[{"label":"Home","url":"https:\/\/www.pbo-dpb.ca\/en"},{"label":"News Releases","url":"https:\/\/www.pbo-dpb.ca\/en\/news-releases--communiques-de-presse","section":{"id":4,"title_en":"Communications","title_fr":"Communications"}},{"label":"Cost of Canadian Surface Combatants to hit $306 billion over 65-year life cycle, says PBO","url":"https:\/\/www.pbo-dpb.ca\/en\/news-releases--communiques-de-presse\/cost-of-canadian-surface-combatants-to-hit-306-billion-over-65-year-life-cycle-says-pbo-le-cout-des-navires-de-combat-de-surface-canadiens-atteindra-306-milliards-sur-un-cycle-de-vie-de-65-ans-selon-le-dpb","section":{"id":4,"title_en":"Communications","title_fr":"Communications"}}]

Cost of Canadian Surface Combatants to hit $306 billion over 65-year life cycle, says PBO

Ottawa (Ontario), October 27, 2022

The Parliamentary Budget Officer (PBO) today released an independent assessment of the life cycle cost of the Canadian Surface Combatant program.

In response to a request by the House of Commons Standing Committee on Government Operations and Estimates (OGGO), this report presents a cost analysis of the Canadian Surface Combatant (CSC) program, including estimates for the development, acquisition, operations and sustainment, and disposal phases of the fleet’s life cycle.

“The total estimated cost of the development, acquisition, operations and sustainment, and disposal of the CSC fleet is $306.0 billion over a 65-year period,” say Yves Giroux, PBO.

The PBO’s latest estimates for the Development and Acquisition phases have jumped to $84.5 billion. This represents a 9 percent increase over the $77.3 billion cost estimate, which was presented in the 2021 report.

“This new evaluation takes into account revised production schedules, and amended inflation projections,” explains Mr. Giroux.

Construction on the first vessel is slated to begin in 2024-25.

The Operations and Sustainment phase is estimated at $219.8 billion and is slated to begin in 2031-32, with the delivery of the first ship to the Royal Canadian Navy. These costs will end in 2078-79 once the 15th ship has reached the end of its useful life.

The disposal of the first vessel is projected to occur in 2061-62, with the last vessel being removed from service in 2080-81. This phase is the least costly at $1.7 billion.

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