NAVAIR wrote Bell a letter stating "Two independent reviews concluded that there are still multiple areas of concern that must be addressed in the near term. Of major concern is whether [Bell Helicopter Textron] can perform to the contract and deliver the H-1 on schedule, and whether the program can go forward in accordance with the Bell Price Commitment letter of January 2006." Consequently, an OSD review was held to discuss the management and technical performance at Bell. The Defense Acquisition Board (DAB) did not reach a decision Wednesday after holding a process review of Bell Helicopter Textron's H-1 upgrade program, which is planned to deliver 180 AH-1Z Cobra attack helicopters and 100 UH-1Y Huey utility helicopters with common rotor/transmission and avionics. The review gave rise to speculation that the program might be in jeopardy, but the Marine Corps is committed to the program and Bell is putting a maximum effort into addressing issues at the Texas plant.
The formal review was requested after the Navy expressed concern in April over Bell's ability to "adequately perform the H-1 upgrades program" and called into question the company's "capability and capacity to successfully perform existing and future government contracts." The program has been troubled on some levels, but got go ahead to begin OPEVAL, which bodes well.
H-1 Program OPEVAL Begins
Four Aircraft Fly to China Lake Naval Air Station, California
Fort Worth, Texas - May, 10 2006 – Bell Helicopter, a Textron company (NYSE: TXT) announced at 8:00 AM Tuesday, May 9th, four H-1 aircraft, two AH-1Zs and two UH-1Ys, headed west from Patuxent River Naval Air Station, Maryland to begin the Program's long awaited Operations Evaluation (OPEVAL) period.
"This is a significant milestone in the H-1 Upgrades program and brings us that much closer to fielding this critical capability to the Fleet Marines who are anxiously awaiting these tremendously capable aircraft," said Col. Keith Birkholz, H-1 program manager at NAVAIR. "This milestone also is a tremendous testimony to the Government-Bell team that has labored so hard for the last few years to achieve it."
"This is a great day for the U.S. Marines and the H-1 Program" Bell Helicopter Chief Executive Officer Michael Redenbaugh. "Over the next six months these aircraft will demonstrate and validate the significant improvements that have been made to make them more valuable to the Marines. These aircraft are among the worlds most technologically advanced and posses capabilities that the Marines need now but also in the future." he continued.
The aircraft will fly to China Lake Naval Air Station in California where they will spend the next six months undergoing numerous tests and evaluations to determine the H-1 aircraft operational suitability. Start of OPEVAL represents the last exit criteria before a Defense Acquisition Board (DAB) is to decide on Low Rate Initial Production (LRIP) phase III.
The H-1 Upgrade Program will replace the current fleet of AH-1W and high time UH-1N aircraft by providing 180 AH-1Z and 100 UH-1Y new, zero-time, aircraft starting in 2006. Key to the program is the fact that the two different models of aircraft have 84% commonality of parts. Initial Operational Capability (IOC) is scheduled for 2008.
