DoD Awards $209M for V-22 Flight Control NRE, Sole-Sourced
Contract Overview
Contract Amount: $209,424,517 ($209.4M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-06-30
Contract Duration: 1,734 days
Daily Burn Rate: $120.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: NON-RECURRING ENGINEERING (NRE)FOR V-22 FLIGHT CONTROL SYSTEM.
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $209.4 million to BELL BOEING JOINT PROJECT OFFICE for work described as: NON-RECURRING ENGINEERING (NRE)FOR V-22 FLIGHT CONTROL SYSTEM. Key points: 1. Significant investment in critical aircraft systems. 2. Sole-source award raises questions about price discovery. 3. Long contract duration (1734 days) may impact cost control. 4. Focus on Non-Recurring Engineering (NRE) suggests development phase.
Value Assessment
Rating: questionable
The contract is a Cost Plus Incentive Fee (CPIF) type, which can incentivize cost savings but also carries inherent risk in estimating NRE costs. Without competitive benchmarking, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for a substantial NRE contract raises concerns about taxpayer value and the potential for inflated costs.
Public Impact
Impacts the operational readiness and future development of the V-22 Osprey aircraft. Funds critical research and development for advanced flight control systems. Potential for long-term sustainment costs associated with the NRE.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of competition
Positive Signals
- Supports critical defense platform
- Focus on advanced technology
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically related to aircraft parts and auxiliary equipment. Benchmarks for NRE in this sector can vary widely based on complexity and technological innovation.
Small Business Impact
The awardee is Bell Boeing Joint Project Office, a large joint venture. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
Oversight will be crucial given the sole-source, cost-plus nature of the contract to ensure costs remain reasonable and deliverables meet requirements.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to cost-plus contract type.
- Lack of competitive pressure may lead to suboptimal pricing.
- Long contract duration increases exposure to changing economic conditions.
- Dependency on a single contractor for critical system development.
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 $209.4 million to BELL BOEING JOINT PROJECT OFFICE. NON-RECURRING ENGINEERING (NRE)FOR V-22 FLIGHT CONTROL SYSTEM.
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 $209.4 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-06-30.
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 or urgent needs. Without a competitive process, the Department of Defense must conduct thorough market research and price analyses to ensure the negotiated price is fair and reasonable, often relying on historical data or independent cost estimates.
How will the Cost Plus Incentive Fee structure be managed to control costs and ensure contractor performance on this NRE project?
Effective management of a CPIF contract requires clear definition of target costs, incentive targets, and sharing ratios. The government must closely monitor contractor expenditures, progress, and adherence to technical specifications to ensure the incentive structure drives desired outcomes and prevents cost overruns.
What is the long-term strategy for the V-22 flight control system beyond this NRE phase, and how does this investment align with it?
This NRE contract likely aims to upgrade or develop new capabilities for the V-22's flight control system. Understanding the long-term modernization plan for the V-22 fleet is essential to assess if this investment is strategically aligned and will yield sustained operational benefits.
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: N0001920R0026
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $214,370,309
Exercised Options: $214,370,309
Current Obligation: $209,424,517
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $497,555
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: 2021-09-30
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-11-25
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)