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.