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Cyclone

Canadian Forces Procurement – US Export Licence Notice – CH-148 Support

Support for Sikorsky H-92 (CH-148) Maritime Helicopters  —
United States  Arms Export Licence  Certification for Canada

After one of  the most drawn-out procurement projects in history – about 25 years all told – Canada finally selected a new Maritime Helicopter in the summer of  2004. Winner was the Sikorsky H-92 which will be adopted into service as CH-148 Cyclones.[1] $5B in contracts were awarded to Sikorsky, plus General Dynamics Canada and  L -3 Comm for integrated mission systems, 20 years of support, flight and  maintenance training, and simulators, etc.  Although the Cyclone purchase involves commercial contracts, US approval is required for the export of  military technology (including any adaptations of civilian aircraft), services and support expertise, etc.

All such work  must receive approval  from the United States Congress  to receive an export licence certificate.  The  US  Department of  Defense's  Defense Security Cooperation Agency notifies Congress of potential export licences. The text of its H-92 sale/support notice (as published on DSCA's website) is reproduced below:
______________________________________________

  Defense Security Cooperation Agency
  Certification Transmittal
  On the web: http://www.dsca.mil
  Media/Public Contact: (703) 601-3670
  Date: 07 April 2006

______________________________________________

Transmittal No. DDTC 002-06

CANADA   –   Sikorsky H-92 Helicopter Sale and In-Service Support

United States Department of State
Washington, D.C. 20520
Apr -7 2006

Dear Mr. Speaker:

Pursuant to Section 36(c) of  the Arms Export Control Act,  I am transmitting here- with, certification of  a proposed  multi-contract effort  for manufacture and export of  defense articles and defense services  sold commercially  under contract  in the amount of  [US] $100,000,000 or more.

The transaction contained in the attached certification involves the export of tech- nical data,  defense services and  hardware  to Canada to support the sale, and  in- service support of 28 H-92 Helicopters [CH-148 Cyclones] for the Canadian Navy.

The  United States  Government  is prepared  to licence the export of  these  items having  taken  into account  political,  military, economic,  human rights  and  arms control considerations.

More detailed  information  is contrained  in the formal certification which, though unclassified, contains business information submitted  to the Department of  State by the applicant, publication of which could cause competitive harm to the United States firm concerned.

Sincerely,

[signed]

Jeffery T. Bergner
Assistant Secretary
Legislative Affairs

Enclosure: Transmittal No. DDTC 002-06

The Honorable J. Dennis Hastert, Speaker of the House of  Representatives.

[1] The first of the 28  CH-148 Cyclones was to be delivered by 23 November 2008. However, Sikorsky found itself in the midst of a major labour strike just as the firm was about to build a new factory.  Metal was not cut on the first H-92 aircraft until September 2006. Should Sikorsky fall behind in its deliveries, there are penalties of $100,000 per day –  to a  $36M maximum over the entire Canadian CH-148 contract.
Update: 28 Apr 2009 - the Government has waived up to $89M in CH-148 late fees.

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