Controversial maritime helicopter programme contract agreed, but still faces legal challenge from AgustaWestland
Canada's disputed acquisition of 28 H-92 Cyclone helicopters appears to have been concluded, with the Department of National Defence (DND) last week signing two contracts worth a combined C$5 billion ($4.2 billion) with Sikorsky.
Confirmed on 23 November, the deal will be divided between the C$1.8 billion cost of acquiring the new maritime helicopter fleet for the Canadian Forces and a 20-year support package worth a further C$3.2 billion. Canada's Maritime Helicopter Programme (MHP) also includes a direct industrial offset commitment from Sikorsky worth over C$4.5 billion. The company has already identified 170 Canadian firms to place work with, according to the DND, with lead partners including General Dynamics Canada and L-3 MAS Canada, which will provide systems integration and in-service support, respectively.
However, the entire MHP acquisition remains at some risk from an ongoing legal challenge that questions the DND's selection process, which earlier this year led it to opt for the H-92 over the Team Cormorant-promoted EH101. This process was launched in September by AgustaWestland, which is waiting to hear whether its case will be referred to Canada's Federal Court for further review. An earlier legal challenge by the company played a part in thwarting Sikorsky's first military sale of the S-92 to Ireland, which in July 2002 cancelled a €12.5 million ($16.3 million) deal amid a surprise round of budget cuts.
Unless the courts decide otherwise, the Canadian Forces will accept their first H-92 Cyclone from Sikorsky no later than November 2008, after which deliveries of the aircraft will continue at a rate of one a month until early 2010. Signalling that it hopes the opposition to its selection will fail, the DND says: "The maritime helicopter project has faced its share of challenges, but the government of Canada and the DND are confident that it will result in an unrivalled helicopter at the forefront of modern technology".
AgustaWestland's dissatisfaction with North American helicopter procurements has widened, with the Europe-based firm charging that a list of draft requirements for the US Army's future Armed Reconnaissance Helicopter (ARH) fleet unfairly eliminates most of the competition.
Stephen Moss, president of the Italian-UK manufacturer's Virginia-based AgustaWestland Inc subsidiary, says one of the army's key performance parameters for the 368-aircraft ARH project rules out his company's A109 Power and A119 Koala designs.
The army's draft contract terms state the service must be able to load and unload two ARHfrom a Lockheed Martin C-130 transport, completing each task within 15min. This target is listed among a handful of requirements that each manufacturer must achieve, or else face disqualification. "There's only one helicopter in the world I know of that can do that," says Moss, citing the MD Helicopters H-6 Little Bird, widely considered to be the army's favoured candidate for ARH.
But Bell Helicopter contends the 15min prerequisite for the ARH competition is not unreasonable, pointing out the army already has this capability with the Bell OH-58D Kiowa Warrior. Bell also notes that it can provide the same performance with modifications to its model 407 contender.
CRAIG HOYLE / LONDON
Source: Flight International
