Navy Spends $77M on Aircraft Parts and Equipment, Lacking Competition
Contract Overview
Contract Amount: $77,143,573 ($77.1M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2018-12-13
End Date: 2024-02-28
Contract Duration: 1,903 days
Daily Burn Rate: $40.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF KITS, INSTALLS, INITIAL SPARES, SPARE RETROFIT KITS AND FMS KITS, INSTALLS AND INITIAL SPARES
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $77.1 million to BELL BOEING JOINT PROJECT OFFICE for work described as: PROCUREMENT OF KITS, INSTALLS, INITIAL SPARES, SPARE RETROFIT KITS AND FMS KITS, INSTALLS AND INITIAL SPARES Key points: 1. Significant spending on aircraft parts and equipment by the Department of the Navy. 2. Lack of competition raises concerns about potential overspending and value for taxpayer money. 3. The contract spans over 5 years, indicating a long-term need for these components. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a specialized area.
Value Assessment
Rating: questionable
The total award of $77.14 million for aircraft parts and kits is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts in the aerospace sector.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition procurement. This significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these aircraft parts and kits, as there was no market pressure to drive down prices.
Public Impact
Ensures continued operational readiness for Navy aircraft by providing necessary parts and kits. Supports the aerospace manufacturing sector, though the lack of competition limits broader economic benefits. Potential for increased costs impacts the Navy's overall budget allocation for aviation maintenance and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Long contract duration without re-evaluation
Positive Signals
- Ensures availability of critical aircraft components
- Supports a specific defense contractor
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is critical for defense readiness. Spending benchmarks are hard to establish without competitive data, but $77M is a significant investment for a single, non-competed contract.
Small Business Impact
The data does not indicate any specific provisions or participation by small businesses in this contract. The procurement method suggests a direct award, potentially bypassing opportunities for small business subcontractors.
Oversight & Accountability
The lack of competition warrants closer oversight to ensure the government is receiving fair value. Accountability for the pricing and necessity of this sole-source award should be a priority.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpayment
- Limited transparency in pricing
- Risk of vendor lock-in
- Possible missed opportunities for innovation
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 $77.1 million to BELL BOEING JOINT PROJECT OFFICE. PROCUREMENT OF KITS, INSTALLS, INITIAL SPARES, SPARE RETROFIT KITS AND FMS KITS, INSTALLS AND INITIAL SPARES
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 $77.1 million.
What is the period of performance?
Start: 2018-12-13. End: 2024-02-28.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price was fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the government usually conducts a price analysis based on historical data, commercial price lists, or independent government cost estimates. However, without competition, the effectiveness of these measures can be limited.
What is the risk of obsolescence or the availability of better alternatives given the 5-year duration of this contract?
A 5-year contract for aircraft parts carries a risk of technological obsolescence, especially in a rapidly evolving field like aerospace. There's also a risk that more cost-effective or technologically superior alternatives might emerge during the contract period. Without competitive re-evaluation, the Navy might be locked into potentially outdated or overpriced solutions.
How does this significant sole-source expenditure impact the Navy's ability to fund other critical aviation support or modernization programs?
Sole-source contracts, particularly those of substantial value like this $77 million award, can strain budget allocations. If funds are heavily committed to non-competed contracts, it may reduce the available resources for other essential aviation support functions, research and development, or modernization initiatives that could offer better long-term value or strategic advantage.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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: $105,248,155
Exercised Options: $77,143,573
Current Obligation: $77,143,573
Actual Outlays: $1,738,451
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $46,503,225
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: 2018-12-13
Current End Date: 2024-02-28
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2025-07-09
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