Pentagon Contract Announcement
(Source: US Department of Defense; issued June 29, 2018)
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 (corrected to 14) 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.

On July 3, the Pentagon issued the following correction:
"The contract modification awarded on June 29, 2018, to Bell Boeing Joint Project Office, Amarillo, Texas, for $4,191,533,822 announced an incorrect number of aircraft.
The award should have stated that the Marine Corps would receive 14 MV-22B aircraft.
All other contract information is correct."

(EDITOR’S NOTE: (Corrected))
The corrected number of Marine Corps MV-22 -- 14 instead of 34 as originally stated -- means the Corps is paying about $74.1 million for each of its 14 aircraft, which is broadly comparable to the amount paid by the other services:
-- US Navy CMV-22B cost $73 million each;
-- the single US Air Force CV-22B costs $75.7 million;
-- Japanese MV-22B cost $57.5 million each, but the difference was paid in advance.
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.)

Story history
-- July 04:
* Added Pentagon correction regarding the number of aircraft for the Marine Corps
* corrected number in headline
* revised Editor's Note.


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