DoD's $82.6M V22 Joint Performance Based Logistics Contract Awarded to Bell Boeing in 2009
Contract Overview
Contract Amount: $82,573,566 ($82.6M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2009-02-01
End Date: 2009-11-30
Contract Duration: 302 days
Daily Burn Rate: $273.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: V22 JOINT PERFORMANCE BASED LOGISTICS PERIOD OF PERFORMANCE (1 FEB 09 THRU 30 NOV 09)
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $82.6 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V22 JOINT PERFORMANCE BASED LOGISTICS PERIOD OF PERFORMANCE (1 FEB 09 THRU 30 NOV 09) Key points: 1. The contract was for logistics support for the V22 aircraft. 2. Awarded to Bell Boeing Joint Project Office, indicating a specific manufacturer relationship. 3. The contract utilized a Cost Plus Incentive Fee structure. 4. This was a delivery order under a larger contract vehicle.
Value Assessment
Rating: fair
The contract value of $82.6 million for a 10-month period is substantial. Without specific performance metrics or benchmarks for V22 logistics, a precise value assessment is difficult. However, the CPIF structure suggests an attempt to incentivize performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED,' indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process. The award was a delivery order, suggesting it was placed against an existing contract.
Taxpayer Impact: The lack of competition for this significant contract value means taxpayers may not have received the best possible price.
Public Impact
Ensures operational readiness of the V22 Osprey aircraft through essential logistics support. Supports a critical defense platform, impacting national security capabilities. The award to Bell Boeing highlights the specialized nature of V22 support. The 2009 award predates current contract management best practices, potentially impacting transparency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Short performance period
Positive Signals
- Performance-based logistics approach
- Supports critical V22 aircraft
Sector Analysis
The aerospace and defense sector often involves complex, high-value contracts with specialized manufacturers. Spending benchmarks for aircraft logistics can vary widely based on aircraft type, age, and operational tempo.
Small Business Impact
This contract was awarded to Bell Boeing Joint Project Office, a large entity, and there is no indication of small business participation. The nature of specialized aircraft logistics often favors large, established prime contractors.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and effective performance. The CPIF structure implies monitoring of costs and incentives. Further review would be needed to assess specific oversight mechanisms employed.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can incentivize higher spending.
- Lack of transparency regarding performance metrics and achievement.
- Short contract duration may indicate a stop-gap measure or limited scope.
- No clear indication of small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.6 million to BELL BOEING JOINT PROJECT OFFICE. V22 JOINT PERFORMANCE BASED LOGISTICS PERIOD OF PERFORMANCE (1 FEB 09 THRU 30 NOV 09)
Who is the contractor on this award?
The obligated recipient is BELL BOEING JOINT PROJECT OFFICE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $82.6 million.
What is the period of performance?
Start: 2009-02-01. End: 2009-11-30.
What were the specific performance metrics tied to the incentive fee, and how were they measured and achieved?
The contract utilized a Cost Plus Incentive Fee (CPIF) structure, aiming to align contractor and government interests by incentivizing cost savings and performance targets. Specific metrics would typically relate to delivery timeliness, quality of parts, and overall availability of support services for the V22 aircraft. Without access to the contract details and performance reports, the exact metrics and their achievement remain unknown, impacting a full assessment of value.
What was the justification for awarding this contract on a sole-source basis, and what analysis was done to ensure fair and reasonable pricing?
Sole-source awards typically occur when only one responsible source can provide the required supplies or services. For specialized military aircraft like the V22, this could be due to unique technical expertise, proprietary data, or existing infrastructure. The justification for 'NOT COMPETED' is critical. A thorough analysis, including market research and cost realism assessments, should have been performed to ensure fair and reasonable pricing, though the absence of competition inherently limits price discovery.
How did the performance-based logistics approach impact the operational readiness and cost-effectiveness of the V22 fleet during the contract period?
Performance-based logistics (PBL) aims to improve weapon system readiness and reduce costs by focusing on outcomes rather than specific tasks. For the V22, a successful PBL contract should have led to higher aircraft availability, reduced maintenance downtime, and potentially lower overall sustainment costs. Assessing the actual impact requires comparing readiness rates and total ownership costs before and after the contract, alongside contractor performance data against agreed-upon metrics.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001908R0046
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 401 TILTROTOR DR PLANT A, AMARILLO, TX, 79111
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $96,109,296
Exercised Options: $96,109,296
Current Obligation: $82,573,566
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001909D0008
IDV Type: IDC
Timeline
Start Date: 2009-02-01
Current End Date: 2009-11-30
Potential End Date: 2009-11-30 00:00:00
Last Modified: 2022-05-19
More Contracts from Bell Boeing Joint Project Office
- MV-22 Aircraft - FY08 (LOT 12)* — $11.0B (Department of Defense)
- Procurement of V-22 LOT 17 Long Lead-Time Items — $7.3B (Department of Defense)
- CMV-22 Production LOT 22 Long Lead-Time Items — $6.6B (Department of Defense)
- 200602!136716!1700!n00019!naval AIR Systems Command !N0001906C0292 !A!N! !N! ! !20051228!20090930!106632750!106632750!106632750!n!bell Boeing Joint Project Offi!47123 Buse RD Building 227!patuxent River !md!20670!27000!439!48!fort Worth !tarrant !texas !+000006901000!n!n!000000000000!1510!aircraft Fixed Wing !a1a!airframes and Spares !212 !V22 !336411!E! !1! ! ! ! ! !99990909!B! ! !A! !d!u!j!1!001!n!1a!a!n!a! ! !N!C!N! ! ! !a!a!a!a!000!a!b!n! ! ! !Y!1719!N00019!0001! ! — $1.3B (Department of Defense)
- Federal Contract — $1.0B (Department of Defense)
View all Bell Boeing Joint Project Office federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)