Question Period Note: Auditor General report (Delivering Canada’s Future Fighter)

How can Canadians trust that Canada's Future Fighter will be delivered as promised, with the right capabilities to protect our sovereignty?

• The Government of Canada is investing in a modern fleet of fighter jets to support the operations of our Royal Canadian Air Force, now and into the future.
• These aircraft are crucial to ensuring the safety and security of Canadians by defending our sovereign airspace.
• National Defence welcomes the Auditor General’s review of our plans to deliver Canada’s Future Fighter.
• We agree with the Auditor General’s recommendations and are working to implement improvements to our internal processes.
• This includes strengthening project governance and oversight through more frequent risk reviews.
• As with any large-scale procurement, costs are best estimates, especially in the early stages of a project.
• In fact, plans are routinely monitored, updated and refined throughout the life of a project.
• This entails working closely with partners and industry to ensure that we update planning as information evolves.
• We remain committed to improving our procurement practices and thank the Auditor General for their work.
  If pressed on the F-35A procurement:
• The Future Fighter capability project is the most significant investment in the Royal Canadian Air Force in more than 30 years.
• The F-35A aircraft was chosen following a thorough and transparent procurement process.
• In light of evolving geopolitics, National Defence is conducting a review to determine whether the F-35A represents value for money for Canada.
• The F-35 review is ongoing.
• It is anticipated that this review will be finalized in Summer 2025.

• This review was conducted as a standard performance audit of government services and programs, at the AG’s discretion.
• According to the Office of the AG (OAG): “The audit seeks to determine whether National Defence developed plans to introduce the F-35A Joint Strike Fighter aircraft into service and achieved progress on them so that fighter capability would be delivered on time and on budget and would meet the government’s operational commitments to NORAD and NATO and to enforcing Canada’s sovereignty”.
• The audit covers the period from January 1, 2023, to September 30, 2024, however, the OAG also examined certain matters preceding and following this period (up to June 2025).
• The report expresses four broad concerns regarding the introduction of the F-35A, noting that:
  • delays and significant risks could jeopardize the timely introduction of the CF-35A;
  • risk management practices need improvement;
  • the project’s cost estimate has increased significantly since 2022, and does not account for all aspects of the project; and,
  • the scope of the project, as originally defined, was not sufficient on its own to make the CF-35A fleet fully operational.
• The AG’s report provides the following recommendations:
  1. National Defence should finalize its identification and assessment of risks that the Future Fighter Capability Project could face, develop clear and specific risk mitigations, and measure the effectiveness of mitigation actions.
  2. National Defence should take immediate action to complete all plans and schedules for the project to bring the F-35A aircraft into service and implement them in a timely manner.
  3. National Defence should review on at least an annual basis the Future Fighter Capability Project cost estimates and adjust them as needed to have timely and accurate information for decision-making.
  4. When reporting publicly on the established cost of bringing the aircraft into service, National Defence should include all needed elements required for achieving full operational capability of the F-35A aircraft.
• National Defence agrees with the recommendations and has already taken steps to address some of the limitations addressed by the AG. For example: National Defence has put in place an approved and updated risk management plan to formally and regularly identify, assess and review all known FFCP risks ensuring there are appropriate mitigation strategies in place.
• From a Defence perspective, most cost increases resulted from external economic factors driven by the COVID-19 pandemic, including supply chain disruptions, workforce shortages, and increased inflation and foreign exchange rates. Project costs are routinely updated internally as National Defence works closely with the industry.
• There are multiple projects in progress that support bringing the CF-35A into service. National Defence will continue to report on discrete projects to meet reporting and approval requirements.

Responsible Principals: Assistant Deputy Minister (Review Services), Assistant Deputy Minister (Materiel), Royal Canadian Air Force

June 10, 2025

Quick facts

Delivering Canada’s Future Fighter Jet Capability
* The Auditor General’s (AG) report includes four recommendations centred on improving project planning, risk mitigation, costing and transparency for the F-35A procurement.
* National Defence has agreed to all four recommendations and will implement the necessary changes by fall 2025.