HNZ Group Inc., an international provider of helicopter transportation and related support services, announced it has received a notice of intent to award a contract from the United States Department of Defense in support of the North Warning System (NWS). HNZ, operating under the brand Canadian Helicopters, has been selected as the “successful offeror” with regard to the consolidated Rotary Wing Operations and Maintenance, Bulk Fuel and Supplemental Rotary Wing contract, subject to customary U.S. government approval of operational funding for each fiscal year and conclusion of definitive contracts.
The Department of Defense decision was taken following a competitive bidding process. A total of nine owned IFR medium and heavy helicopters, including some redeployed fleet from Afghanistan, will be used for the contract.
The contract includes a year-round service employing five aircraft on the Operations and Maintenance component, and four aircraft in a seasonal capacity servicing the Bulk Fuel and Supplemental components with various commencement dates. Canadian Helicopters is the current service provider for both the Bulk Fuel transfer and Supplemental components. The NWS is an early warning radar system, comprised of 47 radar sites spanning the Canadian Arctic.
The contract is for a six-month base period with four one-year and one six-month extensions, each exercisable at the option of the Department of Defense, for a total of five years with expected aggregate revenues of approximately US$61 million. The contract is denominated in United States dollars with payment components comprised of fixed charges, hours flown and compensation for the transportation of fuel. A minimum number of hours and quantity of fuel per year are specified. Fuel transferred is provided at no cost to Canadian Helicopters. The prime contractor is the Canadian Commercial Corporation, Canada’s international contracting agency, which focuses on government-to-government contracting and procurement.
“These agreements represent a continuation of our long term relationship with the U.S. military,” said Don Wall, President and CEO of HNZ Group. “We are pleased with the ongoing confidence that the United States Department of Defense has placed in the quality of our services and operations. We look forward to increasing our support of the NWS to include the Operations and Maintenance component, while continuing our support of the Bulk Fuel and Supplemental flight operations.”
