10-36-80/5 TD 3042 (CCE)
February 15, 1963
The Secretary,
The Treasury Board,
Department of Finance,
Confederation Building,
Ottawa, Ontario
Dear Sir:
Gap Filler Programme - Construction Status
Subsequent to my letter 10-36=80/5 TD 3030 (DCEC) dated February 1, 1963, additional information has been received by the RCAF that affects the Gap Filler Programme.
In June 1962, when the Government instructed all departments to reduce expenditures for the Fiscal Year 1962-63, one of the items considered for deferment by the RCAF was the Gap Filler Programme. Because of delays in the production of the radar equipment, the construction at these sites could be deferred without jeopardizing the progamme as a whole. It was known at that time that there would be charges for the termination of existing contracts before all work on them was completed. It was also realized that the expenditures on existing contracts during the fiscal year in question would be greater if the work proceeded to completion. Since it was extremely urgent then that cash expenditures be reduced, these anticipated charges were accepted and the programme was deferred.
The RCAF has now been advised that further delays have occurred with the radar equipment. The USAF's manufacturer now estimates that it will be the end of 1963 before the first satisfactory equipment is available and thus, construction work will not have to be completed on the first sites until the Summer of 1964 with full completion in 1965. It is therefore considered that no further on site construction work should proceed in 1963 but be reinstated in the Spring of 1964.
One item still to be completed at all but one site, is the installation of diesel power supply units. If these were installed in 1963, further costs would be incurred in inhibiting and/or maintaining them until normal operations of the sites is effected. (Under these circumstances, it is not planned to install these units until nearer the operational date).
In addition, the RCAF intends to reduce the standard of raod construction at all sites where the access road is not yet completed to that suitable for tracked vehicles only. In those instances where road construction has already reached this standard, no further road work will be required. It is estimated that the cost to complete all 25 sites under contract will be reduced from DCL's current estimate of $660,500.00 to $613,200.00 by this change in road standard.
DCL will be sending you the details connected with the termination of all existing contracts. The attached letter has been forwarded to DCL requesting them to carry out the negotiations. It is recommended that all current contracts be terminated at this time.
Yours sincerely,
(EB Armstrong)
Deputy Minister