DoD's V-22 PBL 2.0 SCM Support contract awarded $136M for repairables and end-of-contract quantity

Contract Overview

Contract Amount: $136,095,150 ($136.1M)

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: $186.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: V-22 PBL 2.0 SCM SUPPORT, SRT REPAIRABLES&END OF CONTRACT QUANTITY

Place of Performance

Location: CALIFORNIA, SAINT MARYS County, MARYLAND, 20619

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $136.1 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 PBL 2.0 SCM SUPPORT, SRT REPAIRABLES&END OF CONTRACT QUANTITY Key points: 1. Contract value of $136M for V-22 Osprey sustainment indicates significant investment in fleet readiness. 2. Sole-source award suggests limited market options or specific contractor capabilities for V-22 support. 3. Firm Fixed Price contract type aims to control costs, but potential for cost overruns exists if scope changes. 4. Contract duration of two years (2017-2018) suggests a focused effort on specific support needs. 5. The focus on repairables and end-of-contract quantity highlights critical sustainment requirements for the V-22 fleet. 6. Geographic concentration in Maryland (MD) may indicate a key operational or maintenance hub for the V-22 program.

Value Assessment

Rating: fair

The $136 million contract value for V-22 Osprey sustainment over two years represents a substantial investment. Benchmarking this against similar complex aircraft support contracts is challenging without more detailed scope information. However, the firm fixed-price structure suggests an attempt to control costs. The absence of competitive bidding raises questions about whether the government secured the best possible value, as pricing is not market-tested.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required supplies or services, or in cases of urgent need. The lack of competition limits the government's ability to leverage market forces to drive down prices and potentially restricts innovation from other potential providers.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium, as there was no opportunity for multiple vendors to bid and offer competitive pricing. This can lead to less efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of the Navy and the U.S. Marine Corps, who operate the V-22 Osprey tiltrotor aircraft. The contract delivers critical support services for V-22 sustainment, focusing on repairable components and end-of-contract quantity needs. Geographic impact is concentrated in Maryland, likely supporting V-22 maintenance, repair, and overhaul activities. Workforce implications include the potential for skilled technicians and support personnel in Maryland to be engaged in V-22 sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may stifle innovation and prevent the entry of new, potentially more efficient, service providers.
Firm Fixed Price contracts can still lead to cost overruns if contract modifications or scope creep occur.
Specific details on 'end of contract quantity' are vague and could mask future liabilities or unexpected costs.

Positive Signals

Firm Fixed Price contract type provides cost certainty for a defined scope.
Focus on repairables and end-of-contract quantity addresses critical sustainment needs for an important military asset.
Contract awarded to Bell Boeing Joint Project Office, likely leveraging established expertise with the V-22 platform.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. Contracts for aircraft sustainment, like this one for the V-22 Osprey, are crucial for maintaining fleet readiness. The market for specialized military aircraft support is often dominated by original equipment manufacturers or their joint ventures due to proprietary knowledge and unique technical requirements. This contract fits within the broader category of aircraft parts and auxiliary equipment manufacturing, supporting a unique platform.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The award to the Bell Boeing Joint Project Office, a large joint venture, suggests that subcontracting opportunities for small businesses may exist within the broader V-22 support ecosystem. However, the direct award mechanism limits transparency regarding specific small business participation goals or achievements for this particular contract.

Oversight & Accountability

Oversight for this Department of Defense contract would typically fall under the purview of the Department of the Navy's contracting and program management offices. Inspector General investigations could be initiated if fraud, waste, or abuse were suspected. Transparency is limited due to the sole-source nature of the award, with detailed performance metrics and cost breakdowns not publicly available.

Related Government Programs

V-22 Osprey Program Support
Department of Defense Aircraft Maintenance and Repair
Military Aircraft Parts Manufacturing
Defense Logistics Agency Support Contracts

Risk Flags

Sole-source award raises concerns about potential lack of competition and price fairness.
Contract details regarding 'SRT REPAIRABLES' and 'END OF CONTRACT QUANTITY' lack specificity.
Limited public information on performance metrics makes assessing contractor effectiveness difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $136.1 million to BELL BOEING JOINT PROJECT OFFICE. V-22 PBL 2.0 SCM SUPPORT, SRT REPAIRABLES&END OF CONTRACT QUANTITY

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 $136.1 million.

What is the period of performance?

Start: 2017-01-01. End: 2018-12-31.

What is the specific nature of the 'SRT REPAIRABLES' and 'END OF CONTRACT QUANTITY' being procured under this contract?

The data provided does not specify the exact nature of the 'SRT REPAIRABLES' or the 'END OF CONTRACT QUANTITY'. 'SRT' could potentially refer to specific systems or components within the V-22, such as the 'Short Range Tactical' systems, or it might be an internal program code. 'Repairables' generally refers to components that are sent for repair rather than being replaced outright, which is a common sustainment strategy to reduce costs. 'End of Contract Quantity' likely refers to a predetermined number of parts or services needed as the contract nears its conclusion, possibly to ensure full operational capability or to manage obsolescence. Without further details from the contract statement of work, the precise scope remains unclear, making a definitive assessment of value and necessity difficult.

How does the $136 million contract value compare to historical spending on V-22 sustainment or similar aircraft support contracts?

The provided data indicates a $136 million contract for V-22 sustainment support over a two-year period (2017-2018). To benchmark this effectively, one would need to compare it against historical spending patterns for the V-22 program and similar complex military aircraft sustainment contracts. For instance, if previous V-22 sustainment contracts averaged $70 million per year, this $136 million contract might represent a slight increase or a shift in scope. Comparing it to contracts for other tiltrotor or heavy-lift aircraft support could also provide context. However, without access to a broader dataset of V-22 PBL (Product Line Management) contracts or comparable platforms' sustainment costs, it's difficult to definitively state whether this represents an increase, decrease, or is in line with expectations. The sole-source nature also complicates direct value comparisons.

What are the key performance indicators (KPIs) and performance metrics associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or performance metrics for this V-22 PBL 2.0 SCM Support contract. Typically, aircraft sustainment contracts would include metrics related to aircraft availability rates, turnaround times for repairs, component reliability, on-time delivery of parts, and adherence to maintenance schedules. For a firm fixed-price contract, performance is often tied to meeting delivery schedules and quality standards. The effectiveness of this contract would be measured by its contribution to maintaining the operational readiness of the V-22 fleet. Without access to the contract's statement of work or performance reports, assessing the contractor's performance against defined objectives is not possible.

What is the track record of Bell Boeing Joint Project Office in supporting the V-22 program, particularly regarding cost control and delivery?

Bell Boeing Joint Project Office (JPO) is the established entity responsible for the V-22 Osprey program, encompassing development, production, and sustainment. Their track record is intrinsically linked to the V-22's history, which has included significant developmental challenges and cost overruns in its early phases. However, the JPO has overseen the V-22's transition into a mature and operationally vital platform for the U.S. Marine Corps and Air Force Special Operations Command. Regarding cost control, the V-22 program has historically faced scrutiny, but sustainment contracts like this one, especially under a Firm Fixed Price structure, aim to provide more predictability. Delivery performance is generally considered robust for operational deployments, though specific metrics for this particular contract are not public.

Given the sole-source nature, what mechanisms are in place to ensure fair pricing and prevent contractor overreach?

In sole-source procurements, ensuring fair pricing often relies on mechanisms such as contractor cost and pricing data certifications, government cost analysis, and price negotiation. The government contracting officer is responsible for determining that the proposed price is fair and reasonable, often by comparing the proposed costs to historical data, independent cost estimates, or commercial price lists if applicable. For complex defense systems like the V-22, the Bell Boeing JPO likely has established pricing structures based on years of experience. However, without competition, the government's leverage is reduced. Oversight bodies like the Defense Contract Audit Agency (DCAA) may review cost proposals, and contract clauses may include provisions for equitable adjustments if contract terms change. Transparency is limited, but the contracting officer must still justify the price determination.

What is the anticipated impact of this contract on the overall readiness and operational capability of the V-22 fleet?

This contract, valued at $136 million over two years for V-22 sustainment support, is directly intended to enhance the readiness and operational capability of the V-22 Osprey fleet. By focusing on 'SRT REPAIRABLES' and 'END OF CONTRACT QUANTITY', it addresses critical needs for maintaining the availability of essential components and ensuring sufficient parts inventory. The V-22 is a vital asset for troop transport, special operations, and casualty evacuation missions. Therefore, effective sustainment through contracts like this is crucial for ensuring the fleet can meet its operational demands reliably. The success of this contract directly correlates with the V-22's ability to be deployed and perform its missions effectively when called upon by military branches.

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: FIRM FIXED PRICE (J)

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: $136,095,150

Exercised Options: $136,095,150

Current Obligation: $136,095,150

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $56,192

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