Navy Executes Second Year of $6.5 Billion Multi-Year Procurement Contract

By on Thursday, December 19th, 2013

The U.S. Navy on December 17, executed funding procurement for the second year of the V-22 multi-year procurement (MYPII) contract.

This action identifies full funding to Bell-Boeing for the second year of the V-22 MYPII contract and provides $1.3B for the procurement of 22 V-22 aircraft (3 Air Force CV-22s and 19 Marine Corps MV-22s), and Advance Procurement funds for 19 MV-22 aircraft to be fully funded in FY15.

This is the second year of the V-22 multi-year contract, which authorizes purchase of 100 V-22s over the next five years (FY 2013-2017). MYPII will procure 93 MV-22s for the Marine Corps and seven CV-22s to the Air Force.

“Since Initial Operating Capability in 2007, V-22s have been answering the nation’s call traveling into harm’s way. From combat operations in Iraq and Afghanistan to the recent disaster relief and humanitarian assistance in the Philippines, the V-22 continues to prove itself as a game-changing aircraft. Ospreys enable our Marine Corps and Air Force Special Operations to execute missions not possible with conventional aircraft. The V-22 has helped save lives where others could not.”

Robinson said the program office is very pleased to be able to execute this portion of the MYPII contract.

“In addition to providing V-22 production stability for these five years, the MYPII contract also saves taxpayer money with cost savings that wouldn’t be possible in repeating single-year contracts,” Robinson said.

“This multi-year contract provides nearly $1 billion in taxpayer savings and ensures a stable production line for the program to accommodate and engage other domestic and international partnership opportunities,” Robinson said.

There are currently 233 V-22 Ospreys in operation worldwide. V-22s have amassed more than 200,000 flight hours, with more than half of those logged in the past three years.

Navair awarded the MYPII contract in June 2013. The total contract value is approximately $6.5 billion and is expected to save approximately $1 billion compared to an annualized procurement.

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