Sikorsky signed a $5 billion contract nearly four years ago to replace Canada's aging fleet of Sea King helicopters with H-92 Cyclone helicopters starting in January 2009. But recent published reports in Canada claim deliveries could be delayed by up to 30 months and that the company is seeking as much as $500 million more to do the job.
Michael Fortier, Canada's minister of public works and government services, told The Globe and Mail newspaper that Sikorsky has to live up to its $5 billion contract.
"Where I come from, a price is not an approximation, it's not an estimate. In this case, the price was set at contract signing," he said.
Jacques C. Gagnon, director of communications for the minister, said that the comments were made in response to questions from Canadian journalists and based on "discussions in the public domain" that Sikorsky was behind schedule and seeking additional funding.
"It is four years after the contract was tendered and all of a sudden hell breaks loose," Gagnon said.
Fortier has ordered staff to look into what legal recourse is available to the Canadian government and also to examine the specifications of the contract to see what
Paul Jackson, a spokesman for Sikorsky, said that the company is "continuing to discuss options with the Canadian government to get these Cyclone helicopters built and fielded as fast as possible."
Jackson said the company is concerned that the program has fallen behind schedule, but would not discuss publicly the causes for the delay. He also declined to discuss publicly the funding concerns.
Sikorsky signed contracts in November 2004 worth an estimated $4.5 billion to provide and maintain 28 Sikorsky H-92 maritime helicopters to replace the 40-year-old Sea King helicopters in service with the Canadian Forces.
The H-92 Cyclones are being designed to perform a multitude of missions, including: surface surveillance and control, subsurface surveillance and control, search and rescue, passenger and cargo transfer, medical evacuations and tactical transport in support of national, North American and international security.
Peter Urban, who covers Washington, can be reached by e-mail at purban@ctpost.com.





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