DoD's $23.6M Aircraft Manufacturing Contract Awarded to Cessna Aircraft Company
Contract Overview
Contract Amount: $23,659,703 ($23.7M)
Contractor: Cessna Aircraft Company
Awarding Agency: Department of Defense
Start Date: 2007-11-19
End Date: 2009-03-26
Contract Duration: 493 days
Daily Burn Rate: $48.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IRAQI PRIMARY/INTERMEDIATE PROGRAM
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67218
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $23.7 million to CESSNA AIRCRAFT COMPANY for work described as: IRAQI PRIMARY/INTERMEDIATE PROGRAM Key points: 1. The contract, valued at $23.6 million, was awarded to Cessna Aircraft Company for aircraft manufacturing. 2. This was a sole-source award, indicating limited competition. 3. The contract duration was 493 days, ending in March 2009. 4. The awarding agency was the Department of the Air Force.
Value Assessment
Rating: fair
The contract value of $23.6 million for aircraft manufacturing is difficult to benchmark without specific aircraft details. However, given the duration and the nature of aircraft manufacturing, the price appears within a reasonable range for a specialized, non-competed contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, which limits price discovery and potentially leads to higher costs for taxpayers. The sole-source nature suggests a specific need or a lack of available alternatives at the time of award.
Taxpayer Impact: The lack of competition may have resulted in a higher price than if multiple vendors had bid, impacting taxpayer value.
Public Impact
Taxpayers funded a significant contract for aircraft manufacturing. The Department of Defense procured specialized aircraft components or services. The award highlights the government's reliance on specific manufacturers for critical needs. The contract's sole-source nature raises questions about procurement efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in the procurement process.
- Potential for overpayment due to non-competitive award.
Positive Signals
- Contract fulfilled a specific defense need.
- Awarded to a known aircraft manufacturer.
Sector Analysis
The aircraft manufacturing sector is highly specialized and often involves complex supply chains. Spending in this sector can vary widely based on technological advancements and defense requirements. This contract falls within the broader aerospace and defense industry.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a large, established company like Cessna Aircraft Company suggests a focus on established capabilities rather than small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive bids. Oversight should ensure that such awards are exceptions and are thoroughly documented with clear justifications for the lack of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Lack of detailed justification for non-competition.
- Potential for inflated pricing.
- Limited transparency in procurement.
- No indication of small business participation.
Tags
aircraft-manufacturing, department-of-defense, ks, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.7 million to CESSNA AIRCRAFT COMPANY. IRAQI PRIMARY/INTERMEDIATE 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 $23.7 million.
What is the period of performance?
Start: 2007-11-19. End: 2009-03-26.
What was the specific justification for awarding this contract on a sole-source basis, and were there any attempts to explore competitive options?
The provided data indicates the contract was 'NOT COMPETED' and was a 'sole-source' award. A thorough review would require accessing the contract file to understand the specific justification, such as a critical need, lack of qualified sources, or proprietary technology. Without this documentation, it's impossible to definitively state the reasons or confirm if alternative competitive strategies were considered and rejected.
How does the unit cost or overall value of this contract compare to similar aircraft manufacturing contracts awarded competitively during the same period?
Benchmarking this $23.6 million contract is challenging without knowing the exact aircraft or components manufactured. However, as a sole-source award, it inherently lacks the price validation that competitive bidding provides. A comparison would require identifying comparable contracts for similar aircraft manufacturing services or products awarded competitively around 2007-2009 to assess potential price differences.
What was the ultimate impact of this contract on the Department of Defense's operational capabilities or readiness?
The contract was for 'Aircraft Manufacturing' under the 'IRAQI PRIMARY/INTERMEDIATE PROGRAM,' suggesting it directly supported military operations or readiness related to Iraq. While the specific impact isn't detailed, the award implies the procured aircraft or components were deemed essential for fulfilling program objectives, contributing to the operational capabilities required for that mission.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Textron Inc (UEI: 001338979)
Address: 3800 E PAWNEE, WICHITA, KS, 04
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,659,703
Exercised Options: $23,659,703
Current Obligation: $23,659,703
Timeline
Start Date: 2007-11-19
Current End Date: 2009-03-26
Potential End Date: 2009-03-26 00:00:00
Last Modified: 2009-05-20
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