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Annex A: CCG Capital Expenditures

Experience has consistently shown that despite our best efforts, external factors often lead to project delays. Experience has also shown that because of the nature of our operations, there is a relatively long lead time for implementing capital projects. These two factors, combined with our desire to minimize capital budget (Vote 5) lapses, have led CCG’s Investment Management Board to overprogram its capital vote by $9.2 million for 2010-2011.

The level of overprogramming is based on a number of factors, including CCG’s experience with the various types of projects planned, communication with industry, communication with Public Works and Government Services Canada (PWGSC), and our internal capacity to implement the proposed investments. This approach will ensure that CCG proactively manages its capital budget and has high-priority investments ready to absorb the in-year slippage that inevitably occurs on large investment projects. The level of overprogramming is reviewed annually in the light of proposed investments so that the level of overprogramming balances the risk of funds lapsing and against the risk of having to delay expenditures to stay within budget.

The Canadian Coast Guard uses a wide range of equipment and other physical assets as it carries out its day-to-day activities. For example, search-and-rescue activities typically require rescue vessels or helicopters, as well as communications equipment; similarly, moving goods safely through Canadian waters depends on having reliable aids to navigation and may require the services of icebreakers.

The infrastructure required to support CCG activities falls into two broad groups:

  • Equipment and other moveable assets (Program infrastructure assets). These include information and operational systems, communications systems and equipment and infrastructure, communication and infrastructure such as radio towers, and radar sites, as well as aids to navigation such as buoys and beacons and environmental response equipment. These assets have an estimated replacement value of $1.6 billion.
  • Fleet assets. These assets include 116 vessels — search and rescue lifeboats, fisheries science vessels, patrol vessels, light and heavy icebreakers, etc. — and 23 helicopters. These assets have an estimated replacement value of $12.5 billion.

These assets need to be systematically maintained and eventually replaced for CCG to fulfill its mandate. This requires a long-term approach and significant financial resources, as capital expenditures account for a comparatively high percentage of our expenditures.

Capital expenditures for equipment and other moveable assets are grouped in terms of the CCG service involved; CCG capital expenditures for fleet assets are grouped in terms of the type of capital expenditure involved.

CCG sources of funding for capital expenditures include the following:

  • Ongoing reference levels, used for replacing or extending the life of critical assets.
  • Budget 2003 funding of an additional $47 million per year for the refurbishment of CCG assets. CCG has increased this budget by $23 million in refit funding, which was converted from the operating to the capital vote to consolidate all refit and refurbishment funding in one area.
  • Transformational Plan funding of $16 million per year, received in 2006.
  • Spending slippage related to some projects that may be carried forward into subsequent years.
  • Major Crown Projects (MCP) funding. This is funding for new vessels, including mid-shore and off-shore vessels, as well as air cushion vehicles.
  • Economic Action Plan funding of $175 million, provided in Budget 2009 over a two-year period.

As part of the new CCG Integrated Investment Plan (IIP), all capital funding has been consolidated into a single CCG Major Capital Budget. This total budget has been divided into A-Base Budget envelopes and B-Base Budget envelopes. The total CCG capital budget for 2010-2011 is $287.2 million. 

The tables in this annex indicate the planned project spending for 2010-2011. Projects currently underway are listed first, followed by those approved in principle or awaiting funding.

Note: The figures in the following pages may fluctuate throughout the fiscal year, depending on the availability of equipment, repair facilities, and funding; for example, a Transport Canada inspection may trigger an emergency repair of a vessel, or a communication service or equipment related to search and rescue operations on a vessel or helicopter may break down and require immediate repair.

Summary
Type of AssetExpenditure by PAA Sub-ActivityExample of Expenditure

Planned Spending
2010-2011

(millions of dollars)

Equipment and Other Moveable Assets

(Program infrastructure assets)

Aids to Navigation

Refurbishing/modernizing/replacing shore-based and floating aids to navigation

11.3

Marine Communication and Traffic Services

Upgrading various communication
equipment at MCTS Centres and remote sites

19.8

Environmental Response Services

Investing in Environmental Response equipment

0.7

Maritime Security

Investing in critical surveillance and tracking systems

6.0

Waterways Management Services

Restoring the Canadian portion of the Great Lakes Connecting Channels

0.9

Lifecycle Asset Management Services

Investing in a national operational network for CCG’s operational systems/applications

3.1

Fleet Assets

Coast Guard Fleet Operational Readiness

Acquisition or replacement

Acquiring new vessels

125.1

Major repairs, refits, and refurbishments

Refitting and refurbishing vessels and helicopters

86.2

Vessel life extension

 

Extending vessel life

26.0

System enhancement

Modernizing simulators

17.3

Total

296.4 



Details
ProjectDescriptionTotal Estimated Cost (TEC)
(millions of dollars)
TEC Used2010-2011 ForecastTEC Remaining
Aids to Navigation
Projects Under Way      
Minor Fixed Aids Site Replacement/Modernization (Phase 2).  Replace, remove, relocate, redesign, and/or refurbish many critical short-range fixed aids to navigation and associated site infrastructure in all CCG regions to address high-risk items associated with structure failure and health and safety codes. 18.5 14.4 3.9 0.2
Major Fixed Aids Site Refurbishment/Modernization (Phase 2).  Replace, remove, and/or refurbish many of the short-range major structures supporting shore-based fixed aids to navigation. Make a strategic investment in replacing/upgrading navigation aids with modern equipment involving the use of new technology. 18.4 14.3 4.1 0.0
Floating Aids Refurbishment/Modernization (Phase 2).  Replace or refurbish floating aids to navigation and associated equipment to address codes and standards, health and safety, due diligence, and potential departmental liability issues in all regions. 17.5 12.2 3.4 1.9
Projects Approved in Principle, Awaiting Funding
Differential Global Positioning System (DGPS) Refurbishment.  Replace and/or refurbish electronic equipment and site infrastructure at DGPS sites across Canada. 30.5 0.0 0.0 30.5
Minor Fixed Aids Site Refurbishment/Modernization (Phase 3) .  Replace, remove, relocate, redesign, and/or refurbish many critical short-range fixed aids to navigation and associated site infrastructure in all CCG regions to address high-risk items associated with structure failure and health and safety codes.  17.5 0.0 0.0 17.5
Major Fixed Aids Refurbishment/Modernization (Phase 3).  Replace, remove, and/or refurbish many of the short-range major structures supporting shore-based fixed aids to navigation. Make a strategic investment in replacing/upgrading navigation aids with modern equipment involving the use of new technology.  16.4 0.0 0.0 16.4
Floating Aids Refurbishment/Modernization (Phase 3).  Replace or refurbish floating aids to navigation and associated equipment, in many cases involving new technology.  18.0 0.0 0.0 18.0
Helicopter Landing Pads at Aids to Navigation Sites.  Construct approximately 86 new helicopter landing pads at priority identified sites in Newfoundland and Labrador to ensure safe access to established aids to navigation locations.  7.2 0.0 0.0 7.2
Marine Communication and Traffic Services
Projects Under Way      
MCTS Communications Control System (CCS) Equipment Replacement.  Replace Communications Control System (CCS) equipment at 22 MCTS Centres, along with the associated consoles, radio remote control equipment at remote sites, and two simulators at the new technical training facilities required at the CCG College, in Sydney, NS. Use of the latest digital technology will enable multifunction switching and simultaneous communications on different radio frequencies. 47.8 3.7 3.2 40.9
MCTS Communication Towers Refurbishment (Phase 2).  Refurbish to baseline condition those MCTS communication towers identified as the highest priority in April 2006. The towers identified are those that do not meet current operational requirements or are at high risk of failure due to rust-out and overloading. 18.7 14.1 3.8 0.8
MCTS Communication Site Refurbishment (Phase 2).  Refurbish existing MCTS communication sites used by CCG across Canada to baseline condition. Work includes replacing or refurbishing equipment, buildings, trailers, roads, and transmission lines, and replacing fuel tank systems and spill containment structures and physical security to meet national and regional standards. 18.6 15.9 2.7 0.0
Communications Systems Refurbishment (Phase 2).  Refurbish communications systems and associated infrastructure, including MF-HF receivers and transmitters, VHF-DF antenna systems and satellite links, radars, UPS, and test infrastructure in all regions. It also includes consolidating the Prince Rupert Microwave Network by adding two microwave sites and includes four microwave links. 17.9 7.3 3.8 6.8
Very High Frequency (VHF) Radio Refurbishment.  Refurbish to baseline condition the MCTS very high frequency (VHF) radios, in all regions, that are obsolete or at risk of failure. 17.6 16.0 0.9 0.7
Arctic Telecommunication Towers Refurbishment.  Bring the Arctic telecommunications network/infrastructure back to baseline condition, by replacing obsolete HF, MF, VHF, UHF, and satellite communications equipment. 16.7 14.2 1.4 1.1
MCTS Replacement of the Vessel Traffic Operator Support System (VTOSS) in the Pacific Region.  A version of the National Integrated Information System on Marine Navigation (INNAV) that includes the interface for the Automatic Identification System (AIS) will be upgraded to incorporate the essential operational functionalities that are required by the Pacific Region. This upgraded version of INNAV, as well as the required new equipment, will be implemented in the Pacific Region only. 4.7 3.6 1.1 0.0
MCTS Tofino Radar Refurbishment.  Replace the existing “dark room” radar displays with digitized daylight displays, and complete other minor renovations and infrastructure modifications to enable daylight operations at the Tofino MCTS Centre in the Pacific Region. 3.0 2.8 0.2 0.0
Very High Frequency (VHF)/Digital Selective Calling (DSC) in the St. Lawrence and Great Lakes Basin.  Install shore-based Global Marine Distress and Safety System (GMDSS) VHF/DSC at select MCTS Centres and Remote Control Outlets (RCOs) along the Great Lakes (Central and Arctic Region) and the St. Lawrence River (Quebec Region). 8.5 7.9 0.3 0.3
MCTS Transmitter/Communication Systems Refurbishment (Phase 3).  Refurbish MCTS transmitters and electronics. Project includes creation of Technical Solution Centres in each region. 17.7 5.1 2.2 10.4
Projects Approved in Principle, Awaiting Funding
MCTS Information Logging System.  Replace the outdated Message Data System and automatic message broadcasting system (MDS/NAVTEX) with a new MCTS Logging System at 22 MCTS Centres. 4.6 0.0 0.3 4.3
Very High Frequency-Direction Finding (VHF-DF) System Refurbishment.  Refurbish to baseline condition the very high frequency direction finding system, in all regions, that are obsolete or at risk of failure. Additional VHF-DF coverage may also be provided. 10.0 0.0 0.0 10.0
MCTS National Vessel Traffic Management Information System (VTMIS) Replacement.  Replace the National Information System on Marine Navigation (INNAV) by a VTMIS that would integrate all Maritime Services-approved capabilities, mandates, and data requirements.  39.2 0.0 0.0 39.2
MCTS Communication Towers Refurbishment (Phase 3).  Refurbish to baseline condition those MCTS communication towers identified as the highest priority. The towers identified are those that will be or are at high risk of failure in the near future due to rust-out and overloading.  18.1 0.0 0.0 18.1
MCTS Communication Site Refurbishment (Phase 3).  Refurbish existing MCTS communication sites used by CCG across Canada to baseline condition. Work includes replacing or refurbishing equipment, buildings, trailers, roads, and transmission lines, and replacing fuel tank systems and spill containment structures and physical security to meet national and regional standards.  18.1 0.0 0.0 18.1
Environmental Response Services
Projects Under Way
Arctic Environmental Response Equipment (Health of the Oceans - HoTo).  Invest in environmental response equipment for the Coast Guard’s Arctic Environmental Response capability. 2.0 1.3 0.7 0.0
Projects Approved in Principle, Awaiting Funding
Environmental Response (ER) Equipment Refurbishment..  Refurbish CCG ER equipment by returning the assets to baseline condition. 17.9 0.0 0.0 17.9
Maritime Security
Projects Under Way      
Automatic Identification System (AIS).  Implement a national VHF AIS Service and a Long Range Identification and Tracking Service in Canada to enhance marine security and improve the safety of navigation in Canada. 25.0 16.5 6.0 2.5
Waterways Management Services
Projects Approved In Principle, Awaiting Funding
Restoration of the Great Lakes Connecting Channels.  Restore the charted depths and full design width of the Canadian portion of the channels on the Lower Detroit River (e.g., the Livingstone and Amhertsburg Channels); Lake St. Clair area (e.g., St. Clair River, South East Bend, and Lake St. Clair channels); and St. Mary’s River. This will allow ships on the Great Lakes/St. Lawrence Seaway System unrestricted, safe, and efficient passage between the upper and lower Great Lakes. 19.0 0.0 0.9 18.1
Lifecycle Asset Management Services
Projects Under Way      
Configuration Management and Technical Data Management System (CMTDMS).  Develop and implement a system to support enhanced material acquisition and lifecycle management through a nationally managed information infrastructure. 10.4 1.1 0.8 8.5
MAINTelligence Infrastructure Refurbishment.  Refurbish and standardize the MAINTelligence automated application system, which serves as the repository for the inventory information necessary to enable the national lifecycle management of the Coast Guard’s vessel-based assets. MAINTelligence is currently operating on 52 large CCG vessels and at the CCG College.  2.8 1.4 1.4 0.0
Heavy Equipment Refurbishment.  Refurbish and replace the heavy equipment required for the delivery of CCG program services, including 30-ton mobile cranes, mobile heavy-lifting equipment, and transportation vehicles at CCG bases. 18.5 1.0 0.1 17.4
Projects Approved in Principle, Awaiting Funding
Asset Management System (AMS) “Bridge”.  Plan, design, and implement the information technology infrastructure and application components that will be necessary to integrate the vessel-based asset maintenance information database (MAINTelligence system application) and the shore-based asset maintenance information database (MAXIMO system application).  This will provide complete and comprehensive management information regarding the maintenance of both shore-based and large vessel-based CCG assets; it will also enable the Lifecycle Asset Management Services program to better deliver its services. 1.9 0.0 1.0 0.9
CCG Operational Network (OpNet).  Develop and implement a national operational network, including the required hardware and related software that will operate all of the existing CCG operational systems/applications on one standard national network.  7.5 0.0 0.0 7.5



Project Description Total Estimated  Cost
(millions of dollars)
TEC Used 2010-11 Forecast TEC Remaining
Coast Guard Fleet Operational Readiness
Budget 2009 Economic Action Plan
In its 2009 Budget, the Government of Canada announced that it was providing CCG with $175 million as part of the government-wide Economic Action Plan. The specific planned projects are as follows:
Projects Under Way
Acquisitions
Near-shore Fisheries Research Vessels        
  • Near-shore Fisheries Research Vessels (2).  Acquire two 22-metre Near-shore Fisheries Research Vessels to replace CCGS Opilio and CCGS Calanus II.
23.9 1.5 18.7 3.7
  • Near-shore Fisheries Research Vessels (1).  Acquire one 25-metre Near-shore Fisheries Research Vessel to replace CCGS J.L. Hart. 
16.1 1.3 14.7 0.1
SAR Lifeboat Replacement Plan        
  • Five 47-foot Motor Lifeboats (Cape Class)
20.0 8.0 12.0 0.0
Small Craft Acquisition Plan (SCAP)        
  • 86 Small Craft: Fast Rescue Craft (FRC), Rigid Hull Inflatable (RHIB), and small work boats
14.5 8.8 4.6 1.1
Environmental Response (ER) Barges        
  • Environmental Response Barges
10.0 2.2 6.1 1.7
Vessel Life Extensions        
CCGS Bartlett 22.0 16.6 3.6 1.8
CCGS Tracy 20.0 11.7 2.2 6.1
CCGS Limnos 10.6 8.5 1.9 0.2
CCGS Cape Roger 12.6 2.0 10.2 0.4
CCGS Tanu 12.6 0.4 7.7 4.5
Refit – Ships and Helicopters        
  • Accelerated Vessel Refits (35)
38.0 19.9 16.6 1.5
Acquisitions and Replacements
Projects Under Way        
Offshore Fisheries Science Vessels (OFSV)        
  • Offshore Fisheries Science Vessels (OFSV).  This initiative will replace four (4) vessels currently in use by CCG: CCGS Alfred Needler or CCGS Wilfred Templeman, CCGS W.E. Ricker, and CCGS Teleost. 
244.0 6.3 2.7 235.0
Offshore Oceanographic Science Vessel (OOSV)        
  • Offshore Oceanographic Science Vessel (OOSV).  This initiative will replace one (1) vessel currently in use by CCG: CCGS Hudson.
144.4 1.0 2.6 140.8
Mid-shore Patrol Vessels (MSPV)        
  • Mid-shore Patrol Vessels (MSPV).  Nine (9) Mid-shore Patrol Vessels will be constructed and delivered for use in CCG’s Maritime Security program and Fisheries and Aquaculture Management’s Conservation and Protection program.
227.0 25.8 37.3 163.9
Air Cushion Vehicle (ACV)        
  • Air Cushion Vehicle (ACV).  This initiative will replace CCGS Penac at the Canadian Coast Guard Sea Island Hovercraft Base in Richmond, British Columbia. It will provide for ongoing search and rescue coverage in the area, allowing CCG to continue fulfilling its mandate and maintain current levels of service.
27.3 0.0 10.0 17.3
Near-shore Fisheries Research Vessels        
  • CCGS Shark Replacement. Construct and deliver to Central and Arctic Region a vessel to meet Science program requirements as a replacement for CCGS Shark.
5.9 3.6 0.4 1.9
  • CCGS Pandalus III  Construct and deliver to Maritimes Region a vessel to meet Science program requirements as a replacement for CCGS Pandalus III.
4.4 3.4 0.9 0.1
Small Craft Acquisition Plan (SCAP)        
  • §   SCAP (all regions)
15.0 10.0 5.0 0.0
Polar Icebreaker        
  • Polar Icebreaker.  This acquisition, announced in Budget 2008, will build a new vessel to support CCG's icebreaking mandate. 1
800.0 5.9 9.9 784.2
Major Repairs, Refits, and Refurbishments
Projects Under Way
NCSP – Phase II        
  • Refurbishment – Air Cushion Vehicles
3.3 2.4 0.4 0.5
  • Refurbishment - Icebreakers
13.7 7.2 3.3 3.2
  • Refurbishment – Light Icebreakers
8.8 3.0 2.7 3.1
  • Refurbishment – Marine Service Vessels
8.5 7.9 0.6 0.0
  • Refurbishment – Patrol Vessels
8.4 7.4 1.0 0.0
  • Refurbishment – Program Boats
8.4 2.6 0.7 5.1
  • Refurbishment – Research Vessels
4.5 0.5 0.4 3.6
  • Refurbishment – Offshore Research Vessels
9.1 1.5 0.9 6.7
NCSP – Phase III        
  • Refurbishment – Marine Service Vessels
8.3 0.0 2.5 5.8
  • Refurbishment – Patrol Vessels
8.2 0.0 1.3 6.9
Refit Vessels (5 Regions) 50.7 0.0 40.6 10.1
Refit Helicopters.  Undertake the repair and maintenance necessary to maintain helicopter safety and capability and ensure that the helicopter fleet can continue to be operational. 7.1 0.0 7.1 0.0
Projects Approved in Principle, Awaiting Funding        
Pierre Radisson.  Refurbish the propulsion system to ensure that the vessel remains operational and can meet program requirements. 10.5 0.0 5.0 5.5
Vessel Maintenance Management        
Project Under Way        
Vessel Maintenance Management Review (VMMR).  Following completion of a Vessel Maintenance Review (VMMR) and CCG Management Board approval, CCG will invest in additional technical and marine engineering resources to support the strengthening of CCGs National Vessel Maintenance Management (VMM) Framework by establishing new shore-based teams and staffing select positions ashore and aboard vessels to close critical gaps in capability. 32.5 0.0 3.2 29.3
         
Projects Approved in Principle, Awaiting Funding        
Specialty Vessel Replacement (CCGS A.H.Chevarie).  Acquire a newly designed and constructed Specialty Vessel to maintain the level of service required to meet program requirements. 4.4 0.3 0.2 3.9
Near-shore Fisheries Research Vessel (CCGS Shamook Replacement).  Acquire a Near-shore Fisheries Research Vessel to replace CCGS Shamook that can perform the required missions more efficiently and effectively. 16.0 0.6 0.0 15.4
Vessel Life Extensions
Projects Under Way
CCGS John P. Tully. Undertake VLE on CCGS John P. Tully, a 69-metre Offshore Fisheries Science Vessel that is 21 years old. 15.8 15.4 0.4 0.0
CCGS Griffon 12.6 0.4 0.0 12.2
System Enhancements
Project Under Way
Halon 1301 Replacement Program (final year of project).  Acquire and install ozone-safe fire-fighting systems to replace the existing Halon 1301 systems on all CCG vessels within all Coast Guard regions to meet EC regulations by 2010. 10.4 10.2 0.2 0.0
Integrated Navigation Systems.  Procure and install a combined Automatic Identification System, DGPS, and Electronic Navigational Chart System on selected DFO/CCG vessels. 10.2 4.6 1.2 4.4
E-Mail Aboard Ships (final year of project).  Deliver the capability for all shipboard personnel on 39 designated vessels to receive personally addressed e-mail from any other person or agency ashore; also provide intranet and Internet access. 9.1 9.0 0.1 0.0
iFleet.  Upgrade the existing obsolete system (1993), increase the security of the system, ensure the provision of timely information, and ensure compliance with Treasury Board policies. 4.3 2.3 1.8 0.2
CCG APS Improvement and Upgrade Project.  Upgrade the CCG Automated Performance Solution (CCGAPS), the most critical business management tool available to Coast Guard for the reporting of vessel activities. 3.5 0.6 1.5 1.4
CCG College Simulators.  Modernize two of the CCG College’s simulators: the Marine Propulsion Plant Simulator and the Blind Pilotage Radar Simulator. Both simulators are beyond the normal 10-year industry standard for hardware and software support. 7.2 0.5 6.0 0.7
Flight Following System.  Install a Flight Following System (FFS) on each of the 23 helicopters and 18 helicopter-capable vessels in the CCG fleet. 2.8 0.1 2.1 0.6
Vessel Tracking.  Install a near–real-time Vessel Tracking System onboard 116 CCG vessels and 100 CCG small craft. 3.6 0.1 2.3 1.2
Projects Approved in Principle, Awaiting Funding
Business Data Exchange Improvements for Ships.  Improve the Canadian Coast Guard fleet’s ability to exchange business data ship-to-shore and shore-to-ship. 4.2 0.8 2.0 1.4

1 This acquisition was announced in the 2008 Federal Budget. TEC for this project is $800M on a cash basis ($720M on an accrual basis).