# H-1 Upgrades — Program Element 0604245M

**Program element:** 0604245M  
**Component:** U.S. Navy  
**Appropriation:** 1319 — RDT&E, Navy  
**Budget Activity:** 5 — System Development & Demonstration  
**Vintage:** President's Budget PB2027  
**Canonical URL:** https://hitchintel.com/programs/0604245M

## Summary

U.S. Navy requests $66.4M in FY2027 — the program's peak. In the FY2027 defense authorization, the House funded it in full; the Senate funded it in full; House appropriators funded it in full. NAWCAD leads the industry work.

## Funding profile

| Fiscal Year | Estimate Type | Amount ($M) |
|---|---|---|
| FY2025 | Actual | 43.7 |
| FY2026 | Enacted | 62.2 |
| FY2027 | Request | 66.4 |
| FY2028 | Outyear | 65.9 |
| FY2029 | Outyear | 55.8 |
| FY2030 | Outyear | 47.2 |
| FY2031 | Outyear | 45.1 |

> Estimate types are not summed — the profile mixes actuals, enacted law, the request, and outyear projections.

## Congressional marks (FY2027)

| Stage | Marked ($M) | Change ($M) |
|---|---|---|
| Request | 66.4 | — |
| House NDAA (HASC) | 66.4 | +0.0 |
| Senate NDAA (SASC) | 66.4 | +0.0 |
| House Approps (HAC-D) | 66.4 | +0.0 |

> FY2027 NDAA authorization marks, as of 2026-07-27. Not appropriations or final law.

## Projects (1)

| Project | Title | FY2025 actual | FY2026 enacted | FY2027 request | Move |
|---|---|---|---|---|---|
| 3359 | H-1 Improvements | 43.7 | 62.2 | 66.4 | +7% |

> Projects are the summable leaves: the program element total is their sum, never added to it.

### Project 3359 — H-1 Improvements

The H-1 Improvements program is designed to advance the entire H-1 fleet, which includes the AH-1Z Viper and UH-1Y Venom helicopters. This initiative aligns with the Marine Corps' H-1 modernization strategy, emphasizing the integration of enhanced capabilities to increase the fleet's lethality, digital interoperability, and survivability. Each upgrade is accompanied by dedicated Software Configuration Set (SCS) development, robust cybersecurity protocols, and thorough testing to address hazard reports and maintain platform integrity. Air Vehicle and Engine Improvements are a central focus of the modernization initiative, aiming to maintain the structural integrity and reliability of the H-1 fleet well into the 2050s. Research, Development, Test, and Evaluation (RDT&E) funds are being allocated to analyze structural data, establish Damage Limits and Tolerances, and ultimately reduce life cycle costs and maintenance demands. The Air Vehicle scope also includes enhancements to rotors, flight controls, drive systems, and the development and testing of key airframe components such as the tail boom and fuselage. These efforts are designed to minimize wear, boost reliability, and address any design or safety shortcomings. Development of auxiliary fuel cells increases operational range and endurance. The program also encompasses Rotorcraft Station Control Unit (RSCU) software upgrades, thorough testing, and strengthened cybersecurity measures for the RSCU. Avionics modernization is a key driver in elevating the Marine Corps H-1 fleet's capabilities, with particular emphasis on Digital Interoperability (DI), integrated avionics, and improved situational awareness to enhance pilot and aircrew safety. The DI Integration initiative comprises a suite of systems designed to enable the H-1 platform to function as both a kill web enabler and effector. This effort incorporates technologies such as Link-16, the Advanced Net-Enabled Weapons (ANEW) datalink, and the Advanced Data Transfer System (ADTS). Upgrades include Degraded Visual Environment (DVE) systems, state-of-the-art cockpit displays, and a Health and Usage Monitoring System (HUMS) to increase operational safety and reliability. Communications modernization efforts focus on enhanced COMSEC and Embedded Global Positioning System (EGI) capabilities, along with the integration of a new Radar Altimeter (RADALT).

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** NAWCAD (26.8, 40%), Northrup Grumman (20.5, 31%), BHTI (12.4, 19%), COMOPTEVFOR (0.5, 0.8%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| Weapons and Sensors Testing and Integration | 10.4 | 13.7 | 6.0 |
| Air Vehicle and Engines Improvements | 7.3 | 6.6 | 3.5 |
| Avionics Improvements | 26.1 | 41.9 | 56.9 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

## Where the FY2027 request goes

| Category | Share | $M |
|---|---|---|
| Industry primes | 91% | 60.6 |
| Government labs & warfare centers | 0.1% | 0.1 |
| Other / unspecified | 8.6% | 5.7 |

**Top named industry performers:** NAWCAD ($26.8M, 40%), Northrup Grumman ($20.5M, 31%), BHTI ($12.4M, 19%).

> R-3 exhibit contract funding, not USAspending obligations.

## Mission & acquisition strategy

The H-1 Improvements program is designed to advance the entire H-1 fleet, which includes the AH-1Z Viper and UH-1Y Venom helicopters. This initiative aligns with the Marine Corps' H-1 modernization strategy, emphasizing the integration of enhanced capabilities to increase the fleet's lethality, digital interoperability, and survivability. Each upgrade is accompanied by dedicated Software Configuration Set (SCS) development, robust cybersecurity protocols, and thorough testing to address hazard reports and maintain platform integrity.

Follow-on H-1 Improvements will be developed using cost plus fixed fee type contracts.

## Related program elements

- [0602146A — Network C3I Technology](https://hitchintel.com/programs/0602146A) (Army)
- [0605036A — Combating Weapons of Mass Destruction (CWMD)](https://hitchintel.com/programs/0605036A) (Army)
- [0603384BP — Chemical and Biological Defense Program - Advanced Development](https://hitchintel.com/programs/0603384BP) (Defense-Wide)
- [1208053SF — Joint Tactical Ground Station](https://hitchintel.com/programs/1208053SF) (Space Force)

## Source & machine access

- **Source:** FY2027 Department of the Navy RDT&E Budget Justification, Exhibits R-2/R-3, PE 0604245M (PB PB2027); FY2027 NDAA committee marks (as of 2026-07-27).
- **MCP:** `mcp.hitchintel.com` — `budget_get_program_element(pe="0604245M")`.

*HitchAI is an independent intelligence service, not affiliated with the U.S. Department of Defense. Budget figures are requests/estimates, not obligations.*