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US group’s challenge to €800m search-and-rescue contract award admitted to court

Texas-based helicopter services group CHC Ireland DAC claims tendering competition had a number of flaws

CHC has brought the challenge against the Minister for Transport, who last month announced the preferred bidder was Bristow Ireland Ltd. Photograph: Barry Cronin

Mon Jun 26 2023 - 18:57

A challenge to the awarding of the contract for Ireland’s €800 million search-and-rescue service has been admitted to the fast-track Commercial Court.

Texas, US-based helicopter services group CHC Ireland DAC has brought the challenge against the Minister for Transport, who last month announced the preferred bidder was Bristow Ireland Ltd, a subsidiary of the US-based Bristow Group.

CHC claims there are a number of flaws related to the conduct of the tendering competition.

On Monday, Mr Justice Denis McDonald admitted CHC’s proceedings to the commercial list on the application of the Minister and with CHC’s consent.

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The court heard that the automatic suspension of the awarding of the contract applies when such challenges are brought.

Douglas Clarke SC, for the Minister, said it was an important contract estimated to be worth €800 million over 10 years from 2025. He was seeking an early date for the hearing of his side’s application to lift the automatic suspension.

He said a decision on the suspension was urgent in circumstances where a crucial two-year transition period (of the service from the old contractor to the new contractor) was due to begin next Saturday. His client was concerned about any slippage during that transition period.

[ CHC Ireland fails to win new coast guard helicopter service contract ]

Catherine Donnelly SC, for CHC, said her client would require more time to prepare for the application to lift the suspension.

The judge listed the application for hearing in three weeks. Bristow has been joined as a notice party in the case.

The court heard that, due to the commercial sensitivity of certain information, only redacted papers would be made available to others including the media.

CHC was awarded the current contract in 2012 for 10 years when it was valued at €500 million. Before that, the Air Corps had provided the rescue services.

The new contract will provide for helicopter services for 10 years plus five years for fixed-wing (aeroplane) services. After five years, the fixed-wing services can be transferred to the Air Corps. It is the first time that fixed-wing services have formed part of the search-and-rescue contract.

It will also provide for the daytime and night-time operation of four helicopter bases in Sligo, Shannon, Waterford and Dublin.

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