MacKay says chopper deal 'worst' in Canada's history


mentalfloss
No Party Affiliation
#1
MacKay says chopper deal 'worst' in Canada's history

Defence Minister Peter MacKay called Canada's deal to buy Sikorsky naval helicopters, "the worst procurement in the history of Canada," at a press conference at the Irving Shipyard in Halifax Tuesday.

Canada's long-promised fleet of new Sikorsky naval helicopters, already four years late and $300 million over budget, likely won't be delivered and ready for combat for up to another five years, informed industry sources told CBC News at the begining of July.

MacKay was in Halifax on Tuesday to announce a $9.3-million contract to the Irving-owned yard to study the designs of Arctic patrol vessels.

Responding to a question from a reporter about the delays with the new helicopter fleet, MacKay said the Department of Public Works is pushing as hard as possible to deliver the already delayed aircraft.

"Unlike shipbuilding, that was a brand new design that was put in place through negotiations by a prior government. We inherited this contract," MacKay said.

"This is an example of how procurement can go badly wrong. This is the worst procurement in the history of Canada, including the $500-million cancellation costs that are attached to the Maritime helicopter program and then the costs of further maintenance to fly 50-year-old helicopters. They're going to go right out of aviation service and into the museum in Ottawa. And that's not a joke."

In 1992, the Conservative government under Brian Mulroney signed a contract worth $4.8 billion to buy 50 EH-101 helicopters from the Anglo-Italian consortium European Helicopter Industries Ltd.

But when the Liberals took power a year later, they axed the deal, which cost $500 million in cancellation fees.

MacKay went on to say the government is focused on getting the new helicopters delivered.

"I saw a Sea King aboard the Charlottetown when we were in the Gulf and that aircraft has been replaced piece by piece, almost in its entirety, so there is urgency to get the Maritime helicopter program on track," he said.

"We know it's behind schedule but the helicopters themselves are flying, as you've seen they're doing sea trials over the harbour. They don't have all the onboard equipment that is required for us to take possession yet."

Last month, Connecticut-based Sikorsky missed its latest contract deadline to finish delivering 28 sleek, state-of-the-art Cyclone maritime helicopters to replace Canada’s nearly 50-year-old fleet of increasingly unreliable Sea Kings.

MacKay says chopper deal 'worst' in Canada's history - Nova Scotia - CBC News
 
CDNBear
+3
#2  Top Rated Post
I agree with MacKay. Besides the cost and time over runs. The reinventing of the wheel that our procurement people are known for. As they try and make something already a proven platform, into something uniquely Canadian. Have come back to bite us in the ***.

Why can't we get one gov't that can get this sh!t right?
 
ABconservative
Conservative
#3
If we dont get new equipment for the Canadian Forces we will never get a chance to stand up for this nations beliefs. The same goes for the CF-35 project. The CF-18s are becoming out of date and the US is phasing them out . So why shouldnt we ? Now I know what you are thinking ... Canada is not a military superpower like the United States but we have to be able to defend ourselves without the US.
With the US debt crisis reaching a trillion dollars this month just for 2012 and there defence budget getting slashed up to 1.2 billion dollars. They can't always protect us.
 
tay
#4
Canada has reached an agreement with United Technologies Corp's Sikorsky Aircraft unit to reactivate a C$5 billion ($4.7 billion) deal to buy 28 helicopters that had been beset by delays and was almost scrapped by Ottawa.


Canada signed a contract in 2004 for Sikorsky's Cyclone helicopters to replace its ageing fleet of Sea Kings. But after delays and complications, Ottawa announced last September that it might scrap the deal and consider other options.


The Conservative government now says it has accepted the recommendations of a third-party report for a different project model and governance structure.


It reached an agreement with Sikorsky on Dec. 31, which will form the basis for formal contract negotiations. Sikorsky also agreed to pay Canada $88.6 million in liquidated damages for non-delivery.


"Under the new terms established in the Principles of Agreement, Sikorsky has committed to deliver the needed helicopter capability at no additional cost to Canada," Diane Finley, Canada's minister of public works and government services, said in a statement.
"In addition, the Government of Canada will only issue further payment to Sikorsky upon capability delivery," she said.


Canada will see delivery of helicopters with enough capability to allow the government to begin retiring its old helicopters in 2015. Sikorsky will enhance those capabilities to produce "fully capable" CH 148 Cyclone helicopters in 2018.


Byron Callan, analyst with Capital Alpha Securities, said the deal was not material for a company the size of United Technologies, but it would allow Sikorsky to move past an issue that had been a source of concern.


"It's a Christmas present come late," Callan said. "It allows them a clean slate to start the new year."
Sikorsky officials welcomed the deal.


"We are very pleased to have reached this agreement with the Crown and look forward to a contract amendment while we continue to move the program forward," said spokesman Paul Jackson.


Sikorsky has so far provided just a handful of Cyclones for training purposes, and said last year that some of the delays were caused by major modifications requested by Canada.


On Friday, the company apologized for the delays but said it was confident the new plan would succeed.


"As the pre-eminent helicopter manufacturer in the world, we regret that we have not executed this program to the satisfaction of the Government of Canada and that no aircraft were delivered in 2013," said Sikorsky President Mick Maurer.






UPDATE 2-Canada says back on track to buy Sikorsky helicopters | Reuters
 
taxslave
No Party Affiliation
#5
About time.
 
damngrumpy
No Party Affiliation
#6
We need choppers and we need them now. We also apparently needed jets and
that was screwed up too, We bought some trucks that were useless and we got
those subs from Britain. We need some people that know what the hell they are
doing then we need equipment
 
Spade
Free Thinker
#7
Here is a candle to light you to bed.
Here is a chopper to chop off your head.
- Military procurement nusery rhyme
 
Walter
+1 / -1
#8
Mulroney ordered perfectly good choppers but Cretin wouldn't have it.
 
Goober
Free Thinker
#9
Quote: Originally Posted by WalterView Post

Mulroney ordered perfectly good choppers but Cretin wouldn't have it.

Walter to be fair, how well has Harper been about getting new equipment.
Look at the procurement times.
 
Walter
+1 / -1
#10
Quote: Originally Posted by GooberView Post

Walter to be fair, how well has Harper been about getting new equipment.
Look at the procurement times.

To be fair we'd have the bloody choppers by now if Cretin hadn't had a pique.
 
Goober
Free Thinker
#11
Quote: Originally Posted by WalterView Post

To be fair we'd have the bloody choppers by now if Cretin hadn't had a pique.

Not what I asked- the ships- a gift of billions to the Irving's.
They have chopped the operational training budget- yest Contractors have exploded in Ottawa.
Old stats- nearly 1 in 5 Military were Officers.
Wheeled transport- Nada.
Years to fix the chopper issue.
 
Nuggler
#12
They were good enough to give him a ride in from a fishing trip. What's he whining bout.
 
Retired_Can_Soldier
#13
I agree with Bear. If we are going to arm and equip our military we need stop with the bullsh!t Canadian label and get the best bang for our buck. That doesn't mean awarding contracts to Bombardier. It means doing the research, aligning it with Nato and making the purchase. The money we waisted on that Italian hunk of junk LSVW when we could have bought Humvees with large surplus of spare parts was a complete travesty. Maybe if we shot a few of the bureacrats we could expedite the process a little faster.
 
Cliffy
Free Thinker
#14
Quote: Originally Posted by Retired_Can_SoldierView Post

I agree with Bear. If we are going to arm and equip our military we need stop with the bullsh!t Canadian label and get the best bang for our buck. That doesn't mean awarding contracts to Bombardier. It means doing the research, aligning it with Nato and making the purchase. The money we waisted on that Italian hunk of junk LSVW when we could have bought Humvees with large surplus of spare parts was a complete travesty. Maybe if we shot a few of the bureacrats we could expedite the process a little faster.

Lock and load Dude! The job is yours.
 
Retired_Can_Soldier
#15
Quote: Originally Posted by CliffyView Post

Lock and load Dude! The job is yours.

Will you visit me in Jail Cliffy.
 
Cliffy
Free Thinker
+1
#16
Quote: Originally Posted by Retired_Can_SoldierView Post

Will you visit me in Jail Cliffy.

If they put you in a BC jail.
 
tay
#17
Tories have already spent $1.7B on troubled chopper program





Chopper Deal Too Big To Cancel?






Tories spent $1.7 billion on troubled chopper program | CTV News








Chronology Of The Troubled Effort To Replace Canada's Navy, Rescue Helicopters






Chronology Of The Troubled Effort To Replace Canada's Navy, Rescue Helicopters
 

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