over at Army.ca David said the $400m came from DND sources.
Figuring cost of “ a C17” is complex because you can’t really just buy “a plane”, but if you could, the base price for a spanking new one is (was in July 2006) $US 195 million.
Ref:
July 31/06: Boeing subsidiary McDonnell Douglas Corp. in Long Beach, CA received a $780 million firm-fixed-price, undefinitized delivery order contract that will provide 4 C-17 aircraft to the Royal Australian Air Force ($195 million per plane).
[External Link]
Then there is the burdened price of a current model C17, which includes “Training and Initial Spares”. Having been a manager in an Integrated Logistics Support Department for a major Defence contractor, I can tell you that phrase covers a lot of possibilities and quantities. So that means it is a variable price, with different customers buying more or less training and initial spares. Depends on your Support model and a whole raft of variables that are assessed and quantified, often very subjectively.
I have googled articles with prices ranging from $US 225m - $US 330m.
One source, usually reliable has the Canadian burdened price per CC177 + Training and Initial Spares is $US 330.8million. Convert that over to Canuck_bucks and it might explain DND sources telling David about $Cdn 400 million per aircraft.
Ref [External Link]
“Current USAF C-17 unit cost is US$330.8M including training and spares.”
The big bulk of the rest of published price is the 20 year maintenance deal, which really skews the aircraft price in the mind of John & Jane Q public.
It would be like Honda saying the price of a new Accord is $155,000 dollars – the life cycle cost of 15 years gas, insurance, repairs etc.
A complex area that neither DND or the MSM has explained in simple, easily understood language.
I would have gone with the base price number, converted to $Cdn 210 million dollars.
Of course, none of these calculations touch on the most important one. How much of that money will be spent in Quebec?
Posted at 2007-08-14 21:57:14 [PermaLink]