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White House Wants VH-71 Increment 2, But Redesign Will Lead To Cost Increase

DDN

Tuesday, March 18th, 2008

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The White House has decided to move forward on Increment 2 of the next presidential helicopter, VH-71, citing that the Lockheed Martin [LMT] aircraft provides the capability requested by the government. Meanwhile, redesign work on Increment 2 will raise the program's cost by $3 billion, and increase the total VH-71 program cost by roughly $5 billion, according to John Young, the Pentagon's acquisition chief. "We do now expect the total program cost to increase from $6.8 billion under the current…

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