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CONTENTS

Latest News Program Status in Congress Recent Comments by Public Officials In a Nutshell Upcoming Relevant Conferences/Hearings Program Timeline Recent Contract Awards Oustanding Issues Program Cost/Unit Cost International Picture Organizational Structure/Contacts

July 20 -- InsideDefense: Official: V-22 Operates Off Carrier, Performs Simulated CASEVAC On SSBN The V-22 Osprey tiltrotor aircraft has been conducting resupply missions aboard aircraft carriers and recently performed a simulated casualty evacuation mission with a ballistic missile submarine, demonstrating some of the ways the aircraft could be used when the Navy buys its variants, the program's manager told Inside the Navy last week. July 20 -- InsideDefense: Seeking International Buyers, Navy Sends Four V-22s To Farnborough The Navy continues to seek out foreign interest in the V-22 Osprey tiltrotor aircraft, sending four aircraft to the Farnborough International Airshow in the United Kingdom earlier this month, according to Col. Greg Masiello, V-22 program manager. July 20 -- The Wall Street Journal: Japan Balks at Deployment of Aircraft -- Critics Call the V-22 Osprey Unsafe In Latest Rift Over Plans for Bases TOKYOThree days before a long-awaited shipment of upgraded U.S. Marine Corps aircraft is scheduled to arrive in Japan, controversy over their deployment is threatening to create a

rift in both the ruling Japanese party and the broader security alliance between the two countries. July 18 -- InsideDefense: DOD Plan Would Take Years To Equip V-22s With Needed Voice Recorders The Pentagon's multimillion-dollar plan to finally buy cockpit voice recorders for V-22 Ospreys, a requirement established by Congress more than a decade ago, puts a fraction of the programmed funding in the department's current budget request and would take years to field the missing mandatory devices. July 9 -- MarketWatch: V-22 Osprey budget unaffected by cutbacks FARNBOROUGH, England (MarketWatch) -- Despite widespread budget cuts, the program jointly run by Bell Helicopter, a division of Textron Inc. (US:txt), and Boeing Co. (US:BA) to expand the fleet of V-22 Osprey tilt-rotor aircrafts will continue as scheduled, said U.S. Marine Corps Col. Greg Masiello, program manager of the V-22 Joint Program Office, at the Farnborough International Airshow on Monday. The five-year expansion plan, in spite of fiscal austerity, has "full support across the board," said Masiello, and will expand basing and operations in Japan and the United Kingdom by 2013. Masiello said the the fleet is used in military action and humanitarian aid, as well as for VIP transport. July 9 -- AOL Defense: Marines Peg 'Bad Flying' As Cause of April V-22 Crash in Morocco An April 11 MV-22B Osprey crash in Morocco occurred because the pilot committed a fundamental flying error which investigators have found was rendered irreversible by a tailwind neither he nor a second pilot in the cockpit noticed, AOL Defense has confirmed.

Fiscal 2013 president's budget request: Navy: 17 aircraft, $1.49 billion plus $16 million for initial spares Air Force: 4 aircraft, $309.2 million plus $90.4 million for initial spares SUMMARY: Both the House and Senate Armed Services Committee have so far approved full funding of the aircraft in the defense authorization bill with no changes. The House Appropriations Committee, however, has added an aircraft to the Pentagon's request in the defense appropriations bill, and the Senate Appropriations Committee has not yet acted.

All three of the committees that have acted so far have included language approving of the Defense Department's decision to enter into another multiyear deal for 98 V-22 aircraft to be procured from fiscal 2013 through 2017.

House Defense Appropriations Bill


July 19 Full House APPROVES appropriations bill. NET DIFFERENCE, FUNDING: INCREASE of $59.26 million (TOTAL: $1.657 billion, both services) NET DIFFERENCE, PROCUREMENT: INCREASE of one (1) MV-22 aircraft (TOTAL: 18 MV-22s and four (4) CV-22s) RELEVANT LANGUAGE IN BILL AND REPORT: Page 31 (bill) RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY - For expenses necessary for basic and applied scientific research, development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment, $16,987,768,000, to remain available for obligation until September 30, 2014: Provided, That funds appropriated in this paragraph which are available for the V22 may be used to meet unique operational requirements of the Special Operations Forces: Provided further, That funds appropriated in this paragraph shall be available for the Cobra Judy program. Page 49 (bill) Funds appropriated in title III of this Act may be used for a multiyear procurement contract as follows: F/A18E, F/A18F, and EA18G aircraft; DDG51 Arleigh Burke class destroyer and associated systems; SSN774 Virginia class submarine and government-furnished equipment; CH47 Chinook helicopter; and V22 Osprey aircraft variants.

Senate Defense Appropriations Bill


The Senate has not yet taken up the Defense Appropriations Bill.

House Defense Authorization Bill


May 10 House Armed Services Committee APPROVES authorization bill. NET DIFFERENCE, FUNDING: NO CHANGE NET DIFFERENCE, PROCUREMENT: NO CHANGE RELEVANT LANGUAGE IN BILL AND REPORT: Page 28 (bill) SEC. 124. MULTIYEAR PROCUREMENT AUTHORITY FOR V22 JOINT AIRCRAFT PROGRAM. (a) AUTHORITY FOR MULTIYEAR PROCUREMENT. In accordance with section 2306b of title 10, United States Code, the Secretary of the Navy may enter into a multiyear contract, beginning with the fiscal year 2013 program year, for the procurement of V22 aircraft for the Department of the Navy, the Department of the Air Force, and the United States Special Operations Command. (b) CONDITION FOR OUT-YEAR CONTRACT

PAYMENTS.A contract entered into under subsection (a) shall provide that any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2013 is subject to the availability of appropriations for that purpose for such later fiscal year. Page 32 (report, part 1) Reporting of the April 8, 2000, MV22 Mishap at Marana, Arizona -- The committee notes that subsequent to an April 8, 2000, MV22 mishap at Marana Northwest Regional Airport, Arizona, the Marine Corps released information on July 27, 2000, regarding the MV22 accident investigation report. The statement indicated that a combination of 'human factors' had caused the crash of a MV22 tilt-rotor aircraft, which resulted in the loss of 19 Marines, and that, 'Although the report stops short of specifying pilot error as a cause, it notes that the pilot of the ill-fated aircraft significantly exceeded the rate of descent established by regulations for safe flight.' The committee understands that subsequent to the release of the July 27, 2000, statement, many media reports did not make a distinction between 'human factors' and 'pilot error' and reported that the mishap was the result of 'pilot error' which, according to the Marine Corps July 27, 2000, public release, does not accurately describe the combination of human factors which caused the mishap. The result is potentially more of the causal factors being attributed to the pilot than 'human factors' would warrant. Consequently, the committee encourages the Commandant of the Marine Corps to continue to work with the committee to further clarify Marine Corps public statements about the April 8, 2000, MV22 mishap at Marana Northwest Regional Airport, Arizona, so that media reporting of the accident more accurately portrays the causal factors of the accident. Page 10 (report, part 2) Section 124 would authorize the Navy to enter a multiyear contract beginning in fiscal year 2013 to purchase V22 aircraft for the Marine Corps, the Air Force, and the U.S. Special Operations Command. In 2012, the Navy will order the last of five lots of the tiltrotor aircraft under a multiyear contract that began in 2008. Under the subsequent multiyear contract that would be authorized by this section, CBO estimates that the Navy would buy 91 aircraft for the Marines and seven aircraft for the Air Force and Special Operations Command over the 20132017 period at a cost of $8.3 billion. Appropriations were provided in 2012 for costreduction initiatives, so no cancellation costs are anticipated for the contract. The Navy estimates that a single multiyear contract would cost $852 million less than five annual contracts.

Senate Defense Authorization Bill


June 6 The Senate Armed Services Committee releases its mark of the fiscal 2013 defense authorization bill. NET DIFFERENCE, FUNDING: NO CHANGE NET DIFFERENCE, PROCUREMENT: NO CHANGE RELEVANT LANGUAGE IN BILL AND REPORT: Page 47 (bill) SEC. 151. MULTIYEAR PROCUREMENT AUTHORITY FOR V22 JOINT AIRCRAFT PROGRAM. (a) AUTHORITY FOR MULTIYEAR PROCUREMENT. Subject to section 2306b of title 10, United States Code, the Secretary of the Navy may enter into a multiyear

contract or contracts, beginning with the fiscal year 2013 program year, for the procurement of V22 aircraft for the Department of the Navy, the Department of the Air Force, and the United States Special Operations Command. (b) CONDITION FOR OUT-YEAR CONTRACT PAYMENTS.A contract entered into under subsection (a) shall provide that any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2013 is subject to the availability of appropriations for that purpose for such later fiscal year.

DATE: July 26 LOCATION: Pentagon Briefing Room, Arlington, Va. EVENT: Press briefing SPEAKER: George Little, Pentagon Press Secretary SUBJECT: Safety of V-22 and deployment to Japan COMMENTS: Q: (Off mic) -- low-flying -- low-altitude flight routes for the trainings for Osprey? And why is this low-altitude flight training necessary? LITTLE: Look, we stand by the safety record of the V-22. The Osprey is a very important part of our fleet. I've addressed this on several occasions already. Q: Is it -- is it possible that the department would postpone this -- the training routes in Japan like it did in New Mexico because of opposition from local residents? LITTLE: I am not aware of any changes to our V-22 training missions, but if that changes, I'll let you know. DATE: July 21 LOCATION: Tokyo, Japan EVENT: Press briefing SPEAKER: Deputy Secretary of Defense Ashton B. Carter SUBJECT: Safety of V-22 and deployment to Japan COMMENTS: The safety of aircraft is a great concern to me, and a great responsibility of mine. I take it very seriously, and I think the Government of Japan and the people of Japan also take it very seriously. I think that's entirely appropriate. And we are committed to providing your airworthiness experts with all of the data and all of the information about the entire flight history of the V-22, including the two recent incidents, and allowing them to analyze that data and take every step they need to make to reconfirm the airworthiness of that airplane. And the two governments have agreed that flight operations will not begin until reconfirmation has taken place. DATE: June 21 LOCATION: Pentagon Briefing Room, Arlington, Va. EVENT: Press briefing SPEAKER: George Little, Pentagon Press Secretary SUBJECT: Safety of V-22 and deployment to Japan

COMMENTS: On a different topic, many of you have had recent interest in V- 22 deployments to the Asia-Pacific region. The Department of Defense tomorrow will brief a Japanese delegation here at the Pentagon on the recent events involving the MV(-22) and CV-22 Osprey aircraft. This is a tangible demonstration of how seriously the department of Defense takes the issue and inquiries made by the government of Japan on this matter. The briefing will be led by senior DOD military and civilian officials. It will provide information surrounding the June 13 mishap of an Air Force CV-22 in Florida, as well as a status update on the investigation process, which the department has committed to completing in a comprehensive and timely manner. Representatives from Eglin Air Force base will participate in this briefing. The briefing will also summarize the results of the initial investigation into the Marine Corps MV-22 mishap in April, which determined the incident was not caused by a mechanical failure. DATE: March 27 LOCATION: 2118 Rayburn House Office Building, Washington, D.C. EVENT: Hearing of the Tactical Air and Land Forces Subcommittee of the House Armed Services Committee SPEAKER: Maj. Gen. Robert Kane, Director of Global Reach Programs, U.S. Air Force SUBJECT: Improvements to CV-22 COMMENTS: Under the current fiscal constraints, it is important to note that the CV-22's capabilities, reliability and availability are increasing while operating costs are decreasing. Future modifications and improvements to the CV-22 will make the aircraft even more effective, reliable, and cost efficient. For example, we have begun CV-22 Block 20 baseline production as well as retrofit modifications to improve operational safety and effectiveness. Notably, these enhancements will improve line of sight and beyond line of sight communication systems, terrain and crew situational awareness capabilities, and defensive systems.

REPLACES: The Marine Corps classifies the Bell-Boeing MV-22 Osprey tiltrotor aircraft as a medium-lift helicopter that will ultimately replace the Boeing CH-46 Sea Knight tandem-rotor transport helicopter and Sikorsky CH-53D Sea Stallion, which are nearing the ends of their services lives. The Air Force variant, the CV-22, replaces the MH-53J and Sikorsky MH-60G Pave Hawk helicopters in performing missions for U.S. Special Operations Command. ROLE: The V-22 basically does the work of the CH-46: its job is to transport troops, supplies and equipment and provide assault transport regardless of the conditions or time of day. The V-22, however, has numerous key differences from the CH-46, aside from its appearance. UNIQUE FEATURES AND ABILITIES: The V-22's tiltrotor abilities allows the crew to transition the aircraft from vertical lift to a propeller-driven plane mid-flight, and vice versa. This permits the MV-22 to achieve speeds of 240 knots (276 miles per hour) and the CV-22 to reach 230 knots (265 mph),i compared to the CH-46, which has a maximum speed of 144 knots (166 mph).ii The CH-46 has a maximum ferry range the distance the aircraft can fly

without refueling of 620 nautical miles, whereas the V-22 has a maximum range of about 2,100 nautical miles.iii The aircraft also offers a little bit more in terms of payload: The V-22 can lift 8,300 pounds of cargo for shorter trips (220 nautical miles), while the CH-46 carries up to 6,000 pounds a number that is, however, comparable to the V-22 at longer ranges.iv ARMAMENT: The V-22 has a ramp-mounted M240G 7.62mm machine gun, which has been used heavily in the field. There is also an optional plug-and-play belly mounted GAU-17 7.62 mm minigun weapons kit developed by BAE Systems and bought by U.S. Special Operations Command in 2008 that provides 360-degree coverage. But, so far, troops have been reluctant to use the gun (see Outstanding Issues for more information). TOTAL BUYS/DELIVERIES: Overall, the Defense Department plans to purchase 458 V-22s: 360 MV-22 Marine Corps variants, 50 CV-22 Air Force variants and 48 HV-22 Navy variants. As of July, the program had delivered 178 Marine Corps and Air Force variants, with about three or four aircraft being delivered per month, according to the program manager.v The Navy has not decided on a role for its variants nor does the service have a timetable on when it will start purchasing the aircraft. UPCOMING MILESTONES: None. SPECSvi: Powerplant: Two Rolls Royce AE1107C turboshaft engines Rotor System: 3 blades per hub, 2 hubs, graphite/fiberglass construction, 38 feet in diameter, automatic blade-folding Performance: 250 nautical miles per hour, max rate of climb of 3,200 feet per minute, service ceiling of 25,000 feet (at 47,000 pounds) Range: 390 nautical miles (unrefueled mission radius with 24 troops), 2,100 nautical miles self-deployment with refueling Crew: 2-3 crew seats in the cockpit, room for 1 crew chief and 24 troops in the cabin Dimensions: Internal 20.8 feet (length) by 5.7 feet (width) by 5.5 feet (height); External 57.33 feet (length), 84.6 feet (width, with rotors turning), 22.1 feet (height, with nacelles fully vertical) Weight: Max vertical takeoff: 52,600 pounds; Max short takeoff: 57,000 pounds Fuel Capacity: MV-22: 1,721 gallons; CV-22 2,037 gallons Sensors, Radios, Datalinks, and SATCOM information: The V-22 has internal and external radio control and intercommunications using VHF/UHF radio communication, SATCOM and IFF (Interrogation Friend or Foe). It uses inertial navigation sensors and radio navigation sensors to provide primary navigation data, including position, heading, altitude, and other information. It has an optional enhanced suite that can include Terrain Following/Terrain Avoidance (TF/TA) Multimode Radar and Traffic Collision Avoidance System (TCAS). The aircraft has an electronic warfare suite that alerts the crew of missiles, radars and laser

signals, as well as dispensers for expendable countermeasures and an optional enhanced suite for active jamming systems.vii Misc. Architecture: The V-22 has a dual digital map that provides real-time, color, moving map imagery on multi-function displays that can be operated independently by two operators. Multiple overlay options are available.

DATE: Nov. 14, 11:30 a.m. EVENT: IDGA's Military Aviation Summit LOCATION: Jacksonville, Fla. SPEAKER: Lt. Col. Jason "Rainman" Maddocks, Integrated Product Team Lead, V-22 Program Office SESSION: "Examining the Versatility of the MV-22 -- Understanding the advantages of the capability of the MV- 22 to operate both as a helicopter or a turboprop aircraft -- Detailing the advantages of the MV-22 over its predecessor, the CH-46E -- Highlighting how the MV-22 is fulfilling the needs of todays Marine Corps and Air Force special operations" DATE: Jan. 23-24, 2013 EVENT: IDGA's International Military Helicopter LOCATION: London, UK SPEAKER: Marine Corps Maj. Gen. Jon M. Davis, commander, 2nd Marine Aircraft Wing (includes Marine Aircraft Groups 26 and 40, which include MV-22 squadrons) SESSION: Unknown

Test/milestone event Acquisition event Mishap event Miscellaneous event May 3, 1977 Bell Helicopter's experimental test pilots fly the XV-15, the precursor to the V22, for the very first time in both hover and low-speed flight mode.viii April 25, 1980 -- Operation Eagle Claw, the military effort to end the Iranian hostage crisis by rescuing 52 Americans held captive at the U.S. Embassy in Tehran, fails dramatically after a number of mishaps involving the Marine Corps RH-53D helicopters used to transport the U.S.

Army Delta Force rescue team. The incident caused Defense Department officials to realize they needed something better than conventional helicopters and fixed-wing transport aircraft, so they begin a search for an aircraft that could combine the speed and range of a turboprop plane and the agility of a helicopter.ix June 5, 1981 Navy Secretary John Lehman sees the XV-15 fly at the Paris Air Show. Intrigued, he asks to ride in the aircraft, but NASA, which owned the aircraft, turned him down on the grounds that no one other than test pilots were allowed to fly in it.x December 30, 1981 Deputy Secretary of Defense Frank Carlucci establishes the Joint Service Advanced Rotor Wing development program, dubbed JVX.xi June 7, 1982 -- Bell Helicopter and Boeing Vertol announce they will team up to propose a tiltrotor aircraft for the JVX competition. Aug. 5, 1982 -- The XV-15 wraps up the first shipboard demonstration tests aboard the amphibious ship Tripoli (LPH-10) off the coast of California. April 26, 1983 NAVAIR awards the Bell-Boeing team a contract to begin preliminary design of the aircraft. The plan called for the procurement of 1,086 of the aircraft to be built for the three services at a cost of $25 billion, with the Navy shouldering half of that cost.xii June 8, 1984 -- NAVAIR awards the Bell-Boeing team a contract for the second stage of the JVX preliminary design. Jan. 15, 1985 -- Lehman announces that the winner of the JVX competition will be dubbed the "Osprey." May 2, 1986 -- NAVAIR awards Bell-Boeing a seven-year contract for full-scale development of the V-22. June 1986 -- NAVAIR awards a new fixed-price contract to Bell-Boeing for the first three production lots of 228 aircraft. Dec. 18, 1986 The Pentagon signs off on full-scale development of the Osprey. Oct. 22, 1987 -- The XV-15 is grounded after cracks are discovered in the skins of two proprotor blades. Nov. 13, 1987 -- The XV-15 has first hover flight with new composite proprotor blades. Nov. 18, 1987 -- The Army withdraws from the program. May 23, 1988 -- Bell holds V-22 roll-out ceremonies at the Dryden Flight Research Center in Edwards Air Force Base, Calif. March 19, 1989 -- A V-22 aircraft flies for the first time. April 19, 1989 -- DOD budget is revised for fiscal 1990, all V-22 funding eliminated.

Sept. 14, 1989 -- The first V-22 conducts first conversion to airplane mode. Dec. 1, 1989 -- Deputy Secretary of Defense Donald Atwood instructs the Navy Secretary to terminate all fiscal 1989 advanced procurement contracts in bid to kill V-22 program. February 1990 -- DOD asks for no V-22 funds in fiscal 1991 budget submission. March 7, 1990 -- The General Accounting Office (later named the Government Accountability Office) says the Defense Department acted improperly in terminating V-22 contracts. Dec. 7, 1990 -- The V-22 wraps up sea trials aboard the amphibious ship USS Wasp (LHD-1). Feb. 4, 1991 -- The fiscal 1992 budget submission again eliminates V-22 funding. June 11, 1991 -- V-22 aircraft No. 5 crashes in Wilmington, Del. DOD suspends the test program. Sept. 6, 1991 -- An XV-15 experiences a failure of the composite blade cuff retention, resulting in an emergency landing. Sept. 10, 1991 -- V-22 full-scale development flight tests resume. Nov. 22, 1991 -- Congress submits fiscal 1992 National Authorization and Appropriations Bills, which allocate $790 million to the V-22 program despite no request from DOD for any funding. The funding included $15 million for a special operations variant of the Osprey. The president would sign the legislation into law four days later. February 1992 -- The fiscal 1993 DOD budget submission once again provides no funding for the V-22 program. July 20, 1992 -- V-22 aircraft No. 4 crashes into the Potomac River while transiting from Eglin Air Force Base in Florida to Quantico Marine Corps Air Station near Washington, D.C. The incident prompts DOD to suspend all flight tests again. A subsequent investigation blames the crash on a mechanical problem that was fixable, and not due to any fundamental design flaws. Aug. 20, 1992 -- An XV-15 crashes in Arlington, Texas, due to a bolt coming loose. May 18, 1993 -- NAVAIR clears the V-22 to resume flight tests. Dec. 9, 1994 -- Defense Secretary William Perry announces that the Marine Corps and Special Operations Forces will receive V-22s, with low-rate initial production taking place from 1996 through 2001. February 1997 -- Bell-Boeing receives a low-rate initial production contract for 23 Marine Corps MV-22s.

February 1997 -- Bell-Boeing flies a V-22 EMD (engineering, manufacturing and development) aircraft for the first time. May 14, 1999 -- The Marine Corps receives the first production V-22. October 1999 -- Operational evaluation (OPEVAL) testing begins.xiii August 2000 -- OPEVAL concludes. April 8, 2000 -- An Osprey crashes near Tucson, Ariz., during a non-combatant evacuation exercise, killing all four crew members and 15 passengers. A subsequent investigation determined that the pilot had descended too quickly and beyond the recommendations for the aircraft. The incident leads to a two-month suspension in flight tests. Oct. 13, 2000 -- Navy declares MV-22 operationally effective and suitable for land-based operations. Nov. 15, 2000 -- Marine Corps announces that the MV-22 had successfully completed sea trails, and the aircraft is operationally effective and suitable for sea-based operations. Dec. 11, 2000 -- The program experiences another fatal crash, this time near Jacksonville, N.C., killing four Marines on board -- the fourth V-22 crash since 1991 and the third with a fatality. The crash investigation that followed determined that a burst hydraulic line and a software malfunction were to blame, and the Marine Corps recommended a redesign for those systems. Jan. 20, 2001 -- The Marine Corps relieves a V-22 squadron commander of command for allegedly falsifying maintenance records. The Marines found out about it after someone anonymously sent a letter to the media in December of 2000 claiming to be a mechanic in the Osprey program and providing audio of the squadron commander allegedly telling maintenance personnel to lie about the aircraft. April 19, 2001 -- Defense Secretary William Cohen calls together a panel to decide on the way forward for the V-22. The panel recommends that the program be kept, but restructured, due to the multitude of reported problems with the program, particularly in the areas of safety, training and reliability. The panel also recommended slashing production to the bone until problems can be fixed. June 27, 2001 -- New Defense Secretary Donald Rumsfeld requests 12 Ospreys in his proposed amendment to the fiscal 2002 budget, arguing that this would allow them to sustain the V-22 subcontractor base while the program works out problems with the aircraft. Nov. 6, 2001 -- A NASA review of the V-22 program determines that the aeromechanics of the aircraft are sound. May 29, 2002 -- The MV-22 conducts its first test flight, a little later than planned due to some necessary mechanical adjustments. Sept. 11, 2002 -- The CV-22 resumes flight tests.

Aug. 4, 2003 -- The V-22 experiences a hydraulics failure due to a mis-installed clamp. Sept. 5, 2003 -- The V-22 experiences another hydraulics failure. April 6, 2004 -- An Air Force official acknowledges at a conference that the CV-22 is six months behind schedule.xiv June 2004 A V-22 is forced to make an emergency landing twice, with one of them resulting in a "Class B" mishap, which is defined as a mishap causing between $200,000 and $1 million in damage. A subsequent investigation blames the mishap on an engine component that needs replacing every 100 hours. February-March 2005 -- MV-22s conduct landing operations aboard the amphibious ship USS Kearsarge (LHD-3) to qualify 23 Marine Corps pilots from the test and evaluation squadron.xv Sept. 28, 2005 -- DOD's Defense Acquisition Board approves the V-22 for full-rate production after a production readiness review.xvi October 2005 A V-22 is damaged in flight due to icing. March 2006 A V-22 takes off inadvertently, causing wing and engine damage that exceeded $1 million, meeting the definition of a Class A mishap. Dec. 7, 2006 An engine fire results in another Class A mishap for a V-22, resulting in greater than $1 million in damage. February 2007 The Marine Corps grounds all MV-22s after discovering that a bad computer chip can cause in-flight failure of the controls. June 13, 2007 The Marine Corps declares that the MV-22 has achieve initial operational capability (IOC).xvii September 2007 A squadron of MV-22s deploys for the first time to support Marines in alAnbar province in Iraq. The 10 MV-22s are shipped to theater aboard the amphibious ship USS Wasp (LHD-1). March 28, 2008 The Pentagon signs the first multiyear deal with Bell-Boeing, a five-year contract worth $10.4 billion, which would cover 167 aircraft later increased to 174 including 141 MV-22s and 26 CV-22s.xviii March 6, 2009 The Air Force declares that the CV-22 has achieved initial operational capability (IOC).xix May 15, 2009 -- Ten Ospreys embark aboard the amphibious ship USS Bataan (LHD-5) as part of the 22nd Marine Expeditionary Unit, the first at-sea deployment of the aircraft.xx November 2009 MV-22s arrive in Afghanistan for the first time. They are the first to use the belly mounted interim weapon system in addition to the standard ramp gun.

Feb. 19, 2010 -- A Marine Corps official tells reporters at the Pentagon that the service would send two V-22s to Afghanistan to supplement the 10 aircraft already in theater within days.xxi April 9, 2010 A CV-22 crashes near Qalat, Afghanistan, killing four and injuring 16 others. An Air Force investigation blames the crash on a combination of inclement weather and crew errors.xxii Aug. 4, 2011 -- Bell-Boeing announces they've submitted their proposal to the Navy for a second multiyear contract, which would cover 98 aircraft between fiscal 2013 and 2017.xxiii Sept. 6, 2011 -- Pentagon Comptroller Robert Hale sends the congressional defense committees a request to reprogram $4.8 million to provide traffic collision avoidance systems for MV-22s to prevent collisions with other aircraft.xxiv March 25, 2012 -- An MV-22 makes a hard landing at night in southern Afghanistan, causing damage but resulting in no injuries.xxv April 10, 2012 An MV-22 crashes during an annual exercise in Morocco, killing two. The accident is currently under investigation. April 2012 -- The House Armed Services tactical air and land forces subcommittee grants the Navy's request for a V-22 multiyear deal covering 98 aircraft between fiscal 2013 and 2017.xxvi June 6, 2012 A V-22 conducts a simulated casualty evacuation mission aboard the ballistic missile submarine USS Maryland (SSBN-738). The aircraft flew from New Mexico to the sub's location just of the coast of Georgia, lowered and raised a hoist, and returned to New Mexico. June 13, 2012 -- Another CV-22 crashes near Eglin Air Force Base in Florida and is found upside down with heavy damage. The crash injured five, and the incident is under investigation.xxvii

2012
June 21 - $74.4 million Bell Boeing Joint Project Office, Amarillo, Texas, is being awarded a $74,399,436 modification to a previously awarded fixed-price-incentive-fee V-22 multi-year production contract

(N00019-07-C-0001) to provide one additional CV-22 combat loss replacement aircraft for the Air Force. March 30 - $150.9 million, $28.8 million Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $150,920,770 firm-fixed-price contract to procure V-22 AE1107C turboshaft engines for the Navy (232) and the Air Force (33). ... This contract combines purchases for the Navy ($129,360,660) and the Air Force ($21,560,110). Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $28,846,120 fixed-priceincentive, cost-plus-fixed-fee delivery order against a previously issued basic ordering agreement (N00019-12-G-0006) to provide a new V-22 instrumented aircraft (NVIA). The NVIA will support V-22 structural test capability by replacing an existing engineering, manufacturing, and development test aircraft which is increasingly difficult and expensive to support and not representative of current production configuration. Additionally, the NVIA will support the V-22 development roadmap through improved, comprehensive flight test data with increased reliability/maintainability over existing aircraft. Feb. 2 - $55.4 million Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $55,406,826 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) to exercise an option for maintenance services in support of the V-22 AE1107C turboshaft engines. Jan. 18 - $7.3 million Bell Boeing Joint Project Office, Amarillo, Texas, is being awarded a $7,283,403 modification to a previously awarded fixed-price-incentive-fee V-22 multi-year production contract (N00019-07-C-0001) to provide for production line preparation and production incorporation of unique identification marked parts for MV and CV Lot 16 aircraft.

2011
Dec. 29 - $72.9 million, $34.4 million, 33.3 million Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $72,928,060 advance acquisition contract for long lead components required for the manufacture and delivery of 17 (fiscal 2013) Lot 17 MV-22 tiltrotor aircraft for the Marine Corps and four (fiscal 2013) Lot 17 CV-22 tiltrotor aircraft for the Air Force. Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $34,445,395 modification to a cost-plus-fixed-fee delivery order placed previously against basic ordering agreement (N00019-07-G-0008) for engineering and technical support for V-22 flight control system and on-aircraft avionics software for 2012 for the Navy and Air Force.

Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $33,343,681 cost-plusfixed-fee delivery order against a previously issued basic ordering agreement (N00019-07-G0008) for non-recurring efforts and flight test aircraft modifications for the Joint and Allied Threat Awareness System and Radar Warning Receiver (APR-39D(V)X) integration in support of the MV-22B Osprey aircraft. Dec. 27 - $30.2 million Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $30,221,470 fixed-priceincentive, cost-plus-fixed-fee order against a previously issued basic ordering agreement (N00019-07-G-0008) for non-recurring engineering and testing efforts for the redesigned midwing avionic units in support of the CV-22 and MV-22 aircraft. The mid-wing avionic units include the vibration structural life and engine diagnostics airborne unit, the fuel management unit, and the drive system interface unit. Dec. 22 - $12.4 million Bell-Boeing Joint Project Office, Amarillo Texas, is being awarded $12,416,548 for delivery order 0016 under previously awarded cost-plus-fixed-fee contract (N00383-10-D-003N) for the repair of various components for the V-22 aircraft. Dec. 12 - $37.6 million Bell-Boeing Joint Project Office, Amarillo Texas, is being awarded $37,582,267 for delivery order 0015 under previously awarded cost- plus-fixed-fee contract (N00383-10-D-003N) for the repair of various components for the V-22 aircraft. Nov. 30 - $15.6 million, $11.5 million, $10 million Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $15,634,738 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) to exercise an option for maintenance services in support of the V-22 AE1107C turboshaft engines. The Science Applications International Corp., San Diego, Calif., is being awarded an $11,548,967 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contract to provide Comprehensive Automated Maintenance Environment, Optimized (CAMEO) system and software engineering support services in support of a range of Department of Defense programs, including the V-22 Osprey. Work will include software integration and test, product validation/verification analyses, product integration and release, and training. This three-year contract includes one, two-year option, which, if exercised, would bring the potential value of this contract to $18,968,584. Sierracin-Sylmar Corp., Sylmar, Calif., is being awarded $10,001,687 for delivery order #5002 against a previously issued basic ordering agreement (N00383-11-G-011F) to manufacture V22 Osprey windshields. Nov. 29 - $12 million

Moog, Inc., East Aurora, N.Y., is being awarded a $12,001,770 firm-fixed-price order 7038 against a previously issued basic ordering agreement (N00383-09-G-002D) to repair the swashplate actuator for the V-22 aircraft. Nov. 17 - $13.7 million Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $13,735,723 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) to exercise an option for maintenance services in support of the V-22 AE1107C turboshaft engines. Nov. 14 - $10.4 million Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $10,409,837 modification to a delivery order placed previously against basic ordering agreement (N00019-07-G-0008) for the procurement of 40 central de-ice distributor and 44 nacelle ice protection controller unit retrofit kits for the V-22 Ice Protection System. Nov. 9 - $7 million Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $7,049,944 firm-fixedprice delivery order against a previously issued basic ordering agreement (N00019-07-G0008) for the Block 20/C upgrade to the CV-22 to include co-site communications; multimission advanced tactical terminal replacement; standby flight instrument; global positioning system repeater system; parking brake light; and environmental control system upgrades. Oct. 13 - $16.8 million Robertson Fuel Systems, L.L.C., Tempe, Ariz., is being awarded a $16,754,932 modification to a previously awarded firm-fixed price indefinite-delivery/indefinite-quantity contract (N00019-08-D-0009) for the procurement of 24 mission auxiliary fuel tank systems and related hardware for the V-22 aircraft. Sept. 20 - $97.2 million Hensel Phelps Granite Hangar, J.V., Irvine, Calif., is being awarded a $97,222,000 firm-fixedprice contract for the design and construction of an MV-22 aircraft parking apron/taxiway expansion; an Aircraft Maintenance Hangar 4 addition; and Aircraft Maintenance Hangar 7 construction at Marine Corps Air Station Miramar. The work to be performed provides for the construction and/or renovation of airfield facilities to enable the operation of both the MV-22 (medium lift) aircraft as well as the CH-53 (heavy-lift) helicopter. Specifically, the facilities will accommodate and maintain the MV-22 squadrons; conduct readiness and training operations; and conduct special exercise operations to attain and maintain proficiency in the operational employment of the MV-22. The contract also contains two planned modifications, which, if issued, would increase cumulative contract value to $103,602,000. Sept. 15 - $8.7 million Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded an $8,713,282 modification to a previously awarded cost-plus-fixed-fee contract (N00019-08-C-0025) for non-recurring

efforts associated with increment three of the CV-22 aircraft Block 20 upgrade program. Efforts to be provided include concept definition, non-recurring engineering, drawings, and installation/integration to design, develop, and test the enhanced helmet mounted display upgrade. Aug. 8 - $34.2 million Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $34,186,000 delivery order against a previously issued basic ordering agreement (N00019-07-G-0008) for the Block 20/C Upgrade to the CV-22 Training Devices, including the Cabin Operational Flight Trainer (COFT), Cabin Part Task Trainer, and the Wing Part Task Trainer. Source: Defense Department daily contract announcements

Readiness The V-22 program has struggled to meet its requirement of 82 percent availability. Program Manager Col. Greg Masiello told Inside the Navy in September 2010 that deployed squadrons were near about 70 percent availability, but the entire fleet combined was in the 50th percentile.1 In January 2012, the Defense Department's director of operational test and evaluation said that from June 2007 through May 2010, the V-22 averaged a mission-capable rate of just 53 percent.xxviii Voice Recorders The V-22 still doesn't have voice recorders in the cockpit, a requirement that Congress set more than a decade ago. The issue came to a forefront after a CV-22 crashed in Afghanistan in 2010. A general leading the probe said having those voice recordings would have made the investigation a "slam dunk." However, the Marines say implementing the multi-million-dollar project will take years.xxix Safety Concerns Despite the fact that the V-22 is now deployed, concerns remain about the aircraft's safety due to its long history of fatal crashes. The Marines claim the V-22 has a Class A mishap rate of just 1.28 per 100,000 flight hours in the last decade, compared to a 2.6 rate for other Marine aircraft. However, a Wired article in October 2011 questioned this figure, arguing that the Marines had reclassified Class A mishaps from $1 million to $2 million, that the Marines are responsible for keeping track of Osprey accidents, and that their figure doesn't include the
1 Taylor, Dan. InsideDefense.com. "Deployed V-22 Availability Hovers at 70 Percent; Fleet-Wide in the 50s." Sept. 3, 2010. (Link, paywall)

CV-22, which has had several crashes in recent years -- and months all factors that would increase that rate far above the average mishap rate.xxx Price Tag The Osprey is still very expensive, at around $100 million per aircraft, including developmental costs. But the V-22 continues to defy those who wish to cut it. Although the Pentagon scaled back buys over the next five years by 24 aircraft, those airframes were simply pushed to the right.xxxi The total buy remains the same, and the Marines say they have no intention of changing it. Belly Gun Responding to concerns about the aircraft being underarmed with just a .30-caliber M240 ramp gun, the Marine Corps decided to seek a gun mounted on the aircraft's belly that could provide better coverage. In 2008, the Marines opted to purchase 12 interim weapon systems from BAE Systems that could be plugged into the aircraft as needed.xxxii However, the gun has seen limited use in theater as troops in the field have been reluctant to give up space on the aircraft in order to accommodate the gun.xxxiii And in July 2012, Col. Masiello told Inside the Navy the Marines hadn't used the gun at all so far, even as troops were heavily using the ramp gun.xxxiv HV-22s Although the program of record calls for the Navy to buy 48 HV-22s, the sea service still hasn't even decided how it will use the aircraft and does not plan to buy it anytime soon. The upcoming second multiyear procurement deal with Bell-Boeing, which would cover fiscal 2013 through 2017, doesn't include any HV-22s. The most likely option for the Navy is to use the aircraft as a Carrier On-Board Delivery (COD) aircraft to replace aging C-2 Greyhound cargo aircraft. The analysis of alternatives for that replacement is ongoing, and the V-22 remains an option.

NAVY/MARINE CORPS MV-22s (in fiscal 2012 dollars)

AIR FORCE CV-22s (in fiscal 2012 dollars)

Source: Navy/Air Force budget proposals, fiscal 1999-2013 NOTE: The unit cost in this section is determined by dividing the total program cost by the number of units, as listed in the Defense Department's budget justification documents, to determine how much money on average the Pentagon spends for a single unit. This figure may differ from official estimates by the government and the manufacturer, and the price may be different for an international customer due to a lack of sunk investment and the fact that the buyer may request more or fewer features than DOD.

To date, there have been no international sales of the V-22. However, Jane's Defence Weekly reported in June of 2010 that Bell-Boeing has been in talks with countries such as Israel, the United Kingdom and Japan on potential future sales, and had responded to Canada's request for information for a search-and-rescue aircraft.xxxv

Bell-Boeing claimed "significant international interest" in the V-22 Osprey at the Dubai Airshow in the United Arab Emirates in November 2011, according to Inside the Navy, although the company declined to name any interested countries. Bell-Boeing noted that the V-22 is available for export and the company works with the U.S. government in responding to international inquiries.xxxvi Likewise, the Navy itself has sought out foreign interest in the V-22, and sent four aircraft to the Farnborough International Airshow in the United Kingdom in July 2012, V-22 Program Manager Col. Greg Masiello told Inside the Navy. A Bell-Boeing spokesman also said the company has been arranging follow-up visits with some unnamed nations.xxxvii

ORGANIZATIONAL STRUCTURE: The V-22 program office (PMA-275) is located at Naval Air Station Patuxent River, Md., within the program executive office for tactical aircraft programs (PEO-T). It falls under the management and oversight of both Naval Air Systems Command and the Assistant Secretary of the Navy for Research, Development and Acquisition, as depicted by the chart below: GOVERNMENT PROGRAM CONTACTS: Program Manager: Col. Greg Masiello Contracting Office Address: Building 2272, 47123 Buse Road Unit IPT, Patuxent River, Maryland 20670, United States Contract Specialistsxxxviii: Michael A. Harris, michael.a.harris2@navy.mil, Phone: 301-342-8243, Fax: 301-757-5284 Dana C. Veitch, dana.veitch-schropp@navy.mil, Phone: 301-757-5301, Fax: 301-757-5284 Public Affairs: James O'Donnell, james.c.odonnell@navy.mil, Phone: 301-995-7909 CONTRACTOR/SUBCONTRACTOR INFORMATION: Bell-Boeing V-22 Factory Location and Contact Info: 401 Tiltrotor Drive, Amarillo, Texas 79111, United States Phone: 806-341-3705, Fax: 806-341-3711 List of contractors involved in the V-22 programxxxix: Bell Helicopter: Prime Boeing: Prime Rolls-Royce: Engines Northrop Grumman: Directional Infrared Countermeasures (DIRCM) system Raytheon: Forward-looking infrared (FLIR) systems, mission planning systems, maintenance systems

BAE Systems: Flight control system ITT Exelis: AN/ALQ-211 electronic warfare systems EFW: Digital maps, multi-function displays, digital electronic units Engineering Fabrics: Fuel cells General Dynamics: Mission computers Honeywell: Environmental control systems, infrared suppressors, heat exchangers, lightweight inertial navigation systems Moog: Flight control and vibration suppression actuators MRA: Structural components Smiths: Standby altimeter, rubber actuator, flight incident recorder, lighting controllers, forward cabin control station, transmission blowers Vought: Empennage (tail assembly), fiber placement skins

Federation of American Scientists. V-22 Osprey. (Link) Naval Historical Center. CH-46 and UH-46 SEA KNIGHT. (Link) iii Naval-Technology.com. V-22 Osprey, United States of America. (Link) iv GlobalSecurity.org. CH-46 Sea Knight [H-49] 'Phrog.' (Link) v Taylor, Dan. InsideDefense.com. Official: V-22 Operates Off Carrier, Performs Simulated CASEVAC On SSBN. July 20, 2012. (Link, paywall) vi Boeing. V-22 Osprey, Technical Specs. (Link) vii Bell Helicopter. V-22 Osprey Guidebook. 2011/2012 (Link) viii NASA. The History of the XV-15 Tilt Rotor Research Aircraft: From Concept to Flight. (Link) ix Thompson, Loren. Forbes.com. The Much-Maligned V-22 Osprey is Confounding Critics. April 4, 2011. (Link) x Whittle, Richard. "The Dream Machine: The Untold History of the Notorious V-22 Osprey." 2010. xi The Industrial College of the Armed Forces. Bureaucracies at War: The V-22 Osprey Program. 1992. (Link) xii All the World's Rotorcraft. Bell/Boeing-Vertol V-22 'Osprey' 1989. (Link) xiii Bolkcom, Christopher. Congressional Research Service. "V-22 Osprey Tilt-Rotor Aircraft." Jan. 7, 2005. (Link) xiv Cortes, Lorenzo. Defense Daily. "CV-22 Program Six Months Behind Schedule." April 6, 2004. (Link, paywall) xv GlobalSecurity.org. V-22 Osprey: History. (Link) xvi DefenseTech. "Osprey OK'd." Sept. 28, 2005. (Link) xvii Marine Corps Public Affairs. "Osprey Deemed Ready for Deployment." June 14, 2007. (Link) xviii Castelli, Christopher. InsideDefense.com. "Challenges Remain for V-22 Despite $10.4 Billion Multiyear Deal." April 3, 2008. (Link, paywall) xix Gertler, Jeremiah. Congressional Research Service. "V-22 Osprey Tilt-Rotor Aircraft: Background and Issues for Congress." March 10, 2011. (Link) xx Carpenter, Clark. Marine Corps Public Affairs. "22nd MEU supports OEF with Osprey transfer." Nov. 6, 2009. (Link) xxi Taylor, Dan. InsideDefense.com. "Additional V-22s Headed To Afghanistan; Squadron Afloat In CENTCOM." Feb. 22, 2010. (Link, paywall) xxii U.S. Air Force. "CV-22 accident investigation board results released." Dec. 17, 2010. (Link) xxiii Boeing. "Bell Boeing Submits V-22 Osprey Multiyear II Contract Proposal." Aug. 4, 2011. (Link) xxiv Castelli, Christopher. InsideDefense.com. "Pentagon Proposes Shifting Millions of Dollars to Boost V-22 Safety." Sept. 14, 2011. (Link, paywall) xxv Castelli, Christopher. InsideDefense.com. "Marine Corps MV-22 Osprey Crashes in Morocco, Killing Two." April 11, 2012. (Link, paywall) xxvi Taylor, Dan. InsideDefense.com. "House Panel Approves V-22, F/A-18E/F Multiyear Requests in Mark-Up." April 27, 2012. (Link, paywall) xxvii Kaczor, Bill. Fort Worth Star-Telegram. "Air Force V-22 crash in Florida injures 5." June 14, 2012. (Link) xxviii Taylor, Dan. InsideDefense.com. Navy: V-22 Achieved Fleet-Wide Reliability Rate of 59 Percent in FY-11. Feb. 10, 2012. (Link, paywall) xxix Castelli, Christopher. InsideDefense.com. "DOD Plan Would Take Years to Equip V-22s With Needed Voice Recorders." July 18, 2012. (Link, paywall) xxx Axe, David. Wired. "Osprey Down: Marines Shift Story on Controversial Warplanes Safety Record." Oct. 13, 2011. (Link) xxxi Pappalardo, Joe. Popular Mechanics. "The Osprey's Real Problem Isn't Safety - It's Money." June 14, 2012. (Link) xxxii Taylor, Dan. InsideDefense.com. "V-22 Tiltrotors to Start Getting Belly Mounted Guns Next Month." Oct. 27, 2008. (Link, paywall) xxxiii Taylor, Dan. InsideDefense.com. "Limited Use of V-22 Belly Gun in Theater; Marines Seek Better Integration." Aug. 13, 2010. (Link, paywall) xxxiv Taylor, Dan. InsideDefense.com. Official: V-22 Operates Off Carrier, Performs Simulated CASEVAC On SSBN. July 20, 2012. (Link, paywall) xxxv Gertler, Jeremiah. Congressional Research Service. "V-22 Osprey Tilt-Rotor Aircraft: Background and Issues for Congress." March 10, 2011. (Link) xxxvi Taylor, Dan. InsideDefense.com. "Bell-Boeing Claims High Interest in V-22 at Dubai Airshow." Dec. 2, 2011. (Link, paywall) xxxvii Taylor, Dan. InsideDefense.com. "Seeking International Buyers, Navy Sends Four V-22s to Farnborough ." July 20, 2012. (Link, paywall) xxxviii FedBizOpps.gov. "Engineering Change Proposal (ECP) for the Gimbal Ring Joint redesign for the CV-22 tiltrotor aircraft." Dec. 12, 2011. (Link) xxxix Naval Air Systems Command. "V-22 Osprey 2010 Guidebook." June 8, 2010. (Link)
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