Helicopter operator CHC challenges government’s €670m air-sea rescue contract

Government plans to award new contract for service to a rival

The government plans to award the contract to US group Bristow

John Mulligan

THE Irish arm of Texas-based helicopter services group CHC has launched High Court proceedings to challenge the validity of the government’s decision to name a rival as a preferred bidder for the €670m search and rescue service in Ireland.

CHC Ireland has alleged that there are a “number of flaws” related to the conduct of the tendering competition.

The government last awarded the search and rescue contract in 2012, with CHC operating the service. Its 10-year contract was valued at €500m.

Prior to that, the Air Corps had provided the rescue services.

But last month, the government said it intends to award a new contract for the service to the US-based Bristow group.

The contract – the value of which excludes VAT – will run for 10 years for helicopter services and five for fixed-wing services. After five years, the fixed-wing services can be transferred to the Air Corps.

It’s the first time that fixed-wing services have formed part of the search and rescue contract.

The contract with Bristow will provide for the day and night-time operation of four helicopter bases in Sligo, Shannon, Waterford and Dublin.

Both the helicopter and fixed-wing elements of the contract can be extended by the government to 13 years.

The government said Bristow was selected as preferred bidder following a “comprehensive procurement project undertaken by the Department of Transport” that included an initial market engagement process, a prequalifying process, an initial request for tender, a negotiation process, and final evaluation of a best and final offer tender from the shortlisted bidders.

But CHC is now challenging the planned contract award.

“CHC Ireland has submitted a tender which it believes is innovative and represents the best value to the taxpayer and the best outcome for the Irish Coast Guard Helicopter Search and Rescue Service,” according to the group.

“Foremost in our thoughts are the staff who provide the service and the people who rely on it,” it added.

“In view of the strict time limits in Irish law for taking steps to protect our rights we were left with no option but to initiate proceedings to challenge the outcome of the process,” noted a statement from CHC.

In 2013, Bristow was awarded a £1.6bn (€1.9bn) search and rescue contract in the UK.

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