Lifetime cost of military's Cyclone choppers set to soar past $14B, government document reveals

The lifetime cost of buying, owning and operating the air force's troubled CH-148 Cyclones is now expected to top $14.87 billion, according to a leaked internal Department of National Defence briefing document obtained by CBC News.

Most of the expense — $10 billion — is being attributed to the cost of sustaining the aircraft. The CH-148 Cyclone is unique; no other nation flies the maritime helicopter.

The estimate is contained in a spreadsheet in a submission sent to the federal Treasury Board in late 2021, when the Department of National Defence (DND) was seeking an additional $111 million to top up the program's budget. The increase eventually was approved.

The last set of figures made available publicly on the DND and federal procurement services websites estimate the overall program cost at more than $9 billion.

The newly revised figures represent the cost of acquiring the aircraft (now pegged at $3.7 billion) and sustaining and operating the helicopter (now estimated at $11.17 billion) until the late 2030s.

The federal government already has an in-service support contract with the manufacturer estimated at $5.8 billion, which makes up part of the $10 billion figure cited in the briefing document for sustainment.

It's not clear what accounts for the difference between the $5.8 billion estimate and the $10 billion figure in the briefing document, but experts suggest it could be for support beyond 2038 because Canada has a tendency to fly its aircraft well beyond their intended lifespans.

DND blamed the most recent cost increases "on inflationary pressures" and insisted it's not paying a premium for spare parts.

Despite the fact that the Cyclone procurement is a two-decade old program, the air force has yet to receive the final two helicopters out of the 28 in the original order. DND said late Thursday that it will receive the second-to-last helicopter at the end of next month and the final aircraft in 2025.

The 65-page briefing document from 2021 shows defence officials were aware at the time that completion of the final two aircraft was going to be a problem.

"There is a significant risk that the Supplier may not be able to complete the last two (2) aircraft and as a result DND/CAF may need to consider accepting those in a reduced configuration," said the briefing document, which also noted 20 per cent of the components needed to finish the helicopters have to be sourced by the manufacturer, Sikorsky.

The briefing said it was "unlikely" the contractor would be unable to find the parts it needed and went on to emphasize how important the maritime helicopters are to naval operations, now and into the future.

DND declined a CBC News request for comment from the commander of the Royal Canadian Air Force, or from other senior officials who could explain the decisions and the many other issues uncovered in the candid assessment.

Instead, it issued a written statement.