DoD's $103M contract for machinery manufacturing awarded to Bell Boeing Joint Project Office

Contract Overview

Contract Amount: $103,001,168 ($103.0M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2012-09-25

End Date: 2017-10-31

Contract Duration: 1,862 days

Daily Burn Rate: $55.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CFTD 2F200-9 THROUGH 2F200-16

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $103.0 million to BELL BOEING JOINT PROJECT OFFICE for work described as: CFTD 2F200-9 THROUGH 2F200-16 Key points: 1. The contract value of $103M is significant for the specified machinery manufacturing sector. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1862 days indicates a long-term need for these services. 4. No small business participation was noted, which could be a missed opportunity for economic inclusion.

Value Assessment

Rating: fair

The contract value of $103M for machinery manufacturing needs to be benchmarked against similar DoD procurements. Without specific details on the machinery, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a definitive contract suggests a well-defined scope of work.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source procurement.

Public Impact

Ensures continued availability of essential machinery for Department of the Navy operations. Supports the defense industrial base through a significant contract award. Potential for technological advancements in machinery manufacturing through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 55 / 10

Warning Flags

  • Lack of small business participation.
  • Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

  • Awarded through full and open competition.
  • Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' sector. Spending benchmarks for this specific niche within the DoD are not readily available but are generally substantial given defense needs.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Bell Boeing Joint Project Office, did not subcontract with small businesses for this award, potentially limiting opportunities for smaller enterprises.

Oversight & Accountability

The definitive contract award implies a structured process with defined milestones and deliverables. Oversight would focus on ensuring adherence to the firm fixed price and delivery schedules.

Related Government Programs

  • Other Commercial and Service Industry Machinery Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Long contract duration.
  • No small business participation.
  • Lack of specific machinery details for cost validation.
  • Potential for technology obsolescence over the contract term.

Tags

other-commercial-and-service-industry-ma, department-of-defense, tx, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $103.0 million to BELL BOEING JOINT PROJECT OFFICE. CFTD 2F200-9 THROUGH 2F200-16

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 $103.0 million.

What is the period of performance?

Start: 2012-09-25. End: 2017-10-31.

What specific types of machinery are being procured under this contract, and how do their costs compare to market rates?

The specific machinery procured is not detailed in the provided data. A thorough analysis would require examining the contract's statement of work to identify the exact equipment. Benchmarking against market rates for similar commercial or specialized defense machinery would then be necessary to assess value for money.

What are the potential risks associated with a long-duration contract (1862 days) for machinery manufacturing?

Long-duration contracts carry risks such as potential obsolescence of technology, changes in material costs, and contractor performance degradation over time. For machinery, wear and tear or the need for upgrades during the contract period could also arise. Effective contract management, including regular reviews and performance monitoring, is crucial to mitigate these risks.

How effectively does the 'full and open competition' method ensure optimal value and performance for this machinery procurement?

Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that ideally drives down prices and encourages innovation. For this $103M contract, it suggests that multiple capable vendors could bid, leading to a potentially better outcome for the DoD compared to limited or sole-source approaches.

Industry Classification

NAICS: ManufacturingCommercial and Service Industry Machinery ManufacturingOther Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6134012R0011

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $103,001,168

Exercised Options: $103,001,168

Current Obligation: $103,001,168

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $817,022

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2012-09-25

Current End Date: 2017-10-31

Potential End Date: 2017-10-31 00:00:00

Last Modified: 2017-06-12

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