DoD's $121.7M T-6 Aircraft FMS Case for Israel Faces Limited Competition and Potential Value Concerns
Contract Overview
Contract Amount: $121,742,223 ($121.7M)
Contractor: Textron Aviation Defense LLC
Awarding Agency: Department of Defense
Start Date: 2009-05-18
End Date: 2022-02-28
Contract Duration: 4,669 days
Daily Burn Rate: $26.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-6 AIRCRAFT FMS CASE IS-D-SAB ISRAEL UNPRICED ACTION
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67207
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $121.7 million to TEXTRON AVIATION DEFENSE LLC for work described as: T-6 AIRCRAFT FMS CASE IS-D-SAB ISRAEL UNPRICED ACTION Key points: 1. Significant spending on aircraft manufacturing for foreign military sales. 2. Sole-source nature raises questions about price discovery and taxpayer value. 3. Long contract duration (4669 days) may indicate potential for cost overruns. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract is unpriced, making a direct value assessment difficult. The benchmark for similar T-6 aircraft procurements is not readily available, but the lack of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: Taxpayer funds are being used for foreign military sales, and the lack of competitive pricing could result in a less efficient use of these funds.
Public Impact
Supports U.S. foreign policy objectives through military aid. Contributes to the defense capabilities of allied nations. Impacts the global aerospace and defense market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Unpriced action
- Long contract duration
- No small business participation
Positive Signals
- Supports allied defense capabilities
- Long-term relationship with Textron Aviation
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a key component of the broader aerospace and defense industry. Spending benchmarks in this sector are highly variable based on aircraft type and scope.
Small Business Impact
The contract explicitly states no small business participation. This indicates that the prime contractor, Textron Aviation Defense LLC, is handling the entire scope of work, potentially missing opportunities for subcontracting to smaller businesses.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, responsible for ensuring contract compliance and performance. However, the unpriced nature and limited competition warrant close oversight to ensure fair pricing and value.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Unpriced action
- Potential for cost overruns
- No small business participation
- Long contract duration
Tags
aircraft-manufacturing, department-of-defense, ks, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.7 million to TEXTRON AVIATION DEFENSE LLC. T-6 AIRCRAFT FMS CASE IS-D-SAB ISRAEL UNPRICED ACTION
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $121.7 million.
What is the period of performance?
Start: 2009-05-18. End: 2022-02-28.
What is the estimated total cost of the T-6 aircraft under this Foreign Military Sales case, and how does it compare to similar international sales?
The total estimated cost is $121.7 million, but the action is currently unpriced. A comprehensive comparison to similar international sales is challenging without a finalized price. However, the lack of competition suggests a potential for higher costs than if multiple bidders were involved, impacting the overall value for the recipient nation and potentially U.S. taxpayer-funded aid.
What are the specific risks associated with an unpriced action, especially in a limited competition scenario for military aircraft?
The primary risk of an unpriced action is the uncertainty of the final cost to the government and the recipient nation. In a limited competition, this risk is amplified as there's less market pressure to drive down prices. This could lead to cost overruns, inefficient resource allocation, and a perception of unfairness in the procurement process.
How effective is this procurement strategy in achieving U.S. foreign policy and defense objectives given the pricing and competition constraints?
The effectiveness is mixed. While it fulfills the objective of providing military aircraft to an ally, the limited competition and unpriced nature raise concerns about cost-effectiveness and value for money. This could potentially strain resources that could be used for other defense priorities or aid programs, impacting the overall strategic impact.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $245,536,956
Exercised Options: $245,536,956
Current Obligation: $121,742,223
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-05-18
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2022-04-01
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