Andrews reasoned that it was best to develop heavy bombing techniques as quickly as possible. Though the heavy bombers were meant for testing, the commander of Army General Headquarters (Air Force), Major General Frank Andrews, decided to assign twelve Y1B-17s to the 2nd Bomb Group located at Langley Field, Virginia. Following the crash, the Army Air Corps was put on notice: another such crash would mean the end of the bomber's "F-1" procurement program. Though damage was minimal, the cumulative impact of this event, combined with the crash of the Model 299, triggered a Congressional investigation. On 7 December 1936, five days after the first flight of the Y1B-17, the brakes on the bomber fused during landing, and it nosed over. Most changes were minor: the most notable was switching from double-wishbone to single-arm landing gear for ease of regular maintenance. Several changes were also made in the armament, and the crew was reduced from seven to six. Unlike its predecessor, which had used Pratt & Whitney R-1690 Hornet radial engines, the Y1B-17 used the more powerful Wright R-1820 Cyclone that would become the standard power plant on all B-17s produced. On November 20, 1936, the bomber's normal acquisition funding was changed to "F-1", and the heavy YB-17 bomber was redesignated "Y1B-17", as a result. Though still enthusiastic about the Boeing design, despite it being disqualified from the fly-off contest following the crash of the Model 299 prototype, the Army Air Corps cut its order from 65 service test YB-17s to just 13. Wikimedia Commons has media related to Boeing Model 299. The aircraft has since been referred to as the XB-17, but this designation is not contemporary or official. Despite the crash (and more important, its much higher cost per unit), Army Air Corps leaders were impressed by the bomber's performance, so Boeing was awarded an initial development contract. Subsequent implementation of a mandatory pre-flight checklist prior to take-off ensured avoidance of flight crew error. Though it crashed and burned on takeoff during a demonstration, the crash was due to flight-crew error, not from any flaw in the aircraft.
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On its flight from Seattle, Washington to Wright Field for the competition, the 299 set a nonstop speed record of 252 mph (406 km/h).
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In 1935, Boeing's Model 299 competed with several entries by other aircraft companies at an evaluation at Wright Field near Dayton, Ohio, USA. 30 caliber machine guns, with one in a nose turret and one each in dorsal and ventral mounts and two in waist blisters. It carried a bomb load of eight 600 pounds (270 kg) bombs, with a defensive armament of five. The 299 was powered by four Pratt & Whitney S1EG Hornet radial engines rated at 750 horsepower (560 kW) each at 7,000 feet (2,100 m), giving a maximum speed of 236 miles per hour (380 km/h) and a maximum gross weight of 38,053 pounds (17,261 kg). The Model 299 was the original bomber design built by Boeing to fulfill an August 1934 requirement by the United States Army Air Corps for a bomber capable of carrying 2,000 lb (907 kg) of bombs 2,000 mi (3,218 km) at 200 mph (322 km/h).