Kiowa Replacement Years Behind Schedule, Millions Over Budget

Yet another trouble-plagued Pentagon procurement deal has apparently seen its final days. The Defense Department notified Congress and the contractor, Bell Helicopter, Thursday that it will not certify the US Army Armed Reconnaissance Helicopter (ARH) program for continuation.

John Young, undersecretary of defense for acquisition, technology and logistics, in consultation with senior Defense and Army officials, has determined that the fundamental cost and schedule basis underlying award of the ARH contract is no longer valid.

Intended to be a replacement for the OH-58 Kiowa, the ARH contract was awarded to Bell in July 2005, for an expected development cost of $359 million and a procurement average unit cost of $8.56 million. Those goals seemed quite feasible at the time, since the ARH would be largely based off Bell's existing 407 commercial helicopter.

If only wishing made it so. Plagued by delays, cost overruns and development glitches -- including the February 2007 crash of an ARH-70 prototype -- a Congressional committee recommended last year the DoD scrap the entire program. Currently, DoD estimates development of the ARH would cost $942 million, and the procurement average unit cost would skyrocket to $14.48 million.

Perhaps worst of all, delivery of ARH to the Army was originally scheduled to take place by 2009; the current projection is for 2013.

"Rather than continue this program, I have decided that the best course of action is to provide the Army with an opportunity to define a coherent, disciplined Kiowa Warrior helicopter replacement program, and to obtain more rigorous contract terms for its development," Young said.

Secretary of the Army Pete Geren stated, "The cost and schedule that were the focus of the decision to award the contract to Bell Helicopter are no longer valid. We have a duty to the Army and the taxpayer to move ahead with an alternative course of action to meet this critical capability for our Soldiers at the best price and as soon as possible."

At this writing, Bell has not yet responded to the Pentagon's decision.

Scrapping of the ARH deal comes just over one month after the DoD announced the termination of the contentious KC-X aerial tanker competition for the US Air Force, forcing yet another round of competition for the contract. The Air Force has also hinted it may defer choosing a winner in the latest round of bidding for the CSAR-X helicopter contract, in order to avoid a third round of protests.

Those programs will live to see another day, however... whereas it appears the last nail has been hammered into place for the ARH.

FMI: www.defenselink.mil, www.bellhelicopter.com