For FY2012, the V-22 program poses a number of potential oversight issues for Congress, including the aircraft's readiness rates, reliability and maintainability, operational suitability, and whether to approve a follow-on multiyear procurement contract. Background

		The V-22 in Brief

The V-22 Osprey is a tilt-rotor aircraft that takes off and lands vertically like a helicopter and flies forward like an airplane. Procurement Quantities

			Total Quantities

Department of Defense (DOD) plans call for procuring a total of 458 V-22s—360 MV-22s for the Marine Corps; 50 CV-22 special operations variants for U.S. Special Operations Command, or USSOCOM (funded jointly by the Air Force and USSOCOM); and 48 HV-22s for the Navy. Through FY2011, a total of 247 V-22s have been procured—211 MV-22s for the Marine Corps, and 36 CV-22s for USSOCOM. These totals include several V-22s that have been procured in recent years through supplemental appropriations bills. Multiyear Procurement for FY2008-FY2012

V-22s are currently being procured under a $10.4-billion, multiyear procurement (MYP) arrangement covering the period FY2008-FY2012. The budget requests about $1.2 billion in procurement and advance procurement funding for procurement of MV-22s, and about $309.2 million in procurement and advance procurement funding for procurement of CV-22s. Final Action

The conference report accompanying H.R. 1540 , H.Rept. 112-329 , authorized $2.2 billion in Aircraft Procurement, Navy, for the V-22. Compared to the request, the report cut $15 million for "support funding carryover" and $10.5 million to "reduce ECO" (engineering change orders.) The request for $84.0 million in advance procurement was reduced by $20.24 million for "advance procurement equipment cost growth." The request for $60.3 million in support equipment was reduced by $2.5 million for "Deficiencies modifications other support growth" and $2.0 million for "Reliability modifications other support growth." The request for $30 million in Overseas Contingency Operations funding was also reduced by $2.5 million for "Deficiencies modifications other support growth" and $2.0 million for "Reliability modifications other support growth." Overseas Contingency Operations funding was also cut by $15 million for V-22 modifications. 2219 ), the Senate Appropriations Committee added $2.8 million in Navy V-22 procurement funds for "voice recorders and Navy-identified shortfall," cut Navy procurement $10.5 million for engineering change orders and $4.5 million for "deficiencies modifications other support growth" and "reliability modifications other support growth," and cut $10 million from Air Force V-22 R&D. Final Action

The Joint Explanatory Statement of the Committee of Conference on H.R. 2055 detailed the $2.2 billion appropriated for V-22 procurement as follows: In Aircraft Procurement, Navy, reductions of $15 million for "support funding carryover" and $10.5 million to "reduce ECO" (engineering change orders). The request for $84.0 million in advance procurement was reduced by $20.24 million for "advance procurement equipment cost growth." The request for $60.3 million in support equipment was reduced by $2.5 million for "Deficiencies modifications other support growth" and $2.0 million for "Reliability modifications other support growth." Air Force V-22 R&D was cut by $7.5 million for "Slow execution/contract delay."
The V-22 Osprey is a tilt-rotor aircraft that takes off and lands vertically like a helicopter and flies forward like an airplane. Department of Defense plans call for procuring a total of 458 V-22s, including 360 MV-22s for the Marine Corps; 50 CV-22 special operations variants for U.S. Special Operations Command, or USSOCOM (funded jointly by the Air Force and USSOCOM); and 48 HV-22s for the Navy.
Through FY2012, a total of 282 V-22s have been procured—241 MV-22s for the Marine Corps and 41 CV-22s for USSOCOM. These totals include several V-22s that have been procured in recent years through supplemental appropriations bills. V-22s are currently procured under a $10.4 billion, multiyear procurement arrangement covering the period FY2008-FY2012.
The proposed FY2013 budget requests about $1.2 billion in procurement and advance procurement funding for procurement of 17 MV-22s, and about $309.2 million in procurement and advance procurement funding for procurement of 4 CV-22s.
For FY2013, the V-22 program poses a number of potential oversight issues for Congress, including whether to approve a follow-on multiyear procurement contract and the aircraft's readiness rates, reliability and maintainability, and operational suitability.
FY2012 defense authorization bills: The conference report accompanying H.R. 1540, H.Rept. 112-329, authorized $2.2 billion in Aircraft Procurement, Navy, for the V–22. Compared to the request, the report cut $15 million for "support funding carryover" and $10.5 million to "reduce ECO" (engineering change orders.) The request for $84.0 million in advance procurement was reduced by $20.24 million for "advance procurement equipment cost growth." The request for $60.3 million in support equipment was reduced by $2.5 million for "Deficiencies modifications other support growth" and $2.0 million for "Reliability modifications other support growth." The request for $30 million in Overseas Contingency Operations funding was also reduced by $2.5 million for "Deficiencies modifications other support growth" and $2.0 million for "Reliability modifications other support growth." Overseas Contingency Operations funding was also cut by $15 million for V-22 modifications as having been funded in FY2011. Air Force V-22 R&D was cut by $7.5 million for "Contract delay."
FY2012 DOD appropriations bills: The Joint Explanatory Statement of the Committee of Conference on H.R. 2055 detailed the $2.2 billion appropriated for V-22 procurement as follows: In Aircraft Procurement, Navy, reductions of $15 million for "support funding carryover" and $10.5 million to "reduce ECO" (engineering change orders.) $2.8 million was added for "V-22 voice recorder-Navy identified shortfall." The request for $84.0 million in advance procurement was reduced by $20.24 million for "advance procurement equipment cost growth." The request for $60.3 million in support equipment was reduced by $2.5 million for "Deficiencies modifications other support growth" and $2.0 million for "Reliability modifications other support growth." Air Force V-22 R&D was cut by $7.5 million for "Slow execution/contract delay." $15 million of modifications requested as Overseas Contingency Operations funding was cut as having been funded in FY2011.