HARTFORD (dpa-AFX) - United Technologies Corp.(UTX) announced that its subsidiary, Sikorsky Aircraft Corp., signed an $8.5 billion contract with the U.S. Army and Navy to buy a baseline quantity of 653 BLACK HAWK and SEAHAWK helicopters through December 2017.
The company said that the five-year contract will yield significant savings for the U.S. Government compared with purchasing the same quantity across five separate annual agreements.
Also, the five-year agreement allows the Army and Navy to order as many as 263 more aircraft within the same contractual terms. If exercised, the optional purchases could push the contract value as high as $11.7 billion, United Technologies noted.
BLACK HAWK and SEAHAWK aircraft deliveries under the new contract will begin this month, the company stated.
Copyright RTT News/dpa-AFX