From the report:
Flawed procurement of eight Chinook HC3 helicopters means that, although they were delivered to specification by the contractor in December 2001, they cannot yet be used operationally, principally because there is insufficient evidence to demonstrate that the avionics software meets United Kingdom Defence standards. This is primarily because the programme was not de-risked prior to investment decisions being taken; nor did the contract specify that the software should be analysed in accordance with United Kingdom Defence standards. Other user requirements categorised as essential have not been delivered because, for a variety of reasons, they too were not included in the contract. To bring the helicopters broadly up to the standard of the existing Chinook fleet would require approximately £127 million, over and above the £259 million originally estimated, and would mean the helicopter would enter service in mid-2007 - some nine years later than the original In-Service Date, although this latter was re-defined in March 1998 to June 2002.
The shortfall in battlefield helicopter capability will continue
Even if improvements to efficiency and effectiveness are made, there will still be a shortfall in helicopter capability. A recent Departmental study concluded that there is currently a 38 per cent shortfall in overall battlefield support helicopter lift, which includes an 87 per cent shortfall in ship-optimised support helicopter lift. Primarily, the latter deficit is a manifestation of a changed strategic environment over the past decade, which has generated a greater requirement to undertake littoral operations. According to the Department, the shortfall in ship-optimised lift will remain until 2018, while overall battlefield lift will remain inadequate until 2017.
In addition, the nature of the legacy fleet means that many platforms are not fully equipped to undertake missions in certain operational and environmental conditions, including those recently experienced in Afghanistan and Iraq. The helicopter force has a number of critical capability shortfalls, some of which can only be addressed by expensive modifications. Owing principally to a lack of resources, these capability shortfalls are often met by Urgent Operational Requirements. For example, part of the current Chinook fleet has acquired the necessary capabilities to meet operational demands. However, this process has often not only been costly but it is essentially short-term in nature.