DoD's $1B T-6 FY10 Production Support Contract Awarded to Textron Aviation Defense LLC
Contract Overview
Contract Amount: $1,007,175,309 ($1.0B)
Contractor: Textron Aviation Defense LLC
Awarding Agency: Department of Defense
Start Date: 2010-02-26
End Date: 2018-04-30
Contract Duration: 2,985 days
Daily Burn Rate: $337.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-6 FY10 PRODUCTION AND PROGRAM SUPPORT
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67207
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $1.01 billion to TEXTRON AVIATION DEFENSE LLC for work described as: T-6 FY10 PRODUCTION AND PROGRAM SUPPORT Key points: 1. Significant contract value of over $1 billion for aircraft production and support. 2. Sole-source award to Textron Aviation Defense LLC indicates limited competition. 3. Long contract duration of nearly 10 years raises potential for cost overruns and evolving needs. 4. The 'Aircraft Manufacturing' sector is critical for defense readiness.
Value Assessment
Rating: fair
The contract value is substantial. Without comparable contracts or detailed cost breakdowns, assessing the pricing against similar services is difficult. The firm fixed-price structure aims to control costs, but the long duration could still lead to inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude may result in taxpayers paying a premium for aircraft production and support services.
Public Impact
Ensures continued availability of T-6 aircraft for training and operational needs. Supports jobs within the aerospace manufacturing sector, particularly in Kansas. Potential for long-term reliance on a single contractor for critical aircraft support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for cost creep over time
Positive Signals
- Supports critical defense asset
- Firm fixed-price contract type
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is crucial for maintaining military readiness. Benchmarks for similar large-scale aircraft production and support contracts are highly variable based on aircraft type and scope.
Small Business Impact
The awardee, Textron Aviation Defense LLC, is a large business. There is no indication in the provided data that small businesses were significantly involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight would focus on contract performance, delivery schedules, and adherence to the firm fixed-price terms throughout its long duration.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Long contract duration increases risk of cost overruns and obsolescence.
- Potential for contractor lock-in and reduced flexibility.
- Lack of transparency on justification for sole-source award.
Tags
aircraft-manufacturing, department-of-defense, ks, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.01 billion to TEXTRON AVIATION DEFENSE LLC. T-6 FY10 PRODUCTION AND PROGRAM SUPPORT
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 $1.01 billion.
What is the period of performance?
Start: 2010-02-26. End: 2018-04-30.
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 typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. Without further documentation, it's unclear if alternative competitive strategies were explored or deemed infeasible. This lack of competition is a key factor in assessing the overall value and potential cost efficiency of the contract.
How has the long duration of this contract (nearly 10 years) impacted the cost-effectiveness and adaptability of the T-6 production and support?
A contract spanning nearly a decade presents risks of cost escalation due to inflation, evolving technological requirements, and potential inefficiencies. While a firm fixed-price structure aims to mitigate this, the extended timeline may have led to higher initial pricing to account for long-term uncertainties. Adaptability to new technologies or mission needs could also be constrained.
What is the benchmark cost per unit for T-6 aircraft production and support, and how does this contract's pricing compare?
Determining a precise benchmark cost per unit for T-6 production and support is challenging without access to detailed cost data and market analysis specific to this period and contract scope. The firm fixed-price nature suggests an agreed-upon rate, but its competitiveness relative to industry standards or previous contracts would require in-depth analysis of Textron's cost structure and market conditions.
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: Textron Inc
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: $1,010,447,005
Exercised Options: $1,010,447,005
Current Obligation: $1,007,175,309
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA861707D6151
IDV Type: IDC
Timeline
Start Date: 2010-02-26
Current End Date: 2018-04-30
Potential End Date: 2018-04-30 00:00:00
Last Modified: 2022-07-04
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