CSAR-X Experiences More Delays

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CSAR-X Experiences More Delays

Oct 15, 2008
Michael Fabey


Delays continue for the U.S. Air Force’s $15 billion combat, search and rescue (CSAR-X) helicopter replacement program.

Contractors confirm that Air Force briefings scheduled for early October have been postponed as the service focuses more intently on its internal review of the troubled acquisition, which was slapped down twice by the U.S. Government Accountability Office (GAO) and is now the subject of a Pentagon Inspector General (IG) investigation.

GAO sustained two protests by CSAR-X competitors Lockheed Martin and Sikorsky against the Air Force’s original award to Boeing, saying the service failed to consider certain lifecycle costs in its decision.

In response, the Air Force apparently has sought input from professional logistic managers to review the CSAR-X lifecycle cost component, contractors have confirmed.

Just what the extra internal review will do to the CSAR-X contract award schedule is unclear. The program is scheduled for a Defense Acquisition Board (DAB) meeting in early December and the Air Force has maintained it hopes to make an award this fall.

“We do believe the CSAR-X contract will be awarded this year and our HH-47 proposal stands ready to meet the requirements,” Boeing spokeswoman Jenna McMullin said.

But the briefing postponements, added Air Force scrutiny and more intense focus on lifecycle costs have analysts and others familiar with the program doubting that any award can be made by year’s end.

Then there’s the IG report. Investigators are reviewing how and when the Air Force changed some CSAR-X requirements.

The Air Force had said it had to receive something from those investigators by mid-September. But sources say there’s likely to be no word for at least another month. And a scathing report, Air Force leaders acknowledge, could add even more delay.

In a July memo, Pentagon acquisition chief John Young emphasized the importance of considering program lifecycle costs when making acquisition decisions.

“It is very apparent to us the Air Force is being meticulous with the review,” said John Pacelli, Sikorsky vice president of marketing and business acquisition manager for CSAR-X. That suits Sikorsky just fine — the company feels that any review that focuses on lifecycle costs should benefit its S-92 variant.

Lockheed also has argued that it, too, would do well in a lifecycle analysis of its 101 variant, the HH-71.

In a recent presentation on its H-47 Chinook variant CSAR-X offer, Boeing maintains it has reduced its lifecycle costs as well.



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