DoD awards $19.8M T-6 sustainment contract to Textron Aviation Defense LLC
Contract Overview
Contract Amount: $19,813,358 ($19.8M)
Contractor: Textron Aviation Defense LLC
Awarding Agency: Department of Defense
Start Date: 2023-04-13
End Date: 2024-06-25
Contract Duration: 439 days
Daily Burn Rate: $45.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
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 $19.8 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. Contract awarded to Textron Aviation Defense LLC for T-6 sustainment and program management. 2. The total value of the contract is $19,813,358.23. 3. The contract was not competed, raising potential concerns about price discovery. 4. This spending falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. 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 awarded on a sole-source basis, meaning there was no competition. This limits the government's ability to ensure the best possible price and value through market forces.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services compared to a competitively bid contract.
Public Impact
Ensures continued operational readiness of the T-6 training aircraft fleet. Supports critical program management functions for the T-6 program. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can incentivize higher spending.
- Lack of detailed cost data makes value assessment difficult.
Positive Signals
- Ensures critical sustainment for training aircraft.
- Supports program management functions.
Sector Analysis
This contract is within the aerospace and defense sector, specifically focusing on sustainment and program management for trainer aircraft. Spending benchmarks for similar sole-source sustainment contracts can vary widely based on aircraft type and service scope.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Future opportunities for small business participation in sustainment or related services should be explored.
Oversight & Accountability
The Department of the Air Force is responsible for oversight of this contract. Robust oversight is crucial for cost control and performance management, especially given the sole-source and cost-plus nature of the award.
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 price competition.
- Cost-plus contract type may lead to cost overruns.
- Lack of transparency in cost breakdown.
- Potential for reduced contractor incentive to control costs.
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 $19.8 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 $19.8 million.
What is the period of performance?
Start: 2023-04-13. End: 2024-06-25.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or the unavailability of other sources. Without specific details, it's difficult to assess if alternative competitive strategies were thoroughly explored. A thorough review would examine if market research was conducted to identify potential competitors and if any barriers prevented a competitive process.
How is the 'fixed fee' component of the Cost Plus Fixed Fee contract determined, and what mechanisms are in place to control costs?
The fixed fee in a CPFF contract is negotiated at the outset and represents the contractor's profit. It is intended to remain constant regardless of the actual costs incurred. However, the 'cost plus' portion means the government reimburses all allowable costs. Effective cost control relies on stringent oversight, clear performance metrics, and robust auditing of incurred costs.
What are the long-term implications of sole-source sustainment contracts on the overall cost-effectiveness of the T-6 program?
Long-term sole-source sustainment contracts can lead to escalating costs over time as competition is absent, potentially reducing the government's bargaining power. This can impact the overall affordability of operating the T-6 fleet. Exploring options for future competition, even for specific components or services, could mitigate these long-term cost increases and improve program value.
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: $33,510,827
Exercised Options: $33,510,827
Current Obligation: $19,813,358
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $3,162,386
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: 2023-04-13
Current End Date: 2024-06-25
Potential End Date: 2024-06-25 00:00:00
Last Modified: 2025-07-01
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