GAO Denies MD Helicopter, AgustaWestland, LUH Protests

Defense Daily, Oct 26, 2006

The Government Accountability Office Monday denied protests by MD Helicopters and Agusta Westland North America over the Army's awarding of the potential $2 billion Light Utility Helicopter (LUH) contract awarded to EADS North America.

Therefore, the Utility Helicopter project office will execute the contract signed with EADS, the Army said in a statement Oct. 24.

EADS North America deferred all comment to the U.S. Army.

However, the legal process continues, as the protestors can ask GAO to reconsider its decision, or pursue action in federal court. Attorneys are examining the Oct. 23 decision issued under a protective order so it won't be made public until any proprietary or security information is removed--a process that could take some weeks.

On June 30 the Army issued the award to an EADS North America-led team to build 322 LUH helicopters based on the commercial EC145 (Defense Daily, July 5).

The contract initially called for delivery of two UH-72A helicopters in November. The Army wants a commercial-off-the-shelf helicopter for domestic missions such as homeland security, civil search and rescue, medical evacuation and counter-drug support.

The first LUHs will be produced in Germany as the company accelerates work at the American Eurocopter facility created in 2004 in Columbus, Miss. (Defense Daily, July 7).

The EADS team includes Sikorsky [UTX] and WestWind Technologies.

AgustaWestland North America was teamed with L-3 Communications [LLL]. Bell Helicopter Textron [TXT] also submitted an entry in the competition.

[Copyright 2006 Access Intelligence, LLC. All rights reserved.]

TICKER(S): Sikorsky [UTX]: L-3 Communications [LLL]: Bell Helicopter Textron [TXT]: