DoD Awards $27.3M for V-22 CETS Computer Systems Design Services to Bell Boeing
Contract Overview
Contract Amount: $27,272,092 ($27.3M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2023-12-01
End Date: 2025-03-31
Contract Duration: 486 days
Daily Burn Rate: $56.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FMS JAPAN V-22 CETS
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $27.3 million to BELL BOEING JOINT PROJECT OFFICE for work described as: FMS JAPAN V-22 CETS Key points: 1. Significant contract value for specialized IT services. 2. Sole-source award to a joint venture raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Defense sector IT spending is substantial and growing.
Value Assessment
Rating: questionable
The contract value of $27.3M for computer systems design services is substantial. Without competitive pricing data, it's difficult to assess if this represents fair value compared to similar contracts in the defense IT sector.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Bell Boeing Joint Project Office. This limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: Taxpayers may be paying a premium for these services due to the lack of competition.
Public Impact
Ensures continued support for critical V-22 aircraft systems. Impacts the operational readiness of a key defense asset. Highlights reliance on specific contractors for specialized defense IT.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Supports critical defense platform
- Long-term contract duration
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Defense IT spending is a significant portion of the overall federal IT budget, often characterized by complex requirements and specialized vendors.
Small Business Impact
The contract was awarded to a joint venture and there is no indication of small business participation. This suggests limited opportunities for small businesses in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable. Further oversight may be needed to understand the justification for not competing the requirement.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited small business participation
- Dependency on a single contractor
Tags
computer-systems-design-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.3 million to BELL BOEING JOINT PROJECT OFFICE. FMS JAPAN V-22 CETS
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 $27.3 million.
What is the period of performance?
Start: 2023-12-01. End: 2025-03-31.
What is the justification for the sole-source award of this significant IT services contract?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. For the V-22 CETS, this could relate to specialized knowledge of the aircraft's integrated systems or specific software developed by Bell Boeing.
How does the lack of competition impact the overall cost-effectiveness for the Department of Defense?
A lack of competition generally leads to higher costs as the awarded vendor faces no pressure to offer competitive pricing. Without bids from other qualified companies, the government cannot be assured it is receiving the best possible price for the services rendered, potentially leading to inefficient use of taxpayer funds.
What are the risks associated with relying on a single provider for critical IT systems like the V-22 CETS?
The primary risks include vendor lock-in, lack of innovation, and potential price gouging. If the sole provider experiences financial difficulties or decides to exit the market, it could severely disrupt support for the V-22 program. Furthermore, the absence of competitive pressure may stifle innovation in system design and maintenance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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, 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: $27,272,092
Exercised Options: $27,272,092
Current Obligation: $27,272,092
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA124D9000
IDV Type: IDC
Timeline
Start Date: 2023-12-01
Current End Date: 2025-03-31
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-07-03
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