DoD's V-22 Osprey Parts Contract Awarded for $313.8M, Lacking Competition
Contract Overview
Contract Amount: $313,843,632 ($313.8M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2022-01-06
End Date: 2023-01-05
Contract Duration: 364 days
Daily Burn Rate: $862.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: V-22 PBL (POP 1: 06 JAN 2022 - 05 JAN 2023)
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $313.8 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 PBL (POP 1: 06 JAN 2022 - 05 JAN 2023) Key points: 1. The contract for V-22 Osprey parts was awarded to Bell Boeing Joint Project Office for $313.8 million. 2. This award represents a significant expenditure within the 'Other Aircraft Parts' manufacturing sector. 3. The lack of competition raises concerns about potential overpricing and limited innovation. 4. The Department of the Navy is the procuring agency for this defense-related spending.
Value Assessment
Rating: questionable
The contract's firm fixed price structure provides some cost certainty. However, without competitive bidding, it's difficult to benchmark pricing against market alternatives, suggesting potential for higher costs than a competed contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to the Bell Boeing Joint Project Office. This limits price discovery and potentially leads to less favorable terms for the government compared to a competitive process.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive pressure on the contractor to offer the best possible price.
Public Impact
Essential components for the V-22 Osprey, a critical military aircraft, are being procured. The significant dollar amount highlights the ongoing investment in defense aviation. Lack of competition could impact the long-term affordability of V-22 sustainment. This contract supports jobs within the aerospace manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Firm fixed price contract
- Supports critical defense asset
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized area within the broader aerospace industry. Defense spending often dominates this niche, with limited civilian market parallels for complex military aircraft components.
Small Business Impact
The awardee, Bell Boeing Joint Project Office, is a joint venture, not typically considered a small business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Robust justification for the lack of competition should be maintained and scrutinized.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for price gouging
- Limited transparency in pricing
- Dependency on a single provider
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 $313.8 million to BELL BOEING JOINT PROJECT OFFICE. V-22 PBL (POP 1: 06 JAN 2022 - 05 JAN 2023)
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 $313.8 million.
What is the period of performance?
Start: 2022-01-06. End: 2023-01-05.
What is the justification for not competing this contract, and what steps are being taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. However, agencies typically cite factors like unique capabilities, urgent needs, or the existence of only one responsible source. To ensure fair pricing, the government should conduct thorough price analyses, review historical pricing data, and potentially engage independent cost estimators.
What is the long-term risk associated with sole-sourcing critical aircraft parts?
The long-term risk of sole-sourcing critical aircraft parts includes escalating costs due to the absence of competitive pressure, potential for reduced innovation, and vulnerability to supply chain disruptions if the sole provider faces issues. It can also limit the government's leverage in contract negotiations over time.
How does this contract's pricing compare to similar, competed contracts for aircraft parts?
Without data on similar competed contracts, a direct comparison is not possible. However, sole-sourced contracts are generally presumed to be more expensive than competed ones. A detailed price analysis by the procuring agency would be necessary to determine if the $313.8 million award represents fair and reasonable pricing in the absence of competition.
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, 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: $313,843,632
Exercised Options: $313,843,632
Current Obligation: $313,843,632
Subaward Activity
Number of Subawards: 566
Total Subaward Amount: $238,056,997
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038322DZV01
IDV Type: IDC
Timeline
Start Date: 2022-01-06
Current End Date: 2023-01-05
Potential End Date: 2023-01-05 00:00:00
Last Modified: 2024-10-22
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