DoD awards Textron Aviation $23.4M for T-6 aircraft sustainment and program management

Contract Overview

Contract Amount: $23,413,659 ($23.4M)

Contractor: Textron Aviation Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-04-13

End Date: 2026-04-12

Contract Duration: 364 days

Daily Burn Rate: $64.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SUSTAINMENT ENGINEERING AND PROGRAM MANAGEMENT FOR T-6

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67207

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to TEXTRON AVIATION DEFENSE LLC for work described as: SUSTAINMENT ENGINEERING AND PROGRAM MANAGEMENT FOR T-6 Key points: 1. Contract focuses on sustainment and program management for the T-6 aircraft fleet. 2. Awarded to Textron Aviation Defense LLC, a significant player in aerospace manufacturing. 3. The contract duration is one year, indicating a need for ongoing support. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The geographic location of performance is Kansas, a hub for aviation manufacturing and support. 6. This award represents a portion of broader Department of Defense aircraft sustainment spending.

Value Assessment

Rating: fair

The contract value of $23.4 million for a one-year period for sustainment and program management appears to be within a reasonable range for specialized aerospace support. However, without specific details on the scope of work, it is difficult to benchmark against similar contracts. The Cost Plus Fixed Fee (CPFF) contract type introduces potential for costs to exceed initial estimates, necessitating close oversight to ensure value for money. Benchmarking per-unit costs for sustainment activities would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition raises concerns about whether the government received the best possible pricing and terms, as there was no market pressure to drive down costs.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government contracts and can potentially result in higher costs for taxpayers due to the absence of competitive pricing.

Public Impact

The U.S. Air Force benefits from continued sustainment and program management for its T-6 aircraft fleet. This contract ensures the operational readiness and longevity of a critical training aircraft. The services will be performed in Kansas, supporting the local aerospace industry and workforce. Textron Aviation Defense LLC, the contractor, will leverage its expertise in aircraft sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost Plus Fixed Fee contract type carries inherent risks of cost escalation if not rigorously managed.
Lack of detailed performance metrics in the provided data makes it difficult to assess efficiency.
Dependence on a single contractor for critical sustainment functions could pose a long-term risk.

Positive Signals

Award ensures continued operational readiness of the T-6 training aircraft.
Textron Aviation Defense LLC is an established provider with relevant expertise.
Contract performance in Kansas supports a key aerospace manufacturing region.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and long product lifecycles. Sustainment and program management contracts are crucial for maintaining the operational readiness of military fleets. Spending in this area is substantial, with the Department of Defense allocating billions annually to aircraft maintenance, repair, and overhaul. This contract for the T-6 aircraft fits within the broader category of "Other Aircraft Parts and Auxiliary Equipment Manufacturing" (NAICS 336413), reflecting the specialized nature of the support provided.

Small Business Impact

This contract was not awarded to a small business, nor does the provided data indicate any specific small business subcontracting requirements. As a sole-source award to a large defense contractor, it is unlikely to directly benefit the small business ecosystem through set-asides. However, Textron Aviation may engage small businesses as subcontractors for specific components or services, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force, specifically the contracting officer and program management office responsible for the T-6 aircraft. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to monitor expenditures and ensure the fixed fee is justified by the work performed. Transparency regarding the specific scope of work and performance metrics would enhance accountability. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

T-6 Texan II Aircraft Program
DoD Aircraft Maintenance and Repair Contracts
Aerospace Sustainment Services
Defense Contractor Program Management

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to TEXTRON AVIATION DEFENSE LLC. SUSTAINMENT ENGINEERING AND PROGRAM MANAGEMENT FOR 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 $23.4 million.

What is the period of performance?

Start: 2025-04-13. End: 2026-04-12.

What is Textron Aviation Defense LLC's track record with similar DoD sustainment contracts?

Textron Aviation Defense LLC, a subsidiary of Textron Inc., has a long history of providing aircraft manufacturing, modification, and sustainment services to the U.S. military and international customers. They are known for their work on various trainer and special mission aircraft. While specific details on past T-6 sustainment contracts are not provided here, their extensive experience in the aerospace sector suggests a capability to manage complex sustainment programs. A deeper dive into their contract history with the Air Force and other branches would reveal their performance trends, on-time delivery rates, and cost control effectiveness on comparable agreements. Reviewing past performance evaluations and any documented disputes or contract modifications would offer further insight into their reliability and value proposition.

How does the $23.4 million value compare to historical spending on T-6 sustainment?

The provided data indicates an award of $23.4 million for a 364-day period. To assess if this value is comparable to historical spending, one would need to examine prior contract awards for T-6 sustainment and program management. This would involve looking at the total value of previous contracts, their duration, and the scope of services provided. For instance, if previous annual sustainment costs were significantly lower or higher, it would suggest a change in market rates, scope, or inflation. Analyzing trends over several fiscal years would help determine if this current award represents an increase, decrease, or stable level of investment in T-6 sustainment. Without historical data, it's challenging to definitively benchmark this specific award's value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for aircraft sustainment?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for aircraft sustainment is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses. This can lead to the total contract value being higher than initially anticipated. Effective risk mitigation requires robust government oversight to scrutinize allowable costs, ensure efficient performance, and manage scope creep. Without stringent controls, the contractor may have less incentive to control costs compared to fixed-price contracts, potentially impacting the overall value for money.

How effective is Textron Aviation Defense LLC likely to be in managing the T-6 program based on its profile?

Textron Aviation Defense LLC's established presence and experience in the aerospace industry suggest a strong likelihood of effectiveness in managing the T-6 program. As a recognized manufacturer and sustainment provider, they possess the technical expertise, infrastructure, and understanding of military aviation requirements. Their portfolio likely includes experience with similar complex aircraft systems, enabling them to anticipate and address sustainment challenges. However, the effectiveness will ultimately depend on the specific terms of the contract, the clarity of performance expectations, and the diligence of government oversight. Factors such as supply chain management, workforce stability, and responsiveness to evolving operational needs will also play crucial roles in their performance.

What are the implications of this contract being sole-source for future competition or innovation in T-6 sustainment?

A sole-source award for T-6 sustainment implies that for this specific requirement and timeframe, the government determined Textron Aviation Defense LLC was the only viable option. This can limit opportunities for other companies to enter the market or propose innovative solutions, potentially stifling competition and innovation in the long run. If the T-6 fleet requires sustainment for many more years, relying on sole-source awards could create a dependency on a single provider, making it harder to introduce new technologies or achieve cost efficiencies through competitive bidding in the future. Future solicitations should explore options for broader competition, perhaps by breaking down sustainment into smaller, more contestable packages or by encouraging new entrants through strategic sourcing initiatives.

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: $31,041,882

Exercised Options: $31,041,882

Current Obligation: $23,413,659

Actual Outlays: $20,529

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,117,936

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