The US Army has awarded Bell Textron (TXT.US) a contract worth a total of $1.3 billion to produce a helicopter that will replace the aging UH-60 Black Hawk and be a key component of the Army's future force. The information was released before the Defense Department on December 5.
The contract is worth $1.3 billion with an initial commitment valued at $232 million over the next 19 months.
The total order amount for FLRAA, including the engineering and development production phase and the first batch of low-production initial production, is $7.1 billion.
The long-term potential is estimated at $70 billion, depending on how many aircraft the Army orders in the long term to include potential foreign military sales.
For the past several years, the Bell Textron and Sikorsky-Boeing teams have been racing against each other for this high-profile contract, producing futuristic prototypes and logging flight hours. Army commanders were initially expected to announce the winner earlier this year, but said they needed additional time to review the bids. Then on November 21, Bush Assistant Secretary of the Army for Acquisition, Logistics and Technology told reporters that a decision would be announced by the end of the calendar year, saying the delay was simply due to the necessary "quality control" and "due diligence" associated with a contract "this large." It is not known at this time whether an appeal of the decision will be filed by Sikorsky-Boeing, but given the scale of the FLRAA program, it would not be surprising. The appeal could potentially delay the Army in its quest to roll out a new FLRAA fleet around 2030, but service leaders said they are factoring the potential delay into the schedule.
The Sikorsky-Boeing team did not disclose whether it would be filing an appeal, but issued a brief statement after the decision was announced.
Source: xStation
Daily summary: Sentiments on Wall Street stall at the end of the week🗽US Dollar gains
AbbVie near 1-month low after earnings report 📉
Wall Street optimism tempers amid falling odds of December Fed rate cut
DE40: Decline of sentiment in Europe
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
