DoD Awards $9.4M for CDU Keyboard Redesign, Lacking Competition
Contract Overview
Contract Amount: $9,404,212 ($9.4M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-03-31
Contract Duration: 1,643 days
Daily Burn Rate: $5.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CDU KEYBOARD UNIT OBS REDESIGN NRE
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $9.4 million to BELL BOEING JOINT PROJECT OFFICE for work described as: CDU KEYBOARD UNIT OBS REDESIGN NRE Key points: 1. Significant investment in a specialized aircraft part redesign. 2. Sole-source award raises concerns about price discovery and value. 3. Long contract duration (over 5 years) for NRE work. 4. Potential for cost overruns given the Cost Plus Fixed Fee contract type.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to benchmark pricing effectively against similar redesign efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition and the cost-plus contract structure.
Public Impact
Ensures availability of critical components for naval aircraft. Investment in modernization and redesign of existing equipment. Potential for increased maintenance costs if redesign is not cost-effective.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract
- Long contract duration for NRE
Positive Signals
- Supports critical defense systems
- Investment in technology modernization
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military readiness, but competitive sourcing is vital to ensure cost efficiency.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to perform this specialized work.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that costs are managed effectively throughout the contract's lifecycle.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Long contract duration for NRE
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 $9.4 million to BELL BOEING JOINT PROJECT OFFICE. CDU KEYBOARD UNIT OBS REDESIGN NRE
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 $9.4 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-03-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market competition. Without specific details, it's presumed the government assessed that only one source could meet the requirement. However, the absence of competition makes verifying fair and reasonable pricing challenging, often relying on historical data or cost analysis.
What are the potential risks associated with a Cost Plus Fixed Fee contract for NRE work in this sector?
Cost Plus Fixed Fee (CPFF) contracts for Non-Recurring Engineering (NRE) carry risks of cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee. If the NRE effort is complex or underestimated, costs can escalate. The fixed fee provides some incentive for efficiency, but the government bears the primary cost risk.
How will the effectiveness of the CDU Keyboard Unit redesign be measured, and what are the key performance indicators?
Effectiveness is typically measured against predefined requirements and performance metrics outlined in the contract's Statement of Work (SOW). Key Performance Indicators (KPIs) might include improved reliability, reduced failure rates, enhanced functionality, or compliance with new operational standards. Formal testing and validation phases are crucial for confirming the redesign'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
Solicitation ID: N0001919R0090
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: $9,404,212
Exercised Options: $9,404,212
Current Obligation: $9,404,212
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $668,060
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: 2021-09-30
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-12-10
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