Rivals team up for helicopter contract

Former rivals Lockheed Martin Corp. and Sikorsky Aircraft Corp. announced on Monday that they will team up for the competition for the contract to build the president's helicopter fleet.

Under an agreement signed by both, Sikorsky will serve as the prime contractor for the prestigious program and offer its H-92 medium-lift helicopter, while Lockheed Martin, the country's largest defense contractor, will serve as the major subsystems supplier. The two firms signed a memorandum of understanding to explore business opportunities involving other Sikorsky programs.

Sikorsky has built the president's helicopter fleet since the 1960s. But in 2005, a team led by Lockheed Martin and AgustaWestland, a European helicopter firm, won the contract for 28 aircraft that would ferry the president and dignitaries on short trips, such as from the White House to Camp David or Andrews Air Force Base. The Navy, which manages the program, terminated that contract last year after the program's costs soared from $6.1 billion to more than $13 billion.

The Navy then released a request for information on other alternatives. The Sikorsky-Lockheed team said it submitted a response to that request for information on Monday.