Home Aviation Lockheed Martin seeks $212M from Pentagon for Sikorsky acquisition

Lockheed Martin seeks $212M from Pentagon for Sikorsky acquisition

SHARE

Lockheed Martin Corp. has requested $212 million from the Department of Defense to help cover restructuring costs related to its $9 billion acquisition of Sikorsky Aircraft from United Technologies Corp. in 2015.

sikorsky lockheed martinAccording to a Bloomberg report, Lockheed said that its purchase of Stratford-based Sikorsky will save taxpayers $8 in efficiencies on every one dollar spent. Although Defense Department regulations allow for reimbursing restructuring costs if projected savings exceed $2 on every $1 spent, the Defense Contract Management Agency is questioning the request, arguing that Lockheed’s “rationale for proposed savings does not appear to meet” the required “definition of external restructuring activities.”

In an internal memo obtained by Bloomberg, the agency added that Sikorsky “has not been able to demonstrate labor savings at the contract or program level” and “there are not many common suppliers/vendors between” Sikorsky and other parts of Lockheed’s Rotary and Mission Systems.

Lockheed spokesman William Phelps said the company is continuing to “have productive meetings with the government,” noting that the savings being touted included “efforts such as combining our information technology infrastructure and consolidating our human resources and contracting policies and processes.”

Print Friendly, PDF & Email

LEAVE A REPLY

Please enter your comment!
Please enter your name here