Widow-makers or Air Force assets?

From the Manila Bulletin (Mar 10): Widow-makers or Air Force assets?

This is the query of a military observer on the 21 refurbished Huey helicopters that the government is acquiring for the Philippine Air Force for a contract price of P1.263 billion. And more than a year since the contract was awarded to the joint venture of US-based Rice Aircraft Services, Inc. (RASI) and Canadian Eagle Copters, only eight refurbished UH-1D helicopters have so far been delivered.

The remaining 13 units have already been shipped to the country but are still being refurbished in Clark, a violation of the contract that stipulates that delivery of all 21 second hand UH-1 helicopters should be made within 180 days upon opening of the letter of credit (LC).

Out of the eight units, only seven have been turned over to the Air Force, of which “four are flyable but none are mission capable due to the absence of engine protective parts.”

The Department of National Defense (DND) first announced the planned acquisition of the 21 refurbished UH-1 helicopters in 2012 to boost the PAF’s combat, security and utility, transport capability.

The project was in the pipeline as early as 2011, when then PAF Commanding General, Lt. Gen. Oscar Rabena, requested President Aquino for additional UH-1H helicopters.

After three failed biddings (Dec. 4, 2012; Feb. 11, 201; and Sept. 2013) for the procurement of the refurbished Huey fleet including Integrated Logistics Support (ILS) package, the DND resorted to negotiated procurement.

The negotiation was conducted on Nov. 21, 2013 with the JV of RASI and Eagle Copters as lone participant and the contract was awarded in December 2013.

MADE IN THE PHILIPPINES

The supplier started the “first shipment on April, 2014, while the last shipment arrived Feb. 2015- way beyond the deadline of the contract.”

An insider revealed that “all 21 helicopters were not refurbished at the facility of Eagle Copters in Canada, but were directly shipped from the facility of RASI in California, USA to the port of Manila then hauled to Clark.”

Instead of delivering fully refurbished helicopters, the supplier “hired additional Filipino mechanics, who are all retired PAF personnel, to repair/refurbish and assemble the helicopters”.

“That’s in violation of the terms of reference requiring refurbishment at the qualified facility, supposedly at the facility of Eagle Copters, Ltd.,” the Manila Bulletin source said.

The insider also pointed out that the Filipino mechanics hired by the supplier provided repairs/maintenance on UH-1H when they were still in active service. Thus, “they are not on the maintenance of UH-1D helicopters,” he stressed.

Documents obtained by the Manila Bulletin show that by the end of the contract (Sept. 21, 2014), only two units of UH-1D were inspected and accepted by the PAF. Formal turnover, however, was made months later.

For failure to deliver all 21 refurbished Huey helicopters within 180 days, RASI had to pay liquidated damages to the government starting September 22, 2014 onwards.  The failure is reportedly due to lack of available parts like engines and armor seats, among others.

BREACH OF CONTRACT

On June 2014, the DND presented to media four Huey helicopters in Clark on June 2014 which at that time were not yet turned over to the PAF and not even operational, a Manila Bulletin source revealed.

Before Christmas of 2014, additional four units of second hand UH-1D helicopters were accepted and paid by the DND, net of liquidated damages.

Liquidated damages is a penalty to be deducted from payment. The amount shall be at least equal to one-tenth of one percent of the cost of the unperformed portion for every day of delay. Once the cumulative amount of the liquidated damages reaches ten percent of the amount of the contract, the procuring entity shall rescind the contract, without prejudice to other courses of action and remedies to open it.

Another UH-1D unit was delivered on Dec. 26, 2014 although formal turnover was made only last month, Feb. 12.

The 8th helicopter arrived middle of February but has not been turned over to the Air Force as of this writing.

Of the eight delivered UH-1D helicopters, the source said only six have been paid so far. “Ubos na kasi ang allowed LD (liquidated damages),” he said.

“For the record, there was no ILS package, in whole or in part, delivered during the prescribed period,” according to the source.

The ILS package is a list of spare parts worth P60 million which was supposed to be delivered within 180 days. The deadline of delivery was supposed to be on or before September 21, 2014.

http://www.mb.com.ph/widow-makers-or-air-force-assets/