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Summary

The VH-71 program is intended to provide 23 new presidential helicopters to replace the current fleet of 19 aging presidential helicopters. As part of its proposed FY2010 Department of Defense (DOD) budget, the Administration is proposing to terminate the VH-71 program in response to substantial cost growth and schedule delays in the program. As a successor to the VH-71 program, the Administration is proposing to begin a new presidential helicopter program in FY2010 called the VXX Presidential Helicopter Program. The Administration's proposed FY2010 budget requests $85.2 million in Navy research and development funding for the VH-71 program. Of this total, $55.2 million is for terminating the VH-71 program and $30 million is for initial studies on the proposed successor VXX program. The issue for Congress is whether to approve the Administration's proposal to terminate the VH-71 program and initiate a successor VXX program, or pursue another course, such as continuing the VH-71 program in some restructured form. Congress's decision on the issue could affect DOD funding requirements, the schedule for replacing the 19 older helicopters, and the helicopter industrial base. This report will be updated as events warrant. FY2010 defense authorization bill: The House and Senate Armed Services Committees, in their markups of the FY2010 defense authorization bill (H.R. 2647/S. 1390), both recommended approving the Administration's FY2010 funding request for the VH-71 program. The House Armed Services Committee, in its report (H.Rept. 111-166 of June 18, 2009) on H.R. 2647, stated: "The committee supports a new acquisition plan which may incorporate more than a one platform solution to the needs of the President. The committee notes that [this CRS report] cites Navy estimates that a new acquisition program would cost $10.0 to $17.0 billion. Therefore, the committee strongly suggests that the Department of Defense consider continuing procurement of the current ‚increment 1' helicopter for use as the normal transport for the President, and study other alternatives for Presidential transport in other situations. The committee notes that this approach will leverage on the investment already made by the taxpayer in developing a helicopter that would meet all normal requirements of the President." FY2010 DOD appropriations bill: The House Appropriations Committee, in its report (H.Rept. 11-230 of July 24, 2009) on H.R. 3326, recommends $485.2 million--an increase of $400 million over the request--"to operationalize and incorporate the five [Increment I pilot production] VH-71 Presidential Helicopters into the current fleet.... " The report states: "The Navy has invested over $3,200,000,000 in the VHŒ71 Presidential helicopter program.... If these [five] aircraft are not made operational, the previously appropriated funds will have been wasted." The committee directs the Secretary of Defense to submit a report on progress toward making the five Increment I VHŒ71 Presidential helicopters operational. The Senate Appropriations Committee, in its report (S.Rept. 111-74 of September 10, 2009) on H.R. 3326, recommends $30 million--a reduction of $55.2 million from the request, with the reduction being for "Termination costs funded ahead of estimate."

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