DoD Extends V-22 PBL 2.0 Support by 2 Years, Costing $360M
Contract Overview
Contract Amount: $359,813,791 ($359.8M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2017-01-01
End Date: 2018-12-31
Contract Duration: 729 days
Daily Burn Rate: $493.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: V-22 PBL 2.0, SCM SUPPORT. 2-YEAR EXTENSION
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $359.8 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 PBL 2.0, SCM SUPPORT. 2-YEAR EXTENSION Key points: 1. The contract extension for V-22 Osprey sustainment is valued at $359.8M. 2. Competition was limited, with the contract awarded to Bell Boeing Joint Project Office. 3. Potential risks include reliance on a single source for critical support. 4. The sector is Defense, specifically aircraft parts and auxiliary equipment manufacturing.
Value Assessment
Rating: fair
The contract is a Cost Plus Incentive Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar sustainment contracts for complex aircraft is difficult due to unique program specifics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The V-22 Osprey is a critical asset for the Navy, making sustainment essential. Long-term sustainment contracts can lock in costs but also reduce flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Incentive Fee structure
- Potential for cost overruns
Positive Signals
- Ensures continued operational readiness of V-22 aircraft
- Provides critical sustainment support
Sector Analysis
This contract falls within the Defense sector, specifically supporting the V-22 Osprey aircraft. Spending on aircraft sustainment is a significant portion of the DoD budget, with benchmarks varying widely based on aircraft type and age.
Small Business Impact
There is no indication of small business participation in this specific contract extension. The prime contractor, Bell Boeing Joint Project Office, is a large entity, and subcontracts would need further analysis to determine small business involvement.
Oversight & Accountability
The contract's limited competition and cost-plus nature warrant close oversight to ensure cost efficiency and prevent potential waste. Regular performance reviews and audits are crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source provider
- Cost-plus contract type
- Potential for cost overruns
- Lack of transparency in pricing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $359.8 million to BELL BOEING JOINT PROJECT OFFICE. V-22 PBL 2.0, SCM SUPPORT. 2-YEAR EXTENSION
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 $359.8 million.
What is the period of performance?
Start: 2017-01-01. End: 2018-12-31.
What is the historical cost performance of this contract and similar V-22 sustainment efforts?
Historical cost performance data for this specific contract and similar V-22 sustainment efforts would be crucial for a comprehensive value assessment. Analyzing trends in cost overruns, incentive fee payouts, and deviations from target costs can reveal patterns of efficiency or inefficiency. Benchmarking against industry standards for aircraft sustainment, adjusted for program complexity, is also necessary.
What are the specific risks associated with relying on a single source for V-22 sustainment support?
Relying on a single source for V-22 sustainment creates significant risks, including potential price gouging, lack of innovation, and vulnerability to supply chain disruptions. If the sole provider experiences financial difficulties or operational issues, it could severely impact the readiness of the V-22 fleet. Furthermore, the government has limited leverage to negotiate favorable terms without competitive pressure.
How effectively does the Cost Plus Incentive Fee structure incentivize cost control for V-22 sustainment?
The effectiveness of the Cost Plus Incentive Fee (CPIF) structure in controlling costs for V-22 sustainment depends heavily on the realism of the target cost and the aggressiveness of the incentive sharing formula. If the target cost is set too high, the contractor may not be sufficiently motivated to reduce expenses. Conversely, a well-defined CPIF with achievable targets and meaningful incentives can encourage efficiency and cost savings for both parties.
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
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: $359,813,791
Exercised Options: $359,813,791
Current Obligation: $359,813,791
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: 2017-01-01
Current End Date: 2018-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2023-06-26
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