Naval Air Systems Command awards $106.6M contract for V-22 Osprey airframes and spares to Bell Boeing Joint Project Office

Contract Overview

Contract Amount: $1,316,198,714 ($1.3B)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2005-12-28

End Date: 2010-12-31

Contract Duration: 1,829 days

Daily Burn Rate: $719.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200602!136716!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0292 !A!N! !N! ! !20051228!20090930!106632750!106632750!106632750!N!BELL BOEING JOINT PROJECT OFFI!47123 BUSE RD BUILDING 227!PATUXENT RIVER !MD!20670!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000006901000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !212 !V22 !336411!E! !1! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y!1719!N00019!0001! !

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $1.32 billion to BELL BOEING JOINT PROJECT OFFICE for work described as: 200602!136716!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0292 !A!N! !N! ! !20051228!20090930!106632750!106632750!106632750!N!BELL BOEING JOINT PROJECT OFFI!47123 BUSE RD BUILDING 227!PATUXENT RIVER !MD!20670!27000!439!48!FORT WORTH !TARR… Key points: 1. The contract is for airframes and spares for the V-22 aircraft. 2. Bell Boeing Joint Project Office is the sole awardee. 3. The contract value is $106.6 million. 4. The period of performance is from December 2005 to December 2010.

Value Assessment

Rating: good

The contract value of $106.6 million for airframes and spares appears reasonable given the complexity and specialized nature of the V-22 Osprey program. Benchmarking against similar advanced aircraft production contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, likely due to the specialized nature of the V-22 program and the limited number of entities capable of producing these complex airframes and spares. This limits price discovery and competition.

Taxpayer Impact: Taxpayer funds are used for this sole-source award, highlighting the importance of ensuring fair pricing and value for money, even in specialized defense procurements.

Public Impact

Supports the operational readiness of the V-22 Osprey fleet, a critical asset for the U.S. Marine Corps and Air Force. Ensures the continued availability of essential spare parts for maintenance and repair of V-22 aircraft. Contributes to the sustainment of a unique and advanced military aviation platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Long performance period could lead to cost overruns if not managed effectively.

Positive Signals

Supports a critical national defense asset.
Ensures availability of essential aircraft components.

Sector Analysis

This contract falls within the Defense sector, specifically aircraft manufacturing. Defense spending on specialized aircraft like the V-22 Osprey is significant, with contracts often being sole-source due to unique technological requirements and limited industrial base.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this specific contract award. The prime contractor, Bell Boeing Joint Project Office, is a large entity.

Oversight & Accountability

Oversight would typically be conducted by the Naval Air Systems Command (NAVAIR) through contract administration and performance monitoring. Ensuring accountability for sole-source awards requires rigorous justification and price negotiation.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Potential for cost growth over a long performance period
Reliance on a single contractor for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.32 billion to BELL BOEING JOINT PROJECT OFFICE. 200602!136716!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0292 !A!N! !N! ! !20051228!20090930!106632750!106632750!106632750!N!BELL BOEING JOINT PROJECT OFFI!47123 BUSE RD BUILDING 227!PATUXENT RIVER !MD!20670!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000006901000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !212 !V22 !336411!E! !1! ! ! ! ! !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 $1.32 billion.

What is the period of performance?

Start: 2005-12-28. End: 2010-12-31.

What was the justification for the sole-source award, and were alternative sources considered?

The sole-source justification for this contract likely stems from the highly specialized and complex nature of the V-22 Osprey program, requiring unique manufacturing capabilities and technical expertise possessed by the Bell Boeing Joint Project Office. While alternative sources may not have been feasible for this specific award, a thorough review of the justification and any competitive analyses performed is crucial for ensuring best value.

How was the pricing determined for this sole-source contract to ensure fair and reasonable costs?

For sole-source contracts, pricing is typically determined through detailed cost analysis, review of historical pricing, and negotiation. The government would likely scrutinize the contractor's proposed costs, including direct costs, indirect costs, and profit, to ensure they are fair and reasonable. Independent government cost estimates and benchmarking against similar programs, where possible, would also inform the negotiation process.

What mechanisms are in place to ensure the effectiveness and timely delivery of airframes and spares under this contract?

Effectiveness and timely delivery are typically ensured through contract clauses that define performance standards, delivery schedules, and quality requirements. The Naval Air Systems Command would monitor contractor performance against these metrics, conduct inspections, and potentially utilize incentive or penalty clauses. Regular progress meetings and technical reviews would also be part of the oversight process.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 47123 BUSE RD BUILDING 227, PATUXENT RIVER, MD, 05

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline