DoD's V-22 Osprey sustainment contract valued at $358M for one year, awarded non-competitively

Contract Overview

Contract Amount: $358,039,406 ($358.0M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2025-01-06

End Date: 2026-01-05

Contract Duration: 364 days

Daily Burn Rate: $983.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: V-22 PBL POP 4 (6 JAN 2025 - 5 JAN 2026)

Place of Performance

Location: CALIFORNIA, SAINT MARYS County, MARYLAND, 20619

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $358.0 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 PBL POP 4 (6 JAN 2025 - 5 JAN 2026) Key points: 1. This contract focuses on sustainment, indicating a need for ongoing support for existing V-22 aircraft. 2. The sole-source nature raises questions about potential cost efficiencies and market-driven pricing. 3. Performance risk is moderate, given the complexity of the V-22 platform and the need for specialized support. 4. The contract duration of one year suggests a shorter-term approach to sustainment planning. 5. This spending falls within the broader category of aircraft parts and auxiliary equipment manufacturing. 6. The high value for a single year of sustainment warrants scrutiny of cost drivers.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed cost breakdowns and comparisons to similar sustainment contracts for complex aircraft. The $358 million price tag for a single year of support for the V-22 program, while substantial, may reflect the specialized nature of the aircraft and the limited pool of qualified support providers. Further analysis would be needed to determine if this represents a fair price for the services rendered, considering factors like labor rates, parts costs, and overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technical data, or security clearances to perform the work. The lack of competition means that pricing is not driven by market forces, potentially leading to higher costs for the government compared to a competitive procurement.

Taxpayer Impact: The absence of competition for this significant sustainment contract means taxpayers may not be benefiting from the most cost-effective pricing achievable through a bidding process.

Public Impact

The U.S. Department of Defense, specifically the Department of the Navy, is the primary beneficiary, ensuring the operational readiness of the V-22 Osprey fleet. Services include sustainment, maintenance, and support for the V-22 aircraft, crucial for its continued operation. The geographic impact is likely widespread, supporting V-22 operations across various naval and Marine Corps bases. Workforce implications include the need for highly skilled technicians and engineers specializing in V-22 aircraft maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in cost breakdown for a sole-source contract.
Potential for vendor lock-in due to specialized nature of V-22 support.
Single-year duration may not reflect long-term strategic sustainment planning.

Positive Signals

Ensures critical sustainment for a unique and vital military asset (V-22 Osprey).
Award to Bell Boeing Joint Project Office leverages established expertise with the platform.
Firm Fixed Price contract provides cost certainty for the government within the contract period.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex technological requirements, and significant government investment. Sustainment contracts like this one are vital for maintaining the operational readiness of advanced military platforms. The V-22 Osprey is a unique tiltrotor aircraft, and its sustainment requires specialized knowledge and infrastructure, often limiting the competitive landscape to a few key players or a sole provider.

Small Business Impact

This contract does not appear to involve a small business set-aside. Given the specialized nature of V-22 sustainment, it is unlikely that small businesses would be primary contractors. However, opportunities may exist for small businesses to participate as subcontractors to the prime contractor, providing specific components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. Accountability measures would include performance metrics outlined in the contract and regular reporting by the contractor. Transparency may be limited due to the sole-source nature, but contract awards are generally reported in federal procurement databases.

Related Government Programs

V-22 Osprey Program
DoD Aircraft Procurement
Aerospace Defense Sustainment
Naval Aviation Support Contracts

Risk Flags

Sole-source award
High contract value for single year
Lack of competitive pricing pressure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $358.0 million to BELL BOEING JOINT PROJECT OFFICE. V-22 PBL POP 4 (6 JAN 2025 - 5 JAN 2026)

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 $358.0 million.

What is the period of performance?

Start: 2025-01-06. End: 2026-01-05.

What is the historical spending trend for V-22 Osprey sustainment contracts?

Historical spending on V-22 Osprey sustainment has been significant, reflecting the complexity and operational tempo of this unique aircraft. While specific year-over-year figures for sustainment alone can be difficult to isolate from broader program costs, annual obligations for V-22 related contracts have consistently been in the hundreds of millions of dollars. For instance, previous years have seen similar or even higher annual obligations for sustainment and support. The $358 million for this one-year period is consistent with the program's established expenditure profile. Analyzing trends requires looking at multiple years of data, including modifications and delivery orders, to understand the full scope of sustainment costs and identify any significant deviations or escalations.

How does the cost per flight hour for the V-22 compare to other tiltrotor or similar military aircraft?

The cost per flight hour for the V-22 Osprey is generally considered high compared to more conventional military aircraft, a factor often attributed to its complex tiltrotor technology, specialized maintenance requirements, and lower production numbers. While exact, up-to-date figures can vary based on reporting and what costs are included (e.g., direct maintenance, indirect support, depot-level repairs), estimates have historically placed the V-22's cost per flight hour significantly higher than platforms like the Black Hawk helicopter or fixed-wing transport aircraft. This higher cost is a known characteristic of the V-22 program, stemming from its unique capabilities and the associated sustainment challenges. Benchmarking against other tiltrotor programs is limited due to the V-22's unique market position.

What are the specific sustainment services covered under this $358 million contract?

The $358 million contract for V-22 sustainment covers a range of services essential for maintaining the operational readiness of the aircraft fleet. While the specific line items are detailed within the contract's statement of work, typical sustainment services for complex platforms like the V-22 include: depot-level maintenance and repair, component repair and overhaul, supply chain management for spare parts, technical support and engineering services, logistics support, and potentially modifications or upgrades necessary to maintain airworthiness and performance. The contract likely aims to ensure the availability of parts, skilled labor, and technical expertise required to keep the V-22s flying safely and effectively throughout the contract period.

What is the track record of Bell Boeing Joint Project Office in V-22 sustainment?

Bell Boeing Joint Project Office (JPO) has an extensive and exclusive track record in the sustainment of the V-22 Osprey, as they are the original equipment manufacturer and primary integrator for the aircraft. They have been responsible for the V-22's sustainment since its inception. Their experience encompasses managing the complex supply chain, providing specialized technical expertise, and performing depot-level maintenance for this unique tiltrotor aircraft. While they possess the sole capability, assessing their performance requires reviewing metrics related to aircraft availability, maintenance turnaround times, and cost-effectiveness within the constraints of a sole-source environment. The continued reliance on them for sustainment underscores their established role and capability.

Are there any plans to introduce competition for V-22 sustainment in the future?

Introducing competition for V-22 sustainment presents significant challenges due to the highly specialized nature of the aircraft and the proprietary knowledge held by the original manufacturers, Bell and Boeing, operating as the Bell Boeing JPO. The V-22's unique tiltrotor technology, complex systems, and limited production numbers mean that few, if any, other entities possess the necessary technical data, tooling, facilities, and expertise to provide comprehensive sustainment. While the government generally prefers competition to drive down costs, achieving it for such a specialized platform would likely require substantial investment in technology transfer, training, and potentially developing alternative support capabilities, which may not be cost-effective or feasible in the near term. Future strategies might involve exploring limited competition for specific components or services, but full program competition remains a distant prospect.

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: $358,039,406

Exercised Options: $358,039,406

Current Obligation: $358,039,406

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