HUNTSVILLE, Ala., July 9, 2012 /PRNewswire/ -- The U.S. Army
and Navy today signed an $8.5 billion
contract with Sikorsky Aircraft Corp., a subsidiary of United
Technologies Corp. (NYSE: UTX), to buy a baseline quantity of 653
BLACK HAWK and SEAHAWK® helicopters through December 2017. The five-year contract will
yield significant savings for the U.S. Government compared with
purchasing the same quantity across five separate annual
agreements.
(Logo: http://photos.prnewswire.com/prnh/20060403/SIKORSKYLOGO
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The five-year agreement also allows the Army and Navy to order
as many as 263 more aircraft within the same contractual terms.
If exercised, the optional purchases could push the contract
value as high as $11.7 billion.
Actual production quantities will be determined year-by-year
over the life of the program based on funding allocations set by
Congress and Pentagon acquisition priorities.
"By buying a five-year quantity of four helicopter models in a
single joint-service purchase, the two services have enabled
Sikorsky and our suppliers to aggressively control our long- term
costs," said John Palumbo,
Sikorsky's Vice President for BLACK HAWK aircraft production.
"Furthermore, by ordering a similar number of aircraft
year-over-year, the Army and Navy have ensured that we can
stabilize our supply base over the same period of time."
Designated Multi-Year 8 -- for the eighth multi-year order of
H-60 helicopters since fiscal year 1982 -- today's formal signing
ends more than three years of planning, including six months of
negotiation. The base contract includes UH-60M utility and
HH-60M MEDEVAC helicopters for the U.S. Army, and MH-60R and MH-60S
helicopters for the U.S. Navy. To reach the full baseline
value of $8.5 billion, the services
are ordering aircraft in the base agreement to be sold via the U.S.
Government's Foreign Military Sales program. These aircraft
include Foreign Military Sale (FMS) UH-60M aircraft for several
allied countries and MH-60R SEAHAWK anti-submarine and anti-surface
warfare helicopters for the Royal Australian Navy. Colonel
Thomas Todd, the Utility Helicopters
Project Manager, stated that, "This contract will provide our Army,
sister services and Allies with state-of-the-art modernized
helicopters. Moreover, this effort will stabilize our
manufacturing base during this period of fiscally challenging
times."
BLACK HAWK and SEAHAWK aircraft deliveries under the new
contract will begin this month. Sikorsky produces the two H-60M
BLACK HAWK and two MH-60 SEAHAWK aircraft models on four separate
production lines at its final assembly facility in Stratford, Conn., and West Palm Beach, Fla.
Sikorsky Aircraft Corp., based in Stratford, Conn., is a world leader in
aircraft design, manufacture and service. United Technologies
Corp., based in Hartford, Conn.,
provides a broad range of high-technology products and support
services to the aerospace and building systems industries.
This press release contains forward-looking statements
concerning opportunities for development, production and sale of
helicopters. Actual results may differ materially from those
projected as a result of certain risks and uncertainties, including
but not limited to changes in government procurement priorities and
practices, budget plans, availability of funding and in the type
and number of aircraft required; challenges in the design,
development, production and support of advanced technologies; as
well as other risks and uncertainties, including but not limited to
those detailed from time to time in United Technologies
Corporation's Securities and Exchange Commission filings.
For more information, visit www.sikorsky.com
SOURCE Sikorsky Aircraft Corp.