Pentagon Orders 78 Osprey Tiltrotors in $4.2 Billion Deal

The Pentagon has awarded the Bell-Boeing partnership a multiyear contract to provide 78 V-22 Osprey tiltrotors to the US Air Force, Navy and Marines, as well as four additional aircraft to Japan. Seen here is the US Air Force CV-22B variant. (USAF photo)

Bell Boeing JPO, Amarillo, Texas, is awarded $4,191,533,822 for modification P00008 to convert the previously awarded V-22 tiltrotor aircraft advance acquisition contract (N00019-17-C-0015) to a fixed-price-incentive-fee multiyear contract.

This contract provides for the manufacture and delivery of 39 CMV-22B aircraft for the Navy; 34 MV-22B aircraft for the Marine Corps; 1 CV-22B for the Air Force; and 4 MV-22B aircraft for the government of Japan.

Work will be performed in: Fort Worth, Texas (30.08 percent); Ridley Park, Pennsylvania (15.22 percent); Amarillo, Texas (12.73 percent); Red Oak, Texas (3.33 percent); East Aurora, New York (2.55 percent); Park City, Utah (2.20 percent); McKinney, Texas (1.33 percent); Endicott, New York (1.15 percent); Denton, Texas (0.91 percent); Rockmart, Georgia (0.80 percent); Irvine, California (0.78 percent); Rome, New York (0.76 percent); Crestview, Florida (0.72 percent); Erie, Pennsylvania (0.66 percent); Dublin, California (0.62 percent); Rockford, Illinois (0.62 percent); Tempe, Arizona (0.57 percent); Los Angeles, California (0.57 percent); East Hartford, Connecticut (0.55 percent); Minden, Nebraska (0.50 percent); Hazelwood, Missouri (0.50 percent); and various other locations within the continental U.S. (18.93 percent); and outside the continental U.S. (3.92 percent), and is expected to be completed in November 2024.

Fiscal 2017 aircraft procurement (Navy, Air Force, and Marine Corps); and fiscal 2018 aircraft procurement (Navy) funding in the amount of $1,113,956,972 will be obligated at time of award, none of which will expire at the end of the current fiscal year.

This modification combines purchases for the Navy ($2,847,293,666; 67.9 percent); Marine Corps ($1,038,248,567; 24.8 percent); Air Force ($75,705,989; 1.8 percent); and the government of Japan ($230,285,600; 5.5 percent), under the Foreign Military Sales program.

The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

(EDITOR’S NOTE: The numbers in this contract announcements are puzzling.
While the cost of a US Navy CMV-22B works out to $73 million and that of the single US Air Force CV-22B is $75.7 million, the unit cost of each Japanese MV-22B works out to $57.5 million, while each Marine Corps MV-22B only costs $30.5 million.
Other, previous contracts obviously paid most of the cost of the Marine Corps aircraft, and some of the cost of the Japanese aircraft, in advance, and should be added to the above amounts to determine how much the Marine Corps and Japan are paying for their Ospreys.
Finally, these costs only cover the airframes, as the engines are produced separately from Rolls-Royce; on the basis of recent contracts, each engine costs about $1.5 million, and so will add about $3 million to the cost of each Osprey.)

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