DoD Awards $330M V-22 PBL Contract to Bell Boeing for Aircraft Parts
Contract Overview
Contract Amount: $329,540,227 ($329.5M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2023-01-06
End Date: 2024-01-05
Contract Duration: 364 days
Daily Burn Rate: $905.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: V-22 PBL PERIOD OF PERFORMANCE 2 (6 JAN 2023 TO 5 JAN 2024)
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $329.5 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 PBL PERIOD OF PERFORMANCE 2 (6 JAN 2023 TO 5 JAN 2024) Key points: 1. Significant contract value for specialized aircraft components. 2. Sole-source award to Bell Boeing Joint Project Office limits competition. 3. Potential risk associated with single-source procurement for critical parts. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract value of $329.5M for a one-year period is substantial. Benchmarking against similar sole-source contracts for specialized aerospace components is difficult due to limited public data, but the price appears consistent with high-value, low-competition procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to the Bell Boeing Joint Project Office. This lack of competition likely results in higher prices than could be achieved through a competitive bidding process, as there is no market pressure to reduce costs.
Taxpayer Impact: Taxpayer funds are being expended without the benefit of competitive pricing, potentially leading to a less efficient use of resources.
Public Impact
Ensures continued availability of critical V-22 Osprey aircraft parts. Supports the operational readiness of a key military asset. Impacts the aerospace manufacturing sector, specifically in Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- High contract value
Positive Signals
- Supports critical defense asset
- Established supplier relationship
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is often characterized by high technical requirements and limited suppliers, leading to higher costs and less frequent competition.
Small Business Impact
The award went to the Bell Boeing Joint Project Office, a large entity, with no indication of small business subcontracting. This suggests limited direct benefit to small businesses from this specific contract award.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and performance. The Department of the Navy's contracting activity requires diligent monitoring to mitigate risks associated with non-competitive procurements.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing due to lack of market pressure.
- Dependence on a single supplier for critical components.
- Limited transparency on cost justification for sole-source.
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 $329.5 million to BELL BOEING JOINT PROJECT OFFICE. V-22 PBL PERIOD OF PERFORMANCE 2 (6 JAN 2023 TO 5 JAN 2024)
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 $329.5 million.
What is the period of performance?
Start: 2023-01-06. End: 2024-01-05.
What is the justification for the sole-source award, and has an alternatives analysis been performed?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. An alternatives analysis is essential to confirm that no other source can meet the government's needs. Without this information, it's difficult to assess if the government truly exhausted all competitive options or if the sole-source designation is a result of convenience or established relationships.
How does the unit cost of these V-22 parts compare to historical data or industry benchmarks?
Benchmarking the unit cost is challenging without specific part numbers and detailed cost breakdowns. However, given the sole-source nature and the specialized V-22 platform, costs are likely higher than for more common aircraft parts. A thorough review of historical pricing trends for similar PBLs and any available independent cost estimates would be necessary for a robust comparison.
What mechanisms are in place to ensure performance and prevent cost overruns under this sole-source contract?
With a sole-source contract, robust performance metrics and clear deliverables are paramount. The Department of the Navy should implement stringent oversight, including regular progress reviews, quality assurance checks, and potentially cost-plus incentives if appropriate, to ensure the contractor meets all requirements and manages costs effectively. Transparency in reporting is also key.
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: $329,540,227
Exercised Options: $329,540,227
Current Obligation: $329,540,227
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $1,564,776
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: 2023-01-06
Current End Date: 2024-01-05
Potential End Date: 2024-01-05 00:00:00
Last Modified: 2024-10-22
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