Leonardo emerges as sole bidder as UK government faces difficult procurement decision
The UK’s New Medium Helicopter (NMH) procurement program suffered a significant setback with the surprise withdrawal of Airbus Helicopters and Sikorsky from the competition. As a result, Leonardo Helicopters is now the only remaining bidder for the £1 billion ($1.3 billion) program, which aims to replace the Royal Air Force’s (RAF) aging Puma HC2 transport helicopters.
Another goal of the program is to homogenize the fleet of medium helicopters in use by the UK Armed Forces, as it seeks not only to replace the Aerospatiale SA 330E Puma HC2s in Royal Air Force service, but also the Dauphin, Bell 212 and Bell 412 in British Army service, with a single platform. The British Ministry of Defense is seeking to acquire a minimum of 23 helicopters, but in the long term this number could grow to as many as 44 units.
Requirements that leave no room for profit
Airbus Helicopters decided to withdraw its offer for the H175M based on the review of the detailed NMH requirements as the reason for its withdrawal. The company stated that it could not formulate a responsible offer that met the customer’s requirements, while at the same time providing adequate long-term profitability for the company.
Similarly, Lockheed Martin UK’s decision to withdraw was attributed to its inability to meet the minimum requirements of the NMH tender under current market conditions. The company had previously promised to assemble Black Hawk helicopters in the UK through its partner StandardAero.
Continue or cancel the program?
While Leonardo has submitted a bid that meets the UK Ministry of Defense’s requirements in terms of budget, number of platforms and timeline, the withdrawal of the other competitors could lead the UK government to reconsider the procurement. The ongoing Strategic Defense Review could result in the cancellation or restructuring of the NMH program due to budget constraints.
If the UK government decides to proceed with the procurement, Leonardo Helicopters will be the only option to provide the replacement helicopters. However, the ongoing Strategic Defense Review and the uncertain budget environment may lead to a delay or cancellation of the NMH program.
