US Army, Navy Advance Multi-Year Sikorsky Deals Worth $1.3 Billion

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Donald McKelvy
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Good news for the Winged S:

"US Army, Navy Advance Multi-Year Sikorsky Deals Worth $1.3 Billion"
Nov. 17, 2014 - 03:45AM |
By JOE GOULD

Source:
http://www.defensenews.com/article/20141117/DEFREG02/311170020

WASHINGTON — The US Army and Navy will go ahead with plans to buy 102 helicopters from Sikorsky Aircraft Corp., for $1.3 billion in fiscal 2015, according to Defense Department contract announcements released Monday.

The Navy’s award reverses a budget proposal earlier this year to cancel its end of a multi-year deal.

The Army awarded the Stratford, Connecticut-based company a $771.9 million contract modification for 41 UH-60M Black Hawk helicopters and 24 HH-60M medical evacuation helicopters, with associated support functions. The contract is scheduled to be complete in June.

The Navy awarded the company a $535.3 million modification for the Navy’s fourth program year for eight MH-60S and 29 MH-60R Seahawk helicopters, and to fund associated sustaining engineering, program management, systems engineering, provisioning, technical publications, other integrated logistics support and provide advance procurement funding for program years four and five. Work is scheduled to be complete at the end of 2015.

Earlier this year, Defense News reported that the Navy’s budget proposal called for the multi-year deal to be canceled. Had the Navy canceled its Seahawk buy, the Army aircraft that are part of the deal would have been voided.

The Pentagon signed the $8.5 billion deal with Sikorsky for at least 653 helicopters in June 2012. Deliveries are to run through 2017. The deal included options for 263 more helicopters.

Adm. Jon Greenert, chief of naval operations, said at a House Armed Services Committee hearing in March that the cost of terminating the MH-60R contract would have been about the same as continuing it and getting the aircraft. At a hearing two weeks later, Sen. Carl Levin, chairman of the Senate Armed Services Committee, projected that terminating the deal would have cost “at least $250 million.”
 

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