DoD awards $26.1M for V-22 FMS kits to Japan, bypassing competition

Contract Overview

Contract Amount: $26,100,793 ($26.1M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2025-01-22

End Date: 2026-12-19

Contract Duration: 696 days

Daily Burn Rate: $37.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PURCHASE A1 ODSSHI KITS FOR THE GOVERNMENT OF JAPAN V-22 FMS.

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to BELL BOEING JOINT PROJECT OFFICE for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PURCHASE A1 ODSSHI KITS FOR THE GOVERNMENT OF JAPAN V-22 FMS. Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery. 2. Significant award for specialized aircraft parts, indicating critical supply chain needs. 3. Limited competition may lead to higher costs for taxpayers. 4. Performance period spans nearly two years, suggesting a substantial requirement. 5. Awardee is a joint venture with established ties to V-22 program. 6. Geographic location of performance is Texas.

Value Assessment

Rating: questionable

The contract value of $26.1 million for A1 ODSSHI kits for the V-22 Foreign Military Sales (FMS) program to Japan is difficult to benchmark without comparable sole-source awards. Given the lack of competition, it is challenging to assess if the pricing represents fair value for money. The fixed-fee structure suggests some cost control, but the absence of competitive bids prevents a robust value-for-money 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 was solicited. This approach is typically used when a unique capability or proprietary technology is required, or in cases of urgent need. The lack of multiple bidders means there was no competitive pressure to drive down prices, potentially resulting in a less favorable outcome for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competition, which can result in higher costs for taxpayers compared to competitively awarded contracts.

Public Impact

The primary beneficiary is the government of Japan, receiving critical components for its V-22 aircraft through the FMS program. The contract delivers specialized aircraft parts (A1 ODSSHI kits) essential for the operational readiness of the V-22 Osprey tiltrotor aircraft. The geographic impact is primarily within Texas, where the work will be performed. The award supports specialized manufacturing roles within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of transparency in the procurement process due to no-bid award.
Potential for cost overruns if not closely monitored due to fixed-fee structure without competitive baseline.

Positive Signals

Awardee is a joint venture with established expertise in V-22 components.
Fixed-fee contract structure provides some cost predictability.
Delivery order supports a critical FMS program, enhancing international partnerships.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts. The market for specialized V-22 components is likely concentrated among a few key suppliers due to the unique nature of the aircraft. Comparable spending benchmarks would typically involve other FMS procurements for similar high-value, specialized military hardware.

Small Business Impact

The contract data indicates that small business participation was not a stated requirement or set-aside. As a sole-source award to a joint venture, it is unlikely that significant subcontracting opportunities will be directed towards small businesses unless it is part of the prime contractor's internal strategy. This award does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy, which awarded the contract. Accountability measures will be tied to the terms of the Cost Plus Fixed Fee (CPFF) contract, including delivery schedules and quality standards. Transparency may be limited due to the sole-source nature of the award, but contract details should be available through federal procurement databases.

Related Government Programs

V-22 Osprey Program
Foreign Military Sales (FMS)
Department of Defense Aircraft Procurement
Aerospace Component Manufacturing

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for unbenchmarked pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to BELL BOEING JOINT PROJECT OFFICE. THE PURPOSE OF THIS DELIVERY ORDER IS TO PURCHASE A1 ODSSHI KITS FOR THE GOVERNMENT OF JAPAN V-22 FMS.

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 $26.1 million.

What is the period of performance?

Start: 2025-01-22. End: 2026-12-19.

What is the specific function and importance of the A1 ODSSHI kits for the V-22 aircraft?

The A1 ODSSHI kits are specialized components crucial for the operational functionality and maintenance of the V-22 Osprey tiltrotor aircraft. While the exact technical specifications of 'ODSSHI' are not publicly detailed, these kits likely pertain to essential systems such as avionics, power systems, or structural integrity. Their procurement through a Foreign Military Sales (FMS) program for Japan underscores the V-22's role in international defense partnerships and the need for continuous support to maintain fleet readiness and operational capability.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The contract was awarded on a sole-source basis, as indicated by the data, likely due to the specialized nature of the A1 ODSSHI kits and the established relationship with the Bell Boeing Joint Project Office, which is a prime contractor for the V-22 program. Often, sole-source awards for specific aircraft components are justified by proprietary technology, unique manufacturing capabilities, or the need for seamless integration with existing platforms. In FMS cases, the procuring country may also have specific requirements or preferences that limit the pool of eligible suppliers.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of $26.1 million is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the government may not achieve the best possible value for its investment. Other risks include a lack of innovation that might arise from competition and potential delays if the sole provider encounters production issues. Effective oversight and negotiation are critical to mitigate these risks and ensure fair pricing and timely delivery.

How does this contract fit into the broader context of US defense exports and FMS programs?

This contract is a component of the United States' Foreign Military Sales (FMS) program, which facilitates the sale of defense articles and services to allied nations. By providing essential components for Japan's V-22 fleet, the US is supporting a key ally's military capabilities and strengthening bilateral defense ties. Such FMS contracts are vital for maintaining interoperability between US and allied forces and contribute to the US defense industrial base by sustaining production lines for critical military platforms.

What is the significance of the awardee, Bell Boeing Joint Project Office, in the context of the V-22 program?

The Bell Boeing Joint Project Office (JPO) is a strategic alliance between Bell Helicopter (a Textron company) and Boeing, specifically formed to manage the development, production, and sustainment of the V-22 Osprey tiltrotor aircraft. As the primary entity responsible for the V-22 program, their involvement in supplying components like the A1 ODSSHI kits is expected. This long-standing partnership ensures specialized knowledge and manufacturing capabilities directly tied to the V-22's complex systems, making them a logical, albeit sole-source, provider.

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 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: $49,415,131

Exercised Options: $49,415,131

Current Obligation: $26,100,793

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,718,525

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