DoD's $80.3M Bell Boeing PBL Service Contract Lacks Competition, Raises Oversight Concerns
Contract Overview
Contract Amount: $80,333,781 ($80.3M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2023-12-01
End Date: 2025-12-17
Contract Duration: 747 days
Daily Burn Rate: $107.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510269536!PBL SERVICE BELL BOEING
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $80.3 million to BELL BOEING JOINT PROJECT OFFICE for work described as: 8510269536!PBL SERVICE BELL BOEING Key points: 1. The contract is a sole-source award for Performance-Based Logistics (PBL) services for Bell Boeing aircraft. 2. With a value of $80.3 million, the contract spans nearly two years, ending in December 2025. 3. The lack of competition raises questions about price discovery and potential taxpayer impact. 4. The Defense Logistics Agency awarded this contract, highlighting its role in supporting aviation readiness.
Value Assessment
Rating: questionable
The contract's value of $80.3 million for PBL services is difficult to benchmark without comparable sole-source contracts. The firm-fixed-price structure aims to control costs, but the absence of competition limits external validation of pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This method limits price discovery and may result in higher costs for the government compared to a competed procurement.
Taxpayer Impact: The lack of competition for this $80.3 million contract could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Military readiness may be impacted if PBL services are not cost-effectively delivered. Taxpayers may bear higher costs due to the absence of competitive bidding. The sole-source nature of the award warrants scrutiny to ensure fair pricing and value. The contract supports critical aircraft parts and auxiliary equipment, essential for defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Performance-based logistics aims for efficiency
- Firm-fixed-price contract type
- Supports critical defense assets
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending in this area is often characterized by specialized suppliers and long-term support contracts, where competition can be challenging.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The focus on a sole-source, large-value contract suggests it is likely handled by established prime contractors rather than smaller enterprises.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Defense to ensure the contractor is delivering services effectively and at a fair price. Audits and performance monitoring are crucial for accountability.
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 discovery.
- Potential for contractor complacency.
- Lack of transparency in pricing.
- High contract value warrants close monitoring.
- No small business participation noted.
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. 8510269536!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 $80.3 million.
What is the period of performance?
Start: 2023-12-01. End: 2025-12-17.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing without competition?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one source can meet the requirement. The Department of Defense should have documented this justification. To ensure fair pricing, mechanisms like cost realism analyses, historical price comparisons, and robust negotiation strategies are employed. Regular performance reviews and audits are also critical to monitor contractor performance and costs.
What are the potential risks associated with a sole-source contract for Performance-Based Logistics (PBL) services?
The primary risk of a sole-source PBL contract is the potential for inflated pricing due to the lack of competitive pressure. This can lead to reduced value for taxpayer money. Additionally, there's a risk of complacency from the contractor, potentially impacting service quality or innovation over time. Without competition, the government has less leverage to negotiate favorable terms or drive down costs.
How does this contract contribute to the overall effectiveness and readiness of the supported aircraft platforms?
Performance-Based Logistics (PBL) contracts are designed to improve weapon system readiness and reduce costs by incentivizing contractor performance. If effectively managed, this contract should ensure the availability of necessary parts and services for Bell Boeing aircraft, thereby enhancing operational readiness. The effectiveness hinges on clear performance metrics, strong government oversight, and the contractor's ability to meet or exceed those 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: $80,333,781
Exercised Options: $80,333,781
Current Obligation: $80,333,781
Actual Outlays: $12,600,000
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $1,943,609
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: 2023-12-01
Current End Date: 2025-12-17
Potential End Date: 2025-12-17 00:00:00
Last Modified: 2025-12-17
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