BELFAST, Ireland. August 30\/breakingdefense\/ \u2014 In a major shake-up for a closely watched program, Airbus and Lockheed Martin have both decided to withdraw from the UK\u2019s New Medium Helicopter (NMH) procurement ahead of a deadline later today.<\/p>\n
The double pullout means Leonardo sits as the sole bidder for the \u00a31 billion ($1.3 billion) program, though the surprise withdrawals could also induce London to re-compete it.<\/p>\n
Airbus Helicopters UK said in a statement that its decision to withdraw was based on a review of requirements that left it \u201cunable to formulate a responsible bid that would in parallel satisfy the customer\u2019s requirements and provide adequate long-term returns to the business, while implying a reasonable prospect of winning.\u201d<\/p>\n
Airbus also questioned future industrial sustainment, judging that \u201cthe outcome of this procurement as it stands would not be able to deliver on current defence industrial strategy objectives, particularly its ambition for long-term new jobs, opportunities for the UK supply chain and sovereign capability.\u201d<\/p>\n
Similarly, Lockheed Martin UK said it decided \u201cnot to submit a response to the New Medium Helicopter ITN (Invitation to Negotiate) as we could not meet its minimum requirements in today\u2019s market conditions.\u201d<\/p>\n
As part of the ITN phase of the procurement, competitors were all required to submit bids by midnight local time today (7pm ET).<\/p>\n
Airbus had long committed to standing up a H175M super medium helicopter production line in Broughton Wales, if it secured a NMH production contract, while Lockheed had signaled that supply partner StandardAero, based in Gosport, England, would build Black Hawks if it was to prevail.<\/p>\n
There is no guarantee the contract award, slated for 2025 and reportedly based on a request for 23 to 32 new rotorcraft to replace Airbus Puma HC2 aircraft, goes ahead, however, as the UK\u2019s Strategic Defence Review has the power to cancel or reshape procurements. The review is set for release in \u201cthe first half\u201d of 2025.<\/p>\n
In the meantime, Leonardo said it is remaining engaged with the ITN process.<\/p>\n
\u201cFurther to the statement from the Minister for Defence Procurement that tender returns are due back on 30 August,\u00a0Leonardo<\/span>\u00a0has submitted a bid that is fully compliant with the UK MOD\u2019s requirements on budget, number of platforms and timeline,\u201d said Adam Clarke, managing director of\u00a0Leonardo<\/span>\u00a0Helicopters UK.\u00a0\u201c<\/b>Because we have an established UK onshore helicopter design and manufacturing capability and a related domestic supply chain, we have been able to meet the MOD\u2019s requirements, including for social value and UK industrial contribution.\u201d<\/p>\n