DoD Awards $130.7M for V-22 Aircraft Modifications to Japanese Configuration
Contract Overview
Contract Amount: $130,681,849 ($130.7M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2019-11-07
End Date: 2025-08-31
Contract Duration: 2,124 days
Daily Burn Rate: $61.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-RECURRING ENGINEERING AS WELL AS MODIFICATION OF V-22 A/C TO JAPANESE CONFIGURATION
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $130.7 million to BELL BOEING JOINT PROJECT OFFICE for work described as: NON-RECURRING ENGINEERING AS WELL AS MODIFICATION OF V-22 A/C TO JAPANESE CONFIGURATION Key points: 1. Significant investment in specialized aircraft modification for international partner. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (2124 days) suggests complex, multi-year effort. 4. Focus on V-22 aircraft indicates a niche but critical defense capability.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed tightly. Without a competitive bidding process, it's difficult to assess if the $130.7M price represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, likely due to the specialized nature of the V-22 aircraft and the specific configuration required for Japan. This lack of competition limits the government's ability to secure the best possible price.
Taxpayer Impact: Taxpayers bear the full cost of this sole-source modification, with limited assurance of optimal pricing due to the absence of competitive pressure.
Public Impact
Enhances Japan's defense capabilities with advanced V-22 aircraft. Supports specialized aerospace manufacturing and maintenance jobs. Potential for technology transfer and interoperability between US and Japan forces. Ensures continued operational readiness of a key military asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Cost-plus contract type carries inherent cost overrun risk.
- Long duration may indicate potential for scope creep or delays.
Positive Signals
- Addresses specific, critical foreign military sales requirement.
- Supports a high-value, advanced aerospace platform.
- Strengthens alliance with a key international partner.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft modification. Spending benchmarks for such specialized, sole-source modifications are difficult to establish due to unique requirements and limited market data.
Small Business Impact
The awardee is Bell Boeing Joint Project Office, a large joint venture. There is no indication that small businesses are involved in this specific contract, which is common for large, complex defense modification programs.
Oversight & Accountability
The Department of the Navy is the contracting agency. Oversight will be critical to manage the cost-plus fixed fee structure and ensure the modifications meet specifications within the allocated budget and timeline.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus contract type is susceptible to cost overruns.
- Long contract duration increases risk of schedule delays.
- Dependency on a single contractor for specialized modifications.
- Potential for scope creep over the extended performance period.
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 $130.7 million to BELL BOEING JOINT PROJECT OFFICE. NON-RECURRING ENGINEERING AS WELL AS MODIFICATION OF V-22 A/C TO JAPANESE CONFIGURATION
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 $130.7 million.
What is the period of performance?
Start: 2019-11-07. End: 2025-08-31.
What specific technical requirements necessitate a sole-source award for the V-22 Japanese configuration modification?
The sole-source nature likely stems from the highly specialized and proprietary nature of the V-22 Osprey platform, coupled with unique configuration requirements tailored for the Japanese Self-Defense Forces. This could involve specific avionics, structural adaptations, or mission systems integration that only the original equipment manufacturer or its authorized partners possess the intellectual property and expertise to implement.
How will the Department of the Navy ensure cost control and prevent overruns in this Cost Plus Fixed Fee contract?
The Navy will likely employ rigorous Earned Value Management (EVM) techniques to track performance against cost and schedule. Regular audits, detailed cost reporting from the contractor, and strong program management oversight will be essential. Establishing clear milestones and performance metrics will help ensure accountability and mitigate risks associated with the cost-plus structure.
What is the long-term strategic value of modifying V-22 aircraft for Japan beyond the immediate contract?
Modifying V-22s for Japan enhances interoperability and strengthens a key alliance, improving joint operational capabilities. It also supports the sustainment and modernization of a critical tiltrotor aircraft fleet for a major US ally, potentially leading to future collaborative opportunities in defense technology and maintenance.
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 AVAILABLE FOR COMPETITION
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: $133,249,412
Exercised Options: $133,018,839
Current Obligation: $130,681,849
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,550,442
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: 2019-11-07
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-09-16
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