DoD awards $20.9M to Textron Aviation for T-6 sustainment, a sole-source contract

Contract Overview

Contract Amount: $20,910,082 ($20.9M)

Contractor: Textron Aviation Defense LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-13

End Date: 2025-09-24

Contract Duration: 529 days

Daily Burn Rate: $39.5K/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 $20.9 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 on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. Sole-source award limits price competition, potentially increasing costs for taxpayers. 3. The contract duration of 529 days suggests a need for ongoing sustainment services. 4. The award is for the T-6 aircraft, a key training platform for the Air Force. 5. The contractor, Textron Aviation Defense LLC, is a significant player in the aerospace and defense sector.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging due to the lack of competitive bids. The cost-plus-fixed-fee (CPFF) pricing structure means that actual costs are reimbursed, plus a fixed fee for profit. While this can be appropriate for R&D or uncertain scope, it carries a higher risk of cost escalation compared to fixed-price contracts. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess if the $20.9 million represents excellent value for the sustainment and program management services provided for the T-6 aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Textron Aviation Defense LLC, was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. While sole-source awards can be justified in specific circumstances, such as when only one entity possesses the required expertise or technology, it significantly reduces the opportunity for price discovery and potentially leads to higher costs.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution. Without competing bids, there is less pressure on the contractor to offer the lowest possible price for the services rendered.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel who rely on the T-6 trainer aircraft for their flight training. The contract ensures the continued operational readiness and sustainment of the T-6 fleet, crucial for pilot training. Services include engineering support, program management, and potentially maintenance or repair oversight for the aircraft. The geographic impact is primarily within the United States, supporting Air Force training bases. Workforce implications include supporting specialized engineering and program management roles within Textron Aviation Defense LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee structure can incentivize cost overruns if not rigorously overseen.
Lack of transparency in sole-source justification requires careful review.
Dependence on a single contractor for critical sustainment services poses a long-term risk.

Positive Signals

Contractor is likely experienced with the T-6 aircraft, ensuring continuity of services.
Focus on sustainment ensures readiness of a critical training platform.
Fixed fee component provides some predictability in contractor profit.
Clear end date for the current award allows for future re-evaluation of competition.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technical expertise, and significant government procurement. Contracts for aircraft sustainment and program management are critical for maintaining the operational readiness of military fleets. This $20.9 million contract for the T-6 trainer aircraft fits within the broader category of aircraft parts and auxiliary equipment manufacturing and support services. Comparable spending in this sector often involves multi-year, high-value contracts due to the complexity and lifecycle costs of military platforms.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to a large defense contractor, Textron Aviation Defense LLC, there are no direct subcontracting opportunities for small businesses mandated by this specific award. The absence of a set-aside or specific subcontracting goals means that the direct economic benefit to the small business ecosystem from this particular contract is likely minimal, unless Textron voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Air Force, likely through program management offices and contracting officers. The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency may be limited due to the sole-source nature, but contract performance metrics and financial reporting should be subject to review. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

T-6 Texan II Aircraft
Air Force Training Aircraft Programs
Aerospace Defense Sustainment Contracts
Pilot Training Services
Aircraft Parts Manufacturing

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Potential for cost overruns
Limited price competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 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 $20.9 million.

What is the period of performance?

Start: 2024-04-13. End: 2025-09-24.

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

Textron Aviation Defense LLC, a subsidiary of Textron Inc., 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 familiarity with the platform suggests a strong track record in providing sustainment and support services. Their experience likely encompasses a range of activities from engineering support and logistics to maintenance oversight. While specific performance metrics for this sole-source contract are not publicly detailed, their position as the OEM (Original Equipment Manufacturer) implies a significant level of expertise and historical involvement in keeping the T-6 fleet operational. Assessing their broader track record would involve reviewing past performance evaluations on similar government contracts, particularly those related to aircraft sustainment and program management across different defense platforms.

How does the $20.9 million cost compare to similar T-6 sustainment efforts or other trainer aircraft sustainment contracts?

Directly comparing the $20.9 million cost is challenging without access to detailed breakdowns of services rendered and the specific period of performance (approximately 1.5 years). As a sole-source contract, it bypasses competitive benchmarking. However, sustainment costs for military training aircraft can vary widely based on fleet size, age, operational tempo, and the scope of services (e.g., depot-level maintenance, component repair, engineering support, logistics). For a fleet as widely used as the T-6 for primary flight training, $20.9 million over roughly 17 months for engineering and program management services might be considered within a reasonable range, assuming it covers essential support functions. However, without competitive bids or more granular cost data, it's difficult to ascertain if it represents optimal value compared to potential market alternatives or historical spending on similar support activities.

What are the primary risks associated with this sole-source, cost-plus-fixed-fee contract?

The primary risks associated with this contract stem from its sole-source and cost-plus-fixed-fee (CPFF) nature. Sole-sourcing eliminates competitive pressure, potentially leading to higher prices than might be achieved through open competition. It also reduces the incentive for the contractor to innovate or find cost efficiencies. The CPFF structure carries inherent risks of cost escalation; the government reimburses allowable costs incurred by the contractor, plus a predetermined fixed fee representing profit. If the contractor's costs are higher than anticipated, the total contract price increases, potentially exceeding initial estimates. Effective oversight is crucial to scrutinize costs, ensure they are reasonable and allocable, and prevent scope creep that could inflate the final price. There's also a risk of contractor complacency due to the lack of competitive threat.

How effective is the T-6 aircraft program, and how does this contract contribute to its effectiveness?

The T-6 Texan II is widely regarded as an effective platform for the U.S. Air Force's and Navy's primary flight training programs. It provides a standardized, modern training environment that prepares aviators for more advanced aircraft. This contract, focused on sustainment engineering and program management, directly contributes to the T-6 program's effectiveness by ensuring the aircraft remain airworthy, operational, and supported by necessary technical expertise. Reliable sustainment minimizes downtime, allowing training pipelines to function smoothly and produce qualified pilots efficiently. By maintaining the readiness of the T-6 fleet, this contract supports the core mission of developing the next generation of military aviators, thereby underpinning the overall effectiveness of air power training.

What are the historical spending patterns for T-6 sustainment and program management?

Historical spending on T-6 sustainment and program management has been substantial, reflecting the aircraft's critical role in Air Force and Navy training pipelines over many years. As the original manufacturer, Textron Aviation Defense LLC has been a primary recipient of these funds. Spending typically occurs through various contract types, including fixed-price, cost-reimbursement, and time-and-materials, often awarded competitively but sometimes through sole-source mechanisms for specific support needs or upgrades. Annual expenditures can fluctuate based on fleet readiness requirements, modernization efforts, and the specific scope of services contracted. While precise historical figures for 'sustainment engineering and program management' alone are difficult to isolate without detailed contract histories, overall T-6 program support costs represent a significant, ongoing investment by the Department of Defense to maintain a large fleet of training aircraft.

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: $32,328,798

Exercised Options: $32,328,798

Current Obligation: $20,910,082

Actual Outlays: $92,911

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $3,500,315

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