Summary: The Navy's CH-53E helicopter program is a good case study of some of the ills the Procurement Commission and the principles embodied in OMB Circular A-109 sought to correct. No clear mission need was apparent and there was no competition during its development. The Navy, however, did an excellent job of testing the helicopter. A report on the status of the CH-53E Helicopter Program centered on a decision to extend the research and development effort and plans to award a production contract. Navy and contractor testing disclosed that the Automatic Flight Control System was not operationally suitable and that a new transmission was needed to improve reliability and maintainability. Several deficiencies were disclosed that affected airworthiness, mission effectiveness, and safety. Since September, 1974, the estimated program cost increased over $266 million, about 48 percent. In September, 1976, $20 million of fiscal year 1977 procurement funds were reprogrammed for research and development to finance the extended development effort. The Secretary of Defense should monitor the program to ensure that significant amounts of procurement funds are not committed until further testing establishes that production is warranted.
