Navy delays decision on presidential helicopter contract
By LOLITA C. BALDOR
Associated Press Writer
November 17, 2004, 6:49 PM EST
WASHINGTON -- The U.S. Navy has put off until at least next January a decision on a contract to replace the aging Marine One presidential helicopter fleet, giving both prospective contractors time to bolster their last-minute lobbying for the coveted program.
John J. Young Jr., the assistant Navy secretary for research, development and acquisition, and other Navy officials went to the White House Wednesday to give the administration an update on the decision process. The meeting was done at the request of the Navy.
The competition has been clouded by an ongoing debate over outsourcing American jobs, and "buy America" issues. A key reason for the delay is the need for more data on the suppliers _ both in and out of the country _ and how they will meet stringent security requirements, according to sources close to the Navy discussions, who did not want to be identified because of the sensitive contract negotiations.
Stratford, Conn.-based Sikorsky Aircraft has argued that its VH-92 Super Hawk is 100 percent American made. Maryland-based Lockheed Martin has said its US101, which is based on AgustaWestland's British-Italian made EH101 Merlin, will be as much as 80 percent American made.
Navy spokesman Lt. Chris Servello said the White House has not pressured the Navy to choose either Sikorsky or Lockheed, who are vying for the prestigious $1.6 billion contract award.
"This is a Navy acquisition decision," said Servello, adding that the Navy expects to announce the contract winner by the end of January.
The Defense Department has scheduled a Defense Acquisition Board meeting for Feb. 10. Navy officials said they have not made a decision yet, but believe they will be able to move forward before the February date.
Once the board meets and determines the Navy has all the necessary information to make a choice, the Navy can then announce its contractor decision.
Both companies have been waging massive public relations campaigns, hoping to influence the decision. In the last two weeks alone, both have peppered Capitol Hill and the Defense Department with letters urging support for their helicopter.
The decision was initially expected last spring, but the Navy announced in March that it needed more time and would make the decision in December.
Servello said discussions between the Navy and the two companies "are ongoing and the Navy has determined that additional time is required to make the best possible decision for the new presidential helicopter."
Representatives of both Lockheed and Sikorsky said they were comfortable with the decision and both remained confident with their chances.
"We certainly understand that (the Navy) has an enormous amount of data that they're trying to evaluate," said Sikorsky spokesman Ed Steadham. "And they want to be as thorough as they possibly can. We certainly understand why they might need a little extra time."
Lockheed Vice President Stephen D. Ramsey said the "Navy's decision to delay awarding the Marine One contract will have no impact on our chances of winning the competition."
Both bidders say they have the best designed and built aircraft. Lockheed's US101 is larger, more powerful and has three engines. Sikorsky built the current presidential fleet and its VH-92 Super Hawk is touted as one of the safest helicopters made.
The Merlin is used by the British Navy, which has been investigating the cause of a crash in March of one of its helicopters. Questions about potential problems with cracks in the tail rotor were raised, but U.S. Navy officials have discussed the matter with Lockheed and their concerns have been addressed, according to one Navy official who did not want to be identified because the contract discussions are secret.
Loren Thompson, a defense analyst with the Lexington Institute who has worked for Lockheed, said he believes that the two contractors have answered most of the Navy's technical questions, and the delay was triggered more by scheduling difficulties. He said Lockheed has an edge because of its larger size and engine capacity.
Rep. Rosa DeLauro, D-Conn., who met with Sikorsky officials and other Connecticut congressional delegation members Tuesday night, said she is hopeful that politics will not factor into the decision. And, "if the contract is awarded on the merits, it's going to be Sikorsky."