2.77

National Defence should refine its estimates for complete costs related to the full life cycle of the F-35 capability, and provide complete estimated costs and the supporting assumptions as soon as possible.  Furthermore, National Defence should regularly provide the actual complete costs incurred throughout the full life cycle of the F-35 capability.   

Agreed.  National Defence will continue to refine its full life-cycle cost estimates for the F-35 capability and commits to making the estimates and actual costs of the F-35 available to the public.    

The Government of Canada’s “Seven-Point Plan” calls on National Defence, through the National Fighter Procurement Secretariat, to provide annual cost updates for the F-35A to Parliament.

Fall 2012 (Completed) and annually thereafter.

In November 2012, an independent consulting firm, contracted by TBS, developed a full Life Cycle Cost Framework drawing on international best practices. DND then produced a full Life Cycle cost estimate for the F-35 capability based on that Framework.  The DND Life Cycle cost estimate was reviewed by an independent consulting firm, contracted by TBS, and found to be compliant with the Framework. The DND life-cycle cost estimate was published and presented to Parliament as part of the Next Generation Fighter Capability Annual Update, in December 2012. The Government of Canada’s “Seven Point Plan” stipulates that updates to the life cycle costing be presented to Parliament on an annual basis.  The next update to the life cycle cost estimate was published on the National Fighter Procurement Secretariat web site in August 2013.

Assistant Deputy Minister (Finance and Corporate Services)