The Army's Ah-64 Helicopter And Hellfire Missile Retain Risks As They Enter Production V. C-MASAD-83-9

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C-MASAD-83-9 1 (1983-01-26)

handle is hein.gao/gaobabdwe0001 and id is 1 raw text is:

This is an unclassified digest furnished in lieu of
a report containing classified security information.

REPORT BY THE THE ARMY'S AH-64 HELICOPTER
COMPTROLLER GENERAL AND HELLFIRE MISSILE RETAIN
OF THE UNITED STATES RISKS AS THEY ENTER PRODUCTION

DIGEST

The Army's AH-64 advanced attack helicopter and
Hellfire missile are now at a critical
juncture--the transition from development into
production. The AH-64's primary mission is to
kill tanks with the laser-guided Hellfire. The
helicopter's affordability was questioned in
the Congress during the fiscal year 1983 budget
hearings and is likely to undergo careful scru-
tiny again as future production increments are
considered for funding.

There are no indications at this time that
either the AH-64 or Hellfire programs should
not continue on their present schedules. Some
aspects of both programs, however, bear watch-
ing if they are to continue the progress they
have made in the past year. The programs have
benefited from the close personal attention of
the Under Secretary of the Army, particularly
through his efforts to contain cost growth and
to oversee areas of production where uncer-
tainties remain.

Essentially, the uncertainties are of two
types. The principal contractors must overcome
formidable production hurdles. Also, the gov-
ernment must complete testing and evaluation to
verify the success of modifications made to
certain critical components which earlier had
exhibited some performance problems.

GAO undertook'this review to evaluate the risks
still facing the AH-64 and Hellfire upon enter-
ing production and the progress the Department
of Defense has made in addressing these risks.
(See pp. 1 to 4 and pp. 19 and 20.)

PRODUCTION UNCERTAINTIES REMAIN
IN BOTH PROGRAMS

The prospects for producing the AH-64 and Hell-
fire within projected costs and schedules will

GAO/C-MASAD-83-9
JANUARY 26, 1983

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