Lockheed Martin to Build New Presidential Helicopter

News Release
U.S. Department of Defense / Office of the Assistant Secretary of Defense (Public Affairs) 28jan2005

The Department of Defense announced today that the team led by Lockheed Martin Systems Integration, Owego, N.Y., has been selected to build the new presidential helicopter (VXX) based on its U.S. 101 medium lift helicopter.

This $1.7 billion, cost plus award fee contract will launch the VXX program’s system development and demonstration phase during which the program will integrate a “system of systems” with a modern, in-production aircraft to provide the president with safe and reliable helicopter transportation.

“Today’s announcement is a significant milestone that caps an exhaustive and deliberative source selection process that carefully followed the Federal Acquisition Regulations,” said John Young, assistant secretary of the Navy for research, development and acquisition. “The determined effort, long hours and hard work by both the VXX government team and the two industry teams will ensure a high level of quality and safety for future presidents, as well as a timely, efficient and effective program execution.”

“This decision truly reflects the best value and capability for the American taxpayer who is funding it, the Marines who will operate it and the future presidents who will fly in it,” Young added.

The fleet of helicopters that currently supports the presidential mission includes 30-year old aircraft that were designed in the 1960’s, fielded in the 1970’s and no longer has the growth capability to incorporate the equipment necessary to provide suitable presidential support in the post 9-11 environment.

“Under this replacement program, with its technology and performance improvements, a single platform will provide better savings in total ownership costs, engineering, maintenance and logistical support over the lifetime of the program,” Young said. “The president needs a more survivable helicopter while the nation engages in the Global War on Terrorism, and we are committed to providing it as soon as possible.”

The original Presidential Helicopter Replacement Program of record proposed an initial operating capability in 2013. The VXX program was accelerated in 2003 with a currently planned IOC in fiscal year 2009.

For more information, please contact Navy Public Affairs at (703) 697-5342.

source: http://www.defenselink.mil/releases/2005/nr20050128-2037.html 16feb2005

Lockheed Martin to build Marine One:
$6 billion contract to build president's helicopters

AP 28jan2005

WASHINGTON — Lockheed Martin will build the new presidential helicopter fleet, the Navy announced Friday, putting an end to a fierce competition that had both political and international overtones.

The president "needs a more survivable helicopter while the nation engages in the global war on terrorism," said John Young, assistant secretary of the Navy for research, development and acquisition, in making the announcement.

The $6.1 billion contract to buy 23 high-tech, high-security aircraft, is relatively small in the military budget. But it is emblematic of two important issues: the outsourcing of American jobs and the question of how open the U.S. military market is to foreign contractors.

Maryland-based Lockheed and its European partners had waged a major public relations campaign, with the help of political leaders from England and Italy.

The decision was a blow to Connecticut-based Sikorsky Aircraft, which has built the presidential fleet since 1957, and saw the contract to build Marine One as a point of pride.

"The US101 will provide the president of the United States with a state-of-the-art-helicopter ... an Oval Office in the sky," said Sen. Hillary Clinton, D-New York.

But Rep. Rosa DeLauro, D-Connecticut, who was in her home state at the Sikorsky plant in Stratford, expressed disappointment.

"'Made in America' should mean something," she said. "The Defense Department has some explaining to do."

For the winner the contract means millions of dollars in federal research funds, and a potential edge when the Pentagon looks to replace hundreds of search and rescue helicopters in coming years.

It also gives Lockheed the bragging rights to one of the most photographed helicopters in the world: the president's green-and-white aircraft often shown as it lifts off from the South Lawn of the White House.

Lockheed's winning entry, the US101, is based on a British-Italian AgustaWestland aircraft, now owned by Finmeccanica. The helicopter has several key components, including the main transmission and rotor blades, that will be built overseas.

Sikorsky, a unit of United Technologies Corp., and its backers argued that the VH-92 Super Hawk's all-American parts provided greater security than a helicopter built in part in other countries.

The Navy went with the longer, wider, more powerful aircraft, with its three engines, built by General Electric in Lynn, Mass. Sikorsky's Super Hawk has two engines.

Plans to replace the Marine Corps' aging presidential squadron took on greater importance after the September 11 terrorist attacks. Last year the White House pressed for an expedited bidding process because of security concerns, but Navy officials later delayed a decision, saying they needed about a year to get more information.

The companies submitted bids last February, and have waged a massive public relations campaign, complete with billboards, demonstration flights, ads and radio commercials.

Friday's loss is the second major defeat for Sikorsky is a little less than a year. Last February the Pentagon canceled the $39 billion Comanche helicopter program, which was a joint venture with Boeing Helicopters.

The company still builds one of the military's workhorse helicopters, the Black Hawk, which is being used broadly in the Iraq war. The Pentagon is expected to order hundreds more in coming years to replace current models.