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No plans to change warships despite PBO cost warning, top official says

shawn5o

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No plans to change warships despite PBO cost warning, top official says
Lee Berthiaume

The Canadian Press Staff

Published Sunday, April 4, 2021 7:21AM EDT


OTTAWA -- Canada's top military procurement official says there are no plans to change directions on the construction of a fleet of new Navy warships despite a recent warning about escalating costs from Parliament's budget watchdog.

In an exclusive interview with The Canadian Press, Troy Crosby, the assistant deputy minister of materiel at the Department of National Defence, said he remains confident in Ottawa's estimated price tag for the 15 vessels.

And he suggested switching things up now to save money would only lead to delays and undercut the Navy's ability to protect Canada.

"The solution that we have will deliver the equipment that the Navy and Canada require for its surface combatants for the long term," Crosby said. "We're going to do the best we can to deliver that in as timely a fashion as possible so the Navy gets the ships it needs."

Crosby's comments come about a month after parliamentary budget officer Yves Giroux released a report predicting another multibillion-dollar cost increase in what is already the largest military procurement in Canada's history.

While the government says the warships will cost up to $60 billion, Giroux put the figure at more than $77.3 billion.

The vessels were supposed to cost $26 billion when the project to replace the Navy's frigates and destroyers was launched in earnest a decade ago.

More at link above
 

daftandbarmy

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No plans to change warships despite PBO cost warning, top official says
Lee Berthiaume

The Canadian Press Staff

Published Sunday, April 4, 2021 7:21AM EDT


OTTAWA -- Canada's top military procurement official says there are no plans to change directions on the construction of a fleet of new Navy warships despite a recent warning about escalating costs from Parliament's budget watchdog.

In an exclusive interview with The Canadian Press, Troy Crosby, the assistant deputy minister of materiel at the Department of National Defence, said he remains confident in Ottawa's estimated price tag for the 15 vessels.

And he suggested switching things up now to save money would only lead to delays and undercut the Navy's ability to protect Canada.

"The solution that we have will deliver the equipment that the Navy and Canada require for its surface combatants for the long term," Crosby said. "We're going to do the best we can to deliver that in as timely a fashion as possible so the Navy gets the ships it needs."

Crosby's comments come about a month after parliamentary budget officer Yves Giroux released a report predicting another multibillion-dollar cost increase in what is already the largest military procurement in Canada's history.

While the government says the warships will cost up to $60 billion, Giroux put the figure at more than $77.3 billion.

The vessels were supposed to cost $26 billion when the project to replace the Navy's frigates and destroyers was launched in earnest a decade ago.

More at link above

Music to a contractor's ears :)
 

Navy_Pete

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Music to a contractor's ears :)
Nah, not really, they would make a lot of money if we decided to change tack while already all-in to the type 26 contracts and design phase. Canceling it would be another E-101 story, were we would pay the full costs anyway but get none of the benefit.

Besides, things like inflation, increased material costs etc don't really add real profit to their bottom line and their big payday is delivering a ship, so it's in their best interest to kick over the first CSC ASAP. They don't want any delays even more than we do.
 
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