The Navy announced Wednesday that Sikorsky has been selected to build the next presidential helicopter following a competition that featured Sikorsky as the only bidder and cast little doubt on the outcome.
The Naval Air Systems Command (NAVAIR) contract valued at $1.24 billion covers the engineering and manufacturing development phase that includes six test aircraft, with four of them to transition to operations in 2020.
The Navy plans to acquire another 17 under full production that will eventually stretch the total value of the “VXX” program well into the billions of dollars.
Sikorsky, a division of United Technologies [UTX], submitted its VH-92 airframe, based on the S-92, for the VXX program. Lockheed Martin [LMT] joined Sikorsky to serve as the systems integrator for the helicopters that ferry presidents under the call name “Marine One.”
“We stand ready to deliver the next Marine One, the world’s most advanced executive transport helicopter.” Mick Maurer, the president of Sikorsky, said in a statement after the award.
Other companies were thought to be in the running for the program. But as the August deadline neared for submitting final proposals, they said they would not participate because the requirements favored Sikorsky.
Boeing [BA], which was considering whether to bid with its CH-47 Chinook airframe or partner with Bell Helicopter [TXT] to offer the V-22 Osprey, declined to submit a proposal, as did AgustaWestland, a unit of Italy’s Finmeccanica. AgustaWestland said the criteria provided “a significant advantage to our likely competitor” and Boeing declared its options would not be “competitive for this program as it is currently structured.”
The Navy, however, said Wednesday it received feedback from the various companies while drafting the requirements, and incorporated the information into the final request for proposals (RFP) issued a year ago.
“We used their input to create the final RFP,” NAVAIR spokeswoman Kelly Burdick said. “Everybody’s input was considered and used during the RFP process.”
Capt. Dean Peters, the head of the VXX program at NAVAIR, said in a statement that cost and technical performance were the key areas that shaped the criteria.
“We are committed to a cost-effective acquisition strategy and prudent use of existing technology,” he said. “Sikorsky’s proposal adequately supports this commitment and together we will efficiently deliver the next presidential helicopter fleet in an affordable and timely manner.”
Sikorsky said it expects the the Navy to order the first production aircraft in 2019 with all 17 to be delivered by 2023.
Speaking to reporters in April, Peters said there were procedures in place to ensure the government gets “a fair and reasonable price for the aircraft” separately from the number of submissions.
“There are lots of rules in place associated with the number of bidders, and we will follow those procedures regardless of the number of bidders,” Peters said at the time. “And those procedures guarantee that the government will get a fair and reasonable price for the aircraft.”
The Marine Corps for decades has been flying the president with a fleet of VH-3 Sea Kings and smaller VH-60 Whitehawks–both built by Sikorsky. The Navy has been trying to replace those airframes for years.
The previous attempt failed after a 2005 contract awarded to Lockheed Martin and partner AgustaWestland was cancelled four years later. Then-Defense Secretary Robert Gates terminated the program after continuous changes to the requirements caused costs to double. Lockheed Martin subsequently teamed up with Sikorsky on the latest program.
Sikorsky said its S-92 airframe is being used by 10 nations to fly heads of state. It is a two-engine, medium-lift helicopter.