The U.S. Navy awarded Lockheed Martin (NYSE: LMT) a $1.05 billion, five-year contract to provide more than 200 digital cockpits and integrated mission systems and sensors for the Navy MH-60R "Romeo" and MH-60S "Sierra" helicopters.
"U.S. Navy crews operating the 300-plus MH-60 Romeo and Sierra helicopters already in the fleet understand just how critical these aircraft are to protecting our ships from surface and undersea threats," said Rear Adm. Paul Grosklags, U.S. Naval Air Systems vice commander. "This contract represents the Navy's commitment to build and field the most technologically advanced maritime helicopter fleet in the world."
Specifically, the new multi-year contract includes 162 cockpits, integrated missions systems and sensors for MH-60R "Romeo," an anti-surface and anti-submarine warfare helicopter. It also funds 62 digital cockpits to complete the Navy's program of record for Sierra aircraft, used for ship-to-ship cargo resupply, search and rescue, and close-in defense of Navy ships.
A multi-year procurement contract such as this one must meet rigorous criteria before being approved by Congress, including being able to demonstrate double-digit cost savings.
"This contract award ensures uninterrupted, on-time deliveries of the MH-60R and MH-60S helicopter to the U.S. Navy fleet," said Dan Spoor, vice president of aviation systems for Lockheed Martin's Mission Systems & Sensors business. "Plus the multi-year structure, versus an annual contract, allows us to provide our customer with more than 10 percent savings annually, surpassing Pentagon cost predictions."
Lockheed Martin provides the digital cockpit common to the MH-60R and MH-60S, and integrates the mission systems and sensors aboard the MH-60R helicopter in Owego, N.Y.
Both aircraft are designed and manufactured by Sikorsky Aircraft, Stratford, Conn.
Source: Lockheed Martin Corporation (NYSE: LMT)
Date: Apr 6, 2012