Boeing To Try Helo Bid

Boeing says it will buy the rights to build a midsize helicopter from AgustaWestland, a European company.

AgustaWestland had previously teamed with Lockheed Martin for the project, called the VH-71, which the Pentagon canceled in June 2009, citing cost overruns.

Government auditors have said that most of the overruns on the earlier contract came not from the basic helicopter but from the modifications that the Bush administration required to make the craft more secure from terrorist attacks.

Those requirements called for protection against chemical and biological attacks as well as the electromagnetic effects of a nuclear blast.

The Navy said it is reducing the maximum distance that the helicopter needs to travel without refueling to 275 nautical miles, from 315. And there are signs that the Pentagon might ease some of the arduous requirements that caused the projected cost to double, to $13 billion for just 28 helicopters, most if not all of which are for the exclusive use of the White House.

Why does the President need 28 helicopters since he uses them to fly to nearby Andrews AFB where Air Force One is based, or to Camp David? No one has answered that question.

Pentagon officials, who were seeking preliminary information from potential bidders last month, now hope to build a fleet of 23 to 28 helicopters at a cost of $6 billion to $10 billion.

Boeing’s involvement is likely to help heighten the competition and could help keep down the cost. The bidding process will probably start next year.

Under the licensing deal, Boeing will offer its version of AgustaWestland’s AW101, which is similar to the helicopter that won the earlier contest.

One industry source said no one should expect to see the new helicopters alighting on the White House lawn anytime soon. Given the embarrassment over how poorly it managed the previous contract, the Navy, which is in charge because the Marines fly the helicopters, is taking its time in putting together the new competition.

And President Obama has said he can make do with the older helicopters, which Sikorsky built in the 1970s and 1980s.

So industry officials say they would be surprised if a contract was awarded before the presidential election in late 2012. The Navy does not expect to field any of the new craft before 2017 to 2023.