Thu, Aug 18, 2011
Cornische Aviation And Maintenance Limited Had Questioned Scope
Of The Contract
In June 2011, the US Army issued a $367 million sole source
award to the Russian arms company Rosoboronexport for the purchase
of 21 Mi-17 aircraft, initial spares and engineering support for
Afghanistan. With no public announcement, the Army also included an
option for an additional $550 million in aircraft and long
term support. Cornische Aviation and Maintenance Limited, Sharjah,
UAE protested to the U.S. General Accounting Office that the Army's
inclusion of multi-year sustainment support was in violation of
U.S. Federal Acquisition Regulations, and on Tuesday announced they
have won their protest against the US Army for improperly including
sustainment in the contract for 21 Russian Mi-17 helicopters.
File Photo
"This program is essentially a cash cow for the Russians and the
U.S. Army," said Cornische spokesman Jeff Rashim. "Rosoboronexport
is buying the aircraft for $7.5 million and selling them to the
U.S. for $16.4 million. As if that was not enough profit, the Army
agreed to give the Russians an option for $100 million in spares
and depot level test equipment with margins exceeding
100%."
"It is impossible to understand why the US Army is not concerned
that they are overpaying hundreds of millions for this Russian
equipment," Rashim said. "The US government should demand an
audit."
The U.S. General Accounting Office ruled on Thursday, August
11th that the U.S. Army must take corrective action and remove the
long-term spares and depot level test equipment from the
Rosoboronexport contract. Corrective action is to occur in the next
60 days.
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