GSA awards $50M engineering services contract to Bell Boeing for Osprey navigation integration

Contract Overview

Contract Amount: $49,956,074 ($50.0M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: General Services Administration

Start Date: 2020-03-02

End Date: 2026-09-30

Contract Duration: 2,403 days

Daily Burn Rate: $20.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAVAIR OSPREY NAVIGATION INTEGRATION

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $50.0 million to BELL BOEING JOINT PROJECT OFFICE for work described as: NAVAIR OSPREY NAVIGATION INTEGRATION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of over 2000 days suggests a long-term need for specialized engineering. 3. Cost-plus-fixed-fee structure may incentivize cost overruns. 4. Engineering services sector is critical for defense and aerospace advancements. 5. Contractor is a joint venture, indicating a collaborative approach to complex projects. 6. Geographic concentration in Maryland suggests a focus on specific operational or development hubs.

Value Assessment

Rating: fair

The contract's value of approximately $50 million over a multi-year period for specialized engineering services appears within a reasonable range for complex defense-related projects. However, without specific benchmarks for Osprey navigation integration or comparable sole-source engineering contracts, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D and complex services, carries inherent risks of cost escalation compared to fixed-price contracts. Further analysis would require detailed cost breakdowns and comparison to industry standards for similar engineering efforts.

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 among multiple vendors. This approach is typically used when only one source is capable of meeting the government's needs, often due to proprietary technology, unique expertise, or urgent requirements. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process. This can potentially lead to higher costs for the taxpayer.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competitive negotiation, potentially resulting in less favorable terms for taxpayers.

Public Impact

The primary beneficiaries are the U.S. military, specifically those operating or maintaining the V-22 Osprey aircraft, through enhanced navigation capabilities. The services delivered include critical engineering expertise for the integration of advanced navigation systems into the Osprey platform. The contract's impact is geographically concentrated in Maryland, likely supporting key defense installations or research facilities. This contract supports specialized engineering roles, potentially impacting the aerospace and defense workforce in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee contract type can incentivize higher costs.
Long contract duration (over 6 years) increases exposure to potential scope creep or changing requirements.

Positive Signals

Contract awarded to a joint venture (Bell Boeing) with established expertise in V-22 Osprey development.
Engineering services are crucial for maintaining and improving advanced military platforms.
Contract addresses a specific, critical need for navigation system integration.

Sector Analysis

The engineering services sector, particularly within aerospace and defense, is characterized by high technical complexity, significant R&D investment, and long product lifecycles. This contract falls within the engineering services NAICS code 541330. The market is often dominated by a few large, specialized firms or joint ventures capable of handling such intricate projects. Spending in this area is driven by the need for continuous technological advancement and platform modernization within the defense sector, with comparable contracts often running into tens or hundreds of millions of dollars for system integration and upgrades.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor is a joint venture of established aerospace companies, suggesting that subcontracting opportunities for small businesses may be limited or dependent on the specific needs of the prime contractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA) through its Federal Acquisition Service, which provides acquisition support to other federal agencies. Oversight mechanisms would typically involve contract performance reviews, milestone tracking, and financial audits, particularly given the CPFF structure. Transparency is facilitated through contract databases like FPDS, though detailed cost breakdowns may be proprietary. Inspector General jurisdiction would apply if fraud or mismanagement is suspected.

Related Government Programs

V-22 Osprey Program
Naval Aviation Systems
Aerospace Engineering Services
Defense Contract Management

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $50.0 million to BELL BOEING JOINT PROJECT OFFICE. NAVAIR OSPREY NAVIGATION INTEGRATION

Who is the contractor on this award?

The obligated recipient is BELL BOEING JOINT PROJECT OFFICE.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $50.0 million.

What is the period of performance?

Start: 2020-03-02. End: 2026-09-30.

What is the historical spending pattern for V-22 Osprey navigation integration or similar engineering services by NAVAIR?

Historical spending data for V-22 Osprey navigation integration specifically by NAVAIR is not directly available in this dataset. However, the current award of $49,956,074.30 suggests a significant investment in this area. To understand historical patterns, one would need to query databases like FPDS-NG for previous contracts awarded to Bell Boeing or other prime contractors for V-22 systems engineering, avionics, or navigation upgrades over the past decade. This would reveal trends in contract values, types, and durations, helping to contextualize the current award as part of a larger, ongoing investment in the Osprey platform's capabilities.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar engineering services?

Cost-plus-fixed-fee (CPFF) contracts are common for research, development, and complex engineering services where the scope of work is not fully defined at the outset, or where innovation is a primary goal. Unlike fixed-price contracts, CPFF reimburses the contractor for allowable costs plus a predetermined fixed fee, which is the contractor's profit. While this structure offers flexibility and encourages the contractor to undertake challenging tasks, it carries a higher risk of cost overruns for the government compared to firm-fixed-price contracts. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives to mitigate cost risks, while fixed-price contracts provide greater cost certainty but may limit flexibility.

What are the specific risks associated with a sole-source award for this type of engineering service?

The primary risk of a sole-source award for engineering services like V-22 Osprey navigation integration is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for efficiency. Without competing bids, the government may not secure the most cost-effective solution. There's also a risk that the sole-source provider may not possess all the necessary expertise or may face internal challenges that impact performance, with limited recourse for the government to switch providers. Furthermore, sole-source awards can sometimes be perceived as less transparent, potentially raising concerns about fairness and best value procurement practices.

What is the track record of Bell Boeing Joint Project Office in delivering complex engineering solutions for defense platforms?

Bell Boeing Joint Project Office (JPO) has a long and established track record, primarily as the developer and sustainment provider for the V-22 Osprey tiltrotor aircraft. This joint venture between Bell Helicopter (Textron) and Boeing has been responsible for the design, production, and ongoing support of the V-22 program since its inception. Their experience encompasses complex systems integration, avionics development, and platform modifications, making them a recognized authority on the Osprey. While they have faced program challenges and scrutiny over the years, their continued role in supporting and upgrading the V-22 indicates a capacity to deliver complex engineering solutions critical to the platform's operational readiness.

How does the $50M contract value compare to the overall lifecycle cost or annual spending on the V-22 Osprey program?

The $50 million contract value represents a specific investment in navigation system integration for the V-22 Osprey. The overall lifecycle cost and annual spending on the V-22 Osprey program are significantly higher, encompassing procurement, operations, maintenance, training, and modernization efforts across thousands of flight hours annually. For context, annual spending on the V-22 program can range from hundreds of millions to over a billion dollars, depending on production rates and sustainment needs. Therefore, this $50 million contract, while substantial for a single engineering effort, is a component of a much larger, ongoing defense investment in the V-22 platform.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: ID07190042

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: $49,956,074

Exercised Options: $49,956,074

Current Obligation: $49,956,074

Actual Outlays: $32,442,046

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $496,712

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline