Manufacturer stresses operating costs of Explorer in Light Utility Helicopter bid
MD Helicopter (MDHI) has made the issue of operating cost a critical new theme of marketing efforts to support its bid in a four-way competition for a US Army contract seeking 322 Light Utility Helicopters (LUH). Programme acquisition costs, meanwhile, have publicly emerged as a dynamic issue for the LUH programme overall, with top army aviation acquisition officials acknowledging that current budget plans no longer appear sufficient.
The MD Explorer, which features the unique no-tail rotor (NOTAR) anti-torque technology, may not be cheaper to buy than some of its rivals, but MDHI argues that it will cost less to operate over the life of the programme. Citing a late 2005 issue of the The Aircraft Cost Evaluator by Conklin & de Decker, the company says the Explorer can be operated for 34% less than its nearest competitor for the LUH contract. MDHI is vying for the requirement against the AgustaWestland/L-3 Communications UH139, Bell 412 and the Eurocopter/Sikorsky UH-145.
The army estimated in 2003 that it would cost $1.1 billion to buy the 322-aircraft LUH fleet, resulting in an average cost per aircraft of $3.4 million. However, none of the aircraft proposed for the competition is currently sold for less than $4 million and service officials say they now plan to adjust the programme’s budget. The army will either be required to reduce the number of helicopters it plans to buy or increase the amount of funds in the LUH account, says Paul Begosian, programme executive officer for army aviation.
Meanwhile, MDHI says that concerns about cost drove it out of a teaming agreement with Lockheed Martin last August. Lockheed’s involvement as a systems integrator would have elevated the cost of the Explorer to a non-competitive price, say company executives. In response, Lockheed says the partnership was aborted not because of cost concerns, but because MDHI’s proposal “included a lot of conditions that were incompatible” with the army’s requirements.
STEPHEN TRIMBLE / WASHINGTON DC
Source: Flight International
