Ottawa opens tendering on Sea King replacements

By DARREN YOURK
Globe and Mail Update

On the 100th anniversary of the Wright brothers' first flight, the Canadian
Forces moved one step closer to grounding their own aged flying machines
for good.

Minister of National Defence David Pratt and Minister of Public Works and
Government Services Stephen Owen officially issued a call for tenders on
the project to replace the aging Sea King helicopter fleet Wednesday,
releasing a statement that said they are looking for proposals for the
purchase of 28 fully integrated maritime helicopters. The contract is
believed to be worth $3-billion.

"The procurement of new maritime helicopters will give Canadians a
modern, cutting-edge helicopter that will serve our defence requirements
for years to come," Mr. Pratt said in a statement. "I am proud of
the work done by the dedicated men and women involved with the project and
am confident that the end result will provide our Forces with a world-class
helicopter."

The deal would also include a simulation and training suite, integrated
logistic support, ship modifications, and a 20-year in-service support
contract. Three companies are believed to be competing to replace the Sea
Kings: Agusta-Westland with its EH-101, Lockheed-Martin with the NH-90, and
Sikorsky with its S-92.

The request for proposals will close on April 30, 2004, and the Maritime
Helicopter Project Office, together with officials from Public Works and
Government Services, will conduct a detailed evaluation of each bid. The
winner is expected to be announced in the summer of 2004.

"The Maritime Helicopter project represents a significant investment
by the Government of Canada," Mr. Owen said. "I am confident in
the process and am sure that the winning bidder will provide Canadians with
a helicopter that will serve Canada with distinction."

Replacing the 40-year-old Sea King fleet is a top priority for Prime
Minister Paul Martin, who inherited the long-standing issue from Jean
Chretien. Mr. Chretien cancelled a Mulroney-era contract to buy new
helicopters in 1993, and his government spent 10 years in office without
ever issuing a replacement contract. The air force's fleet of Sea Kings is
currently operating under tight restrictions after two helicopters suffered
still-unexplained losses of power recently.

The federal government announced Tuesday that all major capital
expenditures will be frozen until they can be reviewed by a cabinet
committee, but the helicopter deal was exempted. "There was a specific
discussion in cabinet on the subject of the helicopters," Mr. Pratt
said Tuesday. "As soon as the helicopter project is ready to go, it
will be exempt from this. The helicopters are seen as a very, very
important capital project by the Government of Canada."


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