DoD Awards $60.9M for V-22 Rotor Hubsprings Kits, Lacking Competition
Contract Overview
Contract Amount: $60,886,679 ($60.9M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2028-12-31
Contract Duration: 1,553 days
Daily Burn Rate: $39.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: V-22 FMS PROP ROTOR HUBSPRINGS KITS
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $60.9 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 FMS PROP ROTOR HUBSPRINGS KITS Key points: 1. Significant contract value for specialized aircraft parts. 2. Sole-source award raises concerns about price discovery. 3. Long contract duration suggests ongoing need. 4. Focus on critical components for V-22 Osprey aircraft.
Value Assessment
Rating: questionable
The contract value of $60.9 million for rotor hubsprings kits is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized aircraft components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there's no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this $60.9 million contract may result in taxpayers paying more than necessary for essential V-22 aircraft parts.
Public Impact
Ensures continued operational readiness of the V-22 Osprey fleet. Supports critical maintenance and repair activities for a key military asset. Potential for increased costs due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Ensures supply of critical components
- Supports V-22 operational readiness
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining complex military aviation platforms like the V-22 Osprey.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'sb' and 'ss' fields are false. Further analysis would be needed to determine if small businesses had an opportunity to participate.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for a sole-source award and ensure fair pricing and value for taxpayer dollars.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration without re-competition
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.9 million to BELL BOEING JOINT PROJECT OFFICE. V-22 FMS PROP ROTOR HUBSPRINGS KITS
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 $60.9 million.
What is the period of performance?
Start: 2024-09-30. End: 2028-12-31.
What is the justification for the sole-source award of this V-22 rotor hubsprings kits contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available sources meeting the government's requirements. Without specific documentation, it's presumed that Bell Boeing possesses the sole ability to produce these specific kits, necessitating a direct award to ensure continued V-22 operational support.
What is the potential risk associated with the long contract duration and lack of competition?
The primary risk is inflated costs due to the absence of competitive pressure. A long duration (over 4 years) without competition could allow for price creep over time. Additionally, it limits opportunities for other manufacturers to innovate or offer more cost-effective solutions, potentially hindering market development.
How does this contract contribute to the overall effectiveness of the V-22 program?
This contract is vital for maintaining the operational effectiveness of the V-22 Osprey fleet by ensuring a steady supply of critical rotor hubsprings kits. These components are essential for flight safety and performance, directly impacting the aircraft's readiness for its diverse missions.
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: $60,886,679
Exercised Options: $60,886,679
Current Obligation: $60,886,679
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $33,817,282
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: 2024-09-30
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2025-12-05
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