2006 May Status Report of the Auditor General of Canada

Exhibit 3.1—Terms of the contract amendment as agreed, effective 19 December 2005

Value of training missed ($ millions)	$89.0
Benefits derived from operations
Recognition of extra training received for pilot proficiency, pilot conversion, and extra flight instructor training	27.0
Revenue from sale of flight instructor training to foreign militaries until 2007	10.3
Administrative services already received and to be provided over the life of the contract	2.2
Total	$39.5
Amounts held in trust for benefit of the Crown
Interest earned on funds and from payments to suppliers withheld due to late deliveries	11.5
Liquidated damages withheld from supplier A due to late delivery	6.0
Waiver by the contractor of claim related to late delivery from supplier B	3.0
Total	$20.5
Contract amendment opportunities for National Defence to obtain future value
Additional basic training for National Defence in 2020 (value estimated by National Defence)	14.0
Additional sale of basic training to foreign militaries (value estimated by National Defence)	15.0
Total	$29.0
Current and potential future value of amendment	$89.0

Source: Public Works and Government Services Canada and National Defence