DoD Awards $41M V-22 Engineering Support to Bell-Boeing Amidst Sole-Source Concerns
Contract Overview
Contract Amount: $41,078,881 ($41.1M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2024-12-01
End Date: 2025-11-30
Contract Duration: 364 days
Daily Burn Rate: $112.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: V-22 ENGINEERING AND LOGISTICS SUSTAINMENT SUPPORT - POP 2
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $41.1 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 ENGINEERING AND LOGISTICS SUSTAINMENT SUPPORT - POP 2 Key points: 1. Significant contract value of $41.1 million for critical V-22 aircraft sustainment. 2. Sole-source award to Bell-Boeing raises questions about competition and potential price inflation. 3. Lack of competition may limit innovation and cost-saving opportunities for taxpayers. 4. The contract falls under Computer Systems Design Services, potentially indicating IT-related sustainment needs.
Value Assessment
Rating: questionable
The $41.1 million award for engineering and logistics sustainment support is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar complex aerospace sustainment services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Bell-Boeing. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure to drive down costs for this essential V-22 support.
Public Impact
Ensures continued operational readiness of the V-22 Osprey fleet. Supports critical engineering and logistics functions for a key military aircraft. Potential for increased costs due to lack of competitive bidding. Impacts the defense industrial base and the specific companies involved in V-22 sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Ensures critical V-22 sustainment
- Supports operational readiness
Sector Analysis
This contract for engineering and logistics sustainment support for the V-22 aircraft falls under the Defense sector. Spending benchmarks for complex aerospace sustainment can vary widely, but sole-source awards often deviate from competitive norms.
Small Business Impact
The contract data indicates that small businesses were not involved in this specific award, as it was a sole-source contract awarded to Bell-Boeing. There is no indication of subcontracting opportunities for small businesses within this data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value. Transparency in the justification for not competing the contract is crucial for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency on price justification
- No small business participation evident
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 $41.1 million to BELL BOEING JOINT PROJECT OFFICE. V-22 ENGINEERING AND LOGISTICS SUSTAINMENT SUPPORT - POP 2
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 $41.1 million.
What is the period of performance?
Start: 2024-12-01. End: 2025-11-30.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Oversight bodies should review the documentation supporting this decision and verify that price reasonableness was assessed through independent analysis or benchmarking, even without direct competition.
How does the cost of this sole-source contract compare to historical V-22 sustainment contracts or similar aircraft support agreements?
Comparing this $41.1 million contract to historical data or similar aircraft support agreements is essential for assessing value. Without competitive bids, a thorough analysis of cost drivers, labor rates, and material markups is needed to determine if the pricing is fair and reasonable, or if it reflects a premium for the lack of competition.
What is the long-term strategy for V-22 sustainment to ensure future competition and cost-effectiveness?
The long-term strategy should focus on fostering a competitive environment for V-22 sustainment. This could involve breaking down large sustainment packages into smaller, more competitive components, encouraging new entrants into the market, or developing government-in-house capabilities where feasible to ensure future cost-effectiveness and reduce reliance on sole-source providers.
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
Solicitation ID: SPRPA123R001U
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: $41,078,881
Exercised Options: $41,078,881
Current Obligation: $41,078,881
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $166,394
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA124D9001
IDV Type: IDC
Timeline
Start Date: 2024-12-01
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-08-28
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