DoD awards $182M T-6C Aircraft contract to Textron Aviation Defense LLC, facing limited competition
Contract Overview
Contract Amount: $182,139,264 ($182.1M)
Contractor: Textron Aviation Defense LLC
Awarding Agency: Department of Defense
Start Date: 2009-09-18
End Date: 2013-11-13
Contract Duration: 1,517 days
Daily Burn Rate: $120.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MOROCCO FMS T-6C AIRCRAFT
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67207
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $182.1 million to TEXTRON AVIATION DEFENSE LLC for work described as: MOROCCO FMS T-6C AIRCRAFT Key points: 1. Significant investment in aircraft manufacturing for foreign military sales. 2. Sole-source award raises questions about price discovery and value. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector focus on defense aircraft manufacturing.
Value Assessment
Rating: questionable
The contract's value of $182M for T-6C aircraft is difficult to assess without competitive benchmarks. The lack of competition suggests potential overpricing compared to what might be achieved in an open market.
Cost Per Unit: $120,065
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating no other vendors were considered. This significantly limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive pressure to reduce prices.
Public Impact
Ensures continued supply of training aircraft for allied nations. Supports U.S. defense industry and manufacturing capabilities. Potential for increased costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Supports foreign military sales
- Maintains domestic manufacturing
Sector Analysis
This contract falls within the aircraft manufacturing sector, specifically for defense applications. Benchmarks for similar foreign military sales of training aircraft would be needed for a precise comparison.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award, as the prime contractor is Textron Aviation Defense LLC. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
Oversight of sole-source contracts is crucial to ensure fair pricing and prevent waste. The Department of Defense and the Defense Contract Management Agency are responsible for monitoring contract performance and expenditures.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for higher costs due to lack of competition.
- No indication of small business participation.
- Contract duration is substantial, increasing exposure to price fluctuations.
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 $182.1 million to TEXTRON AVIATION DEFENSE LLC. MOROCCO FMS T-6C AIRCRAFT
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 $182.1 million.
What is the period of performance?
Start: 2009-09-18. End: 2013-11-13.
What is the justification for the sole-source award, and were alternative procurement methods considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation, it's unclear if alternative procurement methods were thoroughly explored. A detailed review of the justification is necessary to understand the rationale and assess if it adequately supports the decision to forgo competition, which is a key factor in ensuring taxpayer value.
How does the per-unit cost of $120,065 compare to similar aircraft procured competitively?
The per-unit cost of $120,065 needs to be benchmarked against comparable training aircraft acquired through competitive processes. If similar aircraft have been procured at significantly lower per-unit costs via competitive bids, it would indicate potential overpricing in this sole-source contract. A thorough market analysis is required to establish a fair and reasonable price.
What is the long-term strategic value of this aircraft procurement for U.S. foreign policy and defense readiness?
The T-6C aircraft are primarily used for pilot training. Procuring them for Morocco enhances their military capabilities and interoperability with U.S. forces, supporting strategic alliances and regional stability. This aligns with U.S. foreign policy objectives and contributes to collective defense readiness by ensuring allies are adequately equipped and trained.
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 (UEI: 001338979)
Address: 201 S GREENWICH, WICHITA, KS, 67207
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $182,139,264
Exercised Options: $182,139,264
Current Obligation: $182,139,264
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2009-09-18
Current End Date: 2013-11-13
Potential End Date: 2013-11-13 00:00:00
Last Modified: 2021-11-03
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