As part of the  Government’s commitment to strengthening the Canadian Armed Forces (CAF), the  Department of National Defence (DND) is acquiring 15 advanced, multi-mission,  medium to heavy-lift helicopters, or more specifically the Canadian version of  the F-model Chinook (also known as CH-147F). This will continue to position the  CAF as a first-class, modern, flexible force capable of defending Canada  and Canadian interests well into the future.

The purchase of this fleet of 15  aircraft meets our military’s requirements and enables the CAF to project  itself effectively across Canada  and abroad. The Canadian CH-147F Chinook represents a new capability for the  CAF that will enhance its ability to operate in remote and isolated areas, and  increase its capacity to respond to a wide variety of humanitarian emergencies  across the continent, such as fires, floods, and earthquakes.

As part of  the Medium-to-Heavy Lift Helicopter Acquisition Program, Boeing has committed  to providing Industrial and Regional Benefits equal to US$1.25 billion, which  will ensure significant benefits for Canadian industry from this  procurement.  Boeing is currently on  track to meet its commitments.

This procurement project remains both on time and  within budget since the contract was signed with Boeing in 2009.

Projected  Costing

• The total estimated cost for acquisition       and in-service support for the Medium-to-Heavy Lift Helicopter Program is CAN$5       billion.  The breakdown is as       follows:
  • The  total project acquisition cost is estimated at CAN$2.3 billion, which includes  the 15 helicopters, in-service support set-up, equipment procured  directly from the U.S. government (Foreign Military Sales cases)*, new infrastructure in Petawawa, project  management costs, and a complete  maintenance and aircrew training program, including simulation devices and  courseware.
  • The  20-year in-service support program for the helicopters, which includes the  training systems and equipment procured directly from the U.S. government (Foreign Military  Sales cases)*, has an estimated  value of CAN$2.7 billion.
• The estimated costs associated with 20 years of  personnel, operations, and maintenance (excluding GST) are approximately  CAN$1.7 billion.

Estimated Life-Cycle Costs

Acquisition costs	$2.3B
In-Service Support    (20 yrs)	$2.7B
TOTAL	$5.0B
Personnel, Operating,    and Maintenance Costs (20 yrs)	$1.7B

* The Foreign  Military Sales program is the U.S.  method for selling U.S.  defence equipment, services, and training that is not available for individual  companies to purchase, even if they are American. Equipment that falls under  this program are typically sensitive, such as specialised weapons, high  performance engines and classified communications systems. In programs like the  Medium-to-Heavy Lift Helicopter,   Canada procures  certain equipment through Foreign Military Sales, and then provides it to the  company for assembly and integration into the aircraft.

Chronology of Events

• June 2006: The Government of Canada announced its plan to acquire a new       fleet of medium-to-heavy lift Chinook F-model helicopters to meet the CAF rotary-wing       transport requirements for the next 20 years. To ensure a fair, open, and transparent       process, an Advance Contract Award Notice was published on Government       Electronic Tenders Service (MERX) to give notice to supplier community of       the intent to award a contract to the Boeing Company. Boeing was assessed as being the only compliant supplier.

• Of Note:
  • December 2008: Separate from  the Medium-to-Heavy  Lift Helicopter Program, Canada acquired six used Chinook D-model  helicopters (CH-147D) in order to meet an urgent need for a medium-lift  capability in Afghanistan.  These  helicopters were procured directly from the U.S. government (Foreign Military  Sales cases)*. This capability lasted until the end of the mission in 2011.
  • Two of the original six  Chinook D-model helicopters were damaged beyond economical repair while in  operation in Afghanistan.  DND is pursuing disposal options including the sale of the remaining four  helicopters of the Chinook D fleet.
• August 2009: The Government of Canada announced a contract to the Boeing Company valued at approximately US$1.2 billion to       build the helicopters and provide initial in-service support set-up.
• December 2009: The Government of       Canada announced Canada’s new fleet of       15 Chinook F-model helicopters will be based at Canadian Forces Base       Petawawa, Ontario.       The new helicopter squadron will be designated 450 Tactical Helicopter       Squadron.
• March 2010: The Government of Canada announced that Montréal-based CAE would be the single operational training systems       provider for the Chinook F-model helicopter fleet.  CAE was awarded a contract valued at       approximately CAN$250 million to establish and maintain a comprehensive       aircrew training solution.
• October 2010: The Government       of Canada awarded Ellis Don Company a contract valued at CAN$134.8 million       to construct first and second line maintenance bays, CAE and Boeing       training schools, a back shop and warehouse, a DND command suite, and       a fenced-in parking lot.
• June 24, 2012: Canada’s       first Chinook F-model helicopter successfully completed its maiden test       flight at a Boeing test facility, kicking off the year-long Test and       Evaluation phase of the program which is comprised of both ground and       flight-test activities.
• September 24, 2012: A second       Canadian Chinook F-model helicopter began the Test and Evaluation phase of       the program and completed its first test flight.
• February 5,       2013: Boeing-led       training began for aircraft technicians, loadmasters and flight engineers       at a training site near Philadelphia.       Approximately 45 graduates were available to support the first Chinook       helicopter that arrived in the summer of 2013.
• March 24,       2013: The       Government of Canada announced the awarding of a CAN$5.7 million subcontract       by Boeing to Weatherhaven,       of Burnaby, British Columbia, to fit       made-in-Canada portable repair and maintenance shelters for the CH-147       helicopters. These portable       shelters can be trucked and/or airlifted to locations to meet the Canadian       Armed Forces’ various needs in the field, both domestically and       internationally.
• June 21, 2013: The Government of Canada finalized a contract       amendment with the Boeing Company to provide the first five years of 20       years of in-service support for the helicopters.
• June 24, 2013: The Government of       Canada accepted the       Canadian Armed Forces’ first new CH-147F Chinook helicopter at a ceremony       at Boeing’s facility in Philadelphia,        Pennsylvania.
• June 27, 2013: The Government of Canada welcomed the delivery of the Canadian       Armed Forces’ first new CH-147F Chinook helicopter in Canada at a ceremony in Ottawa.

Next Steps

• Aircraft  will be delivered at a rate of approximately one aircraft per month with all  aircraft being delivered over the next year. The operational readiness of this  fleet will be developed in a progressive manner that is in step with testing  and training on the Chinook. This will ensure that the impressive capabilities  of this aircraft can be fully and safely exploited when responding to future  emergencies or military operations.

Note:

As this  is a living document, it will be updated as future milestones are achieved  within the Medium-to-Heavy Lift Helicopter Program.