Anyone seen my $13 BILLION helicopter?

Ever wonder how we have trillion dollar deficits?  Here’s a good example.  This was the original request:

The Presidential Helicopter is responsible for the safe, reliable transport of the President in administrative and contingency environments, worldwide. The VH-71 is being developed to replace the existing VH-3D and VH-60N helicopters, which currently serve as “Marine One”.

And here’s the result so far:

The VH-71 program is six years behind schedule, and its cost has grown from $6.5 billion to over $13 billion. Over $3.2 billion has already been spent on this program with no operational aircraft delivered. The Government Accountability Office has warned that future costs of the VH-71 are unknown, and the Congressional Research Service has raised the question if the current program should be cancelled. These high costs and schedule slippage have occurred because of challenging program requirements and an ambitious schedule. Instead of continuing to pursue the current program, the Administration proposes to cancel it, review requirements, and establish a new program. A new Presidential Helicopter replacement program will allow the Administration to take advantage of new technologies and develop a helicopter that is fiscally responsible while still meeting the President’s requirements.

Now, at this time, the Congressional Research Service is wondering if this program should be cancelled.

Well, DUH!

The recommendation is equally duh, find someone else to do it cheaper.

Could Congress have actually been this blind?  Well, that’s any easy argument to make with what the CRS has put on paper and released to the world, six years behind schedule with no operational aircraft?  Here’s what Lockheed is saying about the VH-71:

In January 2005, Lockheed Martin was awarded the contract to build the next-generation presidential helicopter to replace the aging fleet of H-3s and H-60s currently in use, which will start being retired in 2017. The VH-71 is based on the EH101 aircraft manufactured by principal subcontractor AgustaWestland……

Increment 1 aircraft began arriving in late 2007. Two test aircraft are in flight testing with the U.S. Navy and Marine Corps at Naval Air Station Patuxent River, Md. Two test aircraft are undergoing mission systems integration at Lockheed Martin, NY. The first operational, or pilot production VH-71 made its initial flight September 22, 2008. The four test aircraft and one operational aircraft have flown a combined test flight total of just under 800 hours.

All Systems Integration Laboratories that support the VH-71 presidential helicopter program are fully functional at Naval Air Station Patuxent River, MD, Lockheed Martin, Owego, NY and Agusta, Cascina Costa, Italy. Ninety-eight percent of Increment 1 mission systems software is complete, and Lockheed Martin has met or exceeded all key performance parameters for Increment 1 aircraft.

OK, the way I get it here doesn’t exactly jive with what the CRS is saying.  First of all, seems to me 2009-2005 isn’t six.  I don’t know how they came up with six years.  But, if Lockheed was given the contract in 2005, they’ve had four years, not six, to do their thing.

The second problem I have is Lockheed states there are several flying right now.  That’s a lot different than saying “no operational aircraft delivered”.  Now, here’s why I dismiss this part to some degree.  How safe is a concept aircraft that’s never been tested?  If you were going to ride in this thing, how much testing would you want before you felt safe?

And, the part that bothers me most is Lockheed saying they are 98% done.  In other words, you’ve incurred at least 98% of the expense at this time.  If you ditch that 98% and start from scratch, you’ve wasted $13 billion.  The CRS’s recommendation is to totally ditch what’s been spent and bid it out again.  I think my recommendation would be to give Lockheed six months to deliver.  If they can’t do that with the craft that are already flying, there really is a serious problem and maybe the VH-71 just needs to be ditched. 

Now, I’ve defended Lockheed at this point.  However, my biggest issue is, what in the hell do you do that costs $13 BILLION dollars and takes years to build that we’ve already been flying for fifty years in the first place?  A helicopter’s not a new gadget, they’re older than I am.  Sure, this one may be bigger and fancier, but I would assume all the newer and fancier gadgets already exist as well.  It would just be a matter of fitting these new gadgets in a new box.  So, I gotta question the $13 BILLION price tag.  This is taxpayor money, I deserve detailed spending reports.

Now, I know what a lot of you are thinking, since Obama just took office, this is yet another example of the Bush culture of corruption.  Well, not so fast.  First of all, this contract was awarded in January 2007.  Nancy Pelosi and the Democrats had taken control of the House that year.  So, although the original bid was a Republican responsibility, as of 2007, practically the day the contract was signed, it’s been a Democrat responsibility.  In other words, not one penny was spent by the Republicans on this baby.  The Democrats could have killed this thing before it even got started.  They didn’t.  So, given that the Congressional Research Service reports to Congress, it would seem some Congressmen ( and women of course ), would have been aware of the issues surrounding the VH-71 for two years.  No one said a word basically.  Now, Obama has declared the federal budget be cut one half of one percent, and suddenly this helicopter is made very public.

When something like this happens, I love to follow the money trail.  Here’s some facts that may or may not mean something to people.  Let’s start with lobbying.  Congressional Research Service says this thing is six years behind schedule, so let’s go back six years and start.  In regards to being a heavy hitter, here’s Lockheed’s rank in total lobbying over the last six years:

Year Rank
2003 NR
2004 NR
2005 NR
2006 NR
2007 NR
2008 13
2009 5

Seems to have jumped quite a bit once Nancy and the Dems took over the spending for Congress.  Wonder who got the benefit of all that extra cash?  Probably not who you’d assume.  Certainly wasn’t who I expected:

recipient recipient type Donations
Congressional Black Caucus PAC PAC Profile 55,000.00
Rodney Frelinghuysen (R-NJ) Politician Profile 30,000.00
Daniel K. Inouye (D-Hawaii) Politician Profile 18,000.00
John Boehner (R-Ohio) Politician Profile 17,500.00
National Republican Senatorial Cmte Party Committee Profile 15,000.00
Democratic Congressional Campaign Cmte Party Committee Profile 15,000.00
Democratic Senatorial Campaign Cmte Party Committee Profile 15,000.00
National Republican Congressional Cmte Party Committee Profile 15,000.00
Republican National Cmte Party Committee Profile 15,000.00
Norm Dicks (D-Wash) Politician Profile 14,500.00
Bennie G. Thompson (D-Miss) Politician Profile 14,000.00
Ted Stevens (R-Alaska) Politician Profile 14,000.00
Jack Reed (D-RI) Politician Profile 12,000.00
Tom Udall (D-NM) Politician Profile 11,500.00
Doc Hastings (R-Wash) Politician Profile 11,000.00
Roger Wicker (R-Miss) Politician Profile 10,000.00
John D. Dingell (D-Mich) Politician Profile 10,000.00
Solomon P. Ortiz (D-Texas) Politician Profile 10,000.00
Robert E. Andrews (D-NJ) Politician Profile 10,000.00
Steny H. Hoyer (D-Md) Politician Profile 10,000.00

The Congressional Black Caucus PAC?  The Congressional Black Caucus so far has gotten more than the Democratic Senatorial Campaign Committee and Democratic Congressional Campaign Committee combined.  Apparently Lockheed Martin, for some strange reason, feels it’s more important to pander to a race oriented organization than a national party.  For a while it worked for them.  However, apparently Obama wants to put an end to that relationship ASAP.  First the F-22 was cancelled, and now it looks like the $13 BILLION helicopter is gone.

Now, where this gets kind of weird for me is if somehow, the VH-71 is saved, it will have the appearance that special interest groups intervened.  That special interest group would be the Congressional Black Caucus, and they would be fighting against a black President.

Washington sure makes for some strange politics.

Bottom line, I think Lockheed Martin is pandering to who they perceive to be in charge in DC.  The appearance is probably as bad as the reality in this circumstance.

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  • http://None Marine1

    This is the weakest response to the VH71 cancellation that I’ve seen yet. You’re taking excerpts of quotes out of context, pretending to understand them and making rediculous conclusions. My suggestion, run for public office.
    In the meantime, take some time, research the facts, get the story straight and realize that there are thousands of hard working Americans pouring their heart into this program each and every day. These are highly intelligent hard working people who don’t deserve to treated the way the media has portrayed them. It’s not worth my time to itemize each of your flawed comments and respond with the truth. I will however take a few minutes to defend those who have done a magnificent job building one of the most sofisticated helicopters in the world today under an accelerated schedule. For once someone needs to say good job! The facts will come out and my guess is the program will continue on with additional funding provided by Congress and our President will safer as a result this teams efforts. I hope more of you will get behind them and show your support for the job that they do.

    Best wishes,
    Marine1

  • Moonage

    You obviously didn’t read the entire post. Try it again and see if your response is the same.

  • http://None Marine1

    I did actually read through it before responding. Is there something that I’m missing? I would be glad to have a meaningful dialog on the topic if you’re interested.
    There truly is a lot of information that you’re missing. For example the 800 requirement changes from the Govt, 50 of which were significant changes to the aircraft after the contract was awarded for 6.5 billion. Imagine if you were hired for a job for a specific purpose at a set price, and after you get the job half done you’re boss comes over, changes your job description and says ok now get to work. And by the way do it for the original cost and original schedule. Like anyone you would say that’s impossible. This helicopter is designed to survive a nuclear attack, take on heavy artillary, and be able to take the president 300 miles without refueling, which by the way is 3 times farther than the 30yr old helo’s he’s flying in today. That’s not even the major cost driver. The new helo is designed to be an oval office in the sky having the same communications capabilities as Air Force One only packed into the tight confines of a helicopter. Obviously, the more you add, the heavier the weight, the less fuel economy and round and round you go. Where we need to place the blame here is not on Lockheed Martin or Agusta Westland but on the Govt who is causing the requirements churn and driving up the cost.
    So I fully support the continuation of VH71 Increment 1 with a scaled back set of requirements that the Govt feels that they can afford. This is a good use of tax payer dollars, rather than tossing away the 3.5b already invested. AgustaWestland has already proposed that 19 total VH71 Increment 1 helicopters can be delivered for the original contact price of 6.5b dollars and can deliver them within the original program schedule. I think this is a fair compromise, and a wise decision on the part of lawmakers. I hope you’ll consider these facts and re-evaluate whether you still feel that this program should be cut and hard working American jobs lost in the wost economy our country has seen in decades. I’m all about cutting spending, but to do this just to save less than a half of a percent (<0.5%) of a 3Trillion dollar budget seems irresponsible and political at best. We need to stop making good companies like Lockheed Martin and AugstaWestland into the poster child for wasteful spending, and focus on the AIG’s, and Chrysler’s of the world and hold them accountable for running their companies into the ground.

    Respectfully,
    Marine1

  • http://politics.moonagewebderam.com Moonage

    Well, my only point was something didn’t seem right. The case as presented by the Congressional Research Service was a slam dunk, so long as you didn’t ask a single question. As soon as I asked one simple question, the entire argument the Congressional Research Service makes falls apart very quickly. It seemed to me you thought I was siding with the CRS, which I’m most definitely not.

    And, given the circumstances, which I did question, as to why it would take so long and so much money to develop what has been around for fifty years, you answered that exactly as I expected. And, of course, that was never mentioned in the CRS report.

    I’m against wasteful spending, if it’s truly wasteful. However, in this case, starting over, which is the CRS recommendation, is absurd.
    My main point, which I reiterated twice, is that you don’t toss the baby out with the wash when the wash is 98% done and then start the wash all over again. I didn’t have any of the details you provide, so I greatly appreciated your comment, but I just didn’t want people thinking I’m condoning this report. I considered it a political hatchet job because Lockheed had donated tremendously to the Republicans up until the last couple of years, and they still do. I just found the primary recipiant of their new focus odd, the Congressional Black Caucus? Do they run the Department of Defense now?

    I would love to have a meaningful dialogue about this issue, and many others. However, on this issue, I am woefully uninformed about the mechanics of building a helicopter, or the politics surrounding it. All I can do is question the politics of it as presented to the public. By doing that, as has happened here several times in the past, it creates a forum for those that do have an insight as to what is happening. Feel free to say all you want here.

NAVIGATION