DoD's $143M V-22 Bell Unplanned Outfitting Contract Lacks Competition, Raises Cost Concerns
Contract Overview
Contract Amount: $143,206,691 ($143.2M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2021-04-13
End Date: 2026-12-31
Contract Duration: 2,088 days
Daily Burn Rate: $68.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: V-22 BELL UNPLANNED OUTFITTING/ALLOWANCE BUY
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $143.2 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 BELL UNPLANNED OUTFITTING/ALLOWANCE BUY Key points: 1. Significant spending on V-22 aircraft parts highlights ongoing sustainment needs. 2. The contract's sole-source nature limits price discovery and potentially inflates costs. 3. Lack of competition poses a risk to achieving best value for taxpayer dollars. 4. The 'Other Aircraft Parts' sector is critical for defense readiness but often complex. 5. This award represents a substantial investment in a key military platform.
Value Assessment
Rating: questionable
The contract value of $143.2M for unplanned outfitting and allowance buys is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar aircraft parts contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method bypasses the standard competitive procurement process, potentially leading to higher prices and reduced innovation.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these V-22 parts, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying for essential V-22 aircraft components due to the sole-source award. The long duration (2026) suggests a sustained need, making the lack of competition more impactful over time. Dependence on a single source for critical parts could create supply chain vulnerabilities. This spending impacts the operational readiness and maintenance costs of the V-22 fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Supports critical V-22 aircraft
- Addresses unplanned needs
- Firm Fixed Price contract type
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is vital for defense readiness. Spending benchmarks in this niche area are hard to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award. The focus appears to be on a large, established supplier for specialized aircraft components.
Oversight & Accountability
The sole-source nature of this award raises questions about the effectiveness of oversight in ensuring competitive practices. Further review is needed to understand why competition was not pursued.
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
- Sole-source dependency
- Risk to supply chain continuity
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $143.2 million to BELL BOEING JOINT PROJECT OFFICE. V-22 BELL UNPLANNED OUTFITTING/ALLOWANCE BUY
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 $143.2 million.
What is the period of performance?
Start: 2021-04-13. End: 2026-12-31.
What is the justification for awarding this substantial contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this V-22 contract, the specific rationale needs to be detailed by the Department of the Navy. Without this information, it's impossible to assess if competitive strategies were adequately explored or if this represents a missed opportunity for better value.
How does the pricing of this sole-source contract compare to industry benchmarks for similar aircraft parts, and what is the estimated cost premium?
Direct comparison is challenging without access to Bell's specific cost structure and market intelligence. However, sole-source contracts inherently carry a higher risk of cost premiums due to the absence of competitive pressure. An independent cost analysis or benchmarking against publicly available data for comparable aircraft components would be necessary to estimate any potential overpayment.
What measures are in place to ensure the quality and timely delivery of parts under this contract, given the lack of competitive oversight?
Despite the sole-source nature, the government typically employs contract surveillance and quality assurance measures to ensure performance. This includes inspections, acceptance testing, and monitoring delivery schedules. However, the absence of competition means there's less market-driven incentive for the contractor to proactively improve quality or efficiency beyond contractual requirements.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 401 TILTROTOR DR PLANT A, 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: $143,206,691
Exercised Options: $143,206,691
Current Obligation: $143,206,691
Subaward Activity
Number of Subawards: 188
Total Subaward Amount: $41,746,427
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038319DU501
IDV Type: IDC
Timeline
Start Date: 2021-04-13
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-10-21
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