NAVAIR Issues V-22 Osprey Contracts Worth $1.17B
The USA’s Naval Air Systems Command in Patuxent River, MD has issued a series of contracts over the last week or so related to the twin-engine V-22 Osprey tilt-rotor transport aircraft. The V-22 Osprey remains controversial given its $100 million per plane cost, and performance questions over the course of the program. Cuts may also be forthcoming in 2007.
These contracts cover both the US Marines’ planned MV-22 machines which are approved for full-rate production, and Special Operations Command’s CV-22 which is still being modified and has yet to enter Operational Evaluation (OpEval). The total value of these six contracts, options, and delivery orders is approximately $1.17 billion.
Unless otherwise noted, all contracts were issued to the Bell-Boeing Joint Program Office in Patuxent River, MD.
A $1.058 billion estimated ceiling advance acquisition contract, for long lead components associated with the manufacture and delivery of 14 FY 2007 MV-22 for the Marines and 2 FY 2007 CV-22 aircraft for SOCOM (all Lot 11 production). Note that the ceiling amount would represent $66.125 million per aircraft. Work will be performed in Ridley Park, PA (50%); Fort Worth, TX (35%); and Amarillo, TX (15%), and is expected to be complete in September 2009. This contract was not competitively procured (N00019-06-C-0292).
Rolls-Royce Corp. in Indianapolis, IN received a $58.7 million modification to a previously awarded firm-fixed-price contract (N00019-95-C-0209), exercising an option for the FY 2006 procurement of 28 AE1107C “Liberty” engines: 22 for MV-22s and 6 for CV-22s. Work will be performed in Indianapolis, IN and is expected to be complete in December 2007. Note also the US military’s decision to buy Rolls Royce’s “power by the hour” maintenance program to create predictable engine maintenance costs. See corporate release.
A not-to-exceed $37.4 million modification to a previously awarded cost-plus-incentive-fee contract (N00019-03-C-0067) exercises an option to provide logistic services in support of the CV-22 Developmental Test and Initial Operational Test and Evaluation. Work will be performed in Edwards Air Force Base (AFB) in Kern, CA (50%), and Kirtland AFB in Albuquerque, NM (50%), and is expected to be complete in December 2006.
A $12.3 million modification to a previously awarded firm-fixed-price, fixed-price-incentive-fee contract (N00019-04-C-0012) calls for one MV-22 Flight Training Device (FTD#2) in a Block B configuration. Block B is the latest combat-ready configuration of the MV-22. Work will be performed in Fort Worth, TX (80%) and Philadelphia, PA (20%), and is expected to be complete in December 2007.
A $9.6 million delivery order against a previously awarded basic ordering agreement (N00019-04-G-0007) for engineering and technical services in support of the V-22 flight control system and on-aircraft software after completion of the V-22 Engineering and Manufacturing, Development Phase. Work will be performed in Philadelphia, PA (90%) and Fort Worth, TX (10%), and is expected to be complete in December 2006.
A $30.3 million ceiling-priced cost-plus-fixed-fee delivery order against a previously awarded basic ordering agreement (N00019-04-G-0007) to provide flight test management, flight test engineering, design engineering and related efforts for the Naval Rotary Wing HX-21 Aircraft Test Squadron, MV-22 Flight Test Program. The Naval Rotary Wing HX-21 Aircraft Test Squadron tests and evaluates all rotary wing aircraft including the H-1, H-3, H-53, H-60, TH-57 and V-22. Additionally, its maintenance department maintains the four NAS Patuxent River (UH/SH-3H) Search and Rescue assets. Work will be performed in Patuxent River, MD (80%); Ridley Township, PA (10%); and Fort Worth, TX (10%), and is expected to be completed in December 2006.