PETER LA FRANCHI / CANBERRA
Bell Helicopter Textron is challenging the Australian Government's nomination of Eurocopter as the preferred supplier of 22 armed reconnaissance helicopters for its army, claiming it is forfeiting local industry benefits worth up to A$1.95 billion ($970 million).
A new study of the Bell and Eurocopter bids for the project, prepared for Bell by Canberra-based ACIL Consulting, claims that the Eurocopter bid offers new work worth a maximum of A$45 million per year compared with A$65 million per year proposed by Bell.
The study also alleges that Eurocopter may have misrepresented the scale of European production orders for its Tiger helicopter in its bid. The study quotes officials from EADS, which owns Eurocopter, as saying that combined French and German orders for Tiger already total 160 aircraft. French orders, the ACIL study claims, total only 37 aircraft between 2003 and 2008, while German military orders "may be cut".
EADS Australia rejects the claims, saying that ACIL and Bell do not understand the French and German defence acquisition systems and are not privy to the specifics of the Eurocopter bid for the Australian army requirement.
Australian defence minister Peter Reith announced the selection of the Eurocopter Tiger helicopter for the army at the beginning of August, describing the company's bid as a "stand-out" solution. "It's in Australia's interests we buy on the basis of value," he said.
The Australian Department of Defence (DoD) hopes to sign a $1.3 billion contract with Eurocopter later this month. Bell, offering AH-1Z Cobra helicopters, finished second in the competition. Boeing was third with the AH-64 Apache. If negotiations with Eurocopter fail, Bell could be invited to negotiate a deal.
EADS Australia head Gilbert Dangleterre says that ACIL's overall assessment is wrong. He says Eurocopter will release full detailsof its industry package once a firm contract is signed.
Reith has directed the DoD not to make any public response to the Bell claims. DoD officials privately say that while Bell continues to lobby against Eurocopter, it has not sought a second formal investigation of the tender process, an essential prerequisite to any move to overturn selection of the Tiger.
Bell was initially knocked out of Australian competition in mid-1999 and appealed against that decision. A subsequent review resulted in a decision to reopen the tender process, with Bell invited back in.
The study claims that if the project were handed to Bell, local industry content linked to production of AH-1Z helicopters would create 155 medium- term jobs in Queensland compared with 150 jobs offered by Eurocopter. Another 172 long-term jobs would be created by Bell through support arrangements for the helicopter and a proposal to produce Eagle Eye unmanned aerial vehicles for export with revenues forecast at $1.6 billion.
Dangleterre says Bell's market forecasts for the Eagle Eye are not realistic. It is still in development with zero sales, he adds.
Source: Flight International
