DoD Awards $8.28M for V-22 Production Line Shutdown Analysis, Lacking Competition
Contract Overview
Contract Amount: $8,277,072 ($8.3M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2026-03-31
Contract Duration: 915 days
Daily Burn Rate: $9.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-RECURRING ENGINEERING FOR ANALYSIS OF V-22 PRODUCTION LINE SHUTDOWN
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $8.3 million to BELL BOEING JOINT PROJECT OFFICE for work described as: NON-RECURRING ENGINEERING FOR ANALYSIS OF V-22 PRODUCTION LINE SHUTDOWN Key points: 1. Significant investment in analyzing production line shutdown for a major defense asset. 2. Sole-source award raises questions about price discovery and potential cost overruns. 3. High risk associated with complex engineering analysis and potential for schedule delays. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not carefully managed. Benchmarking against similar non-recurring engineering contracts for major defense platforms is difficult due to the unique nature of production line shutdown analysis.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, and the government has limited leverage to negotiate favorable terms.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for this critical analysis, potentially diverting funds from other defense priorities.
Public Impact
Taxpayers may bear higher costs due to the absence of competitive bidding. The analysis is crucial for future defense program planning and cost estimation. Potential for delays in the analysis could impact future V-22 program decisions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Potential for schedule overruns
Positive Signals
- Essential analysis for future defense planning
- Experienced contractor likely involved
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area can be highly variable, dependent on specific program needs and lifecycle stages, making broad benchmarks challenging.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this contract. Given the specialized nature of the work and the sole-source award, it is unlikely that small businesses were significantly involved.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be critical to ensure the cost-plus fixed fee contract is managed effectively and the analysis meets its objectives within the allocated budget and timeline.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Potential for cost overruns
- Schedule risk
- Lack of defined performance metrics
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 $8.3 million to BELL BOEING JOINT PROJECT OFFICE. NON-RECURRING ENGINEERING FOR ANALYSIS OF V-22 PRODUCTION LINE SHUTDOWN
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 $8.3 million.
What is the period of performance?
Start: 2023-09-28. End: 2026-03-31.
What is the estimated cost savings or efficiency gain expected from this analysis?
The provided data does not specify the expected outcomes or quantifiable benefits of the non-recurring engineering analysis. Typically, such analyses aim to identify cost-saving measures, optimize future production processes, or inform strategic decisions regarding program continuation or termination. Without this information, the value proposition remains unclear.
What are the specific risks associated with analyzing a production line shutdown for the V-22?
Risks include the complexity of dismantling a major aerospace production line, potential for unforeseen technical challenges, inaccurate cost estimations for the shutdown process, and the possibility of schedule delays impacting future program decisions. The analysis must accurately capture all associated costs and logistical hurdles.
How will the effectiveness of this analysis be measured?
Effectiveness will likely be measured by the completeness and accuracy of the final report, its adherence to the defined scope of work, and its utility in informing subsequent decisions regarding the V-22 program. Timeliness of delivery and the identification of actionable insights for cost reduction or process improvement will also be key metrics.
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, 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: $8,277,072
Exercised Options: $8,277,072
Current Obligation: $8,277,072
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001922G0002
IDV Type: BOA
Timeline
Start Date: 2023-09-28
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-12-17
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