Textron contract could face termination, re-bid

WASHINGTON, D.C. – A Pentagon review of the $6.27 billion Army Armed Reconnaissance Helicopter program awarded to Textron Inc. may stretch into October as officials consider options including a re-bid or termination, the military’s top weapons buyer said.
Bloomberg News reported that the review, which began in July after the Army told civilian Defense Department officials that costs for each helicopter will be 43 percent more than planned, was initially slated for completion by September. Undersecretary for Acquisition John Young said that deadline may not be met.
The Defense Department is reviewing the contract to determine whether it is vital to national security and should proceed. Textron won the contract about three years ago.
“Some sort of re-compete is for sure an option. If we can’t make this decision in September we are not going to make it in September,” Young said. “Everything’s on the table. Termination is on the table.”
Pentagon teams have visited the Fort Worth, Texas, plant where the aircraft is being manufactured, said Mike Cox, a spokesman for Textron’s Bell Helicopter unit. Textron has provided information addressing costs and detailing what management is doing to control them, Cox said.
“We look forward to completing the program as rapidly as possible,” Cox said. &#8226