DoD Navy awards $110.9M for Integrated Logistics Support, a sole-source contract
Contract Overview
Contract Amount: $110,890,819 ($110.9M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2009-12-01
End Date: 2010-11-30
Contract Duration: 364 days
Daily Burn Rate: $304.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: INTEGRATED LOGISTICS SUPPORT FOR PERIOD TWO (1 DECEMBER 2009 - 30 NOVEMBER 2010) PARTIAL AUTHORIZATION
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $110.9 million to BELL BOEING JOINT PROJECT OFFICE for work described as: INTEGRATED LOGISTICS SUPPORT FOR PERIOD TWO (1 DECEMBER 2009 - 30 NOVEMBER 2010) PARTIAL AUTHORIZATION Key points: 1. The contract is for integrated logistics support, a critical but often sole-sourced area. 2. Bell Boeing Joint Project Office is the contractor, suggesting a specialized capability. 3. The contract's partial authorization indicates ongoing funding needs and potential for future modifications. 4. The cost-plus incentive fee structure aims to align contractor performance with government objectives.
Value Assessment
Rating: fair
The contract's value of $110.9 million for a one-year period is substantial. Without specific benchmarks for integrated logistics support for this platform, it's difficult to definitively assess pricing. However, cost-plus contracts can sometimes lead to higher costs if not tightly managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially increases costs for taxpayers. The justification for sole-sourcing is crucial for understanding if this was the only viable option.
Taxpayer Impact: The lack of competition for this significant contract raises concerns about potential overspending and reduced value for taxpayer dollars.
Public Impact
Ensures continued operational readiness for naval assets through essential logistics support. Supports a specialized contractor, potentially impacting the broader defense industrial base. The sole-source nature may limit opportunities for other qualified businesses to compete for this work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can incentivize higher spending if not managed effectively.
- Partial authorization suggests potential for future contract modifications and cost increases.
Positive Signals
- Provides critical logistics support for naval operations.
- Contract structure includes incentives for performance.
- Contractor is a joint project office, implying significant experience.
Sector Analysis
The aerospace and defense sector, particularly aircraft parts and auxiliary equipment manufacturing, often involves complex, specialized components and support services. Spending benchmarks for integrated logistics support can vary widely based on the specific platform and duration of the contract.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. As a sole-source award to a joint project office, it is unlikely that small businesses were directly involved as prime contractors.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure fair pricing and effective performance. Regular reviews of cost justifications and performance metrics are essential for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns in cost-plus contracts
- Limited transparency in pricing due to sole-sourcing
- No clear indication of small business participation
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.9 million to BELL BOEING JOINT PROJECT OFFICE. INTEGRATED LOGISTICS SUPPORT FOR PERIOD TWO (1 DECEMBER 2009 - 30 NOVEMBER 2010) PARTIAL AUTHORIZATION
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 $110.9 million.
What is the period of performance?
Start: 2009-12-01. End: 2010-11-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for sole-sourcing is critical for understanding the necessity of this approach. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. Without this justification, it's difficult to assess if competition was truly impossible or if opportunities were missed.
How does the cost-plus incentive fee structure translate into actual cost savings or performance improvements compared to other contract types for similar logistics support?
Cost-plus incentive fee (CPIF) contracts aim to incentivize the contractor to control costs by sharing in any savings below a target cost or sharing in any cost overruns above the target. The effectiveness of CPIF depends heavily on the realism of the target cost and the fairness of the incentive structure. It's important to analyze the final costs against the target and the achieved performance metrics to determine if the incentive structure truly benefited the government.
What is the long-term strategy for ensuring competitive sourcing of integrated logistics support for this naval platform beyond the current contract period?
Given the sole-source nature of this award, it's important to understand the Department of the Navy's long-term strategy for this critical support. Are there plans to develop competition in the future, perhaps by breaking down the support into smaller components or by fostering new capabilities within the industrial base? A proactive approach to competition planning can lead to better value and reduced costs over the lifecycle of the platform.
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: $113,147,083
Exercised Options: $113,147,083
Current Obligation: $110,890,819
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001909D0008
IDV Type: IDC
Timeline
Start Date: 2009-12-01
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2023-08-07
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