In the eye of the Cyclone

Our new maritime helicopter was supposed to have its first flight early this year; maybe it will actually fly before year's end:

Canada's new maritime helicopter should be airborne by the end of the year, but a specific date has yet to be set for its delivery to the air force.

The first Cyclone chopper was originally supposed to be delivered next month, but the $5-billion maritime helicopter project has run into delays. Some estimates indicate the choppers won't be ready to fly with the Canadian Forces until at least 2010, while some officers have been told 2013 is a more realistic date.

Paul Jackson, a spokesman for Sikorsky Aircraft Corp., said work is proceeding at full speed on building the Cyclone at the firm's Florida plant. "We're making great progress and will fly the first Cyclone before year-end," he noted in an e-mail.

But the schedule for delivering the helicopter to the Canadian Forces remains undetermined and that issue is still being discussed between Sikorsky and the federal government. Mr. Jackson would not elaborate on the reasons for the delivery delay.

The federal government and Sikorsky are also in negotiations for changes to the helicopter that were not in the original contract.

In September, then-defence minister Peter MacKay [he still is MND] said the installation of new engines and improvements to various computer systems were being looked at for the Cyclone. There have also been suggestions that a different kind of landing gear might also be needed. Since the changes are not included in the original contract for the 28 helicopters, there will be extra costs for taxpayers.

Neither the government nor Sikorsky is providing details about how much those changes will cost, but one industry official put the figure at between $100 million and $200 million, depending on the extent of the alterations...

Canada is the first customer for the helicopter [emphasis added], a military variant of Sikorsky's S-92 chopper, which is used by civilian industry.

The helicopter program involves the $1.8-billion purchase of the choppers and a 20-year support package costing $3.2 billion.

The delays in the chopper program started shortly after the contract was signed. But, at the time, Defence Department officials downplayed concerns about that problem, claiming that the November 2008 delivery date would be met.

Sikorsky's competitors, however, warned in 2004 that the company would not be able to meet the timetable since the military version of the helicopter did not exist and would have to be built and tested...

There should be a formal investigation, with the results made public, into how Sikorsky won the competition and into the subsequent management of the project. I think it disgraceful that the Liberal government of Paul Martin, the CF, and Public Works chose in 2004 to buy a paper aircraft--that still has no other buyer, an aircraft that in reality simply could not meet the contract's terms without major changes to the original specifications of the machine. It also seems that management of the project has been, to say the least, troubled (opaque too) from its inception some years after the Chretien government, as one of its first acts, cancelled the contract for the "Cadillac" (hah!) EH-101 as our new maritime helicopter. At a cost of $478.3 million.

This pork must have been a factor in 2004 [see penultimate link above]--and for keeping with the Cyclone now:

...
As part of its winning bid, Sikorsky has committed to undertaking more than $4.5 billion in industrial activity across Canada. The direct benefit of this activity for Canadians will continue long after the delivery of the last helicopter, with work on the helicopter project continuing over the next 20 years. Sikorsky has committed to partner with 170 firms, both large and small, and from our Aboriginal business community, with most regions of the country being home to significant portions of the project activity.

Sikorsky’s commitment includes more than $1 billion in Atlantic Canada—an unequivocal acknowledgment of the expertise of individuals and firms in the aerospace industry across the Atlantic region. Sikorsky’s bid also involves major activity in the West, totalling more than $390 million and involving innovative companies across the region—from Vancouver to the established industry in Manitoba. As well, Canada’s traditional aerospace centres in Ontario and Quebec will host significant portions of the project, including more than $2 billion in Ontario and $955 million in Quebec.

The procurement strategy encouraged bidders to include and involve Aboriginal businesses in their proposals. Sikorsky’s bid is very reflective of the Government of Canada’s restated commitment to developing business and training opportunities for our Aboriginal people. Work on the Maritime Helicopter Project is a great example of action in this regard, with Sikorsky committing to partner with Aboriginal businesses on upward of $37 million of activity.

Equally significant is Sikorsky’s commitment to involve Canadian small business in work on the helicopters. Indeed, its winning bid includes fully $685 million in industrial activity to be undertaken in our small businesses. This is indicative of the innovative skills and processes that exist in not only our larger enterprises, but in the small businesses that are at the heart of Canada’s economy.

Canadian efforts on this project will involve innovative companies and talented individuals from British Columbia to Newfoundland and Labrador. These industrial partnerships will mean that Canadians will participate in innovative work on a variety of initiatives, including advanced mission systems, electronics, software development, and sophisticated components that are integral to the helicopter’s design and function. Canadians will also work on components of the helicopter’s airframe and engine.

Importantly, Sikorsky’s work on the Maritime Helicopter Project represents a lasting opportunity for Canada. Firms and individuals across the country will participate in the long term support of these helicopters. Canadians will be fully involved in areas such as the maintenance and repair of the helicopters and their mission systems, and the provision of simulation and training services. Equally important are the relationships that Canadian companies will establish within the international aerospace and defence industry. In the coming years, Sikorsky will continue to work with Industry Canada to develop these opportunities for Canadian industry, and to follow through on its commitment to delivering industrial and regional benefits to Canada. Canadian involvement in this project will position our industry to access future opportunities, and for participation in other significant projects like the MHP in the years ahead.