DoD's $30.2M sole-source contract for aircraft parts awarded to Bell Boeing Joint Project Office

Contract Overview

Contract Amount: $30,212,154 ($30.2M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2023-12-29

End Date: 2028-12-28

Contract Duration: 1,826 days

Daily Burn Rate: $16.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IASE DLPU A-KITS AND INSTALLS

Place of Performance

Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to BELL BOEING JOINT PROJECT OFFICE for work described as: IASE DLPU A-KITS AND INSTALLS Key points: 1. Contract awarded without competition, raising questions about potential cost savings and market fairness. 2. The fixed-price contract structure aims to control costs, but the lack of competition limits price discovery. 3. Performance period of five years suggests a long-term need for these specific aircraft parts. 4. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a specialized sector. 5. Awarded by the Department of the Navy, indicating a critical need within naval aviation support. 6. The absence of small business set-asides or subcontracting plans may limit broader economic participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific nature of the 'IASE DLPU A-KITS AND INSTALLS'. Without competitive bids, it's difficult to ascertain if the $30.2 million represents a fair market price. The firm fixed-price (FFP) contract type is generally favorable for cost control, but the lack of competition means the government cannot leverage market forces to drive down prices. Comparisons to similar sole-source contracts for specialized aircraft components would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, the Bell Boeing Joint Project Office, was solicited. This approach is typically used when a unique capability or proprietary technology is required, or in cases of urgent and compelling need where competition is not feasible. The lack of multiple bidders means the government did not benefit from a competitive bidding process, which could have led to lower prices and potentially innovative solutions from a wider range of suppliers.

Taxpayer Impact: For taxpayers, a sole-source award means the absence of competitive pressure to secure the best possible price. This can potentially lead to higher costs compared to a competed contract, as the government relies on the awarded contractor's pricing without market validation.

Public Impact

The primary beneficiaries are the Department of the Navy and its aviation units, ensuring the availability of critical aircraft parts. Services delivered include the provision and installation of 'IASE DLPU A-KITS AND INSTALLS,' essential for maintaining specific aircraft operational readiness. The geographic impact is primarily within the operational areas of the U.S. Navy, potentially including naval bases and deployed fleets. Workforce implications may include specialized technicians for installation and maintenance, likely employed by the contractor or its direct partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other qualified businesses to compete for this contract.
Lack of transparency in pricing due to no competitive bidding process.
Potential for higher costs for taxpayers without market-driven price discovery.
No explicit small business subcontracting goals mentioned, potentially limiting small business participation.

Positive Signals

Firm fixed-price contract type helps in budget predictability and cost control.
Award to a joint project office suggests a long-standing relationship and potential for specialized expertise.
Long performance period indicates a stable supply chain for critical components.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a niche but vital part of the aerospace industry, supporting the operational readiness of military and civilian aircraft. This contract, valued at over $30 million, represents a significant, albeit specific, investment within this sector. The market for specialized military aircraft components is often characterized by high barriers to entry, proprietary technology, and long-standing relationships between manufacturers and defense agencies, which can sometimes lead to sole-source procurements.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. The award to the Bell Boeing Joint Project Office, a large entity, suggests that the primary contractor is not a small business. This means that opportunities for small businesses to participate in this specific contract, either as prime contractors or subcontractors, are likely limited unless they are part of the larger contractor's supply chain without a formal set-aside requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods and services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Department of Defense Aircraft Procurement
Naval Aviation Maintenance and Sustainment
Specialized Aerospace Component Manufacturing
Sole-Source Defense Contracts

Risk Flags

Sole-source award may indicate a lack of market competition.
Potential for higher costs due to lack of competitive bidding.
Limited transparency in pricing and justification for sole-source award.
Absence of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to BELL BOEING JOINT PROJECT OFFICE. IASE DLPU A-KITS AND INSTALLS

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 $30.2 million.

What is the period of performance?

Start: 2023-12-29. End: 2028-12-28.

What is the specific nature of the 'IASE DLPU A-KITS AND INSTALLS' and why are they critical for naval aviation?

The 'IASE DLPU A-KITS AND INSTALLS' likely refers to specific kits and installation services for an Integrated Avionics System, Data Link Processing Unit, or a similar critical electronic warfare or communication system within naval aircraft. These systems are crucial for modern military aviation, enabling secure communication, advanced navigation, target identification, and electronic countermeasures. Their criticality stems from ensuring the operational effectiveness, safety, and survivability of naval aircraft in complex mission environments. Without these specific kits and their proper installation, certain aircraft platforms may be unable to perform their intended missions or could face significant operational limitations.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may pay more than it would in a fully competed scenario. Another risk is a lack of innovation, as there's less incentive for the sole provider to develop novel solutions or efficiencies. Furthermore, it can create a dependency on a single supplier, which could lead to supply chain vulnerabilities if that supplier faces production issues or financial instability. Finally, it raises concerns about fairness and equal opportunity for other potential suppliers in the market.

How does the firm fixed-price (FFP) contract type mitigate risks for the government in this sole-source scenario?

The firm fixed-price (FFP) contract type is beneficial for the government, even in a sole-source award, as it shifts the majority of the cost risk to the contractor. The contractor is obligated to deliver the specified 'IASE DLPU A-KITS AND INSTALLS' at the agreed-upon price, regardless of their actual costs incurred. This provides budget certainty for the Department of the Navy and protects against cost overruns that might occur if the contractor experiences unexpected expenses during production or installation. While it doesn't address the risk of paying a non-competitive price, it does ensure that the total expenditure for the defined scope of work remains fixed.

What is the historical spending pattern for similar 'IASE DLPU A-KITS AND INSTALLS' or related components by the Department of the Navy?

Analyzing historical spending for 'IASE DLPU A-KITS AND INSTALLS' is challenging without more specific product identifiers. However, the Department of the Navy historically spends billions annually on aircraft parts, maintenance, and upgrades. Contracts for specialized avionics, communication systems, and their associated kits and installation services are common. Given the sole-source nature and the $30.2 million value over five years, this contract appears to be for a specific, potentially high-value, or low-volume critical component or system upgrade. Without access to detailed procurement databases or specific part numbers, a precise historical spending comparison is not feasible, but it aligns with the Navy's ongoing investment in maintaining and modernizing its fleet's electronic and communication capabilities.

What is the track record of the Bell Boeing Joint Project Office as a government contractor, particularly for sole-source awards?

The Bell Boeing Joint Project Office is a well-established entity with a long history of supporting U.S. military aviation programs, particularly for the V-22 Osprey tiltrotor aircraft. As a joint venture between two major aerospace manufacturers, they possess significant expertise and production capabilities. They have been a consistent recipient of government contracts, including sole-source awards, often justified by the unique nature of the platforms they support and the specialized components or integrated systems involved. Their track record generally indicates a capacity to deliver complex aerospace products and services, though the specifics of their performance on past sole-source contracts, including pricing and efficiency, would require deeper analysis.

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, 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: $66,617,453

Exercised Options: $30,225,750

Current Obligation: $30,212,154

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $3,425,603

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