Bell-Boeing to provide V-22 support to Japan

Bell-Boeing JPO has been contracted for "field representative and logistic support services" to support the V-22 aircraft for the government of Japan.

The deal, announced Monday by the Department of Defense, is worth just over $10 million and is classified as a cost-plus-fixed-fee contract, meaning Bell-Boeing will receive additional cost reimbursement based on a previously negotiated fee between the company and the Defense Department at the inception of the contract.

This type of contract reduces the risk assumed by Bell-Boeing; however, the deal gives little incentive to Bell-Boeing to control budget costs.

The Bell-Boeing V-22 Osprey tilt-rotor aircraft has the capability to takeoff and land vertically and on short runways. It is primarily used by the U.S. Marine Corps and Air Force.

In August, Japan received the first of 17 V-22 Ospreys it has contracted to buy from the United States.

Most of the work, about 85 percent, will be performed at Camp Kisarazu in Japan, the Pentagon said, and is expected to be completed in December 2019.

Officials say foreign military sales funds in the amount of $10 million will be obligated at the time of the contract award, and will not expire at the end of the current fiscal year.

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