Bell OH-58 Kiowa Military Helicopter

While no development occurred during the next few years, the program survived as a requirement without funding. On 30 November 1979, the decision was made to defer development of an advanced scout helicopter in favor of pursuing modification of existing airframes in the inventory as a near term scout helicopter (NTSH) option. The development of a mast-mounted sight would be the primary focus to improve the aircraft's ability to perform reconnaissance, surveillance, and target acquisition missions while remaining hidden behind trees and terrain. Both the UH-1 and the OH-58 were evaluated as NTSH candidates, but the UH-1 was dropped from consideration due to its larger size and ease of detection. The OH-58, on the other hand demonstrated a dramatic reduction in detectability with an MMS.
On 10 July 1980, the Army decided that the NTSH would be a competitive modification program based on developments in the commercial helicopter industry, particularly Hughes Helicopters development of the Hughes 500D which provided significant improvements over the OH-6.
• Army Helicopter Improvement Program (AHIP)
The Army's decision to acquire the NTSH resulted in the "Army Helicopter Improvement Program (AHIP)". Both Bell Helicopter and Hughes Helicopters redesigned their scout aircraft to compete for the contract. Bell offered a more robust version of the OH-58 in their model 406 aircraft, and Hughes offered an upgraded version of the OH-6. On 21 September 1981, Bell Helicopter Textron was awarded a development contract. The first prototype flew on 6 October 1983, and the aircraft entered service in 1985 as the OH-58D.