DoD Awards $77.8M for MV/CV-22 Software Sustainment to Bell Boeing
Contract Overview
Contract Amount: $77,776,952 ($77.8M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2019-05-16
End Date: 2026-03-31
Contract Duration: 2,511 days
Daily Burn Rate: $31.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MV/CV-22 SOFTWARE SUSTAINMENT
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $77.8 million to BELL BOEING JOINT PROJECT OFFICE for work described as: MV/CV-22 SOFTWARE SUSTAINMENT Key points: 1. Significant contract value for specialized aircraft software sustainment. 2. Sole-source award to Bell Boeing raises questions about competition and pricing. 3. Long contract duration (2019-2026) suggests ongoing need and potential for cost escalation. 4. Focus on sustainment indicates a mature platform requiring continuous support. 5. Department of the Navy is the primary contracting agency.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not carefully managed. Without competitive bidding, it's difficult to assess if the $77.8 million price is optimal compared to potential market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Bell Boeing. This lack of competition limits price discovery and may result in a higher cost to the government than if multiple vendors had bid.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for the software sustainment services due to the absence of competitive pressure.
Public Impact
Ensures continued operational readiness of the MV/CV-22 Osprey fleet. Supports critical military aviation capabilities. Potential for taxpayer funds to be used inefficiently due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Ensures critical software sustainment
- Supports advanced military aircraft
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining complex defense systems, but competitive sourcing is vital to ensure cost-effectiveness.
Small Business Impact
The award was made to Bell Boeing Joint Project Office, a large entity. There is no indication of small business participation in this specific contract, which is common for highly specialized sole-source defense contracts.
Oversight & Accountability
The lack of competition in this sole-source award warrants close oversight to ensure costs remain reasonable and that the government is receiving fair value for the services provided. Regular reviews of cost-plus contract expenditures are essential.
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 cost overruns
- Limited transparency in pricing
- Reliance on a single provider
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 $77.8 million to BELL BOEING JOINT PROJECT OFFICE. MV/CV-22 SOFTWARE SUSTAINMENT
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 $77.8 million.
What is the period of performance?
Start: 2019-05-16. End: 2026-03-31.
What efforts were made to justify the sole-source award and ensure it was the only viable option?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. For specialized defense systems like the MV/CV-22, this often relates to proprietary technology, unique expertise, or existing integration requirements that only the original equipment manufacturer or a designated partner can fulfill. Further documentation would be needed to confirm the specific rationale.
How is the 'fixed fee' component of this Cost Plus Fixed Fee contract determined and managed to prevent cost overruns?
In a Cost Plus Fixed Fee (CPFF) contract, the government pays the actual allowable costs incurred by the contractor plus a fixed fee representing profit. The fixed fee is negotiated upfront and should not change. Effective management involves rigorous auditing of costs, clear definition of allowable expenses, and performance metrics tied to the fee. However, the 'cost plus' element inherently carries risk of cost escalation if not tightly controlled.
What is the long-term strategy for MV/CV-22 software sustainment, and will future contracts also be sole-source?
The long-term strategy for MV/CV-22 software sustainment likely involves ensuring the continued operational capability and safety of the aircraft. Future contracts may continue to be sole-source if the unique nature of the software and its integration with the airframe persists. However, periodic market research and potential competition for specific sustainment tasks or upgrades should be considered to drive efficiency and innovation.
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: N0001919R3320
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: $81,652,084
Exercised Options: $80,602,131
Current Obligation: $77,776,952
Actual Outlays: $5,661,568
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $11,995,463
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: 2019-05-16
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-09-24
More Contracts from Bell Boeing Joint Project Office
- MV-22 Aircraft - FY08 (LOT 12)* — $11.0B (Department of Defense)
- Procurement of V-22 LOT 17 Long Lead-Time Items — $7.3B (Department of Defense)
- CMV-22 Production LOT 22 Long Lead-Time Items — $6.6B (Department of Defense)
- 200602!136716!1700!n00019!naval AIR Systems Command !N0001906C0292 !A!N! !N! ! !20051228!20090930!106632750!106632750!106632750!n!bell Boeing Joint Project Offi!47123 Buse RD Building 227!patuxent River !md!20670!27000!439!48!fort Worth !tarrant !texas !+000006901000!n!n!000000000000!1510!aircraft Fixed Wing !a1a!airframes and Spares !212 !V22 !336411!E! !1! ! ! ! ! !99990909!B! ! !A! !d!u!j!1!001!n!1a!a!n!a! ! !N!C!N! ! ! !a!a!a!a!000!a!b!n! ! ! !Y!1719!N00019!0001! ! — $1.3B (Department of Defense)
- Federal Contract — $1.0B (Department of Defense)
View all Bell Boeing Joint Project Office federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)