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In August 2013, the Department of National Defence (DND) released the “Next Generation Fighter Capability Annual Update” (“DND Update”).2 The DND Update anticipates a total project cost of $45.69 billion for a fleet of 65 F-35s, including an operating cost of $19.857 billion. The DND Update does not provide any information on the cost of aircraft other than the F-35.
Moreover, the DND Update makes the mistake of using the operating cost of CF-18s to project, on a dollar-to-dollar basis, the operating cost of F-35s. In fact, the operating cost of CF-18s is approximately one-third less than the operating cost of F-35s (as projected by the U.S. government).3
The actual operating cost of a fleet of F-35s would be $29.786 billion, leading to a total project cost of $55.619 billion. In other words, correcting just this error adds approximately $10 billion to the total project cost of a Canadian fleet of F-35s.
originally posted by: ipsedixit
a reply to: aboutface
I read your linked article and was aware of some of it already because I had looked at a couple of the Munk School studies.
It is important to look at the following diagram carefully. Our city is responsible for generating almost 20% of Canada's economic output and yet only receives 2% of its operating budget in federal grants. That's 192 million dollars out of a city budget of 9.6 billion dollars.
That is just completely outrageously unacceptable.
If the jihadis blow up Union Station, something I think is highly unlikely, having F-35s flying air cover over the city will be of small comfort.
To demonstrate that they are restarting the procurement process from scratch, Canadian officials will collect information from other plane manufacturers, including U.S.-based Boeing, maker of the Super-Hornet, and the consortium behind the Eurofighter Typhoon. They may also contact Sweden’s Saab, manufacturer of the Gripen, and France’s Dassault, maker of the Rafale.
The ballooning lifetime cost of the F-35 fighter and Ottawa’s decision to shop around for alternatives are creating panic among Canadian companies betting on supply contracts for the Lockheed Martin plane, sources have said.
The government aims to complete this reappraisal of what the fighter aircraft market can offer Canada as expeditiously as possible in 2013.
Government officials said Wednesday that Ottawa has not decided whether to call for competitive bids to supply a plane and will await the results of the options analysis.
Canada has signed no contract to buy F-35s, and while it has signalled to Lockheed Martin, the manufacturer, that it wants 65, it has no obligation to buy them.
It did sign a memorandum of understanding in 2006 that set the terms by which a country would buy the aircraft and also enabled domestic companies to compete for supply contracts for the plane.