WASHINGTON (AP) – The Air Force awarded a $13 billion contract Thursday for search and rescue combat helicopters to a team led by aerospace giant Boeing Co.
Chicago-based Boeing beat out rival Lockheed Martin Corp. and helicopter maker Sikorsky Aircraft for the contract to build 141 helicopters by 2019 for the Air Force’s fleet of rescue aircraft. Estimates of the contract’s eventual value run as high as $25 billion.
Some Wall Street and industry analysts had thought Maryland-based Lockheed would win. The Lockheed version had a roomier cabin and three powerful engines and was cheaper than Boeing’s, a modified version of its CH-47 Chinook helicopter.
The decision is the latest blow to Sikorsky, a division of United Technologies Co., which sought to replace its own Pave Hawk helicopters that the Air Force has flown since 1982 on rescue missions.
Sikorsky, based in Stratford, Conn., spent about $1 billion developing the new S-92 model, according to analyst estimates, but it has yet to find a U.S. government buyer. Sikorsky has a deal to provide 28 to the Canadian government.
Boeing called the Air Force decision a vote of confidence in the company.
“Backed by our decades of experience in rotorcraft design, production and systems integration, the HH-47 will rapidly deploy versatile rescue capability to even the most challenging combat rescue situation’s ability to provide them the rotorcraft they need for this very important mission,” said Jim Albaugh, president and chief executive officer of Boeing Integrated Defense Systems.
Sikorsky President Jeffrey Pino said in a conference call with reporters Thursday evening that the loss will not affect the company’s long-term business.
“I have to tell you Sikorsky is very disappointed that our helicopter was not selected, but I have to tell you we’re not discouraged in the least in the future of the company. Today’s decision will not slow our growth path.”
Pino cited what he called a “very disparate difference” between the two competing helicopters. The Sikorsky helicopter is based on newer technology and is smaller, he said. However, he does not expect to know for certain what tipped the balance to Boeing until the military provides details, which are likely to be available in two or three weeks.
A team led by Lockheed had offered the US-101, the same helicopter selected last year for the Navy’s presidential helicopter, Marine One. Boeing also teamed with Sikorsky to offer the S-92, a newer helicopter mostly used by offshore oil companies.
The Navy’s decision to award the presidential helicopter fleet to Lockheed and its international partners, including the British-Italian company, AgustaWestland, sparked animated debate over buy-America issues.
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Associated Press writers Devlin Barrett in Washington, Stephen Manning in College Park, Md., and Stephen Singer in Hartford, Conn., contributed to this story.
AP-ES-11-09-06 1835EST
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