I also thought this was broken when I was collecting the notorious helmets for the badge/reckoner title, but you actually only get the next level up on the helmet you currently have. For example, if you haven't got the outlawed helmet (+2) before, you would get that from the bounty, if you do it again the following week you'll get the Notorius version (+3). Hope that helps
Yup, you can't get a notorious helm (for whatever set you're working toward) without first getting the outlawed helm, etc. Just have to keep doing those weeklies from Drifter.