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.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe 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
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
