European Helicopter contract for U.S Marine One
From Inside the Navy, Vol. 18, No. 4, January 31, 2005
"The US-101, proposed by an international team led by Lockheed Martin, has been selected by the Navy to become the next-generation Marine One helicopter that will fly U.S. presidents for years to come, Navy acquisition executive John Young announced at press time (Jan. 28)"
"Lockheed's team has been awarded a $1.7 billion, cost plus award fee contract to launch the VXX program's system development and demonstration phase. The total value of the program, intended to produce 23 aircraft, is estimated to be $6.1 billion, naval officials told reporters Friday.
"This decision truly reflects the best value and capability for the American taxpayer who is funding it, the Marines who will operate it and the future presidents who will fly in it," Young said in a prepared statement."
Wow. This "
value" puts the price of each helicopter at $265 million. That happens to be the list price for a new Airbus 380. Thats $30 million(!) more per aircraft than a KC-767A Tanker which was slandered as the biggest boondoggle in US military aquisition history by Senator McCain. (ref: program cost of $23 billion for 100 KC-767's). You could also purchase more than
two and a half F-22 Raptors for the cost of one new presidential helicopter. Thats kind of pricey for a helicopter that can be purchased for $27m apiece on the civilian market (EH-101).
Cost plus? That means "bill us, take your profits, and charge us for any cost overuns." This is a European helicopter designed by AgustaWestland, who will share in the profits with Lockheed. Two sets of profits and nearly guaranteed cost overruns? Where is the outrage from Senator McCain? Where are the calls for scandal and corruption?
MiG