The end is apparently in sight!
Ministry of Defence and Department for Transport officials will choose between two bids – believed to be very closely matched on price – by the end of the month.
The first team, called Soteria, is made up of French defence company Thales, the Royal Bank of Scotland, and helicopter operator CHC, which is already doing search and rescue from four UK bases, under an interim contract with the Maritime and Coastguard Agency. Soteria plans to use the S92 helicopter made by Sikorsky of the US.
The second bidder, called AirKnight, is composed of VT Group, US defence giant Lockheed Martin and British International Helicopters. That team will use the Eurocopter EC225 helicopter, made by EADS.
There are currently 40 Sea Kings carrying out Britain's coastal and inland search and rescue from 12 bases, but it is expected the new fleet of aircraft will be reduced to between 25 and 30, because they will be faster and require less maintenance.
Search and rescue is carried out by either the Navy, the RAF or the coastguard, which each run different bases. After the PFI comes in, most staff will be employed by the private contractor with a small number of Navy and RAF personnel.
After choosing the preferred bidder in January, the Government will aim to get a contract signed by April in order to give the winning team enough time to get ready to take over in 2012. However, people familiar with the process expect the signing of the contract to be put off until after a general election.
The preferred bidder will also have to get its financing in place between January and the contract date. RBS is an equity partner in the Soteria bid, but will not necessarily be the lead bank in the financing. AirKnight is expected to use three or four banks.
The role of RBS in the bid has raised concerns of a conflict of interest, with the bank almost wholly owned by the state and bidding for government work.
The MoD insists the involvement of RBS does not raise a conflict of interest and the winner will be chosen after a "competitive process conducted in accordance with the European Union procurement regulation".
Search-and-rescue helicopter £5bn PFI deal nears take off - Telegraph