DoD's $63M MV-22 Retrofit Kits Contract Awarded to Bell-Boeing Without Competition
Contract Overview
Contract Amount: $63,032,687 ($63.0M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2013-08-30
End Date: 2019-03-30
Contract Duration: 2,038 days
Daily Burn Rate: $30.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RETROFIT KITS MV-22
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $63.0 million to BELL BOEING JOINT PROJECT OFFICE for work described as: RETROFIT KITS MV-22 Key points: 1. Significant spending on aircraft modification kits. 2. Sole-source award to Bell-Boeing raises competition concerns. 3. Contract duration extends well beyond the award period, indicating potential for long-term, uncompeted spending. 4. Lack of competition may lead to suboptimal pricing and reduced innovation. 5. Focus on Defense sector spending with implications for aircraft readiness.
Value Assessment
Rating: questionable
The contract value of $63M for retrofit kits is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or if it reflects the efficiencies gained through competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and the government's ability to secure the best possible pricing through market forces.
Taxpayer Impact: The absence of competition on this $63M contract means taxpayers may be paying a premium for these retrofit kits, as the government did not leverage competitive pressures to drive down costs.
Public Impact
Taxpayers may be overpaying for essential aircraft upgrades due to the lack of competition. The long contract duration suggests ongoing reliance on a single supplier for critical components. Potential impact on the operational readiness and modernization of the MV-22 Osprey fleet. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
- Potential for cost overruns
Positive Signals
- Firms up essential aircraft components
- Supports a critical defense platform
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks in this area are highly variable, but large sole-source awards for specialized components like retrofit kits warrant scrutiny due to the inherent risk of inflated costs.
Small Business Impact
The contract was awarded to Bell-Boeing Joint Project Office, a large entity. There is no indication that small businesses were involved as subcontractors or had an opportunity to compete for this work, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award raises questions about the effectiveness of oversight in ensuring competitive sourcing. Further review would be needed to understand the justification for not pursuing competitive options and the mechanisms in place to monitor costs.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited price transparency
- Extended contract duration without clear competitive path
- Missed opportunity for small business involvement
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.0 million to BELL BOEING JOINT PROJECT OFFICE. RETROFIT KITS MV-22
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 $63.0 million.
What is the period of performance?
Start: 2013-08-30. End: 2019-03-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative sourcing strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without detailed documentation, it's impossible to confirm if alternatives were explored or if the justification was robust enough to warrant bypassing competition for a $63M contract.
How does the per-unit cost of these retrofit kits compare to similar modifications on other aircraft or previous versions of the MV-22?
Benchmarking the per-unit cost is challenging without access to detailed pricing data and cost breakdowns. Given the sole-source nature, a direct comparison to competitive contracts is not feasible. An independent cost analysis would be required to determine if the pricing is reasonable relative to industry standards and the value provided.
What is the long-term strategy for procuring these retrofit kits, and will future procurements be subject to competition?
The contract's extended duration (ending in 2019, awarded in 2013) suggests a long-term need. The lack of competition in this initial award raises concerns about future procurements. A proactive strategy to foster competition or justify continued sole-sourcing is crucial to ensure cost-effectiveness and innovation over the life cycle of the MV-22 program.
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: 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: $66,351,078
Exercised Options: $64,051,152
Current Obligation: $63,032,687
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $11,688,293
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-08-30
Current End Date: 2019-03-30
Potential End Date: 2019-03-30 00:00:00
Last Modified: 2023-05-18
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