DoD's V-22 Consumable Market Basket contract awarded to Bell Boeing JPO for $13.1M
Contract Overview
Contract Amount: $13,102,732 ($13.1M)
Contractor: Bell Boeing Joint Project Office
Awarding Agency: Department of Defense
Start Date: 2025-12-22
End Date: 2026-11-30
Contract Duration: 343 days
Daily Burn Rate: $38.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: V-22 PHASE 2 CONSUMABLE MARKET BASKET
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79111
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $13.1 million to BELL BOEING JOINT PROJECT OFFICE for work described as: V-22 PHASE 2 CONSUMABLE MARKET BASKET Key points: 1. Contract focuses on consumable parts for the V-22 aircraft. 2. Sole source award to Bell Boeing JPO raises competition concerns. 3. Fixed Price Incentive contract type aims to balance cost and performance. 4. Spending is within the Defense Logistics Agency's purview for aircraft parts.
Value Assessment
Rating: questionable
The contract's value of $13.1M for consumable parts is difficult to assess without specific part-level data. The lack of competition suggests potential for overpricing compared to a competitive market.
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 potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for V-22 consumable parts.
Public Impact
Ensures continued availability of critical parts for V-22 operations. Potential for increased costs due to sole-source nature. Supports the operational readiness of a key military aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Ensures supply of critical V-22 parts
- Fixed Price Incentive contract structure
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending benchmarks for consumable parts in this niche are hard to establish due to proprietary nature and specific aircraft requirements.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source award. It is unlikely that small businesses will benefit directly from this contract.
Oversight & Accountability
The Defense Logistics Agency is responsible for this award. Oversight should focus on ensuring fair pricing and performance despite the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in cost build-up.
- Supply chain dependency on a single entity.
- Limited oversight on price reasonableness without benchmarks.
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 $13.1 million to BELL BOEING JOINT PROJECT OFFICE. V-22 PHASE 2 CONSUMABLE MARKET BASKET
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 $13.1 million.
What is the period of performance?
Start: 2025-12-22. End: 2026-11-30.
What is the historical pricing trend for these V-22 consumables under previous contracts, and how does the current pricing compare?
Historical pricing data is crucial for evaluating the fairness of this sole-source award. Without comparative data from previous contracts or similar market baskets, it's challenging to determine if the $13.1M represents a reasonable price. Further analysis would require access to historical procurement records and cost breakdowns from Bell Boeing.
What are the specific risks associated with relying on a sole-source provider for these critical V-22 consumable parts?
The primary risk is the potential for price gouging and reduced quality due to the absence of competitive pressure. Dependence on a single supplier can also create supply chain vulnerabilities, potentially impacting V-22 operational readiness if the supplier faces production issues or decides to discontinue parts.
How effectively does the Fixed Price Incentive (FPI) contract structure mitigate cost risks in this sole-source scenario?
The FPI structure aims to incentivize the contractor to control costs by sharing savings or overruns with the government. However, its effectiveness is limited in a sole-source context. The baseline for incentive targets is set by the contractor, and the government still lacks the leverage that true competition provides to ensure optimal pricing.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $52,410,928
Exercised Options: $13,102,732
Current Obligation: $13,102,732
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA126D0002
IDV Type: IDC
Timeline
Start Date: 2025-12-22
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-01-13
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