US GAO denies Lockheed protest of Textron $7 billion Army helicopter deal
Reuters
Published Apr 06, 2023 03:13PM ET
Updated Apr 06, 2023 04:47PM ET
By Mike Stone
WASHINGTON (Reuters) -The U.S. Government Accountability Office on Thursday denied Lockheed Martin Corp (NYSE:LMT)'s protest of the Army contract for the Future Long Range-Assault Aircraft worth as much as a $7.1 billion, awarded to Textron Inc (NYSE:TXT)'s Bell helicopter unit over Lockheed's Sikorsky unit.
The U.S. Army "reasonably evaluated Sikorsky's proposal as technically unacceptable because Sikorsky failed to provide the level of architectural detail required by the" request for proposal, the GAO said in a statement.
The Army awarded the contract in December in the hopes of ending a years-long competition for its next-generation helicopter that would partially replace its fleet of more than 2,000 medium-class UH-60 Black Hawk utility helicopters built by Sikorsky since the 1970s.
The Army has said it plans to fly its remaining Black Hawk fleet through the 2060's.
The initial contract award was for $232 million, but the first batch of helicopters in low rate production will be worth $7.1 billion. Ultimately, the contract is potentially worth around $70 billion - over decades - depending on how many the Army and U.S. allies order, the Army has said.
In the FLARAA competition was Bell's V-280 "Valor," a tiltrotor aircraft that has reached speeds in excess of 340 mph (547 kph) according to the Army. It beat out the entrant from Lockheed's Sikorsky unit and Boeing (NYSE:BA) Co's SB-1 "Defiant" which has two coaxial rotors and a single pusher propeller and has reached speeds of 265 mph (426 kph), according to the Army.
“We remain confident the Lockheed Martin Sikorsky and Boeing team submitted the most capable, affordable and lowest-risk Future Long-Range Assault Aircraft solution. We will review the GAO’s decision and determine our next steps,” the companies said in a statement.
Lockheed could bring the matter before the US Court of Federal Claims.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.