JSS PBO report 2020_1

PBO Releases Cost Comparisons for Canada’s Two Supply Ships

Dan Middlemiss, 17 November 2020.

Today, Canada’s Parliamentary Budget Officer released a detailed cost projection for the two supply ships for the Canadian Navy [1]. The PBO analysis compares the overall costs of procuring the ships from Seaspan under the National Shipbuilding Strategy (NSS), and the costs of procuring, and eventually purchasing, two ships constructed by Chantier Davie Canada Inc.

The PBO report indicates that the latter option would result in a total cost of $1.430 billion compared to the total of $4.053 billion of continuing with the current approach of acquiring two Joint Support Ships (JSS) from Seaspan.

In addition, the PBO analysis indicates that obtaining the two ships from Davie would provide the vessels to the Canadian Navy considerably earlier than would the option of continuing with the construction program schedule at Seaspan.

The PBO report is careful to point out that its cost assessment makes no conclusions about the relative capabilities of the supply ships constructed at Davie.

References:

  1. See, Parliamentary Budget Officer, The Joint Support Ship Program and the MV Asterix: A Fiscal Analysis, 17 November 2020. Accessed at: https://www.pbo-dpb.gc.ca/en/blog/news/RP-2021-029-C--joint-support-ship-program-mv-asterix-fiscal-analysis--programme-navires-soutien-interarmees-nm-asterix-analyse-financiere
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