DoD's $47.1M V-22 Gearbox Monitoring System contract awarded non-competitively to Bell Boeing

Contract Overview

Contract Amount: $47,107,927 ($47.1M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2023-02-01

End Date: 2026-12-31

Contract Duration: 1,429 days

Daily Burn Rate: $33.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NON-RECURRING ENGINEERING TO QUALIFY A V-22 GEARBOX VIBRATION MONITORING (GVM)/OSPREY DRIVE SYSTEM SAFETY AND HEALTH INFORMATION (ODSSHI)SYSTEM.

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $47.1 million to BELL BOEING JOINT PROJECT OFFICE for work described as: NON-RECURRING ENGINEERING TO QUALIFY A V-22 GEARBOX VIBRATION MONITORING (GVM)/OSPREY DRIVE SYSTEM SAFETY AND HEALTH INFORMATION (ODSSHI)SYSTEM. Key points: 1. Contract awarded non-competitively, raising questions about price discovery and potential value. 2. Focus on V-22 Osprey drive system safety and health, critical for fleet readiness. 3. Long performance period (approx. 4 years) suggests a sustained need for this specialized service. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 5. Awardee is Bell Boeing Joint Project Office, the prime contractor for the V-22 program. 6. Geographic location of performance is Texas, a hub for aerospace manufacturing.

Value Assessment

Rating: questionable

The contract's value of $47.1 million for non-recurring engineering and system qualification is difficult to benchmark without detailed cost breakdowns. Given the sole-source nature, there's a risk that the pricing may not reflect competitive market rates. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not closely managed, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without competitive bids, it's challenging to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Bell Boeing Joint Project Office. This indicates that the government determined only this specific entity could provide the required services, likely due to proprietary knowledge, existing integration with the V-22 platform, or unique capabilities. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from multiple vendors.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government's ability to negotiate the best possible price was limited without alternative offers.

Public Impact

Enhances the safety and health monitoring capabilities of the V-22 Osprey drive system. Directly benefits the U.S. Department of the Navy and the broader Department of Defense by supporting a critical aircraft platform. Aims to improve the reliability and operational readiness of the V-22 fleet. Supports specialized engineering and technical expertise within the aerospace sector, particularly related to the V-22 program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for innovation.
Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of transparency in the non-competitive procurement process.
Potential for contractor lock-in due to specialized nature of V-22 systems.

Positive Signals

Addresses critical safety and health monitoring for the V-22 Osprey.
Awardee is the established prime contractor, implying deep program knowledge.
Long-term performance period suggests sustained commitment to V-22 readiness.
Focus on non-recurring engineering for qualification is a necessary step for system integration.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized niche within the broader aerospace industry. The V-22 Osprey is a unique tiltrotor aircraft, and its components and support systems require highly specialized engineering. Spending in this area is often characterized by limited suppliers and high barriers to entry, especially for unique platforms like the V-22. Comparable spending benchmarks are difficult to establish due to the platform's specificity and the non-competitive nature of this award.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by the 'sb' field being false. The awardee, Bell Boeing Joint Project Office, is a large joint venture. There is no explicit information regarding subcontracting plans for small businesses within this specific award. The nature of specialized aerospace engineering for a platform like the V-22 may limit opportunities for broad small business subcontracting, though specific components or services could potentially be sourced from smaller firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are allowable and reasonable. Transparency may be limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

V-22 Osprey Sustainment Programs
DoD Aircraft Parts Manufacturing
Aerospace Engineering Services
Defense Logistics Agency (DLA) Aviation

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.1 million to BELL BOEING JOINT PROJECT OFFICE. NON-RECURRING ENGINEERING TO QUALIFY A V-22 GEARBOX VIBRATION MONITORING (GVM)/OSPREY DRIVE SYSTEM SAFETY AND HEALTH INFORMATION (ODSSHI)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 $47.1 million.

What is the period of performance?

Start: 2023-02-01. End: 2026-12-31.

What is the specific technical scope of the 'non-recurring engineering' for the V-22 Gearbox Vibration Monitoring (GVM) system?

The 'non-recurring engineering' (NRE) for the V-22 Gearbox Vibration Monitoring (GVM) system likely refers to the initial design, development, testing, and qualification activities required to integrate this new monitoring system into the V-22 Osprey's drive system. This could include activities such as defining system requirements, designing hardware and software components, conducting laboratory testing to validate performance under various conditions, performing flight testing to ensure compatibility and effectiveness in an operational environment, and obtaining necessary certifications or approvals for fleet-wide implementation. The goal is to establish a reliable and effective system for detecting and analyzing gearbox vibrations, which is crucial for predictive maintenance and preventing catastrophic failures. The $47.1 million figure covers these upfront, one-time engineering efforts rather than ongoing production or maintenance.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar aerospace engineering services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined at the outset, particularly in research, development, and complex engineering projects like qualifying a new system. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This differs from fixed-price contracts, where the price is set regardless of the final cost, offering more cost certainty to the buyer but potentially higher risk for the contractor. It also differs from Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts, which include mechanisms to adjust the fee based on performance against cost, schedule, or technical targets. For specialized engineering like this, CPFF can be appropriate if the government wants to ensure the contractor is motivated to complete the work without being overly constrained by a fixed price that might not account for unforeseen technical challenges. However, it places a significant burden on the government to meticulously monitor and audit costs to prevent overruns.

What are the potential risks associated with awarding a sole-source contract for critical V-22 components?

Awarding a sole-source contract for critical V-22 components, such as the gearbox vibration monitoring system, carries several risks. Firstly, the absence of competition means the government likely pays a higher price than it would in a competitive environment, as there is no market pressure to reduce costs. Secondly, it can stifle innovation, as there is less incentive for the sole provider to develop more efficient or advanced solutions when they are guaranteed the contract. Thirdly, it creates a dependency on a single supplier, potentially leading to 'vendor lock-in' and making it difficult or costly to switch providers in the future. Finally, without competitive benchmarking, it is harder for the government to objectively assess whether the contractor's performance and pricing are reasonable and represent good value for taxpayer money. This necessitates enhanced government oversight to mitigate these risks.

What is the historical spending pattern for V-22 gearbox monitoring or similar safety systems within the Department of Defense?

Historical spending data for V-22 gearbox monitoring or highly specific safety systems like this is often fragmented and difficult to aggregate publicly, especially when contracts are sole-sourced or part of larger platform sustainment efforts. However, the V-22 program itself has seen significant investment over its lifecycle, reflecting its complex design and operational demands. Spending on specialized monitoring and health management systems is a critical aspect of maintaining such advanced aircraft. While direct comparisons for this specific NRE contract are scarce, broader DoD spending on aviation component R&D, qualification, and sustainment runs into billions annually. The $47.1 million for this particular qualification effort, while substantial, should be viewed within the context of the overall V-22 program's multi-billion dollar budget and the high cost associated with ensuring the safety and reliability of unique military platforms.

What is the track record of Bell Boeing Joint Project Office in delivering complex aerospace systems for the DoD?

Bell Boeing Joint Project Office, a partnership between Bell Helicopter (Textron) and Boeing, has a long and extensive track record as the prime contractor responsible for the design, production, and sustainment of the V-22 Osprey tiltrotor aircraft. The V-22 program itself has been a major undertaking, involving significant technological innovation and facing developmental challenges. Despite early setbacks and cost overruns during its development phase, the V-22 has evolved into a critical asset for the U.S. Marine Corps, Air Force Special Operations Command, and the U.S. Navy. Bell Boeing has demonstrated the capability to deliver and support this complex platform through numerous production contracts and sustainment efforts. Their deep institutional knowledge of the V-22 system makes them a logical, albeit sole-source, provider for specialized engineering tasks related to its components and safety systems.

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: N0001923U0169

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: $47,107,927

Exercised Options: $47,107,927

Current Obligation: $47,107,927

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $8,683,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001922G0002

IDV Type: BOA

Timeline