Not entirely correct: what's actually happened is that NH Industries has decided to work with Lockheed Martin on a single bid (both companies had previously been intending to pursue individual NH90-based bids). See below:
U.S. giant aims to win copter deal
The Ottawa Citizen 6/11
Lockheed Martin Canada will be the lead contractor on the joint bid to replace the Sea Kings and will provide the onboard mission systems while NH Industries will offer up the airframe of its new NH-90 twin-engine helicopter, above.
The race for the lucrative $3-billion Sea King replacement contract has heated up with Lockheed Martin Canada, a subsidiary of the mammoth U.S. defence contractor, teaming up with the European consortium NH Industries, the Citizen has learned.
The marriage between two powerful aerospace interests transforms the competition for what will be the Liberal government's most expensive expenditure into a three-way dead heat that includes U.S.-based Sikorsky Aircraft Corp. and the British-Italian consortium EH Industries.
Lockheed Martin Canada, based in Kanata, will be the lead contractor on the joint bid and will provide the onboard mission systems while NH Industries will offer up the airframe of its new NH-90 twin-engine helicopter.
Lockheed Martin chose NH Industries over two traditional allies - the two other consortiums in the running for the Sea King contract.
Lockheed Martin supplies mission systems for 300 marine helicopters in the British and U.S. navies. In the U.S. it is teamed with Sikorsky's MH-60R Sea Hawk, and in Britain it is paired with EH Industries Merlin helicopter.
This time, Lockheed Martin believes the NH-90 is a better bet, because its state-of-the-art airframe is superior to the EH-101 Cormorant's and the Sikorsky S-92's.
"We looked at the requirements in Canada, the operational requirements - everything - and we found the NH-90 airframe to be the most attractive," Lockheed Martin vice-president Rod Skotty said in an interview. "It is also the most advanced state-of-the-art helicopter."
NH Industries aligned itself with Lockheed Martin because it found the government's Canadian content specifications too onerous. Under the terms of the competition, 20 per cent of the mission systems work must be spun off to Canadian companies, said Olivier Francou, the Canadian sales director for NH Industries.
NH Industries builds its airframe and onboard mission systems and weapons suites in Europe. For this competition, it would have had to ship $400 million of its mission systems manufacturing to Canada, said Mr. Francou. "We worked over the last two months with Canadian companies ... but it was almost impossible," Mr. Francou said.
NH Industries had been considering a solo proposal but decided this week that was just not feasible. Aligning with Lockheed Martin "will enhance the benefits of the aircraft," he added.
Lockheed Martin Canada is a wholly owned Canadian subsidiary of its U.S. parent. It has 500 employees in Canada - half are based in the Kanata head office, 150 are in Montreal and 70 are in Halifax.
But Mr. Skotty said Lockheed Martin would likely open a large manufacturing plant somewhere in Canada, likely the Maritimes, if it won the competition, which would mean more jobs in Canada. "This is very important to industry across Canada. This is a sector that has suffered a great deal over the last many years," said Mr. Skotty.
The two companies have informed the Defence Department's maritime helicopter project office, but had not planned any public announcements until the Paris Air Show next week.
The lengthy process of replacing Canada's 1960s era fleet of ship-borne helicopters is heading into a crucial and long-awaited phase. Soon, the government will tell the three main bidders whether they have passed the prequalification stage that allows them to enter the competition.
A formal call for proposals is expected by summer's end, with the awarding of the contract coming early next year. It would take four years before the first new helicopters would be delivered and would take years after that to phase in the new fleet of 28. e Defence Department has developed contingency plans to keep the Sea Kings flying until 2014.
Cheers,
t/shaft