DoD Awards $56.4M for CMV-22B Aircraft Parts, Lacking Competition
Contract Overview
Contract Amount: $56,445,176 ($56.4M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2019-11-22
End Date: 2025-03-17
Contract Duration: 1,942 days
Daily Burn Rate: $29.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CMV-22B DEVICE 2F247-1
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $56.4 million to BELL BOEING JOINT PROJECT OFFICE for work described as: CMV-22B DEVICE 2F247-1 Key points: 1. Significant contract value of $56.4 million for specialized aircraft components. 2. Sole-source award to Bell Boeing Joint Project Office raises competition concerns. 3. Potential for overpayment due to lack of competitive bidding. 4. Sector: Defense - Aircraft Parts Manufacturing.
Value Assessment
Rating: questionable
The contract's fixed-price nature provides some cost control. However, without competitive bidding, it's difficult to assess if the $56.4 million price reflects fair market value compared to similar sole-source awards for specialized aircraft components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to the Bell Boeing Joint Project Office. This lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.
Public Impact
Impacts the readiness and operational capability of the Navy's CMV-22B fleet. Potential for increased defense spending without demonstrated value for money. Highlights reliance on specific manufacturers for critical defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Firm fixed-price contract type
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts. Spending in this area is critical for military readiness but requires careful oversight to ensure cost-effectiveness, especially when competition is limited.
Small Business Impact
The awardee, Bell Boeing Joint Project Office, is a joint venture, not a small business. There is no indication of subcontracting opportunities for small businesses within this data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight by the Department of the Navy to ensure the price is fair and reasonable and that future procurements explore competitive options where feasible.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for non-competitive pricing.
- Lack of transparency on justification for sole-sourcing.
- No indication of 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 $56.4 million to BELL BOEING JOINT PROJECT OFFICE. CMV-22B DEVICE 2F247-1
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 $56.4 million.
What is the period of performance?
Start: 2019-11-22. End: 2025-03-17.
What is the justification for the sole-source award of this contract?
The provided data indicates a sole-source award, but the specific justification is not detailed. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation would be required to understand the rationale behind this specific decision.
How does the $56.4 million price compare to similar sole-source contracts for aircraft parts?
Benchmarking this $56.4 million contract against similar sole-source awards for specialized aircraft parts is challenging without access to a broader dataset of comparable contracts. However, the absence of competition inherently makes it difficult to ascertain if this price represents optimal value for the government.
What is the potential risk of cost overruns or inefficiencies with this sole-source award?
The primary risk with a sole-source award is the potential for higher costs due to the lack of competitive pressure. Without competing bids, the contractor may not be incentivized to offer the lowest possible price. This increases the risk of cost inefficiencies and potential overruns if not rigorously managed by the procuring agency.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $56,445,176
Exercised Options: $56,445,176
Current Obligation: $56,445,176
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $19,611,021
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: 2019-11-22
Current End Date: 2025-03-17
Potential End Date: 2025-03-17 00:00:00
Last Modified: 2023-12-20
More Contracts from Bell Boeing Joint Project Office
- MV-22 Aircraft - FY08 (LOT 12)* — $11.0B (Department of Defense)
- Procurement of V-22 LOT 17 Long Lead-Time Items — $7.3B (Department of Defense)
- CMV-22 Production LOT 22 Long Lead-Time Items — $6.6B (Department of Defense)
- 200602!136716!1700!n00019!naval AIR Systems Command !N0001906C0292 !A!N! !N! ! !20051228!20090930!106632750!106632750!106632750!n!bell Boeing Joint Project Offi!47123 Buse RD Building 227!patuxent River !md!20670!27000!439!48!fort Worth !tarrant !texas !+000006901000!n!n!000000000000!1510!aircraft Fixed Wing !a1a!airframes and Spares !212 !V22 !336411!E! !1! ! ! ! ! !99990909!B! ! !A! !d!u!j!1!001!n!1a!a!n!a! ! !N!C!N! ! ! !a!a!a!a!000!a!b!n! ! ! !Y!1719!N00019!0001! ! — $1.3B (Department of Defense)
- Federal Contract — $1.0B (Department of Defense)
View all Bell Boeing Joint Project Office federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)