VH-71 Suffers Cost Breach and Connecticut is Lobbying
Filed under: Business Line, Companies, Congress, Connecticut, Contract Awards, Department of Defense, Events, Federal Budget Process, Lockheed Martin, Military Aviation, Proposal, Restructuring, Services, Sikorsky, States, U.S. Navy, UTC, commercial aviation, development program, production program
The Connecticut Post reports that the VH-71 new Presidential helicopter program suffered a “Nunn-McCurdy” cost breach. There are two levels of this breach and the higher one, a 25% increase, requires the Secretary of Defense to certify the program is still required for the U.S. national defense. The fine Senators and Congressmen from Connecticut have pricked up their ears at this development and want to meet with DoD to discuss canceling the program and giving it to Sikorsky. The contract with Lockheed Martin has seen considerable cost growth due to requirements creep since the contract was awarded. This has required wholesale changes to the EH-101 platform selected. Hence the great increase in cost and schedule for the program. Of course the DoD will have to weigh the savings if another vendor proposes something cheaper with the time required to restart the program. With a new administration it is conceivable that the contract could be canceled and started over, like ARH, but it probably won’t happen.
ARH’s first try is cancelled
Filed under: Bell, Congress, Department of Defense, Federal Budget Process, Military Aviation, Restructuring, U.S. Army, commercial aviation, development program, production program
After the close of the stock market this evening the Department of Defense announced that they are canceling the Armed Reconnaissance Helicopter (ARH) contract with Bell. The ARH-70 was to be a replacement for the OH-58D Kiowa Warrior aircraft that has been in service for over twenty years. ARH was one of the programs created out of the end of the RAH-66 Comanche program. Bell had run into cost and schedule growth issues with the program, much of it probably due to an overly optimistic US Army estimate on the program. The program had suffered a Nunn-McCurdy cost breach and that required DoD to either certify to Congress on the necessity of the program, or cancel it. Now the Army will start over.
See The Wall Street Journal for more.
ARH in jeopardy
Filed under: Bell, Congress, Department of Defense, Federal Budget Process, Military Aviation, Restructuring, U.S. Army, development program
The soaring costs of the ARH program have caused a Nunn-McCurdy Cost Breach. See a story here. The 40% increase in unit cost has caused the Army and DoD to rethink, again, proceeding with the contract. Nunn-McCurdy cost breaches were established in the 80’s as part of the overall reform of Congressional monitoring of programs. Read more



