DoD's $27.6M aircraft hub assembly contract awarded to Bell Boeing Joint Project Office with limited competition

Contract Overview

Contract Amount: $27,659,082 ($27.7M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2018-09-24

End Date: 2021-06-21

Contract Duration: 1,001 days

Daily Burn Rate: $27.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HUB ASSY,AIRCRAFT,M

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76118

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to BELL BOEING JOINT PROJECT OFFICE for work described as: HUB ASSY,AIRCRAFT,M Key points: 1. The contract's value of $27.6 million for aircraft hub assemblies suggests a significant investment in critical aerospace components. 2. Awarded to a joint venture, this indicates a concentrated market for specialized aircraft parts, potentially limiting broader supplier engagement. 3. The firm fixed-price contract type offers cost certainty for the government, but may reduce flexibility if unforeseen issues arise. 4. The duration of the contract (approx. 3 years) aligns with typical sustainment or production cycles for complex aerospace systems. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation. 6. The contract's focus on aircraft manufacturing places it within a high-value, technologically advanced sector of the defense industrial base.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed specifications of the 'HUB ASSY,AIRCRAFT,M'. However, the total award of $27.6 million for a single delivery order over approximately three years suggests a substantial unit cost, typical for specialized aerospace components. Comparing this to other sole-source or limited-competition awards for similar complex assemblies would be necessary for a more precise value-for-money assessment. The firm fixed-price nature provides budget predictability, but the absence of competitive pressure could mean the price is not optimized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source or limited competition basis, indicated by 'CT: NOT COMPETED'. This means that only one source, the Bell Boeing Joint Project Office, was solicited or deemed capable of fulfilling the requirement. Such awards are typically justified when a unique capability, proprietary technology, or existing system integration necessitates a specific contractor. The lack of broader competition limits the government's ability to explore alternative solutions or achieve potentially lower prices through a wider bidding process.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price discovery and potential cost savings that can arise from a competitive bidding environment. This can lead to higher overall costs for the government.

Public Impact

The primary beneficiaries are the Department of Defense, specifically units relying on the aircraft for which these hub assemblies are critical. The contract delivers essential components for aircraft manufacturing or sustainment, ensuring operational readiness and capability. The geographic impact is centered around the contractor's facilities in Texas, where the manufacturing and assembly likely take place. The contract supports specialized jobs within the aerospace manufacturing sector, contributing to the skilled workforce in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher prices than a fully competed contract.
Sole-source awards reduce transparency and opportunities for new market entrants.
Dependence on a single provider can create supply chain risks.
Lack of competition might disincentivize innovation from alternative suppliers.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a joint project office suggests established expertise and integration capabilities.
Contract supports critical defense aerospace manufacturing, ensuring readiness.

Sector Analysis

The aerospace manufacturing sector is characterized by high barriers to entry, significant R&D investment, and stringent quality control requirements. This contract falls within the defense sub-sector, which often involves specialized components like aircraft hub assemblies. The market for such components is typically concentrated among a few large, experienced firms or joint ventures due to the complexity and scale of production. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition awards for similar high-value aircraft parts within the DoD.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('SB: false'). The award to a joint project office, likely a large entity, suggests that subcontracting opportunities for small businesses may exist but are not mandated by a specific set-aside. The impact on the small business ecosystem would depend on the subcontracting plans of Bell Boeing, and whether they actively seek out and engage small business suppliers for specialized parts or services related to this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, with potential involvement from the Defense Contract Management Agency (DCMA) for quality assurance and delivery monitoring. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is limited due to the sole-source nature, but contract award data is publicly available through federal procurement databases.

Related Government Programs

Aircraft Parts Manufacturing
Defense Aerospace Sustainment
Military Aircraft Components
Bell Boeing Products
Joint Project Office Contracts

Risk Flags

Limited Competition
Sole Source Award
Potential for Higher Costs
Supply Chain Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to BELL BOEING JOINT PROJECT OFFICE. HUB ASSY,AIRCRAFT,M

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 $27.7 million.

What is the period of performance?

Start: 2018-09-24. End: 2021-06-21.

What is the specific type and function of the 'HUB ASSY,AIRCRAFT,M' being procured?

The designation 'HUB ASSY,AIRCRAFT,M' likely refers to a critical component within an aircraft's rotor system or a similar central structural assembly. The 'M' could denote a specific model or variant. These assemblies are vital for the structural integrity and operational functionality of aircraft, particularly helicopters or tiltrotors, where they connect rotor blades to the main rotor shaft, enabling rotation and control. The exact specifications, materials, and performance requirements would be detailed in the contract's statement of work, which is not provided in the summary data. Understanding the precise nature of this component is key to assessing its value and the justification for a sole-source award.

What is the historical spending pattern for this specific hub assembly or similar components by the Department of Defense?

Analyzing historical spending on this specific 'HUB ASSY,AIRCRAFT,M' or comparable components is crucial for context. Without access to detailed historical procurement data for this exact item, we can infer trends from the Bell Boeing Joint Project Office's overall contract awards. The DoD, particularly through agencies like the Defense Logistics Agency (DLA) and various service branches, consistently invests billions in aircraft sustainment and modernization. Contracts for major assemblies like rotor hubs are typically long-term and high-value due to the complexity and criticality. If this is a recurring procurement for an existing platform, past spending would likely show similar award values and potentially a consistent awardee, reinforcing the sole-source nature. Significant deviations in value or frequency could indicate changes in demand, platform lifecycle, or market dynamics.

What is the justification for the sole-source award to Bell Boeing Joint Project Office?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services. For the Bell Boeing Joint Project Office, this could be due to proprietary technology, unique manufacturing capabilities essential for specific aircraft platforms (like the V-22 Osprey, which they jointly produce), or the need for seamless integration with existing systems where only they possess the necessary expertise and data. The justification would need to demonstrate that full and open competition is not feasible or not in the government's best interest. Without the specific justification document, it's presumed that Bell Boeing holds unique qualifications or intellectual property related to this aircraft hub assembly.

What are the potential risks associated with a sole-source contract for critical aircraft components?

Sole-source contracts for critical aircraft components like hub assemblies carry several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, resulting in less value for taxpayer money. Secondly, it creates a dependency on a single supplier, which can introduce supply chain vulnerabilities; any disruption at the contractor's facility (e.g., production issues, labor disputes, financial instability) could directly impact aircraft availability and readiness. Thirdly, without competitive pressure, there may be less incentive for the sole-source provider to innovate or improve efficiency. Finally, it limits opportunities for other capable manufacturers to enter the market or develop alternative solutions, potentially hindering long-term market health and resilience.

How does this contract align with the overall spending on aircraft manufacturing and sustainment within the Department of Defense?

This $27.6 million contract for aircraft hub assemblies represents a specific, yet important, expenditure within the broader DoD budget for aircraft manufacturing and sustainment. The DoD allocates substantial funds annually towards maintaining and modernizing its vast fleet of aircraft, which includes procuring new platforms, upgrading existing ones, and ensuring the availability of spare parts and components. Contracts like this one, even if sole-source, are essential for ensuring the operational readiness of specific aircraft types. Its value should be viewed in the context of the total lifecycle costs of the associated aircraft program. If this component is critical for a high-priority platform, its funding aligns with the DoD's strategic objectives for maintaining air superiority and global reach.

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: SPRPA118RW090

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: $27,659,082

Exercised Options: $27,659,082

Current Obligation: $27,659,082

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $2,057,439

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRPA115G001Y

IDV Type: BOA

Timeline