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$590M Osprey boost lands US Navy five more carrier lifelines

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The U.S. Navy has greenlit the production of five additional CMV-22B Osprey aircraft through a $590 million contract modification awarded to the Bell Boeing Joint Program Office in Amarillo, Texas.

New DOD ban on V-22 Osprey flights: no more than half an hour
Photo credit: PACOM

The deal, announced recently by the Department of Defense, modifies an existing agreement from 2017, expanding its scope to include the manufacturing and delivery of these tiltrotor planes designed for carrier onboard delivery missions.

With $132.1 million in fiscal 2024 funds allocated immediately, the Navy signals a firm commitment to bolstering its logistics fleet, though the Pentagon has not detailed whether this move taps a pre-existing option or marks a fresh order under the original contract.

Work on the aircraft, which blends helicopter versatility with airplane speed, is slated for completion by January 2028, reinforcing the Navy’s push to modernize its support operations.

This modification, labeled P00080, adjusts a prior contract identified as N0001917C0015, a fixed-price incentive deal that allows for some flexibility in final costs as specifics are ironed out.

The CMV-22B, a naval variant of the V-22 Osprey, is tailored to transport personnel, mail, and cargo between shore bases and aircraft carriers, replacing the aging C-2A Greyhound.

According to the Pentagon’s announcement, the funding comes from the Navy’s 2024 aircraft procurement budget, with the full $590 million expected to cover production at Bell Boeing’s facilities in Amarillo and other sites, including assembly lines in Pennsylvania.

The move underscores the Navy’s ongoing reliance on the Osprey platform despite its controversial history, marked by high-profile accidents and steep development costs.

The CMV-22B’s role in naval operations has grown increasingly vital since its introduction. Capable of carrying up to 6,000 pounds of cargo or 24 passengers, the aircraft offers a range of about 1,150 nautical miles, far outpacing the Greyhound’s capabilities.

Its vertical takeoff and landing ability allows it to operate in tight spaces, a critical advantage for resupplying carriers at sea. The Navy took delivery of its first CMV-22B in 2020, with plans to field a fleet of 44 by the mid-2030s, according to a Congressional Research Service report from last year.

This latest order brings the total number of aircraft under contract closer to that goal, though exact figures remain fluid as the program evolves.

Bell Boeing, a partnership between Bell Helicopter and Boeing Defense, Space & Security, has been the backbone of the V-22 program since its inception in the 1980s.

The Osprey, which first flew in 1989, faced decades of scrutiny over safety and expense before entering widespread service. The CMV-22B variant emerged from a 2015 decision to adapt the platform for Navy needs, with initial production contracts awarded shortly after.

The Pentagon’s latest announcement indicates that work will occur primarily in Texas, with additional efforts in Ridley Park, Pennsylvania, and Fort Worth, though it did not specify how the $590 million breaks down across these locations. A Bell Boeing spokesperson declined to comment beyond the official statement, directing inquiries to the Navy.

Military analysts see the order as a pragmatic step amid shifting defense priorities. “The Navy’s doubling down on the CMV-22B shows they’re serious about keeping carriers flexible and supplied,” said Peter Singer, a strategist at New America and author of books on modern warfare, in a phone interview.

Singer noted that Osprey’s unique design fills a gap left by retiring Greyhounds, which lacked the same range and adaptability.

However, he cautioned that the program’s cost—estimated at over $96 million per aircraft in recent years—could draw scrutiny as budget debates heat up in Washington. “It’s a capability boost, but it’s not cheap,” he added.

The Osprey’s track record has long been a point of contention. Since its operational debut with the Marine Corps in 2007, the V-22 has been involved in several fatal crashes, including a June 2022 incident in California that killed five Marines.

A Government Accountability Office report from 2021 flagged persistent maintenance challenges, noting that the aircraft’s complex mechanics drive up repair costs and downtime.

The Navy has defended the CMV-22B, arguing that lessons from earlier variants have improved reliability. Rear Adm. Andrew Loiselle, then-director of air warfare, told reporters in 2020 that the Osprey’s naval version incorporates upgrades to mitigate past issues, though he acknowledged that “no aircraft is risk-free.”

Financially, the $590 million modification reflects a significant investment, though it’s a fraction of the V-22 program’s lifetime cost, which exceeds $70 billion across all variants, per Pentagon estimates.

The immediate allocation of $132.1 million suggests production will ramp up quickly, with the remaining funds likely disbursed as milestones are met. Defense News reported last month that the Navy had budgeted $1.7 billion for aircraft procurement in 2024, meaning this deal consumes over a third of that pot.

Lawmakers, particularly on the House Armed Services Committee, have pressed the Pentagon to justify such expenditures as competing needs—like shipbuilding and missile defense—vie for dollars.

Operationally, the CMV-22B has already proven its worth. The Navy’s first squadron, VRM-30, began deploying the aircraft in 2021, supporting carriers like the USS Carl Vinson in the Pacific.

A naval aviator familiar with the program, speaking anonymously due to lack of authorization to comment publicly, said the Osprey’s ability to deliver engines and large components directly to flight decks has streamlined logistics.

“It’s a game-changer for keeping the carrier strike group moving,” the aviator said. The additional five aircraft will likely join squadrons on both coasts, enhancing coverage as the fleet expands.

Critics, however, question whether the Osprey remains the best fit. The C-2A Greyhound, while less versatile, was cheaper to operate and maintain, with a per-unit cost closer to $40 million in its later years. Some analysts argue that  drones or newer fixed-wing designs could eventually supplant the CMV-22B’s role at lower risk.

Eric Wertheim, a naval expert and author of the Combat Fleets of the World guide, told NPR last year that the Osprey’s complexity “keeps it in the crosshairs of budget hawks.” Still, the Navy’s decision to order more suggests confidence in its long-term value.

The broader V-22 program has seen steady demand beyond the Navy. The Marine Corps, the platform’s largest user, operates over 350 MV-22Bs, while the Air Force fields dozens of CV-22s for special operations. The CMV-22B, with its extended fuel tanks and carrier-specific modifications, is the smallest fleet but a linchpin for naval logistics.

A 2023 report from the Center for Naval Analyses projected that maintaining 44 Ospreys would cost the Navy $4.2 billion through 2040, factoring in fuel, parts, and training. This latest order aligns with that trajectory, locking in production through the end of the decade.

For Bell Boeing, the modification ensures a steady workflow at a time when defense contractors face uncertainty. The Amarillo plant, which handles final assembly, employs thousands, and the ripple effects extend to suppliers nationwide.

Boeing, grappling with commercial aviation woes, leans heavily on its defense arm, while Bell benefits from its niche in rotorcraft.

The companies have delivered over 400 V-22s across all variants, a milestone touted in a joint press release last year. This $590 million infusion keeps that momentum going, though analysts expect future orders to taper as the Navy nears its target fleet size.

Congress will likely keep a close eye on the deal. While the modification falls under an existing contract, its scale could prompt questions during budget reviews. Senator Jack Reed, chair of the Senate Armed Services Committee, warned in a February hearing that “every dollar spent on legacy systems is a dollar not spent on innovation.”

The CMV-22B, though modernized, traces its roots to a decades-old design, potentially fueling debate over its priority. Still, with funding already flowing, the Navy appears set to see this through.

As production gears up, the five new CMV-22Bs will join a fleet adapting to new threats and missions. The Navy’s carrier strike groups, deployed from the South China Sea to the Mediterranean, rely on seamless supply lines—exactly what these aircraft are built to secure.

By January 2028, when the last of this batch is due, the Osprey’s naval footprint will be that much larger, for better or worse. Whether that solidifies its legacy or reignites old controversies depends on how it performs in the years ahead. For now, the Navy’s bet on the CMV-22B is locked in, with Bell Boeing ready to deliver.

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