DoD's $29.7M V-22 Harness Contract Awarded Sole-Source to Bell-Boeing

Contract Overview

Contract Amount: $29,734,390 ($29.7M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2021-02-05

End Date: 2026-03-31

Contract Duration: 1,880 days

Daily Burn Rate: $15.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: V-22 CONVERSION AREA HARNESS (CAH) STEP 2 FMS NRE, BASE AND SUPPLEMENTAL KITS-RETROFIT, AND INTERIM SPARES

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 CONVERSION AREA HARNESS (CAH) STEP 2 FMS NRE, BASE AND SUPPLEMENTAL KITS-RETROFIT, AND INTERIM SPARES Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Significant investment in retrofitting and spare parts for V-22 aircraft. 3. Long performance period suggests sustained need for V-22 sustainment. 4. Contract value is substantial, indicating critical role in V-22 operations. 5. Focus on Non-Recurring Engineering (NRE) for initial development and integration. 6. Geographic concentration in Texas for contract performance. 7. Firm Fixed Price contract type shifts cost risk to the contractor.

Value Assessment

Rating: fair

The contract value of approximately $29.7 million for V-22 conversion area harness (CAH) components and spares appears substantial. Without direct comparable sole-source contracts for similar NRE and retrofit kits, a precise value-for-money assessment is challenging. However, the sole-source nature raises concerns about potential overpricing compared to a competitive environment. The firm fixed-price structure does offer some cost certainty for the government, but the lack of competition is a primary driver for a 'fair' rating.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single source. In this case, the award to Bell-Boeing Joint Project Office suggests a reliance on their established expertise and existing infrastructure for the V-22 program. The lack of competition means there were no other bidders, and therefore no direct price comparison from multiple vendors.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher costs for taxpayers compared to a competed contract.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, ensuring the continued operational readiness of the V-22 Osprey fleet. Services delivered include the development and production of conversion area harnesses, base and supplemental kits for retrofitting, and interim spare parts. Geographic impact is concentrated in Texas, where the contract work will be performed. Workforce implications include potential employment opportunities for skilled labor in aerospace manufacturing and engineering within Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price negotiation and potential cost savings.
Lack of competition may reduce incentives for contractor innovation and efficiency.
Long contract duration could lead to scope creep or cost overruns if not managed effectively.

Positive Signals

Firm Fixed Price contract type provides cost predictability for the government.
Award to a joint project office suggests deep program knowledge and established processes.
Focus on NRE and spares addresses critical sustainment needs for a key military asset.

Sector Analysis

The aerospace manufacturing sector, particularly for defense applications, is characterized by high barriers to entry, specialized technology, and significant government reliance on a few prime contractors. Contracts for aircraft parts, retrofits, and sustainment are crucial for maintaining fleet readiness. The V-22 Osprey is a unique tiltrotor aircraft, and specialized components like the conversion area harness are likely produced by entities with deep program-specific knowledge. Spending in this sub-sector is driven by defense modernization and sustainment requirements.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the sole-source nature and the specialized requirements for V-22 components, it is unlikely that small businesses would be primary awardees. However, the prime contractor, Bell-Boeing, may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the subcontracting opportunities generated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, there may be increased scrutiny to ensure fair and reasonable pricing. Transparency is limited due to the lack of a competitive bidding process. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, but specific oversight mechanisms beyond standard contract management are not detailed.

Related Government Programs

V-22 Osprey Sustainment Programs
Aerospace Component Manufacturing
Defense Aircraft Parts and Spares
Military Aircraft Retrofit Programs
Naval Aviation Support Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs due to no competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to BELL BOEING JOINT PROJECT OFFICE. V-22 CONVERSION AREA HARNESS (CAH) STEP 2 FMS NRE, BASE AND SUPPLEMENTAL KITS-RETROFIT, AND INTERIM 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 $29.7 million.

What is the period of performance?

Start: 2021-02-05. End: 2026-03-31.

What is the historical spending trend for V-22 conversion area harness components and related services?

Analyzing historical spending trends for this specific component is challenging without access to detailed contract databases beyond this single award. However, the V-22 program has been in service for many years, undergoing various upgrades and requiring ongoing maintenance. Spending on spares and retrofits is typically cyclical, increasing during periods of fleet expansion, major upgrade initiatives, or when specific component lifecycles necessitate replacement. The current award, covering NRE, kits, and spares over an 1880-day period, suggests a significant, planned investment in the V-22's sustainment and modernization, likely reflecting ongoing operational demands and the need to address obsolescence or performance enhancements for this unique aircraft.

How does the pricing of this contract compare to similar sole-source awards for aerospace components?

Directly comparing pricing for sole-source awards is inherently difficult due to the lack of competitive benchmarks. The 'fair and reasonable' price determination for sole-source contracts relies on various methods, such as historical pricing, catalog prices, or independent government cost estimates. Without access to the contractor's cost breakdown or detailed justification for the sole-source award, it's impossible to definitively state if this contract's pricing is optimal. However, the absence of competition means the government cannot leverage multiple bids to ensure the lowest possible price. The $29.7 million value over approximately five years for NRE, kits, and spares indicates a significant investment, and scrutiny would focus on whether the government received adequate justification for this price point in lieu of competition.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

Key performance indicators for this contract would likely revolve around delivery schedules for NRE, kits, and spares, as well as the quality and reliability of the delivered components. Meeting the firm fixed-price terms and adhering to the specified performance standards for the V-22 harness and kits are critical. Risk mitigation strategies would include robust government oversight of production and delivery, quality assurance inspections, and potentially performance bonds. Given the sole-source nature, the government would also focus on ensuring the contractor maintains adequate production capacity and technical expertise throughout the contract duration. Potential risks include supply chain disruptions, technical challenges during NRE, and ensuring long-term supportability of the components.

What is the contractor's track record with the V-22 program and similar defense contracts?

Bell Boeing Joint Project Office is intrinsically linked to the V-22 Osprey program, as they are the primary developers and manufacturers of the aircraft. Their track record with the V-22 is extensive, encompassing development, production, and sustainment activities since the program's inception. They possess unique knowledge and capabilities related to the V-22's complex systems, including its tiltrotor technology. For similar defense contracts, Bell and Boeing (as parent companies) have a long history of performing large-scale aerospace and defense manufacturing and support services. Their experience suggests a high level of technical proficiency and program management capability, which is often a prerequisite for sole-source awards on critical platforms like the V-22.

What is the potential impact of this contract on the future sustainment and modernization of the V-22 fleet?

This contract is directly aimed at enhancing the future sustainment and modernization of the V-22 fleet. The inclusion of Non-Recurring Engineering (NRE) suggests the development of improved or updated components, while the base and supplemental kits indicate planned retrofits to enhance existing aircraft. The provision of interim spares ensures that operational V-22s can be maintained and repaired without significant downtime. By addressing these critical areas, the contract contributes to extending the operational lifespan of the V-22, improving its reliability, and potentially incorporating new capabilities or addressing obsolescence issues, thereby ensuring the fleet remains a viable asset for the Department of Defense.

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: $29,878,058

Exercised Options: $29,734,390

Current Obligation: $29,734,390

Subaward Activity

Number of Subawards: 51

Total Subaward Amount: $11,720,533

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