In a significant shift for the UK’s New Medium Helicopter (NMH) procurement program, both Airbus and Lockheed Martin have announced their withdrawal ahead of today’s submission deadline, leaving Leonardo as the sole bidder for the £1 billion ($1.3 billion) project. This unexpected development could prompt the UK government to reconsider the procurement process altogether.
Airbus Helicopters UK explained its decision in a statement, citing a review of the program’s requirements that made it “unable to formulate a responsible bid that would satisfy the customer’s requirements and provide adequate long-term returns to the business.” The company raised concerns about future industrial sustainment, stating that the current procurement framework would not fulfill the UK’s defense industrial strategy objectives, particularly those aimed at creating long-term jobs, opportunities for the UK supply chain, and maintaining sovereign capabilities.
Lockheed Martin UK echoed similar sentiments, stating that it opted not to respond to the New Medium Helicopter Invitation to Negotiate (ITN) because it could “not meet its minimum requirements in today’s market conditions.”
As part of the ITN phase of the procurement, bidders were required to submit their proposals by midnight local time today (7 PM ET).
Airbus had previously committed to establishing a production line for the H175M super medium helicopter in Broughton, Wales, if awarded the NMH contract. Lockheed Martin had also indicated that its supply partner, StandardAero, based in Gosport, England, would handle the assembly of Black Hawk helicopters if they were to win the bid.
However, there is no assurance that the contract, which is expected to be awarded in 2025 for the acquisition of 23 to 32 new rotorcraft to replace the Airbus Puma HC2 aircraft, will proceed as planned. The UK’s Strategic Defence Review (SDR), set for release in the first half of 2025, could potentially cancel or reshape current procurement efforts.
Meanwhile, Leonardo remains actively engaged in the ITN process. Adam Clarke, managing director of Leonardo Helicopters UK, stated: “In light of the Minister for Defence Procurement’s announcement that tender returns are due back on 30 August, Leonardo has submitted a bid that fully complies with the UK MOD’s requirements regarding budget, number of platforms, and timeline.” He emphasized that Leonardo’s established UK-based helicopter design and manufacturing capability enables the company to meet the MOD’s requirements, including expectations for social value and domestic industrial contribution.
Clarke previously informed Breaking Defense that he does not anticipate delays to the NMH due to the SDR, considering factors such as the Puma’s extensive operational history dating back to the 1970s, and an initial plan to phase out the aging aircraft by 2023. He also noted that new-generation helicopters are not set to enter service until approximately 2040, underscoring the urgency for the UK government to select an already-in-production platform.
A spokesperson for the UK Ministry of Defence remarked, “The New Medium Helicopter program is an important initiative to acquire a modern medium-lift support helicopter. Progress is continuing and tender returns from industry are due today. As this is an ongoing competition, it would be inappropriate to comment further.”
