Boeing Beats Sikorsky, Lockheed in $13 Billion Helicopter Bid
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Boeing Co., the second-largest American defense contractor, won a bid to replace the fleet of helicopters that rescue downed American pilots, beating Lockheed Martin Corp. and incumbent United Technologies Corp.’s Sikorsky unit for a program that may be worth as much as $13 billion.
The Air Force, which plans to buy 141 helicopters through 2019, notified congressional leaders of Boeing’s win today. The formal announcement of the initial $712 million contract will be made by the Pentagon at 5 p.m. The winning Boeing HH-47 is a variant of the twin-rotor Chinook family of helicopters flown by the Army.
Boeing may have convinced Pentagon officials they could eliminate development risk, streamline logistics and lower overhead costs by picking an aircraft already deployed byAmerica, a defense analyst with the Alexandria, Virginia-based Lexington Institute, Loren Thompson, said. The Air Force preferred the Lockheed aircraft, which better met its requirements, he said.
“It appears the HH-47 is the inspiration of the Office of the Secretary of Defense where there is a push to avoid adding new airframes to the fleet unless it’s absolutely necessary,” Mr. Thompson said before the award was announced. He had projected Lockheed would win due to strong support within the Air Force.
