FAA awards $282.6M for Beechcraft aircraft, with Textron Aviation as sole source

Contract Overview

Contract Amount: $133,891,094 ($133.9M)

Contractor: Textron Aviation Inc

Awarding Agency: Department of Transportation

Start Date: 2023-09-25

End Date: 2031-09-20

Contract Duration: 2,917 days

Daily Burn Rate: $45.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 18 BEECHCRAFT AIRCRAFT FOR FLIGHT PROGRAM OPERATIONS (AJF) THE TOTAL ESTIMATED POTENTIAL VALUE (TEPV) IS ESTABLISHED AT AN AMOUNT OF $282.6M. FUNDING WILL BE OBLIGATED UPON THE EXECUTION OF TASK ORDERS (TOS)

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67215

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $133.9 million to TEXTRON AVIATION INC for work described as: 18 BEECHCRAFT AIRCRAFT FOR FLIGHT PROGRAM OPERATIONS (AJF) THE TOTAL ESTIMATED POTENTIAL VALUE (TEPV) IS ESTABLISHED AT AN AMOUNT OF $282.6M. FUNDING WILL BE OBLIGATED UPON THE EXECUTION OF TASK ORDERS (TOS) Key points: 1. The contract's Total Estimated Potential Value (TEPV) is $282.6 million. 2. Textron Aviation Inc. is the sole awardee, raising competition concerns. 3. The contract spans nearly 8 years, impacting long-term budget planning. 4. This award falls under the Aircraft Manufacturing sector.

Value Assessment

Rating: questionable

The TEPV of $282.6M for 18 aircraft suggests a per-unit cost of approximately $15.7M. Benchmarking against similar government aircraft procurements would be necessary to assess value, but the sole-source nature limits direct comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Textron Aviation Inc. The lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these aircraft, as there was no market pressure to drive down prices.

Public Impact

Ensures continued flight program operations for the Federal Aviation Administration. Supports the maintenance and operation of critical aviation infrastructure. Potential for increased costs due to sole-source award impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Supports critical FAA flight operations
Long-term planning capability

Sector Analysis

This contract is within the Aircraft Manufacturing sector, specifically for specialized aircraft used in flight program operations. Benchmarks for similar government aircraft procurements are difficult to ascertain due to the sole-source nature of this award.

Small Business Impact

The data indicates this contract was awarded directly to Textron Aviation Inc. and does not mention any subcontracting opportunities for small businesses. Further investigation would be needed to determine if small businesses are involved in the supply chain.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. The long duration also necessitates ongoing monitoring of task order execution and spending.

Related Government Programs

Aircraft Manufacturing
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for inflated costs due to lack of competitive bidding.
Long contract duration (nearly 8 years) may not reflect evolving needs.
Lack of transparency regarding justification for sole-source award.
Uncertainty regarding small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $133.9 million to TEXTRON AVIATION INC. 18 BEECHCRAFT AIRCRAFT FOR FLIGHT PROGRAM OPERATIONS (AJF) THE TOTAL ESTIMATED POTENTIAL VALUE (TEPV) IS ESTABLISHED AT AN AMOUNT OF $282.6M. FUNDING WILL BE OBLIGATED UPON THE EXECUTION OF TASK ORDERS (TOS)

Who is the contractor on this award?

The obligated recipient is TEXTRON AVIATION INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $133.9 million.

What is the period of performance?

Start: 2023-09-25. End: 2031-09-20.

What justification was provided for awarding this contract on a sole-source basis, and were alternative solutions considered?

The provided data states the contract was 'NOT COMPETED'. A thorough review of the contract file would be required to ascertain the specific justification for this sole-source determination. Typically, justifications include factors like urgency, unique capabilities, or lack of viable alternatives. Without this information, it's impossible to assess if the government adequately explored competitive options or received the best possible value.

How does the per-unit cost of these Beechcraft aircraft compare to similar aircraft procured competitively by the government or commercial entities?

The Total Estimated Potential Value (TEPV) of $282.6M for 18 aircraft suggests an average potential cost of $15.7M per aircraft. Direct comparison is challenging due to the sole-source award. However, if publicly available data on similar government or commercial aircraft procurements (e.g., other FAA aircraft, similar military trainer aircraft) shows significantly lower prices, it would indicate a potential overpayment and a risk to taxpayer value.

What are the specific flight program operations these aircraft will support, and what is the criticality of these operations to the FAA's mission?

The data specifies 'Flight Program Operations (AJF)' but lacks detail on the specific nature of these operations. Understanding if these aircraft are used for critical functions like air traffic control testing, safety inspections, pilot training, or special missions would clarify their importance. The criticality directly influences the risk associated with potential disruptions or inefficiencies in their operation, impacting overall FAA effectiveness.

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

Solicitation ID: 6973GH-23-R-00025

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 1 CESSNA BLVD, WICHITA, KS, 67215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $282,625,436

Exercised Options: $133,891,094

Current Obligation: $133,891,094

Actual Outlays: $48,332,677

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH23D00122

IDV Type: IDC

Timeline