DoD's $13.8M contract for aviation and missile command services awarded to Bell Aerospace Services Inc

Contract Overview

Contract Amount: $13,790,667 ($13.8M)

Contractor: Bell Aerospace Services Inc.

Awarding Agency: Department of Defense

Start Date: 2002-12-20

End Date: 2007-12-31

Contract Duration: 1,837 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200303!001351!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0060 !A!N! !Y! !20021220!20031231!019976948!019976948!001338979!N!BELL AEROSPACE SERVICES, INC !1305 AIRPORT FREEWAY !BEDFORD !TX!76021!07132!439!48!BEDFORD !TARRANT !TEXAS !+000001134974!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !1AHC!OH-58 KIOWA (AHIP) !561990!E! !1! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!N!1G!A!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to BELL AEROSPACE SERVICES INC. for work described as: 200303!001351!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0060 !A!N! !Y! !20021220!20031231!019976948!019976948!001338979!N!BELL AEROSPACE SERVICES, INC !1305 AIRPORT FREEWAY !BEDFORD !TX!76021!07132!439!48!BEDFORD !TARRA… Key points: 1. Contract awarded for aviation and missile command services, indicating a focus on defense readiness and technological advancement. 2. The contract duration of over 5 years suggests a long-term need for the services provided. 3. Awarded to Bell Aerospace Services, Inc., a known entity in the aerospace and defense sector. 4. The contract falls under Research, Development, Test, and Evaluation (RDTE) for services, highlighting investment in innovation. 5. The specific product service code (PSC) and North American Industry Classification System (NAICS) code point to specialized support services. 6. The contract's value of approximately $13.8 million represents a significant investment in this specific area of defense support.

Value Assessment

Rating: fair

The contract value of $13.8 million for a duration of over 5 years averages to approximately $2.76 million per year. Benchmarking this against similar contracts for specialized aviation and missile command services is challenging without more specific service details. However, the total value appears moderate for a defense contract of this length, suggesting a potentially fair price for the services rendered, though a detailed cost analysis would be needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded. This suggests a limited competitive environment, potentially due to specific technical requirements or existing relationships. The number of bids received is not explicitly stated, but the award type indicates that not all potential offerors were considered, which could impact price discovery.

Taxpayer Impact: A limited competition may result in higher costs for taxpayers compared to full and open competition, as the pool of potential bidders is restricted.

Public Impact

The primary beneficiaries are the U.S. Army Aviation and Missile Command, which receives essential support services. Services delivered likely include research, development, testing, and evaluation related to aviation and missile systems. The geographic impact is primarily within the United States, supporting defense operations and technological advancement. Workforce implications include employment opportunities for skilled personnel in the aerospace and defense industry, particularly in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Exclusion of sources may limit access to innovative solutions.
Lack of detailed service description makes value assessment difficult.

Positive Signals

Award to an established contractor like Bell Aerospace Services, Inc. suggests reliability.
Contract duration indicates a stable, long-term need being met.
Focus on RDTE signals investment in future defense capabilities.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation and missile systems. The market for defense-related services is substantial, driven by government procurement. Bell Aerospace Services, Inc. operates within this competitive landscape. Comparable spending benchmarks would typically involve analyzing other RDTE contracts for similar defense platforms or support services, which are often in the multi-million dollar range.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Bell Aerospace Services, Inc., would determine any subcontracting opportunities based on their own business needs and procurement strategies.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, though detailed service breakdowns may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Aviation Programs
Missile Defense Systems
Aerospace Research and Development
Defense Support Services
RDTE Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns
Scope Creep Risk
Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to BELL AEROSPACE SERVICES INC.. 200303!001351!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0060 !A!N! !Y! !20021220!20031231!019976948!019976948!001338979!N!BELL AEROSPACE SERVICES, INC !1305 AIRPORT FREEWAY !BEDFORD !TX!76021!07132!439!48!BEDFORD !TARRANT !TEXAS !+000001134974!N!N!000000000000!AD21!RDTE/SERVICES-BASIC RESEARCH !S1 !SERVICES !1AHC!OH-58 KIOWA (AHIP) !561990!E! !1! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is BELL AEROSPACE SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2002-12-20. End: 2007-12-31.

What specific services does Bell Aerospace Services, Inc. provide under this contract?

The provided data indicates the contract is for 'RDTE/SERVICES-BASIC RESEARCH' and falls under NAICS code '561990 - All Other Support Services'. While the specific product service code (PSC) is 'AD21', the exact nature of the services is not detailed. However, given the agency (USA AVIATION AND MISSILE COMMAND) and the contractor's specialization, it likely involves research, development, testing, and evaluation support for aviation and missile systems. This could encompass areas like systems analysis, technical support, engineering services, or specialized testing related to platforms like the OH-58 Kiowa (AHIP).

How does the contract value of $13.8 million compare to similar contracts for aviation and missile command services?

Direct comparison is difficult without more granular data on the specific services rendered. However, $13.8 million over a period of approximately 5 years (December 2002 to December 2007) represents an average annual value of roughly $2.76 million. This is a moderate sum for a defense contract, especially one involving RDTE. Larger, more complex system development contracts can easily reach hundreds of millions or billions. Smaller, more routine support contracts might be in the low millions. This contract appears to be in the mid-range for specialized support services within the aviation and missile domain.

What are the key risks associated with this contract?

Key risks include potential cost overruns if the scope of research and development proves more complex than initially estimated. Performance risk exists if the contractor fails to deliver the required technical outcomes or support. There's also a risk related to the limited competition, which could mean less favorable pricing or a missed opportunity to engage with potentially more innovative or cost-effective providers. Furthermore, technological obsolescence is a risk in RDTE, where developed solutions might become outdated before full implementation.

What is the track record of Bell Aerospace Services, Inc. with the Department of Defense?

Bell Aerospace Services, Inc. (now part of Textron) has a long history of contracting with the Department of Defense. While this specific contract ID (DAAH2303C0060) represents one engagement, the company has been a significant player in the aerospace and defense industry for decades, involved in the development and support of various aircraft and defense systems. Their track record generally includes numerous contracts across different branches of the military, indicating a substantial level of experience and established relationships within the DoD.

How does the contract's duration (over 5 years) impact its value and risk?

The extended duration of over five years (1837 days) suggests a stable, long-term requirement for the services provided by Bell Aerospace Services, Inc. This stability can be beneficial for both the government and the contractor, allowing for better planning and resource allocation. For the government, it ensures continuity of essential support. For the contractor, it provides predictable revenue. However, a longer duration also increases the risk of cost escalation due to inflation or unforeseen project changes, and the risk that the technology or requirements may evolve significantly over the contract period, potentially requiring costly modifications.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' classification imply for taxpayer value?

This classification suggests that while the contract was intended to be competed, certain potential sources were deliberately excluded. This exclusion could be based on specific technical capabilities, security requirements, or proprietary information. While it's not a sole-source award, the reduced pool of competitors might limit the downward pressure on pricing that typically occurs in true full and open competition. Therefore, taxpayers might not be receiving the absolute lowest possible price, as the competitive landscape was intentionally narrowed, potentially leading to a less optimal value proposition compared to a scenario with maximum bidder participation.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 1305 AIRPORT FREEWAY, BEDFORD, TX, 76021

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline