The fact MoD chose Merlin is not an excuse for kicking Westland.
I have always been clear - I'm a big fan of Westland. They have dug MoD and other more favoured contractors out of a hole so many times it is downright embarrassing. For a time the job they moaned about most was Puma Nav Update, mainly because the contractor and MoD took all the credit when it was over, not even mentioning Westland who had taken over when the others hadn't a clue.
I suspect that example was overtaken by Sea King ASaC, which would have been "another Chinook Mk3" had it not been for Westland (and GEC-Marconi & Boscombe) and their willingness to work for years without contract or means of payment. Let's face it, MoD asked for trouble letting the contract on a company who hadn't bid, then standing back as they were bought by a company who had withdrawn because the job was too complex. Westland immediately knew were the problems (abrogation) would be so just calmly took over.
In all my time in MoD, Westland remain the only company ever to approach me with an admission they were on target to make too much profit, asking me (and the RN) what features we'd like to spend it on. A good move. They'd be post-costed anyway so this brought clawback forward a couple of years. The important thing, which we both understood, was in this case the RN benefited; whereas under post-costing it would be the Treasury, another random programme or a general QMAC adjustment. Post-costing to ensure there is a cap on profit margin? Surely largely unheard of given the comments about the cost of their products. Or perhaps MoD don't do it now.
I'm afraid most people don't see those little details.