DoD awards $740M for aircrew training devices to Textron Aviation Defense LLC, a sole-source contract

Contract Overview

Contract Amount: $740,518,868 ($740.5M)

Contractor: Textron Aviation Defense LLC

Awarding Agency: Department of Defense

Start Date: 2008-02-26

End Date: 2012-09-30

Contract Duration: 1,678 days

Daily Burn Rate: $441.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: T-6A LOT 15 AF & NAVY AIRCREW TRAINING DEVICES (ATDS), GRND BASED TNG SYS PROG &SUBCONTRACT MGT, & USN SIMULATOR SERVER

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67207

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $740.5 million to TEXTRON AVIATION DEFENSE LLC for work described as: T-6A LOT 15 AF & NAVY AIRCREW TRAINING DEVICES (ATDS), GRND BASED TNG SYS PROG &SUBCONTRACT MGT, & USN SIMULATOR SERVER Key points: 1. Contract awarded for aircrew training devices, ground-based training systems, and simulator support. 2. Sole-source award indicates limited competition, potentially impacting price discovery. 3. Contract duration spans over 4 years, suggesting a significant training requirement. 4. Focus on aircraft manufacturing sector highlights specialized defense needs. 5. Delivery order type suggests a specific, defined need within a larger framework. 6. No small business set-aside noted, raising questions about broader economic impact.

Value Assessment

Rating: fair

Benchmarking the value for this sole-source contract is challenging due to the lack of comparable bids. The total award amount of $740.5 million over approximately 4 years suggests a substantial investment in training capabilities. Without competitive pricing data, it's difficult to definitively assess if this represents excellent value for money. However, the duration and scope indicate a critical need for these specialized training systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Textron Aviation Defense LLC, was considered. This typically occurs when a specific capability is required that only one contractor can provide, or in situations where competition is deemed impractical or not in the government's best interest. The lack of multiple bidders limits the government's ability to leverage competitive pressures to achieve the lowest possible price.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. The absence of competition means the government accepted the price proposed by the sole-source provider without an alternative to compare against.

Public Impact

US Air Force and Navy aircrews will benefit from advanced training devices. Services include ground-based training systems and simulator support, enhancing pilot proficiency. The contract supports specialized aircraft manufacturing capabilities within the defense industrial base. Workforce implications may include specialized engineering, manufacturing, and technical support roles at Textron Aviation Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of small business participation may reduce opportunities for smaller firms in the supply chain.
Long contract duration could tie the government to a specific technology or vendor for an extended period.

Positive Signals

Ensures availability of critical aircrew training devices for essential military operations.
Supports a key defense contractor, maintaining specialized manufacturing and technical expertise.
Addresses specific training needs for advanced aircraft, crucial for national security.

Sector Analysis

The aircraft manufacturing sector, particularly within defense, is characterized by high barriers to entry, specialized technology, and significant R&D investment. Contracts like this, often awarded to established prime contractors, are crucial for maintaining the capabilities of the US defense industrial base. Comparable spending benchmarks are difficult to establish for sole-source, highly specialized training systems, but the scale of this award reflects the significant investment required for advanced military aviation training.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Textron Aviation Defense LLC, will likely handle the majority of the work. Consequently, the direct impact on the small business ecosystem may be limited unless Textron actively engages small businesses as subcontractors, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management structures, potentially involving the Defense Contract Management Agency (DCMA). Accountability measures would be defined by the contract terms, including performance standards and delivery schedules. Transparency is generally limited for sole-source awards, but contract modifications and performance reports are usually maintained within agency systems. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircrew Training Systems
Simulator Development
Aircraft Manufacturing
Defense Training Programs
Sole-Source Defense Contracts

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of competition could reduce incentive for innovation.
Potential for vendor lock-in.
Limited transparency inherent in sole-source procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $740.5 million to TEXTRON AVIATION DEFENSE LLC. T-6A LOT 15 AF & NAVY AIRCREW TRAINING DEVICES (ATDS), GRND BASED TNG SYS PROG &SUBCONTRACT MGT, & USN SIMULATOR SERVER

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 $740.5 million.

What is the period of performance?

Start: 2008-02-26. End: 2012-09-30.

What is Textron Aviation Defense LLC's track record with similar sole-source training system contracts?

Textron Aviation Defense LLC, a subsidiary of Textron Inc., has a history of providing aviation services and products to the U.S. military. While specific details on their track record with sole-source training system contracts of this magnitude are not publicly detailed in this data snippet, the company is known for its work in aircraft manufacturing and modification. Their experience likely includes developing and integrating complex systems. However, without access to past performance evaluations or specific contract histories for similar sole-source awards, a comprehensive assessment of their track record in this precise context remains limited. Further investigation into their contract history with the DoD would be necessary to fully evaluate their performance on comparable sole-source procurements.

How does the pricing of this contract compare to market rates for similar training systems?

Direct comparison of pricing for this contract to market rates is challenging because it was awarded on a sole-source basis. Sole-source procurements bypass the competitive bidding process, which typically drives prices down. Therefore, there isn't a readily available set of bids from other vendors to benchmark against. To assess value, one would need to compare the cost of these specific training devices and systems to industry standards for similar, albeit potentially less specialized, systems. This would involve analyzing the cost of components, development hours, and integration services. Without this detailed breakdown and external market data, it's difficult to definitively state if the $740.5 million award represents competitive market pricing.

What are the primary risks associated with a sole-source award of this size?

The primary risks associated with a sole-source award of this magnitude include potential overpricing due to the lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of flexibility if the government's needs change or a better technological solution emerges. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider. Furthermore, sole-source awards can face public scrutiny regarding fairness and the justification for not seeking competitive bids. Ensuring robust contract oversight and clear performance metrics becomes even more critical to mitigate these risks and ensure the government receives adequate value.

How effective are ground-based training systems and simulator servers in improving aircrew performance?

Ground-based training systems (GBTS) and simulator servers are highly effective tools for improving aircrew performance. They allow pilots and crew to practice complex maneuvers, emergency procedures, and mission scenarios in a safe, controlled environment without the risks and costs associated with actual flight. Simulators provide realistic feedback and can be programmed to replicate a wide range of conditions and challenges. This repeated, risk-free practice enhances muscle memory, decision-making skills, and overall mission readiness. The integration of advanced simulator servers ensures the fidelity and responsiveness of these systems, making them a critical component of modern military aviation training programs.

What has been the historical spending trend for aircrew training devices within the Department of Defense?

Historical spending on aircrew training devices within the Department of Defense has generally been substantial and consistent, reflecting the ongoing need to maintain a highly skilled aviation force. While the specific figure of $740.5 million for this contract is significant, it represents a portion of the overall defense training budget. Over the years, the DoD has invested heavily in upgrading training technologies, moving from basic simulators to highly sophisticated virtual and augmented reality systems. Spending fluctuates based on new aircraft procurements, modernization programs, and evolving threat landscapes. Analyzing broader DoD spending categories related to training and simulation would reveal a consistent, multi-billion dollar annual investment in maintaining aircrew proficiency across various branches.

What is the strategic importance of this contract for Textron Aviation Defense LLC?

This contract represents a significant strategic win for Textron Aviation Defense LLC, solidifying its role as a key provider of advanced training solutions for the U.S. military. A sole-source award of this magnitude provides a substantial revenue stream and enhances the company's expertise and reputation in the defense training sector. It allows Textron to leverage its existing capabilities in aircraft manufacturing and systems integration to deliver critical capabilities. Furthermore, securing such a large, long-term contract can provide stability and enable further investment in research and development, potentially positioning Textron for future opportunities in military training and simulation technologies.

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: TIME AND MATERIALS (Y)

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: $740,604,650

Exercised Options: $740,604,650

Current Obligation: $740,518,868

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA861707D6151

IDV Type: IDC

Timeline