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Lockheed Martin and Boeing protest LRS-B contract award
by Ryan Maass
Washington (UPI) Nov 6, 2015


Lockheed Martin finalizes Sikorsky Aircraft acquisition
Bethesda, Md. (UPI) Nov 6, 2015 - Lockheed Martin closed its $9 billion acquisition of Sikorsky Aircraft from United Technologies Corp.

Lockheed Martin's announced it cleared all regulatory hurdles on Tuesday, following approval from government regulators from the United States and other countries. The purchase reaffirms Lockheed Martin's status as leading provider of aerospace and defense products, with the aim of expanding their production of rotary-wing aircraft.

"Today we are proud to welcome the Sikorsky team to Lockheed Martin," said Lockheed Martin chairman, president, and CEO Marilyn Hewson in a statement.. "Lockheed Martin and Sikorsky share a legacy of innovation and performance that has shaped the history of aviation for more than a century."

Lockheed Martin has named Dan Schultz as president of Sikorsky Aircraft, now a Lockheed Martin-owned company. Schultz, a former Marine helicopter pilot, has led Lockheed Martin efforts in developing and integrating helicopter systems.

"He brings a wealth of leadership experience and a deep understanding of our international customer base," Hewson said of Schultz. "I am confident he is the right person to lead Sikorsky at this pivotal time."

The acquisition has been met with criticism from defense officials. U.S. Defense Department Under Secretary for Acquisition Frank Kendall told reporters in October the purchase raises concerns the defense industry may be subject to excessive consolidation, which could hinder innovation and pose a threat to national security in the process.

Lockheed Martin and Boeing filed a formal protest to the U.S. Government Accountability Office over losing the contract for the Long Range Strike Bomber to Northrop Grumman.

The request asks government officials to review the contract decision, claiming the selection process for the next-generation bomber was fundamentally flawed. Officials from both defense contractors say the government did not properly evaluate the costs of their proposals, or take into account the risk related to their competitor's ability to perform.

The U.S. Air Force awarded Northrop Grumman the highly-anticipated contract in October, beating out a joint venture between Lockheed Martin and Boeing. The contract has an estimated value of as much as $80 billion over the life of the program. The new stealth bomber will be capable of carrying thermonuclear weapons, and be capable of adding new technologies as they become available.

The losers of the contract announced plans to seek answers on the selection process the day after the contract was announced.

"We are interested in knowing how the competition was scored in terms of price and risk, as we believe that the combination of Boeing and Lockheed Martin offers unparalleled experience, capability and resources for this critically important recapitalization program," Boeing and Lockheed Martin said in a joint statement in October.

Northrop Grumman responded to the protest action, saying in a statement the Air Force "conducted an exceptionally thorough and disciplined process with multiple layers of review."

"Northrop Grumman Corporation is disappointed that its former LRS-B competitors have decided to disrupt a program that is so vital to national security."

The company also took a shot at its competitors ongoing aerospace contracts.

"Northrop Grumman offered an approach that is inherently more affordable and based on demonstrated performance and capabilities. Our record stands in contrast to that of other manufacturers' large aircraft programs of the last decade."

The Air Force is currently planning to procure 100 of the new bombers following production.


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