DoD's $30.8M Bell-Boeing Contract for Machinery Manufacturing: Limited Competition Raises Concerns
Contract Overview
Contract Amount: $30,859,054 ($30.9M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2011-03-24
End Date: 2015-03-31
Contract Duration: 1,468 days
Daily Burn Rate: $21.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: FTDS 5&6
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $30.9 million to BELL BOEING JOINT PROJECT OFFICE for work described as: FTDS 5&6 Key points: 1. The contract awarded to Bell-Boeing Joint Project Office for $30.8M lacks competition, potentially impacting price discovery. 2. The sector is 'Other Commercial and Service Industry Machinery Manufacturing,' a broad category where specific benchmarks are hard to establish. 3. The 'NOT COMPETED' status and 'COST PLUS INCENTIVE FEE' pricing structure present potential risks for cost overruns and taxpayer value. 4. The contract duration of 1468 days suggests a long-term commitment with ongoing oversight needs.
Value Assessment
Rating: questionable
The contract's 'COST PLUS INCENTIVE FEE' structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without comparable contracts or a competitive bidding process, it's challenging to determine if the $30.8M represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was 'NOT COMPETED,' indicating a sole-source or limited competition award. This significantly reduces price discovery mechanisms, as there was no market pressure to drive down costs. The government relied on negotiation rather than competitive bidding.
Taxpayer Impact: The lack of competition and potentially less efficient pricing structure could lead to higher costs for taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. The long contract duration could mean sustained, potentially inflated, costs over several years. Lack of transparency in the procurement process can erode public trust in government spending. The specific machinery procured is not detailed, making it difficult for the public to assess its necessity or value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost-Plus Pricing Structure
- Long Contract Duration
- Limited Transparency
Positive Signals
- Awarded to a known entity (Bell-Boeing)
- Contract has a defined end date
Sector Analysis
The 'Other Commercial and Service Industry Machinery Manufacturing' sector is diverse. Without specific details on the machinery, it's hard to benchmark spending. However, large sole-source contracts in manufacturing can often be subject to higher costs due to limited market alternatives.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The 'Defense Contract Management Agency' is listed as the servicing agency, suggesting some level of oversight. However, the 'NOT COMPETED' status and 'COST PLUS INCENTIVE FEE' structure necessitate robust oversight to ensure cost control and prevent waste.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Cost-plus contract type can lead to cost overruns.
- Lack of specific product details hinders value assessment.
- Long contract duration increases long-term financial exposure.
- Potential for reduced efficiency without competitive pressure.
Tags
other-commercial-and-service-industry-ma, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.9 million to BELL BOEING JOINT PROJECT OFFICE. FTDS 5&6
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $30.9 million.
What is the period of performance?
Start: 2011-03-24. End: 2015-03-31.
What specific machinery was procured under this contract, and what is its operational necessity for the Department of Defense?
The provided data does not specify the exact type of machinery. Understanding the specific equipment is crucial to assess its necessity and justify the $30.8M expenditure. Without this detail, it's difficult to evaluate the true value proposition for the DoD and determine if alternative, potentially more cost-effective solutions were overlooked.
What justification was provided for awarding this contract on a sole-source basis, and were any market research efforts conducted?
The data states the contract was 'NOT COMPETED,' implying a sole-source award. A thorough justification for this approach, including documented market research demonstrating the lack of viable alternatives or unique capabilities, is essential. Without this, the award raises concerns about potential missed opportunities for better pricing through competition.
How effectively has the 'COST PLUS INCENTIVE FEE' structure managed costs and incentivized efficiency given the lack of competition?
The 'COST PLUS INCENTIVE FEE' (CPIF) structure aims to balance cost control with performance incentives. However, in a sole-source environment, the effectiveness of these incentives is diminished without a competitive baseline. Detailed performance reports and cost analysis would be needed to assess if the CPIF structure truly delivered value and controlled costs as intended.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6133910R0042
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 401 TILTROTOR DR PLANT A, 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: $31,544,474
Exercised Options: $30,859,054
Current Obligation: $30,859,054
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-03-24
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2021-02-22
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