Navy Ends VH-71 Contract

(MoneyWatch)  Despite the best efforts of various good government groups, the local Congressional delegation and the companies involved the U.S. Navy on Monday ended the VH-71 New Presidential Transport helicopter. In a press release at www.defenselink.mil the Navy stated that it "terminate the VH-71 System Development and Demonstration (SDD) program contract. The announcement follows a Department of Defense (DoD) decision to cancel the existing presidential helicopter replacement program."

There had been an argument that by continuing some version of the program the U.S. government might be able to recoup some of the money already invested in the program and the nine aircraft already purchased. There was a possibility that be making the requirements less stressing that the Increment 1 aircraft could be used for some of the missions. With the termination for convenience of the contract that will end that proposal.

The Navy will have to pay Lockheed Martin some money to terminate the contract and this will be worked out over the next few months. There had already been a stop work order issued two weeks ago following the Defense Departments decision to not continue the program. Congress could force the hand of DoD by funding the program in the FY10 budget but without a contract to execute the money it will be difficult for this path to be executed.

For more on this see these other posts:

Gates Moves Quickly To End Boeing And Lockheed Programs
New York Fights for VH-71 Program