OTTAWA, ONTARIO--(Marketwired - Dec. 13, 2013) - The Honourable Diane Finley, Minister of Public Works and Government Services and the Honourable Robert Nicholson, Minister of National Defence, today announced the consolidation of the Department of National Defence's (DND) headquarters at the Carling Campus. The move will achieve $750 million in net savings in accommodations costs over a 25 year period, plus an additional $160 million for DND in cost avoidance.
"The consolidation will reduce DND's current footprint from 40 offices to 7 major locations and achieve $750 million in net savings over 25 years," said Minister Finley. "We have taken the time needed since the purchase to thoroughly analyze DND's requirements, identify further savings from original cost estimates and to ensure that this move provides the best value for Canadian taxpayers."
The project was vetted by two independent third parties, Ernst & Young and Altus, who both supported the consolidation. In their report, Altus Group Limited concluded that "There is a compelling argument in favour of the consolidation as providing the lowest cost and best value for the Crown."
This consolidation represents an exciting milestone in DND's renewal," said Minister Nicholson. "Defence savings achieved from this consolidation will help bolster renewal efforts aimed at reinvesting in front-line services as opposed to corporate overhead."
With a one-time refit investment of $506 million completed over 6 years, DND occupancy of the Carling Campus is expected to generate net savings in excess of $750 million over a 25 year period as compared to maintaining the status quo in leased accommodation. DND and SSC will fund the project from existing internal resources and no new funds will be required.
The additional $160 million in cost-avoidance will be achieved as a result of reduced DND expenditures for administration and general overhead from the consolidation of 8500 personnel in one location. The project will be conducted in a three-phased approach, starting this month; DND and Canadian Armed Forces personnel will begin to move to the campus in late 2015 and the project is expected to be completed by 2019.
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