Boeing to compete for new presidential helicopter contract with license purchase

Boeing will compete for a new fleet of presidential helicopters by getting the rights from AgustaWestland to build its AW 101 medium-lift helicopter in the United States.

The AW 101 is the same helicopter that served as the basis for a previous presidential helicopter contract. The Pentagon and White House canceled that contract with much fanfare after its price tag doubled due to a series of required design changes.

{mosads}AgustaWestland was partnered with Lockheed Martin, one of Boeing’s top competitors, for that contract.

Boeing announced Monday that it will secure a license from AgustaWestland — an Italian-British venture and part of the Italian consortium Finmeccanica — that will give Boeing the full intellectual property, data and production rights for the aircraft. That arrangement would allow Boeing to present the AW 101 as a Boeing aircraft and build it at one of its U.S. facilities, the company said in a statement.

If selected for the contract, Boeing will be the prime contractor and will design, build and deliver the aircraft, the company said. A team of subcontractors, including AgustaWestland, will work with Boeing to deliver the helicopters to the Navy, which manages the program.

Boeing’s announcement drew an immediate jab from EADS North America. Boeing is going head-to-head with that company, the subsidiary of the European defense and aerospace conglomerate, for an unrelated $35 billion Air Force tanker aircraft contract, and Boeing officials have raised concerns about potentially awarding the tanker contract to a foreign-owned company.

“We’re pleased that Boeing has openly acknowledged the contribution that international teams, products and platforms make to U.S. national security,” EADS North America said in a statement. “With this announcement, we now expect Boeing to cease its shrill rhetoric and finally allow the KC-X [tanker] competition to focus on the merits of the tanker offerings.” 

Boeing, together with SAIC, is also partnering with German companies Krauss Maffei-Wegman and Rheinmetall Defence to bid for the Army’s new infantry fighting vehicle.

Boeing officials pointed out the licensing arrangement with AgustaWestland is different from the tanker competition, because Boeing would essentially build the helicopter as the prime contractor in the United States and rename it Boeing 101.

“It will be a Boeing, made-in-the-USA product, as opposed to the EADS tanker, which will be made in Toulouse and other European locations,” said Sean McCormack, Boeing’s spokesman.

EADS is planning to assemble the tanker in a new facility in Mobile, Ala., if it wins the Air Force contract.

Phil Dunford, vice president and general manager of Boeing Rotorcraft, expressed confidence that the AW 101 could be successful in a new contract bid. Dunford cited Boeing’s experience in rotorcraft programs and its expertise with complex Pentagon aircraft programs in keeping the contract affordable.

The Navy has, in effect, started a new competitive process to replace the decades-old presidential helicopter fleet. It is also considering other options.

The Navy, which manages the program, has issued a request to the industry for information to restart the bidding process and help inform the analysis of alternatives.

Boeing is also submitting to the Navy information on two of its other helicopters, the Chinook and the V-22, Dunford said in a teleconference with reporters Monday.

Meanwhile, AgustaWestland’s former partner, Lockheed Martin, has partnered with Sikorsky to bid for a new presidential helicopter program. Connecticut-based Sikorsky will take on the role of the prime contractor with its H-92 medium lift helicopter, while Lockheed Martin will provide and integrate the necessary systems for the presidential helicopter.

Lockheed and Sikorsky went head to head five years ago for a much-coveted contract to build a new fleet of Marine One helicopters. At the time, Lockheed Martin, partnered with helicopter maker AgustaWestland, won the contract for the VH-71 presidential helicopter replacement program.

The Pentagon formally canceled the VH-71 program last May, after it suffered from delays and ballooning costs. That decision followed remarks President Barack Obama made last February in which he called the VH-71 helicopter an “example of the procurement process gone amok.”

The price tag for the canceled VH-71 rose from an estimated $6.5 billion to $13 billion, in part because of growing technological requirements from the Marine One Squadron, which flies the presidential helicopters.

— This story was updated at 2:54 p.m.