Battle of the budget: DND gears up to defend cost of new warships in the new year

On the same subject

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  June 11, 2018 | Local, Naval

  Joint Support Ship cost up by $1.1 billion - taxpayers will now spend $3.4 billion on project

  DAVID PUGLIESE, OTTAWA CITIZEN Taxpayers will have to spend $1.1 billion extra on new navy supply ships that are going to be built starting this summer, the Liberal government now acknowledges. Previously the cost of building the two ships at Seaspan shipyards in Vancouver, BC had been pegged at $2.3 billion. But the government ordered a review of that cost figure and in an email to Postmedia, Procurement Minister Carla Qualtrough's office now confirms the cost for the Joint Support Ships, or JSS, is set at $3.4 billion. Pat Finn, the head of procurement at the Department of National Defence, said the new price tag came as the government decided to do an additional analysis of the project and include other items it had not previously included. In some cases equipment for the ship has been purchased so there are better costs available on those items, Finn said in an interview Monday. Also taken into account was new infrastructure and the delays with the program, which, in turn, drove up the price as the cost of material increased over the years. “The build period has changed quite dramatically,” Finn acknowledged. At one point, the first ship was supposed to arrive in 2012. That has been changed a number of times with the government later hoping for a 2018 delivery and then a 2019 arrival for the first vessel. The Department of National Defence is now hoping for the delivery of the first ship in 2022 or 2023. Construction will begin at Seaspan this summer of some initial portions of the vessels, Finn said. The government hopes starting construction on the supply ships in the summer will head off any potential layoffs of skilled employees at Seaspan. Finn said of the $3.4 billion figure, the actual cost of building the two ships accounts for a little more than 60 per cent. Finn said the new costing model for the JSS is more akin to the one used by the parliamentary budget office. That office had an even higher estimate for JSS when it concluded in 2013 that the final tally for taxpayers would be $4.13 billion. The Joint Support Ships are critical for the navy as they provide fuel and supplies for warships at sea. But the Royal Canadian Navy retired its last two aging supply ships years ago. One was damaged beyond repair in a fire. The other was removed from service because of excessive corrosion. The Canadian military had been relying on the Spanish and Chilean navies to provide supply vessels for short periods of time to help fuel up Canadian warships at sea. Because of the delays in the JSS program, the previous Conservative government entered into agreement with Davie Shipyards in Quebec to lease a commercial vessel that had been converted into a refueling and supply ship. That ship, the MV Asterix, is at the heart of federal government's case against Vice Admiral Mark Norman. Norman has been accused by the RCMP of warning Davie in the fall of 2015 that Liberal cabinet ministers wanted to derail the Asterix project. Word of the Liberal plan leaked out to the news media and the resulting embarrassment forced the Trudeau government to back down on its plans and the conversion of Asterix proceeded. Norman was put under investigation and Prime Minister Justin Trudeau predicted on two occasions the officer would ultimately end up in court. In March, the RCMP charged Norman with a single count of breach of trust. A date for the trial has not yet been set. Norman denies the charge and has said he looks forward to clearing his name. Asterix is considered a rare achievement in Canadian military procurement in that it was delivered on time and on budget. The supply ship is now at sea with Royal Canadian Navy and is headed to a major military exercise to begin later this month. http://ottawacitizen.com/news/national/defence-watch/joint-support-ship-cost-up-by-1-1-billion-taxpayers-will-now-spend-3-4-billion-on-project

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  December 7, 2018 | Local, Naval

  Government of Canada to invest in eight search and rescue lifeboats for Canadian Coast Guard

  December 6, 2018 - Gatineau, Quebec - Public Services and Procurement Canada The Government of Canada is committed to getting the Canadian Coast Guard the equipment it needs to keep Canadian waterways safe and provide meaningful economic opportunities for Canadian shipyards. On behalf of the Canadian Coast Guard, Public Services and Procurement Canada is acquiring eight new high-endurance search and rescue (SAR) lifeboats from Chantier Naval Forillon of Gaspé, Quebec, and Hike Metal Products of Wheatley, Ontario. Chantier Naval Forillon and Hike Metal Products were already producing six SAR lifeboats each under existing contracts signed in 2015. Under the amended contracts, each shipyard will build four additional lifeboats at a total cost of $61,757,896. These contracts were awarded under the small vessel component of the National Shipbuilding Strategy and will help maintain well-paying, middle-class jobs at both shipyards. With the ability to operate up to 100 nautical miles from shore, these new high-endurance SAR lifeboats are enhancing the Coast Guard's search and rescue capabilities. Vessels from this class are named after bays in Canada and are being built under the Federal Infrastructure Initiative, the Fleet Renewal Plan and Oceans Protection Plan. Quotes “Our government is providing the women and men of the Canadian Coast Guard with the modern equipment they need through the National Shipbuilding Strategy. At the same time, we are creating good middle class jobs and strong business opportunities for the Canadian marine sector.” The Honourable Carla Qualtrough Minister of Public Services and Procurement and Accessibility “Through the National Shipbuilding Strategy and Oceans Protection Plan, we are providing members of the Canadian Coast Guard the equipment they need to keep Canadian waters and those who use them safe. The addition of these new lifeboats will also create more jobs for Canadians and enhance the Coast Guard's capacity as a leader in maritime safety.” The Honourable Jonathan Wilkinson Minister of Fisheries, Oceans and the Canadian Coast Guard Quick facts Chantier Naval Forillon in Gaspé, Quebec, won a $45.8-million contract in July 2015 to build six vessels. This contract created 25 new jobs, as well as sustaining approximately 35 jobs. Hike Metal Products in Wheatley, Ontario, won a $43.4-million contract in July 2015 to build six vessels. This contract created and sustained 45 jobs. To date, four new high-endurance SAR lifeboats have been delivered to the Coast Guard. SAR lifeboat stations are operated by highly-trained Canadian Coast Guard personnel, who are well-equipped to respond to marine incidents in near-shore areas. Under the $1.5 billion Oceans Protection Plan, seven new lifeboat stations are being built, contributing to safer waters and coasts across Canada. https://www.canada.ca/en/public-services-procurement/news/2018/12/government-of-canada-to-invest-in-eight-search-and-rescue-lifeboats-for-canadian-coast-guard.html

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  August 16, 2021 | Local, Aerospace

  Modernization of military surveillance aircraft fleet delayed as $52 million more needed for project

  DND spokesman Dan Le Bouthillier said $52 million will be provided to companies so the project can be completed.