DoD's Navy Awards $26.7M for Software Corrections, Lacking Competition
Contract Overview
Contract Amount: $26,714,124 ($26.7M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2029-12-31
Contract Duration: 1,921 days
Daily Burn Rate: $13.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: COMMON SOFTWARE CORRECTIONS
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $26.7 million to BELL BOEING JOINT PROJECT OFFICE for work described as: COMMON SOFTWARE CORRECTIONS Key points: 1. Significant contract value of $26.7 million for software corrections. 2. No competition was utilized for this award. 3. Potential risk associated with a lack of competitive bidding. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed tightly. Without a competitive benchmark, assessing the value for money is difficult.
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.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these software corrections.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense is procuring essential software corrections. The contract duration extends over five years, indicating a long-term need. The awardee is located in Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Essential software corrections being addressed
- Awarded by a major agency (DoD)
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on defense needs and technological advancements. Benchmarks are difficult without specific comparable contracts.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, either as prime contractors or subcontractors.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding competitive sourcing strategies. Further review of the justification for sole-sourcing is warranted.
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 (CPFF)
- No clear justification for sole-sourcing
- Long contract duration without competitive review
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 $26.7 million to BELL BOEING JOINT PROJECT OFFICE. COMMON SOFTWARE CORRECTIONS
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 $26.7 million.
What is the period of performance?
Start: 2024-09-27. End: 2029-12-31.
What is the justification for not competing this significant software correction contract?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as a lack of available sources, urgent and compelling needs, or specific proprietary technology. Without this information, it's impossible to assess if the non-competitive award was appropriate or if it represents a missed opportunity for cost savings.
What are the risks associated with a Cost Plus Fixed Fee contract for software corrections?
Cost Plus Fixed Fee (CPFF) contracts can pose risks when applied to software corrections, especially without strong oversight. The 'cost-plus' element means the government pays the contractor's actual costs plus a fixed fee. If costs escalate due to scope creep, inefficiencies, or poor estimation, the government bears the burden. The fixed fee provides less incentive for the contractor to control costs compared to fixed-price contracts.
How does the lack of competition impact the long-term effectiveness of software maintenance for the Navy?
The lack of competition for these software corrections could impact long-term effectiveness by potentially leading to vendor lock-in and reduced innovation. Without competitive pressure, the incumbent contractor may have less incentive to proactively improve the software or offer cost-effective solutions. This could result in a system that becomes more expensive and less adaptable over time, potentially hindering the Navy's operational capabilities.
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
Solicitation ID: N0001923R0152
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: $28,279,897
Exercised Options: $26,714,124
Current Obligation: $26,714,124
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $335,191
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: 2024-09-27
Current End Date: 2029-12-31
Potential End Date: 2029-12-31 00:00:00
Last Modified: 2025-08-18
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