U.S. Navy renews Helicopter Logistics Program with $1.4 billion follow-on contract

WOODBRIDGE, Va., 21 Jan. 2011. The Maritime Helicopter Support Co., a joint venture of Lockheed Martin [NYSE: LMT] and Sikorsky Aircraft Corp., won a $1.4 billion firm fixed price contract from the U.S. Navy to continue providing performance-based logistics support for more than 490 in-service H-60 SEAHAWK helicopters.

Posted by John McHale

WOODBRIDGE, Va., 21 Jan. 2011. The Maritime Helicopter Support Co., a joint venture of Lockheed Martin [NYSE: LMT] and Sikorsky Aircraft Corp., won a $1.4 billion firm fixed price contract from the U.S. Navy to continue providing performance-based logistics support for more than 490 in-service H-60 Seahawk helicopters.

The contract requires the Maritime Helicopter Support Company (MHSCo) to manage the supply chain and provide as-needed repair of more than 1,250 aircraft components and subsystems for the Navy's H-60 Tip-to-Tail performance-based logistics (PBL) program. Supported aircraft include: Navy SH-60B, SH-60F, HH-60H, MH-60R, and MH-60S helicopters; Coast Guard HH-60J helicopters; and other H-60 aircraft operated by customers of the Navy's Foreign Military Sales program.

Sikorsky's aftermarket support company Sikorsky Aerospace Services, in Shelton, Conn., and Lockheed Martin Mission Systems and Sensors in Owego, N..Y, will fulfill the contract through January 31, 2015. The H-60 Tip-to-Tail PBL program will enable the Navy/MHSCo team to continue the accomplishments achieved under the initial five-year contract awarded in January 2004. Today, the program is among the largest of its kind for a fully functional aircraft fleet.

"H-60 Tip-to-Tail is recognized as one of the U.S. Navy's most successful PBL programs," says Rear Adml. Raymond Berube, commander, Naval Inventory Control Point in Philadelphia, which procures, manages, and supplies spare parts for naval aircraft, submarines, and ships worldwide. "By meeting the Navy's rigorous on-time parts delivery requirements, MHSCo has set a high standard of support that has had a very positive effect on H-60 flight operations."

Performance-based logistics programs incentivize the contractor to meet measurable performance goals as the criteria for payment. In 2004, by applying commercial best practices across the supply chain, MHSCo quickly boosted delivery of replacement parts and assemblies to the fleet by 25 percent.

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