Another step has been taken towards replacing the Canada's aging fleet of Sea King helicopters. The federal government quietly signed a $5-billion contract Tuesday with Sikorsky to build 28 new choppers.

Under the deal, one Sikorsky H-92, dubbed the Cyclone, will be delivered each month starting in November, 2008.

Defence Minister Bill Graham and Public Works Minister Scott Brison first announced the government's decision to buy the Sikorsky Cyclones last July in Nova Scotia.

They said buying the Cyclone was a better bargain than purchasing the larger, three-engine EH-101 Cormorant, built by a British-Italian consortium led by AugustaWestland Inc.

However, the rival bidder launched legal action in August, asking the Federal Court to force Ottawa to hand it the deal or start the decade-long selection process over again. They allege that the government's evaluation of the bids was "biased, unfair and contrary to the rules of the procurement.''

They also say that Sikorsky's helicopters face "major re-design hurdles to operate on a ship.''

The deal signed Tuesday requires Sikorsky Aircraft Corp. of Stratford, Conn., to build 28 helicopters and begin delivering one per month starting in November 2008. The company faces penalties of up to $100,000 per day, to a maximum of $36 million, if it doesn't meet the deadline.

AugustaWestland alleges that Graham "is aware that Sikorsky cannot meet the mandatory 48-month deadline.'' They say the first delivery will take at least six years, rather than four years.

None of these allegations have been proven in court.

A spokesman for the Public Works Department, which is handling the contract, said Ottawa is convinced the helicopters will be delivered on time.

"You have to appreciate that Sikorsky is a very capable manufacturer,'' said Michel Lapointe. "It has been doing this for 50 years.''

The Sea Kings won't be decommissioned anytime soon. Rather, they will be phased out gradually as the new choppers are delivered, one per month over three years.

The Sea Kings were purchased in the 1960s, making most of them older than the crews who fly them. Every one hour of flight now requires about 30 hours of maintenance.

Ten people have died in four fatal Sea King crashes over the years and mishaps have resulted in 13 aircraft being withdrawn from the original 41-helicopter fleet.