HNZ Group Wins US Department of Defense North Warning System Contract

HNZ Group is pleased to announce 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”). The NWS is an early warning radar system, comprised of 47 radar sites spanning the Canadian Arctic.

HNZ Group, operating under brand Canadian Helicopters, has been selected as the “successful offeror”, 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 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 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.”

Please see full release.