DoD Navy Awards $14.1M for CMV-22 IASE RDT&E, Sole-Source Contract Raises Concerns
Contract Overview
Contract Amount: $14,146,891 ($14.1M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2024-11-15
End Date: 2029-11-14
Contract Duration: 1,825 days
Daily Burn Rate: $7.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CMV-22 IASE RDT&E AND NRE
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $14.1 million to BELL BOEING JOINT PROJECT OFFICE for work described as: CMV-22 IASE RDT&E AND NRE Key points: 1. Significant RDT&E funding for the CMV-22 program. 2. Sole-source award to Bell Boeing Joint Project Office limits competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on advanced aircraft parts and auxiliary equipment manufacturing.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar RDT&E contracts for complex aircraft systems is difficult without more data, but the sole-source nature suggests potential for pricing inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to the Bell Boeing Joint Project Office. This lack of competition limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.
Public Impact
Impacts the operational readiness and future capabilities of the CMV-22 Osprey aircraft. Affects the aerospace manufacturing sector, specifically in advanced aircraft components. Raises questions about the justification for sole-source procurement in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Supports critical RDT&E for a key military aircraft
- Long-term contract duration ensures program stability
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on research, development, testing, and evaluation for aircraft components. Spending benchmarks for RDT&E on major defense platforms are highly variable, but significant sole-source awards warrant scrutiny.
Small Business Impact
The data provided does not indicate any specific involvement or benefit for small businesses in this sole-source contract. The award is to a joint project office, suggesting larger prime contractors are involved.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Defense to ensure cost reasonableness and effective execution of RDT&E objectives. Accountability for program milestones and budget adherence will be critical.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition
- Cost Plus Fixed Fee contract type can lead to cost overruns
- Potential for reduced price discovery
- Limited transparency on RDT&E justification
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.1 million to BELL BOEING JOINT PROJECT OFFICE. CMV-22 IASE RDT&E AND NRE
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 $14.1 million.
What is the period of performance?
Start: 2024-11-15. End: 2029-11-14.
What is the specific justification for awarding this RDT&E contract on a sole-source basis, and have alternative competitive strategies been fully explored?
The justification for sole-source procurement typically stems from unique capabilities, proprietary technology, or the need for continuity with existing systems. For the CMV-22 IASE RDT&E, the justification likely relates to the specialized nature of the Integrated Aircraft Support Equipment and its integration with the existing Osprey platform. However, a thorough review should confirm that no other vendors could meet the requirements or that a competitive process would be prohibitively expensive or time-consuming.
How will the Department of the Navy ensure cost control and value for money under the Cost Plus Fixed Fee structure for this sole-source RDT&E effort?
Ensuring cost control under a CPFF sole-source contract requires stringent oversight, detailed performance metrics, and regular audits. The Navy must closely monitor all incurred costs, scrutinize the fixed fee against performance milestones, and actively manage the scope of work to prevent unnecessary expansion. Independent cost estimates and benchmarking against similar RDT&E efforts, where possible, will be crucial for validating expenditures and ensuring taxpayer value.
What are the long-term implications of this sole-source RDT&E funding on the overall lifecycle cost and sustainment strategy of the CMV-22 aircraft?
Sole-source RDT&E funding can set a precedent for future sole-source sustainment and upgrade contracts, potentially locking the government into higher long-term costs. It may also stifle innovation from potential competitors in the aftermarket. The Navy should consider how this RDT&E investment aligns with a broader strategy that encourages future competition for sustainment and upgrades to mitigate lifecycle cost escalations.
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: 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: $24,615,188
Exercised Options: $24,615,188
Current Obligation: $14,146,891
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: 2024-11-15
Current End Date: 2029-11-14
Potential End Date: 2029-11-14 00:00:00
Last Modified: 2025-12-16
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