BELFAST, Ireland. August 30/breakingdefense/ — In a major shake-up for a closely watched program, Airbus and Lockheed Martin have both decided to withdraw from the UK’s New Medium Helicopter (NMH) procurement ahead of a deadline later today.
The double pullout means Leonardo sits as the sole bidder for the £1 billion ($1.3 billion) program, though the surprise withdrawals could also induce London to re-compete it.
Airbus Helicopters UK said in a statement that its decision to withdraw was based on a review of requirements that left it “unable to formulate a responsible bid that would in parallel satisfy the customer’s requirements and provide adequate long-term returns to the business, while implying a reasonable prospect of winning.”
Airbus also questioned future industrial sustainment, judging that “the 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.”
Similarly, Lockheed Martin UK said it decided “not to submit a response to the New Medium Helicopter ITN (Invitation to Negotiate) as we could not meet its minimum requirements in today’s market conditions.”
As part of the ITN phase of the procurement, competitors were all required to submit bids by midnight local time today (7pm ET).
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.
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’s Strategic Defence Review has the power to cancel or reshape procurements. The review is set for release in “the first half” of 2025.
In the meantime, Leonardo said it is remaining engaged with the ITN process.
“Further to the statement from the Minister for Defence Procurement that tender returns are due back on 30 August, Leonardo has submitted a bid that is fully compliant with the UK MOD’s requirements on budget, number of platforms and timeline,” said Adam Clarke, managing director of Leonardo Helicopters UK. “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’s requirements, including for social value and UK industrial contribution.”
Clarke told Breaking Defense last month that Leonardo supports the move by London to deliver the SDR but stressed the company does not “believe” the work up of the document will lead to a NMH delay. He based such a perspective on factors including Puma’s length of operational service — dating back to the 1970s — and an initial plan by London to phase the aging aircraft out in 2023. Additionally, he noted that next generation helicopters are not set to enter service until around 2040, strengthening the case for London to select an in production platform.
“The New Medium Helicopter programme is an important initiative to acquire a modern medium-lift support helicopter,” said a UK MoD spokesperson. “Progress is continuing and tender returns from industry are due today. As this is an ongoing competition, it would be inappropriate to comment further.”
