An update on the H-1 program- Marine Corps to start looking at possible alternatives to the AH-1Z and UH-1Y:
Tuesday, June 27, 2006
Navy to review H-1, alternatives
By Jim McBride
jim.mcbride@amarillo.com
A top Pentagon official has decided to continue Bell Helicopter Textron's troubled H-1 Upgrades program through October, but he ordered the Navy to conduct a systematic program review that includes other alternatives.
The H-1 program's focus is to deliver light utility and attack helicopters for the Marine Corps. The H-1 program will replace the current fleet of AH-1W and UH-1N aircraft with 180 AH-1Zs and 100 UH-1Ys.
Kenneth Krieg, undersecretary of the Navy for acquisition, technology and logistics, issued a formal acquisition decision memorandum June 22. The full memorandum is considered classified, but the Pentagon on Monday released a short "information paper" on the H-1 program.
"This ADM requires the Navy to: continue with the program, but to return with an in-process review in October 2006; and develop a way forward to resolve various program issues, to include potential alternatives to the established program of record," the information paper.
U.S. Rep. Mac Thornberry said Monday he doesn't anticipate that the Pentagon will cancel the program but said top military procurement officials want it fixed.
"I don't think they are going to run out and choose another helicopter tomorrow, but I think they want Bell to know that we're going to keep a close eye on this," he said. "They have said every time they have looked at it that the H-1 is the right program. In a way, I think they are probably using this language as a threat to say "we really mean it, get this thing straightened out.' "
In April, Navy Contracting Officer Steven Bizier issued a "letter of concern" that questioned Bell's ability to meet contract specifications and deliver the program on schedule. Two independent program reviews concluded the program has "multiple areas of concern" that must be addressed.
"In order for Bell to execute their contractual responsibilities, fundamental changes in (Bell's) management practices and production tools/processes are required that will result in continuous and measurable improvements in on-time delivery of quality products," the memo said.
Delores M. Etter, assistant Navy secretary for research, development and acquisition, issued a memo the same day that cited concerns about Bell's fourth major restructuring of the H-1 program.
"Of major concern is the capability of BHTI to deliver H-1 aircraft in accordance with H-1 contract requirements, while maintaining consistent performance on other Navy programs such as the V-22," Etter wrote.
The same day the Navy issued its memo, the House Armed Services Committee named the H-1 upgrades program as one of 36 costly military programs. The H-1 program was among 25 major weapons programs whose cost growth was named "critical."
A program's cost growth is deemed "critical" if the weapons system exceeds 25 percent of current program baseline estimate or 50 percent of its original estimate.
A recent Senate Armed Services Committee report cited H-1 problems associated with "deficient cost controls and accounting procedures" in Bell's program management.
Navy and Bell officials overseeing the H-1 Program could not be reached for comment Monday.
Bell spokesman Mike Cox said earlier this month that Bell was working to tackle issues raised by the Navy and the Congress.
"We have assigned a significant amount of resources, people and otherwise, to the program. The program is progressing," he said. "We've got four aircraft in production right now. We have four aircraft that were delivered on time to begin the operational evaluation, and we are doing anything and everything we can do to make that program work."