Search and Rescue Helicopter

The Capability

Search and Rescue - Helicopter is a joint MOD and Maritime & Coastguard Agency (an Agency of the Department for Transport) programme. It seeks to replace the current Search and Rescue capability, provided around the UK by the Royal Navy and the Royal Air Force, using Sea King Helicopters, and through the Maritime & Coastguard Agency service contract.

Summary of Project Progress

Approved

Forecast/Actual

Variation

IY Variation

Assessment Phase

£11.2m

£7.2m

-£4.0m

-

The Assessment Phase

Date

Milestone

Assessment Phase 1

May 2003

Initial Gate Approval.

Assessment Phase 1

August 2005

Second Initial Gate Approval.

May 2006

PFI Competition launched.

November 2006

4 consortia down-selected.

February 2007

Competitive Dialogue Starts.

January 2008

1st Round Costed Bids.

September 2008

Withdrawal of UK Air Rescue consortia leaving two remaining bidders.

November 2008

2nd Round Costed Bids.

January 2010

Assessment Phase concluded.

February 2010

Preferred Bidder (Soteria consortium) announced.

February 2011

Irregularities identified in the bid making proceeding with the preferred bid or current procurement process inappropriate.

Main-Gate approval was achieved in February 2010. The project was suspended in June 2010, as part of a review of all spending decisions taken since January 2010 and the review concluded with Treasury agreement in December 2010 that the project should continue on the basis of the proposed solution. In December 2010, just prior to the planned public announcement of the continuation, the Soteria Consortium informed the MOD of a possible issue in connection with its bid, and in February 2011 the two Departments announced that irregularities had

been identified such that it would not be appropriate to proceed with the preferred bid, or the current procurement process. The two Departments are currently considering potential procurement options to meet future requirements for search and rescue helicopters in the United Kingdom, including options to maintain continuity of search and rescue helicopter cover until new longer-term arrangements can be put in place. Costs incurred since Main-Gate total £1.1 million and relate to accrued expenditure for legal, financial and technical advice.