INDIANAPOLIS, April 23 (UPI) -- The U.S. Department of Defense and engine-maker Rolls-Royce have signed a contract for 268 engines to power V-22 Osprey aircraft.
The AE 1107C engines for U.S. Marine Corps and U.S. Air Force Ospreys are worth $598 million.
"Rolls-Royce continues to be the world leader in tilt-rotor engines and this long-term contract reflects the confidence our customer has in our expertise and our technology," said Patricia O'Connell, Rolls-Royce president of Customer Business -- North America.
"Throughout the length of this contract, we will strive to further improve performance and capability of this unique aircraft."
The contract is for one base year of performance with four option years. In the first year, Rolls-Royce will deliver 70 engines valued at $151 million.
Rolls-Royce is the sole manufacturer of the engines for the V-22, allowing it to take off and land like a helicopter and fly like a fixed-wing aircraft. To date, it has delivered 550 AE 1107C engines to the Defense Department.