Challenge over €800m search and rescue contract admitted to Commercial Court

ireland
Challenge Over €800M Search And Rescue Contract Admitted To Commercial Court
Texas USA-based helicopter services group CHC Ireland DAC has brought the challenge against the Minister for Transport. Photo: iStock
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High Court reporters

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

Texas USA-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.

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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 on consent from CHC.

The court heard 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 some €800 million over 10 years from 2025. His side was seeking an early date for the hearing of an application from his side to lift the automatic suspension.

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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.

Catherine Donnelly SC, for CHC, said her client would require more time than the Minister's side sought 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.

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

The new contract will provide for helicopter services for 10 years and five years for fixed-wing 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 day and nighttime operation of four helicopter bases in Sligo, Shannon, Waterford and Dublin.

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