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The Life Cycle Cost of the Canadian Surface Combatants — A Fiscal Analysis

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Published on October 27, 2022 PDF

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 Combatants (CSC) program, including estimates for the Development, Acquisition, Operations and Sustainment, and Disposal phases of the fleet’s life cycle.

Highlights

  • The total life cycle cost of the CSC program is estimated to be $306.0 billion.

  • Development phase costs are estimated at $4.3 billion.

  • Acquisition phase costs are estimated at $80.2 billion.

  • Operations and Sustainment phase costs are estimated at $219.8 billion.

  • Disposal phase costs are estimated at $1.7 billion.


Communications

Quotes

  • 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.

  • This new evaluation takes into account revised production schedules, and amended inflation projections.

Yves Giroux
Parliamentary Budget Officer

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News Release

{"id":40,"created_at":"2022-10-25T12:29:39-04:00","updated_at":"2022-10-27T08:57:09-04:00","slug":"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","title_en":"Cost of Canadian Surface Combatants to hit $306 billion over 65-year life cycle, says PBO","title_fr":"Le co\u00fbt des navires de combat de surface canadiens atteindra 306 milliards $ sur un cycle de vie de 65 ans, selon le DPB","body_en":"The Parliamentary Budget Officer (PBO) today released an independent assessment of the life cycle cost of the Canadian Surface Combatant program. \n \nIn 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\u2019s life cycle.\n\n\u201cThe 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,\u201d say Yves Giroux, PBO.\n\nThe PBO\u2019s 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. \n\n\u201cThis new evaluation takes into account revised production schedules, and amended inflation projections,\u201d explains Mr. Giroux. \n\nConstruction on the first vessel is slated to begin in 2024-25.\n\nThe 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. \n\nThe 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.","body_fr":"Le directeur parlementaire du budget (le DPB) a publi\u00e9 aujourd\u2019hui une \u00e9valuation ind\u00e9pendante du co\u00fbt du cycle de vie du programme des navires de combat de surface canadiens.\n\nEn r\u00e9ponse \u00e0 la demande du Comit\u00e9 permanent des op\u00e9rations gouvernementales et des pr\u00e9visions budg\u00e9taires de la Chambre des communes, ce rapport pr\u00e9sente une analyse de co\u00fbt du programme des navires de combat de surface canadiens (les NCSC), et comprend des estimations pour les \u00e9tapes de d\u00e9veloppement et d\u2019acquisition, d\u2019exploitation et de maintien en service et de d\u00e9mant\u00e8lement du cycle de vie de la flotte.\n\n\u00ab Le co\u00fbt total du d\u00e9veloppement, de l\u2019acquisition, de l\u2019exploitation, du maintien en service et du d\u00e9mant\u00e8lement de la flotte de NCSC est de 306 milliards de dollars sur 65 ans \u00bb, a d\u00e9clar\u00e9 le DPB, Yves Giroux.\n\nLes derni\u00e8res estimations du DPB pour les \u00e9tapes D\u00e9veloppement et Acquisition ont grimp\u00e9 \u00e0 84,5 milliards de dollars. Cela repr\u00e9sente une augmentation de 9 % par rapport aux estimations de 77,3 milliards de dollars pr\u00e9sent\u00e9es dans le rapport de 2021. \n\n\u00ab Cette nouvelle \u00e9valuation tient compte de la r\u00e9vision des \u00e9ch\u00e9anciers de production et du rajustement des projections de l\u2019inflation \u00bb, a expliqu\u00e9 M. Giroux. \n\nLa mise en chantier du premier navire devrait commencer en 2024-2025.\n\nL\u2019\u00e9tape Exploitation et maintien en service est estim\u00e9e \u00e0 219,8 milliards de dollars et devrait commencer en 2031-2032 lors de la livraison du premier navire \u00e0 la Marine royale canadienne. Cette \u00e9tape prendra fin en 2078-2079, une fois que le 15e navire aura atteint la fin de sa vie utile. \n\nLe d\u00e9mant\u00e8lement du premier navire devrait avoir lieu en 2061-2062 et le retrait du dernier navire surviendrait en 2080-2081. Cette \u00e9tape, estim\u00e9e \u00e0 1,7 milliard de dollars, est la moins co\u00fbteuse.","release_date":"2022-10-27T09:00:00-04:00","is_published":"2022-10-27T08:57:09-04:00","internal_id":"COM-2223-040","permalinks":{"en":{"website":"https:\/\/www.pbo-dpb.ca\/en\/blog\/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"},"fr":{"website":"https:\/\/www.pbo-dpb.ca\/fr\/blog\/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"}},"pivot":{"publication_id":714,"news_release_id":40}}