Federal Auditor General Karen Hogan says overall cost estimates for the country’s Future Fighter Capability Project have increased significantly since government finalized the arrangement.
The Department of National Defence originally projected in 2022 that the cost of buying F-35A fighter aircraft from the U.S. to replace its aging CF-18 Hornet fleet would be $19 billion.
CF-18 Hornet (via Canadian Air Force)
That projected cost nearly doubled to $27.7 billion by 2024. Hogan says that cost does not take into account “other essential elements needed for full operational capabilities, such as certain infrastructure upgrades and advanced weapons which would add at least $5.5 billion to the total estimated cost.”
The AG also found that the Future Fighter Capability Project was facing delays in building key infrastructure to support the aircraft.
Construction of two new fighter squadron facilities in Bagotville, Quebec and Cold Lake, Alberta to support operations is not expected to be completed until 2031, three years behind schedule.
GCStrategies probe shows little contract documentation
Meanwhile, the federal AG’s probe into the 106 professional services contracts awarded to GCStrategies Inc. found that in 21 per cent of the contracts examined, federal organizations lacked documentation showing valid security clearance for contract resources.
The Ottawa-based information-based staffing company was awarded contacts by 31 federal organizations between April of 2015 and March of 2024.
“In this audit,” says Hogan, “we found that federal organizations frequently disregarded government procurement rules that promote fairness, transparency, and value for Canadians.”
As an example, says Hogan, federal organizations are responsible for assessing the level of security required for a contract and for verifying that the people doing the work have the necessary security clearance.
The audit found that of 21 per cent of the contracts examined, organizations lacked documentation to show that they confirmed security clearances. It also found that federal organizations disregarded government policies requiring them to monitor the work performed by contractors. Organizations frequently did not have evidence of who performed the work, what work was completed, or whether the people doing the work had the required experience and qualifications.
