Foreword Foreword It is with pleasure that we present the Canadian Armed Forces and Department of National Defence 2016 Defence Acquisition Guide (DAG). This guide supports the defence industry in delivering equipment and services to the Canadian Armed Forces. The intent is to help Canadian industry anticipate, in a systematic way, Defence’s short, medium and long-term procurement requirements and to enable you to be positioned to compete for future Canadian defence procurement opportunities. The majority of the initiatives and projects in this guide are part of Defence’s regular replenishment cycle and involve upgrades and replacements to existing capabilities. Defence must keep pace with new technologies, but also ensure old and new systems can work together. Providing our personnel with the tools to meet the ever-changing environments in which they work ensures the Canadian Armed Forces are ready to respond when needed in Canada and internationally. We must ensure our equipment remains compatible with other nations with whom we frequently work. The Department of National Defence has launched public consultations as part of an open and transparent dialogue with Canadians and key stakeholders, including industry, towards a comprehensive review of Canada’s defence policy. Over the next few months, Defence will engage Canadians to discuss: the main challenges to Canada’s security, the role of the Armed Forces in addressing current threats and challenges, and the resource and capability requirements to carry out the Armed Forces’ mandate. All Canadians are encouraged to provide their input towards shaping Canada’s new defence policy before the end of July 2016. We expect to complete our internal work by the end of the calendar year and a formal policy document to be published in early 2017. In parallel, the 2017 DAG will be reworked and will reflect decisions taken to ensure that the Department of National Defence and the Canadian Armed Forces are positioned to confront new threats and challenges in the years ahead. National Defence takes the stewardship of public resources very seriously. At its core, the DAG is a key mechanism of open, transparent defence procurement planning for the benefit of Canadian businesses. John Forster

Deputy Minister of National Defence General J.H. Vance

Chief of the Defence Staff

Executive Summary Executive Summary The Defence Acquisition Guide (DAG) is a key component of the Government of Canada’s Defence Procurement Strategy and is designed to provide greater transparency on projected defence capability requirements of the Canadian Armed Forces over the next 20 years. The DAG 2016 has been refreshed to include both new and ongoing initiatives, as well as taking into account the feedback received from industry. The DAG 2016 is made up of 236 initiatives, both new and ongoing. It includes 38 new initiatives, and 37 initiatives that were in DAG 2015 that are no longer included in DAG 2016. The reasons for not including initiatives range from the procurement process having been completed, an initiative has merged with another initiative, or the initiative is being managed through existing procurement mechanisms. DAG 2015 will remain available for reference as an archived document. Any initiatives that have been added or changed are reflected in DAG 2016. Canadian Special Operations Forces Command (CANSOFCOM) usually procures equipment and services through minor projects that are below the thresholds established for inclusion in the DAG. In an effort to further effective engagement between industry and CANSOFCOM for initiatives outside of the normal DAG parameters, a dedicated webpage that describes CANSOFCOM’s “areas of interest” (or capability portfolios) and a description of specific capabilities requirements is included. This provides industry with a conduit through which a spectrum of capabilities in minor projects can be discussed.

Introduction Introduction The 2016 DAG ensures industry and potential bidders are aware of the Department’s defence capability requirements and allow for them to make informed research and development investments and strategic partnering decisions based on these anticipated needs. As a practical limitation of the DAG, capability requirements beyond a 5-year period have less certainty and hence, are less defined. The majority of the projects in this publication do not have formal authority from the Government and remain subject to change in scope, cost and schedule, including termination without any further explanation or liability. In this regard, the document will also be substantially refreshed every three years to remain relevant as strategic circumstances evolve, new technologies emerge and priorities are adjusted to reflect the changing needs of the Government of Canada and the Canadian Armed Forces. The DAG begins with a synopsis of Canadian defence policy which provides the context and strategic direction that orients future Defence planning. An overview of capability based planning is then provided to explain the methodology the Canadian Armed Forces uses to determine its capability requirements. To ensure industry is well aware of the various stages through which the Department of National Defence projects must transit, an overview of its project approval process has also been included. The potential capability requirements and associated procurements are arranged into five groups: Naval, Land, Aerospace, Joint and Services. Related details include the project’s or service’s objective, and a preliminary estimated cost of acquisition. The cost estimates are of a rough order of magnitude and therefore there is potential for large variability between cost estimates and actual costs. Each proposal summary provides an anticipated timeline of key milestones and includes an indication of when the project will be reviewed by Government for expenditure authority (implementation approval) and when the Request for Proposal could be released. A point of contact is also provided. Longer term projects have less detail as requirements; costs, schedule and risk are not yet well defined. The DAG will be updated with new projects/proposals annually. It may be determined that that some capabilities no longer fit the Canadian Armed Forces strategic needs and could be removed in future releases. The DAG is designed to assist industry by providing the Department of National Defence’s procurement plans for the future. In our commitment to maintain early and continuous engagement with industry, feedback on the DAG is encouraged and welcomed to improve future editions. Subject to Government of Canada expenditure authority, the DAG provides context on potential Department capability initiatives and provides greater transparency concerning possible areas of investment by the Government of Canada. With this information, companies should be better positioned to take advantage of, and have an opportunity to comment on these potential investments well before they reach maturity. Further information regarding Government of Canada tenders can be found on the Buyandsell.gc.ca Web site. Please email us to provide your recommendations for the improvement of the DAG.

Canadian Defence Policy Canadian Defence Policy Over the coming year, National Defence and the Canadian Armed Forces will engage in a defence policy review. This process will be open and transparent, and involve consultations with Canadians from across the country, including industry. The outcome of this review will set the overall strategic direction upon which future capability development efforts will rest. While there could be changes to the current direction, the Department of National Defence and Canadian Armed Forces will continue to have an enduring responsibility to defend Canada, defend North America and contribute to international peace and security.

Capability Based Planning Capability Based Planning In order to meet Government expectations, the Canadian Armed Forces need to continue to adapt to a dynamic and uncertain environment and to acquire and maintain an appropriate range of capabilities. The Department of National Defence employs capability based planning to analyze, assess and integrate future capability requirements in order to be prepared for success in the future operating environment. Capability based planning is ultimately about establishing context and choice with respect to long-term strategic investment decisions as it provides the analysis and logic necessary to assess and identify future capability requirements. The capability based planning process is a three year cycle, divided into three main phases in order to answer three simple questions: what do we think we will need to do; how well do we think we can do it now; and, what do we need to change to perform better. Capability based planning is a process and a systems-based strategic planning tool that takes a broad look across the entire strategic Canadian Armed Forces capability portfolio, defines possible future requirements based on trends and assesses what capability areas may be considered for investment, divestment or sustainment decisions. The identified investment areas are then subject to a rigorous analysis and screened for a list of capability options. The approach identifies a military requirement to go into the Department of National Defence’s project approval process.