Report on Plans and Priorities 2014-15

Status Report on Transformational and Major Crown Projects

Mid-Shore Patrol Vessels

Description: The Mid-Shore Patrol Vessels project will acquire nine Mid-Shore Patrol Vessels for the Canadian Coast Guard Fleet - five of the nine Mid-Shore Patrol Vessels will be used primarily to support the Conservation and Protection Program in the Maritimes, Quebec and Pacific Regions. The other four vessels will be used in a joint program with the Royal Canadian Mounted Police to enhance maritime security along the Great Lakes - St. Lawrence Seaway system.

Project Phase: The Mid-Shore Patrol Vessels project is currently in the construction phase of project implementation.

Sponsoring and Participating Departments and Agencies
Sponsoring Department or Agency Canadian Coast Guard, Fisheries and Oceans Canada
Contracting Authority Public Works and Government Services Canada
Participating Departments and Agencies Industry Canada; Royal Canadian Mounted Police; Treasury Board Secretariat; Privy Council Office; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Public Safety Canada; Department of National Defence.

Prime and Major Subcontractors
Prime Contractor Irving Shipbuilding Inc.
P.O. Box 9110, 3099 Barrington Street
Halifax, Nova Scotia
B3K 5M7
Operating as: Halifax Shipyard
Major Subcontractors International Contract Engineering, Damen, Lloyd's Register, MTU.

Major Milestone Date
Preliminary Project Approval August 2005
Effective Project Approval June 2006
First Request for Proposal (cancelled) July 2007
Amended Effective Project Approval - to include four additional vessels identified in Budget 2007 December 2007
Second Request for Proposal issued (cancelled) August 2008
Third Request for Proposal issued March 2009
Contract awarded August 2009
First vessel delivered July 2012
Delivery of final Mid-Shore Patrol Vessel 2014-15

Project Outcomes: The Mid-Shore Patrol Vessels project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard. Project outcomes contribute to the Fleet Operational Readiness Program in Fisheries and Oceans Canada's Program Alignment Architecture.

Progress Report and Explanations of Variances: The Mid-Shore Patrol Vessels project was initially approved in August 2005 at an indicative total estimated cost of $146.5 million for the procurement of eight vessels. Budget 2007 allocated $66.0 million to the Mid-Shore Patrol Vessels project to procure four additional vessels. Following further project analysis, it became clear that the funds provided would not be sufficient to procure twelve vessels. In 2009, Treasury Board provided authorities to procure nine vessels at a revised indicative total estimated cost of $227.0 million which has all been provided to the project.

The project is running on budget and is achieving its objectives (all vessels to be delivered by 2014-15). In 2012-13, six Mid-Shore Patrol Vessels were delivered: CCGS Private Robertson V.C. (July 2012), CCGS Caporal Kaeble V.C. (November 2012), CCGS Corporal Teather C.V. (February 2013), CCGS Constable Carrière (May 2013), CCGS G. Peddle S.C. (October 2013), and CCGS Corporal McLaren M.M.V. (October 2013). The remaining three vessels will be delivered in 2014-15. The project is expected to be completed approximately one year after the last vessel is delivered (at the end of the warranty period).

Industrial Benefits: Canadian industry will benefit from this project. The Request for Proposal requires overall industrial benefits equal to 100% of contract value. Regional allocation of industrial benefits is monitored by Industry Canada.


Offshore Fisheries Science Vessels

Description: The Offshore Fisheries Science Vessels project will acquire three Offshore Fisheries Science Vessels for the Canadian Coast Guard Fleet. The Offshore Fisheries Science Vessels will replace three aging Coast Guard ships on the east and west coasts of Canada that provide a platform from which critical scientific research and ecosystem-based management can be performed.

Project Phase: The design contract for the Offshore Fisheries Science Vessels has been completed and the construction engineering contract has been awarded.

Sponsoring and Participating Departments and Agencies
Sponsoring Department or Agency Canadian Coast Guard, Fisheries and Oceans Canada
Contracting Authority Public Works and Government Services Canada
Participating Departments and Agencies Industry Canada; Treasury Board Secretariat; Privy Council Office; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

Prime and Major Subcontractors
Prime Contractor Vancouver Shipyards Co. Ltd. (Seaspan) under the National Shipbuilding Procurement Strategy subject to successful conclusion of contract negotiations.
Major Subcontractors Design Contractor: Robert Allan Ltd., Alion Science and Technology (Canada) Corporation and Alion Science and Technology Corporation in joint venture.

Major Milestone Date
Preliminary Project Approval October 2005
Amended Preliminary Project Approval November 2006
Second amended Preliminary Project Approval June 2009
Request for Proposal for Design issued March 2010
Government of Canada announced that the three Offshore Fisheries Science Vessels will be built under the National Shipbuilding Procurement Strategy June 2010
Third amended Preliminary Project Approval - to award contract September 2010
Contract award for design October 2010
Design contract completion February 2012
Contract award for construction engineering February 2013
Effective Project Approval 2014-15
Contract award for construction 2014-15
First two vessels to be delivered 2016-17
Delivery of final Offshore Fisheries Science Vessel 2016-17

Note: Construction schedule remains subject to negotiation with the shipyard. Milestones were prepared based on the most current information available at the time of drafting.

Project Outcomes: The Offshore Fisheries Science Vessels project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard. Project outcomes contribute to the Fleet Operational Readiness Program in Fisheries and Oceans Canada's Program Alignment Architecture.

Progress Report and Explanations of Variances: The Offshore Fisheries Science Vessels project was initially approved in October 2005 at an indicative total estimated cost of $187.0 million for the procurement of two vessels. Budget 2007 allocated $92.5 million to the Offshore Fisheries Science Vessels project to procure a third vessel. In 2009, Treasury Board authorized a transfer of $35.5 million from the Offshore Fisheries Science Vessels project to the Offshore Oceanographic Science Vessel project in light of revised funding profiles to procure these vessels. As a result, the Offshore Fisheries Science Vessels project has a revised indicative total estimated cost of $244.0 million.

To date, Treasury Board has granted $55.5 million to the project for the definition and construction engineering phases, including the purchase of Long Lead Items for construction. The Offshore Fisheries Science Vessels project is progressing under Canada's National Shipbuilding Procurement Strategy and as such, project milestones and final cost are subject to negotiations with the shipyard selected for the non-combat work package.

The final vessel is expected to be delivered in February 2017. The project is expected to be completed approximately one year after the last vessel is delivered (at the end of the warranty period).

Industrial Benefits: Canadian industry will benefit from this project. Regional distribution will be determined at contract award.


Offshore Oceanographic Science Vessel

Description: The Offshore Oceanographic Science Vessel project will acquire a replacement vessel for the Canadian Coast Guard's largest science vessel - CCGS Hudson. This vessel was built in 1963 and its replacement is critical to the fulfilment of the Department's science mandate, as well as the mandates of other government departments and agencies. The vessel currently operates on the east coast of Canada.

Project Phase: The design contract for the Offshore Oceanographic Science Vessel has been completed. Work is underway to award the construction engineering contract.

Sponsoring and Participating Departments and Agencies
Sponsoring Department or Agency Canadian Coast Guard, Fisheries and Oceans Canada
Contracting Authority Public Works and Government Services Canada
Participating Departments and Agencies Industry Canada; Environment Canada; Natural Resources Canada; Treasury Board Secretariat; Privy Council Office; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada.

Prime and Major Subcontractor
Prime Contractor Vancouver Shipyards Co. Ltd. (Seaspan) under the National Shipbuilding Procurement Strategy subject to successful conclusion of contract negotiations
Major Subcontractor Design Contractor: STX Canada Marine Inc.

Major Milestone Date
Preliminary Project Approval July 2008
Request for Proposal for Design issued April 2010
Amended Preliminary Project Approval June 2010
Government of Canada announced that the Offshore Oceanographic Science Vessel would be built under the National Shipbuilding Procurement Strategy June 2010
Contract award for design October 2010
Design contract completion November 2011
Contract award for construction engineering 2014-15
Effective Project Approval 2016-17
Contract award for construction 2016-17
Delivery of Offshore Oceanographic Science Vessel 2017-18

Note: Construction schedule remains subject to negotiation with the shipyard. Milestones were prepared based on the most current information available at the time of drafting.

Project Outcomes: The Offshore Oceanographic Science Vessel project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard. Project outcomes contribute to the Fleet Operational Readiness Program in Fisheries and Oceans Canada's Program Alignment Architecture.

Progress Report and Explanations of Variances: The Offshore Oceanographic Science Vessel project was initially approved in July 2008 at an indicative total estimated cost of $108.9 million for the procurement of one vessel. Budget 2007 allocated $92.5 million in additional funding to the Offshore Fisheries Science Vessels project to procure a third vessel. In 2009, Treasury Board authorized a transfer of $35.5 million from the Offshore Fisheries Science Vessels project to the Offshore Oceanographic Science Vessel project in light of revised funding profiles to procure these vessels. As a result, the Offshore Oceanographic Science Vessel project has a revised indicative total estimated cost of $144.4 million.

To date, Treasury Board has granted $70.7 million to the project for the definition and construction engineering phases, including the purchase of Long Lead Items for construction. The Offshore Oceanographic Science Vessel project is progressing under Canada's National Shipbuilding Procurement Strategy and as such, project milestones and final cost are subject to negotiations with the shipyard selected for the non-combat work package.

The vessel is expected to be delivered in 2017-18. The project is expected to be completed approximately one year after the vessel is delivered (at the end of the warranty period).

Industrial Benefits: Canadian industry will benefit from this project. Regional distribution will be determined at contract award.


Polar Icebreaker

Description: The new Polar Icebreaker is expected to be delivered in time for the decommissioning of the CCGS Louis S. St-Laurent. The new Polar Icebreaker will help strengthen Canada's Arctic sovereignty. The vessel will be able to operate in the Arctic in more difficult weather conditions and for a longer period of time - three seasons instead of the current two seasons.

Project Phase: The Polar Icebreaker project is currently in the detailed design stage of the definition phase of the project.

Sponsoring and Participating Departments and Agencies
Sponsoring Department or Agency Canadian Coast Guard, Fisheries and Oceans Canada
Contracting Authority Public Works and Government Services Canada
Participating Departments and Agencies Industry Canada; Treasury Board Secretariat; Privy Council Office; Aboriginal Affairs and Northern Development Canada; Atlantic Canada Opportunities Agency; Western Economic Diversification Canada; Canadian Economic Development; Finance Canada; Environment Canada; National Defence.

Prime and Major Subcontractors
Prime Contractor Vancouver Shipyards Co. Ltd. (Seaspan) under the National Shipbuilding Procurement Strategy subject to successful conclusion of contract negotiations for the construction of the vessel.

STX Canada Marine Inc. for design services.

Major Subcontractors

Lloyd's Register (Classification Society for design approval)

Aker Arctic (hull form design and optimization)
Imtech (electrical engineering design services)
SNC Lavalin (integrated logistics support services)
Indal/Curtiss Wright (ship borne helicopter integration)

Major Milestone Date
Preliminary Project Approval June 2009
Government of Canada announced that the Polar Icebreaker would be built under the National Shipbuilding Procurement Strategy June 2010
Contract award for design November 2011
Effective Project Approval 2015-16
Contract award for construction engineering 2016-17
Contract award for construction 2018-19
Delivery of Polar Icebreaker 2021-22

Note: Construction schedule remains subject to negotiation with the shipyard. Milestones were prepared based on the most current information available at the time of drafting.

Project Outcomes: The Polar Icebreaker project supports the Vessel Procurement and Fleet Renewal objectives of the Canadian Coast Guard and supports the Government's Northern Strategy. Project outcomes contribute to the Fleet Operational Readiness Program in Fisheries and Oceans Canada's Program Alignment Architecture.

Progress Report and Explanations of Variances: Federal budgets 2008 and 2012 allocated funding for the procurement of Canada's first Polar Icebreaker. Total funding of up to $1,297.7 million has been earmarked for the execution of this project.

To date, Treasury Board has granted $36.3 million to the project for the definition phase. The project remains well positioned to succeed having met all major milestones to date. The project is currently in the final phase of design and remains on track to deliver a class approved design package and construction specification in early 2014.

In October 2013, the Government of Canada announced that the Polar Icebreaker would be built by Vancouver Shipyards, following the completion of the Royal Canadian Navy's Joint Support Ships, under the National Shipbuilding Procurement Strategy. As a result, project milestones have been re-baselined and in 2014-15, the Polar Icebreaker project will enter a period of reduced activity while awaiting the availability of shipyard resources to begin and advance the next stage of the work. It is currently anticipated that the project will ramp up to full activity in 2015-16 to begin the construction engineering phase, in preparation for the start of construction, currently planned for late 2018.

The project is progressing under Canada's National Shipbuilding Procurement Strategy and as such, project milestones and final cost are subject to negotiations with the shipyard selected for the non-combat work package.

The vessel is currently expected to be delivered in 2021-22. The project is expected to be completed approximately one year thereafter (after post-delivery performance trials and at the end of the warranty period).

Industrial Benefits: Canadian industry will benefit from this project. Regional distribution will be determined at contract award. Canada's Policy on Industrial and Regional Benefits, as well as the Value Proposition provisions of the umbrella agreement with Vancouver Shipyards under Canada's National Shipbuilding Procurement Strategy applies to the construction phase of this project.