Alouette in action.
Posted on 01/29/2005 3:57:17 PM PST by Jordi
WASHINGTON (Reuters) - The U.S. Navy on Friday gave a transatlantic team led by Lockheed Martin Corp. (NYSE:LMT - News) a $1.7 billion contract to build a new fleet of 23 U.S. presidential helicopters, a deal valued at up to $6.1 billion.
The decision was a stunning setback for Connecticut-based United Technologies Corp.'s (NYSE:UTX - News) Sikorsky Aircraft unit -- which for nearly 50 years has built and maintained the green and white "Marine One" helicopters that fly the president.
Sikorsky had wrapped itself in the American flag to pitch its twin-engined VH-92, based on the Black Hawk helicopter.
But lower cost, a larger cabin and faster delivery schedule allowed No. 1 Pentagon supplier Lockheed to prevail with its US101, based on the three-engined EH101 made by AgustaWestland Inc., a unit of Italy's Finmeccanica SpA.
The deal attracted international attention, with Prime Ministers Tony Blair of Britain and Silvio Berlusconi of Italy personally pressing President Bush on behalf of Lockheed's British-Italian design.
Assistant Navy Secretary John Young said the decision came after an "exhaustive and deliberative" search and would ensure a high level of quality and safety for future presidents.
"This decision truly reflects the best value and capability for the American taxpayer who is funding it, the Marines who will operate it and future presidents who will fly in it," Young said in a statement.
He told reporters he received no guidance from the White House except to "pick the best value choice for the mission."
Texas-based Textron Inc.'s Bell Helicopter is the other big partner and Los Angeles-based Northrop Grumman Corp. will provide electronics for the new chopper.
Lockheed Vice President Stephen Ramsey said 65 percent of the US101 would be built in the United States, with the remaining 35 percent to be split between Britain and Italy.
Young downplayed any impact on the U.S. industrial base, saying both companies entered good bids and met "Buy America" provisions for U.S. content.
Sikorsky President Stephen Finger said the company was disappointed about the decision and insisted its VH-92 flew farther, faster and carried more than the EH101.
He said he was confident about the future of the company's S-92 program, and said Sikorsky still expected to double its business by 2008.
Sen. Joe Lieberman, a Connecticut Democrat, said the decision was "outrageously wrong" because Sikorsky had vowed to build a helicopter that was "100 pct made in America.
"I am committed to do everything in my power to right this wrong," Lieberman said in a statement, saying he hoped Sikorsky would challenge the contract award with federal officials.
Another Connecticut lawmaker, Rep. Rosa DeLauro, also a Democrat, vowed to introduce legislation requiring the new helicopters be made entirely in the United States.
Stephen Moss, president of AgustaWestland's U.S. arm, said the US101 team was prepared to move all production of the helicopter to the United States, if that became necessary.
He emphasized that the EH101 was a "proven product," with 99 helicopters already flying in Iraq and Bosnia.
The first model of the new presidential helicopter, to begin operations in October 2009, will have 2,500-horsepower engines built by General Electric and a range of 250 miles, compared with the 100-mile range of the current "Marine One" VH-3D.
Later, it will be upgraded to travel 350 miles at a speed of 140 knots. It will be able to carry 14 passengers and a crew of four, compared with just 10 now.
The cost of the new helicopter will begin at $75 million a copy, gradually rising to about $110 million, Young said.
Analysts said the win could give Lockheed and its partners a competitive edge when the Air Force buys 194 new search and rescue helicopters next year, although Young downplayed that, saying the requirements were very different.
In addition, it could help Bethesda, Maryland-based Lockheed sell another 200 helicopters to the U.S. Coast Guard and Department of Homeland Security in future competitions.
Sen. Charles Schumer, a New York Democrat, praised the decision in a press release, saying Lockheed's victory would bring hundreds of new jobs to its Owego, New York, plant.
"Blackhawk is bad design. So many have crashed in Iraq and Afghanistan. Something wrong with it."
lots of other things have crashed also not just black hawks;
humvees, tanks, ted kennedys IQ
alot of human error is involed in the crashes
look at ted kennedy for example
Whenever the President is flying, there are actually several identical choppers flown together for security reasons.
Each of these has to have a backup so that there are always enough choppers ready to fly at a moment's notice. There are probably a few extra choppers for training purposes.
I'm sure they have both had accidents. I just happened to remember the Agusta incident from reading a book by someone who worked for Donald Trump.
Well, that figures.
Red States : 2
Blue States: 0
The President's helo is Marine One. Don't know why they get the job as opposed to the Army. The AF gets to fly the big boys (Air Force One and Air Force Two)
"Blackhawk is bad design. So many have crashed in Iraq and Afghanistan. Something wrong with it."
Actually, it's worse than that......the Blackhawk already had it's chance as Marine One. They had some outfitted to become the presidential helicopter......and one of them crashed in testing......so they stuck with what they had.
Sikorsky should have seen this one coming - they had their chance already.
I cannot say I oppose this change, since the European nations are two of America's indefatigable allies - England and Italy. Viva Blair! Viva Berlusconi! FWIW, "outsourcing of well-paying American jobs" is a political myth that the Dems wish to continue to propagate for their own gain.
The Army hasn't had anything to do with flying the Presidential helicopter since they dumped a VH-3 into the Potomac and Ford assigned the mission exclusively to the Marine Corps.
Pure unadulterated Bravo Sierra. Stick to what you know, chaplain.
More pure unadulterated Bravo Sierra. Stick to selling fertilizer.
"Sen. Joe Lieberman, a Connecticut Democrat, said the decision was "outrageously wrong" because Sikorsky had vowed to build a helicopter that was "100 pct made in America."
Wonder if he had anything to say when the US company Haliburton received gov't contracts?
The Army was removed from the shared mission of transporting the President via helicopter after dumping a VH-3 into the Potomac and Gerald Ford permanently assigned the mission to the Marine Corps.
Don't tell that to the Marines at HMX-1 who fly and maintain those VH-60Ns or the President when he's onboard one of them.
The May 1993 VH-60 crash was on a post maintenance check flight of a bird that was already part of the fleet.
When is the last time the president has been aboard one?
Bush I? Clinton? I really don't remember....... They gave up on them (for the pres.) when they had the crash. The remainder are still in the VIP squadron, but I don't think they let the president fly........(good enough for congressmen though).
The Army got fired when it comes to flying the President around in helicopters. They were fired by the President at that time, President Ford. Of course, that's not how the history books reflect the "mission re-alignment"...
The Army and Marines used to split the duties in flying the President around, until the Army put one of its helicopters of Presidential squadron in the drink on a non-transport mission...
Now the Marines fly the President and that is why the US Navy is buying/managing the program...
dvwjr
Yes, that is correct. The Marines are a Department of the U.S. Navy, and being an ex-swab, I was quickly reminded that yes, that's true, the Men's Department! LOL!
RB
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