The Cost of Canada’s Surface Combatants: 2021 Update and Options Analysis

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Communications

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• We estimate the fleet of new ships, based on the Type 26 design, will cost $77.3 billion to build. A one-year delay would increase that cost to $79.7 billion, and a two-year delay would see the cost rise to $82.1 billion.

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{"id":12,"created_at":"2021-02-19T14:37:58-05:00","updated_at":"2021-02-25T15:07:04-05:00","slug":"COM-2021-012--current-canadian-surface-combatant-csc-program-to-cost-at-least-773-billion-says-pbo--le-programme-actuel-de-navire-de-combat-canadien-ncc-coutera-au-moins-773-milliards-de-dollars-affirme-le-dpb","title_en":"Current Canadian Surface Combatant (CSC) program to cost at least $77.3 billion, says PBO","title_fr":"Le programme actuel de navire de combat canadien (NCC) co\u00fbtera au moins 77,3 milliards de dollars, affirme le DPB","body_en":"The Parliamentary Budget Officer (PBO) today released an updated cost estimate of the Canadian Surface Combatant (CSC) program. This report was prepared in response to a request from the House of Commons Standing Committee on Government Operations and Estimates (OGGO).\n\nThe report, The Cost of Canada\u2019s Surface Combatants: 2021 Update and Options Analysis, examines the cost of the existing CSC program, which is intended to replace both the current fleet of Halifax-class frigates and three decommissioned Iroquois-class destroyers with a new fleet of 15 warships, based on the Type 26 ship design. \n\n\u201cWe estimate the fleet of new ships, based on the Type 26 design, will cost $77.3 billion to build\u201d, said Yves Giroux, PBO. \u201cA one-year delay would increase that cost to $79.7 billion, and a two-year delay would see the cost rise to $82.1 billion.\u201d\n\nThe PBO\u2019s latest cost estimate to build the Type 26 ships shows an increase of $7.5 billion over his 2019 estimate due to updates in the ship\u2019s specifications and production timelines.\n\nThe report also presents a cost analysis of two other ship designs: the FREMM European multi-mission frigate and the Type 31e, a class of general-purpose frigates planned for the United Kingdom\u2019s Royal Navy.\n\nThe cost of acquiring 15 FREMM ships is estimated at $71.1 billion, while the cost of a fleet of 15 ships based on the Type 31e design is estimated at $27.5 billion. These estimates are inclusive of cancellation costs, running a new competitive design selection process, and an additional four-year delay in the start of construction. It is important to note that these ships have different characteristics and capabilities.\n\nThe report also considers the cost of a mixed fleet: three of the Type 26 ships and 12 ships of either of the alternate designs. Under this scenario the costs increase to $71.9 billion for the mixed FREMM fleet, and $37.5 billion for the mixed Type 31e fleet.","body_fr":"Le directeur parlementaire du budget (DPB) a rendu publique aujourd\u2019hui une estimation mise \u00e0 jour des co\u00fbts du programme de navire de combat canadien (NCC). La production de ce rapport fait suite \u00e0 une demande du Comit\u00e9 permanent des op\u00e9rations gouvernementales et des pr\u00e9visions budg\u00e9taires de la Chambre des communes (le Comit\u00e9 OGGO).\n\nLe rapport, intitul\u00e9 Le co\u00fbt des navires de combat canadiens : Mise \u00e0 jour de 2021 et analyse des options, examine le co\u00fbt du programme actuel de NCC, qui vise \u00e0 remplacer \u00e0 la fois la flotte actuelle de fr\u00e9gates de la classe Halifax et trois destroyers hors service de la classe Iroquois par une nouvelle flotte de 15 navires de guerre de Type 26. \n\n\u00ab Nous \u00e9valuons \u00e0 77,3 milliards de dollars le co\u00fbt de construction de la flotte de navires de type 26, a dit Yves Giroux, DPB. Un retard d\u2019un an en ferait passer le co\u00fbt \u00e0 79,7 milliards de dollars, et un retard de deux ans le porterait \u00e0 82,1 milliards de dollars. \u00bb\n\nLa plus r\u00e9cente estimation du co\u00fbt de construction des navires de type 26 est en hausse de 7,5 milliards de dollars par rapport \u00e0 l\u2019estimation publi\u00e9e par le DPB en 2019 en raison d\u2019une r\u00e9vision des sp\u00e9cifications du navire, et du calendrier de production.\n\nLe rapport pr\u00e9sente \u00e9galement une analyse du co\u00fbt de deux autres mod\u00e8les de navire : la FREMM (fr\u00e9gate europ\u00e9enne multi-mission) et le navire de Type 31e, une classe de fr\u00e9gates polyvalentes que compte acqu\u00e9rir la Marine royale du Royaume-Uni.\n\nLe co\u00fbt d\u2019Acquisition de 15 FREMM est \u00e9valu\u00e9 \u00e0 71,1 milliards de dollars, tandis que le co\u00fbt d\u2019une flotte de 15 navires de Type 31e est \u00e9valu\u00e9 \u00e0 27,5 milliards de dollars. Ces estimations comprennent les frais d\u2019annulation, la tenue d\u2019un nouveau processus concurrentiel de s\u00e9lection d\u2019un mod\u00e8le et un retard additionnel de quatre ans avant la mise en chantier. Il est important de noter que ces navires ont des caract\u00e9ristiques et des capacit\u00e9s diff\u00e9rentes.\n\nLe rapport \u00e9value \u00e9galement le co\u00fbt d\u2019une flotte mixte : trois navires de type 26 et douze navires d\u2019un des deux autres mod\u00e8les. Selon ce sc\u00e9nario, les co\u00fbts passent \u00e0 71,9 milliards de dollars pour une flotte mixte o\u00f9 la FREMM serait l\u2019autre mod\u00e8le, et \u00e0 37,5 milliards de dollars pour une flotte mixte o\u00f9 le navire Type 31e serait le second mod\u00e8le.","release_date":"2021-02-24T09:00:00-05:00","is_published":"2021-02-25T15:07:04-05:00","internal_id":"COM-2021-012","permalinks":{"en":{"website":"https:\/\/www.pbo-dpb.ca\/en\/blog\/news-releases--communiques-de-presse\/COM-2021-012--current-canadian-surface-combatant-csc-program-to-cost-at-least-773-billion-says-pbo--le-programme-actuel-de-navire-de-combat-canadien-ncc-coutera-au-moins-773-milliards-de-dollars-affirme-le-dpb"},"fr":{"website":"https:\/\/www.pbo-dpb.ca\/fr\/blog\/news-releases--communiques-de-presse\/COM-2021-012--current-canadian-surface-combatant-csc-program-to-cost-at-least-773-billion-says-pbo--le-programme-actuel-de-navire-de-combat-canadien-ncc-coutera-au-moins-773-milliards-de-dollars-affirme-le-dpb"}},"pivot":{"publication_id":79,"news_release_id":12}}