DoD Awards $1.8B Contract for V-22 Aircraft Airframes and Spares to Bell Boeing

Contract Overview

Contract Amount: $180,092,188 ($180.1M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2003-10-30

End Date: 2011-07-31

Contract Duration: 2,831 days

Daily Burn Rate: $63.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200408!000014!1700!AC5J0 !NAVAL AIR SYSTEMS COMMAND !N0001903C0067 !A!N! !N! ! !20031030!20031231!106632750!106632750!106632750!N!BELL BOEING JOINT PROJECT OFFI!47123 BUSE RD BUILDING 227!PATUXENT RIVER !MD!20670!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000000884587!N!N!000131681653!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !212 !V22 !336411!E! !3! ! ! ! ! !99990909!B!F!Y!A! !D!N!V!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $180.1 million to BELL BOEING JOINT PROJECT OFFICE for work described as: 200408!000014!1700!AC5J0 !NAVAL AIR SYSTEMS COMMAND !N0001903C0067 !A!N! !N! ! !20031030!20031231!106632750!106632750!106632750!N!BELL BOEING JOINT PROJECT OFFI!47123 BUSE RD BUILDING 227!PATUXENT RIVER !MD!20670!60650!037!24!PATUXENT RIVER NAS !ST. … Key points: 1. The contract, valued at $1,800,921,883.30, is for V-22 aircraft airframes and spares. 2. Bell Boeing Joint Project Office is the sole awardee, indicating a limited competition environment. 3. The award is for aircraft manufacturing, a critical sector for defense operations. 4. Potential risks include reliance on a single supplier and the complexity of V-22 aircraft maintenance.

Value Assessment

Rating: fair

The contract value is substantial, but without specific pricing breakdowns or comparisons to similar V-22 component contracts, a precise value assessment is difficult. The 'COST PLUS INCENTIVE FEE' structure suggests potential for cost overruns if not managed carefully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis to Bell Boeing Joint Project Office. This limits price discovery and competition, potentially leading to higher costs than if multiple vendors were considered.

Taxpayer Impact: Taxpayers may bear higher costs due to the lack of competitive bidding, although the necessity of specialized V-22 components justifies the sole-source award to the established manufacturer.

Public Impact

Ensures continued availability of critical V-22 Osprey aircraft components for military operations. Supports the ongoing sustainment and readiness of a unique tiltrotor aircraft fleet. Potential for increased costs to taxpayers due to sole-source nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Cost-plus contract type can lead to cost overruns.
Long contract duration (2003-2011) may not reflect current market prices.

Positive Signals

Ensures critical component supply for V-22 fleet.
Supports a unique and vital defense asset.
Awardee has established expertise in V-22 production.

Sector Analysis

This contract falls within the Defense sector, specifically aircraft manufacturing. Spending benchmarks for aircraft components can vary widely based on complexity and production volume. The V-22 is a specialized aircraft, making direct comparisons challenging.

Small Business Impact

The awardee is Bell Boeing Joint Project Office, a large prime contractor. There is no explicit indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.

Oversight & Accountability

The contract was awarded by the Naval Air Systems Command. Oversight would focus on ensuring cost control, delivery schedules, and quality of the airframes and spares provided by Bell Boeing.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Cost-plus contract type
Long contract duration
Lack of competition
Potential for price inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $180.1 million to BELL BOEING JOINT PROJECT OFFICE. 200408!000014!1700!AC5J0 !NAVAL AIR SYSTEMS COMMAND !N0001903C0067 !A!N! !N! ! !20031030!20031231!106632750!106632750!106632750!N!BELL BOEING JOINT PROJECT OFFI!47123 BUSE RD BUILDING 227!PATUXENT RIVER !MD!20670!60650!037!24!PATUXENT RIVER NAS !ST. MARY S !MARYLAND !+000000884587!N!N!000131681653!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !212 !V22 !336411!E! !3! ! ! ! ! !999

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 $180.1 million.

What is the period of performance?

Start: 2003-10-30. End: 2011-07-31.

What is the historical cost performance of similar V-22 airframe and spare contracts awarded to Bell Boeing?

Historical cost performance data for similar V-22 contracts is crucial for assessing the value of this $1.8 billion award. Without this, it's difficult to determine if the 'COST PLUS INCENTIVE FEE' structure resulted in efficient spending or significant cost overruns. Analyzing past performance would reveal trends in cost growth and the effectiveness of incentive clauses in controlling expenditures for this specialized aircraft program.

What are the specific risks associated with the sole-source nature of this award for V-22 components?

The primary risk of a sole-source award for V-22 components is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. It also creates a dependency on a single supplier, potentially impacting supply chain resilience and long-term sustainment strategies. Without alternative sources, the government has limited leverage in price negotiations and contract modifications.

How effectively has the 'COST PLUS INCENTIVE FEE' structure managed program costs for the V-22 airframes and spares?

The effectiveness of the 'COST PLUS INCENTIVE FEE' (CPIF) structure hinges on the specific incentive targets and the contractor's ability to meet them. While CPIF aims to balance cost control with performance, its success depends on robust government oversight and well-defined performance metrics. Without detailed reporting on cost variances and incentive payouts, it's challenging to definitively assess how effectively this contract has managed program costs for the V-22 components.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 47123 BUSE RD BUILDING 227, PATUXENT RIVER, MD, 20670

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline