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MD Helicopters is Approved as GFRC Facility for Production of All Military-Use Aircraft

New guidelines expected to improve efficiency and streamline US-Army certifications

Mesa, Ariz., April 08, 2019

MD Helicopters, Inc. (MDHI) announces that all military aircraft manufactured as part of the Company’s $1.4 Billion IDIQ Contract are now produced under the U.S. Army-mandated Ground and Flight Risk Clause (GFRC). Implemented pursuant to a February 5, 2019, Contract Modification, the DFAR 25.228-370 GFRC regulations went in to effect at MDHI’s Mesa, Arizona facility on April 5, 2019. GFRC distributes risk and limits contractor liability for loss or damage to any aircraft under the contractor’s control while performing a US Government contract.

“GFRC will streamline our development, certification, and production efforts,” said Lynn Tilton, Chief Executive Officer for MD Helicopters, Inc. “While this new level of USG oversight requires investment in both human and capital resources, the enhanced growth of our military sales assures that the effort to implement GFRC-compliant processes will be time and money well spent.”

Since the February 5, 2019 contract modification triggering GFRC, MDHI has actively engaged to identify each aspect of the new GFRC requirements, and the deltas to existing FAA approved Production and Repair Station Quality Systems. While fostering a strong relationship and open communications with the assigned Defense Contract Management Agency (“DCMA”) representatives and our MASPO Program Office counterparts, MDHI has established the required written Ground, Flight and Safety Operations Procedures addressing all applicable GFRC requirements.

“MD Helicopters’ implementation of GFRC regulations strengthens our position as the preferred choice for light armed scout attack helicopter solutions for US and Partner Nation forces,” Tilton continues. “I am proud of my team’s efforts to effectively implement and execute the necessary enhancements to our existing FAA Flight Operation Procedures and Ground Operation Procedures, in record time, while continuing to lean forward in research and development efforts, and executing under the tight productions schedules for three current programs on contract under our $1.4 billion IDIQ.”

Visitors to the upcoming Army Aviation Mission Solutions Summit (formerly AAAA) at the Gaylord Opryland Hotel & Convention Center, can learn more about MDHI’s GFRC operations by visiting booth #3011, April 14 -16, 2019.