U.S. Navy delays $1.6 billion award for White House chopper
(Reuters) (Reuters) - The U.S. Navy on Tuesday said it was delaying a $1.6 billion award for the next presidential helicopter, defusing for now a politically sensitive competition.
Sikorsky Aircraft Corp., a unit of Connecticut-based United Technologies Corp., has described its offer of the VH-92 "Superhawk" as an "all-American" solution, in contrast to a three-engine design offered by Europe's AgustaWestland and Lockheed Martin Corp., based in Bethesda, Maryland.
The Navy formally launched the competition for a new "Marine One" helicopter in December 2003 and planned to award an initial contract this spring for design and initial purchases of 23 to 25 helicopters to replace the current fleet of aging Sikorsky Aircraft Corp. VH-3Ds and VH-60Ns.
Navy officials did not set a new target for the contract award, which the companies hope will spark billions of dollars of follow-on orders from the Coast Guard and other agencies.
Navy acquisitions chief John Young said the Navy needed more time to discuss the design, performance and cost of the new helicopters with the two bidding teams.
He said comparable programs usually took 12 months from program launch until a contract award, which could put off an award in this case until December, while only four months were initially planned to evaluate the bids.
Young stopped short of predicting when a decision would be made, but industry sources said they expected a delay of at least several months.
"Given the great importance of this program and the intense competition, it is essential that the department execute this program with thoroughness and appropriate precision," the Navy said in a statement.
Acting Pentagon acquisitions chief Mike Wynne approved the delay on Tuesday after determining that the current pace of source selection would "not allow for adequate dialogue to transpire between government and industry," the Navy said.
But industry sources said the delay was more likely based on politics. They said the administration feared a decision either way could affect the 2004 presidential election.
"It's just too sensitive," said one source.
AgustaWestland, owned by Britain's GKN and Finmeccanica of Italy, teamed with Lockheed and Textron Inc's Bell Helicopter and renamed its chopper the US101 to play down its European origin as the EH101.
Stephen Ramsey, Lockheed's US101 vice president and general manager, said his team understood the decision to delay a contract award, and would continue to work closely with the Navy in coming months to ensure that the White House could still get new helicopters in the 2007-2008 time frame.
Sikorsky officials could not be reached for comment.
Ramsey on Tuesday again took issue with Sikorsky efforts to paint the US101 as an import, saying it would be built in Texas, bringing technology and jobs into the country.
The team has said 65 percent of the helicopter's parts would come from suppliers across 41 states.
Sikorsky's team includes units of Northrop Grumman Corp., Rockwell Collins Inc., L-3 Communications Holdings Inc., Berkshire Hathaway Inc. and the Carlyle Group, a private investment firm. General Electric Co. would supply engines for both competing teams.
Source: Reuters
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A business-orientated article, I would think...What a complex issue. Regardless of everything the compo looks in favour of Sikorsky to me but then, I wouldn't know. :roll
(Reuters) (Reuters) - The U.S. Navy on Tuesday said it was delaying a $1.6 billion award for the next presidential helicopter, defusing for now a politically sensitive competition.
Sikorsky Aircraft Corp., a unit of Connecticut-based United Technologies Corp., has described its offer of the VH-92 "Superhawk" as an "all-American" solution, in contrast to a three-engine design offered by Europe's AgustaWestland and Lockheed Martin Corp., based in Bethesda, Maryland.
The Navy formally launched the competition for a new "Marine One" helicopter in December 2003 and planned to award an initial contract this spring for design and initial purchases of 23 to 25 helicopters to replace the current fleet of aging Sikorsky Aircraft Corp. VH-3Ds and VH-60Ns.
Navy officials did not set a new target for the contract award, which the companies hope will spark billions of dollars of follow-on orders from the Coast Guard and other agencies.
Navy acquisitions chief John Young said the Navy needed more time to discuss the design, performance and cost of the new helicopters with the two bidding teams.
He said comparable programs usually took 12 months from program launch until a contract award, which could put off an award in this case until December, while only four months were initially planned to evaluate the bids.
Young stopped short of predicting when a decision would be made, but industry sources said they expected a delay of at least several months.
"Given the great importance of this program and the intense competition, it is essential that the department execute this program with thoroughness and appropriate precision," the Navy said in a statement.
Acting Pentagon acquisitions chief Mike Wynne approved the delay on Tuesday after determining that the current pace of source selection would "not allow for adequate dialogue to transpire between government and industry," the Navy said.
But industry sources said the delay was more likely based on politics. They said the administration feared a decision either way could affect the 2004 presidential election.
"It's just too sensitive," said one source.
AgustaWestland, owned by Britain's GKN and Finmeccanica of Italy, teamed with Lockheed and Textron Inc's Bell Helicopter and renamed its chopper the US101 to play down its European origin as the EH101.
Stephen Ramsey, Lockheed's US101 vice president and general manager, said his team understood the decision to delay a contract award, and would continue to work closely with the Navy in coming months to ensure that the White House could still get new helicopters in the 2007-2008 time frame.
Sikorsky officials could not be reached for comment.
Ramsey on Tuesday again took issue with Sikorsky efforts to paint the US101 as an import, saying it would be built in Texas, bringing technology and jobs into the country.
The team has said 65 percent of the helicopter's parts would come from suppliers across 41 states.
Sikorsky's team includes units of Northrop Grumman Corp., Rockwell Collins Inc., L-3 Communications Holdings Inc., Berkshire Hathaway Inc. and the Carlyle Group, a private investment firm. General Electric Co. would supply engines for both competing teams.
Source: Reuters
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A business-orientated article, I would think...What a complex issue. Regardless of everything the compo looks in favour of Sikorsky to me but then, I wouldn't know. :roll