DoD Awards $8.2M for 8 CV-22 Cockpit Voice Recorders, Sole-Sourced
Contract Overview
Contract Amount: $8,191,447 ($8.2M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2021-06-09
End Date: 2027-11-30
Contract Duration: 2,365 days
Daily Burn Rate: $3.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COCKPIT VOICE RECORDER (CVR) CV-22 EIGHT (8) INSTALLATIONS
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $8.2 million to BELL BOEING JOINT PROJECT OFFICE for work described as: COCKPIT VOICE RECORDER (CVR) CV-22 EIGHT (8) INSTALLATIONS Key points: 1. High cost for specialized aircraft parts. 2. Sole-source procurement limits price competition. 3. Long contract duration raises potential for cost overruns. 4. No small business participation noted.
Value Assessment
Rating: questionable
The contract's total value is $8.2 million for 8 units. Without a competitive benchmark or per-unit cost, it's difficult to assess value. The firm fixed price suggests cost certainty, but the lack of competition is a concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for these critical aircraft components.
Public Impact
Ensures continued operational capability for CV-22 aircraft. Potential for higher costs due to sole-source award. Long-term contract may not reflect current market prices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Long contract duration
Positive Signals
- Essential for aircraft safety and operations
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is often characterized by specialized suppliers and can be susceptible to sole-source awards due to unique requirements.
Small Business Impact
The data indicates that small businesses were not involved in this contract. Given the specialized nature of the components, it's possible that few small businesses possess the capability, but this should be verified.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing the requirement is recommended to ensure fair pricing and responsible use of funds.
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 overpayment due to lack of price discovery.
- Long contract duration increases risk.
- No small business participation.
- High per-unit cost without clear justification.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.2 million to BELL BOEING JOINT PROJECT OFFICE. COCKPIT VOICE RECORDER (CVR) CV-22 EIGHT (8) INSTALLATIONS
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 $8.2 million.
What is the period of performance?
Start: 2021-06-09. End: 2027-11-30.
What is the justification for the sole-source award of these CVRs, and has a market research been conducted to confirm no other capable sources exist?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. A thorough market research report should be available, detailing efforts to identify potential sources and explaining why only the selected vendor could meet the specifications. Without this, the award's legitimacy and potential for overpayment are questionable.
What is the projected cost per unit for these CVRs, and how does it compare to industry benchmarks for similar equipment?
The total award is $8.2 million for 8 units, averaging $1.025 million per unit. Without specific details on the CVR model and its features, a direct comparison is difficult. However, this per-unit cost appears high for cockpit voice recorders. Benchmarking against similar military or commercial aviation CVRs, especially those procured competitively, would be crucial to assess if this price is reasonable or inflated due to the lack of competition.
What are the risks associated with a sole-source award for critical aircraft components like CVRs over a nearly 5-year period?
The primary risk of a sole-source award is the lack of competitive pressure, potentially leading to inflated prices and reduced innovation. Over a long duration (2027 end date), the government is locked into a single supplier, missing opportunities for better pricing or technological advancements from competitors. This also creates a single point of failure risk if the sole provider experiences production issues or goes out of business.
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: 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: $8,191,447
Exercised Options: $8,191,447
Current Obligation: $8,191,447
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $1,790,236
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: 2021-06-09
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2025-12-11
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