Graham Warwick/WASHINGTON DC
Canada has negotiated a lower price and better offsets for its purchase of 15 EH Industries AW520 Cormorant search and rescue (SAR) helicopters.
The final contract is worth C$579 million ($404.8 million), down by over C$13 million from the maximum value announced when the Cormorant was selected. Industrial and regional benefits (IRBs) have been increased by C$36 million, to C$629 million.
The bulk of the savings come from the Canadian Forces' decision to accept delivery at Agusta's factory in Italy, says Frank Bamford, business director of Team Cormorant, the consortium formed to bid for the Canadian SAR helicopter. The team had offered to ship the Cormorants to a Canadian location for completion and delivery, but at additional cost.
Bamford says that nothing has been removed to reduce the price. "We could not alter any rating or placing in the competition," he says, referring to the Canadian selection process, which ranked the EH101-based Cormorant ahead of the Boeing Chinook, Eurocopter Cougar II and Sikorsky Maplehawk in the SAR helicopter contest.
The Agusta/Westland joint venture has increased its IRB commitment to about 108% of contract value, up from its original offer of 100% offset. Bamford says that 50-60% of the IRBs have been committed to already. Bombardier, Bristol Aerospace and Canadian Helicopter are already part of Team Cormorant, and Canadian Marconi and Litton Canada are supplying avionics for the EH101.
Source: Flight International
