DoD's $51.7M T-6A Program Sustained by Textron Aviation Defense LLC, Facing Limited Competition
Contract Overview
Contract Amount: $51,665,174 ($51.7M)
Contractor: Textron Aviation Defense LLC
Awarding Agency: Department of Defense
Start Date: 2011-12-22
End Date: 2020-04-30
Contract Duration: 3,052 days
Daily Burn Rate: $16.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS, IRAQ T-6A PROGRAM, FOLLOW-ON SUSTAINMENT
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67207
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $51.7 million to TEXTRON AVIATION DEFENSE LLC for work described as: FMS, IRAQ T-6A PROGRAM, FOLLOW-ON SUSTAINMENT Key points: 1. Significant contract value of $51.7 million for follow-on sustainment. 2. Sole-source award indicates potential lack of competitive pricing. 3. Long contract duration (2011-2020) may warrant review for efficiency. 4. Focus on aircraft sustainment within the Defense sector.
Value Assessment
Rating: questionable
The contract value of $51.7 million for sustainment over nearly a decade is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar aircraft sustainment services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The absence of competition raises concerns about taxpayer value, as the government may be paying a premium for sustainment services.
Public Impact
Ensures continued operational readiness of T-6A trainer aircraft. Supports critical pilot training programs for the Air Force. Potential for increased costs to taxpayers due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures critical aircraft sustainment
- Supports pilot training mission
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment. Spending benchmarks for similar sustainment contracts can vary widely based on aircraft type, age, and required services.
Small Business Impact
The data indicates that this contract was not awarded to small businesses, as both the prime contractor (Textron Aviation Defense LLC) and the small business status are listed as false. This means small businesses did not directly benefit from this specific award.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure the government received fair pricing and that competition was appropriately considered or justified.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of competition.
- Long contract duration may obscure cost efficiencies.
- No small business participation noted.
- Need for strong oversight on sole-source contracts.
Tags
other-support-activities-for-air-transpo, department-of-defense, ks, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.7 million to TEXTRON AVIATION DEFENSE LLC. FMS, IRAQ T-6A PROGRAM, FOLLOW-ON SUSTAINMENT
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 $51.7 million.
What is the period of performance?
Start: 2011-12-22. End: 2020-04-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources. For this T-6A sustainment contract, the Department of Defense would need to provide documentation detailing why Textron Aviation Defense LLC was the only viable option and why competition was not feasible or beneficial.
How does the per-unit cost of sustainment for the T-6A compare to similar trainer aircraft programs, especially those with competitive sustainment contracts?
Benchmarking the per-unit sustainment cost against comparable trainer aircraft is crucial for assessing value. Without access to detailed cost breakdowns and comparative data from competitively awarded contracts, it is challenging to definitively state if the $51.7 million expenditure represents good value or if it is inflated due to the lack of competition.
What measures were in place to ensure cost control and efficiency throughout the long duration of this sole-source sustainment contract?
Given the contract's duration from 2011 to 2020, robust cost control mechanisms and performance monitoring would have been essential. This could include regular reviews of pricing, performance metrics, and potential incentives for efficiency. The absence of competition makes these oversight functions even more critical to prevent cost overruns and ensure taxpayer funds are used effectively.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,665,174
Exercised Options: $51,665,174
Current Obligation: $51,665,174
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-12-22
Current End Date: 2020-04-30
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2020-02-25
More Contracts from Textron Aviation Defense LLC
- 200211!000030!5700!GU47 !asc/Ytk !F3365701C0022 !A!N! !N! !20011228!20090228!007482011!788153588!001339159!n!raytheon Aircraft Company !10511 E Central AVE !wichita !ks!67206!79000!173!20!wichita !sedgwick !kansas !+000193250689!n!n!000000000000!1510!aircraft Fixed Wing !a1a!airframes and Spares !3000!NOT Discernable or Classified !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !c!n!j!1!001!n!1g!z!n!e! ! !Y!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $1.4B (Department of Defense)
- T-6 FY10 Production and Program Support — $1.0B (Department of Defense)
- T-6A LOT 15 AF & Navy Aircrew Training Devices (atds), Grnd Based TNG SYS Prog &subcontract MGT, & USN Simulator Server — $740.5M (Department of Defense)
- T6A UCA for LOT 14 Long-Lead — $375.0M (Department of Defense)
- Federal Contract — $338.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)