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Originally Posted by Slava
Well I'm far from an expert on this and kind of have no idea of what I'm talking about. That being said the government claims the jets are $75million each and the US is thinking they are $130 million each.
The parliamentary officer is independent and his work was peer reviewed....so when I see that the government gives no rationale as to why the jets are going to cost them $75mm and the US $130mm I just think that they are being ignorant, or not wanting to explain how they're estimates are off by nearly double. So much for fiscal conservatism and being stewards of the budget I guess.
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However from what I've read and seen the work is based on conversations that don't involve the actual Canadian contract. They involve discussions with other nations that are buying the jets, and also with the pentagon but outside of the actual Canadian Contract.
It would be equivalent for me making a deal for a car with the dealer ship for $15,000.00 and you phoning him and asking them for the price on the same car and they give you list at $28,000.00
Also my understanding is that he added an extra decade of estimated costs which would also inflate the jet costs even though from what I understand the contracts are based around 20 years and not 30 years.
From my understanding as well the parlimentary review doesn't take into account benefits to the Canadian aerospace industry and the cost reduction for contributing to the program.
So I have doubts about the numbers that are being flung around.