DoD's $80M Bell Boeing Contract for Aircraft Parts: Sole-Source Award Raises Concerns
Contract Overview
Contract Amount: $80,186,719 ($80.2M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2020-11-30
End Date: 2022-11-30
Contract Duration: 730 days
Daily Burn Rate: $109.8K/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 $80.2 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 is a significant expenditure. 2. Competition was limited, with a sole-source award raising questions about price discovery. 3. The risk lies in potential overpayment due to lack of competitive bidding. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract's value of $80.2 million over two years for aircraft parts needs benchmarking against similar sole-source awards. Without competitive data, assessing fair pricing is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying for essential aircraft parts due to the sole-source nature of the award. The Department of Defense relies on these parts, making the cost and availability critical. Lack of transparency in pricing could impact future defense procurement strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential for defense operations
- Firm fixed price contract
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Benchmarking spending in this niche area is challenging without more specific data on comparable parts and suppliers.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the government received fair value. Accountability for the procurement decision should be reviewed.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- Missed opportunities for small business participation.
- Dependence on a single supplier.
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 $80.2 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 $80.2 million.
What is the period of performance?
Start: 2020-11-30. End: 2022-11-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reason, but it implies a lack of readily available alternatives or a critical dependency on Bell Boeing's specific offerings for these aircraft parts.
What is the estimated cost savings if this contract had been competitively bid?
Estimating cost savings from a hypothetical competitive bid is challenging without market research or data from similar procurements. However, sole-source contracts often carry a price premium compared to competitive ones. A reasonable estimate for savings could range from 10% to 30%, but this is speculative and depends heavily on the specific parts and market dynamics.
How does the performance of these parts compare to industry standards?
Performance data for these specific aircraft parts is not provided in the data. However, given the long-standing relationship and the nature of defense procurement, it's likely the parts meet stringent military specifications. Further analysis would require access to quality assurance reports and operational performance metrics.
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: $80,186,719
Exercised Options: $80,186,719
Current Obligation: $80,186,719
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX20D9001
IDV Type: IDC
Timeline
Start Date: 2020-11-30
Current End Date: 2022-11-30
Potential End Date: 2022-11-30 00:00:00
Last Modified: 2023-01-03
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