What Sikorsky's Helicopter Contract Loss Could Mean For CT Economy

STRATFORD, CT — News that Sikorsky didn’t win the U.S. Army contract for the next-generation Black Hawk helicopter replacement came as a surprise to many and a disappointment across the state. However, the company still holds several important military contracts, and is a finalist for another large Army helicopter program.

The Army selected Texas-based Bell Textron’s V-280 Valor tilt rotor aircraft over Sikorsky’s Defiant-X model.

Sen. Chris Murphy and Rep. Rosa DeLauro spoke with Army leadership regarding the contract decision.

“Many unanswered questions remain about a fair process,” Murphy tweeted. “The Army needs to be transparent and provide taxpayers answers regarding cost and source selection.”

A Sikorsky spokesman said that the company is reviewing feedback from the Army and evaluating its next steps, according to the CT Mirror.

The news that Sikorsky lost the contract came as a surprise to many in the aerospace industry, said David Cadden, business professor emeritus at Quinnipiac University.

“It’s painful, it was potentially a $70 billion contract running decades,” Cadden said.

Gov. Ned Lamont said the news was disappointing for Connecticut.

“The state will continue to work closely with Lockheed Martin and Sikorsky to secure future opportunities for the people of Connecticut to make the most advanced aircraft in the skies,” Lamont said in a statement.

Sikorsky could appeal the Army’s decision, which would extend the time before the military branch received its future vertical airlift vehicles. Army representatives said that getting the next-generation vertical airlift vehicle is a high priority. Congress approved streamlining the review and acquisition process for the aircraft.

“They have to make a legal case that they were in effect discriminated against,” he said.

The Army doesn’t release the exact reasons it chose one company design over the other, Cadden said. Some of those reasons may come to light if Sikorsky decides to contest the decision.

One potential reason is that the Army is focused on the Indo-Pacific region, where air speed and maximum distance are at a premium, Cadden said. Bell Textron’s prototype has advantages in those areas.

Sikorsky and Bell Textron are facing off again for the Army’s future attack reconnaissance aircraft program contract.

“I feel very confident they will win the next big Army contract for armed reconnaissance,” Cadden said.

The Army is careful in how they distribute contracts, especially since there are only a handful of companies left that can supply its needs, Cadden said.

Decision will affect downstream suppliers

News of Sikorsky’s loss will affect more than just the Stratford region. More than 240 Connecticut companies are part suppliers for Sikorsky.

The news is unfortunate for Connecticut and certainly a big deal for those directly involved in the supply chain, but Connecticut manufacturers have worked to diversify their offerings over the years, said Jaime Scott, executive director of the ManufactureCT industry group.

“We are very strong in aerospace, but we are very strong in other things,” he said. “We aren’t just pigeonholed into one manufacturing sector.”

The future vertical airlift contract is one contract from one government, Scott said. Sikorsky still has several current contracts and is bidding for others.

State legislators approved up to $75 million in tax incentives for Sikorsky that were contingent on it winning the Black Hawk replacement contract and the upcoming reconnaissance contract. Sikorsky could still be eligible for part of the incentive if it wins the upcoming contract.

Many helicopter components are niche manufacturing items that are only made by a handful of companies, Cadden said. That may mean some Connecticut aerospace companies end up supplying components to Bell.

“Many of them will try and hustle as quickly as possible to become subcontractors for the Bell program,” he said.

There won’t be an immediate dropoff for the company. Sikorsky will continue to produce Black Hawk helicopters for years, Cadden said. In addition, about 30 other countries operate the helicopters, and many may decide they are better-served by upgraded Black Hawk models.

“The Black Hawk is a proven platform, and it’s gone through tremendous evolution, and it still has some evolutionary life in it,” Cadden said.

Overall, Scott predicted that the manufacturing industry would remain strong in Connecticut. The state has invested in a manufacturing innovation fund to help manufacturers grow, Scott said. Lamont’s administration created a chief manufacturing officer position in 2019 to help coordinate state and private-sector efforts.

“The future is bright when it comes to manufacturing in Connecticut,” Scott said.