DoD's $194M V-22 Aircraft PBL&E Effort Awarded to Bell Boeing Joint Project Office
Contract Overview
Contract Amount: $194,407,926 ($194.4M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2021-12-01
End Date: 2022-12-31
Contract Duration: 395 days
Daily Burn Rate: $492.2K/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 $194.4 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 of $194.4 million for V-22 aircraft sustainment. 2. Sole-source award to Bell Boeing Joint Project Office indicates limited competition. 3. Fixed Price Incentive contract type aims to balance cost and performance. 4. Focus on Performance-Based Logistics & Sustainment for critical defense assets.
Value Assessment
Rating: fair
The contract's fixed-price incentive structure suggests an attempt to control costs while ensuring performance. However, without competitive benchmarks, assessing the pricing's fairness against market rates is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, leading to a sole-source award to the Bell Boeing Joint Project Office. This lack of competition limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The absence of competition may result in higher prices than could be achieved through a competitive bidding process, impacting taxpayer value.
Public Impact
Ensures continued operational readiness of the V-22 Osprey fleet. Supports critical defense capabilities and national security objectives. Potential for cost overruns due to sole-source nature. Impacts the supply chain for specialized aircraft parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost creep
Positive Signals
- Performance-based contract structure
- Focus on sustainment of critical asset
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft parts and auxiliary equipment manufacturing. Spending in this area is crucial for maintaining military readiness and technological superiority.
Small Business Impact
The award to the Bell Boeing Joint Project Office, a joint venture, does not explicitly indicate opportunities for small businesses. Further analysis would be needed to determine if small businesses are subcontracting opportunities within this effort.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. Robust monitoring by the Defense Logistics Agency is essential to mitigate risks associated with limited competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost escalation without competitive pressure.
- Reliance on a single entity for critical sustainment.
- Lack of transparency in pricing without market comparison.
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 $194.4 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 $194.4 million.
What is the period of performance?
Start: 2021-12-01. End: 2022-12-31.
What is the historical cost performance of similar PBL&E contracts for major defense platforms?
Historical data on similar Performance-Based Logistics & Sustainment (PBL&E) contracts for major defense platforms often shows a mixed bag. While well-structured PBL&E can drive efficiency and reduce total ownership costs, poorly defined scopes or lack of competition can lead to cost overruns and contractor lock-in. Benchmarking against these past efforts is crucial for assessing the value of the current V-22 contract.
What are the specific performance metrics and incentives tied to this contract, and how are they measured?
The contract specifies a Fixed Price Incentive (FPI) type, suggesting performance metrics are tied to achieving certain outcomes, likely related to aircraft availability, reliability, or turnaround time. The 'incentive' aspect implies that exceeding targets could lead to higher profits for the contractor, while falling short might reduce them. Detailed metrics and measurement methodologies are critical for effective oversight and ensuring taxpayer value.
How does the lack of competition for this V-22 sustainment contract impact long-term cost-effectiveness for the DoD?
The sole-source nature of this contract significantly limits competitive pressure, which is a primary driver of cost-effectiveness. Without competing vendors, the Bell Boeing Joint Project Office may not have the same incentive to offer the most competitive pricing or innovative cost-saving solutions. This can lead to higher sustainment costs over the life cycle of the V-22 aircraft, potentially impacting the DoD's budget and readiness.
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: $194,407,926
Exercised Options: $194,407,926
Current Obligation: $194,407,926
Actual Outlays: $9,126,192
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $932,774
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: 2021-12-01
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2023-12-11
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