Thank you very much, Mr. Chair.
Good afternoon. My name is Simon Page and I am pleased to be with you today in my role as assistant deputy minister of the defence and marine procurement branch at Public Services and Procurement Canada.
The Minister of PSPC's 2021 mandate letter includes a commitment to “Ensure the ongoing delivery of defence procurements in support of Canada's Defence Policy, 'Strong, Secure, Engaged'.”
We work very closely with DND and our other federal partners to ensure that we provide the acquisitions support needed to deliver the right equipment and services to the Canadian Armed Forces in a timely manner. PSPC chairs the interdepartmental governance committees established under the defence procurement strategy to bring together all the key federal players to transparently consider trade-offs related to capabilities, cost, the timely delivery of equipment and services, and economic benefits to Canada.
Defence procurement is very complex and multi-faceted, and the defence procurement apparatus is making sound progress at addressing this complexity and delivering on multiple air defence procurements. Despite the challenges, we are making progress on key air defence procurements and solicitation processes. For example, we have recently achieved important milestones with respect to the future fighter capability project procurement process. We continue to work towards contract award for the future fighter capability project this year.
In February 2022, the final requests for proposals were released for the future aircrew training program and the remotely piloted aircraft system, RPAS, projects. Canada has also released a request for information for the Canadian multi-mission aircraft this past February. Canada is also advancing work to replace its CC-150 Polaris fleet with a strategic tanker transport capability. The contract award for full implementation is anticipated to take place in 2022-23.
In 2021, PSPC, on behalf of the Department of National Defence, awarded two contracts, valued at $186 million, tax included, for the purchase of three new tactical control radars and their in-service support for an initial period of five years.
Finally, in 2022, PSPC, on behalf of DND again, awarded a contract to an Inuit-owned company for the operation and maintenance of the North Warning System. The contract is for an initial period of seven years and is valued at $592 million. The contract also includes four two-year option periods for a total estimated value of $1.3 billion.
As we make progress on major projects, defence procurement continues to innovate to meet the needs of the Canadian military.
Until such time as new fighters are delivered and fully operational, there is a need to extend the life of the CF-18 aircraft. The Hornet extension project, HEP, will provide upgrades to avionics and mission support systems for up to 94 aircraft in order to meet new regulatory requirements and keep pace with allied military interoperability, and will provide combat capability upgrades for 36 aircraft.
To ensure there is no capacity gap until the new fighters are delivered and are fully operational, the interim fighter capability project acquired 18 Australian F/A-18 aircraft, associated spares and equipment to supplement the CF-18 fleet in Canada. All aircraft deliveries were completed in 2021. To date, six aircraft have been introduced into service after some minor modifications and it is expected that all aircraft will be in service by the end of 2022.
Of note, we are making increased use of the phased bid compliance process in projects like the future fighter capability project and the future aircrew training program to foster competition and best value to Canada by increasing the potential number of compliant bids, as PSPC continues to support the streamlining of defence procurement processes and DND in the execution of “Strong, Secure, Engaged”.
That concludes my opening remarks. Thank you all, once again, for providing me with this opportunity to speak with you this afternoon.