€57m helicopter contract goes against expert advice

Victor

Fidelis

That's idiotic. Smith should have bought the Merlins.

Victor

You stalk me on boards, don't you?

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http://www.ireland.com/newspaper/ireland/2002/0118/704653147HMCOPTERDEALERS.html

Bidders used PR companies to help tender for €60m contract
By Arthur Beesley

The Government's decision to talk to Sikorsky ends one of the hardest-fought tender battles of recent years, writes Arthur Beesley.

At stake was the largest defence contract yet offered by the State - the three search-and-rescue aircraft will cost about €60 million. But when the supply of parts and maintenance fees are taken into account over the 30-year lifespan of the helicopters, the State's overall expenditure could amount to twice or three times the purchase price.

Therefore the deal Sikorsky is expected to hammer out with the Department of Defence in the coming weeks is highly lucrative. In addition, the State wants an option on another two helicopters for general military purposes. The US group was chosen over three other helicopter-makers short-listed by the Department, EH Industries and CHC Scotia of Britain, and French firm Eurocopter.

To support their submissions, certain companies on the short-list hired Dublin-based advisers and agents. According to a Department of Defence spokesman, certain figures acting for the bidders were probably chosen because they had "contacts" within the Defence Forces or the Department.

Sikorsky retained a Dublin-based defence contractor, Arcon Consultants. It also hired public relations firm Fleishman Hillard Saunders. An FHS director and former general secretary of the Progressive Democrats, Mr Michael Parker, handled media relations.

Controlled by businessman Mr Andy Woods and his son Mr Andrew Woods, Arcon was agent to the Austrian arms-maker Steyr when it won a contract in 1987 to supply 13,100 rifles to the Army. The deal was worth €7.62 million.

It was also agent to the US group ITT, which supplied radio equipment worth £10.5 million to the Defence Forces in 1995-1998.

The most publicised element of Sikorsky's bid was a sideline deal to place a $130 million contract with FLS Aerospace, the former TEAM Aer Lingus, to convert Boeing 767 passenger aircraft for cargo purposes. That package was supported by AIB and another US group, GE, which is also expected to place business with FLS.

While the Department said "offset" arrangements, the move to place business with FLS was something of a coup for the aircraft maintenance firm. Its plant at Dublin Airport is only marginally profitable and it is seeking 200 redundancies from its 1,600 staff due to the crisis in the global aviation business.

EH Industries is an offshoot of Augusta Westland. It engaged Irish-based aviation expert Mr J.P. Kelly, described as an "independent consultant". It also engaged PR firm Murray Consultants, in which a senior partner, Mr Jim Milton, handled media relations.

Eurocopter's Irish agent is Mr Nicholas Fitzpatrick, whose company Atron has supported many successful attempts by international firms to secure large contracts offered by the Department of Defence. Atron was agent to Casa when it secured a £36 million deal in 1991 to supply two fishery patrol aircraft to the Air Corps. The Moriarty tribunal has heard that Mr Fitzpatrick donated £10,000 to a fund to pay medical expenses in 1989-1991 for the late Brian Lenihan.

CHC Scotia operates two helicopters which run the marine search and rescue service at Shannon and Dublin.

Victor

Also

http://www.ireland.com/newspaper/ireland/2002/0118/3776113282HMSIKMARK.html

http://www.ireland.com/newspaper/ireland/2002/0118/3471883494HMS92.html

http://www.ireland.com/newspaper/ireland/2002/0118/704653147HMCOPTERDEALERS.html

http://www.ireland.com/newspaper/opinion/2002/0118/1569329597OPLEADERSIK.html

The Minister for Defence, Mr Smith, announced yesterday that negotiations would open with Sikorsky for the purchase of three helicopters, with an option for two more, as its tender had been "the most strategically ... advantageous".

Fidelis

"Mr Smith said the purchase of medium-lift helicopters was "a positive indication of the Government's commitment to ensure that all branches of the Defence Forces - Army, Air Corps and Naval Service - are fully equipped to carry out their day-to-day roles".

Eh, last time I checked, S-92's are a *bit* big for the LE Eithne. What a waste of a flight deck. It seems that Smith was either pressured into accepting the U.S. deal because of it's FLS cash injection side offer or else he's an idiot.

Buying an aircraft that hasn't even finished it's pre-production tests? That's just ludicrous.

EH are considering sueing the state

Scruff

Originally posted by Fidelis
That's idiotic. Smith should have bought the Merlins.

hey, its amazing thay are still buying any and haven't done a complete u turn or ingored the report to buy new helicopters in the first place, like they've done constantly over the last 20 years whenever a report said the defense forces were woefully under equipped.

Fidelis

Nah, ever since those Air Corps personnel lost their lives and the other Dauphins were grounded, the Government couldn't afford not to provide the military with helicopters. Good point though, I suppose it wouldn't have surprised me to hear a complete rejection of all offers.

Victor

Originally posted by Fidelis
Nah, ever since those Air Corps personnel lost their lives and the other Dauphins were grounded

Are the Dauphins actually grounded or just on restricted duty (I hear Bertie doesn't want to fly in them anymore)

Fidelis

Well I'm not sure if they're still grounded. They were however grounded immediately after the accident though weren't they? I never heard that were back in the air.

Hasn't Gormanstown stopped operating as an airfield aswell ? Similarly, Baldonnel won't be in any shape to field them, it's being refurbished soon enough.

Victor

To be honest I haven't seen a Dauphin flying since, which is what worries me. It would be normal to ground aircraft in the same maintenance group after an accident.

There are discussions to decide what to do with Gormanstown, although I don't think anything has been done yet. there was a recent proposal from a private consortium to use it as a new public airport and previous proposal to use it for flying school.

Regarding Baldonnel, the runways are about 40 years old now and I don't think they have ever been resurfaced.

I suggest that both be sold off and the the money used for the second runway at Dublin Airport (one runway is for taking off the other for landing), and transfer the Aer Corps to Dublin Airport. Leave the infrastructure in state hands at leave private operators set up alternative alternative termanii. Dublin is not at the stage that it needs two commercial passenger airports (it would actually be a set back as transfers would be very difficult).