DoD's $48.4M V-22 Osprey PRGB ASSY,LH contract awarded via sole-source to Bell Boeing

Contract Overview

Contract Amount: $48,365,904 ($48.4M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2018-09-24

End Date: 2024-04-24

Contract Duration: 2,039 days

Daily Burn Rate: $23.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PRGB ASSY,LH

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $48.4 million to BELL BOEING JOINT PROJECT OFFICE for work described as: PRGB ASSY,LH Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract spans over six years, indicating a long-term need for these critical aircraft components. 3. The use of Firm Fixed Price contract type suggests a defined scope, but sole-source nature limits competitive pressure on costs. 4. The prime contractor, Bell Boeing Joint Project Office, likely possesses unique expertise for this specialized component. 5. The contract is managed by the Defense Logistics Agency, a common entity for procuring specialized defense equipment. 6. The lack of competition is a significant risk indicator for achieving optimal value for taxpayer funds.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging due to the absence of competitive bids. The Firm Fixed Price (FFP) structure provides cost certainty for the government, but without competition, it's difficult to assess if the price reflects fair market value. The long duration of the contract (over six years) suggests a substantial commitment, and the absence of comparative pricing data makes a definitive value-for-money assessment difficult. Further analysis would require access to historical pricing for similar components or internal cost data from the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or authorized by statute. The lack of competition means there were no other bidders to compare against, potentially leading to higher prices than if the contract had been competed. The government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Taxpayer Impact: Taxpayers may be paying a premium for this component due to the absence of competitive pressure. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the U.S. military branches that operate the V-22 Osprey aircraft, ensuring operational readiness. The contract delivers essential components (PRGB ASSY,LH) for the maintenance and sustainment of the V-22 Osprey fleet. The geographic impact is national, supporting military operations across various theaters. The contract supports specialized manufacturing jobs within the aerospace and defense sector, primarily at the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially inflating costs.
Lack of transparency in pricing due to non-competitive nature.
Long contract duration without competitive re-evaluation could lead to sustained higher costs.
Dependence on a single contractor for critical components poses supply chain risk.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to a joint venture (Bell Boeing) suggests established expertise and capability for this specific component.
Long-term award indicates a stable supply chain for a critical defense asset.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft components. The market for specialized components like the PRGB ASSY,LH for the V-22 Osprey is highly concentrated, often dominated by a few key players or a single entity due to the unique engineering and manufacturing requirements. Comparable spending benchmarks are difficult to establish publicly for such niche, sole-sourced defense components.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. As a sole-source award to a large joint venture, the primary focus is likely on the prime contractor's capabilities rather than fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, likely involving the Defense Contract Management Agency (DCMA) for performance monitoring. Transparency is limited due to the sole-source nature. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

V-22 Osprey Sustainment Contracts
Aircraft Component Procurement
Defense Logistics Agency Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.4 million to BELL BOEING JOINT PROJECT OFFICE. PRGB ASSY,LH

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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $48.4 million.

What is the period of performance?

Start: 2018-09-24. End: 2024-04-24.

What is the historical spending trend for the PRGB ASSY,LH component for the V-22 Osprey?

Historical spending data for this specific component (PRGB ASSY,LH) is not publicly available in detail. However, the current contract awarded in September 2018 with an end date of April 2024, valued at approximately $48.4 million, indicates a consistent and significant investment in this part. Given the sole-source nature and the long duration, it suggests a sustained requirement and potentially consistent pricing over the contract period. Without access to previous contracts or detailed financial reports from the Bell Boeing Joint Project Office, a precise historical trend analysis is not feasible. However, the longevity and value of this award imply ongoing fleet support needs for the V-22 Osprey.

How does the unit cost of the PRGB ASSY,LH compare to similar components in other aircraft programs?

Direct comparison of the unit cost for the PRGB ASSY,LH to similar components in other aircraft programs is not feasible with publicly available data. The V-22 Osprey is a unique tiltrotor aircraft, and its components are highly specialized. The PRGB ASSY,LH is likely a critical and complex part specific to this platform. Furthermore, this contract was awarded on a sole-source basis, meaning there was no competitive bidding to establish a market-driven price. Without access to proprietary cost data from the contractor or detailed specifications and pricing of components from other, potentially dissimilar, aircraft, any comparison would be speculative and lack a reliable basis.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly disclosed. However, for defense contracts of this nature, typical KPIs would likely include on-time delivery of components, adherence to quality standards (e.g., defect rates), meeting technical specifications, and potentially cost control within the agreed-upon Firm Fixed Price. The Defense Logistics Agency (DLA) and the program office responsible for the V-22 Osprey would monitor these metrics. Performance would also be assessed through contractor performance evaluations, such as the Contractor Performance Assessment Reporting System (CPARS), which tracks reliability, cost, schedule, and management.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRPA118RW662

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: $48,365,904

Exercised Options: $48,365,904

Current Obligation: $48,365,904

Subaward Activity

Number of Subawards: 101

Total Subaward Amount: $79,779,247

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SPRPA115G001Y

IDV Type: BOA

Timeline