DoD's $80.3M Bell Boeing Contract for PBL Material Raises Questions on Competition and Value
Contract Overview
Contract Amount: $80,340,935 ($80.3M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2021-11-30
End Date: 2023-07-31
Contract Duration: 608 days
Daily Burn Rate: $132.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8508687334!PBL MATERIAL BELL BOEING
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $80.3 million to BELL BOEING JOINT PROJECT OFFICE for work described as: 8508687334!PBL MATERIAL BELL BOEING Key points: 1. Contract awarded to Bell Boeing Joint Project Office for PBL Material. 2. Significant spending on aircraft parts, potentially impacting readiness. 3. Lack of competition raises concerns about price discovery and value for taxpayer dollars. 4. Sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing, a critical defense area.
Value Assessment
Rating: questionable
The contract value of $80.3 million for PBL Material is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The lack of competition for this $80.3 million contract means taxpayers may be overpaying for essential aircraft parts, reducing the overall value of the procurement.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of Defense relies on these parts, making cost-effectiveness crucial for budget allocation. Transparency in sole-source contracts is vital to ensure public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Essential defense material
- Long-term contract duration
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is vital for national defense. Spending benchmarks are difficult to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract. Sole-source awards often bypass opportunities for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential gaps in oversight regarding procurement strategies. Further review is needed to understand why this contract was not opened to competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency
- No small business participation indicated
- Questionable value for taxpayer money
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 $80.3 million to BELL BOEING JOINT PROJECT OFFICE. 8508687334!PBL MATERIAL 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 $80.3 million.
What is the period of performance?
Start: 2021-11-30. End: 2023-07-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. However, without detailed documentation, it's impossible to confirm the specific rationale. Agencies are required to conduct market research and price analyses to ensure fair and reasonable pricing even in sole-source situations, but the absence of competition inherently reduces the government's leverage.
What is the potential risk to mission readiness if the pricing for these essential aircraft parts is not optimized due to lack of competition?
If the pricing is not optimized, the Department of Defense might procure fewer parts than needed within the allocated budget, or divert funds from other critical areas. This could lead to shortages of essential components, impacting aircraft maintenance schedules and overall mission readiness. Over time, inflated costs for sustainment can strain the defense budget significantly.
How effective is the current procurement strategy in securing the best value for taxpayer dollars in the 'Other Aircraft Parts' sector, given this sole-source award?
This sole-source award suggests the current strategy may not be consistently effective in securing the best value for taxpayer dollars in this specific instance. While sole-source contracts can be necessary, a pattern of non-competed awards in critical sectors like aircraft parts can lead to higher costs and reduced efficiency compared to competitive procurements.
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: $80,340,935
Exercised Options: $80,340,935
Current Obligation: $80,340,935
Actual Outlays: $14,940,550
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,319,996
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: 2021-11-30
Current End Date: 2023-07-31
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2023-07-12
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