DoD Awards $80M Firm Fixed Price Contract to Bell Boeing for PBL Services
Contract Overview
Contract Amount: $80,025,045 ($80.0M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2022-11-29
End Date: 2024-10-31
Contract Duration: 702 days
Daily Burn Rate: $114.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8509532034!PBL SERVICE BELL BOEING
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $80.0 million to BELL BOEING JOINT PROJECT OFFICE for work described as: 8509532034!PBL SERVICE BELL BOEING Key points: 1. Contract awarded to Bell Boeing Joint Project Office for $80M. 2. Services are for Performance-Based Logistics (PBL) for aircraft parts. 3. Contract was not competed, raising potential value concerns. 4. Sector is Defense Logistics Agency, specifically aircraft parts manufacturing.
Value Assessment
Rating: fair
The contract's value of $80M for PBL services is significant. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or market rates for similar support.
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 lack of competition may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: The absence of competition could mean taxpayers are not receiving the best possible price for these essential aircraft support services.
Public Impact
Essential support for critical defense aircraft. Potential for higher costs due to lack of competition. Impact on readiness if services are not cost-effective. Long-term implications for sustainment costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Firm Fixed Price contract type may not incentivize cost reduction
Positive Signals
- Performance-Based Logistics (PBL) aims for improved readiness and reduced lifecycle costs.
- Contract awarded to a joint venture with established expertise.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft parts and auxiliary equipment manufacturing through Performance-Based Logistics. Spending in this area is critical for maintaining military readiness, but often involves complex, long-term sustainment contracts.
Small Business Impact
The data indicates this contract was awarded to Bell Boeing Joint Project Office, a large entity. There is no indication of small business participation in this specific award, which is common for large sole-source defense contracts.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement is robust and that pricing is reasonable. Accountability for performance under the PBL contract will be key.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on performance metrics
- Sole-source award justification requires scrutiny
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 $80.0 million to BELL BOEING JOINT PROJECT OFFICE. 8509532034!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 $80.0 million.
What is the period of performance?
Start: 2022-11-29. End: 2024-10-31.
What is the specific justification for the sole-source award of this $80M contract, and has an adequate price competition analysis been performed?
The justification for a sole-source award, especially for a contract of this magnitude, typically relies on factors like unique capabilities, urgent need, or lack of viable alternatives. An adequate price competition analysis would involve comparing the proposed price against historical data, independent government cost estimates, or benchmark data from similar contracts, even if not directly competitive.
How does the performance of Bell Boeing under this PBL contract compare to industry benchmarks for aircraft parts sustainment, and what are the key performance indicators (KPIs)?
Assessing performance against industry benchmarks requires access to specific KPIs defined in the contract, such as aircraft availability rates, turnaround times for repairs, and inventory management efficiency. Without these details, it's challenging to evaluate if the $80M investment is yielding optimal results compared to what other providers might achieve or what similar contracts cost.
What is the long-term cost projection for this PBL service, and are there mechanisms within the contract to ensure cost-effectiveness over the full contract duration?
The long-term cost projection for PBL services is crucial, as these contracts often span several years. Mechanisms for cost-effectiveness might include price adjustment clauses tied to market indices, performance incentives that reduce payment for unmet targets, or options for re-competition if market conditions change. Understanding these provisions is vital for taxpayer impact.
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: $80,025,045
Exercised Options: $80,025,045
Current Obligation: $80,025,045
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $894,244
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: 2022-11-29
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2024-10-22
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