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Cyclone helicopters delayed for third time
The Canadian Press
Date: Wednesday Nov. 24, 2010 7:07 AM ET
HALIFAX There has been a third delay in the delivery of a new navy helicopter slated to replace a fleet of decades-old Sea Kings, the federal government said Tuesday.
A spokeswoman for Public Works Minister Rona Ambrose says U.S.-based Sikorsky has informed the federal government it won't meet a Nov. 30 deadline for delivery of early versions of the Cyclone helicopters used for testing and evaluation.
Rebecca Thompson said Sikorsky considers the delay "excusable" under its contract but Public Works will determine if any penalties should be applied. Thompson said if Ottawa rejects Sikorsky's argument, the department could implement a fine of $45,000 a day, up to a maximum of 120 days, the delivery of the choppers is late.
"When we sign a contract, we expect a contractor to deliver on time," Thompson said in an email. "This case is no different."
The federal government originally ordered 28 of the Cyclones in 2004 with a delivery date of November 2008, but it has announced delays in the more than $5-billion contract on at least two previous occasions.
In her Oct. 26 report, federal auditor general Sheila Fraser slammed the project for huge cost overruns and delays. She said the total cost of buying all of the helicopters, which operate off the decks of navy frigates and are intended to replace the aging Sea King fleet, would likely top $5.7 billion and come in seven years late.
Thompson said she did not know when the training and evaluation helicopters would be available, but added that Sikorsky said it is sticking to its plan to begin delivering the fully-equipped, final version of the helicopters by June 2012.
A spokesman for Sikorsky said the delay was beyond the company's control.
"We have notified the Crown that there will be a short delay in delivery of the first aircraft due to an issue outside of our control," Paul Jackson said in an email. "Our contract contains provisions for such events and we are now in discussions with the Crown in keeping with those provisions."
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