U.S. Navy weighing $8 billion contract with Textron and Boeing for Ospreys

August 5, 2011 at 1:45 pm | Posted in Aerospace Law Interfaces | Leave a comment

by Sara M. Langston with the blog faculty

Source: Bloomberg

The Navy is considering buying another 122 V-22 Ospreys from Textron Inc. (TXT) and Boeing Co. (BA) for about $8 billion.

The proposed contract, in its early stages, would supply the aircraft to the Marine Corps and Air Force through 2017 — renewing a current deal for five more years.

Textron of Providence, Rhode Island, and Chicago-based Boeing are in the last year of a four-year, $10.9 billion contract for 174 aircraft. Textron’s Bell Helicopter unit and Boeing have submitted a new request for proposals, officials said. The Navy declined to speculate on the potential value. At the current basic “flyaway” cost of $65 million apiece, the new contract could approach $8 billion. [Full story]