KEY POINTS

The $815 million contract will run for 5 years.

Work will be completed in Texas and North Carolina.

The objective is to make parts for both helicopters interchangeable. 

The U.S. Navy has awarded an $815 million contract to Bell Helicopter to upgrade its fleet of helicopters including AH-1Z, the only helicopter in the U.S. arsenal equipped to fire the AIM-9J "Sidewinder" missile.

The Department of Defense announced the five-year contract on Tuesday, according to a report in Defense Blog. The contract is to upgrade or replace 35 items used in UH-1Y and AH-1Z helicopters along with inventory management warehousing and establishing supply and response metrics.

Bell, part of Textron Inc, will do 80% of the work at its Fort Worth, Texas location and the rest at the Cherry Point, North Carolina location. The contract that runs through 2026 does not have an option for extensions. The U.S. Navy and the U.S. Marine Corps both utilize the helicopters for various purposes.

UH-1Y
UH-1Y on maneuvers defense.gov

The upgrades will solve a logistical concern of the navy as the two airframes, which already share 85% parts, will have more common components. The goal is to make maintenance and replacing of parts an easy process. Both aircraft platforms are widely used and battle-tested by the U.S. armed forces. The military is pushing an unofficial goal of making weapons that can be used across multiple platforms - a common theme in recent defense contracts.

Despite their lack of being considered "stealth," these helicopters definitely have a role to fill. The navy is expected to take delivery of several F-35 fighters this year as it updates its aging fleet of F-18 Hornets. There are no known plans to develop new helicopters. So this is the next best thing.

A source with the U.S. Navy told International Business Times that the contract to upgrade aging helicopters complements the navy's current program of leasing aircraft only for commercial purposes. Though the navy is using civilian aircraft and pilots to carry out non-combat missions it has relied on its own helicopters for maritime and wartime missions.