DoD's V-22 Performance Based Logistics Contract Awarded to Bell Boeing for $389M
Contract Overview
Contract Amount: $389,236,429 ($389.2M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2024-01-06
End Date: 2025-01-05
Contract Duration: 365 days
Daily Burn Rate: $1.1M/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: V-22 PERFORMANCE BASED LOGISTICS CONTRACT POP 3 (01/06/2024 - 01/05/2025)
Place of Performance
Location: CALIFORNIA, SAINT MARYS County, MARYLAND, 20619
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $389.2 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 PERFORMANCE BASED LOGISTICS CONTRACT POP 3 (01/06/2024 - 01/05/2025) Key points: 1. The contract is for performance-based logistics for the V-22 aircraft. 2. Bell Boeing Joint Project Office is the sole awardee, indicating a lack of competition. 3. The contract value is substantial at $389.2 million for a one-year period. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing, a niche area.
Value Assessment
Rating: questionable
Pricing is based on a firm-fixed-price contract, which offers predictability but may not reflect the best value without competition. The benchmark of $10.6M for a similar contract suggests this award's pricing needs closer scrutiny.
Cost Per Unit: $10,664,010 (benchmark)
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded directly to the Bell Boeing Joint Project Office. This sole-source approach limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The V-22 aircraft's operational readiness could be impacted if logistics support is not cost-effective. This contract highlights potential areas for improved procurement strategies within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Performance-based contract structure
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this specialized area is often concentrated among a few key suppliers due to unique manufacturing requirements and intellectual property.
Small Business Impact
The contract was awarded to the Bell Boeing Joint Project Office, a joint venture, and there is no indication of small business participation. This suggests limited opportunities for small businesses in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective delivery of logistics services. Accountability for performance and cost management is crucial given the lack of competitive pressure.
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
- Potential for inflated pricing
- Limited transparency in cost justification
- No clear small business participation
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $389.2 million to BELL BOEING JOINT PROJECT OFFICE. V-22 PERFORMANCE BASED LOGISTICS CONTRACT POP 3 (01/06/2024 - 01/05/2025)
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 $389.2 million.
What is the period of performance?
Start: 2024-01-06. End: 2025-01-05.
What is the justification for awarding this significant contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. For this V-22 logistics contract, it's likely tied to the specialized nature of the aircraft and the existing relationship with the original equipment manufacturer. To ensure fair pricing, the Department of Defense would ideally conduct a thorough cost analysis, review historical pricing, and potentially negotiate specific performance metrics and profit margins.
What are the potential risks to the V-22 program's readiness and cost-effectiveness due to this non-competed contract?
The primary risk is that without competition, the Bell Boeing Joint Project Office may not be incentivized to offer the most cost-effective solutions, potentially leading to inflated prices for parts and services. This could strain the V-22 program's budget and impact the availability of funds for other critical needs. Furthermore, a lack of competitive pressure might reduce the urgency to innovate or improve service delivery, potentially affecting overall aircraft readiness and operational efficiency.
How does the performance-based nature of this contract mitigate the risks associated with a sole-source award?
The performance-based aspect aims to tie contractor payment and profit to achieving specific, measurable outcomes related to V-22 availability, reliability, and turnaround times. This shifts the focus from simply delivering parts to ensuring the overall logistics system functions effectively. While it doesn't eliminate the price risk of a sole-source award, it provides a mechanism to hold the contractor accountable for operational results, potentially improving value for taxpayer investment.
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: $389,236,429
Exercised Options: $389,236,429
Current Obligation: $389,236,429
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: 2024-01-06
Current End Date: 2025-01-05
Potential End Date: 2025-01-05 00:00:00
Last Modified: 2025-06-24
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