Medium-To-Heavy Lift Helicopter Project: Status
(Source: Canadian Department of National Defence; issued November 28, 2012)
As part of its commitment under the Canada First Defence Strategy, the Government of Canada is purchasing 15 medium-to-heavy lift Chinook F-model helicopters (also known as CH-147F) to fulfill Canada’s transport requirements in this area.

This acquisition will strengthen Canada’s multi-role, combat-capable defence force by providing the Canadian Forces (CF) with the right equipment they need to perform their missions through fair, open and transparent procurement practices. It will also allow the CF to increase their mobility, flexibility and ability to operate in remote and isolated areas, and increase their capacity to respond to disasters both at home and abroad.

As part of the Medium-to-Heavy Lift Helicopter Acquisition Program, Boeing has committed to providing Industrial and Regional Benefits equal to $1.25 billion, which will ensure that Canadian industry benefits from this procurement. Boeing is currently on track to meet its commitments.

This project is currently on budget and on schedule.

Projected Costing
•The total estimated cost for the Medium-to-Heavy Lift Helicopter Program is approximately $5 billion. The breakdown is as follows: ◦The total project acquisition cost is estimated at approximately $2.3 billion, which includes the 15 helicopters; in-service support set-up, equipment procured directly through a Foreign Military Sales agreement with the United States (U.S.) government such as engines, electronic warfare equipment, along with radios, navigations and other electronic equipment; new infrastructure in Petawawa; project management costs; and a complete maintenance and aircrew training program, including simulation devices and courseware.

•The 20-year in-service support program for the helicopters, the training systems, and equipment procured directly through a Foreign Military Sales1 agreement with the U.S. government, excluding personnel and operating costs, has an estimated value of $2.7 billion.

Chronology of Events: Current status: On schedule

•June 2006: The Government of Canada announced its plan to acquire a new fleet of medium-to-heavy lift Chinook F-model helicopters to meet the CF rotary-wing transport requirements for the next 20 years. To ensure a fair, open, and transparent process, an Advance Contract Award Notice was published on Government Electronic Tenders Service (MERX) to give notice to supplier community of the intent to award a contract to the Boeing Company. Boeing was assessed as being the only compliant supplier.

•Of Note:◦December 2008: Separate from the Medium-to-Heavy Lift Helicopter Program, Canada acquired six used Chinook D-model helicopters (CH-147D) in order to meet an urgent need for a medium-lift capability in Afghanistan. The acquisition of these helicopters was processed through a Foreign Military Sales agreement with the U.S. government. This capability lasted until the end of the mission in 2011.

◦Two of the original six Chinook D-model helicopters were damaged beyond economical repair while in operation in Afghanistan. The Department of National Defence (DND) is pursuing disposal options for the remaining four Chinook D-model helicopters.

•August 2009: The Government of Canada announced a contract award, valued at US$1.2 billion, to the Boeing Company to build the helicopters and initial in-service support set-up for Canada’s Medium-to-Heavy Lift Helicopter Program.

•December 2009: The Government of Canada announced Canada’s new fleet of 15 Chinook F-model helicopters will be based at Canadian Forces Base Petawawa, Ontario. The new helicopter squadron will be designated 450 Tactical Helicopter Squadron.

•March 2010: The Government of Canada announced Montréal-based CAE would be the single operational training systems provider for the Chinook F-model helicopter fleet. CAE was awarded a contract valued at approximately $250 million to establish and maintain a comprehensive aircrew training solution.

•October 2010: The Government of Canada awarded Ellis Don Company a contract valued at $134.8 million to construct first-and second-line maintenance bays; CAE and Boeing training schools; a back shop and warehouse; a DND command suite; and a fenced-in parking lot.

•June 24, 2012: Canada’s first Chinook F-model helicopter successfully completed its maiden test flight at a Boeing test facility, kicking off the year-long Test and Evaluation phase of the program which is comprised of both ground and flight-test activities.

•September 24, 2012: A second Canadian Chinook F-model helicopter began the Test and Evaluation phase of the program and completed its first test flight.

Current Status
•This project is currently on budget and on schedule.
•Two Chinook F-model helicopters will continue with the Test and Evaluation phase of the program over the next year with a combined crew of Boeing and CF test pilots

Next Steps
•Following the conclusion of a year-long flight test program led by Boeing, the first F-model Chinook is scheduled to arrive on schedule at a new facility located at Canadian Forces Base Petawawa, Ontario, in June 2013.
•Aircraft will be delivered at a rate of approximately one aircraft per month, with all aircraft being delivered over a 12-month period. The helicopters are expected to reach Initial Operational Capability, as planned, in 2014.
•A contract amendment to provide 20 years of in-service support for the helicopters is currently being developed with the Boeing Company. The negotiations are expected to conclude in May 2013. A contract amendment to provide 20 years of in-service support for the helicopters is currently being developed with the Boeing Company. The negotiations are expected to conclude in May 2013.
•Boeing will also provide Industrial and Regional Benefits equal to the value of the 20 year in-service support amendment. In addition, Boeing will be required to provide Direct Industrial and Regional Benefits work equal to 75 per cent of the value of the in-service support amendment, which is subject to the Government’s Global Value Chain policy enhancement.

As this is a living document, it will be updated as future milestones are achieved within the Medium-to-Heavy Lift Helicopter Program.

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