UAE Firm Wins $367M Contract for Mi-17 Helicopters

Cornische Aviation and Maintenance Limited, Sharjah, UAE announced today they have won their protest against the US Army for improperly including sustainment in the contract for 21 Russian Mi-17 helicopters. In June 2011 the US Army issued a $367M 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 $550M in aircraft and long term support. Cornische protested to the U.S. General Accounting [now Government Accountability—Ed.] Office that the Army's inclusion of multi-year sustainment support was in violation of U.S. Federal Acquisition Regulations. "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 $7.5M and selling them to the U.S. for $16.4M. As if that was not enough profit, the Army agreed to give the Russians an option for $100M 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."