. (VSY) under Canada's National Shipbuilding Procurement Strategy. The construction contract award planned for 2014-15, was delayed to 2015-16 due to the delays in completion of the engineering work at VSY. Once construction begins, engineering resources will be available for the second project at the shipyard, the Coast Guard's Offshore Oceanographic Science Vessel. As a result of the above factors, CCG only achieved 20% of the critical milestones that had been planned for 2014-15. These projects demonstrate the need for continued strong oversight measures as well as ensuring that projects have the flexibility to adapt to changing schedules and issues that are sometimes beyond the control of CCG.

Since 2005, approximately $7 billion has been invested in the renewal of the CCG fleet. With this investment, CCG is able to proceed with vessel procurement projects to address the most pressing vessel replacement needs. Currently, CCG has funding in place for almost 89% of vessels needing to be replaced in the next 5-10 years. In light of the continuing aging of the CCG fleet, future fleet renewal priorities will be guided by the Fleet Renewal Plan 2017, an evergreen, long-term asset management plan aimed at identifying fleet renewal priorities, as well as appropriate interim measures to sustain program delivery.