The PBO’s latest cost estimate to build the Type 26 ships shows an increase of $7.5 billion over his 2019 estimate due to updates in the ship’s specifications and production timelines. The mandate of the Parliamentary Budget Officer (PBO) is to provide independent analysis to Parliament on the state of the nation’s finances, the Government’s estimates and trends in the Canadian economy; and, upon request from a committee or parliamentarian, to estimate the financial cost This was to include the cost of the current program, based on the Type 26 design, as well as the cost for two other designs: the FREMM and the Type 31e.1 In response to this request, this report presents PBO’s updated estimates for As we adapt the design to meet the needs of the RCN and confirm more details related to the ship’s combat and support systems, we gain greater confidence in our costing. The vessels will replace the current Halifax-class frigate fleet. The Cost of Canada’s Surface Combatants: 2021 Update and Options Analysis, Floriane Bonneville Press Secretary Office of the Minister of National Defence Phone: 613-996-3100, Media Relations Department of National Defence Phone: 613-904-3333 Email: mlo-blm@forces.gc.ca. The naval community is particularly worried about the PBO report, expected next month, because the contract to begin construction of the Canadian Surface Combatants or CSC has yet to be signed. After reviewing the report, we find that the key differences in our cost estimates can be primarily attributed to the PBO including provincial sales tax and the additional emphasis PBO puts on weight-related costing. This report largely follows the methodology described in the 2017 PBO report on the cost of Canada’s Surface Combatant program. The Canadian Surface Combatant project will see the Halifax-based Irving build 15 warships, which will form the backbone of the future Royal Canadian Navy October 19, 2018 News Canada Canada’s surface combatant project will cost C$4.6B per ship, new report finds June 24, 2019, by navaltoday An updated estimate of the Canadian Surface Combatant (CSC) program indicates that the Canadian government is poised to pay C$8 billion more than initially expected to acquire a fleet of 15 new frigates. The report also calculated the costs of selecting a new design for the CSC project. The design was selected following an open, fair, and transparent competitive procurement process, in which performance against the RCN’s requirements was a key selection criteria. The Department of National Defence (DND) thanks the Office of the Parliamentary Budget Officer (PBO) for its work, and welcomes its report on the Canadian Surface Combatant. Officer (PBO) is now working on reviewing the costing of the Canadian Surface Combatant (CSC) Program. 25 February 2021 Shortly after the Parliamentary Budget Office (PBO) released its report on the Canadian Surface Combatant, the Department of National Defence released its response. Context: Type 26 was selected (as basis for CSC) but now the program cost is being reviewed and newer+cheaper (incl. Saint-Pierre-et-Miquelon Guardship Fulmar Deploys to Lake Ontario. “Canadian parliamentarians, decision-makers, and interested stakeholders are advised to exercise caution when considering future PBO Reports on other (National Shipbuilding Strategy) programs, including the Canadian Surface Combatant,” the commentary noted. This is not an option we will be pursuing. This report provides an updated cost estimate of the Canadian Surface Combatant (CSC) program from the 2017 PBO report, “The Cost of Canada’s Surface Combatants.” At the time of the previous cost analysis, the government had not yet selected a design for the new generation of warships. Reports such as this one serve a critical role in validating our project costs, while supporting our shared objective of ensuring that the best value is provided to Canadians. A report published by Canada’s Parliamentary Budget Office (PBO) on Friday, June 21, claims that the cost of the Canadian Surface Combatant (CSC) programme will likely reach C$69.8 billion (US$52.9 billion), or an increase of C$8 billion (US$6 billion) from … We are actively working with industry to accelerate the project in order to deliver these important ships to the RCN as soon as possible. Canadian Surface Combatant (CSC) Project, which is now garnering considerable attention in the wake of the recent Parliamentary Budget Officer (PBO) Report.1 The NAC?s aim was to highlight both the broader strategic value and economic advantages of domestic shipbuilding and the challenges of comparing different warship designs. Posted: Feb. 17, 2021, 1:55 p.m. | Updated: Feb. 17, 2021, 8:10 p.m. © 2020 SaltWire Network. The PBO’s cost estimate is an increase of 11 per cent from its 2019 estimate “due to updates in specifications and timelines,” says the report. Delivery timelines continue to be reviewed and are not final. In 2008, the then-Conservative government estimated the project would cost roughly $26 billion. For enquiries, contact us. The Department of National Defence (DND) thanks the Office of the Parliamentary Budget Officer (PBO) for its work, and welcomes its report on the Canadian Surface Combatant. =============== The news concerning this context really picked … The CSC is the right ship for the RCN, and will provide the best value for the military, Canada, and the Canadian economy. The Department of National Defence (DND) thanks the Office of the Parliamentary Budget Officer (PBO) for its work, and welcomes its report on the Canadian Surface Combatant. But the Canadian Surface Combatant (CSC) program has already faced rising costs. The Department of National Defence (DND) thanks the Office of the Parliamentary Budget Officer (PBO) for its work, and welcomes its report on the Canadian Surface Combatant. The Parliamentary Budget Office’s report on the controversial $70 billion Canadian Surface Combatant project will be released Feb. 24. Sometime soon, the Parliamentary Budget Officer (PBO) will release an updated costing of the Navy’s Canadian Surface Combatant (CSC) project. The Parliamentary Budget Office’s report on the controversial $70 billion Canadian Surface Combatant project will be released Feb. 24. While we recognize the differences in our calculations, we are confident in our current estimate of $56 billion to $60 billion (before taxes). Recent posts. The report is titled, “The Cost of Canada’s Surface Combatants: 2021 Update and Options Analysis.” The The Canadian Surface Combatant (CSC) project is the most expensive purchase in Canadian history. We conducted extensive research to ensure that the selected Type 26 design will provide the Royal Canadian Navy (RCN) with the modern and capable warships it needs to support operations. June 21, 2019 – Ottawa (Ontario) – National Defence / Canadian Armed Forces. the Parliamentary Budget Officer (PBO) undertake a costing analysis of the Canadian Surface Combatant (CSC) project. Author of the article: David Pugliese • Ottawa Citizen Publishing date: Feb 24, 2021 • 4 minutes ago • 3 minute read An artist’s rendering of … The Department of National Defence (DND) welcomes the report of the Parliamentary Budget Officer (PBO) on the Canadian Surface Combatant (CSC). The PBO also produced several costing scenarios involving changes to the project by buying different warships or having a fleet made up of Type 26 frigates and less costly vessels. The 2019 Parliamentary Budget Officer (PBO) report has indicated that the Canadian Surface Combatant (CSC) programme will now cost C$69.8bn ($52.7bn) over 26 years. In addition to providing an invaluable investment into the future operational capability of the RCN, the CSC is also at the core of our Government’s commitment to revitalize Canada’s marine industry through the National Shipbuilding Strategy, which supports over 15,000 jobs per year. You will not receive a reply. off the shelf) tenders could be invited again by year-end or next year. This accurately reflects the value of this project, and is based on our detailed costing model and ongoing work with industry. One way this will be done is by starting construction of the simpler zones of the ship while the design work on the more complex sections continues, similar to what we have done for the Joint Support Ship. Reports such as this one serve a critical role in validating our project costs, while supporting our shared objective of ensuring that the best value is provided to Canadians. Fritz-X Survivor HMCS Quebec Visit to Barcelona. Selecting a new design at this stage in the project would lead to significant economic loss for Canada’s marine industry and those employed in it. The previous report, 2017 PBO, estimated the programme would cost $61.8bn ($46.84bn). Reports such as this one serve a critical role in validating our project costs, while supporting our shared objective of ensuring that the best value is provided to Canadians. It would have major operational impacts for the RCN, due to associated project delays and life-extension requirements, as well as increasing the costs to operate and maintain more than one class of ships in the future. We remain confident that the capability and versatility of the selected CSC design will equip the RCN with the modern, capable, and effective fleet of 15 surface combatants that it will need to support operations for decades to come. As the PBO accurately states throughout the report, there are important differences in capabilities when comparing the cost of these three designs. The PBO should refer its study to the Auditor General of Canada who should work with the PBO on an urgent basis to undertake a more detailed review of the entire CSC program relating to process and cost. This project will provide significant and long-standing investments into the Canadian economy from coast to coast during construction and over decades throughout the CSC’s operational life. As the PBO noted the other design options that they examined would have “more limited” and “modest” capabilities than our selected design. Report: Canadian Surface Combatant fleet to cost at least C$77.3 billion. This was to include the cost of the current program, based on the Type 26 design, as well as the cost for two other designs: the FREMM and the Type 31e.1 Additionally, launching a new competitive process would not guarantee that a new design would result in a lower cost, and would certainly incur additional project management costs related to launching a new procurement process and restarting the required design work. The report is titled, “The Cost of Canada’s Surface Combatants: 2021 Update and Options Analysis.” The Canadian Surface Combatant (CSC) project would see the construction of 15 Type 26 warships for the Royal Canadian Navy at Irving Shipbuilding on the east coast. the Parliamentary Budget Officer (PBO) undertake a costing analysis of the Canadian Surface Combatant (CSC) project. Shipbuilders look at Lockheed Martin Canada's design of 15 new Canadian Surface Combatants to be built at Irving Shipbuilding's Halifax shipyard in Halifax on February 8, 2019. The report, released Wednesday by PBO Yves Giroux, outlined how the cost of the Canadian Surface Combatant fleet increased by $7.3 billion in less than two years. This section briefly describes the modelling approaches adopted. The defence department says the ships are still projected to cost between $56- and $60-billion. PBO Report on the Canadian Surface Combatant – Maple Leaf Navy. PBO report on Canadian Surface Combatant to be released Feb. 24. That PBO work is essential, contributing as it does to a better understanding of the costs and risks inherent in this technologically complex project, which is vitally important to Canada?s sovereignty, defence, and prosperity. These reductions would impede the RCN’s ability to execute its assigned roles and missions to keep Canadians safe both at home and abroad. Sunday, April 18, 2021. All rights reserved. In 2019, the PBO projected the cost of 15 CSC frigates to be nearly $70-billion. February 24, 2021 – Ottawa (Ontario) – National Defence / Canadian Armed Forces. 10. Standing on Guard: Canada’s Strategic Interests in a … There are three methodological approaches: one parametric modelling approach which The Parliamentary Budget Office’s report on the controversial $70 billion Canadian Surface Combatant project will be released Feb. 24. Much of Canada’s naval future, military combat capability, and ability to defend our country and continent are wrapped up in that project, the most expensive we have ever undertaken. We will continue ongoing work to support the start of construction in 2023/2024. Article content The Parliamentary Budget Office’s report on the controversial $70 billion Canadian Surface Combatant project will be released Feb. PBO report on Canadian Surface Combatant to be released Feb. 24 | Ottawa Citizen - MyOttawa.city This quick response was no surprise since the PBO report was much anticipated. Skip to content. 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