DoD awards $55.6M T-6A OVER AND ABOVE contract to Textron Aviation Defense LLC without competition
Contract Overview
Contract Amount: $55,649,477 ($55.6M)
Contractor: Textron Aviation Defense LLC
Awarding Agency: Department of Defense
Start Date: 2008-02-26
End Date: 2014-09-30
Contract Duration: 2,408 days
Daily Burn Rate: $23.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: T-6A OVER AND ABOVE
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67207
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $55.6 million to TEXTRON AVIATION DEFENSE LLC for work described as: T-6A OVER AND ABOVE Key points: 1. Significant contract value of $55.6 million awarded. 2. Sole-source award to Textron Aviation Defense LLC indicates limited competition. 3. Contract duration of 2408 days (over 6 years) suggests long-term reliance. 4. Aircraft Manufacturing sector spending is substantial within the Defense budget.
Value Assessment
Rating: questionable
The contract type is Time and Materials, which can lead to cost overruns if not closely managed. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar aircraft modifications or support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on a $55.6 million contract raises concerns about the efficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long contract duration could lock the government into a potentially suboptimal pricing structure. Lack of transparency in the procurement process can erode public trust. Potential for cost overruns due to the Time and Materials contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials contract type
- Long contract duration
- Lack of competition
Positive Signals
- Specific aircraft program support
- Established relationship with contractor
Sector Analysis
The Defense sector frequently awards large contracts for aircraft manufacturing and support. Spending benchmarks in this area are typically high, but competitive sourcing is crucial for cost efficiency.
Small Business Impact
This contract was awarded to Textron Aviation Defense LLC, a large business. There is no indication of small business participation in this specific award, which is common for sole-source, high-value defense contracts.
Oversight & Accountability
The lack of competition and the Time and Materials contract type warrant close oversight to ensure cost control and prevent potential waste, fraud, and abuse.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for inflated costs due to sole-source award.
- Risk of cost overruns with Time and Materials contract.
- Lack of competitive pressure may reduce contractor efficiency.
- Limited transparency in procurement process.
- No small business participation noted.
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 $55.6 million to TEXTRON AVIATION DEFENSE LLC. T-6A OVER AND ABOVE
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 $55.6 million.
What is the period of performance?
Start: 2008-02-26. End: 2014-09-30.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without further documentation, it's impossible to confirm the specific rationale, but it's a critical factor in assessing the procurement's legitimacy and value.
How does the Time and Materials contract structure mitigate risks of cost overruns for the government?
Time and Materials contracts inherently carry a higher risk of cost overruns as the government pays for labor hours and material costs incurred by the contractor. Mitigation relies heavily on robust oversight, detailed cost tracking, and defined ceiling prices to prevent excessive spending. Without strong controls, this contract type can be less cost-effective than fixed-price alternatives.
What is the long-term strategic value of this sole-source award for the T-6A program?
The long-term strategic value hinges on Textron Aviation Defense LLC's unique ability to maintain and support the T-6A aircraft, potentially ensuring operational readiness. However, the lack of competition raises questions about whether alternative solutions or contractors could provide similar strategic value at a lower cost, impacting overall program efficiency and budget allocation.
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: $65,589,477
Exercised Options: $65,589,477
Current Obligation: $55,649,477
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: 2008-02-26
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2019-09-20
More Contracts from Textron Aviation Defense LLC
- 200211!000030!5700!GU47 !asc/Ytk !F3365701C0022 !A!N! !N! !20011228!20090228!007482011!788153588!001339159!n!raytheon Aircraft Company !10511 E Central AVE !wichita !ks!67206!79000!173!20!wichita !sedgwick !kansas !+000193250689!n!n!000000000000!1510!aircraft Fixed Wing !a1a!airframes and Spares !3000!NOT Discernable or Classified !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !c!n!j!1!001!n!1g!z!n!e! ! !Y!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $1.4B (Department of Defense)
- T-6 FY10 Production and Program Support — $1.0B (Department of Defense)
- T-6A LOT 15 AF & Navy Aircrew Training Devices (atds), Grnd Based TNG SYS Prog &subcontract MGT, & USN Simulator Server — $740.5M (Department of Defense)
- T6A UCA for LOT 14 Long-Lead — $375.0M (Department of Defense)
- Federal Contract — $338.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)