US Air Force wants no long delay on new helicopter

By Andrea Shalal-Esa

WASHINGTON, Feb 28 (Reuters) - The U.S. Air Force wants to avoid a long delay in a $15 billion helicopter competition that the Government Accountability Office has urged it to reopen, Air Force Secretary Michael Wynne said on Wednesday.

Wynne told reporters after a House Armed Services Committee hearing that he hoped Boeing Co. (BA.N: Quote, Profile, Research, Stock Buzz) could resume work on the Combat Search and Rescue (CSAR-X) helicopter program in fiscal year 2007, which ends on Sept. 30.

"Our hope -- and maybe we're optimistic -- but I'd like to stay with what we got and get this product going as soon as possible," Wynne said.

The GAO on Monday upheld protests filed by Lockheed Martin Corp. (LMT.N: Quote, Profile, Research, Stock Buzz) and Sikorsky Aircraft, a unit of United Technologies Corp. (UTX.N: Quote, Profile, Research, Stock Buzz), against the Boeing contract.

It said the Air Force should amend the terms of the competition to make its intentions clear, reopen discussions with bidding companies, and then request revised proposals.

The Air Force responded a day later, saying it believed it could comply "more narrowly" with the ruling.

"'Narrowly' would be whatever I could do to get it done quickly and get on with the program," Wynne said, when asked to explain the term. "I have a real need for this equipment."

He said Air Force officials were still reviewing the GAO recommendations to determine the next steps, but said the GAO ruling appeared to be "pretty confined" to how the Air Force evaluated the life cycle costs of the various bidders.