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Government Operations committee  To answer your first question, I would have to say that we're constantly in conversation with our allies who are in shipbuilding. We are aware of what our allies are doing with the construction of large icebreakers. We are not actively talking to them about options yet. The annou

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  We awarded the design contract in February to Irving Shipbuilding, who in turn awarded the subcontract to Lockheed Martin Canada who is working with BAE Systems.

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  What I can tell you is that we've just finished the competitive process to select the design. National Defence has a budget of $56 to $60 billion. The result of the competitive process confirms that at this point, there is still [Technical difficulty--Editor] in the budget to del

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  On the results of the competitive process, which meets the requirements of the navy, yes.

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  We saw two opportunities there to mitigate the cost risks associated with this decision—not necessarily added costs, but the mitigation of cost risks. One of them is to bring the efficiency of JSS 1 into JSS 2 by giving the engineers enough time to do the design changes and to in

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  Also, I would like to add that the costs associated with the delay to the surface combatants are also quite significant. There has been an investment of cash for those decisions, but there's also a significant cost avoidance by not having layoffs and with the delay of the surface

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  When you refer to the $800-million figure, that is for the authorities that were sought when the decision was made to add the six AOPS to the program of work. That authority included the price of the ship, which is around $400 million, as well as other things. There was also $150

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  I'll just finish, if you don't mind. There was an additional $250 million associated with all six of the ships, related to inflation, exchange rates and such things. The actual price of the six ships is in the region of $400 million, but as we went to seek these authorities, the

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  What I can tell you is that the sixth ship.... Okay, I'll tell you two things. The sixth ship has been negotiated at about $400 million. We're also tracking what we refer to as the “learning curve” between ships.

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  It's taking about 33% fewer labour hours to build the second ship versus the first ship, and about 10%—

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  There is a cap for all six, but we're also tracking where the efficiencies are between ships, and like any learning curve in a shipyard environment, at some point the curve starts to flatten. In fact, it's not really just with the ship, but in other learning curves like the produ

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  It has not yet been negotiated.

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  The Coast Guard and we will be negotiating. It will be a cost reimbursable, with an incentive scheme much like the first six ships to incentivize the yard to deliver on time and on budget.

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  There was a significant gap between the end of production of our Arctic offshore patrol ship and the start of the surface combatants. There have been a number of measures to close that gap, all of which together are such that we are at a point now where there will not be massive

June 12th, 2019Committee meeting

André Fillion

Government Operations committee  There is a cost avoidance associated with.... There are three benefits for Canada. First of all, there are six Arctic offshore patrol ships for the Canadian navy. It also brings two ships to the Coast Guard earlier than any other way we could have made possible, but there's also

June 12th, 2019Committee meeting

André Fillion