Statement in response to the Parliamentary Budget Officer’s Fiscal Analysis of the Interim F-18 Aircraft

The Department of National Defence (DND) welcomes the Parliamentary Budget Officer’s Fiscal Analysis of the Interim F-18 Aircraft; we have a good relationship with this office, and value their work.

Overall, our costing is extremely close to that of the PBO on the majority of line items, including the acquisition of the F-18s, infrastructure, and conversion to the CF-18 configuration. The difference in the final total is largely attributable to two factors:

• First, as noted in the report itself, the PBO did not include our contingency in their calculations of “DND numbers.”
• And second, the PBO figures for upgrades of the interim fighter fleet include estimates for CF-18 combat upgrades; we are still producing options for these upgrades.

DND’s methodology for full costing has been developed over the last several years and validated in the development of the Strong, Secure, Engaged defence policy. 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 first two interim aircraft arrived in Cold Lake on February 16, and modifications have already begun to Canadianize them. We look forward to unveiling them in RCAF colours and ready for their first Canadian mission in the coming months.