Back to news

March 1, 2019 | Local, Aerospace

Budget officer says used Australian fighter jets will cost Canada over $1 billion — far more than DND claimed

DAVID PUGLIESE, OTTAWA CITIZEN

The purchase of used Australian jets to boost Canada's current fleet of fighter planes could cost taxpayers more than $1 billion, a figure 22-per-cent higher than the Department of National Defence is claiming, according to a new report from parliament's financial watchdog.

Parliamentary Budget Officer Yves Giroux examined the cost of buying and upgrading 18 used Australian F-18s and flying them to 2032. His report, released Wednesday, puts the final price tag at between $1.09 billion and $1.15 billion — considerably more than the $895.5 million estimate from DND.

“We considered the entire life-cycle cost, from project management up until the very end of the disposal phase,” Giroux said in an interview with Postmedia. “We didn't look at whether it was a good deal.”

The PBO's costing included weapons, upgrades needed for the aircraft, annual maintenance fees and the fuel that would be needed over the years of flying the aircraft.

We didn't look at whether it was a good deal

The Royal Canadian Air Force is using the jets as interim fighters to boost the capability of the current fleet of CF-18s until the purchase of a new generation of aircraft. The RCAF will fly 18 of the Australian jets and use the other seven for parts and testing.

The RCAF received its first two used Australian fighter jets at 4 Wing Cold Lake in Alta. on Feb. 16. Deliveries of the jets will continue at regular intervals for the next three years, and the aircraft will be integrated into the CF-18 fleet as modifications are completed, according to the RCAF. The last aircraft are expected to arrive by the end of 2021 and fly until 2032.

Giroux said his office used the same figures that DND had but did its own analysis of those cost estimates. “There's no fundamental reason why we should come up with a different number,” he said. “My only sense is that they voluntary budgeted optimistic numbers. The reason why I don't know for sure.”

In a statement Wednesday, DND said its cost figures are close to those determined by the Parliamentary Budget Officer. The statement also added that the PBO figures for upgrades of the interim fighter fleet include estimates for CF-18 combat upgrades which the department is still trying to determine. “While we are confident that our methodology is sound, we will continue to work with the PBO, the Auditor General of Canada, and other outside entities as part of our commitment to responsible use of taxpayer dollars,” the statement noted.

The Liberal government had planned to buy 18 new Super Hornet fighter jets from U.S. aerospace giant Boeing to augment the Royal Canadian Air Force's CF-18s until new modern aircraft could be purchased in the coming years.

But in 2017 Boeing complained to the U.S. Commerce Department that Canadian subsidies for Quebec-based Bombardier allowed it to sell its C-series civilian passenger aircraft in the U.S. at cut-rate prices. As a result, the administration of U.S. President Donald Trump enacted a tariff of almost 300 per cent against the Bombardier aircraft sold in the U.S. In retaliation, Canada cancelled the deal to buy the 18 Super Hornets, which would have cost more than US $5 billion.

Instead of buying the new Super Hornets, the Liberals decided to acquire the used Australian jets.

In November 2018 the Auditor General's office issued a report noting that the purchase of the extra aircraft would not fix the fundamental weaknesses with the CF-18 fleet which is the aircraft's declining combat capability and a shortage of pilots and maintenance personnel.

“The Australian F/A-18s will need modifications and upgrades to allow them to fly until 2032,” the report said. “These modifications will bring the F/A-18s to the same level as the CF-18s but will not improve the CF-18's combat capability.”

“In our opinion, purchasing interim aircraft does not bring National Defence closer to consistently meeting the new operational requirement introduced in 2016,” the report added.

The Canadian Forces says it is bringing in new initiatives to boost the numbers of pilots and maintenance staff.

https://montrealgazette.com/news/canada/budget-officer-says-used-australian-fighter-jets-will-cost-canada-over-1-billion-far-more-than-dnd-claimed/

On the same subject

  • Update and new name for the Joint Unmanned Surveillance Target Acquisition System (JUSTAS) project

    November 16, 2017 | Local, Aerospace

    Update and new name for the Joint Unmanned Surveillance Target Acquisition System (JUSTAS) project

    From the Royal Canadian Air Force The Royal Canadian Air Force's Joint Unmanned Surveillance and Target Acquisition System (JUSTAS) project was established to procure an unmanned aircraft system (UAS) for the Canadian Armed Forces (CAF). The project is currently in the options analysis phase. This fall, the project's name was changed to Remotely Piloted Aircraft Systems (RPAS) project. This change is consistent with recent changes in the lexicon and classification systems of our allies, and is a more accurate reflection of how the systems are operated. As outlined in Strong, Secure, Engaged, released in June 2017, Remotely Piloted Aircraft Systems (RPAS) have become integral to modern military operations. Remotely piloted aircraft (RPA) such as the RCAF's CU-170 Heron and other unmanned aircraft have been deployed on Canadian military operations in the past and offer several advantages including the ability to remain airborne significantly longer than current strategic surveillance platforms. The use of remotely piloted aircraft also reduces the risk to CAF personnel operating the aircraft from a distance and within a lower threat environment, and will also aid in identifying potential threats to CAF personnel in area of operations. Remotely piloted aircraft will be equipped with a variety of payloads and sensors to detect items of interest in all-weather operations including into Canada's Arctic, and will be able to assist in a range of missions from persistent surveillance to supporting search and rescue, to combat operations. The RPAS project anticipates that remotely piloted aircraft can in fact be employed in all eight core missions outlined in Strong, Secure, Engaged, both domestically and overseas. Directly, the RPAS project supports initiatives 91 and 92, which state the government will also “invest in a range of remotely piloted systems” and “conduct research and development of remotely piloted land, sea and aerial capabilities.” The RPAS project Although the name has changed, the RPAS project's aim remains to provide an integrated persistent long-range, intelligence, surveillance, target acquisition and reconnaissance capability. The project will operate as part of a system-of-systems network and will be capable of providing near-real time information to tactical, operational and strategic commanders to support both domestic and deployed operations, and when required, provide a precision strike capability to support operations. The project will complement existing capabilities within the CAF, such as the CP-140 Aurora long range patrol aircraft. The RPAS project is not a platform replacement. Project phases The RPAS project is currently in the options analysis phase: Options analysis allows departmental senior management to make informed decision on the best way to implement a project, attempting to achieve the capability identified in a manner that is acceptable to the Government. During this phase, options are formulated, cost and benefits assessed, and a business case for the options developed. The definition phase of a project marks the transition from determining what should be done to deal with a lack of a capability, to determining how the preferred option will be implemented. A project is planned during this phase. Activities include carrying out a detailed review of the project requirements and risk assessment as well as costing and planning for the implementation phase and a preferred procurement strategy selected. Projects in the implementation phase have received the approvals required to enter into contracts and commit to the expending funds and resources for the project to proceed to completion. Initial operational capability, when the ability to employ the capability is first attained, is planned for the 2025-2026 fiscal year, based on direction contained in Strong, Secure, Engaged. Project costs Costs are being evaluated as part of the options analysis phase and will be further refined during the definition phase. The estimated cost will depend on the approved procurement strategy, infrastructure and the type of platform(s) chosen. Costs will include associated sensors, ground elements and infrastructure. Number of aircraft No decision has been made concerning the number of aircraft. The number of RPASs will be sufficient to meet three simultaneous lines of tasking and may be affected by the procurement strategy, infrastructure, and specific platform(s) chosen. Economic benefits The Industrial and Technological Benefits Policy, including the Value Proposition will apply to this procurement, requiring that the prime contractor on this project invest 100 percent of the contract value back into Canada's economy. The Value Proposition is the economic commitment that bidders make to Canada up front at bid time, which is a scored and weighted factor in winner selection. This becomes a contractual commitment for the winning bidder. Value Proposition requirements are tailored to each procurement to allow the government to steer investments and take advantage of the unique economic opportunities offered by each project. RPAS uses Domestically, the RPAS will provide a strengthened ability for surveillance of the maritime and northern approaches to Canada and support to search and rescue operations. The RPAS will allow the CAF to assist other government departments in support of special security events, such as international summits, aid to the civil authorities – such as response to forest fires or floods – and Assistance to Law Enforcement Agencies operations. Overseas, the RPAS will be capable of detecting, recognizing, identifying, and tracking targets of interest in complex environments and integrate with the systems required to process and fuse the collected information into actionable intelligence. RPAS precision strike capability Strong, Secure, Engaged indicates that the RPAS will have a precision strike capability – it will be capable of being armed. The ability to target and execute precision strikes ensures that if a threat is detected that it can also be addressed at that time. As with any use of weapons systems, the CAF will operate in accordance with domestic and international laws. Operations will be conducted in strict accordance with all the controls, procedures, and rules of engagement that govern the use of force or any other weapon. All of these systems would be remotely piloted by CAF personnel who would be directly involved in the decision making process to execute a strike. However, the RPA(s) will be armed only if necessary for the assigned task(s). Operating environments The RPAS will be able to operate worldwide, in all weather conditions, at any time of day with the range and endurance to cover all of Canada's airspace from any suitable operating location. The system will also need to be able to operate in low-to-medium threat environments, within joint environments with other government departments, and as part of a coalition with our allies. The Royal Canadian Air Force ensures the sovereignty of Canada through its ability to respond rapidly to any threat. The investment in the RPAS project, as outlined in Strong, Secure, Engaged, enhances the RCAF's capability to continue to provide agile, integrated air power with the necessary reach to fulfill any requirement asked by the Government of Canada. Interested suppliers should direct question related to this project to the Public Services and Procurement Canada (PSPC) contracting authority. Article: http://www.rcaf-arc.forces.gc.ca/en/news-template-standard.page?doc=update-and-new-name-for-the-joint-unmanned-surveillance-target-acquisition-system-justas-project/j9u7rzyf

  • ANALYSIS | Ravaged by war, Russia's army is rebuilding with surprising speed | CBC News

    February 24, 2024 | Local, Land

    ANALYSIS | Ravaged by war, Russia's army is rebuilding with surprising speed | CBC News

    Russia's military has suffered enormous losses in the two years since it invaded Ukraine. Multiple experts and top military commanders are warning that Moscow is finding innovative ways to rebuild, despite sanctions. It's an effort that could tip the balance on the battlefield in Ukraine and throughout Europe.

  • Boeing: le P-8A candidat pour intégrer l'aviation canadienne

    February 11, 2022 | Local, Aerospace

    Boeing: le P-8A candidat pour intégrer l'aviation canadienne

    (CercleFinance.com) - Boeing annonce qu'il compte présenter le P-8A Poseidon comme réponse à la demande d'information du Canada, Ottawa étant à la recherche d'avions de patrouille maritime à long rayon d'a... - 10/02/2022 à 16:50 - Boursorama

All news