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Dáil Éireann díospóireacht -
Tuesday, 26 Mar 2002

Vol. 551 No. 2

Written Answers. - Defence Forces Equipment.

Alan Shatter

Ceist:

170 Mr. Shatter asked the Minister for Defence if the supply of helicopters to the Defence Forces has been delayed; the communication received by him alleging that the tendering process has failed to comply with European Union laws and regulations; if he intends to seek new tenders; if so, when; and the projected date for the provision to the Defence Forces of the helicopters required. [9919/02]

Alan Shatter

Ceist:

171 Mr. Shatter asked the Minister for Defence the position concerning the supply of new helicopters to the Defence Forces; if he intends to resubmit to tender; the position relating to Sikorsky and the other companies who originally tendered for the helicopters; the cost incurred by the State to date in the advertising and tendering processes in which the State has been engaged; the position relating to court proceedings concerning this matter that have been instituted; the action he proposes to take; and the additional expenditure that the State will incur as a consequence. [9920/02]

I propose to take Questions Nos. 170 and 171 together.

On 17 January 2002, I authorised my Department to open negotiations with Sikorsky International Operations, Inc., Connecticut, USA, for the purchase of three medium range helicopters – S-92s – for search and rescue purposes. The negotiations were also to include an option exercisable within three years by the Department for a further two helicopters for general purpose military transport. The decision followed from a detailed examination of the tenders received from the four companies: Sikorsky, USA; CHC Scotia, Scotland; EH Industries Limited, UK, and Eurocopter, France.

The offer from Sikorsky was deemed to be the most strategically and economically advantageous tender taking account of the award criteria set out for the tender competition, which were: functional characteristics; technical merit; all maintenance and on-line technical support; after sales service and warranty terms on offer; cost and ready availability of spare parts; tender prices and life cycle costs over a nominal 20 year period. I am satisfied, that on the basis of the facts presented to me, that the offer from Sikorsky would provide best value for money from the taxpayers point of view. The time frame proposed by Sikorsky would see the delivery of three search and rescue helicopters by the end of next year.

Following on from my decision of 17 January 2002, Eurocopter sought the reasons for the acceptance of the Sikorsky tender and the rejection of its tender pursuant to Article 7 of EU Public Procurement Directive 93/36/EC as amended. A reply issued from the Chief State Solicitor's Office to solicitors acting for Eurocopter in this matter on 6 February 2002. In addition, solicitors acting for Eurocopter submitted a request under the Freedom of Information Act, 1997, seeking documentation relating to the tender competition.
Eurocopter subsequently issued judicial review proceedings alleging, inter alia, that I was in breach of my obligations under Directive 93/36 as amended to furnish the characteristics and relative advantages of the tender selected. The proceedings sought certain information and documents from me in relation to the tender procedure and award. The judicial review proceedings were adjourned with consent on Friday, 15 March 2002 until the 15 April 2002 for mention.
The request under the Freedom of Information Act, 1997, from Eurocopter has been progressed as far as possible by the Department at this stage and documentation relating to the competition has been passed on to solicitors acting for Eurocopter.
My Department is continuing to deal with the Chief State Solicitor's Office on the judicial review proceedings. It is my intention to be as forthcoming as possible in this regard. However, as the matter is due to come before the courts again in mid-April I do not wish to say anything further at this stage. I should say, however, that to date no proceedings have been issued challenging my decision to open contract negotiations with Sikorsky.
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