Public Works and Government Services Canada

Public Works and Government Services Canada

November 26, 2007 15:00 ET

The Government of Canada Announces Settlement With AgustaWestland International Limited

GATINEAU, QUEBEC--(Marketwire - Nov. 26, 2007) - AgustaWestland International Limited and the Honourable Michael M Fortier, Minister of Public Works and Government Services, are pleased to announce an amicable settlement of AgustaWestland's lawsuit against the federal Crown arising from the maritime helicopter procurement. While AgustaWestland stands behind the allegations in the lawsuit, the action is being dismissed, without payment of costs or any other amounts.

In 2000 the federal Crown announced its intention to proceed with a procurement for 28 maritime helicopters to replace the Sea Kings. A Request for Proposal was issued to AgustaWestland and one other bidder in December 2003 following a prequalification process. In July 2004 the federal Crown announced that AgustaWestland had not been evaluated as the successful bidder.

The decision not to award the contract to AgustaWestland was not based on any shortcoming in the AgustaWestland EH101 helicopter or its performance capabilities. Indeed, in 1998 AgustaWestland won a competition to supply the federal Crown with EH101s in a procurement for a fleet of search and rescue helicopters. These helicopters are now in service and are an important addition to Canada's search and rescue capabilities.

The Minister of Public Works and Government Services and the Minister of National Defence welcome AgustaWestland's participation in any future military procurement. They acknowledge that the fact of AgustaWestland's lawsuit, the allegations made by it in the lawsuit, this settlement and/or the solicitation for the supply of maritime helicopters shall not impede AgustaWestland or its related parties participating in future Department of National Defence procurements on the same terms as any other potential supplier.

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