DoD Awards $2.4M for CMV-22 Deployment Support, Lacking Competition

Contract Overview

Contract Amount: $2,404,494 ($2.4M)

Contractor: Bell Boeing Joint Project Office

Awarding Agency: Department of Defense

Start Date: 2025-12-01

End Date: 2026-11-30

Contract Duration: 364 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CMV-22 DEPLOYMENT SUPPORT - POP 3

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79111

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to BELL BOEING JOINT PROJECT OFFICE for work described as: CMV-22 DEPLOYMENT SUPPORT - POP 3 Key points: 1. Significant contract value of $2.4 million awarded. 2. Sole-source award raises concerns about price discovery and competition. 3. Potential for higher costs due to lack of competitive bidding. 4. IT services contract supports critical defense logistics.

Value Assessment

Rating: questionable

The contract value of $2.4 million for computer systems design services is difficult to benchmark without more specific details on the scope of work. However, the lack of competition suggests potential for inflated pricing compared to a fully competed scenario.

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. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these services, as competitive forces were not leveraged to ensure the lowest possible price.

Public Impact

Taxpayers may be overpaying for essential IT support services. Lack of transparency in the procurement process. Potential impact on readiness if funds are not optimally utilized.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Potential for overpricing

Positive Signals

  • Supports critical defense deployment
  • Clear contract duration

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending in this area for the Department of Defense is substantial, and competitive bidding is crucial for cost efficiency.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, which limits opportunities for small business participation in this contract.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid is fair and reasonable, and that future similar requirements are competed.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Defense Logistics Agency Programs

Risk Flags

  • Sole-source award limits competition.
  • Potential for inflated pricing.
  • Lack of transparency in procurement.
  • No indication of small business participation.

Tags

computer-systems-design-services, department-of-defense, tx, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to BELL BOEING JOINT PROJECT OFFICE. CMV-22 DEPLOYMENT SUPPORT - POP 3

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 $2.4 million.

What is the period of performance?

Start: 2025-12-01. End: 2026-11-30.

What specific justification was provided for the sole-source award, and how does it align with federal procurement regulations for limiting competition?

The provided data does not include the specific justification for the sole-source award. Federal regulations typically require a compelling reason, such as unique capabilities or urgent needs, to bypass full and open competition. Without this justification, it's difficult to assess the validity of the procurement method and its adherence to procurement principles designed to ensure fair pricing and broad market access.

What is the estimated cost savings that could have been achieved if this contract had been competed?

Estimating precise cost savings without a competitive bidding process is challenging. However, studies consistently show that competitive procurements can yield significant savings, often ranging from 10% to 30% or more compared to sole-source awards. For this $2.4 million contract, potential savings could range from $240,000 to over $720,000, depending on market conditions and the specific services rendered.

How will the effectiveness of the 'Computer Systems Design Services' be measured and ensured under this sole-source contract?

Effectiveness measurement typically relies on performance metrics and deliverables outlined in the contract. For sole-source awards, robust oversight is even more critical. The Defense Logistics Agency should have clear performance standards, regular progress reviews, and mechanisms for addressing any deficiencies to ensure the contractor meets requirements and taxpayer funds are used effectively, despite the lack of competitive pressure.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer 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: $14,426,961

Exercised Options: $2,404,494

Current Obligation: $2,404,494

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRPA124D9003

IDV Type: IDC

Timeline

Start Date: 2025-12-01

Current End Date: 2026-11-30

Potential End Date: 2026-11-30 00:00:00

Last Modified: 2026-01-13

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