DoD's $375M T6A UCA contract for Lot 14 Long-Lead awarded to Textron Aviation Defense LLC

Contract Overview

Contract Amount: $374,967,411 ($375.0M)

Contractor: Textron Aviation Defense LLC

Awarding Agency: Department of Defense

Start Date: 2006-10-04

End Date: 2017-02-28

Contract Duration: 3,800 days

Daily Burn Rate: $98.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T6A UCA FOR LOT 14 LONG-LEAD

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67206, UNITED STATES OF AMERICA

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $375.0 million to TEXTRON AVIATION DEFENSE LLC for work described as: T6A UCA FOR LOT 14 LONG-LEAD Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long-lead time procurement suggests a need for early component acquisition. 3. The contract value is substantial, indicating a significant investment in aircraft manufacturing. 4. Fixed-price contract type shifts cost risk to the contractor. 5. The duration of the contract is extensive, spanning over 3 years. 6. Awarded by the Department of the Air Force, indicating a specific military need.

Value Assessment

Rating: fair

Benchmarking the value of this specific long-lead procurement is challenging without comparable sole-source awards for similar aircraft components. The firm fixed-price structure aims to control costs, but the lack of competition inherently limits the ability to assess optimal pricing. The total award amount of over $374 million for long-lead items suggests a significant investment, but a direct value-for-money assessment is hindered by the procurement method.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Textron Aviation Defense LLC, was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and fosters innovation. The lack of competition means that taxpayers do not benefit from the potential cost savings or wider range of solutions that a competitive environment could provide.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price or value, as there was no opportunity for multiple companies to bid and offer competitive terms.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially future pilots who will utilize the T6A aircraft. The contract supports the manufacturing and acquisition of long-lead components for the T6A trainer aircraft. The geographic impact is primarily centered in Kansas, where Textron Aviation Defense LLC is located. This contract supports jobs within the aerospace manufacturing sector, specifically at Textron Aviation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value.
Lack of transparency in the justification for sole-source procurement.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Award to an established defense contractor with existing expertise in aircraft manufacturing.
Supports a critical training platform for military aviators.

Sector Analysis

The aerospace manufacturing sector is characterized by high barriers to entry, significant R&D investment, and long production cycles. This contract falls within the defense sub-sector, specifically focusing on trainer aircraft. Comparable spending benchmarks would involve other sole-source or competitively awarded contracts for aircraft components or sub-assemblies, which are often in the hundreds of millions of dollars due to the complexity and scale of defense aviation.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The sole-source nature of the award further reduces the likelihood of direct small business participation through competitive subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for cost overruns. Transparency is limited due to the sole-source nature of the award, with justifications for such awards usually being internal to the agency.

Related Government Programs

T6A Texan II Joint Primary Aircraft Training System (JPATS)
Air Force Trainer Aircraft Procurement
Long-Lead Time Material Acquisition

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $375.0 million to TEXTRON AVIATION DEFENSE LLC. T6A UCA FOR LOT 14 LONG-LEAD

Who is the contractor on this award?

The obligated recipient is TEXTRON AVIATION DEFENSE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $375.0 million.

What is the period of performance?

Start: 2006-10-04. End: 2017-02-28.

What is the specific justification for awarding this contract on a sole-source basis to Textron Aviation Defense LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available, or when there is a compelling urgency, or when specific capabilities are unique to a single contractor. For a long-lead time procurement like this, the justification might relate to the need to secure specialized components or manufacturing processes that only Textron Aviation Defense LLC can provide within the required timeframe to avoid program delays. Further investigation into the contract's award documentation would be necessary to ascertain the precise rationale.

How does the $374.9 million award for Lot 14 Long-Lead compare to previous or subsequent T6A UCA procurements?

The provided data only details this specific award for Lot 14 Long-Lead. To compare it to previous or subsequent procurements, one would need access to historical contract data for the T6A UCA program. This would involve searching for other contract awards related to the T6A, identifying their values, and determining if they were for similar long-lead items or different phases of production. Without that comparative data, it's difficult to assess if this $374.9 million figure represents a typical or anomalous expenditure for this type of procurement within the T6A program's lifecycle.

What are the primary risks associated with a sole-source, firm-fixed-price contract for long-lead time items?

A primary risk with a sole-source contract is the potential for inflated pricing due to the lack of competition, meaning the government may pay more than it would in a competitive environment. For firm-fixed-price contracts, the risk is generally shifted to the contractor, but in a sole-source scenario, the contractor may have less incentive to aggressively manage costs if they know they are the only option. For long-lead time items, risks include potential delays in delivery if the sole-source supplier encounters production issues, and the possibility that the government becomes locked into a specific supplier for future needs, limiting future competition and potentially increasing long-term costs.

What is the significance of 'Lot 14 Long-Lead' in the context of the T6A UCA program?

'Lot 14 Long-Lead' refers to a specific procurement action within the broader T6A UCA (likely referring to a variant or upgrade of the T-6 Texan II aircraft) program. 'Long-Lead' indicates that the contract is for components or materials that require a significant amount of time to manufacture or procure, and their acquisition must begin well in advance of the main production or assembly phase to ensure timely delivery of the final aircraft. 'Lot 14' suggests this is one of many distinct procurement packages or production lots within the program's lifecycle, possibly representing a specific set of components or a particular production run.

What is Textron Aviation Defense LLC's track record with the T6A program or similar aircraft manufacturing contracts?

Textron Aviation Defense LLC, as the manufacturer of the T-6 Texan II, has a direct and established track record with this specific aircraft program. The T-6 Texan II is a well-known primary trainer aircraft used by the U.S. Air Force, Navy, and several international partners. Textron Aviation has been involved in the production, modification, and support of the T-6 fleet for many years. Their experience encompasses the complexities of military aircraft manufacturing, including managing supply chains for specialized components and adhering to stringent quality and performance standards. This existing relationship and expertise are likely key factors in the sole-source award.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hawker Beechcraft Global Customer Support Corporation (UEI: 795448567)

Address: 201 S GREENWICH, WICHITA, KS, 67207

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $567,608,213

Exercised Options: $567,608,213

Current Obligation: $374,967,411

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA861707D6151

IDV Type: IDC

Timeline