I did read good things so far but doesn't seem a little quick?
U.S. nears $1 billion multiyear V-22 aircraft deal
Tue Feb 12, 2008 8:31pm EST
By Jim Wolf
WASHINGTON (Reuters) - The United States is close to agreeing to a $1 billion-plus multiyear contract for the revolutionary V-22 tilt-rotor transport aircraft built by Boeing Co (BA.N: Quote, Profile, Research) and Textron Inc's (TXT.N: Quote, Profile, Research) Bell Helicopter unit, a senior Navy official said on Tuesday.
"We're finalizing negotiations," William Balderson, who runs air programs for the Navy and Marine Corps, told Reuters in an interview.
The multiyear deal would cover purchases in fiscal 2008 through 2012 of the MV-22, the Marine Corps' version of the Osprey, a controversial hybrid that flies like an airplane but takes off and lands like a helicopter.
In development for over 25 years, the V-22 suffered three fatal flight tests before it was found suitable in 2005 for military use.
The Osprey is designed to replace the aging workhorse CH-46 Sea Knight helicopter. It can fly twice as fast at more than twice the altitude, with three times the payload and six times the range, according to the Navy.
A multiyear contract is good news for the contractors because it makes it easier for them to buy raw materials, streamline production and make hiring plans.
Production would reach 30 aircraft in fiscal 2009, which starts October 1, and would stay at that level through 2012 in a deal worth $1 billion to $1.1 billion, Balderson said after speaking to a defense-technology conference sponsored by Aviation Week magazine.
Earlier, Marine Corps commandant Gen. James Conway told the same session "the fact is we'd like to get a multiyear on the aircraft so that we complete our buy and save some money in the process over time."
Conway said the corps was trying to "suppress" news for now on performance of the V-22, which made its combat debut in Iraq in September.
"It's just that we don't want to overpromise and underdeliver," he said.
A total of 458 V-22s are expected to be built for the Marines, U.S. Air Force and U.S. Navy at an average unit cost of $110 million per aircraft.
The Air Force's version is due to start operating next year.
Link
http://www.reuters.com/article/reutersEdge/idUSGOR28078120080213