DoD's $6.5M Tube Bender Contract Awarded to Bell Boeing Joint Project Office
Contract Overview
Contract Amount: $6,544,300 ($6.5M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2024-12-30
End Date: 2030-01-23
Contract Duration: 1,850 days
Daily Burn Rate: $3.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TUBE BENDER
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $6.5 million to BELL BOEING JOINT PROJECT OFFICE for work described as: TUBE BENDER Key points: 1. Contract awarded for machine tool manufacturing, specifically tube benders. 2. Significant value of $6.54 million over an 1850-day duration. 3. Awarded by the Department of the Navy, part of the Department of Defense. 4. The contract is a Cost Plus Fixed Fee type, indicating potential for cost overruns. 5. No small business participation noted.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure can lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to assess if the $6.54 million price is reasonable for the tube benders.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $6.54 million contract raises concerns about the efficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specific use of these tube benders within the Navy's operations is not detailed, impacting public understanding of the necessity. The long contract duration (over 5 years) suggests a sustained need, but the justification for a sole-source award remains unclear.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- No small business participation
Positive Signals
- Clear end date
- Specific agency identified
Sector Analysis
This contract falls under Machine Tool Manufacturing, a sector crucial for defense production. Spending benchmarks for specialized machinery can vary widely, but the lack of competition here makes direct comparison difficult.
Small Business Impact
The contract explicitly states no small business participation. This represents a missed opportunity to support small businesses within the defense supply chain.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for a sole-source award was robust and that the pricing is fair and reasonable.
Related Government Programs
- Machine Tool Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks transparency.
- Cost Plus Fixed Fee structure increases cost risk.
- No small business inclusion.
- Long contract duration without clear competitive justification.
- Potential for inflated pricing.
Tags
machine-tool-manufacturing, department-of-defense, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.5 million to BELL BOEING JOINT PROJECT OFFICE. TUBE BENDER
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 $6.5 million.
What is the period of performance?
Start: 2024-12-30. End: 2030-01-23.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is critical for ensuring taxpayer value. Agencies must demonstrate that only one responsible source can fulfill the requirement. Without this information, it's impossible to assess if competitive procedures were bypassed inappropriately. Robust price analysis, including market research and comparison to similar procurements, should have been conducted to validate the Cost Plus Fixed Fee pricing.
What are the potential risks associated with a Cost Plus Fixed Fee contract for specialized machinery like tube benders?
Cost Plus Fixed Fee (CPFF) contracts carry inherent risks for the government. The contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This structure incentivizes cost increases, as the contractor's profit remains constant regardless of the final cost. For specialized machinery, this can lead to inflated prices if not meticulously monitored and controlled by the procuring agency.
How does the lack of competition impact the long-term cost-effectiveness and innovation in the machine tool manufacturing sector for the Department of Defense?
The absence of competition stifles innovation and can lead to higher long-term costs. Without the pressure of competing bids, contractors may have less incentive to develop more efficient manufacturing processes or offer advanced features. This can result in the DoD acquiring machinery at suboptimal prices and potentially missing out on technological advancements available in a more competitive market.
Industry Classification
NAICS: Manufacturing › Metalworking Machinery Manufacturing › Machine Tool Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833522R0088
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $12,593,502
Exercised Options: $6,544,300
Current Obligation: $6,544,300
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-12-30
Current End Date: 2030-01-23
Potential End Date: 2030-03-30 00:00:00
Last Modified: 2025-12-10
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