PAUL LEWIS / WASHINGTON DC
But programme office moved and management replaced
The US Marine Corps (USMC) Bell AH-1Z/UH-1Y helicopter modernisation programme has avoided cancellation despite a 68% hike in the upgrade cost. The US Department of Defense (DoD) has also confirmed that it is again reviewing the size of the planned purchase of Lockheed Martin/Boeing F-22 fighters, together with other high-cost programmes, as it begins budget planning for 2004-09.
The H-1 modernisation is among six programmes that Pete Aldridge, DoD undersecretary for acquisition, logistics and technology, has approved to continue despite them being in breach of the Nunn-McCurdy Act, whereby defence programmes risk cancellation if costs go more than 25% above original estimates. To escape cancellation, the programmes had to meet four criteria: that they are essential to national security, no cheaper alternative exists, proper management is in place and costs are under control.
"We did put in a new management system and a new systems engineering capability at Bell for this programme," says Aldridge, adding that the only alternatives - the Sikorsky UH-60 and Boeing AH-64 - are still more expensive.
The USMC H-1 programme office has been ordered to move from Patuxent River naval test centre to Bell's plant in Fort Worth, while the company's senior management has been replaced.
Also approved was the army's Boeing CH-47F/G remanufacture programme, the cost of which has jumped by 118% to $6.7 billion following an expansion of the scope of work, an increase to 339 in the number of upgraded machines and higher company overheads. Other programmes in breach of Nunn-McCrudy included the Space-Based Infrared Radar (SBIRS) High, which jumped by 67% to $6.7 billion, and the Guided Multiple Launch Rocket System, which went up 153% to $12.4 billion.
Aldridge confirms F-22 procurement numbers are under review, with some reports suggesting the order could be cut from the 339 the air force wants to 180. Other programmes are also being examined, including the Boeing/Sikorsky RAH-66 Comanche and Bell/Boeing V-22. The SBIRS Low programme is being restructured, while the Navy Area Missile Defence system will not be replaced.
Source: Flight International
