Boeing Wins $ 2.4 Billion Helicopter Deal Against Lockheed Martin Force Majeure

The US Air Force says it will turn to Chicago-based defense giant Boeing to replace its aging fleet of UH-1N Huey helicopters, which are used to protect the Army's ground-based ballistic missiles. US. rival, Lockheed Martin.

The Air Force announced Monday that it has awarded Boeing's Arlington-based defense division the first phase of a $ 2.38 billion contract for the acquisition of 84 of the MH-139 helicopters from Boeing, whose first will be delivered in 2021. contract as a victory for taxpayers, noting that initial estimates had set its total cost at $ 4.1 billion.

"Strong competition has lowered program costs, saving the taxpayer $ 1.7 billion," Wilson said in a statement.

The UH-1N replacement is considered an important supply as the military uses it to protect US-based nuclear missile launch sites from attack and to protect nuclear warheads during their transportation across the country. They would also likely be used to transport senior Washington officials in the event of a nuclear disaster.

Like most US nuclear infrastructures, the Huey models of service are aging. The UH-1N helicopter dates back to the 1970s, when thousands of them were deployed in Vietnam.

[The Air Force is getting rid of an iconic helicopter. And there’s a big fight over how to replace it.]

Loren Thompson, defense consultant at the Lexington Institute, funded by defense companies, including Boeing, said the Air Force's comments suggest it focused on reducing prices rather than on new capabilities.

"The Air Force has become infamous among military contractors for driving bidders to the lowest possible price on major purchases," Thompson said.

Boeing may have downplayed competing proposals from Lockheed Martin and Sierra Nevada, each offering inflated versions of the Black Hawk UH-60.

This was the second major purchase of aircraft in the past month to benefit Boeing. A few weeks earlier, the company won an $ 805 million contract to build the Navy's MQ-25 air-to-air drone, for which Lockheed also participated.

If Boeing succeeds in building the next fleet of Air Force pilots, an estimated $ 18 billion market for both companies, it could make its first appearance in the memories of the two largest global entrepreneurs. The Air Force announced that it was going to announce its decision on this program by the end of September.

[Lockheed Martin got $35.2 billion from taxpayers last year. That’s more than many federal agencies.]

The Huey award is considered a big issue for Lockheed Martin, who has become the world's largest supplier of defense equipment and the maker of the F-35 Joint Strike Fighter. Lockheed was generally expected to win the helicopter replacement, in part because the Air Force planned to continue part of the replacement program with one supplier and turn to UH-60. Black Hawks, a subsidiary of Lockheed Martin.

Lockheed spokeswoman Sharon Parsley declined to detail the next steps in the company.

"We are disappointed by the decision of the US Air Force, but remain confident that the HH-60U Black Hawk is the strongest and most effective solution to the critical mission of the UH-1N Huey replacement program: to protect national nuclear missile silos and ensure continuity. government mission, "said Parsley in an email. "We remain committed to providing superior helicopters to the Air Force in our existing and future contracts."

The contest has already been protested, with Lockheed seeking to cancel the prize even before bids are submitted. The company challenged an Air Force requirement that significant helicopter-related software licenses be transferred to the Air Force.

Sierra Nevada, the third bidder, could also attempt to reverse the offer. Asked if he would, a company spokesman said: "While we are disappointed with the announcement, [Sierra Nevada] and the Sierra Force helicopter team will review the notification letter and expand on future options for the capabilities of rotary wing aircraft once completed. "