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Tue, Jul 10, 2012

DoD Awards $7.3 Billion Contract To Sikorsky

Agreement Runs Through FY 2016

Sikorsky has grabbed a DoD contract that is reportedly worth $7.3 billion over five years. Under the agreement, the company will provide the U.S. Army, Navy and Air Force with additional H-60 Black Hawk helicopters, as well as other versions of the utility aircraft.

Reuters reports that several sources familiar with the deal but not authorized to speak to the media say the pact will trigger a multi-year procurement package approved by Congress in the Pentagon's FY2012 budget. It will be the Defense Department's eighth multi-year acquisition of the aircraft, and comes with options that could add as much as $2 billion to the overall package.

Sikorsky President Mick Maurer had earlier said that the company was "on track" for the contract, but did not give any specifics about what it contained. Analysts say that by utilizing multi-year procurements, the Pentagon can reduce acquisition costs on the helicopter, considered a workhorse across all branches of the military.

The Army is reportedly the lead military negotiator for the deal, but Army officials did not comment.

The aircraft made its first flight in 1974, and flies a variety of missions including troop transport, medevac, and other "special" missions.



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