≈$11.6B Army DEFINITIVE CONTRACT W58RGZ12C0008

H-60 (Black Hawk and others) multi-year helicopter contract: ~$11.6B — an Army contract with Sikorsky (USAspending)

Department of the Army 2012-06-06 〜 2023-07-21

The U.S. Army awarded a five-year, multi-year contract for H-60 helicopters (Black Hawk and others) to Sikorsky, covering up to 916 aircraft for the Army, Navy, and Foreign Military Sales (FMS) — including Saudi Arabia, Taiwan, Thailand, and Australia. The value is about $11.6 billion ($11,602,480,135).

Contract key facts

  • RecipientLockheed Martin
  • Contract value$11,602,480,135 (≈$11.6B)
  • BranchArmy
  • Awarding agencyDepartment of Defense
  • Awarding sub-agencyDepartment of the Army
  • Award typeDEFINITIVE CONTRACT
  • Period of performance2012-06-06 〜 2023-07-21
  • Contract ID (PIID)W58RGZ12C0008

Contract scope (original)

MULTI SERVICE, 5 YR, MULTI-YR CONTRACT FOR H-60 HELICOPTERS. FY2012 FY2016 PRODUCTION CONTRACT FOR ARMY/NAVY/FMS UH/HH/MH-60 HELICOPTERS TO INCLUDE PROCUREMENT OF UP TO 916 EACH AIRCRAFT AND RELATED SUPPORT, SERVICES, SYSTEMS/PROJECT MANAGEMENT, PUBLICATIONS, AND TECHNICAL DATA. FMS COUNTRIES INCLUDE SAUDI ARABIAN NATIONAL GUARD (SANG), TAIWAN, THAILAND AND ROYAL AUSTRALIAN NAVY (RAN).

Key points

  • Five-year, multi-year H-60 helicopter contract; up to 916 aircraft
  • Awarded to Sikorsky; awarding component is the U.S. Army; also Navy and FMS
  • FMS countries: Saudi National Guard, Taiwan, Thailand, Royal Australian Navy
  • Value ~$11.6B ($11,602,480,135), definitive contract, Jun 2012–Jul 2023
  • Five years, FY2012 to FY2016, and up to 916 aircraft, including sales to Saudi Arabia, Taiwan, Thailand and Australia.

1A multiyear contract for H-60 helicopters

This is a five-year, multi-service, multi-year H-60 helicopter contract; the FY2012–FY2016 production lot procures up to 916 UH/HH/MH-60 aircraft for the Army, Navy, and FMS, including related support, services, systems/project management, publications, and technical data. The FMS (Foreign Military Sales) countries listed are the Saudi Arabian National Guard (SANG), Taiwan, Thailand, and the Royal Australian Navy (RAN).

2How a multiyear contract lowers unit cost

A multiyear contract commits several years of production at once rather than repeating a single-year order each time. The supplier can buy material in bulk and keep the production line and workforce loaded on a predictable schedule, which tends to hold down the cost per aircraft.

In exchange the government binds itself to future years, which is why multiyear procurement in the United States requires specific authorization from Congress. Bundling five years and as many as 916 aircraft, as this award does, reads as an attempt to capture as much of that effect as possible.

3The Black Hawk as a workhorse

The UH-60 "Black Hawk" is the Army's mainstay utility helicopter, with many variants including the Navy's MH-60 series. This is a textbook "multi-year contract," which bundles multiple years and multiple customers to lower unit cost.

4Five years, 916 aircraft, four countries

The scale of this contract is written along three axes: years, aircraft and recipient nations. Taking the full effect of a multiyear arrangement is what those numbers reflect.

Production years committedFY2012 to FY2016, five years
Aircraft procuredup to 916UH, HH and MH-60
Foreign Military Sales recipients4Saudi Arabian National Guard, Taiwan, Thailand, Royal Australian Navy

A multiyear contract commits several years of production at once rather than repeating single-year awards. The contractor can secure material in bulk and keep the line and its workforce running to plan, which holds down cost per aircraft. Because it binds the government into future fiscal years, multiyear procurement in the United States requires congressional authorisation.

Why it matters

A read on Army aviation procurement and how allied (FMS) orders are bundled into large multi-year buys. Useful for aerospace/defense supply chains and readers tracking security cooperation.

FAQ

What data is this?
A single Department of Defense (DoD) federal procurement contract recorded in "USAspending," the U.S. open government-spending dataset. The recipient, awarding component, value, and scope are public. This site is not an official U.S. government website.
Is the amount final?
It is a cumulative figure as of collection. Large defense contracts accumulate modifications over many years, so amounts change. The latest figure is available at the source, USAspending.
What is a multi-year contract?
A procurement approach that bundles several years to lower unit cost. Here it bundles H-60 helicopters for the Army, Navy, and allied nations (FMS).

Sources (primary)

This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.

#Defense#Department of Defense#Army#Helicopters#FMS#Federal procurement
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