UPDATED AT 2:05 AM EST Monday, Nov. 24, 2003
Intrigue swirls as copter bid hits key stage
By DANIEL LEBLANCFrom Monday's Globe and Mail
Ottawa — Ottawa's $3-billion plan to buy new military helicopters is awash in a swirl of rumours that at least one, and possibly all three, interested manufacturers will be disqualified this week, leaving the drawn-out process in disarray.The decade-old effort to replace the 40-year-old Sea King helicopters will reach a key point this week, when the federal government announces whether any of the three bidders has met the technical requirements. Companies that meet the requirements established by the Canadian Forces in terms of power, size, equipment and technical capacity will be able to bid on the contract. From those, the government will pick a winner based on the lowest price for 28 aircraft.However, industry sources say that senior civil servants stated as late as last week that none of the companies has met all of those requirements. "We're hearing a lot of rumours out of Ottawa — and some which are stronger than rumours — that not all of the contenders have passed the pre-qualification process," said Larry McWha, a retired pilot who now acts as a consultant for helicopter consortium Team Cormorant.One helicopter in particular is thought to face a tougher battle to meet the technical requirements. The Lockheed-Martin NH-90C would likely be cheaper than its two competitors — Sikorsky's S-92 and Team Cormorant's EH-101 — but it is also smaller. While highly manoeuvrable, the NH-90C has often been criticized as not being powerful enough for duty in the Canadian Forces.However, Rod Skotty, a Lockheed-Martin vice-president, said he is optimistic that the NH-90C will meet all of Ottawa's requirements.He predicted that the government will issue its formal request for proposals in coming weeks to launch the final phase of the competition among all three manufacturers."We're hearing that we are going to comply," Mr. Skotty said. "I think everyone will be compliant."Industry officials said they are "sitting on pins and needles" as they are waiting for the final word on the technical competition, which would explain the onslaught of last-minute rumours. One lobbyist said that everyone is nervous as Ottawa's announcement on technical compliance has been slow in coming."What's holding them?" the lobbyist asked.All three companies have had to produce "risk-mitigation plans" to the government, under which they promise to fix any problems identified by the helicopter experts at the Department of National Defence. But the question is whether any company has encountered a problem that they cannot fix.Officials at the departments of Public Works and National Defence confirmed that an announcement on the technical competition is expected this week, but refused to comment on the status of the three entries.The government has to quickly replace its Sea Kings, which are once again going through mechanical problems. Two of the helicopters recently lost power for unexplained reasons.Colonel François Pion, who is investigating the incidents, said there is no problem with individual mechanical systems in the Sea Kings, such as the gearbox, the engine or the fuel system. The problem was likely caused by the interaction between these systems, he said."That makes our job, of course, very difficult because we haven't really found anything wrong with those systems separately. Now we have to look at the whole systems as they are run into specific conditions," he said.Prime Minister Jean Chrétien cancelled a government contract to buy new helicopters in 1993, saying the deal was too expensive. If the controversial file is not completed soon, it will fall in the lap of Paul Martin, who takes over as prime minister on Dec. 12.Mr. Martin has said he wants the government to purchase "absolutely the best" helicopter. Mr. Chrétien said the government should buy the cheapest aircraft that meets minimum requirements.
Intrigue swirls as copter bid hits key stage
By DANIEL LEBLANCFrom Monday's Globe and Mail
Ottawa — Ottawa's $3-billion plan to buy new military helicopters is awash in a swirl of rumours that at least one, and possibly all three, interested manufacturers will be disqualified this week, leaving the drawn-out process in disarray.The decade-old effort to replace the 40-year-old Sea King helicopters will reach a key point this week, when the federal government announces whether any of the three bidders has met the technical requirements. Companies that meet the requirements established by the Canadian Forces in terms of power, size, equipment and technical capacity will be able to bid on the contract. From those, the government will pick a winner based on the lowest price for 28 aircraft.However, industry sources say that senior civil servants stated as late as last week that none of the companies has met all of those requirements. "We're hearing a lot of rumours out of Ottawa — and some which are stronger than rumours — that not all of the contenders have passed the pre-qualification process," said Larry McWha, a retired pilot who now acts as a consultant for helicopter consortium Team Cormorant.One helicopter in particular is thought to face a tougher battle to meet the technical requirements. The Lockheed-Martin NH-90C would likely be cheaper than its two competitors — Sikorsky's S-92 and Team Cormorant's EH-101 — but it is also smaller. While highly manoeuvrable, the NH-90C has often been criticized as not being powerful enough for duty in the Canadian Forces.However, Rod Skotty, a Lockheed-Martin vice-president, said he is optimistic that the NH-90C will meet all of Ottawa's requirements.He predicted that the government will issue its formal request for proposals in coming weeks to launch the final phase of the competition among all three manufacturers."We're hearing that we are going to comply," Mr. Skotty said. "I think everyone will be compliant."Industry officials said they are "sitting on pins and needles" as they are waiting for the final word on the technical competition, which would explain the onslaught of last-minute rumours. One lobbyist said that everyone is nervous as Ottawa's announcement on technical compliance has been slow in coming."What's holding them?" the lobbyist asked.All three companies have had to produce "risk-mitigation plans" to the government, under which they promise to fix any problems identified by the helicopter experts at the Department of National Defence. But the question is whether any company has encountered a problem that they cannot fix.Officials at the departments of Public Works and National Defence confirmed that an announcement on the technical competition is expected this week, but refused to comment on the status of the three entries.The government has to quickly replace its Sea Kings, which are once again going through mechanical problems. Two of the helicopters recently lost power for unexplained reasons.Colonel François Pion, who is investigating the incidents, said there is no problem with individual mechanical systems in the Sea Kings, such as the gearbox, the engine or the fuel system. The problem was likely caused by the interaction between these systems, he said."That makes our job, of course, very difficult because we haven't really found anything wrong with those systems separately. Now we have to look at the whole systems as they are run into specific conditions," he said.Prime Minister Jean Chrétien cancelled a government contract to buy new helicopters in 1993, saying the deal was too expensive. If the controversial file is not completed soon, it will fall in the lap of Paul Martin, who takes over as prime minister on Dec. 12.Mr. Martin has said he wants the government to purchase "absolutely the best" helicopter. Mr. Chrétien said the government should buy the cheapest aircraft that meets minimum requirements.
