DoD Spends $46.3M on MV-22 Flight Tests in 2019, Awarded via Delivery Order
Contract Overview
Contract Amount: $46,266,367 ($46.3M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2018-12-28
End Date: 2021-03-15
Contract Duration: 808 days
Daily Burn Rate: $57.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FMS MV-22 FLIGHT TESTS CY 2019
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $46.3 million to BELL BOEING JOINT PROJECT OFFICE for work described as: FMS MV-22 FLIGHT TESTS CY 2019 Key points: 1. Significant investment in flight testing for a critical military aircraft. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. Focus on specialized aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract type (Cost Plus Fixed Fee) can lead to higher costs if not managed tightly. Benchmarking against similar flight test contracts is difficult due to the specialized nature of the MV-22 program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to reduce the price.
Taxpayer Impact: Lack of competition likely resulted in a higher price than a competed contract, impacting taxpayer value.
Public Impact
Ensures continued operational readiness and development of the MV-22 Osprey tiltrotor aircraft. Supports advanced aerospace manufacturing and testing capabilities. Contributes to national defense readiness through aircraft modernization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Supports critical defense program
- Ensures aircraft modernization
Sector Analysis
This spending falls within the Defense sector, specifically related to aircraft manufacturing and testing. Benchmarks for specialized flight testing are difficult to establish due to unique program requirements.
Small Business Impact
No information is provided regarding small business participation in this contract. The prime contractor is a joint venture, suggesting large business involvement.
Oversight & Accountability
The award was a delivery order under an existing contract, suggesting some level of prior oversight. However, the lack of competition for this specific order warrants further scrutiny.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract
- Lack of transparency on justification for sole-source
- Potential for cost overruns
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.3 million to BELL BOEING JOINT PROJECT OFFICE. FMS MV-22 FLIGHT TESTS CY 2019
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 $46.3 million.
What is the period of performance?
Start: 2018-12-28. End: 2021-03-15.
What was the justification for the sole-source award, and were alternatives considered?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Without this information, it's difficult to assess if the government received the best possible value. Exploring alternatives, even if ultimately deemed unsuitable, is a key aspect of responsible procurement and ensures taxpayer funds are used efficiently.
How effectively was the Cost Plus Fixed Fee structure managed to control costs during the flight tests?
The Cost Plus Fixed Fee (CPFF) contract type requires robust oversight to prevent cost overruns. Understanding the specific management controls, reporting mechanisms, and any incurred cost variances is essential to evaluate the effectiveness of this contract structure in this instance. Without detailed financial data and oversight reports, assessing cost control is challenging.
What are the long-term implications of this spending on the MV-22 program's overall cost and effectiveness?
This spending represents a component of the MV-22 program's lifecycle costs. Analyzing its contribution to the aircraft's overall effectiveness, reliability, and sustainment is important. Understanding how these flight tests inform future upgrades or address performance issues will ultimately determine the long-term value and impact on the program's success.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $52,159,631
Exercised Options: $52,159,631
Current Obligation: $46,266,367
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $63,065
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001917G0002
IDV Type: BOA
Timeline
Start Date: 2018-12-28
Current End Date: 2021-03-15
Potential End Date: 2021-03-15 00:00:00
Last Modified: 2025-12-18
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