DoD's $75.9M Bell Boeing Contract for Aircraft Parts: Sole-Source Award Raises Concerns
Contract Overview
Contract Amount: $75,875,420 ($75.9M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2019-12-09
End Date: 2020-11-30
Contract Duration: 357 days
Daily Burn Rate: $212.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8507831283!PBL SERVICE BELL BOEING
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $75.9 million to BELL BOEING JOINT PROJECT OFFICE for work described as: 8507831283!PBL SERVICE BELL BOEING Key points: 1. The contract awarded to Bell Boeing Joint Project Office for aircraft parts represents a significant expenditure. 2. The sole-source nature of this award limits competitive pricing and potentially increases costs for taxpayers. 3. Lack of competition poses a risk to achieving best value and could indicate potential inefficiencies. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical area for defense logistics.
Value Assessment
Rating: questionable
The contract's value of $75.9 million is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to similar contracts for aircraft parts. The firm fixed price structure offers some cost certainty, but the lack of competition is a major red flag.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, which is crucial for price discovery and ensuring the government receives the best possible value. The absence of competition here is a significant concern.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be benefiting from the most cost-effective pricing available in the market.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on these parts, making supply chain integrity crucial. Lack of transparency in sole-source contracts can erode public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is vital for maintaining military readiness. Spending benchmarks in this niche area are hard to establish without competitive data, but significant sole-source awards warrant scrutiny.
Small Business Impact
The data provided does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Sole-source awards often limit opportunities for small businesses to compete for government contracts.
Oversight & Accountability
The sole-source nature of this contract raises questions about the oversight processes that led to its non-competitive award. Further review is needed to ensure accountability and adherence to procurement regulations.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price justification.
- Reduced opportunities for small businesses.
- Risk of suboptimal value for taxpayer funds.
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 $75.9 million to BELL BOEING JOINT PROJECT OFFICE. 8507831283!PBL SERVICE BELL BOEING
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 $75.9 million.
What is the period of performance?
Start: 2019-12-09. End: 2020-11-30.
What specific justification was provided for awarding this contract on a sole-source basis, and does it align with federal procurement regulations for such exceptions?
Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the contract file would be necessary to determine the exact justification cited by the Defense Logistics Agency and to assess its compliance with regulations like FAR Part 6.
How does the unit cost of these aircraft parts compare to similar components procured through competitive means by the DoD or other federal agencies?
Without access to specific unit cost data and comparable contract information, a direct comparison is challenging. However, the absence of competition inherently suggests a higher risk of non-competitive pricing. Benchmarking against publicly available contract awards for similar parts, if identifiable, would be the next step in assessing value.
What measures are in place to ensure the quality and timely delivery of these critical aircraft parts, given the sole-source nature of the award?
While the contract type is firm fixed price, which incentivizes the contractor to control costs, oversight is still crucial. The Defense Logistics Agency likely has quality assurance surveillance plans (QASPs) and performance metrics in place. However, the lack of competition means there's less market pressure to drive continuous improvement in quality and delivery.
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
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: $75,875,420
Exercised Options: $75,875,420
Current Obligation: $75,875,420
Subaward Activity
Number of Subawards: 693
Total Subaward Amount: $128,931,384
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX20D9001
IDV Type: IDC
Timeline
Start Date: 2019-12-09
Current End Date: 2020-11-30
Potential End Date: 2020-11-30 00:00:00
Last Modified: 2022-04-05
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)