The Cancellation Of The U.S. ARH-70 Helicopter Program

ARH-70 Helicopter (Image from Global Security)

Killing The Wounded -- Strategy Page

October 19, 2008: In a rare demonstration of decisiveness regarding failing procurement projects, the United States Department of Defense has cancelled the ARH-70 helicopter. The cancellation was justified by the 1981 Nunn-McCurdy law, which mandates a project be cancelled if it goes more than 25 percent over budget, and a compelling case cannot be made that the system is critical for national security. The ARH-70 is 70 percent over budget, there is little chance of the budget problems being fixed, and the army has lots of helicopters that can do what the ARH-70 was designed to do.

This came after two years of delays, and huge increases in costs. This cancellation is nothing new, as the army has cancelled several too-expensive projects in the last decade. This came despite manufacturers mustering their Congressional and military allies to oppose such moves. The army told the ARH-70 manufacturer to come up with a convincing rescue plan. No such plan was produced, and now another helicopter manufacturer will get a shot at the contract.

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