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CASR
Defence Budget &
Procurement Practices
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US Foreign Military
Sales Notifications
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- Canadian Defence Policy, Foreign
Policy, & Canada-US Relations - |
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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:
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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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