DoD Navy Spends $160M on Integrated Logistic Support, Sole-Sourced Contract
Contract Overview
Contract Amount: $160,132,400 ($160.1M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2017-12-01
End Date: 2019-01-21
Contract Duration: 416 days
Daily Burn Rate: $384.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: INTEGRATED LOGISTIC SUPPORT
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $160.1 million to BELL BOEING JOINT PROJECT OFFICE for work described as: INTEGRATED LOGISTIC SUPPORT Key points: 1. Significant spending on a critical support function for naval aircraft. 2. Lack of competition raises concerns about potential overpricing and value. 3. Contract awarded to Bell Boeing Joint Project Office, suggesting a specific industry relationship. 4. Focus on fixed-price incentive contract type, aiming to balance cost and performance.
Value Assessment
Rating: questionable
The $160 million contract value for Integrated Logistic Support is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to ensure fair pricing. The fixed-price incentive structure suggests an attempt to control costs, but the lack of competition limits transparency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially leading to higher prices and reduced innovation. Price discovery is limited as there was no market comparison.
Taxpayer Impact: The absence of competition for a $160 million contract means taxpayers may not be receiving the best possible value for their investment.
Public Impact
Ensures operational readiness of naval aircraft through essential support services. Potential for higher costs due to lack of competitive bidding impacts defense budget allocation. Supports a key defense contractor, potentially influencing industry dynamics. Long-term implications for aircraft maintenance and lifecycle costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
Positive Signals
- Essential support for naval aviation
- Fixed-price incentive contract type
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting naval aviation. Spending benchmarks for integrated logistic support can vary widely based on the complexity of the systems and the scope of services required. The $160 million figure is significant for this type of support.
Small Business Impact
The data does not indicate any involvement of small businesses in this contract. The award to the Bell Boeing Joint Project Office suggests a focus on established prime contractors, potentially excluding smaller, specialized firms.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for non-competition was sound. Accountability for cost control within the fixed-price incentive framework is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in cost justification
- Reduced incentive for innovation and efficiency
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $160.1 million to BELL BOEING JOINT PROJECT OFFICE. INTEGRATED LOGISTIC SUPPORT
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 $160.1 million.
What is the period of performance?
Start: 2017-12-01. End: 2019-01-21.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further details, it's impossible to assess if alternative competitive strategies were explored or if the sole-source justification was robust. This lack of transparency hinders a full evaluation of the procurement's effectiveness and potential for cost savings.
How does the pricing structure of this fixed-price incentive contract compare to industry standards for similar integrated logistic support services, especially given the lack of competition?
Assessing the pricing structure's fairness is challenging without competitive benchmarks. Fixed-price incentive contracts aim to share risk and reward between the government and contractor based on performance targets. However, in a sole-source scenario, the baseline for these incentives might be inflated, potentially leading to higher overall costs for the government than if the contract had been competed.
What mechanisms are in place to ensure the effectiveness and efficiency of the integrated logistic support provided under this contract, beyond the financial incentives?
Effectiveness is typically measured through performance metrics, delivery schedules, and operational readiness rates. The contract likely includes clauses for quality assurance and performance monitoring. However, the sole-source nature might reduce the contractor's incentive to proactively seek efficiencies or innovate compared to a competitive environment where superior performance could lead to future contract awards.
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: N0001908R0046
Pricing Type: FIXED PRICE INCENTIVE (L)
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, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $160,132,400
Exercised Options: $160,132,400
Current Obligation: $160,132,400
Actual Outlays: $142,738
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001909D0008
IDV Type: IDC
Timeline
Start Date: 2017-12-01
Current End Date: 2019-01-21
Potential End Date: 2019-01-21 00:00:00
Last Modified: 2025-09-09
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