DoD Navy Awards $19.7M Non-Recurring Engineering Contract to Bell Boeing Joint Project Office
Contract Overview
Contract Amount: $19,714,711 ($19.7M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2028-03-31
End Date: 2028-05-18
Contract Duration: 48 days
Daily Burn Rate: $410.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-RECURRING ENGINEERING
Plain-Language Summary
Department of Defense obligated $19.7 million to BELL BOEING JOINT PROJECT OFFICE for work described as: NON-RECURRING ENGINEERING Key points: 1. Significant investment in non-recurring engineering for aircraft parts. 2. Sole-source award to Bell Boeing raises questions about competition. 3. Contract duration extends to May 2028, indicating long-term project. 4. Cost-plus-fixed-fee structure may incentivize cost overruns.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of readily available benchmark data for this specific non-recurring engineering effort, makes a direct pricing assessment difficult. The awarded amount of $19.7M for a 48-month duration needs further scrutiny against similar specialized engineering projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This procurement method limits price discovery and may result in higher costs for the government compared to a fully competitive process.
Taxpayer Impact: The sole-source nature of this award potentially leads to higher taxpayer costs due to the absence of competitive pressure on pricing.
Public Impact
Taxpayers may be paying a premium due to the lack of competition. The long-term nature of the contract suggests a critical, ongoing need for these engineering services. Transparency in the justification for a sole-source award is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of competition
Positive Signals
- Essential engineering for naval aircraft
- Clear end date for project
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on specialized engineering for aircraft components. Spending in this area is often driven by unique technological requirements and long development cycles, with benchmarks varying widely based on complexity.
Small Business Impact
The awardee, Bell Boeing Joint Project Office, is a large entity, and there is no indication that small businesses were involved in this specific sole-source contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source justification requires robust oversight to ensure it is indeed necessary and that the pricing is fair. Post-award monitoring of costs and performance will be critical 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
- Potential for cost overruns
- Limited transparency in sole-source justification
- Contract type may not incentivize cost efficiency
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.7 million to BELL BOEING JOINT PROJECT OFFICE. NON-RECURRING ENGINEERING
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 $19.7 million.
What is the period of performance?
Start: 2028-03-31. End: 2028-05-18.
What is the specific justification for awarding this Non-Recurring Engineering contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The government should have conducted a price analysis, potentially using historical data, cost realism assessments, or comparison to similar, albeit not identical, contracts to determine fairness and reasonableness.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for Non-Recurring Engineering, particularly in terms of cost control and contractor incentive?
CPFF contracts carry inherent risks for cost control as the contractor is reimbursed for all allowable costs plus a fixed fee. While the fixed fee incentivizes completion, it doesn't directly incentivize cost savings. This structure can lead to cost overruns if not meticulously monitored, as the contractor's profit is fixed regardless of the final cost.
How will the effectiveness of this Non-Recurring Engineering effort be measured, and what are the key performance indicators (KPIs) to ensure it meets the Department of the Navy's requirements?
Effectiveness will likely be measured through milestones, technical performance metrics, delivery schedules, and adherence to specifications. KPIs could include successful design validation, prototype performance, integration testing results, and timely delivery of engineering data packages. Regular reviews and acceptance testing by the Navy will be crucial.
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 AVAILABLE FOR COMPETITION
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: $19,714,711
Exercised Options: $19,714,711
Current Obligation: $19,714,711
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $728,979
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
Start Date: 2028-03-31
Current End Date: 2028-05-18
Potential End Date: 2028-05-18 00:00:00
Last Modified: 2025-08-25
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