The Canadian ship's design is similar to that of the Norwegian Svalbard which cost $5 million to design and under $100 million to build. Experts pit design as 10-20% of the final production price.
In 2007, Denmark acquired two ships for Arctic exploration for $105 million. The Irish Navy is currently building its fleet for $125 million. Both price-tags include design costs.
Ambrose, MacKay and Canadian officials currently can't explain why Canada is paying so much more for the same ships other countries have bought for three times less.
When CBC journalists contacted Ambrose, she referred them to officials who stated they have no idea where the $288 million is going.
When MacKay was asked, he responded, "other shipyards are wrong."
An official with Iving Shipbuilding who refused to be identified commented on why the design price is "obviously vastly higher" saying, the process "is going badly wrong ... [it] will be much more expensive than the F-35 acquisition. It has the potential to be an even bigger fiasco."
Recall the F-35 fiasco rapidly increased in price and at one point costed $35 billion. Remember that other countries only paid at most $125 million for the price of their ships.
Another official from the company said, "the numbers are staggering ... There is no rhyme or reason for such a vast amount of money, especially not without clarity." He said a design price of $10-15 million is acceptable but the $288 million taxpayers are shelling out for the project is not. The expert argued that based on the designs of the Svalbard, the needed re-factoring wouldn't cost more than $20 million.
"I have no idea where you find another $200-plus million [just for the design.] That's more than the estimated value of building the ship. As a taxpayer, it doesn't make sense."
Expert with Irving Shipbuilding who preferred to remain Anonymous