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Dáil Éireann díospóireacht -
Wednesday, 19 Jun 2002

Vol. 553 No. 3

Priority Questions. - Defence Forces Contract.

Dinny McGinley

Ceist:

5 Mr. McGinley asked the Minister for Defence the position regarding the purchase of Sikorsky helicopters for use by the Air Corps; and the position concerning litigation taken by unsuccessful tenders following his announcement of the awarding of the contract to Sikorsky. [14044/02]

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 a detailed examination of the original tenders received from four companies – Sikorsky, USA; CHC Scotia, Scotland; EH Industries Ltd., UK; and Eurocopter, France – and an examination of the best and final prices submitted by the four companies in December 2001.

I decided to seek best and final prices from each of the four tenders because of the expiration of the validity of all tenders and taking into account the changed international situation following the terrible events of 11 September. None of the best and final price submissions from the four companies made reference to objections the companies may have had with the use of this procedure and neither did they indicate that their submissions were made without prejudice to such objections.

Following the submission and examination of the best and final prices, I deemed that the offer from Sikorsky was 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 was satisfied 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.

Following on from my decision of 17 January 2002, Eurocopter instituted judicial review proceedings contesting the decision to open negotiations with Sikorsky. The matter is due for mention in the High Court next Monday, 24 June. I assure the House that I am doing everything I can to expedite the completion of the contract with Sikorsky and to have the new helicopters delivered to the Air Corps at the earliest date.

What are the implications of the litigation being pursued by one of the unsuccessful companies for the purchase of these much needed helicopters for our air and sea rescue service? Has the formal contract yet been signed by Sikorsky for the purchase of the helicopters? Will the impending High Court case delay the purchase? Has the Minister plans to overcome such a delay given the urgent need to have the helicopters delivered as soon as possible?

I share Deputy McGinley's concern regarding the need for early delivery of the search and rescue helicopters. We are anxious that the options open to me are taken to speed up delivery. I am, as the Deputy will appreciate, restricted by the judicial review proceedings, which will proceed on 24 June. It is not possible to sign contracts pending the outcome of the proceedings. In the meantime it is being ensured the best arrangements are made for search and rescue services though civil contracts for the entire country.

The Deputy will be aware that we are also looking at the leasing of aircraft for the north-west. The delay is unfortunate and is not something that I can control. I have sought to initiate some diplomatic moves in order to deal with this matter more expeditiously but this has not been successful as yet. This matter is before the courts and this limits my capacity to intervene in any way, but obviously I am concerned at the delay.

The Minister has indicated that he has initiated discussions regarding the leasing of aircraft. I have first-hand experience of the excellent work being carried out by the air and sea rescue services. They are always willing to provide a service of mercy flights to the islanders of Donegal. I ask the Minister to convey my gratitude and that of my constituents to the Air Corps for the excellent service which it provides.

The Deputy refers to the very important emergency service provided by the Air Corps. It highlights the role played by the Defence Forces in providing emergency services. They provide a considerable range of services skilfully and economically. I will convey the Deputy's comments to the Air Corps.

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