DoD's $188.6M V-22 Aircraft PBL&E Effort Awarded to Bell Boeing Joint Project Office
Contract Overview
Contract Amount: $188,572,655 ($188.6M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2020-12-01
End Date: 2021-11-30
Contract Duration: 364 days
Daily Burn Rate: $518.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: PBL&E EFFORT FOR THE V-22 AIRCRAFT
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $188.6 million to BELL BOEING JOINT PROJECT OFFICE for work described as: PBL&E EFFORT FOR THE V-22 AIRCRAFT Key points: 1. Significant contract value for sustainment of V-22 aircraft. 2. Sole-source award to Bell Boeing Joint Project Office raises competition concerns. 3. Potential risk associated with single-source provider for critical aircraft parts. 4. Spending falls within the defense sector, specifically aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract value of $188.6 million for PBL&E effort is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to similar sustainment contracts for complex aircraft.
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 absence of competition for this significant contract may result in taxpayers paying a premium for V-22 aircraft sustainment.
Public Impact
Ensures continued operational readiness of the V-22 Osprey fleet. Supports a critical defense platform used by multiple military branches. Potential for cost overruns due to sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Lack of transparency in pricing
- Potential for cost escalation
Positive Signals
- Ensures availability of critical aircraft parts
- Supports operational readiness of V-22 aircraft
Sector Analysis
This contract falls under the Defense sector, specifically for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. Spending benchmarks for sustainment contracts of this nature are highly variable, but a sole-source award often deviates from cost-effective practices.
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 was awarded via a delivery order under an existing arrangement. Oversight is crucial to ensure the Bell Boeing Joint Project Office provides value and manages costs effectively, especially given the sole-source nature.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price escalation
- Dependence on a single provider
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 $188.6 million to BELL BOEING JOINT PROJECT OFFICE. PBL&E EFFORT FOR THE V-22 AIRCRAFT
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 $188.6 million.
What is the period of performance?
Start: 2020-12-01. End: 2021-11-30.
What is the historical cost performance of PBL&E efforts for the V-22 aircraft under this contractor?
Analyzing historical cost data for previous Performance-Based Logistics and Sustainment (PBL&E) efforts for the V-22 aircraft under the Bell Boeing Joint Project Office is crucial. This would reveal trends in cost efficiency, identify any recurring issues, and provide a basis for evaluating the current contract's value and potential for cost overruns.
What are the specific risks associated with relying on a sole-source provider for V-22 aircraft sustainment?
Sole-source reliance for V-22 sustainment poses risks such as potential price gouging, lack of innovation, and vulnerability to supply chain disruptions if the sole provider faces issues. It also limits the government's leverage in negotiating favorable terms and could lead to extended lead times for parts and services.
How does the government ensure the effectiveness and value for money in this sole-source contract?
Effectiveness and value are typically ensured through robust contract management, performance metrics, and potentially independent cost analyses. The Department of Defense would need to closely monitor the Bell Boeing Joint Project Office's performance against defined objectives and ensure that the pricing remains fair and reasonable, despite the lack of competition.
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
Solicitation ID: SPRPA119R001E
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: $188,572,655
Exercised Options: $188,572,655
Current Obligation: $188,572,655
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $605,874
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX19D9410
IDV Type: IDC
Timeline
Start Date: 2020-12-01
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 00:00:00
Last Modified: 2023-12-11
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