DoD's $210.6M V-22 Program PBL&E Effort Awarded to Bell Boeing Joint Project Office
Contract Overview
Contract Amount: $210,645,163 ($210.6M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2019-12-01
End Date: 2020-11-30
Contract Duration: 365 days
Daily Burn Rate: $577.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: PBL&E EFFORT FOR THE V-22 PROGRAM
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $210.6 million to BELL BOEING JOINT PROJECT OFFICE for work described as: PBL&E EFFORT FOR THE V-22 PROGRAM Key points: 1. Significant contract value of over $210 million for V-22 program sustainment. 2. Sole-source award to Bell Boeing Joint Project Office indicates limited competition. 3. Fixed Price Incentive contract type aims to balance cost control with performance. 4. Defense sector spending, specifically on aircraft parts, is a key area of focus.
Value Assessment
Rating: fair
The contract value of $210.6 million for PBL&E effort is substantial. Benchmarking against similar sustainment contracts for complex aircraft programs is difficult without more detailed cost breakdowns, but the fixed-price incentive structure suggests an attempt at cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to the Bell Boeing Joint Project Office. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers compared to a competitively bid contract.
Public Impact
Taxpayers are funding a significant sustainment effort for the V-22 aircraft. The V-22 program is critical for military operations, impacting readiness and capabilities. Lack of competition raises concerns about the efficiency and cost-effectiveness of this spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns with Fixed Price Incentive contract type.
- Lack of transparency in the procurement process.
Positive Signals
- Focus on sustainment for a critical military asset (V-22).
- Contract aims to incentivize performance through incentive clauses.
Sector Analysis
This contract falls within the Defense sector, specifically for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. Spending in this area is crucial for maintaining military readiness, but often involves complex, high-value contracts with limited competition.
Small Business Impact
The award was made to the Bell Boeing Joint Project Office, which is a joint venture. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), suggesting a level of oversight. However, the sole-source nature of the award warrants scrutiny to ensure fair pricing and effective use of funds.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited transparency
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $210.6 million to BELL BOEING JOINT PROJECT OFFICE. PBL&E EFFORT FOR THE V-22 PROGRAM
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $210.6 million.
What is the period of performance?
Start: 2019-12-01. End: 2020-11-30.
What is the specific breakdown of costs within this $210.6 million award, and how does it compare to industry benchmarks for similar sustainment efforts?
A detailed cost breakdown is not publicly available for this sole-source award. Without this information, it is challenging to perform a precise comparison against industry benchmarks for sustainment of complex aircraft like the V-22. The fixed-price incentive structure suggests costs are tied to performance targets, but the absence of competition limits the ability to validate the overall value for money.
What are the primary risks associated with a sole-source award for aircraft sustainment, and how are these risks being mitigated by the DoD?
The primary risks of a sole-source award include inflated pricing due to lack of competition, reduced innovation, and potential for vendor complacency. Mitigation strategies could involve robust negotiation by the contracting officer, reliance on historical pricing data, and strong performance monitoring by DCMA. However, the inherent limitations of sole-source procurement remain.
How effective is the Fixed Price Incentive (FPI) contract type in ensuring cost efficiency and performance for the V-22 program's PBL&E effort?
The FPI contract type aims to provide a balance by establishing a target cost and target profit, with adjustments based on actual costs and performance. This can incentivize the contractor to control costs while meeting program objectives. However, the effectiveness is highly dependent on the realism of the target cost and the clarity of performance metrics, especially in a sole-source context where negotiation leverage is reduced.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $212,194,753
Exercised Options: $212,194,753
Current Obligation: $210,645,163
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX19D9410
IDV Type: IDC
Timeline
Start Date: 2019-12-01
Current End Date: 2020-11-30
Potential End Date: 2020-11-30 00:00:00
Last Modified: 2025-10-22
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