Feb. 14 (UPI) -- Sikorsky has been awarded a contract for the initial production of seven Lot III CH-53K King Stallion aircraft, a large heavy-lift cargo helicopter.
The deal, announced Tuesday by the Department of Defense, is valued at $126.5 million and is a modification to a previous award under the terms of a fixed-price-incentive-firm target, cost-plus-fixed-fee contract.
The modified agreement between Sikorsky and the U.S. Navy provides for "long lead items" in support of the low rate initial production of seven Lot III CH-53K aircraft.
"Long lead items" refers to the equipment, product or system identified at the earliest stage of a project to have a delivery time long enough to affect the overall lead time of the project.
Work on the contract will occur in Stratford, Conn., and is expected to be complete by January 2019, the Pentagon said.
The total amount of the contract will be obligated to Sikorsky at the time of award from Navy fiscal 2018 aircraft procurement funds, which will not expire at the end of the current fiscal year.
Marine officials are expected its first squadron of CH-53K heavy-lift helicopters to become fully operational by fiscal year 2019.