Thu, Feb 10, 2011
Problems Discovered In The Contract That Was Awarded Last
Year
An $11 billion program for Search and Rescue helicopter services
in the U.K. was dumped on Tuesday after the winning contractor
owned up to irregularities in the bidding process.
Soteria Sea King File Photo
Soteria, the company which won the contract, reportedly came
forward in December "to inform the government of irregularities
regarding the conduct" of its bid team, according to a statement
from the Department for Transport. The DoT had worked with the
Ministry of Defense to tender the contract.
Soteria had planned to replace Sikorsky S-61 Sea Kings with new
S-92 helicopters. The service would have been coordinated through
the MoD and the U.K. Coastguard. However, the Wall Street
Journal and the French news service AFP report that a Canadian
firm which was part of the consortium, CHC Helicopter, apparently
had access to inside information on the project's evaluation.
In a statement posted on the Soteria website, the company
expressed disappointment in the cancellation of the program. "We
remain confident that Soteria was designated as the preferred
bidder for the SAR-H program as a result of the value, expertise,
dedication, excellence and exceptional technical solution that
Soteria can provide in leading search-and-rescue efforts across the
U.K.," the company said in its statement. "Soteria is evaluating
the government's decision and if given the opportunity is confident
that it is capable of delivering the SAR-H program and stands ready
to work with the UK government."
On its website, CHC said the issue was contained to a few
individuals operating without the company's knowledge. "CHC wishes
to make it a matter of public record that in November of last year
CHC became aware that a small number of its employees acting
without its knowledge or authorization of the company's senior
management may have violated the company's high standard of ethics
during its participation in the competitive bid process.
"As soon as CHC became aware of the perceived irregularities
it upheld those standards. It proactively and speedily approached
the government to advise them of the circumstances - without regard
to the potential consequences of raising the matter. Since then CHC
Helicopter and its partners in Soteria have co-operated fully with
the government.
"CHC has a distinguished history of service in the UK and in more
than 30 other countries around the world and we take our commitment
to ethical conduct very seriously. We look forward to continuing
our working relationship with the UK government."
That government plans an investigation into how the CHC
employees came to be in possession of the bid information. Until
then, the program is on indefinite hold.
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