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Canadian Forces Maritime Helicopter Project  – News Release  – December 2008 Sikorsky CH-148 Cyclone — Delays and Contract Adjustments Canadian Press is reporting that CH-148 Cyclone which were to enter service in November 2008, are now  likely  to arrive two years later. Negotiations with the major contractor,  Sikorsky, are complete. The  Government of  Canada  has agreed  to  pay an additional $117M. The first new helicopter will be delivered to Shearwater for familiarization and flight training.  But the CF CH-148 Cyclone fleet will not be fully operational until 2013. As reporter, Murray Brewster, says "It became apparent last year that Sikorsky wasn't going to meet its contract deadlines for delivering the Cyclones [ it being ] suggested that  taxpayers could end up forking out an additional $200 million beyond the already planned $5-billion budget." It was also reported that  the Federal Government was in a position to impose $100,000 daily late-delivery fees (up to $36M). It's not clear whether late-delivery penalties were ever imposed.  Now Canada will pay Sikorsky $117M more. The 23  December 2008  Government of  Canada  News Release  is reproduced below. Canadian Forces To Receive Helicopter Fleet With Leading Edge Technology December 23, 2008 Gatineau, Quebec - The Minister of  Public Works and  Gov- ernment Services, the Honourable Christian Paradis, and the Minister of  National  Defence and  Minister  for the Atlantic Gateway, the  Honourable  Peter Gordon MacKay,  today an- nounced  amendments  to the contracts  with Sikorsky  Inter- national Operations, Inc., for the Maritime Helicopter Project. "These amendments represent a significant accomplishment in  getting  [ contractually ]  compliant  maritime  helicopters with a minimum of delay, while protecting the investment of  Canadian taxpayers," said Minister Paradis "They will ensure that  the Canadian Forces  receive the new  leading-edge helicopters that they need." "The Canadian Forces will now receive their first [CH-148] Cyclone helicopter in Nov- ember 2010, a date that will allow our men and women in uniform to continue their out- standing work," stated  Minister MacKay. "We're getting a great aircraft and we have come to the best  agreement  possible  for  the  Canadian Forces  members and  for the Canadian public." In November 2004,  the Government of  Canada  signed contracts with  Sikorsky Inter- national Operations Inc. for the Maritime Helicopter Project, to provide  28 helicopters to replace the Canadian Forces  [CH-124] Sea King helicopter fleet, as well as 20 years of in-service support and a training facility. In January 2008, Sikorsky formally advised  the Government of  delays  in the  original schedule. As a  result of  in-depth  negotia- tions,  these  contract  amendments were made to minimize the schedule changes, and add valuable cost effective improvements to the helicopters within the original budget of  the [ Maritime Helicopter ]  project. [MHP]  is a  large and  complex  procurement  with many factors  affecting the delivery schedule.  The government has  determined  that  the delays experienced  were  largely outside the control of the Contractor [Sikorsky]. The contract amendments provide the best option to the replacement of  the [ Canadian Forces' existing ] Sea King Fleet with new,  state of  the art,  enhanced  capability Cyclone helicopters.  This will ensure that Sikorsky and  its  major  Canadian subcontractors continue to perform work to provide the Canadian Forces with a  helicopter  that  meets the needs of  Canada  –  helicopters that will have the capacity to operate effectively aboard our Navy ships during military roles and missions both at home and abroad.