...the planned signing of the contract for the new helicopters has fallen months behind.
Documents released by the Department of National Defence show the government is struggling to fit the helicopter in its "prescribed" acquisition budget of $2-billion, stating the cost has jumped to $2.3-billion. The documents show that inflation costs, caused by the "slippage" in the signing of the contract, have already cost the government $80-million.
A briefing note from last September laid out two major sets of options for National Defence:
Adopt the status quo, meaning the government would agree to "absorb the overrun cost."
Or, change the equipment that Ottawa gets installed in the helicopters.
A DND spokeswoman refused to offer details on the plans to purchase the Chinook, stating it could only do so once the contract is signed.
"As the government is currently in negotiations with the company for the acquisition of the CH-47 model F Chinook, we are unable to provide the particular information requested," Krista Hannivan said...