Parliamentary Budget Report on CSC

The Parliamentary Budget Office (PBO) released a report on 1 June 2017 called “The Cost of Canada’s Surface Combatants.” The PBO report reviews the costs of the Canadian Surface Combatant (CSC) program to construct 15 ships to replace the capabilities of the Halifax-class frigates and Iroquois-class destroyers. It uses several different cost estimation methodologies, and includes costs resulting from development, production, spare parts, ammunition, training, government program management and upgrades to existing facilities, but not costs associated with the operation, maintenance and mid-life refurbishment of the ships. The results of the report are discouraging. The original budget for the CSC program was $26.2 billion, or $1.7 billion per ship for 15 ships in 2008 dollars. The PBO report says the estimated cost of the program in then-year dollars is $61.82 billion, or $4.1 billion per ship for 15 ships – thus, the ships will cost roughly 2.4 times more than originally budgeted. See the full report at http://www.pbo-dpb.gc.ca/web/default/files/Documents/Reports/2017/CSC%20Costing/CSC_EN.pdf

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