The Cost of Canada’s Surface Combatants

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The Cost of Canada’s Surface Combatants.pdf

Summary
The objective of this report is to provide a cost estimate of the CSC program. 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.

There are two primary cost drivers for surface combatants: the ship’s weight and the combat system. The weight of surface combatants has been increasing, while their combat systems have become more and more complex, both factors driving up their cost.

Assumptions which the PBO used for it estimation were:

  • Contract awarded in 2018
  • Construction starts in 2021
  • 15th ship delivered in 2041
  • CSC based on an existing design with 5,400 tons used as the reference lightship weight

Total program cost in FY2017 dollars is estimated to be $39.94 billion or $61.82 billion in then-year dollars. The original budget for the CSC was $26.2 billion (from 2008 and under review) and it is estimated to buy six ships.

Related reports
Feasibility of Budget for Acquisition of Two Joint Support Ships – 28 February 2013
http://www.pbo-dpb.gc.ca/web/default/files/files/files/JSS_EN.pdf

Budget Analysis for the Acquisition of a Class of Arctic/Offshore Patrol Ships – 28 October 2014
http://www.pbo-dpb.gc.ca/web/default/files/files/files/AOPS_EN.pdf