DoD's $27.2M IT contract for FMS V-22 JAPAN CETS awarded without competition

Contract Overview

Contract Amount: $27,195,202 ($27.2M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $74.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FMS V-22 JAPAN CETS - POP 2

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to BELL BOEING JOINT PROJECT OFFICE for work described as: FMS V-22 JAPAN CETS - POP 2 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration is one year, suggesting a focused scope of work. 3. The award was made to Bell Boeing Joint Project Office, a known entity in defense contracting. 4. The contract is for Computer Systems Design Services, a common IT support function. 5. The contract is not a small business set-aside, suggesting a focus on larger prime contractors. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: questionable

The contract's value of $27.2 million for a one-year IT services engagement requires careful benchmarking. Without a competitive process, it's difficult to ascertain if this price represents fair market value. The absence of competition raises concerns about potential overpricing. Further analysis would involve comparing the scope of services and pricing to similar IT support contracts awarded by the Department of Defense or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach bypasses the typical process of soliciting bids from various companies, which can limit price discovery and potentially lead to higher costs for the government. The rationale for a sole-source award is not provided, but it typically implies a unique capability or a critical need that only one vendor can fulfill.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as there was no opportunity for vendors to compete and offer lower bids. This can result in a less efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the FMS V-22 program, which will receive essential IT support. The services delivered include computer systems design, crucial for maintaining and enhancing the operational IT infrastructure supporting the V-22 aircraft program. The geographic impact is primarily within Texas, where the contractor is located. Workforce implications are likely to involve IT professionals employed by the contractor, Bell Boeing Joint Project Office.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer money.
Sole-source awards can stifle innovation by not engaging a broader market of potential solution providers.
The specific IT services and their criticality to the FMS V-22 program are not detailed, making a full risk assessment challenging.
The contract's value, while not excessively high for defense IT, warrants scrutiny due to the non-competitive nature of the award.

Positive Signals

The contract is firm-fixed-price, providing cost certainty for the government.
The contractor, Bell Boeing Joint Project Office, is an established entity with experience in defense programs.
The contract duration is one year, allowing for periodic review and potential re-competition in the future.
The award is for computer systems design services, a fundamental IT requirement.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market within the defense sector is substantial, with agencies constantly seeking to upgrade and maintain complex systems. This contract likely supports the specialized IT needs of the FMS V-22 program, which requires robust and secure systems. Benchmarking this contract's value would involve comparing it to other IT support contracts for major defense platforms, considering the unique requirements of aviation systems.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This suggests that the primary contractor, Bell Boeing Joint Project Office, is expected to perform the majority of the work. The absence of small business participation could mean missed opportunities for smaller, specialized IT firms to contribute to this defense program and potentially limit the overall diversity of the supply chain for this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. The Defense Logistics Agency, as the awarding agency, would be responsible for monitoring performance and ensuring compliance with contract terms. Transparency is limited due to the sole-source nature of the award, and specific Inspector General jurisdiction would depend on the nature of any potential issues arising from contract performance or financial management.

Related Government Programs

FMS V-22 Program Support
Department of Defense IT Services
Defense Logistics Agency Contracts
Computer Systems Design Services

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to BELL BOEING JOINT PROJECT OFFICE. FMS V-22 JAPAN CETS - 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 $27.2 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the specific nature of the 'FMS V-22 JAPAN CETS' and why is it critical to the Department of Defense?

FMS V-22 JAPAN CETS likely refers to Foreign Military Sales (FMS) support for the V-22 Osprey aircraft program, specifically related to Command, Engagement, and Tactical Systems (CETS) for Japan. The V-22 Osprey is a tiltrotor aircraft used for various military operations, including troop transport, cargo, and special operations. Its advanced capabilities require sophisticated IT systems for command and control, mission planning, and operational execution. Ensuring the reliability and security of these CETS IT systems is critical for the operational effectiveness and safety of the V-22s deployed by Japan under the FMS program. The 'CETS' designation suggests a focus on the integrated systems that enable communication, situational awareness, and mission management for the aircraft.

What are the potential risks associated with awarding a $27.2 million IT contract on a sole-source basis?

The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying more than necessary. Without bids from multiple vendors, there's no market pressure to drive down costs. This can result in a less favorable value for taxpayer money. Additionally, sole-source awards can limit the government's access to innovative solutions or specialized expertise that other companies might offer. It also reduces transparency in the procurement process. For this specific $27.2 million contract, the risk is that the chosen contractor, Bell Boeing Joint Project Office, may not have been incentivized to offer the most cost-effective or technologically advanced IT solutions compared to a competitive scenario.

How does the firm-fixed-price contract type mitigate risks for the government in this scenario?

A firm-fixed-price (FFP) contract type is generally advantageous for the government as it shifts the majority of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides budget certainty for the government, as the total cost of the contract is known upfront. For this $27.2 million IT services contract, the FFP structure means the Department of Defense will not incur additional costs if the contractor's expenses exceed their estimates. This predictability is valuable, especially in IT projects where unforeseen technical challenges can arise, though it doesn't address the risk of the initial price being too high due to the lack of competition.

What is the significance of the contract being a 'delivery order' and not a standalone contract?

The designation 'delivery order' suggests that this $27.2 million award is likely a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar master agreement. IDIQ contracts allow agencies to procure supplies or services over a period of time up to a certain maximum amount. Issuing delivery orders against such contracts is a common procurement method. The significance here is that the underlying IDIQ contract may have been competed previously, potentially introducing some level of competition at an earlier stage. However, the specific terms and competition level of this individual delivery order are determined by its sole-source nature. It also implies that the Bell Boeing Joint Project Office may have an existing relationship or framework agreement with the DoD for providing such services.

What does the contractor's identity, Bell Boeing Joint Project Office, imply about this contract?

Bell Boeing Joint Project Office is a well-established entity formed by Bell Helicopter and Boeing, primarily known for its work on the V-22 Osprey program. Awarding this IT contract to them suggests a strong existing relationship and deep familiarity with the V-22 platform and its operational requirements. This familiarity can be an advantage in understanding the specific IT needs for systems like CETS. However, it also reinforces the sole-source nature of the award, as this entity is uniquely positioned to provide services directly related to the V-22. While their expertise is valuable, it also means the government is relying on a single, albeit experienced, provider, potentially missing out on broader market innovation or cost efficiencies.

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: $27,195,202

Exercised Options: $27,195,202

Current Obligation: $27,195,202

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