After freezing the requirements, the Defence Ministry

issued the RFP on September 27, 2006 after which three vendors, namely Sikorsky, AgustaWestland, AW-101 helicopter and Russian Rosoboronexport responded to it. The Russian firm's bid was rejected as it did not deposit the earnest money and integrity pact. After comprehensive field evaluation trials, in which the SPG was also represented, Sikorsky was declared to be non-compliant for not meeting four staff requirements. The Ministry said during the contract negotiations, the Air Headquarters recommended inclusion of more systems on-board the chopper including Traffic Collusion Avoidance System (TCAS-II) and Enhanced Ground Proximity Warning System (EGPWS) for all 12 helicopters and SPG/PMO recommended inclusion of Medevac System for 8 VVIP helicopters. After agreeing to induct these systems on board the choppers, the Contract Negotiations Committee (CNC) Recommended conclusion of the contract at a negotiated price of EURO 556.262 million (around Rs 3,600 crore). "On completion of CNC the proposal was submitted for approval of the Cabinet Committee on Security (CCS), which considered the proposal in its meeting held on 18 January 2010 and approved the proposal and a contract was signed on February 8, 2010," the Ministry said. The Defence Ministry said the contract signed with AgustaWestland includes "specific contractual provisions against bribery and the use of undue influence. Article 22 of the contract deals with penalty for use of undue influence. This clause entitles the �Buyer� to cancel the contract with the �Seller� and recover from him the amount of any loss arising from such cancellation." The Ministry said any breach of the provisions of the Integrity Pact entitles the �Buyer� to take actions against the �Seller� which includes forfeiture of the earnest money, performance bond, cancellation of the contract without giving any compensation, to recover all the sums already paid with interest, to cancel any other contracts. It also debars the bidder from entering into any bid from the Government for a minimum period of five years which may be extended.