DoD Awards $97.4M for LAIRCM-LSPR Kits and Installations, No Competition
Contract Overview
Contract Amount: $97,367,521 ($97.4M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2018-09-26
End Date: 2026-09-30
Contract Duration: 2,926 days
Daily Burn Rate: $33.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAIRCM-LSPR EFFORT FOR KITS, INSTALLS AND NON-RECURRING ENGINEERING (NRE).
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $97.4 million to BELL BOEING JOINT PROJECT OFFICE for work described as: LAIRCM-LSPR EFFORT FOR KITS, INSTALLS AND NON-RECURRING ENGINEERING (NRE). Key points: 1. Significant contract value for aircraft defense systems. 2. Lack of competition raises concerns about price discovery. 3. Potential for cost overruns due to fixed-price contract without competition. 4. Focus on specialized aircraft parts and auxiliary equipment.
Value Assessment
Rating: questionable
The contract value of $97.4M for LAIRCM-LSPR kits and installations is substantial. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar defense system procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this large contract could result in taxpayers paying a premium for the LAIRCM-LSPR systems and associated services.
Public Impact
Enhances survivability of critical aircraft platforms. Supports advanced threat detection and countermeasures. Ensures readiness of naval aviation assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost creep
- Sole-source award
Positive Signals
- Critical defense system
- Long-term contract duration
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts and auxiliary equipment. Spending in this area is critical for national security, but competitive procurement is essential to manage costs effectively.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the specialized nature of the LAIRCM-LSPR system, it is unlikely that small businesses were significantly involved in this particular procurement.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight will be crucial to ensure proper execution and cost control, especially given the non-competitive nature of the award.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
- Sole-source justification unclear
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.4 million to BELL BOEING JOINT PROJECT OFFICE. LAIRCM-LSPR EFFORT FOR KITS, INSTALLS AND NON-RECURRING ENGINEERING (NRE).
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 $97.4 million.
What is the period of performance?
Start: 2018-09-26. End: 2026-09-30.
What is the justification for not competing this significant contract for critical aircraft defense systems?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation would be required to understand the specific rationale behind this decision.
What are the potential risks associated with a sole-source award of this magnitude for defense systems?
A sole-source award of this magnitude carries risks of inflated pricing due to the absence of competitive pressure. There's also a risk of reduced innovation and potentially less stringent quality control compared to a competed contract. Ensuring robust oversight and fair pricing mechanisms becomes paramount.
How does the lack of competition impact the overall value for taxpayer money in this procurement?
The lack of competition significantly diminishes the potential value for taxpayer money. Without competing offers, the government may not achieve the lowest possible price, potentially leading to overspending. This underscores the importance of competitive contracting for maximizing efficiency and cost-effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001918R0230
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: $127,942,138
Exercised Options: $98,216,708
Current Obligation: $97,367,521
Actual Outlays: $2,093,859
Subaward Activity
Number of Subawards: 50
Total Subaward Amount: $8,070,702
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001917G0002
IDV Type: BOA
Timeline
Start Date: 2018-09-26
Current End Date: 2026-09-30
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2025-12-01
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