The Government's purchase of new helicopters for the Air Corps has received a further setback with confirmation that the French aircraft company, Eurocopter, is challenging the terms under which the 60 million euro (£47.2 million) contract was awarded to US company Sikorsky.
The Minister for Defence, Mr Smith, was last night awaiting advice from the Chief State's Solicitor's Office in relation to a request from Eurocopter that the negotiations be put on hold. The company has threatened to issue a High Court injunction preventing the Minister from signing the contract unless it receives assurances that its request for information will be met beforehand.
A spokesman for Eurocopter told The Irish Times last night it was seeking a "letter of comfort" from the Department in response to correspondence it has submitted within the past week.
The company wants to review the criteria which led to the decision under the Freedom of Information Act. Eurocopter has also challenged the decision to award the contract to Sikorsky under EU competition rules.
Last week Mr Smith authorised his Department to open negotiations with Sikorsky for purchase of three medium-range S-92 helicopters for search and rescue - with an option to buy another two for general military transport. Eurocopter and EH Industries Ltd, two of the three other companies on the shortlist, expressed disappointment at the decision which came after a final offer was sought from all four bidders before Christmas. The Department of Defence denied the offer of a massive contract to FLS Aerospace in north Co Dublin by Sikorsky had influenced the choice. "There was no offset deal," a Department spokesman insisted yesterday. Eurocopter had been the preferred choice of the expert group set up to consider the tenders, but Mr Smith said all three helicopters, the Eurocopter Cougar, the EH 101 and the Sikorsky S-92, met the technical specifications.
