Textron Aviation Defense LLC awarded $21M for T-6 sustaining engineering and program management

Contract Overview

Contract Amount: $20,996,117 ($21.0M)

Contractor: Textron Aviation Defense LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-13

End Date: 2022-04-12

Contract Duration: 364 days

Daily Burn Rate: $57.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: T-6 SUSTAINING ENGINEERING AND PROGRAM MANAGEMENT SERVICES FOR THE T-6.

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67207

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to TEXTRON AVIATION DEFENSE LLC for work described as: T-6 SUSTAINING ENGINEERING AND PROGRAM MANAGEMENT SERVICES FOR THE T-6. Key points: 1. Contract focuses on essential engineering and program management for the T-6 aircraft fleet. 2. Sole-source award indicates potential lack of market competition for these specialized services. 3. Performance period of one year suggests a need for ongoing, specialized support. 4. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, which can incentivize cost control. 5. The award is for delivery order under an existing contract, implying prior vetting of the contractor. 6. The value of this specific order is substantial, reflecting the critical nature of sustaining engineering.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar sustaining engineering contracts. The Cost Plus Fixed Fee structure can sometimes lead to higher costs if not closely managed, but it also allows for flexibility in scope. The fixed fee component provides some cost certainty for the government. However, the lack of competition raises concerns about whether the government achieved the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This typically occurs when a specific capability is only available from a single source, or in cases of urgent need where full and open competition is not feasible. The lack of competition means there was no opportunity for other qualified companies to bid, potentially limiting price discovery and innovation.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are the Department of the Air Force and its T-6 aircraft fleet, ensuring operational readiness. Services delivered include critical engineering support and program management essential for aircraft maintenance and upgrades. The geographic impact is primarily within the United States, supporting Air Force bases where T-6 aircraft are operated and maintained. Workforce implications include the need for specialized engineers and program managers, likely retained by Textron Aviation Defense LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of competition may stifle innovation and prevent other capable firms from participating.
Cost Plus Fixed Fee contracts require diligent oversight to ensure cost efficiency.

Positive Signals

Award to an incumbent contractor likely ensures continuity of essential services for the T-6 program.
Sustaining engineering and program management are critical for maintaining aircraft readiness.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technical expertise, and significant government investment. Sustaining engineering and program management are crucial functions within this sector, ensuring the longevity and operational effectiveness of complex military platforms like the T-6 trainer aircraft. Spending in this area is often driven by the need to maintain aging fleets and adapt to evolving technological requirements. Comparable spending benchmarks would typically involve other aircraft sustainment contracts, which can vary widely based on aircraft type, age, and complexity.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. As a sole-source award to a large defense contractor, it is unlikely to directly benefit small businesses through prime contract awards. However, Textron Aviation Defense LLC may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Air Force's contracting and program management offices. As a delivery order under an existing contract, the initial vetting and oversight mechanisms were likely established previously. Accountability measures would include performance reviews, adherence to contract terms, and financial reporting. Transparency is facilitated through contract databases, though the specifics of sole-source justifications may have limited public detail.

Related Government Programs

T-6 Texan II Aircraft Program
Air Force Training Aircraft Sustainment
Aerospace Engineering Services
Defense Program Management

Risk Flags

Sole-source award
Lack of competition
Cost Plus Fixed Fee contract type requires diligent oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to TEXTRON AVIATION DEFENSE LLC. T-6 SUSTAINING ENGINEERING AND PROGRAM MANAGEMENT SERVICES FOR THE T-6.

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2021-04-13. End: 2022-04-12.

What is the historical spending trend for T-6 sustaining engineering and program management services?

Analyzing historical spending for T-6 sustaining engineering and program management requires access to detailed contract databases beyond the scope of this single award. However, the nature of sustaining engineering suggests a consistent, ongoing need for these services throughout the aircraft's lifecycle. Factors influencing spending trends would include the size of the T-6 fleet, operational tempo, planned upgrades or modifications, and the contractor's pricing structure over time. Without prior contract data, it's difficult to establish a specific trend, but the necessity of maintaining training aircraft implies a baseline level of sustained expenditure.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar services?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility. Compared to Firm-Fixed-Price (FFP) contracts, CPFF generally carries more cost risk for the government, as final costs are not capped. However, it can be advantageous when innovation or adaptation is required. Other arrangements like Cost Plus Incentive Fee (CPIF) tie the fee to performance metrics, encouraging efficiency. For sustaining engineering, CPFF can be suitable if unforeseen technical challenges arise, but requires robust government oversight to manage costs effectively.

What are the potential risks associated with a sole-source award for critical aircraft sustainment?

The primary risk of a sole-source award for critical aircraft sustainment is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, the government may pay more than necessary. Another risk is reduced incentive for the sole provider to innovate or improve efficiency, as they face no direct competition. Furthermore, reliance on a single source can create vulnerability if that contractor experiences financial difficulties, operational issues, or decides to exit the market. This can jeopardize the continuity of essential support for the T-6 fleet, impacting readiness.

What is Textron Aviation Defense LLC's track record with the T-6 program and similar contracts?

Textron Aviation Defense LLC, through its legacy entities, has a long-standing relationship with the T-6 program, as they are the original manufacturer of the T-6 Texan II trainer aircraft. This deep historical involvement suggests a strong understanding of the aircraft's systems, maintenance requirements, and operational context. Their track record likely includes extensive experience in manufacturing, modification, and potentially sustainment activities for the T-6. Awards for sustaining engineering and program management are consistent with their role as the OEM (Original Equipment Manufacturer), indicating a continuity of support built on prior performance and expertise.

Are there alternative solutions or contractors that could provide similar T-6 sustaining engineering services?

Identifying alternative solutions or contractors for T-6 sustaining engineering is challenging due to Textron Aviation Defense LLC's position as the Original Equipment Manufacturer (OEM). OEMs typically possess unique technical data, proprietary knowledge, and specialized tooling essential for deep sustainment and complex engineering modifications. While other aerospace companies might offer general engineering or maintenance services, they would likely lack the specific, in-depth knowledge and access to technical data held by Textron for the T-6. Therefore, for highly specialized sustaining engineering directly related to the T-6 design, competition might be genuinely limited, justifying a sole-source approach, although this should be periodically reassessed.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

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: $20,996,117

Exercised Options: $20,996,117

Current Obligation: $20,996,117

Actual Outlays: $30,080

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $4,466,224

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810621D0001

IDV Type: IDC

Timeline