CNR Fan, 21 December 2021.
According to The Canadian Press, the Defence Department's top procurement official is warning of new delays in the delivery of already overdue warships and other new equipment to the Canadian Armed Forces because of COVID-19.
Assistant deputy minister of materiel (ADM(Mat)) Troy Crosby says the Halifax and Vancouver shipyards building new fleets for Canada's navy and coast guard have been hit particularly hard by lockdowns and supply chain disruptions.
Any schedule slippage will delay delivery of much-needed new ships for the navy's aging fleet, which has seen two support ships and three destroyers retired over the past decade, vessels that still haven't been replaced.
The budget watchdog’s report estimated a one-year delay would add $235 million to the overall cost, while a two-year delay would result in a $472-million increase. Ottawa initially budgeted $700 million in 2008 to build one icebreaker.
Parliamentary budget officer Yves Giroux has also predicted a one-year delay in delivery of 15 new warships for the navy would add $2.3 billion to his current estimated cost of $77 billion, while a two-year delay would result in the fleet costing $4.8 billion more.
Crosby acknowledged without providing details that cost increases are likely, noting recent stresses on supply chains alone have made it more expensive to buy and transport materials to the shipyards for those vessels currently under construction.
Read more: Military shipbuilding faces fresh delays as a result of COVID-19: procurement chief
This report by The Canadian Press was first published Dec. 21, 2021.
