Siko­rsky wins $8.5 bil­lion con­tract

SP's MAI - - AEROSPACE -

The US Army and Navy have signed an $8.5 bil­lion con­tract with Siko­rsky Air­craft Corp. to buy a base­line quan­tity of 653 Black Hawk and Sea­hawk he­li­copters through De­cem­ber 2017.

The five-year con­tract will yield sig­nif­i­cant sav­ings for the US Gov­ern­ment com­pared with pur­chas­ing the same quan­tity across five sep­a­rate an­nual agree­ments.

The five-year agree­ment also al­lows the Army and Navy to or­der as many as 263 more air­craft within the same con­trac­tual terms. If ex­er­cised, the op­tional pur­chases could push the con­tract value as high as $11.7 bil­lion. Ac­tual pro­duc­tion quan­ti­ties will be de­ter­mined year-by-year over the life of the pro­gramme based on fund­ing al­lo­ca­tions set by Congress and Pen­tagon ac­qui­si­tion pri­or­i­ties.

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