Sikorsky in talks with U.S. Army about Black Hawk maintenance

(Adds comments by Sikorsky executive, details on talks)

WASHINGTON, March 2 (Reuters) - United Technologies Corp's Sikorsky Aircraft said on Monday it was in discussions with the U.S. Army about servicing its UH-60 Black Hawk helicopters under a performance-based logistics agreement, and could reach a contract deal in 2016.

Sikorsky said it was still working out details, but any deal with the Army would likely include more government-handed depot maintenance than the $2 billion deal that Sikorsky and Lockheed Martin Corp were awarded on Friday by the U.S. Navy for servicing its MH-60 Sea Hawk helicopters.

"We're very close at this point to getting something in place on the Black Hawk," George Mitchell, vice president of aircraft and support for Sikorsky Aircraft's Defense Systems and Services division, told reporters on a conference call.

Mitchell said the talks with the Army were still in the early stages, but he was upbeat about prospects for a deal given the expected cost savings and increased reliability.

He said the talks were under way between Sikorsky and the Army, but depending on the scope of a possible deal, it could be handled by the Sikorsky-Lockheed joint venture that is conducting the maintenance work for the Navy.

Industry officials say an agreement for servicing the Black Hawks would be a boon for Sikorsky given the larger number of such helicopters operated by the Army.

Rod Skotty, president of the Sikorsky-Lockheed venture, said the Navy deal announced on Friday was the third performance-based logistics contract signed for the Sea Hawks since 2004. He said it increased the number of helicopters to be serviced from 330 to 530, and included more than 1,700 parts, up from 1,266 under the previous contract.

(Reporting by Andrea Shalal; editing by Chris Reese and Matthew Lewis)

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