Lockheed Martin Protests Loss of Military Helicopter Contract

Lockheed Martin teamed with

Boeing Co.

to offer an all-new helicopter, the Defiant X. The company said its chopper was far cheaper to build and operate than the winning Textron proposal, triggering Lockheed’s decision to lodge a protest with the Government Accountability Office.

“The data and discussions lead us to believe the proposals were not consistently evaluated to deliver the best value in the interest of the Army, our Soldiers and American taxpayers,” Lockheed said in a statement.

The Army and Textron didn’t immediately respond to requests for comment.

GAO has the power to recommend reopening competitions or amending existing contracts if it finds in favor of protests, which can take several months. The office has 100 days to make a final decision.

Winning bidders often have to stop work on programs until the GAO makes a decision. In 2018, the GAO rejected a protest from Boeing after its proposal for a new bomber built in partnership with Lockheed Martin lost to a rival design from

Northrop Grumman Corp.

The new plane, the B-21, was rolled out earlier this month.

Most company protests of federal contract awards involve concerns about the government’s fairness in setting requirements or implementing evaluation criteria.

The Army sought a new helicopter that was faster and had more range than the Black Hawk. It hasn’t said the number of the new choppers it will seek to buy, which hinges on the Pentagon budget and production rates. A one-for-one replacement of the existing fleet could be worth $60 billion to $80 billion, analysts have estimated.

Textron pitched its V-280 Valor tilt-rotor, and analysts said its win helped cement the future of the company, as the Pentagon reduces its purchase of older systems such as the Osprey tilt-rotor that Textron makes in partnership with Boeing.

Lockheed Martin’s Sikorsky business has been challenged by the drop in demand for commercial helicopters because of reduced spending by energy companies, which use them to service offshore facilities.

Sikorsky is making new helicopters that will fly the president as Marine One, as well as the CH-53K heavy-lift chopper for the Marine Corps and a new rescue helicopter for the Air Force.

Textron received an initial $1.3 billion contract to develop the V-280, a tilt-rotor design where the rotors pivot to allow vertical takeoff and landing as well as forward flight. The Lockheed-Boeing Defiant X is a more conventional design, with top rotors and a rear propeller to increase its speed.

With analysts forecasting sales of $13.3 billion this year, Textron is dwarfed by Lockheed and Boeing. The Providence, R.I., company is a diversified manufacturer that also makes Cessna business jets, E-Z-Go golf carts and auto parts. Analysts in recent years viewed it as a breakup candidate, as conglomerates became increasingly out of favor with investors.

Lockheed Martin teamed with

Boeing Co.

to offer an all-new helicopter, the Defiant X. The company said its chopper was far cheaper to build and operate than the winning Textron proposal, triggering Lockheed’s decision to lodge a protest with the Government Accountability Office.

“The data and discussions lead us to believe the proposals were not consistently evaluated to deliver the best value in the interest of the Army, our Soldiers and American taxpayers,” Lockheed said in a statement.

The Army and Textron didn’t immediately respond to requests for comment.

GAO has the power to recommend reopening competitions or amending existing contracts if it finds in favor of protests, which can take several months. The office has 100 days to make a final decision.

Winning bidders often have to stop work on programs until the GAO makes a decision. In 2018, the GAO rejected a protest from Boeing after its proposal for a new bomber built in partnership with Lockheed Martin lost to a rival design from

Northrop Grumman Corp.

The new plane, the B-21, was rolled out earlier this month.

Most company protests of federal contract awards involve concerns about the government’s fairness in setting requirements or implementing evaluation criteria.

The Army sought a new helicopter that was faster and had more range than the Black Hawk. It hasn’t said the number of the new choppers it will seek to buy, which hinges on the Pentagon budget and production rates. A one-for-one replacement of the existing fleet could be worth $60 billion to $80 billion, analysts have estimated.

Textron pitched its V-280 Valor tilt-rotor, and analysts said its win helped cement the future of the company, as the Pentagon reduces its purchase of older systems such as the Osprey tilt-rotor that Textron makes in partnership with Boeing.

Lockheed Martin’s Sikorsky business has been challenged by the drop in demand for commercial helicopters because of reduced spending by energy companies, which use them to service offshore facilities.

Sikorsky is making new helicopters that will fly the president as Marine One, as well as the CH-53K heavy-lift chopper for the Marine Corps and a new rescue helicopter for the Air Force.

Textron received an initial $1.3 billion contract to develop the V-280, a tilt-rotor design where the rotors pivot to allow vertical takeoff and landing as well as forward flight. The Lockheed-Boeing Defiant X is a more conventional design, with top rotors and a rear propeller to increase its speed.

With analysts forecasting sales of $13.3 billion this year, Textron is dwarfed by Lockheed and Boeing. The Providence, R.I., company is a diversified manufacturer that also makes Cessna business jets, E-Z-Go golf carts and auto parts. Analysts in recent years viewed it as a breakup candidate, as conglomerates became increasingly out of favor with investors.