1. O&S COST MANAGEMENT: O&S COST INFLUENCE ON PROGRAMS
A V-22 PROGRAM PERSPECTIVE
V-22 Readiness Improvements / Cost Per Flight Hour Reductions N4 Brief 5 January 2011
Mr. Scott Hite, V-22 Joint Program Office (JPO)
Distribution Statement A – Approved for public release; distribution is unlimited, as submitted under NAVAIR Public Release Authorization 1

2. Background & Context ►Discrete O&S Influence in Design
Has projected O&S cost influenced DoD acquisition program product design decisions? · Has projected O&S cost influenced DoD acquisition program product support strategy decisions? · Has actual O&S cost influenced DoD fielded program cost reduction decisions?
Dec 1981
MS 0
Dec 1982
MS I
Apr 1986
MS II
Oct 1992
EMD contract award
Jan 2018
CCRAM contract Defin
Oct 2005
MSIII
Apr 2000
Marana Mishap
Jun 2007
MV IOC
Mar 2009
CV IOC
Apr 2010
GSD
Jun 1996
LRIP 1
MYP I FY
MYP 2 FY
MYP 3 FY
Performance Based Logistics (PBL) contract FY2008
Reliability changes
Cost Reduction Initiatives
FSD contract terminated
May 2015
Hawaii Mishap
►Discrete O&S Influence in Design
►Acquisition Environment and where was the focus
►Results
Distribution Statement A – Approved for public release; distribution is unlimited, as submitted under NAVAIR Public Release Authorization

3. V-22 O&S Requirements Development Key Performance Parameters
Reliability MFHBF (Mean Flight Hours Between Failures)
Reliability MFHBA (Mean Flight Hours Between Aborts)
Contract Requirements
Design To Cost
Design for Maintainability
Technical review process
Migrating over time to include logistics support elements
Distribution Statement A – Approved for public release; distribution is unlimited, as submitted under NAVAIR Public Release Authorization

4. Events Diverting Program Attention from O&S Focus
Near term focus always seems to out-weigh the long view
Political sensitivities of the V-22 Program
Mishaps redirect efforts
Safety first
Protect the program
Increasing demand & changing intended use of the V-22 system
Realities of the Environment
“Talcum powder” like sand
“Reactive sand”/Volcanic ash
Maritime environment: Salt spray
Distribution Statement A – Approved for public release; distribution is unlimited, as submitted under NAVAIR Public Release Authorization

5. Events Diverting Program Attention from O&S Focus
Safety
Safety
Transformational Technology
- Speed, Range, Capacity
Affordability
Modernization/LCC
Changes in Operations
SPMATF MEUs
Disaggregated Ops
Expansion of intended use
Distribution Statement A – Approved for public release; distribution is unlimited, as submitted under NAVAIR Public Release Authorization

6. Absence of another tilt rotor platform for analogous comparison
Information per V-22 Selected Acquisition Reports (SARs) – Dec 1997 to Dec 2017
Cost Breech factors:
Absence of another tilt rotor platform for analogous comparison
Higher cost of repairables than forecast
Increased demand for consumables
Delayed Intermediate and Depot level repair standup
Inaccurate reliability predictions - underestimated complexity factors of 1st generation technology
Distribution Statement A – Approved for public release; distribution is unlimited, as submitted under NAVAIR Public Release Authorization

7. Actions Today
Common Configuration - Readiness & Modernization (CC-RAM)
Performance Based Logistics (PBL)
Organic Capability
Distribution Statement A – Approved for public release; distribution is unlimited, as submitted under NAVAIR Public Release Authorization

8. Total Ownership Cost O&S Acquisition Program Baseline reporting
formally began in 2005 (includes all V-22 variants)
Change to three level maintenance concept
Program originally based on two level (no I-level)
Service life 10,000 hrs per airframe
Antecedent programs (CH 46, MH53J/M, &C-2A) not representative of tiltrotor configuration
Navy variant better defined today
Constant focus to reduce in a changing fleet environment on each aspect of CPFH
Maintenance planning
Maintenance Capability (I & D level repair)
Contracting strategies for supply
R&M design improvements
Consumable to repair designations
Migrating repair from OEM to organic capability
Resetting estimates based on actual data
Etc…
Dedicated Program Readiness Team
Distribution Statement A – Approved for public release; distribution is unlimited, as submitted under NAVAIR Public Release Authorization

9. Wrap-up Design phase has the best opportunity to affect O&S
Near term challenges distract from O&S focus
Political environment
Operating Environment/Mishaps
Concept of operations changes
Unit cost affordability
There are post design phases methods to influence O&S
Logistics support concept
R&M design changes
Disciplined design change implementation – maintaining common configuration