U.S. Army says may end Textron helicopter program
Written on July 10, 2008
The U.S. Army said on Wednesday it might cancel a $6.2 billion Textron Inc armed helicopter program after finding that projected costs had soared more than 40 percent above initial estimates.
One possibility is that the Armed Reconnaissance Helicopter, or ARH, being built by Textron’s Bell Helicopter unit, could be “terminated” after a mandatory review, but the Army has a critical need for its capabilities, said Paul Boyce, an Army spokesman.
“We’ve been working closely with Bell-Textron on this,” he told reporters in announcing the review triggered by cost growth of more than 25 percent compared with a base line.
Boeing Co is a potential competitor if the contract is canceled or opened for rebidding.
Official notification of the cost-growth cap breach went to the U.S fast payday loans. Congress Tuesday night, Army officials said.
Bell Textron, responding to the army announcement, said it remained confident it could produce the ARH at “an affordable price.”
“Bell Helicopter and its team of suppliers are ready to begin low-rate initial production of the ARH, and we are dedicated to producing a world-class weapons system for the Army’s warfighters,” said Thomas Dolney, a company spokesman.
The program is designed to supply 512 helicopters over the next 10 years to replace about 375 Bell OH-58D Kiowa Warrior helicopters, the army’s most heavily used fleet in Iraq and Afghanistan.
Filed in: money.