Boeing Lands $4.9 Billion V-22 Osprey Contract

Partially confirming media reports from Reuters that have been circulating over the past 48 hours, the Department of Defense announced Wednesday that it has awarded a $4.9 billion contract to the Bell-Boeing Joint Project Office. This is a joint venture between Boeing (NYSE: BA  ) and the Textron (NYSE: TXT  ) subsidiary, probably best known for manufacturing the V-22 Osprey tiltrotor aircraft.

Under the instant contract, the Pentagon is hiring Bell-Boeing to produce 92 MV-22 Osprey aircraft for the U.S. Marine Corps, and seven CV-22s for the U.S. Air Force, between now and September 2019. The contract, previously thought to be worth $6.5 billion to Bell-Boeing, will actually be for $4.9 billion, according to the Pentagon.

The V-22 Osprey, in its several variants, can take off and land vertically like a helicopter, but it travels twice as fast as a helicopter in horizontal flight. It also has greater range. The aircraft can carry 24 passengers, up to 10 tons of internal cargo, or up to 7.5 tons of external cargo carried in a sling -- or a combination of the above.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 13, 2013, at 7:51 AM, savage393 wrote:

    I can't believe they are still building these things. This aircraft has killed more Marines then Afghanistan. It is always blamed on pilot error, but this plane is dangerous. They have thrown billions at this program, and the aircraft are still going down. If I was a Marine, I wouldn't get on one on a bet.

  • Report this Comment On June 13, 2013, at 8:17 AM, mikealphamike wrote:

    That's probably why you aren't a Marine, savage393.

  • Report this Comment On June 13, 2013, at 8:19 AM, mikealphamike wrote:

    The CV-22 IS NOT a "carrier-variant." It is the Air Force model that is used by Air Force Special Operations Command that replaced their Special Ops MH-53s.

  • Report this Comment On June 13, 2013, at 11:41 AM, TMFDitty wrote:

    Thanks for pointing that out, MAM. Typing too fast ...

    We'll get that corrected.

    Rich

  • Report this Comment On June 13, 2013, at 6:49 PM, oldgeek1 wrote:

    This is a clear example of an concept that has proven itself to be unworkable, unreliable and ineffective. Has not been used extensively in combat since in production and is a poor substitute for a helicopter. The military has better use for the funding but I gather congressional and industry support trumps all.

    How many hours of combat has this seen in Iraq or Afgan.?

  • Report this Comment On June 14, 2013, at 6:24 AM, tiltrotors wrote:

    All incorrect. The Osprey has been used extensively in combat. You are going by dated info as the aircraft did have a troubled past. It now has the BEST safety record of any aircraft in the Marine inventory and is considered the 'aircraft of choice' in Afghanistan. The pilots of both the MV and CV-22 who I have spoken with ALL agree the last accidents were absolutely pilot error (prior to that it had gone through 10 years without an accident!!). See the recent US News and World Report article:

    http://www.usnews.com/news/articles/2013/03/29/the-v-22-ospr...

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