DoD's $32.3M Aircraft Manufacturing Contract with Textron Aviation Defense LLC Lacks Competition
Contract Overview
Contract Amount: $32,354,903 ($32.4M)
Contractor: Textron Aviation Defense LLC
Awarding Agency: Department of Defense
Start Date: 2007-05-07
End Date: 2016-10-31
Contract Duration: 3,465 days
Daily Burn Rate: $9.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: T6A GBTS ATD AUP NRE
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67207
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $32.4 million to TEXTRON AVIATION DEFENSE LLC for work described as: T6A GBTS ATD AUP NRE Key points: 1. Significant spending on aircraft manufacturing, totaling over $32 million. 2. Sole provider Textron Aviation Defense LLC dominates this contract. 3. Potential for inflated costs due to limited competition. 4. The Defense sector sees substantial investment in aircraft production.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, raises concerns about cost efficiency. Without competitive bidding, it's difficult to benchmark pricing against similar contracts or market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and negotiation leverage, potentially leading to higher expenditures than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure to drive down costs.
Public Impact
Taxpayer funds allocated to a single, non-competed defense contract. Potential for reduced innovation and efficiency without market competition. Impact on the broader defense industrial base and small business participation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Sole-source award
Positive Signals
- Supports critical defense capabilities
- Established contractor with relevant experience
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industry. Spending benchmarks in this sector are highly variable, but significant sole-source awards often warrant closer scrutiny.
Small Business Impact
The contract data indicates that small business participation was not a factor (sb: false). This suggests that opportunities for small businesses within this specific procurement were limited or non-existent.
Oversight & Accountability
The 'NOT COMPETED' status and sole-source nature of this award suggest potential oversight gaps. Further review is needed to understand the justification for not seeking competitive bids and ensure accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Sole-source award
- Cost-plus contract type
- Potential for cost overruns
- Limited small business participation
Tags
aircraft-manufacturing, department-of-defense, ks, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.4 million to TEXTRON AVIATION DEFENSE LLC. T6A GBTS ATD AUP NRE
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $32.4 million.
What is the period of performance?
Start: 2007-05-07. End: 2016-10-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding the value proposition. Without competition, the government relies heavily on the contractor's proposed pricing and the agency's negotiation skills. A thorough review would examine the specific circumstances that precluded competition, such as unique capabilities or urgent needs, and assess whether these truly prevented a competitive process.
How does the cost-plus-fixed-fee structure impact the overall cost-effectiveness of this long-term aircraft manufacturing contract?
Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, as a portion of their profit is tied to the total cost. For a long-term contract like this, without competitive pressure, there's a risk of cost overruns and reduced efficiency. Robust oversight and clear performance metrics are essential to mitigate these risks and ensure value for taxpayer money.
What is the long-term strategic value of this sole-source contract for the Department of Defense's aircraft manufacturing capabilities?
The strategic value hinges on Textron Aviation Defense LLC's unique capabilities and the criticality of the specific aircraft or services provided. If this contract supports a niche capability or a platform with limited alternatives, its sole-source nature might be strategically justified. However, continuous assessment is needed to ensure this remains the most effective approach for national security.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Textron Inc (UEI: 001338979)
Address: 201 S GREENWICH, WICHITA, KS, 67207
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,354,903
Exercised Options: $32,354,903
Current Obligation: $32,354,903
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861707D6151
IDV Type: IDC
Timeline
Start Date: 2007-05-07
Current End Date: 2016-10-31
Potential End Date: 2016-10-31 00:00:00
Last Modified: 2018-10-17
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