Sikorsky, a Lockheed Martin Corp (NYSE: LMT) company, filed a formal protest asking the U.S. Government Accountability Office (GAO) to review the U.S. Army’s decision on the Future Long-Range Assault Aircraft (FLRAA) contract.
Based on a thorough review of the information and feedback provided by the Army, Lockheed Martin Sikorsky is challenging the FLRAA decision.
The company says that the data and discussions indicate that the proposals were not consistently evaluated.
Also read: Lockheed Martin, Boeing Among US Defense Companies In Potential Talks For Military Gear For Vietnam.
The army decided to award Textron Inc (NYSE: TXT) the contract to build a new fleet of helicopters, writes Wall Street Journal, worth up to $80 billion.
The FLRAA competition pitted two aircraft – Textron’s Bell’s V-280 Valor Lockheed Martin-Boeing Co’s (NYSE: BA) Defiant X, which the company claimed was cheaper, prompting Lockheed to protest.
Both aircraft were designed to fit into the same footprint as a Black Hawk.
GAO can recommend reopening competitions or amending existing contracts if it finds in favor of protests. The office has 100 days to make a final decision.
Price Action: LMT shares closed lower by 0.47% at $483.22 on Wednesday.
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Source: https://finance.yahoo.com/news/lockheed-martin-challenges-us-armys-105345200.html