Boeing, Bell Awarded $10.4 Billion Contract for V-22 Osprey

Bloomberg:

Quote:

Boeing, Textron Get $10.4 Billion V-22 Aircraft Award

By Tony Capaccio

March 28 (Bloomberg) -- Boeing Co. and Textron Inc. received a $10.4 billion contract for the V-22 Osprey that ensures production of 167 more of the aircraft through 2012, the Pentagon said today.

The multiyear contract will save as much as $427 million over annual contracts to manufacture the tilt-rotor plane, the Pentagon estimated. The contract calls for building 141 of the planes for the Marine Corps and 26 for the Air Force, a Pentagon news release said. The Defense Department had 132 aircraft on order before today's contract announcement.

``This is good for a variety of reasons, stability of the production line for an aircraft we know we need and stability for jobs,'' said Representative Joe Sestak, a Pennsylvania Democrat. It also has a cost savings and ``heaven knows, we need that,'' said Sestak, who represents a district where Boeing builds its part of the aircraft. [Full Article]