Lockheed Martin‘s (NYSE: LMT) Sikorsky subsidiary has secured a potential $5.2 billion contract to build H-60 Black Hawk helicopters for the U.S. Army and foreign military sales customers.
The contract has an initial value of $3.8 billion and covers the production of 257 units of the UH-60M utility and HH-60M medical evacuation variants, Lockheed said Friday.
The deal also includes options for Sikorsky to manufacture an additional 103 helicopters and Lockheed noted the actual production quantities will be determined each year based on Congress’ budget allocations and the Defense Department‘s acquisition priorities.
Col. Billy Jackson, Army project manager for utility helicopters, said the contract will support the Army’s efforts to stabilize its manufacturing base, control long-term costs and achieve savings.
UH-60M and HH-60M are the latest Black Hawk variants and are designed to provide additional payload and range as well as optimized digital avionics, situational awareness and active vibration control, among others.
Sikorsky will perform deliveries from October 2017 through 2022.
