Cost Overruns Emphasize Need to Rebid Marine 1 Contract

Press Release

Congresswoman Rosa L. DeLauro (Conn.-3) issued the following statement about the Marine One Helicopter program after the Pentagon finally acknowledged significant cost overruns of 68 percent. According to news reports Pentagon Undersecretary for Acquisition John Young said the cost estimate for the VH-71 Presidential Helicopter program had grown to $7.5 billion from $4.5 billion and costs for the first phase of an interim model have grown to $3.7 billion from $2.3 billion, or 61 percent.

"Coupled with the thousands of requirement changes, this official acknowledgement of the significant cost over-runs for the VH-71 Presidential helicopter program demonstrates why the Defense Department needs to rebid this contract for what is in essence an entirely new helicopter.

"The decision to award this contract to Lockheed Martin and its British-Italian Partner, AgustaWestland-Finmeccanica, also demonstrates the negative implications of outsourcing our Defense capability. As it stands, the Pentagon's acquisition process is clearly broken. With the Marine One contract and possibly the award to replace the Air Force's aging KC-135 tanker contract announced last week, the Defense Department is not looking out for the opportunity to secure the best product at the best value for the taxpayer while securing US jobs and strengthening the economy.

"The American taxpayer should no longer be forced to shoulder the cost of Lockheed Martin's inexperience with building helicopters from the ground-up. This contract needs to be rebid."

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