US Military awards EADS USA helicopter contract

[Armymatters]

http://www.al.com/newsflash/regional/index.ssf?/base/news-22/115171825765390.xml&storylist=alabamanews
You need to register (it's free), but I will give you a quick excerpt:

MONTGOMERY, Ala. (AP)  The European Aeronautic Defence and Space Co. will manage a U.S. military helicopter assembly operation potentially worth $3 billion out of Huntsville, the company announced Friday.

The contract to build up to 352 UH-145 helicopters for the military's light utility helicopter program was awarded to the EADS Friday. The helicopters will be assembled by the company's American Eurocopter facility in Columbus, Miss.

It's the company's first major military contract.

"When EADS North America was created four years ago, we committed to in-source U.S. jobs of high value, bring the best technology to America, and contribute to homeland security," said Ralph D. Crosby Jr., EADS North America's Chairman and chief executive, said in a statement. "The UH-145 will enable us to deliver once again on all three promises."

Production of the UH-145 - a customized version of Eurocopter's EC145 multi-mission helicopter, currently built in Germany - will be transferred to Columbus in a series of steps that begins with partial assembly, followed by full assembly and the subsequent U.S. manufacture of major subsystems.

American Eurocopter's expansion of the 92,000-sq.-ft. Columbus facility will begin almost immediately, with its size at least tripling to accommodate the UH-145 program activity. Employment will grow by approximately 250 persons, bringing it to more than 360. "This is a major step ahead for the Mississippi facility and fully in line with the worldwide industrial deployment strategy of Eurocopter, which consists in developing long-term industrial partnerships with major customer nations", said Fabrice Bregier.

EADS North America and Eurocopter have made a significant commitment to the UH-145 program, with the first helicopter already in assembly for delivery to the Army this November. In addition, components have been allocated for the manufacture of seven more UH-145s.

The picture of the helo:

The other competitors:
Bell 412 (CH-146 Griffon):

AgustaWestland AB139:

Lockheed/MD Helicopter 900:

The competition became pretty much between Bell and EADS, and EADS won on price (their product was about $1 million dollars cheaper). Sikorsky was partnered with EADS for the competition. The helos will be replacing Hueys and Kiowas stateside, and freeing up other helos (Chinooks, Blackhawks) for overseas duties.

Personally, it's becoming more and more clear that the US military is allowing real competition to occur for its contracts. In the short term, it insures that the US Military is getting the best equipment it can with its dollars, and in the long run this is good news as it will force US companies to be more innovative and efficient, as US defence corporations can no longer depend on the US Military constantly selecting their products, and paying for their R&D. They will have to come up with superior products to be more viable competitors.