US Air Force awards Boeing $180 million contract for seven MH-139A helicopters, despite program being overbudget

Boeing has been awarded a $178 million contract to produce seven MH-139A helicopters, known as Grey Wolf helicopters, from the US Air Force, bringing the total order number up to 26. As part of the contract, Boeing will provide sustainment and training support. ""Building the Grey Wolf fleet and paving the way towards full rate production is a critical step in supporting the Air Force’s modernisation priorities,"" said MH-139 program director Azeem Khan. ""Delivering on these commitments and getting more capability into the hands of our customers is important to their mission protecting vital national assets."" It follows the US Air Force detailing in its full year budget 2025 in March that it would cut its procurement of MH-139A helicopters from its initially projected total of 74 helicopters to only 36 total through to FY2029. Though the budget said: ""Currently, funding is available to procure 42 MH-139a helicopters, training devices, and associated support equipment."" The program has run over budget, US representatives heard on April 30 at a House defence appropriations subcommittee hearing. A US Air Force spokesperson at the hearing had confirmed that there was a Nunn-McCurdy breach for the MH-139A program. The subcommittee was notified of the breach following the procurement cuts. A Nunn-McCurdy breach stems from the Nunn-McCurdy Act 1983, which is a piece of legislation that allows Congress to manage the costs of defence acquisition programs. A significant breach occurs when a program's costs have increased 15% above the current baseline estimate or 30% above the original baseline estimate. In the instance of a critical breach, which terminates the program if occurred, the program has gone 25% over its current estimate or 50% or its original estimate. The MH-139 is a multi-mission helicopter designed for patrol, search and rescue, and troop and cargo transport and is based on the Leonardo Helicopters AW139. The helicopters are fitted with custom military equipment by Boeing.