Sunday, June 4, 2017

Canada's Newest Frigates And Destroyers My Cost Up To $4.10 Billion (CAD) or $3.04 (USD) Per Ship

Feb 2006 HMCS Athabaskan. Photo of the Standing NATO Maritime Group 1. The ship carries a crew of some 300 all ranks including a flight crew (2 Sea King helicopters) and maintenance technicians Photo Credit: MCpl Charles Barber, Staff Photographer SNMG1 (NATO)

David Pugliese, Ottawa Citizen: Cost of Canadian Surface Combatant put at more than $61 billion – PBO study

Canada’s new fleet of warships will cost almost $62 billion, according to a new study by the Parliamentary Budget Officer.

The original budget for the CSC program was $26.2 billion, or $1.7 billion per ship for 15 ships. The vessels are to replace the current Halifax-class frigates and the Iroquois-class destroyers.

But Jean-Denis Fr├ęchette , the Parliamentary Budget Officer, estimates that the program will cost $61.82 billion, or $4.1 billion per ship for 15 ships. Therefore, it is estimated the ships will cost roughly 2.4 times more than originally budgeted, the PBO added in a report released Thursday.

This estimate includes costs resulting from development, production, spare parts, ammunition, training, government program management and upgrades to existing facilities. It does not include costs associated with the operation, maintenance and mid-life refurbishment of the ships, other than the spare parts that will be purchased when the ships are built, the PBO noted.

Read more ....

WNU Editor: Even the low-ball number of $1.7 billion (CAD)/$1.26 billion (USD) per ship seems ridiculously high. But 15 ships for a total price of $62 billion (CAD)/$46 billion (USD) or (the low-ball number) of  $26.2 billion (CAD)/$19.20 billion( USD).... even taking the low-ball number I cannot help but feel that something is wrong.


Jay Farquharson said...

Tip for you:

The Halifax Class upgrade program is $4.1 billion for all 12 ships, but doesn't include the costs of Helocopter upgrades.

The Halifax Program cost $9.54 billion for 12 ships in 1990's dollars, $795 million each.

Adjusted for inflation, that would be a per ship cost of $1.34 billion each today.

It's the inflationary costs of the new technologies that's killing Western Militaries. It's not cheap Flower Class Corvette's anymore, or Spitfires.

War News Updates Editor said...

Jay. I can understand (reluctantly) the $1.34 billion cost .... but $4.1. billion?

Jac said...

I agree with Jay. New technologies are good for their qualities but are a killing for budget. And it will go worse and worse.

Jay Farquharson said...

Part of the costs is the CTPW Treaty avoidance, to avoid delays, many of the systems to be installed are not based on a competitive bid, but instead, what we can already buy.

Then there's all the additional technology and systems that were only a dream three decades ago,

Then there's all the bluetooth enabling,

Basically, it the same reason pickup trucks ain't cheap, and almost never dirty.

Anonymous said...

Most of that cost is probably life cycle maintenance cost built into the budgeting. You see this a lot with aircraft purchases. Another reason this is so expensive is because it will be built in Canada. Canada doesn't really have competitive shipyards that produce large ships like this. So the Canadian government is in essence using the DND budget to try and kick start it the shipbuilding industry.

War News Updates Editor said...

Jay. You may have a point.
My brother lives in the Bay area.
He drives a Tesla and a 20 year old F-150.
The F-150 is more reliable.

Jay Farquharson said...

The Upgrade Program for the Halifax Class is almost half the cost per ship it was to build them in the first place.

The Canadian Program's in line with recent comperable programs like the Saudi LCS Frigate, Singapore's New frigates.

Anonymous said...

I know a guy, hook you up. His boats with americans cups

TWN said...

Were building Cadillac's when we should be building Chevrolet's, and there is the Graft factor and letting the Irving's anywhere near a Govt contract and the fact the Rubes/Morons in the Navy and Govt they call Purchasers will believe any old shit you tell them. These are some of the reasons we pay so much, for stuff.

Andrew Jackson said...

It's about time cheap ass Canadia spent some money!