Development Has Generally Progressed as Planned

Since the start of development in 2014, the VH-92A program has  generally progressed as planned. Through November 2015, Sikorsky has  accomplished approximately $239.0 million (22 percent) in development  work–leaving about $863.9 million (78 percent) in estimated work to go  over the next 5 years. As of December 2015, Sikorsky indicated that,  nearly all of the developmental tasks expected to be accomplished by that  point had been accomplished at only slightly greater cost than  anticipated. In addition, the program is currently on schedule. In the past year, the  program successfully conducted its PDR and carried out a number of  other significant development activities including continued development  of the mission communications system, prime contractor taking custody of  two S-92A aircraft, initial testing of one engineering and developmental  model (EDM) aircraft, and initiation of S-92A to VH-92A developmental  model helicopter conversions. Program is Managing Design, Integration, and Technical Challenges

As to be expected with a major system development effort, as the  program has progressed it has faced a number of design, integration, and  technical challenges, some preexisting and others realized during the  course of development. Examples of the challenges the program is  currently managing include design of the passenger doors, incorporation  of titanium framing in the two initial aircraft, and meeting requirements  relating to electromagnetic environmental effects (E3) and  electromagnetic pulse (EMP), and cybersecurity. Earned Value Management System and Master Schedule Met Best Practices

An earned value management (EVM) system is a project management  tool that integrates the technical scope of work with schedule and cost  elements for investment planning and control. We also found that the program’s IMS substantially met the best practices  for a reliable schedule. Overall, we found the program’s IMS is reliable as it substantially met all  four of the characteristics. Agency Comments

We are not making any recommendations in this report. DOD provided  written comments on a draft of this report, which are reprinted in appendix  V. In its written comments, DOD stated that it believes its efforts on this  program are aligned with our best practices and it will continue to monitor  the program and ensure that mitigations are in place to address potential  risk areas. We will also continue to monitor the program as it moves  forward. To assess the schedule, we obtained and  reviewed documentation, including the work breakdown structure. Appendix II: GAO Reports on the Presidential Helicopter Replacement Program

Presidential Helicopter Acquisition: Program Established Knowledge- Based Business Case and Entered System Development with Plans for  Managing Challenges (GAO-15-392R, April 14, 2015)
Presidential Helicopter Acquisition: Update on Program’s Progress toward  Development Start (GAO-14-358R, April 10, 2014)
Department of Defense’s Waiver of Competitive Prototyping Requirement  for the VXX Presidential Helicopter Replacement Program  (GAO-13-826R, September 6, 2013)
Presidential Helicopter Acquisition: Program Makes Progress in  Balancing Requirements, Costs, and Schedule (GAO-13-257, April 9,  2013)
Presidential Helicopter Acquisition: Effort Delayed as DOD Adopts New  Approach to Balance Requirements, Costs, and Schedule  (GAO-12-381R, February 27, 2012)
Defense Acquisitions: Application of Lessons Learned and Best Practices  in the Presidential Helicopter Program (GAO-11-380R, March 25, 2011)

Appendix III: Summary Assessment of the VH-92A Program’s Earned Value Management (EVM) Data and Practices Compared to Best Practices

	Overall assessment Met

Best practice  The program has a certified EVM system   Substantially Met: The contractor’s EVM  An Integrated Baseline Review was  conducted to ensure the performance  measurement baseline captures all of the  work  The schedule reflects the work  breakdown structure, the logical  sequencing of activities, and the  necessary resources  EVM surveillance is being performed  system has been rated acceptable,  indicating that it generally complies with  EVM system guidelines.
Why GAO Did This Study

The mission of the presidential helicopter fleet is to provide safe, reliable, and timely transportation for the President, Vice President, foreign heads of state, and other official parties as directed by the White House Military Office. The Navy plans to acquire VH-92A helicopters to replace its aging fleet. Initial delivery of VH-92A presidential helicopters is scheduled to begin in fiscal year 2020 with production ending in fiscal year 2023. Total program acquisition cost is estimated to be $5.1 billion.
This is GAO's seventh report on the program since 2011. The National Defense Authorization Act for Fiscal Year 2014 included a provision that GAO report annually on the acquisition of the VH-92A aircraft. This report discusses (1) the program's cost, schedule, and performance status; (2) challenges it faces in system development; and (3) its adherence to acquisition best practices. To conduct the review, GAO examined program documents, including Navy, contractor, and on-site government program monitor reports. GAO also interviewed officials, reviewed the earned value management system, and assessed the integrated master schedule against GAO best practices.

What GAO Found

Since 2014, the VH-92A presidential helicopter program has generally progressed as planned. Through November 2015, the contractor accomplished approximately $239.0 million (22 percent) in development work—leaving about $863.9 million (78 percent) in estimated work over the next 5 years. As of December 2015, the prime contractor had accomplished nearly all of the expected developmental tasks at only slightly greater cost than anticipated. The program is currently on track to accomplish key development milestones as planned. In the past year, the program successfully conducted its preliminary design review and carried out a number of other significant development activities, including: continued development of the mission communications system, delivery and initial testing of aircraft for risk-reduction activities, and initiation of the conversion of Sikorsky S-92A helicopters into VH-92A developmental models.
As expected with a major system development effort, the program faces a number of design and technical challenges, some preexisting and others realized during the course of development. Those challenges include designing passenger doors, incorporating titanium framing in the two initial aircraft, meeting requirements relating to electromagnetic environmental effects, and cybersecurity. The program took advantage of capability and testing trades that produced cost and schedule savings. For example, the program was able to reduce physical testing by relying on existing information about the aircraft's performance, supplemented by additional information collected during testing and through modeling.
When assessed against best practices, GAO found that the contractor's earned value management system, a project management tool for investment planning and control, fully or substantially met the three characteristics for a reliable earned value management system. Similarly, in assessing the program's integrated master schedule against best practices, GAO found that it substantially met all four of the characteristics required for a reliable schedule.

What GAO Recommends

GAO is not making recommendations in this report. In commenting on a draft of this report, DOD stated that it believes its efforts on this program are aligned with GAO's best practices and it will continue to monitor the program and ensure that mitigations are in place to address potential risk areas. GAO will also continue to monitor the program as it moves forward.