DoD's $66.9M MV Block C System Changes contract awarded to Bell Boeing Joint Project Office
Contract Overview
Contract Amount: $66,911,415 ($66.9M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2018-01-18
End Date: 2024-12-31
Contract Duration: 2,539 days
Daily Burn Rate: $26.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MV BLOCK C SYSTEM CHANGES
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $66.9 million to BELL BOEING JOINT PROJECT OFFICE for work described as: MV BLOCK C SYSTEM CHANGES Key points: 1. Significant contract value of $66.9 million. 2. Awarded to a joint venture, indicating potential for specialized expertise. 3. Contract duration extends to December 2024, suggesting ongoing needs. 4. The 'Other Aircraft Parts' sector is critical for defense readiness.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar aircraft parts contracts is difficult without more specific details on the 'System Changes'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, raising concerns about price discovery and whether the government obtained the best possible value. Sole-source awards often occur when only one vendor can meet specific, unique requirements.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the 'MV BLOCK C SYSTEM CHANGES'.
Public Impact
Impacts the Department of the Navy's operational capabilities. Supports the defense industrial base through a major contract award. Potential for cost inefficiencies due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Award to a joint project office suggests specialized capability
- Supports critical defense systems
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is driven by military readiness requirements and technological advancements.
Small Business Impact
The award went to a joint project office, not directly to small businesses. There is no indication of small business subcontracting goals or participation in this specific award.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. The Department of the Navy's contracting officers must diligently monitor expenditures and performance.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns with CPFF contract
- Limited transparency on system changes
- No clear small business participation
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $66.9 million to BELL BOEING JOINT PROJECT OFFICE. MV BLOCK C SYSTEM CHANGES
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 $66.9 million.
What is the period of performance?
Start: 2018-01-18. End: 2024-12-31.
What specific 'System Changes' are being implemented under this contract, and what is their necessity?
The specific 'System Changes' are not detailed in the provided data. Understanding the nature of these changes is crucial to assess their necessity for the MV Block C system's functionality and the overall value proposition of the contract. Without this information, it's difficult to determine if the investment is justified or if alternative solutions were considered.
What is the justification for awarding this contract on a sole-source basis, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can fulfill. For this contract, the 'Bell Boeing Joint Project Office' likely possesses specific expertise or intellectual property related to the MV Block C system. However, the absence of competition raises questions about whether a thorough market survey was conducted to ensure no other capable sources existed.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure fair pricing?
Managing a Cost Plus Fixed Fee (CPFF) contract requires robust oversight to control costs. The Department of the Navy must implement stringent monitoring of Bell Boeing's incurred costs, ensuring they are reasonable, allocable, and allowable. Regular audits and performance reviews are essential to verify that the fixed fee remains appropriate given the actual costs and that the contractor is incentivized to perform efficiently.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $82,120,565
Exercised Options: $69,412,428
Current Obligation: $66,911,415
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $19,551,702
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001917G0002
IDV Type: BOA
Timeline
Start Date: 2018-01-18
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-09-30
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