US Naval Air systems Command (NAVAIR), May 15, 2009 - PATUXENT RIVER NAVAL AIR STATION, Md. -- A Stop Work Order was issued today to Lockheed Martin Systems Integration - Owego, N.Y. for Increment 1 and Increment 2 of the VH-71 contract.
The Naval Air Systems Command Contracting Office directed stop work on all activities associated with VH-71 Systems Design and Demonstration requirements, with the exception of security requirements and protection of government property, information, and equipment during the orderly transition of these functions to the Government.
This Stop Work Order immediately allows the government to reduce program expenditures and take necessary steps to secure government property, preserve government equities and retain options for future decisions.
This contract action was put in place following cancellation direction by Dr. Ashton Carter, Under Secretary of Defense for Acquisition, Technology & Logistics, in a May 15 Acquisition Decision Memorandum. The decision resulted from cost growth in the VH-71 program that breached critical Nunn-McCurdy thresholds and from a comprehensive program review that occurred during development of the President's FY10 budget submission.
As directed by Dr. Carter, the Navy will begin to develop options for a Presidential Helicopter Replacement program and present these to the Office of the Under Secretary of Defense for Acquisition, Technology and Logistics within 30 days.
The President's FY10 budget includes money for government efforts for service life extensions for the current Presidential Helicopter fleet and to develop options for a Presidential Helicopter Replacement program. The budget also funds any necessary VH-71 program termination costs.
The Navy continues to review a range of options regarding for already-built VH-71 aircraft to include sales to interested parties, contractor buy-back or potential applications to other DoD needs.