U.S. aerospace giant Sikorsky still has yet to pay the $8 million in penalties the Conservative government levied against it for failing to deliver on the Canadian Forces maritime helicopter program, now already more than three years behind schedule.
In the meantime, the Defence Department isn’t saying when it expects to receive the first of the new helicopters to replace its aging Sea Kings.
The original plan called for the first Sikorsky Cyclone helicopter to be delivered in November 2008 with deliveries of all 28 helicopters completed by early 2011.
But Sikorsky has yet to deliver a single aircraft to Canada under the $5.7 billion program.
According to government documents the U.S. firm could have faced anywhere from $36 million to $89 million in penalties for failing to meet various project deadlines and in January 2008 Defence Minister Peter MacKay said such fees would kick in if Sikorsky didn’t deliver.
But the Conservative government eventually waived those and instead a new deal was negotiated to allow Sikorsky to deliver an “interim” or incomplete helicopter. Sikorsky, however, missed the new deadline for that delivery as well and in the spring of 2011 the government hit it with an $8 million penalty – the maximum the company could face for failing to provide an interim aircraft.
That fine has yet to be paid.
Sikorsky spokesman Paul Jackson declined to comment on when the first Cyclone helicopter would be delivered to Canada or on the $8 million fine.
But Public Works and Government Services Canada notes it still intends to get the money from the company, although it has not put a timeline on that. “The $8 million in liquidated damages will be recovered in accordance with the contract,” stated an email from Public Works.
What is unclear is when the first interim helicopter will be delivered to the Defence Department.
In its attempts to help Sikorsky along, DND officials reduced the criteria for the interim aircraft to receive a military airworthiness certification. But even with that Sikorsky failed to meet its delivery timetable, according to a November 2010 briefing note for Defence Minister Peter MacKay.
The Citizen obtained that note through the Access to Information law.
The reduced criteria would have allowed for safe flying of the aircraft but the helicopter would have been restricted in what it could do. It would not have been allowed to fly over water or at night, according to the briefing note.
Sikorsky has sent an interim helicopter to Shearwater, NS but DND has not accepted delivery of that aircraft.
“The CF (Canadian Forces) will take formal delivery and assume ownership of the helicopter once a Canadian military airworthiness clearance is granted and once initial aircrew flight training is conducted,” DND noted in an email.
DND will not say when that first interim helicopter will be accepted but noted that Sikorsky has maintained that it plans to deliver maritime helicopters to Canada sometime in 2012.
Critics have noted that the firm has continued to miss its deadlines.
Sikorsky is teamed on the contract with General Dynamics Canada of Ottawa and L-3 Communications MAS Canada Inc. of Mirabel, Que.
MacKay has blamed the Liberal government for ongoing problems with the Cyclone project, noting it was the Liberals who signed the original deal. He, however, has said the Cyclone is a “great aircraft.”
The Liberals have countered that mismanagement of the Cyclone project occurred entirely under the watch of the Conservatives.
In an October 2010 report, Auditor General Sheila Fraser stated that DND “did not adequately assess the developmental nature of this aircraft, and the risks related to cost.”
But in its briefings to MacKay, DND officials have remained upbeat about the project.
In the November 2010 briefing note, DND officials stated, “excellent progress continues towards the delivery of a world class Maritime Helicopter capability.”
In addition, they noted that Sikorsky is working hard on solving the various problems because it wants to try to sell the Cyclone to both Germany and Denmark.
Sikorsky does not believe the delays dogging the Canadian program will affect its chances of selling the helicopter to other nations.
Original Article
Source: Ottawa Citizens
In the meantime, the Defence Department isn’t saying when it expects to receive the first of the new helicopters to replace its aging Sea Kings.
The original plan called for the first Sikorsky Cyclone helicopter to be delivered in November 2008 with deliveries of all 28 helicopters completed by early 2011.
But Sikorsky has yet to deliver a single aircraft to Canada under the $5.7 billion program.
According to government documents the U.S. firm could have faced anywhere from $36 million to $89 million in penalties for failing to meet various project deadlines and in January 2008 Defence Minister Peter MacKay said such fees would kick in if Sikorsky didn’t deliver.
But the Conservative government eventually waived those and instead a new deal was negotiated to allow Sikorsky to deliver an “interim” or incomplete helicopter. Sikorsky, however, missed the new deadline for that delivery as well and in the spring of 2011 the government hit it with an $8 million penalty – the maximum the company could face for failing to provide an interim aircraft.
That fine has yet to be paid.
Sikorsky spokesman Paul Jackson declined to comment on when the first Cyclone helicopter would be delivered to Canada or on the $8 million fine.
But Public Works and Government Services Canada notes it still intends to get the money from the company, although it has not put a timeline on that. “The $8 million in liquidated damages will be recovered in accordance with the contract,” stated an email from Public Works.
What is unclear is when the first interim helicopter will be delivered to the Defence Department.
In its attempts to help Sikorsky along, DND officials reduced the criteria for the interim aircraft to receive a military airworthiness certification. But even with that Sikorsky failed to meet its delivery timetable, according to a November 2010 briefing note for Defence Minister Peter MacKay.
The Citizen obtained that note through the Access to Information law.
The reduced criteria would have allowed for safe flying of the aircraft but the helicopter would have been restricted in what it could do. It would not have been allowed to fly over water or at night, according to the briefing note.
Sikorsky has sent an interim helicopter to Shearwater, NS but DND has not accepted delivery of that aircraft.
“The CF (Canadian Forces) will take formal delivery and assume ownership of the helicopter once a Canadian military airworthiness clearance is granted and once initial aircrew flight training is conducted,” DND noted in an email.
DND will not say when that first interim helicopter will be accepted but noted that Sikorsky has maintained that it plans to deliver maritime helicopters to Canada sometime in 2012.
Critics have noted that the firm has continued to miss its deadlines.
Sikorsky is teamed on the contract with General Dynamics Canada of Ottawa and L-3 Communications MAS Canada Inc. of Mirabel, Que.
MacKay has blamed the Liberal government for ongoing problems with the Cyclone project, noting it was the Liberals who signed the original deal. He, however, has said the Cyclone is a “great aircraft.”
The Liberals have countered that mismanagement of the Cyclone project occurred entirely under the watch of the Conservatives.
In an October 2010 report, Auditor General Sheila Fraser stated that DND “did not adequately assess the developmental nature of this aircraft, and the risks related to cost.”
But in its briefings to MacKay, DND officials have remained upbeat about the project.
In the November 2010 briefing note, DND officials stated, “excellent progress continues towards the delivery of a world class Maritime Helicopter capability.”
In addition, they noted that Sikorsky is working hard on solving the various problems because it wants to try to sell the Cyclone to both Germany and Denmark.
Sikorsky does not believe the delays dogging the Canadian program will affect its chances of selling the helicopter to other nations.
Original Article
Source: Ottawa Citizens
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