DoD Awards $4.88M for GPS M-Code Integration, Lacking Competition
Contract Overview
Contract Amount: $4,877,711 ($4.9M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-08-30
Contract Duration: 1,795 days
Daily Burn Rate: $2.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NRE FOR GPS M-CODE INTEGRATION FOLLOW ON
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $4.9 million to BELL BOEING JOINT PROJECT OFFICE for work described as: NRE FOR GPS M-CODE INTEGRATION FOLLOW ON Key points: 1. Significant contract value for specialized integration services. 2. Sole-source award raises concerns about price discovery and potential overpayment. 3. Long performance period (nearly 5 years) increases risk exposure. 4. Focus on critical GPS technology highlights national security implications.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not carefully managed. Without competitive bidding, it's difficult to benchmark pricing against similar services, raising concerns about value for money.
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 may result in the government paying a premium compared to a competitive environment.
Taxpayer Impact: The lack of competition for this significant contract value means taxpayers may not be receiving the best possible price, potentially leading to inefficient use of funds.
Public Impact
Ensures continued modernization of critical GPS capabilities for national security. Potential for increased costs due to lack of competitive pressure. Long-term contract duration may impact flexibility in adopting new technologies. Supports specialized manufacturing and integration expertise within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long performance period
- Lack of small business participation
Positive Signals
- Supports critical national security technology
- Long-term sustainment of essential capabilities
Sector Analysis
This contract falls within the aerospace and defense sector, specifically related to electronic systems and integration. Spending in this area is often characterized by high R&D costs and specialized manufacturing requirements, with competition varying significantly based on technology maturity and program specifics.
Small Business Impact
The data indicates no small business participation in this contract. Given the specialized nature of the work and the sole-source award, opportunities for small businesses may have been limited or overlooked.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost controls are effective and the fixed fee is reasonable. Regular performance reviews and audits will be crucial for accountability.
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 increases financial risk.
- Long performance period extends exposure to potential issues.
- No small business participation noted.
- Potential for scope creep in a sole-source environment.
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 $4.9 million to BELL BOEING JOINT PROJECT OFFICE. NRE FOR GPS M-CODE INTEGRATION FOLLOW ON
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 $4.9 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-08-30.
What specific justifications were provided for the sole-source award, and do they align with federal procurement regulations for non-competitive contracts?
Federal regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the justification documentation is necessary to confirm its validity and ensure it meets the stringent criteria for non-competitive procurement, thereby safeguarding taxpayer interests.
How will the government ensure cost reasonableness and prevent potential overruns in this Cost Plus Fixed Fee contract without competitive benchmarks?
Effective cost management will rely on robust government oversight, including detailed cost analysis, regular audits of contractor expenditures, and strict adherence to the contract's ceiling. Negotiating a fair fixed fee based on realistic cost estimates and profit margins, and implementing strong performance metrics, are crucial to mitigating risks associated with cost-plus contracts.
What is the long-term strategy for GPS M-Code integration, and could future requirements be met through more competitive contracting vehicles?
Understanding the long-term roadmap for GPS M-Code integration is essential. If this is a foundational step, future phases or follow-on requirements should be planned with competition in mind. Exploring options like phased competitive procurements or breaking down future work into smaller, more contestable packages could enhance value and foster innovation.
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: 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: $18,489,871
Exercised Options: $15,931,048
Current Obligation: $4,877,711
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: 2026-08-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2026-01-12
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