Defence Stops Payment On Arh Contract, IOC running behind schedule

[Brendan Cowan]

Department of Defence Media Mail List
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CPA 196/07 Thursday, 5 July 2007

DEFENCE STOPS PAYMENT ON ARMED RECONNAISSANCE HELICOPTER ACQUISITION CONTRACT

The Defence Materiel Organisation has exercised its rights under the Air 87 Tiger Armed Reconnaissance Helicopter (ARH) acquisition contract and stopped payment to Australian Aerospace on 1 June 2007 as the contracted milestone for ARH Initial Operational Capability has not been achieved.

Initial Operational Capbility for the Tiger ARH Project is defined as the ability to conduct collective training. Delays in the Franco/German Tiger program have negatively impacted the development of the simulators and establishment of the Australian based training needed to achieve this milestone.

Defence and Australian Aerospace are working cooperatively to limit the effects of the delay. Seven of the 22 Armed Reconnaissance Helicopters have been accepted and these aircraft have now flown over 1500 hours in training and testing which will contribute to this outcome. Defence is confident that the Armed Reconnaissance Helicopter Project will deliver the contracted capability.

The Tiger Through-Life Support contract is unaffected and flying operations are continuing. Although payment has ceased Australian Aerospace will continue delivery of aircraft and support systems.




Media contact:
Defence Media Liaison (02) 6265 3343 or 0408 498 664

[darren.crick]

I hear they are turning into another Seasprite...