DoD's MV-22 Program Exceeds $11 Billion in FY08, Facing No Competition
Contract Overview
Contract Amount: $11,040,980,157 ($11.0B)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2007-04-02
End Date: 2018-08-06
Contract Duration: 4,144 days
Daily Burn Rate: $2.7M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: MV-22 AIRCRAFT - FY08 (LOT 12)*
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $11.04 billion to BELL BOEING JOINT PROJECT OFFICE for work described as: MV-22 AIRCRAFT - FY08 (LOT 12)* Key points: 1. Significant spending of over $11 billion for the MV-22 program in FY08. 2. Sole-source contract awarded to Bell Boeing Joint Project Office indicates a lack of competition. 3. High program cost raises concerns about value for taxpayer money. 4. Aircraft Manufacturing sector context is crucial for understanding cost drivers.
Value Assessment
Rating: questionable
The total award amount of over $11 billion for the MV-22 program is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar complex aircraft programs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, awarded directly to the Bell Boeing Joint Project Office. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition in such a large contract raises concerns about the efficient use of taxpayer funds, as there was no market pressure to drive down costs.
Public Impact
Taxpayers are funding a major defense aircraft program with no competitive pricing. The long duration of the contract (2007-2018) suggests sustained, significant expenditure. Lack of transparency in pricing due to sole-source nature impacts public trust.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Sole-source contract
- High total spending
- Lack of competition
Positive Signals
- Definitive contract type
- Fixed Price Incentive contract
Sector Analysis
The MV-22 program falls within the Aircraft Manufacturing sector, which is characterized by high R&D costs, complex supply chains, and often long-term government contracts. Benchmarks for similar large-scale military aircraft programs would be needed for a precise comparison.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this sole-source contract. Further investigation would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Oversight would focus on contract performance, cost control, and adherence to terms, especially critical given the sole-source nature and high value.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- High total contract value
- Potential for cost overruns
- Limited transparency in pricing
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.04 billion to BELL BOEING JOINT PROJECT OFFICE. MV-22 AIRCRAFT - FY08 (LOT 12)*
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $11.04 billion.
What is the period of performance?
Start: 2007-04-02. End: 2018-08-06.
What is the justification for awarding this contract as sole-source, and what steps were taken to ensure fair pricing without competition?
Sole-source contracts are typically justified when only one responsible source can provide the required supplies or services. For the MV-22, this might be due to unique technological capabilities or existing infrastructure. However, without competition, rigorous cost analysis, benchmarking against similar programs, and negotiation are crucial to ensure fair pricing and prevent potential overspending of taxpayer funds.
What are the primary cost drivers for the MV-22 program, and how have they evolved over the contract's duration?
Primary cost drivers likely include research and development, complex manufacturing processes, specialized materials, and the unique tiltrotor technology of the MV-22. Understanding the evolution of these costs is vital. Without competitive pressure, the contractor may have less incentive to aggressively manage costs, making detailed government oversight and analysis of cost breakdowns essential to identify potential inefficiencies or price increases.
How does the performance and operational effectiveness of the MV-22 compare to alternative aircraft, and does this justify the significant investment?
The MV-22 offers unique capabilities, such as vertical takeoff and landing combined with the speed of a fixed-wing aircraft, making it suitable for specific mission profiles. However, its development was lengthy and costly, and operational challenges have been noted. A thorough assessment of its effectiveness relative to its cost, compared to other available platforms (even if not direct competitors for the sole-source contract), is necessary to determine if the substantial investment has yielded commensurate strategic advantages.
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: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 401 TILTROTOR DR, AMARILLO, TX, 79111
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,120,283,563
Exercised Options: $11,120,283,563
Current Obligation: $11,040,980,157
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-04-02
Current End Date: 2018-08-06
Potential End Date: 2018-08-06 00:00:00
Last Modified: 2025-06-25
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