	Background

The V-22 Osprey is a tilt-rotor aircraft—one that operates as a helicopter  for takeoffs and landings and, once airborne, converts to a turboprop  aircraft—developed to fulfill medium-lift operations such as transporting  combat troops, supplies, and equipment for the U.S. Navy, Marine Corps  and Air Force special operations. Figure 1 depicts V-22 aircraft in various  aspects of use. There are two variants of the V-22’s design. MV-22 Operations in Iraq Demonstrated Effectiveness for Assigned Missions but the Aircraft Continues to Experience Challenges

As of January 2009, the 12 MV-22s stationed in Iraq had successfully  completed all missions assigned to them in what is considered an  established, low-threat theater of operations. The deployments confirmed  that the V-22’s enhanced speed and range enable personnel and internal  cargo to be transported faster and farther than is possible with the legacy  helicopters it is replacing. However, questions have arisen as to whether the MV-22 is best suited to  accomplish the full mission repertoire of the helicopters it is intended to  replace. Some challenges in operational effectiveness have been noted. Also, suitability challenges, such as unreliable parts and an immature parts  supply chain drove availability significantly below minimum required  levels. Operational tests and training exercises have provided  additional insights into the aircraft’s capabilities and have identified  challenges to the MV-22’s ability to conduct operations in high-threat  environments, carry the required number of combat troops, transport  external cargo, operate from Navy ships, and conduct missions operating  in environments throughout the world. While efforts are underway to  address these challenges, how successful they will be is uncertain, as  some challenges arise from the inherent design of the V-22. Maneuvering limits may  affect air crew ability to execute the correct evasive action. Its  larger size and large inventory of repair parts constrain hangar deck space. Downwash concerns, however, are not restricted  to shipboard operations. However, its current capability to conduct  worldwide operations in many environments is limited. The original program cost estimates have changed significantly as  research and development and procurement costs have risen sharply  above initial projections. With regard to operations and support costs for  the V-22, the current Flying Hour Program (FHP) cost per flight hour of the  MV-22 today is over $11,000—more than double the target estimate and  140 percent higher than the cost for the CH-46E. Furthermore, operations and support  (O&S) cost will be higher than anticipated. To complete the total procurement, the program plans to request  approximately $25 billion (in then-year dollars) for aircraft procurement  beyond the $29 billion already appropriated and planned for development  and procurement. We interviewed  officials at the Marine Corps Combat Development Command, the V-22  Program Office, and Commander, Operational Test and Evaluation Force  to discuss the V-22 key performance parameters and other performance  measures. This allowed us to document the increase in cost and  expected funding needs over time and its impact on procurement unit  cost. Data is presented in fiscal year 2009 dollars except for figure 8, which  is in then-year dollars.
Why GAO Did This Study

Since the 1980s, the V-22, developed to transport combat troops, supplies, and equipment for the U.S. Marine Corps and to support other services' operations, has experienced several fatal crashes, demonstrated various deficiencies, and faced virtual cancellation--much of which it has overcome. Although until recently deployed in Iraq and regarded favorably, it has not performed the full range of missions anticipated, and how well it can do so is in question. In view of concerns about the V-22 program, you asked us to determine if the V-22 will perform as promised, and if it will, at what cost. GAO reviewed (1) current MV-22 operations in Iraq; (2) strengths and deficiencies in terms of the capabilities expected of the V-22; and (3) past, current, and future costs. GAO reviewed a range of program documents and data, interviewed program officials, operators and others; and observed MV-22 operations in Iraq and shipboard.

What GAO Found

As of January 2009, the 12 MV-22s (Marine Corps variant of the V-22) in Iraq successfully completed all missions assigned in a low threat theater of operations--using their enhanced speed and range to engage in general support missions and deliver personnel and internal cargo faster and farther than the legacy helicopters being replaced. Noted challenges to operational effectiveness raise questions about whether the MV-22 is best suited to accomplish the full repertoire of missions of the helicopters it is intended to replace. Additionally, suitability challenges, such as unreliable component parts and supply chain weaknesses, led to low aircraft availability rates. MV-22 operational tests and training exercises identified challenges with the system's ability to operate in other environments. Maneuvering limits and challenges in detecting threats may affect air crew ability to execute correct evasive actions. The aircraft's large size and inventory of repair parts created obstacles to shipboard operations. Identified challenges could limit the ability to conduct worldwide operations in some environments and at high altitudes similar to what might be expected in Afghanistan. Efforts are underway to address these deficiencies, but some are inherent in the V-22's design. V-22 costs have risen sharply above initial projections--1986 estimates (stated in fiscal year 2009 dollars) that the program would build nearly 1000 aircraft in 10 years at $37.7 million each have shifted to fewer than 500 aircraft at $93.4 million each--a procurement unit cost increase of 148 percent. Research, development, testing, and evaluation costs increased over 200 percent. To complete the procurement, the program plans to request approximately $25 billion (in then-year dollars) for aircraft procurement. As for operations and support costs (O&S), the Marine Corps' V-22's cost per flight hour today is over $11,000--more than double the targeted estimate.