F-35 program facing skyrocketing costs, pilot shortage and infrastructure deficit: AG report
Canada’s plan to purchase 88 U.S.-built F-35 fighter jets is facing significant challenges, according to a new report from Auditor General Karen Hogan. The audit found that the program is plagued by skyrocketing costs, a shortage of trained pilots, and a lack of critical infrastructure.
The cost of the F-35 program has risen to $27.7 billion, up from the $19 billion initially announced by National Defence. This increase is due to rising inflation, fluctuations in foreign exchange rates, and heightened global demand for munitions. Additionally, unforeseen infrastructure complexities have significantly impacted cost estimates.
Construction and outfitting of the fighter squadron’s main operating bases in Cold Lake, Alberta, and Bagotville, Quebec, are more than three years behind schedule. The design needed to be reworked to accommodate specific requirements of the F-35, causing delays. National Defence had to develop an interim operations plan involving movable facilities and renovated existing facilities.
The audit also highlighted the need for more trained pilots to make the CF-35 fleet fully operational. Moreover, the delivery of the F-35s has been delayed, with only 12 jets expected in the short term, instead of the initial 16. The remaining 80 aircraft are set to be delivered starting in 2028, with the last jets arriving in 2032.
In response to the challenges identified in the audit, Defence Minister David McGuinty has pledged to integrate the Auditor General’s recommendations and ensure the best value for Canadians. The government will update and refine the implementation plan, review cost estimates annually, and improve communication on the F-35 project.
The audit also examined contracts awarded to GC Strategies for services such as the ArriveCan app. It found that federal organizations did not always follow proper processes when awarding contracts to GC Strategies. In some cases, the firm’s work proceeded without the required security clearances, and timesheets were poorly documented or not collected at all.
The report concluded that value for money was not obtained for the contracts awarded to GC Strategies and other companies associated with its co-founders. The federal government needs to ensure that procurement rules are understood and followed to prevent similar issues in the future.
Overall, the audit highlights the challenges facing Canada’s F-35 program and the need for proper management and oversight to address these issues. As Canada considers potential alternatives to the F-35, it will be crucial to carefully evaluate all options to ensure the best outcome for the country’s defense capabilities.
