DoD awards $20.4M to Textron Aviation for T-6 sustainment, raising questions on competition
Contract Overview
Contract Amount: $20,415,960 ($20.4M)
Contractor: Textron Aviation Defense LLC
Awarding Agency: Department of Defense
Start Date: 2022-04-13
End Date: 2024-06-25
Contract Duration: 804 days
Daily Burn Rate: $25.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: T-6 SUSTAINMENT 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 $20.4 million to TEXTRON AVIATION DEFENSE LLC for work described as: T-6 SUSTAINMENT ENGINEERING AND PROGRAM MANAGEMENT SERVICES FOR THE T-6. Key points: 1. Significant contract value for specialized aircraft sustainment. 2. Sole provider Textron Aviation Defense LLC dominates. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Limited competition raises concerns about value for taxpayer money.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type can lead to higher costs if not closely managed. Benchmarking against similar sustainment contracts for trainer aircraft is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Textron Aviation Defense LLC. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these critical sustainment services.
Public Impact
Ensures continued operational readiness of the T-6 trainer fleet. Supports critical training for Air Force pilots. Potential for increased costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Limited transparency on cost drivers
Positive Signals
- Ensures critical sustainment for training aircraft
- Supports ongoing pilot training programs
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and program management. Spending benchmarks for similar sole-source sustainment contracts can vary widely based on aircraft type and complexity.
Small Business Impact
The 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 specialized sustainment services.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust monitoring to ensure costs remain reasonable and within the fixed fee parameters.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type.
- Potential for cost escalation.
- Lack of transparency in cost breakdown.
- Limited small business involvement.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ks, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to TEXTRON AVIATION DEFENSE LLC. T-6 SUSTAINMENT 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 $20.4 million.
What is the period of performance?
Start: 2022-04-13. End: 2024-06-25.
What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically relates to unique capabilities or proprietary technology held by the contractor. To ensure fair pricing, the government should conduct thorough cost analyses, market research, and potentially engage independent cost estimators. Regular audits and performance reviews are also crucial for managing costs effectively under a Cost Plus Fixed Fee arrangement.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this T-6 sustainment contract?
The Cost Plus Fixed Fee (CPFF) structure shifts some financial risk to the government. While the contractor is guaranteed their fee, the government bears the risk of cost overruns on the direct costs. This necessitates stringent oversight to monitor expenditures and ensure the contractor is operating efficiently and within the anticipated cost base to prevent excessive spending.
What is the long-term strategy for T-6 sustainment to potentially introduce more competition or explore alternative service models?
The long-term strategy should involve market research to identify potential competitors or alternative sustainment approaches. This could include breaking down services into smaller, more competitive packages, exploring public-private partnerships, or developing in-house capabilities. Proactive planning and fostering a competitive environment can lead to better value and reduced costs over the lifecycle of the T-6 program.
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: $27,721,240
Exercised Options: $27,721,240
Current Obligation: $20,415,960
Actual Outlays: $30,035
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $1,544,648
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
Start Date: 2022-04-13
Current End Date: 2024-06-25
Potential End Date: 2024-06-25 00:00:00
Last Modified: 2025-05-13
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