Madam Chair, I would like to take this opportunity to speak to one of Public Services and Procurement Canada's most important responsibilities. This department ensures the ongoing delivery of defence procurement so that those who serve us so bravely have the equipment they need to carry out their important work. We are guided by “Strong, Secure, Engaged”, our government's defence policy, which sets out clear direction on priorities over a 20-year period. I want this committee to know that we have been making progress when it comes to defence procurement in support of policies we believe in and will continue to do so.
In late February, when Russia illegally invaded Ukraine, the world rapidly changed, and countries around the world, including Canada, had to rethink defence postures. Since then, our government has supported Ukraine with concrete actions, which include implementing severe economic sanctions against Russia and providing military equipment to the Ukrainian people as they defend courageously their sovereignty, freedom and independence.
Russia's actions have been a wake-up call for the world's democracies, reminding us that we must stand together in defence of the values we share, and that a strong modern military capacity is needed for the protection of all sovereign nations. Budget 2022 provided more than $8 billion in defence spending over five years, which is on top of the already planned increases associated with “Strong, Secure, Engaged”.
I want this committee to know that PSPC stands ready as we reassess our priorities in the face of new threats, and we remain focused on moving forward on defence procurement. That includes holding open competitions whenever possible because that is the best way to get the right equipment at the right price and with the most benefits to Canadians. Above all else, we need to make sure that our Armed Forces have what they need to get the job done. Allow me outline some of our achievements on this front.
When it comes to air defence, we are delivering. That includes our ongoing work to purchase new fighter jets, which represents the most significant investment in the Royal Canadian Air Force in more than 30 years. This is a highly complex procurement and we have delivered on our promise to Canadians to hold an open, fair and truly competitive process. Our goal from the beginning has been to ensure that we are getting the right aircraft at the right price while maximizing economic benefits to Canada. We worked with potential suppliers and foreign governments early and often to obtain feedback on our process and Canada's needs.
In 2019, we released a formal request for proposals to eligible suppliers. Three of those suppliers submitted proposals, which were rigorously assessed against elements of capability, cost and economic benefit to Canada by government experts. In December of 2021, the Government of Canada announced that two bidders remained eligible in the process. Earlier this year, we announced that, after careful consideration, the Government of Canada had decided to enter in a finalization phase with the top-ranked bidder. This is an important milestone in the process and means we are on track, as we aim to award a contract for 88 new fighter jets later this year, with the potential of receiving our first jets as early as 2025.
We are making progress in many other areas as well. For example, we also have an active request for proposals to acquire a remotely piloted aircraft system, and we are aiming to award a contract in two years.
To support our troops on land, we are moving forward on the logistics vehicle modernization project, which is meant to improve the light and heavy vehicle capabilities of the Canadian Armed Forces. We anticipate awarding a contract by 2023. We are engaging with industry to move forward on a number of purchases, including our next generation of fighting vehicles and our enhanced recovery capability projects, to support our Armed Forces. These are only a few examples.
I would like to highlight the important contribution of the ITB policy. The policy requires that companies invest in Canada the equivalent of 100% of their contract value. That means these defence procurements are making immense contributions to jobs, innovation and economic growth across the country.
When it comes to supporting marine-related procurements, which play an important role in defending this country, we have essentially rebuilt the shipbuilding industry in Canada through the national shipbuilding strategy. This is Canada's long-term plan to renew the fleets of the Royal Canadian Navy, as well as the Canadian Coast Guard, and it is helping to create and sustain good jobs right here at home.
More than a decade following the launch of the strategy, we have seen five large ships and numerous small vessels delivered. We have also seen the completion of dozens of ship repair, refit and maintenance projects at yards across Canada. To date, more than $20 billion in new contracts has been awarded across Canada, with nearly 18,000 jobs created or maintained annually.
Of course, we must acknowledge that strains on supply chains and the rising cost of materials have put pressure on many of our projects across the board, but I can say that Canada's marine industry is facing those challenges head on and we continue to make progress. This past year, a second Arctic and offshore patrol ship was delivered to the Royal Canadian Navy and a third was launched into the water, with work continuing on another two ships. Design work also started on the future polar icebreakers and multi-purpose vessels. These are only a few examples.
Construction also continued on the navy's first joint support ship, as well as design work on the future Canadian surface combatants. That project is the biggest of all of our shipbuilding projects, a multi-billion dollar endeavour that will span the next 20 to 25 years, and the resulting ships will form the backbone of our Royal Canadian Navy. Several repair, refit and maintenance contracts were also awarded on behalf of the Coast Guard and navy, generating hundreds of jobs and significant economic benefits to communities across the country.
Hard-working Canadians at our official partnership yards, Seaspan on the west coast and Irving on the east, have been doing their part and are keeping our projects going. This past year, we have also made progress in the multistep process to select a third official shipyard under the national shipbuilding strategy and, of course, many smaller shipyards and numerous suppliers across Canada are all playing a role in our revitalized shipbuilding industry. For those who serve in the air, on the land or on the sea, we are delivering.
Canada must always be ready to respond to evolving global circumstances to ensure that we are meeting our international obligations and that the Canadian Armed Forces are prepared to fulfill the missions we ask of them. Our government is committed to immediately reinforcing Canada's national defence. PSPC stands ready to build upon our achievements and to further bolster the capabilities of our forces. Canadians take great pride in the men and women who serve, and nothing is more important than making sure that they have what they need to keep Canada safe and secure.
Recent events have shown that we continue to live in a dangerous world where some nations are willing to flout international law by assaulting and even invading other nations without cause. It is a world where the strong will sometimes use their military advantage to take what they want by force. This is not the world that we want to live in or strive to create, but it is today's reality. Canada has been fortunate not to be the victim of such an attack in recent history, but Canada has always stood up for what is right and has defended its partners and allies across the globe.
Two things are essentially required to be able to do this: brave men and women and the proper equipment. The Canadian Armed Forces is stocked with courageous Canadians ready to defend this country and its values. It is the government's responsibility to provide the adequate military equipment to these brave men and women so that when we do make this grave request of them, they will be as safe as possible and have the right tools for the job. This means everything from boots and helmets to jets and ships.
Public Service and Procurement Canada, in partnership with the Department of National Defence, has been procuring a range of equipment, arms, vehicles and more for our military. These are often complex procurements with many moving parts. We have been committed to open competitions and assuring that these contracts support Canadian industries as much as possible.
The workers in the shipbuilding and other defence industries are giving their best for Canada. The men and women of the Canadian Armed Forces do the same every day. The same is expected from the Canadian government.
Could the minister please detail some of the important investments this government has made in the Canadian Armed Forces based on the “Strong, Secure, Engaged” defence policy in order to provide our military men and women with the best equipment and keep Canadians safe?
