DoD Awards $176.7M for V-22 Non-Recurring Engineering to Bell Boeing Joint Project Office
Contract Overview
Contract Amount: $176,706,974 ($176.7M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2015-09-15
End Date: 2019-06-28
Contract Duration: 1,382 days
Daily Burn Rate: $127.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-RECURRING ENGINEERING FOR V-22 FOR GOVERNMENT OF JAPAN.
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $176.7 million to BELL BOEING JOINT PROJECT OFFICE for work described as: NON-RECURRING ENGINEERING FOR V-22 FOR GOVERNMENT OF JAPAN. Key points: 1. Significant investment in specialized aircraft components. 2. Sole-source award raises questions about price discovery. 3. Long contract duration (1382 days) may indicate complex development. 4. Focus on a specific, high-value defense platform.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without more detailed cost breakdowns and comparison to similar NRE contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to negotiate the best possible price and may result in higher costs.
Taxpayer Impact: Taxpayer funds are used for a sole-source award, potentially leading to a higher overall cost than if competitive bidding were employed.
Public Impact
Enhances Japan's defense capabilities with advanced V-22 technology. Supports specialized aerospace manufacturing and engineering expertise. Potential for technology transfer and interoperability between US and Japan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition data
Positive Signals
- Supports key ally's defense modernization
- Investment in advanced aerospace technology
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this area is often driven by national security needs and international partnerships.
Small Business Impact
The awardee is a joint project office, not a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program management reviews and financial audits to ensure contract compliance and cost control.
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 price competition.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of detailed cost breakdown makes independent assessment difficult.
- Long contract duration may indicate development risks.
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 $176.7 million to BELL BOEING JOINT PROJECT OFFICE. NON-RECURRING ENGINEERING FOR V-22 FOR GOVERNMENT OF JAPAN.
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 $176.7 million.
What is the period of performance?
Start: 2015-09-15. End: 2019-06-28.
What specific V-22 capabilities does this non-recurring engineering address for Japan, and how does it align with their strategic defense needs?
This non-recurring engineering (NRE) likely focuses on modifications or enhancements to the V-22 Osprey platform tailored to the specific operational requirements and defense doctrines of the Government of Japan. This could include integration of unique Japanese communication, sensor, or weapon systems, or adaptations for specific mission profiles relevant to Japan's security environment, such as maritime patrol or troop transport in challenging terrains.
Given the sole-source nature, what mechanisms were in place to ensure fair and reasonable pricing for this significant NRE investment?
While sole-source awards limit direct price competition, the government typically employs other methods to ensure fair and reasonable pricing. This often involves detailed cost analysis, review of the contractor's cost accounting system, comparison with historical pricing for similar NRE efforts (if available), and negotiation based on estimated costs and a target profit margin. The Cost Plus Fixed Fee structure also implies a negotiated fixed fee independent of the final cost.
How will the success of this NRE project be measured, and what are the key performance indicators for the V-22's effectiveness in its new configuration?
Success will likely be measured against defined technical performance specifications and delivery milestones outlined in the contract. Key performance indicators could include the successful integration and functionality of new systems, demonstrated reliability and maintainability of the modified V-22, and achievement of desired operational capabilities (e.g., range, payload, survivability). User acceptance testing by the Japanese Self-Defense Forces would be a critical final validation step.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $204,706,543
Exercised Options: $204,706,543
Current Obligation: $176,706,974
Subaward Activity
Number of Subawards: 48
Total Subaward Amount: $27,441,975
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001912G0006
IDV Type: BOA
Timeline
Start Date: 2015-09-15
Current End Date: 2019-06-28
Potential End Date: 2019-06-28 00:00:00
Last Modified: 2025-11-20
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