DoD Awards $330M V-22 PBL POP 5 Contract to Bell Boeing Joint Project Office
Contract Overview
Contract Amount: $330,324,946 ($330.3M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2026-01-06
End Date: 2027-01-05
Contract Duration: 364 days
Daily Burn Rate: $907.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: V-22 PBL POP 5 (6 JAN 2026 - 5 JAN 2027)
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $330.3 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 PBL POP 5 (6 JAN 2026 - 5 JAN 2027) Key points: 1. The contract is for the V-22 Performance-Based Logistics (PBL) Program, Lot 5, covering a one-year period. 2. Bell Boeing Joint Project Office is the sole awardee, indicating a lack of competition for this specific lot. 3. The total award amount is $330,324,946. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. This award falls under the Other Aircraft Parts and Auxiliary Equipment Manufacturing sector.
Value Assessment
Rating: fair
The award amount of $330.3M for a one-year PBL contract for V-22 aircraft parts appears substantial. Benchmarking against similar PBL contracts for complex military aircraft would be necessary to definitively assess pricing fairness, especially given the sole-source nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to the Bell Boeing Joint Project Office. This limits price discovery and potentially reduces competitive pressure, which could impact overall value for the taxpayer.
Taxpayer Impact: The lack of competition for this significant contract value raises concerns about whether the government is achieving the best possible price for these critical V-22 sustainment services.
Public Impact
Ensures continued operational readiness and sustainment for the V-22 Osprey fleet. Supports the Department of the Navy's aviation capabilities. Potential for higher costs due to sole-source award impacting taxpayer funds. Impacts the supply chain for specialized aircraft parts and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High contract value warrants close monitoring for cost efficiency.
- Performance-Based Logistics can be complex to manage effectively.
Positive Signals
- Firm Fixed Price contract shifts cost risk to the contractor.
- Ensures critical sustainment for a key military asset.
- Award to established joint project office suggests experience.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for defense readiness. Spending benchmarks in this specialized area are difficult to ascertain without detailed market analysis, but PBL contracts for complex platforms like the V-22 are typically high-value.
Small Business Impact
The award was made to the Bell Boeing Joint Project Office, a large entity. There is no indication in the provided data whether small businesses were involved as subcontractors or if opportunities were specifically sought for them in this sole-source award.
Oversight & Accountability
Oversight of this sole-source, high-value contract will be critical. The Department of the Navy must ensure robust performance monitoring and cost controls are in place to maximize taxpayer value and hold the contractor accountable for meeting performance metrics.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Sole-source award limits price discovery and negotiation leverage.
- Complexity of PBL contracts requires diligent oversight.
- Potential for cost overruns if performance metrics are not met or managed.
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 $330.3 million to BELL BOEING JOINT PROJECT OFFICE. V-22 PBL POP 5 (6 JAN 2026 - 5 JAN 2027)
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 $330.3 million.
What is the period of performance?
Start: 2026-01-06. End: 2027-01-05.
What is the historical cost performance of V-22 PBL contracts, and how does this award compare?
Historical cost performance data for V-22 PBL contracts is not provided. However, given the sole-source nature of this $330M award, a thorough review of past performance and cost trends is essential. Comparing this award to previous lots or similar aircraft sustainment contracts would help determine if pricing is competitive and represents good value for the taxpayer.
What are the specific performance metrics and incentives within this PBL contract, and how are they monitored?
The provided data indicates a Performance-Based Logistics (PBL) contract, which implies a focus on achieving specific performance outcomes rather than just acquiring parts. Detailed information on the performance metrics, incentive structures, and the Department of the Navy's monitoring mechanisms is crucial for assessing effectiveness and ensuring accountability. Without these details, it's difficult to gauge the true value and risk.
Are there any plans or opportunities to introduce competition for future V-22 sustainment contracts?
The current award is sole-source, raising questions about future competition. The Department of Defense should explore strategies to foster competition for V-22 sustainment in subsequent contract periods. This could involve market research, breaking down the requirement into smaller lots, or encouraging new entrants to develop capabilities, ultimately aiming for better pricing and innovation.
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: $330,324,946
Exercised Options: $330,324,946
Current Obligation: $330,324,946
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: 2026-01-06
Current End Date: 2027-01-05
Potential End Date: 2027-01-05 00:00:00
Last Modified: 2025-12-17
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