DoD's $11.1M Iraqi Screener Contract Awarded to Cessna Aircraft Company

Contract Overview

Contract Amount: $11,110,197 ($11.1M)

Contractor: Cessna Aircraft Company

Awarding Agency: Department of Defense

Start Date: 2007-08-03

End Date: 2009-02-27

Contract Duration: 574 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IRAQI SCREENER/BASIC PROGRAM

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67218

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to CESSNA AIRCRAFT COMPANY for work described as: IRAQI SCREENER/BASIC PROGRAM Key points: 1. Contract value of $11.1 million for aircraft manufacturing. 2. Awarded to Cessna Aircraft Company, a significant player in the aerospace industry. 3. Full and open competition after exclusion of sources indicates a specific procurement approach. 4. The sector is Aircraft Manufacturing, a critical component of defense capabilities.

Value Assessment

Rating: fair

The contract value of $11.1 million for aircraft manufacturing appears reasonable given the specialized nature of the equipment. Benchmarking against similar sole-source or limited-competition contracts for specialized aircraft components would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while competition was sought, specific criteria or prior exclusions limited the pool of potential bidders. This approach can sometimes lead to higher prices if the eligible pool is small.

Taxpayer Impact: The impact on taxpayers is moderate, as the limited competition may have resulted in a price slightly above what could have been achieved in a fully open market, though the specific value is hard to ascertain without more data.

Public Impact

Ensures operational readiness for the Air Force through specialized aircraft. Supports the defense industrial base by contracting with established manufacturers. Potential for cost efficiencies if the 'exclusion of sources' was justified and led to specialized expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may impact price discovery.
Contract duration and specific deliverables are not detailed.
Lack of small business participation noted.

Positive Signals

Award to an established aircraft manufacturer.
Clear contract type (Firm Fixed Price) aids budget predictability.
Specific sector focus (Aircraft Manufacturing).

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, which is a vital part of the defense industrial base. Spending in this sector is often characterized by high R&D costs, long production cycles, and significant reliance on specialized expertise and materials.

Small Business Impact

The data indicates no small business participation in this contract. This is common for large, specialized defense procurements that require extensive manufacturing capabilities and certifications typically held by larger corporations.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, implying oversight from within the Department of Defense. Further details on specific oversight mechanisms, performance reviews, and accountability measures would be needed for a comprehensive assessment.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for inflated costs due to limited competition.
Lack of transparency regarding the 'exclusion of sources' justification.
No indication of small business involvement.
Absence of detailed performance metrics makes effectiveness assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to CESSNA AIRCRAFT COMPANY. IRAQI SCREENER/BASIC PROGRAM

Who is the contractor on this award?

The obligated recipient is CESSNA AIRCRAFT COMPANY.

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 $11.1 million.

What is the period of performance?

Start: 2007-08-03. End: 2009-02-27.

What was the specific justification for excluding sources in this 'Full and Open Competition After Exclusion of Sources' procurement, and how did it impact the final price?

The justification for excluding sources typically relates to unique capabilities, proprietary technology, or specific security requirements that only a limited number of contractors can meet. Without detailed documentation, it's difficult to definitively state the price impact. However, such exclusions can reduce competitive pressure, potentially leading to higher costs compared to a truly open market scenario. The 'fair' rating reflects this uncertainty.

What are the key performance indicators (KPIs) for this contract, and how effectively were they met given the contract's duration and value?

Key performance indicators are not provided in the data. For a contract of this value and duration (over 1.5 years), KPIs would typically focus on aircraft performance, reliability, delivery timelines, and adherence to technical specifications. Assessing effectiveness would require access to performance reports, acceptance testing results, and any documented issues or deviations during the contract period.

How does the $11.1 million expenditure align with the Air Force's strategic needs for the 'Iraqi Screener/Basic Program'?

The 'Iraqi Screener/Basic Program' likely refers to intelligence, surveillance, and reconnaissance (ISR) capabilities or specialized training platforms. The $11.1 million expenditure would need to be evaluated against the strategic importance and operational necessity of these capabilities for Air Force missions, particularly in contexts like Iraq. Without specific program objectives, it's challenging to definitively assess alignment.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 5800 E PAWNEE ST, WICHITA, KS, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,610,197

Exercised Options: $13,610,197

Current Obligation: $11,110,197

Contract Characteristics

Cost or Pricing Data: NO

Timeline