In 1955, the Army Field Forces were transformed into the Continental Army Command (CONARC). Dahlquist, who had been promoted to 4-star General on 18 August 1954, continued in command. On 11 October 1955, CONARC recommended that the Department of the Army initiate a program to develop a replacement observation helicopter for the aging OH-13 Sioux and OH-23 Raven. Army's Chief of Research and Development agreed to include the requirement for a new helicopter in the budget for fiscal year 1957 on 19 March 1956, after CONARC highlighted the continued lack of development for replacement aircraft.