The request by Lockheed is basically giving up on the increment I aircraft and going to Increment II, thus missing the delivery date by years, throwing in the towel on an entire configuration, and scrapping the essential plan to land on the White House Lawn in 2008. This is because the massive structural changes (a whole new fuselage) to suit the safety standards has increased empty weight to the point where it cannot hover IGE. The "cure" is a whole new rotor (throwing away the BERP blades) and adding 5 feet of rotor diameter to get the lift to get the aircraft flying.
The "misunderstanding" is that Lockheed expected to fly the President in a helicopter that does not meet the requirements for flying a US Army Sargeant!
And the three engines do not get the helo to hover IGE while the competitor could and does hover OGE under the same conditions.
I predict that once the administration leaves office, the Navy will kill the EH program and recompete.
For the record, Lockheed is now saying that the EH-101 cannot be made into a Presidential transport, the entirely new helo they develop (new fuselage, rotors, transmissions and engines) will have to do so.