http://www.sphere.com/nation/article...draws-congress
ional-ire/19307082
Russian Aircraft Purchase Draws Congressional Ire
Updated: 12 hours 1 minute ago
Sharon Weinberger
Contributor
(Jan. 7) - In December 2007, the Pentagon gave a no-bid contract worth more than $300
million to ARINC, a Maryland company, to buy 22 Russian helicopters that were urgently
needed for Iraq's nascent military. Two years later, even after all of the money has been
paid out, none of the helicopters have been delivered, the costs have increased and it's
unclear when, if ever, the helicopters will be delivered.
Now, the Pentagon's quiet purchase of nearly a billion dollars worth of Russian
helicopters for Iraq, Afghanistan and Pakistan is drawing fire from Congress. Democrats
and Republicans are is questioning the military's rationale for buying the foreign
equipment and blasting the price paid for aircraft that are traditionally cheaper to
purchase and maintain.
And cheaper may not be the case now.
Contracts obtained through the Freedom of Information Act show considerable difference
between the base price of the helicopters from Russia and the price paid through the U.S.
government to ARINC, the prime contractor. The Russian subcontractor, Airfreight Aviation,
offered the Russian helicopters for about $7.9 million each. ARINC then sold the
helicopters, with Western modifications, for a unit price of between about $12.5 million
and $13.5 million. Delivery delays increased the price even more.
"We find it disturbing that the cost per unit has gone up significantly compared to nine
years ago," a Senate aide familiar with the issue told Sphere.
Sen. Chris Dodd, D-Conn., blasted the deal last month in a letter to Defense Secretary
Robert Gates. Dodd complained that the Russian equipment was bought in a way that "rewards
foreign companies with single-source contracts" and does not provide adequate oversight of
the deals. "In sum, the United States has spent over $800 million of taxpayer funds on
Russian airframes without ever conducting an analysis of alternatives or considering other
airframes for the mission," Dodd wrote. The letter was co-signed by Rep. Rosa DeLauro,
D-Conn.
Connecticut is home to American helicopter manufacturer Sikorsky.
Richard Shelby, a Republican senator from Alabama, another state with a substantial
helicopter industrial base, demanded in a separate letter that the Pentagon stop
purchasing Russian helicopters until a thorough analysis could be conducted. He also
criticized the Iraqi deal, noting that "the $345 million U.S./Iraqi acquisition contract
is nearly a year behind schedule and the cost of airframes has skyrocketed."
The Pentagon has acknowledged difficulties associated with buying Russian equipment, but
defends the purchases for Iraq, Afghanistan and Pakistan as the most appropriate aircraft
for these countries, which have experience operating Russian helicopters.
Pentagon officials speaking on background have said the delays and cost increases are the
partly the result of getting the U.S. State Department to agree to allow the integration
of Western equipment on foreign aircraft, which requires sharing technical details with
the Russians. ARINC, in the meantime, has been given a contract for an additional 10
helicopters for Afghanistan. Those helicopters also have not been delivered yet.
The Pentagon's policy on buying Russian helicopters is complicated by another factor: the
U.S has sanctions placed on Russian's arms export agency, Rosoboronexport, for allegedly
selling weapons to Iran. Those sanctions, in theory, prevent the U.S. government from
buying any military equipment from Russia.
To get around the sanctions, the Pentagon sought and received a waiver specifically
allowing it to buy Russian helicopters, creating the bizarre situation whereby the U.S.
government is exempting the only major military equipment it buys from Russia.
Buying Russian helicopters has always been a tricky business for the U.S. government.
During the Cold War, the U.S. quietly bought Russian equipment, including helicopters, in
order to test the Soviets' military capabilities. Such purchases often required dealing
with gunrunners and arms smugglers.
The CIA has also bought Russian helicopters to operate for its own clandestine air wing,
including for its 2001 Jawbreaker operations in Afghanistan that helped bring down the
Taliban. Two people involved in those helicopter purchases - an Army official and a
contractor - were brought to trial and sent to prison in 2007 in connection with that
deal.
Over the past several years, many of the Pentagon's purchases were handled through an
obscure office in Huntsville, Ala., known as the Threat Systems Management Office, which
specializes in obtaining foreign equipment for simulation. But as the contracts for Iraq
and Afghanistan mounted, so did the problems.
In one case, VIP Russian helicopters bought to transport Afghan President Hamid Karzai -
and equipped with flat-panel TVs and leather chairs - had to be sent back to the company
that bought them and modified when they proved too heavy to fly safely.
Part of the confusion is rooted in the ad hoc nature of the purchases: The United States
has bought Russian helicopters for Iraq, Afghanistan and Pakistan using a variety of
appropriated funds intended to quickly help U.S allies. Last year, President Obama ordered
the delivery of four Russian helicopters to Pakistan in response to a high-level request
from the country.
A Pakistani official later criticized the helicopters, saying several of the aircraft were
unflyable.
ARINC, which has previously declined to comment on the Iraq contract, did not respond to
questions about the current status of the helicopters. The Dubai-based Russian
subcontractor, Airfreight Aviation Ltd., which is responsible for buying and modifying the
helicopters, did not respond to e-mailed questions.
The Army and the Pentagon were not able to provide any comment about the contract or the
congressional queries by publication time.
In the meantime, Congress is still waiting for an answer. Language inserted in the
recently signed 2010 defense spending bill requires the Pentagon to report on its plans
for purchasing more Russian helicopters for Iraq and Afghanistan.
"The left hand doesn't know what the right hand is doing," the Senate aide said. "We'd
like to see better oversight."
ional-ire/19307082
Russian Aircraft Purchase Draws Congressional Ire
Updated: 12 hours 1 minute ago
Sharon Weinberger
Contributor
(Jan. 7) - In December 2007, the Pentagon gave a no-bid contract worth more than $300
million to ARINC, a Maryland company, to buy 22 Russian helicopters that were urgently
needed for Iraq's nascent military. Two years later, even after all of the money has been
paid out, none of the helicopters have been delivered, the costs have increased and it's
unclear when, if ever, the helicopters will be delivered.
Now, the Pentagon's quiet purchase of nearly a billion dollars worth of Russian
helicopters for Iraq, Afghanistan and Pakistan is drawing fire from Congress. Democrats
and Republicans are is questioning the military's rationale for buying the foreign
equipment and blasting the price paid for aircraft that are traditionally cheaper to
purchase and maintain.
And cheaper may not be the case now.
Contracts obtained through the Freedom of Information Act show considerable difference
between the base price of the helicopters from Russia and the price paid through the U.S.
government to ARINC, the prime contractor. The Russian subcontractor, Airfreight Aviation,
offered the Russian helicopters for about $7.9 million each. ARINC then sold the
helicopters, with Western modifications, for a unit price of between about $12.5 million
and $13.5 million. Delivery delays increased the price even more.
"We find it disturbing that the cost per unit has gone up significantly compared to nine
years ago," a Senate aide familiar with the issue told Sphere.
Sen. Chris Dodd, D-Conn., blasted the deal last month in a letter to Defense Secretary
Robert Gates. Dodd complained that the Russian equipment was bought in a way that "rewards
foreign companies with single-source contracts" and does not provide adequate oversight of
the deals. "In sum, the United States has spent over $800 million of taxpayer funds on
Russian airframes without ever conducting an analysis of alternatives or considering other
airframes for the mission," Dodd wrote. The letter was co-signed by Rep. Rosa DeLauro,
D-Conn.
Connecticut is home to American helicopter manufacturer Sikorsky.
Richard Shelby, a Republican senator from Alabama, another state with a substantial
helicopter industrial base, demanded in a separate letter that the Pentagon stop
purchasing Russian helicopters until a thorough analysis could be conducted. He also
criticized the Iraqi deal, noting that "the $345 million U.S./Iraqi acquisition contract
is nearly a year behind schedule and the cost of airframes has skyrocketed."
The Pentagon has acknowledged difficulties associated with buying Russian equipment, but
defends the purchases for Iraq, Afghanistan and Pakistan as the most appropriate aircraft
for these countries, which have experience operating Russian helicopters.
Pentagon officials speaking on background have said the delays and cost increases are the
partly the result of getting the U.S. State Department to agree to allow the integration
of Western equipment on foreign aircraft, which requires sharing technical details with
the Russians. ARINC, in the meantime, has been given a contract for an additional 10
helicopters for Afghanistan. Those helicopters also have not been delivered yet.
The Pentagon's policy on buying Russian helicopters is complicated by another factor: the
U.S has sanctions placed on Russian's arms export agency, Rosoboronexport, for allegedly
selling weapons to Iran. Those sanctions, in theory, prevent the U.S. government from
buying any military equipment from Russia.
To get around the sanctions, the Pentagon sought and received a waiver specifically
allowing it to buy Russian helicopters, creating the bizarre situation whereby the U.S.
government is exempting the only major military equipment it buys from Russia.
Buying Russian helicopters has always been a tricky business for the U.S. government.
During the Cold War, the U.S. quietly bought Russian equipment, including helicopters, in
order to test the Soviets' military capabilities. Such purchases often required dealing
with gunrunners and arms smugglers.
The CIA has also bought Russian helicopters to operate for its own clandestine air wing,
including for its 2001 Jawbreaker operations in Afghanistan that helped bring down the
Taliban. Two people involved in those helicopter purchases - an Army official and a
contractor - were brought to trial and sent to prison in 2007 in connection with that
deal.
Over the past several years, many of the Pentagon's purchases were handled through an
obscure office in Huntsville, Ala., known as the Threat Systems Management Office, which
specializes in obtaining foreign equipment for simulation. But as the contracts for Iraq
and Afghanistan mounted, so did the problems.
In one case, VIP Russian helicopters bought to transport Afghan President Hamid Karzai -
and equipped with flat-panel TVs and leather chairs - had to be sent back to the company
that bought them and modified when they proved too heavy to fly safely.
Part of the confusion is rooted in the ad hoc nature of the purchases: The United States
has bought Russian helicopters for Iraq, Afghanistan and Pakistan using a variety of
appropriated funds intended to quickly help U.S allies. Last year, President Obama ordered
the delivery of four Russian helicopters to Pakistan in response to a high-level request
from the country.
A Pakistani official later criticized the helicopters, saying several of the aircraft were
unflyable.
ARINC, which has previously declined to comment on the Iraq contract, did not respond to
questions about the current status of the helicopters. The Dubai-based Russian
subcontractor, Airfreight Aviation Ltd., which is responsible for buying and modifying the
helicopters, did not respond to e-mailed questions.
The Army and the Pentagon were not able to provide any comment about the contract or the
congressional queries by publication time.
In the meantime, Congress is still waiting for an answer. Language inserted in the
recently signed 2010 defense spending bill requires the Pentagon to report on its plans
for purchasing more Russian helicopters for Iraq and Afghanistan.
"The left hand doesn't know what the right hand is doing," the Senate aide said. "We'd
like to see better oversight."
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