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The V-22 development process has been long and controversial,
partly due to its large cost increases. The V-22 development budget was first
planned for $2.5 billion in 1986, then increased to a projected $30 billion in
1988. As of 2008, $27 billion had been spent on the Osprey program and another
$27.2 billion will be required to complete planned production numbers by the end
of the program.V-22's] production costs are considerably greater than for
helicopters with equivalent capability—specifically, about twice as great as for
the CH-53E, which has a greater payload and an ability to carry heavy equipment
the V-22 cannot. An Osprey unit would cost around $60 million to produce, and
$35 million for the helicopter equivalent.




In June 2013, DoD awarded a $4.9 billion contract to Bell and Boeing for 99 V-22s in
production Lots 17 and 18, including 92 MV-22s for the Marine Corps. Work is
expected to be completed in September 2019. A provision gives NAVAIR the option
to order 23 more Ospreys. The contract awarded in June 2013, a contract awarded
in December 2012, and other ancillary contracts total $6.5 billion for the
99-Osprey order. In June 2013, a $60 million contract modification was awarded
to the Lot 17 order for one additional MV-22; the order totals 100 Ospreys, with
93 for the Marine Corps.

 


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