Obama says U.S. helicopter project costs "gone amok"

By Ross Colvin

WASHINGTON (Reuters) - President Barack Obama vowed on Monday to crack down on costly military programs, citing a project to build a new presidential helicopter fleet as an example of the procurement process "gone amok."

Lockheed Martin Corp's helicopter program is now more expensive than Air Force One, the high-tech Boeing 747 that ferries the president, former Republican presidential candidate Senator John McCain told a summit convened to look at ways of curbing the United States' $1.3 trillion deficit.

Lockheed shares closed down nearly 5 percent on Monday, a day when Wall Street shares hit 13-year lows.

McCain and Democratic Senator Carl Levin, head of the Senate Armed Services Committee, will introduce a bill this week to rein in military weapons programs which now routinely run billions of dollars over budget, Levin said.

"This is going to be one of our highest priorities," Obama assured McCain when the senator told him at the summit that the government had to act to curb the "excesses of procurement."

With the United States facing the worst economic crisis in decades, Obama has pledged to review major defense programs.

As a result of the cost growth, the Defense Department must either end the program or certify that it is essential for national security and meets other tests established by law.

"I have already talked to (Defense Secretary Robert) Gates about a thorough review of the helicopter situation. The helicopter I have now seems perfectly adequate to me," Obama told about 130 lawmakers, academics and business leaders gathered at the White House.